Compton City Council
March 11, 2025

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
03/11/2025
205 S. WILLOWBROOK AVE
COMPTON, CA 90220
4:30 PM – CLOSED SESSION
5:30 PM – PUBLIC MEETING
5:35 PM – FIREWORKS HEARING
5:45 PM – CDBG ANNUAL ACTION PLAN HEARING

OPENING

ROLL CALL

MOMENT OF SILENCE

PLEDGE OF ALLEGIANCE

PUBLIC COMMENT ON CLOSED SESSION

CLOSED SESSION

1. CLOSED SESSION
• Conference with Legal Counsel (Existing Litigation) – (Paragraph (1) of subdivision (d) of Government Code Section 54956.9)
• Conference with Legal Counsel (Anticipated Litigation) – Significant exposure to litigation pursuant to Government Code Section 54956.9(d)(2) • Conference with Legal Counsel (Anticipated Litigation) – Significant exposure to litigation pursuant to Government Code Section 54956.9(h) -2- City Council Agenda
3/11/2025 5:30 PM

2. PUBLIC EMPLOYEE PERFORMANCE EVALUATION
Title: City Manager
Pursuant to California Government Code Section 54957

REPORT OUT OF CLOSED SESSION

HEARING(S)

3. PUBLIC HEARING - 2025 FIREWORKS

4. PUBLIC HEARING - THE PROPOSED SUBSTANTIAL AMENDMENT TO THE COMMUNITY DEVELOPMENT BLOCK GRAND (CDBG) FY 2024-2025 ANNUAL ACTION PLAN, FY 2020-2024 CONSOLIDATED

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 TREASURER

5. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

ADOPTING AN INVESTMENT POLICY

PLANNING AND ECONOMIC DEVELOPMENT

6. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO APPROVE THE SUBMISSION OF A

CALHOME APPLICATION TO THE CALIFORNIA DEPARTMENT OF HOUSING

AND COMMUNITY DEVELOPMENT FOR THE OWNER-OCCUPIED
REHABILITATION PROGRAM AND THE MORTGAGE ASSISTANCE PROGRAM.

IF AWARDED, THE CITY WOULD ENTER INTO A PROFESSIONAL SERVICES AGREEMENT WITH GLOBAL URBAN STRATEGIES, INC. FOR THE

ADMINISTRATION, REPORTING, VETTING AND LOAN SERVICING OF THE PROGRAMS.

PUBLIC WORKS DEPARTMENT

7. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

ACCEPTING THE CONSTRUCTION OF THE ARTESIA BOULEVARD OVER ALAMEDA STREET AND ACTA/UPRR BRIDGE REPAIR PROJECT, CIP# 23-01

AS COMPLETE, DIRECT STAFF TO FILE THE NOTICE OF COMPLETION WITH THE LOS ANGELES COUNTY RECORDER’S OFFICE AND AUTHORIZE THE RELEASE OF THE CONTRACTOR’S RETENTION
-3- City Council Agenda
3/11/2025 5:30 PM

8. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON ACCEPTING THE CONSTRUCTION OF THE COMPTON FIRE STATION NOS. 1 THROUGH 4 DRIVEWAY AND APRON IMPROVEMENT PROJECT (CIP# 20-01)

AS COMPLETE, DIRECT STAFF TO FILE THE NOTICE OF COMPLETION WITH THE LOS ANGELES COUNTY RECORDER’S OFFICE AND AUTHORIZE THE RELEASE OF THE CONTRACTOR’S RETENTION ($88,971.31).

9. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO AN ASSIGNMENT AND

ASSUMPTON AGREEMENT BETWEEN THE CITY OF COMPTON, PARAMOUNT

PIPELINE, LLC AND AIR PRODUCTS MANUFACTURING, LLC

REGULAR AGENDA

NEW BUSINESS

10. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON ACCEPTING THE ESTIMATE OF INNOVATIVE PLAYGROUNDS CO., INC.,

AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONSTRUCTION CONTRACT WITH INNOVATIVE PLAYGROUNDS CO., INC, AND ESTABLISH A

PURCHASE ORDER FOR THE TUCKER PARK PLAYGROUND IMPROVEMENT PROJECT FOR THE AMOUNT OF $684,704.93.

11. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AGREEMENT

BETWEEN THE CITY OF COMPTON AND VOLUNTEERS OF AMERICA OF LOS ANGELES FOR INDOOR AND OUTDOOR SPACES AT 600 NORTH ALAMEDA

STREET FOR A HEAD START PROGRAM

12. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE AGREEMENT

BETWEEN VOLUNTEERS OF AMERICA OF LOS ANGELES TO PROVIDE SPACE AT THE CITY-OWNED PROPERTY LOCATED AT (700 NORTH BULLIS ROAD)

13. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

DECLARING ITS INTENT TO ESTABLISH AN UNDERGROUND UTILITY DISTRICT IN ACCORDANCE WITH SOUTHERN CALIFORNIA EDISION’S RULE 20A, SECTION 5896.8 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE AND THE COMPTON MUNICIPAL CODE SECTION 26-4

14. A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON RESCINDING RESOLUTION 25817 AND AUTHORIZING THE CITY MANAGER TO AMEND THE 2024 – 2025 FISCAL YEAR BUDGET AND TO RATIFY THE

PROFESSIONAL SERVICES AGREEMENT WITH AND ESTABLISH A
PURCHASE ORDER FOR MIG, INC. FOR THE COMPLETION OF THE
COMPREHENSIVE CITYWIDE GENERAL PLAN 2045 UPDATE, REZONING AND ENVIRONMENTAL IMPACT REPORT ($462,208.00)
-4- City Council Agenda
3/11/2025 5:30 PM

COUNCIL COMMENTS

ADJOURNMENT
NEXT REGULAR MEETING: 3/18/2025 5:30 PM
Visit our website at http://www.comptoncity.org
March 11, 2025
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY TREASURER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COMPTON ADOPTING AN INVESTMENT POLICY

SUMMARY
The proposed resolution would adopt a new City investment policy that meets the industry’s best practices, utilizes the most current policies set forth by California Government Code, and make the City of Compton eligible for the California Municipal Treasurers Association (CMTA) Investment Policy Certification Program.

BACKGROUND
Historically, the City has invested in the Local Agency Investment Fund (LAIF). LAIF provides local agencies a way to invest cash held in the treasury pool that may be withdrawn as needed on a same-day basis to meet an agency's cash flow needs, while realizing interest generated by the State’s Pooled Money Investment Account (PMIA).

As City Treasurer staff analyzed the return on LAIF investments, they noticed that the PMIA’s monthly average yield was consistently two percent below other local government investment programs, especially for short-term investments. In short, whereas LAIF had been a safe investment option with reasonable return for many years, it was in the City’s best interest to consider investment options that better suited the City’s cash needs.

To that end, in April 2023 the Treasurer’s Office, pursuant to Section 11(a)(xii) of the existing Investment Policy, began to diversify their investments to better maximize investment yields while continuing to maintain the security of initial investments and by consistently following the guidelines of the City’s existing investment policy.

As time has moved forward, the investment market has significantly shifted and the types of investments that once were widely utilized and yielded high earnings may not offer the same opportunities or be as readily available as they once were. The City’s current investment policy limits those opportunities currently available and authorized by the updated California Government Code. Having an investment policy that is continually updated to reflect the most recent government code, uses industry best practices, and follows the standard policy format is a key for the City of Compton to continue to put its money to work for the residents of Compton, to foster good will with

5. Staff Report-Adopting a New City Investment Policy
March 11, 2025, Page 2
the public it serves, to be transparent with its financial practices, and to ensure that the maximum amount of investment earnings is realized.

While most of the authorized investments from the City’s existing investment policy are included in the proposed new investment policy, the new policy expands the list of authorized investments to match what is currently eligible under California Government Code. This will put the City in the best possible position to invest by diversifying their choices while still being able to maintain the security of their investments.

The proposed new investment policy also includes a Risk Management and Diversification section that provides higher risk protection than the current policy. This is a key element of the policy that will help ensure the safety and security of the public funds entrusted to the City and can provide a measure of confidence to the public. One of the key elements of this section is “Mitigating Market Risk in the Portfolio”. This subsection follows industry best practices by providing adequate liquidity for short-term cash needs and by making long-term investments only with funds that are not needed for current cash flow purposes.

This new policy stipulates that a review of the investment portfolio “periodically, but no less than quarterly” be made in an effort to identify any investments that do not comply with the investment policy. The City Treasurer will be tasked with establishing protocols for reporting any major and critical incidences of noncompliance to the City Council.

Periodic reporting to the City Council will be made that provides a full disclosure of the City’s investment activities and a comprehensive annual report will be presented to the City Council that includes comparisons of the City’s return to the market benchmark return, suggest policies and improvements that might enhance the investment program, and will include an investment plan for the coming year.

Lastly, this proposed investment policy will be reviewed and adopted at least annually within 120 days of the end of the fiscal year, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.

STATEMENT OF THE ISSUE
Adoption of a new Investment Policy requires City Council approval.

Staff Report-Adopting a New City Investment Policy
March 11, 2025, Page 3

FISCAL IMPACT
Adoption of the attached Resolution could result in an additional two to three million dollars ($2,000,000 to $3,000,000) per year.

RECOMMENDATION
Staff recommends that the City Council adopt the attached Resolution.

BRANDON MIMS

CITY TREASURER
APPROVED FOR FORWARDING:

WILLIE HOPKINS

CITY MANAGER
RESOLUTION NO. _____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

ADOPTING AN INVESTMENT POLICY
WHEREAS, the City Council has annually adopted an Investment Policy by Resolution pursuant to Section 53646(a)(2) of the California Government Code; and WHEREAS, Section 701 (a) of the City Charter states the City Treasurer is the custodian of all public funds belonging to, or under the control of the City, or of any office, department or agency thereof, and to that end shall have power and be required to receive and have custody of all monies receivable by the City from any source; and WHEREAS, Section 701, (b) of the City Charter states the City Treasurer shall deposit all monies received in such depositories as may be designated by the Investment Policy and in compliance with all of the provisions of the California State Constitution and laws of the State, governing the handling, depositing and securing of public funds; and
WHEREAS, the City Treasurer shall not knowingly make any investments in any institution, company, corporation, subsidiary or affiliate that practices or supports directly or indirectly through its actions, discrimination on the basis of race, religion, color, creed, national or ethnic origin, age, sex, sexual orientation, or physical disability; and
WHEREAS, the provisions governing the investing, handling, depositing and securing of public funds changes often, however, the existing Investment Policy has not been updated since 2021; and
WHEREAS, the City Treasurer is committed to maximizing interest earnings utilizing best practices in municipal investments while remaining compliant with applicable provisions; and
WHEREAS, from time to time it is prudent to update the Investment Policy to align with best practices and to ensure existing investments remain compliant with new law.

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

Section 1. That the City Treasurer of the City of Compton, at a public meeting did render a compliant Investment Policy for the City Council’s approval.

Section 2. That the Investment Policy is approved and shall be included in the City’s Standard Operating Manual.

Section 3. That a copy of this Resolution shall be filed in the offices of the City Clerk, City Manager, City Controller, City Treasurer and the City Attorney.

Section 4. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this ________ day of _________________ 2025.
____________________________________

EMMA SHARIF

MAYOR OF THE CITY OF COMPTON
Resolution No. ___________________

ATTEST:
__________________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Satra D. Zurita, 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 _________, 2025.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCIL MEMBERSNOES: COUNCIL MEMBERSABSENT: COUNCIL MEMBERSABSTAIN: COUNCIL MEMBERS- _________________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON

CITY OF COMPTON

INVESTMENT POLICY
ADOPTED MARCH 11, 2025

CONTENTS
I. INTRODUCTION.......................................................................................................2 II. SCOPE ...................................................................................................................2 III. PRUDENCE .............................................................................................................3 IV. OBJECTIVES ...........................................................................................................3 V. DELEGATION OF AUTHORITY....................................................................................4 VI. ETHICS AND CONFLICTS OF INTEREST........................................................................4 VII. INTERNAL CONTROLS..............................................................................................5 VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS............5 IX. AUTHORIZED INVESTMENTS.....................................................................................6 X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES................................................12 XI. INVESTMENT POOLS/MUTUAL FUNDS......................................................................12 XII. COLLATERALIZATION............................................................................................12 XIII. DELIVERY, SAFEKEEPING AND CUSTODY .................................................................13 XIV. MAXIMUM MATURITY...........................................................................................13 XV. RISK MANAGEMENT AND DIVERSIFICATION.............................................................14 XVI. REVIEW OF INVESTMENT PORTFOLIO.......................................................................15 XVII. PERFORMANCE EVALUATION .................................................................................15 XVIII. REPORTING ..........................................................................................................15 XIX. REVIEW OF INVESTMENT POLICY ............................................................................16 GLOSSARY OF INVESTMENT TERMS ......................................................................................18 Proposed New 2024-2025 Policy
1 I. INTRODUCTION
The purpose of this investment policy is to identify various policies and procedures that will foster a prudent and systematic investment program designed to seek the City of Compton’s objectives of safety, liquidity and return on investment through a diversified investment portfolio. This policy also serves to organize and formalize the City’s investment-related activities, while complying with all applicable statutes governing the investment of public funds. This policy is written to incorporate industry best practices and recommendations from sources such as the Government Finance Officers Association (GFOA), California Municipal Treasurers Association (CMTA), California Debt and Investment Advisory Commission (CDIAC) and the Association of Public Treasurers (APT).

This investment policy was endorsed and adopted by the City of Compton’s City Council and is effective as of the 11th day of February, 2025 and replaces any previous versions.

II. SCOPE
This policy covers all funds and investment activities under the direct authority of the City, as set forth in the State Government Code, Sections 53600 et seq., with the following exceptions:
 Proceeds of debt issuance shall be invested in accordance with the City’s general investment philosophy as set forth in this policy; however, such proceeds are to be invested pursuant to the permitted investment provisions of their specific bond indentures.
 CalPERS, OPEB trusts, and the investment of employees’ deferred compensation funds invested pursuant to Government Code Section 53609  Any other funds specifically exempted by the City Council.

POOLING OF FUNDS
Except for cash in certain restricted and special funds, the City will consolidate cash and reserve balances from all funds to maximize investment earnings and to increase efficiencies with regard to investment pricing, safekeeping and administration. Investment income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles.

CASH MANAGEMENT
 The City will maintain sufficient operating cash in its operating account (General Checking Account, Successor Agency Checking Accounts, and Payroll Accounts).  These balances will be minimal and maintained solely to cover outstanding warrants.  The General Checking balance will be maintained solely to cover routine operational costs.
 The City Treasurer shall assess operating account balances on a quarterly basis and transfer excess funds to the City’s investment accounts.

Proposed New 2024-2025 Policy
2 III. PRUDENCE
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency. Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.”
The City Treasurer and other authorized persons responsible for managing City funds acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes provided that the City Treasurer or other authorized persons acted in good faith. Deviations from expectations of a security’s credit or market risk should be reported to the City Council in a timely fashion and appropriate action should be taken to control adverse developments.

IV. OBJECTIVES
The City’s overall investment program shall be designed and managed with a degree of professionalism worthy of the public trust. The overriding objectives of the program are to preserve principal, provide sufficient liquidity, and manage investment risks, while seeking a market-rate of return.
 SAFETY. Safety of principal is the foremost objective of the investment program.

Investments will be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. To attain this objective, the City will diversify its investments by investing funds among a variety of securities with independent returns.  LIQUIDITY. The investment portfolio will remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated.  RETURN ON INVESTMENTS. The investment portfolio will be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints for safety and liquidity needs.

Proposed New 2024-2025 Policy
3 The City Treasurer shall not knowingly make any investments in any institution, company, corporation, subsidiary or affiliate that practices or supports directly or indirectly through its actions, discrimination on the basis of race, religion, color, creed, national or ethnic origin, age, sex, sexual orientation, or physical disability.

V. DELEGATION OF AUTHORITY
Authority to manage the City’s investment program is derived from California Government Code, Sections 41006 for City Treasurers and 53600 et seq.

The City Council is responsible for the management of the City’s funds, including the administration of this investment policy. Management responsibility for the cash management of the City’s funds is hereby delegated to the City Treasurer.

The City Treasurer will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate officials and employees. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the City Treasurer.

The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.

VI. ETHICS AND CONFLICTS OF INTEREST
All participants in the investment process shall act as custodians of the public trust.

Investment officials shall recognize that the investment portfolio is subject to public review and evaluation. Thus, employees and officials involved in the investment process shall refrain from personal business activity that could create a conflict of interest or the appearance of a conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions.

Employees and investment officials shall disclose to the City Manager any material interests in financial institutions with which they conduct business, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the investment portfolio. Employees and officers shall refrain from undertaking any personal investment transactions with the same individual with whom business is conducted on behalf of the City.

Proposed New 2024-2025 Policy
4 VII. INTERNAL CONTROLS
The City Treasurer (or the Chief Deputy City Treasurer in the absence of the City Treasurer) is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the entity are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and judgments by management.

Periodically, as deemed appropriate by the City and/or the City Council, an independent analysis by an external auditor shall be conducted to review internal controls, account activity and compliance with policies and procedures.

The Investment Policy shall be included in the City’s Standard Operating Manual.

VIII. AUTHORIZED FINANCIAL INSTITUTIONS, DEPOSITORIES, AND BROKER/DEALERS The City Treasurer shall maintain procedures for establishing a list of authorized broker/dealers and financial institutions which are approved for investment purposes that are selected through a process of due diligence as determined by the City. No purchase or sale of investments is to be made with a broker-dealer, by a member of the Treasurer’s office, unless the firm’s name has been approved by the City Treasurer and adopted by resolution by the City’s Legislative Body. Due inquiry shall determine whether such authorized broker/dealers, and the individuals covering the City are reputable and trustworthy, knowledgeable and experienced in Public Agency investing and able to meet all of their financial obligations. These institutions may include "primary" dealers or regional dealers that qualify under Securities and Exchange Commission (SEC) Rule 15c3- 1 (uniform net capital rule).

In accordance with Section 53601.5, institutions eligible to transact investment business with the City include:
 Institutions licensed by the state as a broker-dealer, as defined in Section 25004 of the Corporations Code, with proof of FINRA certification.
 Institutions that are members of a federally regulated securities exchange.  Primary government dealers as designated by the Federal Reserve Bank and nonprimary government dealers.  Nationally or state-chartered banks.
 Savings association or federal association (as defined in Section 5102 of the Financial Code).
 The Federal Reserve Bank.
 Direct issuers of securities eligible for purchase.

Selection of financial institutions and broker/dealers authorized to engage in transactions will be at the sole discretion of the City, except where the City utilizes an external investment adviser in which case the City may rely on the adviser for selection.

Proposed New 2024-2025 Policy
5 All financial institutions which desire to become qualified bidders for investment transactions (and which are not dealing only with the investment adviser) must supply the City Treasurer with audited financials and a statement certifying that the institution has reviewed the California Government Code, Section 53600 et seq. and the City’s investment policy. The City Treasurer will conduct an annual review of the financial condition and registrations of such qualified bidders.

To the extent practicable, the City Treasurer shall endeavor to complete investment transactions using a competitive bid process whenever possible. The City Treasury will determine which financial institutions are authorized to provide investment services to the City. It shall be the City’s policy to purchase securities only from authorized institutions and firms.

Selection of broker/dealers used by an external investment adviser retained by the City will be at the sole discretion of the adviser. Where possible, transactions with broker/dealers shall be selected on a competitive basis and their bid or offering prices shall be recorded.

If there is no other readily available competitive offering, best efforts will be made to document quotations for comparable or alternative securities. When purchasing original issue instrumentality securities, no competitive offerings will be required as all dealers in the selling group offer those securities at the same original issue price.

Public deposits will be made only in qualified public depositories as established by State law. Deposits will be insured by the Federal Deposit Insurance Corporation, or, to the extent the amount exceeds the insured maximum, will be collateralized in accordance with State law.

IX. AUTHORIZED INVESTMENTS
The City’s investments are governed by California Government Code, Sections 53600 et seq. Within the investments permitted by the Code, the City seeks to further restrict eligible investments to the guidelines listed below. In the event a discrepancy is found between this policy and Code, the more restrictive parameters will take precedence. Percentage holding limits and minimum credit requirements listed in this section apply at the time the security is purchased.

Any investment currently held at the time the policy is adopted which does not meet the new policy guidelines can be held until maturity and shall be exempt from the current policy. At the time of the investment’s maturity or liquidation, such funds shall be reinvested only as provided in the current policy.

An appropriate risk level shall be maintained by primarily purchasing securities that are of high quality, liquid, and marketable. The portfolio shall be diversified by security type and issuer to avoid incurring unreasonable and avoidable risks regarding specific security types or individual issuers.

1. MUNICIPAL SECURITIES include obligations of the City, the State of California and any local agency within the State of California, provided that:

Proposed New 2024-2025 Policy
6  The securities are rated in a rating category of “A” or its equivalent or better by at least one nationally recognized statistical rating organization (“NRSRO”).  No more than 5% of the total portfolio may be invested in any single issuer.  No more than 30% of the total portfolio may be in Municipal Securities.  The maximum maturity does not exceed five (5) years.

2. MUNICIPAL SECURITIES (REGISTERED TREASURY NOTES OR BONDS) of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California.
 The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
 No more than 5% of the total portfolio may be invested in any single issuer.  No more than 30% of the total portfolio may be in Municipal Securities.  The maximum maturity does not exceed five (5) years.

3. U.S. TREASURIES and other government obligations for which the full faith and credit of the United States are pledged for the payment of principal and interest. There are no limits on the dollar amount or percentage that the City may invest in U.S. Treasuries, provided that:
 The maximum maturity does not exceed five (5) years.

4. FEDERAL AGENCIES or United States Government-Sponsored Enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. There are no limits on the dollar amount or percentage that the City may invest in Federal Agency or Government-Sponsored Enterprises (GSEs), provided that:
 No more than 30% of the total portfolio may be invested in any single Agency/GSE issuer.
 No more than 20% of the total portfolio may be invested in callable agency securities.
 The maximum maturity does not exceed five (5) years.

5. BANKER’S ACCEPTANCES, provided that:
 They are issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term debt obligations which are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
 No more than 40% of the total portfolio may be invested in Banker’s Acceptances.  No more than 5% of the total portfolio may be invested in any single issuer.  The maximum maturity does not exceed 180 days.

Proposed New 2024-2025 Policy
7 6. COMMERCIAL PAPER, provided that the securities are issued by an entity that meets all of the following conditions in either paragraph (a) or (b) and other requirements specified below:
a. SECURITIES issued by corporations:
(i) A corporation organized and operating in the United States with assets more than $500 million.
(ii) The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
(iii) If the issuer has other debt obligations, they must be rated in a rating category of “A” or its equivalent or better by at least one NRSRO. b. SECURITIES issued by other entities:
(i) The issuer is organized within the United States as a special purpose corporation, trust, or limited liability company.
(ii) The securities must have program-wide credit enhancements including, but not limited to, overcollateralization, letters of credit, or a surety bond. (iii)The securities are rated “A-1” or its equivalent or better by at least one NRSRO.
 No more than 10% of the outstanding commercial paper of any single issuer.  No more than 25% of the City’s investment assets under management may be invested in Commercial Paper. Under a provision sunsetting on January 1, 2026, no more than 40% of the total portfolio may be invested in Commercial Paper if the City’s investment assets under management are greater than $100,000,000.  No more than 5% of the total portfolio may be invested in any single issuer.  The maximum maturity does not exceed 270 days.

7. NEGOTIABLE CERTIFICATES OF DEPOSIT (NCDS), issued by a nationally or statechartered bank, a savings association or a federal association, a state or federal credit union, or by a federally licensed or state-licensed branch of a foreign bank, provided that:
 The amount of the NCD insured up to the FDIC limit does not require any credit ratings.
 Any amount above the FDIC insured limit must be issued by institutions which have short-term debt obligations rated “A-1” or its equivalent or better by at least one NRSRO; or long-term obligations rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
 No more than 30% of the total portfolio may be invested in NCDs.  No more than 5% of the total portfolio may be invested in any single issuer.  The maximum maturity does not exceed five (5) years.

8. FEDERALLY INSURED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions, provided that:

Proposed New 2024-2025 Policy
8  The amount per institution is limited to the maximum covered under federal insurance.
 No more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits.
 The maximum maturity does not exceed five (5) years.

9. COLLATERALIZED TIME DEPOSITS (Non-Negotiable Certificates of Deposit) in state or federally chartered banks, savings and loans, or credit unions in excess of insured amounts which are fully collateralized with securities in accordance with California law, provided that:
 No more than 20% of the total portfolio will be invested in a combination of federally insured and collateralized time deposits.
 The maximum maturity does not exceed five (5) years.

10. PLACEMENT SERVICE DEPOSITS, provided that:
 No more than 30% of the total portfolio may be invested in a combination of qualifying place service deposits, including CDARS.
 The full amount of each deposit along with accrued interest must at all times be insured by the Federal Deposit Insurance Corporation (FDIC) or the National Credit Union Administration (NCUA).
 Under a provision sunsetting on January 1, 2031, no more than 50% of the total portfolio may be invested in placement service deposits if the Agency is a city, district or local agency that does not pool money with other local agencies.  The maximum maturity does not exceed five (5) years.

11. COLLATERALIZED BANK DEPOSITS. City’s deposits with financial institutions will be collateralized with pledged securities per California Government Code, Section 53651.

There are no limits on the dollar amount or percentage that the City may invest in collateralized bank deposits.

12. REPURCHASE AGREEMENTS collateralized with securities authorized under California Government Code, maintained at a level of at least 102% of the market value of the Repurchase Agreement. There are no limits on the dollar amount or percentage that the City may invest, provided that:
 Securities used as collateral for Repurchase Agreements will be delivered to an acceptable third party custodian.
 Repurchase Agreements are subject to a Master Repurchase Agreement between the City and the provider of the repurchase agreement. The Master Repurchase Agreement will be substantially in the form developed by the Securities Industry and Financial Markets Association (SIFMA).
 The maximum maturity does not exceed one (1) year.

13. STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND (LAIF), provided that:
 The City may invest up to the maximum amount permitted by LAIF.

Proposed New 2024-2025 Policy
9  LAIF’s investments in instruments prohibited by or not specified in the City’s policy do not exclude the investment in LAIF itself from the City’s list of allowable investments, provided LAIF’s reports allow the City Treasurer to adequately judge the risk inherent in LAIF’s portfolio.

14. LOCAL GOVERNMENT INVESTMENT POOLS
 Other LGIPs permitted by the City of Compton.
 There is no issuer limitation for Local Government Investment Pools.

15. CORPORATE MEDIUM TERM NOTES (MTNS), provided that:
 The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States.
 The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO.
 No more than 30% of the total portfolio may be invested in MTNs.  No more than 5% of the total portfolio may be invested in any single issuer.  The maximum maturity does not exceed five (5) years.

16. ASSET-BACKED, MORTGAGE-BACKED, MORTGAGE PASS-THROUGH SECURITIES,

AND COLLATERALIZED MORTGAGE OBLIGATIONS FROM ISSUERS NOT DEFINED IN SECTIONS 3 AND 4 OF THE AUTHORIZED INVESTMENTS SECTION OF THIS POLICY, provided that:
 The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
 No more than 20% of the total portfolio may be invested in these securities.  No more than 5% of the total portfolio may be invested in any single Asset-Backed or Commercial Mortgage security issuer.
 The maximum maturity does not exceed five (5) years.

17. MUTUAL FUNDS AND MONEY MARKET MUTUAL FUNDS that are registered with the Securities and Exchange Commission under the Investment Company Act of 1940, provided that:
a. MUTUAL FUNDS that invest in the securities and obligations as authorized under California Government Code, Section 53601 (a) to (k) and (m) to (q) inclusive and that meet either of the following criteria:
(i) Attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
(ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in the securities and obligations authorized by California Government Code, Section 53601 and with assets under management in excess of $500 million.

Proposed New 2024-2025 Policy
10  No more than 10% of the total portfolio may be invested in shares of any one mutual fund.
b. MONEY MARKET MUTUAL FUNDS registered with the Securities and Exchange Commission under the Investment Company Act of 1940 and issued by diversified management companies and meet either of the following criteria:
(i) Have attained the highest ranking or the highest letter and numerical rating provided by not less than two (2) NRSROs; or
(ii) Have retained an investment adviser registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience managing money market mutual funds with assets under management in excess of $500 million.
 No more than 20% of the total portfolio may be invested in the shares of any one Money Market Mutual Fund.
c. No more than 20% of the total portfolio may be invested in these securities.

18. SUPRANATIONALS, provided that:
 Issues are US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank.
 The securities are rated in a rating category of “AA” or its equivalent or better by a NRSRO.
 No more than 30% of the total portfolio may be invested in these securities.  No more than 10% of the total portfolio may be invested in any single issuer.  The maximum maturity does not exceed five (5) years.

19. JOINT POWERS AUTHORITY (JPA) POOLS, provided that:
 The JPA is organized pursuant to California Government Code Section 6509.7 and invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive.
 Each share shall represent an equal proportional interest in the underlying pool of securities owned by the JPA.
 The JPA has retained an investment advisor who is registered with the SEC (or exempt from registration), has assets under management in excess of $500 million, and has at least five years’ experience investing in instruments authorized by Section 53601, subdivisions (a) to (q).

X. PROHIBITED INVESTMENT VEHICLES AND PRACTICES
Proposed New 2024-2025 Policy
11  State law notwithstanding, any investments not specifically described herein are prohibited, including, but not limited to futures and options.  In accordance with Government Code, Section 53601.6, investment in inverse floaters, range notes, or mortgage derived interest-only strips is prohibited.  Investment in any security that could result in a zero-interest accrual if held to maturity is prohibited. Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zero- or negative-interest accrual if held to maturity are permitted.
 Trading securities for the sole purpose of speculating on the future direction of interest rates is prohibited.
 Purchasing or selling securities on margin is prohibited.  The use of reverse repurchase agreements, securities lending or any other form of borrowing or leverage is prohibited.
 The purchase of foreign currency denominated securities is prohibited.  The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

XI. INVESTMENT POOLS/MUTUAL FUNDS
The City shall conduct a thorough investigation of any pool or mutual fund prior to making an investment, and on a continual basis thereafter. Annually, the City Treasurer shall seek responses to the following questions from any investment pool or mutual fund in which the City invests:
 A description of eligible investment securities, and a written statement of investment policy and objectives.
 A description of interest calculations and how it is distributed, and how gains and losses are treated.
 A description of how the securities are safeguarded (including the settlement processes), and how often the securities are priced and the program audited.  A description of who may invest in the program, how often, what size deposit and withdrawal are allowed.
 A schedule for receiving statements and portfolio listings.  Are reserves, retained earnings, etc. utilized by the pool/fund?  A fee schedule, and when and how it is assessed.
 Is the pool/fund eligible for bond proceeds and/or will it accept such proceeds? XII. COLLATERALIZATION
CERTIFICATES OF DEPOSIT (CDS). The City shall require any commercial bank or savings and loan association to deposit eligible securities with an agency of a depository approved by the State Banking Department to secure any uninsured portion of a Non-Negotiable Certificate of Deposit. The value of eligible securities as defined pursuant to California Government Code, Section 53651, pledged against a Certificate of Deposit shall be equal to 150% of the face value of the CD if the securities are classified as mortgages and 110% of the face value of the CD for all other classes of security.

Proposed New 2024-2025 Policy
12 COLLATERALIZATION OF BANK DEPOSITS. This is the process by which a bank or financial institution pledges securities, or other deposits for the purpose of securing repayment of deposited funds. The City shall require any bank or financial institution to comply with the collateralization criteria defined in California Government Code, Section 53651.

REPURCHASE AGREEMENTS. The City requires that Repurchase Agreements be collateralized only by securities authorized in accordance with California Government Code:
 The securities which collateralize the repurchase agreement shall be priced at Market Value, including any Accrued Interest plus a margin. The Market Value of the securities that underlie a repurchase agreement shall be valued at 102% or greater of the funds borrowed against those securities.  Financial institutions shall mark the value of the collateral to market at least monthly and increase or decrease the collateral to satisfy the ratio requirement described above.
 The City shall receive monthly statements of collateral.

XIII. DELIVERY, SAFEKEEPING AND CUSTODY
DELIVERY-VERSUS-PAYMENT (DVP). All investment transactions shall be conducted on a delivery-versus-payment basis.

SAFEKEEPING AND CUSTODY. To protect against potential losses due to failure of individual securities dealers, and to enhance access to securities, interest payments and maturity proceeds, all cash and securities in the City’s portfolio shall be held in safekeeping in the City’s name by a third-party custodian, acting as agent for the City under the terms of a custody agreement executed by the bank and the City. All investment transactions will require a safekeeping receipt or acknowledgment generated from the trade. A monthly report will be received by the City from the custodian listing all securities held in safekeeping with current market data and other information.

The only exceptions to the foregoing shall be depository accounts and securities purchases made with: (i) local government investment pools; (ii) time certificates of deposit, and, (iii) mutual funds and money market mutual funds, since these securities are not deliverable.

Proposed New 2024-2025 Policy
13 XIV. MAXIMUM MATURITY
To the extent possible, investments shall be matched with anticipated cash flow requirements and known future liabilities.

The City will not invest in securities maturing more than five (5) years from the date of trade settlement, unless the City Council has by resolution granted authority to make such an investment.

XV. RISK MANAGEMENT AND DIVERSIFICATION

MITIGATING CREDIT RISK IN THE PORTFOLIO
Credit risk is the risk that a security or a portfolio will lose some or all its value due to a real or perceived change in the ability of the issuer to repay its debt. The City will mitigate credit risk by adopting the following strategies:
 The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio.  No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer, with the exception of US Treasuries, Agencies, Supranationals, mutual funds, money market mutual funds, LGIPs, and JPAs, or unless otherwise specified in this policy.
 The City may elect to sell a security prior to its maturity and record a capital gain or loss in order to manage the quality, liquidity or yield of the portfolio in response to market conditions or the City’s risk preferences.
 If a security owned by the City is downgraded to a level below the requirements of this policy, making the security ineligible for additional purchases, the following steps will be taken:
 Any actions taken related to the downgrade by the investment manager will be communicated to the City Treasurer in a timely manner.
 If a decision is made to retain the security, the credit situation will be monitored and reported to the City Council.

MITIGATING MARKET RISK IN THE PORTFOLIO
Market risk is the risk that the portfolio value will fluctuate due to changes in the general level of interest rates. The City recognizes that, over time, longer-term portfolios have the potential to achieve higher returns. On the other hand, longer-term portfolios have higher volatility of return. The City will mitigate market risk by providing adequate liquidity for short-term cash needs, and by making longer-term investments only with funds that are not needed for current cash flow purposes.

The City further recognizes that certain types of securities, including variable rate securities, securities with principal paydowns prior to maturity, and securities with Proposed New 2024-2025 Policy
14 embedded options, will affect the market risk profile of the portfolio differently in different interest rate environments. The City, therefore, adopts the following strategies to control and mitigate its exposure to market risk:
 The City will maintain a minimum of six months of budgeted operating expenditures in short-term investments to provide sufficient liquidity for expected disbursements.  The maximum stated final maturity of individual securities in the portfolio will be five (5) years, except as otherwise stated in this policy.
 The duration of the portfolio will generally be approximately equal to the duration (typically, plus or minus 20%) of a Market Benchmark, an index selected by the City based on the City’s investment objectives, constraints and risk tolerances.

XVI. REVIEW OF INVESTMENT PORTFOLIO
The City Treasurer shall periodically, but no less than quarterly, review the portfolio to identify investments that do not comply with this investment policy and establish protocols for reporting major and critical incidences of noncompliance to the City Council.

XVII. PERFORMANCE EVALUATION
The investment portfolio shall be designed to attain a market-average rate of return throughout budgetary and economic cycles, taking into account the City’s risk constraints, the cash flow characteristics of the portfolio, and state and local laws, ordinances or resolutions that restrict investments.

The City Treasurer shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the City Treasurer’s quarterly report. The City Treasurer shall select an appropriate, readily available index to use as a market benchmark. Benchmarks may change over time based on changes in market conditions or cash flow requirements.

XVIII. REPORTING

MONTHLY REPORTS
Monthly transaction reports will be submitted by the City Treasurer to the City Council in accordance with California Government Code Section 53607.

QUARTERLY REPORTS
The City Treasurer will submit a quarterly investment report to the City Council which provides full disclosure of the City’s investment activities within 45 days after the end of the quarter. These reports will disclose, at a minimum, the following information about the City’s portfolio:

Proposed New 2024-2025 Policy
15 1. An asset listing showing par value, cost and independent third-party fair market value of each security as of the date of the report, the source of the valuation, type of investment, issuer, maturity date and interest rate.

2. Transactions for the period.

3. A description of the funds, investments and programs (including lending programs) managed by contracted parties (i.e. LAIF; investment pools, outside money managers and securities lending agents)

4. A one-page summary report that shows:
a. Average maturity of the portfolio and modified duration of the portfolio; b. Maturity distribution of the portfolio;
c. Percentage of the portfolio represented by each investment category; d. Average portfolio credit quality; and,
e. Time-weighted total rate of return for the portfolio for the prior one month, three months, twelve months and since inception compared to the City’s market benchmark returns for the same periods;

5. A statement of compliance with investment policy, including a schedule of any transactions or holdings which do not comply with this policy or with the California Government Code, including a justification for their presence in the portfolio and a timetable for resolution.

6. A statement that the City has adequate funds to meet its cash flow requirements for the next six months.

ANNUAL REPORTS
A comprehensive annual report will be presented to the City Council. This report will include comparisons of the City’s return to the market benchmark return, suggest policies and improvements that might enhance the investment program, and will include an investment plan for the coming year.

XIX. REVIEW OF INVESTMENT POLICY
The investment policy will be reviewed and adopted at least annually within 120 days of the end of the fiscal year, to ensure its consistency with the overall objectives of preservation of principal, liquidity and return, and its relevance to current law and financial and economic trends.

Any recommended modifications or amendments shall be presented by Staff to the City Council for their consideration and adoption.

Proposed New 2024-2025 Policy
16 GLOSSARY OF INVESTMENT TERMS
AGENCIES. Shorthand market terminology for any obligation issued by a government-sponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market.

FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “Freddie Mac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “Fannie Mae,” issues discount notes, bonds and mortgage pass-through securities.

GNMA. The Government National Mortgage Association, known as “Ginnie Mae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.

ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from their own position.

CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline, the issuer will likely call its current securities and reissue them at a lower rate of interest.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED BANK DEPOSIT. A bank deposit that is collateralized at least 100% (principal plus interest to maturity). The deposit is collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COLLATERALIZED TIME DEPOSIT. Time deposits that are collateralized at least 100% (principal plus interest to maturity). These instruments are collateralized using assets set aside by the issuer such as Treasury securities or other qualified collateral to secure the deposit in excess of the limit covered by the Federal Deposit Insurance Corporation.

Proposed New 2024-2025 Policy
17 COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for their own position.

DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a security to changes interest rates.

FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC). The Federal Deposit Insurance Corporation (FDIC) is an independent federal agency insuring deposits in U.S. banks and thrifts in the event of bank failures. The FDIC was created in 1933 to maintain public confidence and encourage stability in the financial system through the promotion of sound banking practices.

FEDERALLY INSURED TIME DEPOSIT. A time deposit is an interest-bearing bank deposit account that has a specified date of maturity, such as a certificate of deposit (CD). These deposits are limited to funds insured in accordance with FDIC insurance deposit limits.

FIDUCIARY. A person or organization that acts on behalf of another person(s) or organization that puts their clients’ interest ahead of their own as they are bound both legally and ethically to act in the best interests of their clients.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MATURITY. The final date upon which the principal of a security becomes due and payable. The investment’s term or remaining maturity is measured from the settlement date to final maturity.

Proposed New 2024-2025 Policy
18 MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis.

MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MODIFIED DURATION. The percent change in price for a 100-basis point change in yields. Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MONEY MARKET MUTUAL FUND. A mutual fund that invests exclusively in short-term securities.

Examples of investments in money market funds are certificates of deposit and U.S.

Treasury securities. Money market funds attempt to keep their net asset values at $1 per share.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO). A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CERTIFICATE OF DEPOSIT (CD). A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or statelicensed branch of a foreign bank. Negotiable CDs are traded in a secondary market.

PAYDOWN. A reduction in the principal amount owed on a bond, loan, or other debt.

PLACEMENT SERVICE DEPOSITS. A private service that allows local agencies to invest in FDICinsured deposits with one or more banks, savings and loans, and credit unions located in the United States. IntraFi (formerly known as CDARS) is an example of an entity that provides this service.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S.

Government securities market.

PRUDENT INVESTOR (PRUDENT PERSON) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.” REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

SECURITIES AND EXCHANGE COMMISSION (SEC). The U.S. Securities and Exchange Commission (SEC) is an independent federal government agency responsible for protecting investors, maintaining fair and orderly functioning of securities markets and facilitating capital Proposed New 2024-2025 Policy
19 formation. It was created by Congress in 1934 as the first federal regulator of securities markets. The SEC promotes full public disclosure, protects investors against fraudulent and manipulative practices in the market, and monitors corporate takeover actions in the United States.

SECURITIES AND EXCHANGE COMMISSION SEC) RULE 15C3-1. An SEC rule setting capital requirements for brokers and dealers. Under Rule 15c3-1, a broker or dealer must have sufficient liquidity in order to cover the most pressing obligations. This is defined as having a certain amount of liquidity as a percentage of the broker/dealer's total obligations. If the percentage falls below a certain point, the broker or dealer may not be allowed to take on new clients and may have restrictions placed on dealings with current client.

STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the tenyear Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

March 11, 2025
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO APPROVE THE SUBMISSION

OF A CALHOME APPLICATION TO THE CALIFORNIA DEPARTMENT
OF HOUSING AND COMMUNITY DEVELOPMENT FOR THE OWNEROCCUPIED REHABILITATION PROGRAM AND THE MORTGAGE ASSISTANCE PROGRAM. IF AWARDED, THE CITY WOULD ENTER

INTO A PROFESSIONAL SERVICES AGREEMENT WITH GLOBAL
URBAN STRATEGIES, INC. FOR THE ADMINISTRATION, REPORTING, VETTING AND LOAN SERVICING OF THE PROGRAMS.

SUMMARY
The City of Compton is requesting the approval of a Resolution to apply for funding under the CalHome Program to support low- to moderate-income first-time homebuyers and owner-occupied housing rehabilitation. The City seeks to request a funding allocation of $4,965,000.00 but will not exceed a maximum of $6,000,000.00 which would be divided across the following program activities:

A. First Time Homebuyers Program in the amount of Two Million Two Hundred Five Thousand Dollars ($2,205,000.00); and
B. Owner Occupied Rehabilitation in the amount of Two Million Seven Hundred Sixty Thousand Dollars ($2,760,000.00).

C. Total request of Four Million Nine Hundred Sixty-Five Thousand Dollars ($4,965,000.00) but at no point will exceed a maximum combined total of Six Million Dollars ($6,000,000.00).

BACKGROUND
The CalHome Program is authorized by Chapter 6 (commencing with Section 50650) of Part 2 of Division 31 of the State Health and Safety Code. Additionally, Proposition 1C, the Housing and Emergency Shelter Trust Funds Act of 2006, provides funding for CalHome mortgage assistance for low, or very low, income first time homebuyers and owner-occupied housing rehabilitation for low, or very low, income homeowners (0 to 80% of Median Family Income). The CalHome application is a competitive application process rated and ranked by HCD to determine the grant recipients.

6. Staff Report - Resolution approving the Submission of Calhome Grant Application and if awarded, enter into a PSA with Global Urban Strategies, Inc.

Owner Occupied Rehabilitation and Mortgage Assistance
March 11, 2025, Page 2
If awarded, these funds will provide low interest (0 to 3%, determined by the City Council) deferred payment loans to seniors, persons with a disability, and families of low and moderate-income who own and occupy their homes and need financial assistance to make repairs and improvements. This program is a reimbursable program with no matching funds required to participate.

The 2024 Homeownership Super Notice of Funding Availability (HOSN) has been issued by the California Department of Housing and Community Development (HCD), with approximately $143.1 million available for the CalHome Program. The application deadline is March 13, 2025.

STATEMENT OF THE ISSUE
The City of Compton is taking an important step to secure essential funding for its residents by seeking approval to apply for the CalHome Program under the 2024 Homeownership Super Notice of Funding Availability (HOSN). This program is designed to provide financial assistance to low- and very low-income homeowners and first-time homebuyers, helping to ensure housing stability and support critical rehabilitation efforts within the community.

Given the competitive nature of the application process, city staff recommends partnering with Global Urban Strategies, Inc. to enhance the city's chances of securing funding. If awarded, CalHome funds will offer deferred payment, low-interest loans ranging from 0% to 3% to seniors, individuals with disabilities, and low- to moderate-income families who need financial support for home repairs and improvements. Additionally, the program aims to foster economic stability and investment by making homeownership more accessible to first-time buyers. Notably, this initiative requires no matching funds from the city, making it financially viable.

The city plans to request $4,965,000, with a maximum request cap of $6,000,000. These funds will be allocated across two crucial areas: $2,205,000 for the First-Time Homebuyers Program and $2,760,000 for Owner-Occupied Rehabilitation efforts. These funds must be expended within thirty-six (36) months from the execution of the Standard Agreement.

One of the key challenges in this process is the competitive nature of the application scoring. Without external support, the city would only earn 52 points, which falls below the threshold required for a viable application. However, by collaborating with Global Urban Strategies, Inc., which has a strong track record in similar programs, the city's Staff Report - Resolution approving the Submission of Calhome Grant Application and if awarded, enter into a PSA with Global Urban Strategies, Inc.

Owner Occupied Rehabilitation and Mortgage Assistance
March 11, 2025, Page 3
application score could increase to 92, making it a strong contender for funding.

Additionally, the administrative grant allocation will cover Global's compensation, eliminating the need for additional financial commitments from the city's General Fund.

With the application deadline approaching March 13, 2025, the City Council must act quickly to approve the resolution authorizing the submission. This decision will ensure the city remains eligible for CalHome funding and help secure essential resources supporting homeownership, community revitalization, and improved living conditions for Compton residents. Moving forward with this initiative, the city is committed to strengthening its neighborhoods and ensuring a stable housing environment for those who need it most.

ALTERNATIVE
The Council has the authority to staff’s recommendations for approval of resolution to submit or disapprove Staff’s recommendations and not apply for the grant opportunity.

The City Council may also choose to provide further direction to Staff pertaining to this item.

FISCAL IMPACT
No matching funds are required to apply. This program has a reimbursable payment structure; the City must expend the funds and then submit them for reimbursement. The City will request, but funds may not be guaranteed, an initial program advance of up to twenty-five percent to fund start-up administrative costs and initial applications.

RECOMMENDATION
Staff recommends that Council adopt the attached Resolution.

CECIL FLOURNOY

COMMUNITY DEVELOPMENT 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 APPROVE THE SUBMISSION OF

A CALHOME APPLICATION TO THE CALIFORNIA DEPARTMENT OF
HOUSING AND COMMUNITY DEVELOPMENT FOR THE OWNEROCCUPIED REHABILITATION PROGRAM AND THE MORTGAGE ASSISTANCE PROGRAM. IF AWARDED, THE CITY WOULD ENTER INTO

A PROFESSIONAL SERVICES AGREEMENT WITH GLOBAL URBAN
STRATEGIES, INC. FOR THE ADMINISTRATION, REPORTING, VETTING AND LOAN SERVICING OF THE PROGRAMS.

WHEREAS, the City of Compton, a municipal corporation and political subdivision of the State of California, wishes to apply for and receive an allocation of funds through the CalHome Program; and
WHEREAS, the California Department of Housing and Community Development (hereinafter referred to as “HCD”) has the 2024 Homeownership Super Notice of Funding Availability (HOSN) on December 19, 2024, for the CalHome program established by Chapter 84, Statutes of 2000 (SB 1656 Alarcon), and codified in Chapter 6 (commencing with Section 50650) of Part 2 of Division 31 of the Health and Safety Code (the “statute”).

Pursuant to the statute, HCD is authorized to approve funding allocations utilizing monies made available by the State Legislature to the CalHome program, subject to the terms and conditions of the statute and the CalHome Program Regulations adopted by HCD in April 2004; and
WHEREAS, the California Department of Housing and Community Development (HCD) has issued the 2024 Homeownership Super NOFA, offering funding for homeownership development and owner-occupied rehabilitation programs under the CalHome Program; and
WHEREAS, the City of Compton wishes to apply for funding to support low- and moderate-income first-time homebuyers and owner-occupied rehabilitation projects within the City; and
WHEREAS, the City of Compton intends to apply for funding under the CalHome Program to support low- to moderate-income first-time homebuyers and owner-occupied housing rehabilitation. The City seeks to request a funding allocation of $4,965,000.00 but will not exceed a maximum of $6,000,000.00 which would be divided across the following program activities:

A. First Time Homebuyers Program in the amount of Two Million Two Hundred Five Thousand Dollars ($2,205,000.00); and
B. Owner Occupied Rehabilitation in the amount of Two Million Seven Hundred Sixty Thousand Dollars ($2,760,000.00).

C. Total request of Four Million Nine Hundred Sixty-Five Thousand Dollars ($4,965,000.00) but at no point will exceed a maximum combined total of Six Million Dollars ($6,000,000.00).

All activities will be conducted within the boundaries of the City of Compton, CA.

WHEREAS, the City of Compton has reviewed the CalHome program and determined that it is an eligible applicant for this funding; and WHEREAS, the City of Compton, upon the award of said grant funding, wishes to enter into a Professional Service Agreement with Global Urban Strategies, Inc. for the Administration of the CalHome Program (including loan servicing, monitoring, Homebuyer Education, and submittal of reimbursement requests), program eligibility, and vetting of applicants.

RESOLUTION NO._____________
PAGE 2

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

SECTION 1. The City of Compton shall submit to HCD an application to participate in the CalHome Program in response to the NOFA issued on December 19, 2024, which will request a funding allocation for the following activities:

A. First Time Homebuyers Program in the amount of Two Million Two Hundred Five Thousand Dollars ($2,205,000.00); and
B. Owner Occupied Rehabilitation in the amount of Two Million Seven Hundred Sixty Thousand Dollars ($2,760,000.00).

C. Total request of Four Million Nine Hundred Sixty-Five Thousand Dollars ($4,965,000.00) but at no point will exceed a maximum combined total of Six Million Dollars ($6,000,000.00).

All activities will be conducted within the boundaries of the City of Compton, CA.

SECTION 2. If the application for funding is approved, the City of Compton hereby agrees to use the CalHome funds for eligible activities in the manner presented in the application as approved by HCD and in accordance with program regulations cited above.

The application in full is incorporated as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the application are enforceable through the Standard Agreement. The City of Compton acknowledges and agrees that it may be required to execute any and all other instruments necessary or required by HCD for participating in the CalHome Program.

SECTION 3. The City Council of the City of Compton authorizes the City Manager or his designee, to execute in the name of the City the application, the Standard Agreement, and any subsequent amendments or modifications thereto, as well as any other documents required by HCD for participation in the CalHome Program, and any amendments thereto.

SECTION 4. Upon the award of said grant funding, the City Council of the City of Compton authorizes entering into a Professional Service Agreement with Global Urban Strategies, Inc. for the Administration of the CalHome Program (including loan servicing, monitoring, Homebuyer Education, and submittal of reimbursement requests), program eligibility, and vetting of applicants.

SECTION 5. That a certified copy of this Resolution shall be filed in the offices of the City Manager, City Attorney, City Controller, City Clerk and the Community Development Department.

SECTION 6. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this ________ day of _____________, 2025.
_________________________________

EMMA SHARIF

MAYOR OF THE CITY OF COMPTON
RESOLUTION NO._____________
PAGE 3
ATTEST:
____________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Satra D. Zurita, 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 _____, 2025.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCIL MEMBERSNOES: COUNCIL MEMBERABSENT: COUNCIL MEMBERSABSTAIN: COUNCIL MEMBERS- ____________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON
March 11, 2025
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

ACCEPTING THE CONSTRUCTION OF THE ARTESIA BOULEVARD

OVER ALAMEDA STREET AND ACTA/UPRR BRIDGE REPAIR
PROJECT, CIP# 23-01 AS COMPLETE, DIRECT STAFF TO FILE THE

NOTICE OF COMPLETION WITH THE LOS ANGELES COUNTY
RECORDER’S OFFICE AND AUTHORIZE THE RELEASE OF THE
CONTRACTOR’S RETENTION

SUMMARY
This Resolution accepts the construction of the Artesia Boulevard Over Alameda Street and ACTA/UPRR Bridge Repair Project, CIP# 23-01 as complete, direct staff to file the Notice of Completion and authorize the release of the contractor’s retention ($244,440.61).

BACKGROUND
The City of Compton replaced a section of the Artesia Boulevard Bridge (State Bridge No.53C1744, Los Angeles County Bridge No. 2446), located approximately 600 feet west of Santa Fe Avenue within City limits. Specifically, the Project is located over Alameda Street and the Union Pacific Railroad and Alameda Corridor’s Right-of-Ways.

The primary focus of the Project was replacing the section of the bridge known as Span 10, initially presumed to be the sole area affected by the fire. This replacement was necessary due to the severe fire damage sustained to the bridge’s steel girders and supporting connections. The replacement was an in-kind concept, using a steel superstructure with rolled steel girders.

On September 26, 2023, pursuant to Resolution No. 25, 906, City Council authorized the City Manager to enter into a construction services agreement with Beador Construction Company, Inc. (Beador) to provide the following services in accordance with the specified plans: survey of existing bridge, coordination and protection of utilities with utility companies and railroads, demolition of eastern span of the existing bridge, including possible lead and asbestos, surface repair of existing substructures, new bearings and steel girders, concrete bridge deck, median, sidewalk, and curb; salvage and reset existing steel rail, deck joints, and traffic control. City Council authorized a purchase order to be issued for the aforementioned construction services in the amount of Four Million Three Hundred Eighty One Thousand Three Hundred Dollars ($4,381,300.00).

7. Staff Report – Notice of Completion
Artesia Boulevard Over Alameda Street and ACTA/UPRR Bridge Repair Project, CIP# 23-01 March 11, 2025, Page 2 of 3
On January 2, 2024, construction commenced to replace damaged portions of the Artesia Boulevard Bridge. Initially, the project focused solely on addressing the damage to Span

10. However, as work progressed, it became evident that Span 9 had also sustained significant fire-related damages, prompting the expansion of the project scope to encompass both spans as well as other requested work related to the Artesia Bridge project.

On October 1, 2024, pursuant to Resolution No. 26,131, City Council authorized the City Manager to amend the construction service agreement with the contractor to increase funding in the amount of $2,070,361.68 to pay for various change orders due to unforeseen circumstances and additional work that was not included in the initial scope of work. The additional funds were crucial to adequately address the additional work and ensure the project was completed in a timely manner.

STATEMENT OF ISSUE
On November 2, 2024, the Artesia Boulevard Over Alameda Street and ACTA/UPRR Bridge Repair Project was completed with a final construction cost of $6,467,649.69 which was less than the authorized amount approved by the City Council. All construction items were completed per the contractual agreements as follows:

Progress
Payment
Total Contract Retention Payments to
Contractor
Other
1 $ 815,167.84 $ 40,758.39 $ 774,409.45
2 $ 245,861.72 $ 12,293.09 $ 233,568.63
3 $ 875,551.68 $ 43,777.58 $ 831,774.10
4 $ 344,852.32 $ 17,242.62 $ 327,609.70
5 $ 659,800.92 $ 32,990.05 $ 626,810.87
6 $ 909,557.51 $ 45,477.88 $ 864,079.63
7 $ 734,771.86 $ 36,738.59 $ 698,033.27
8 $ 585,865.07 $ 29,293.25 $ 556,571.82
9 $ 577,443.03 $ 28,872.15 $ 548,570.88
10 $ 675,133.36 $ 33,756.67 $ 641,376.69
11 $ 126,741.10 $ 6,337.06 $ 120,404.05
Totals $6,550,746.41 $ 327,537.32 $ 6,223,209.09
Difference between Contract Work and Payment to the Contractor $83,096.72 Credit Paid to Contractor Pay App. 2 $82,650.00
Credit Paid to Contractor Pay App 10 $ 446.72
Staff Report – Notice of Completion
Artesia Boulevard Over Alameda Street and ACTA/UPRR Bridge Repair Project, CIP# 23-01 March 11, 2025, Page 3 of 3
Summary
Original Contract $ 4,270,800.00
Total Change Orders $ 2,196,849.69
Contract Total $ 6,467,649.69
Retention $ 327,537.33
Credit to Contractor $ 83,096.72
Retention $ 244,440.61
The project was conducted in accordance with California Public Contract Law, and a retention amount equivalent to 5% was withheld from progress payments to ensure satisfactory completion.

Therefore, in order to accept the construction of the Artesia Boulevard Over Alameda Street and ACTA/UPRR Bridge Repair Project, CIP# 23-01 as complete, direct staff to file the Notice of Completion and authorize the release of the contractor’s retention ($244,440.61), City Council’s authorization is necessary.

FISCAL IMPACT
There is no financial impact associated with release of the retention. Funds (5%) were withheld from each progress payment throughout the contract period.

ALTERNATIVE
The contractor has completed all work to the satisfaction of the construction specifications. Therefore, no other alternative is being proposed

RECOMMENDATION
Staff recommends that the City Council accept the construction of the Artesia Boulevard Over Alameda Street and ACTA/UPRR Bridge Repair Project, CIP# 23-01 as complete, direct staff to file the Notice of Completion and authorize the release of the contractor’s retention ($244,440.61).

JOHN D. STRICKLAND, JR.,

DIRECTOR OF PUBLIC WORKS
APPROVED AS TO FORWARDING:

WILLIE A. HOPKINS, JR.,

CITY MANAGER
RESOLUTION NO. _________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

ACCEPTING THE CONSTRUCTION OF THE ARTESIA BOULEVARD OVER ALAMEDA STREET AND ACTA/UPRR BRIDGE REPAIR PROJECT, CIP# 23-01 AS

COMPLETE, DIRECT STAFF TO FILE THE NOTICE OF COMPLETION WITH THE LOS ANGELES COUNTY RECORDER’S OFFICE AND AUTHORIZE THE
RELEASE OF THE CONTRACTOR’S RETENTION
WHEREAS, this Resolution accepts the construction of the Artesia Boulevard Over Alameda Street and ACTA/UPRR Bridge Repair Project, CIP# 23-01 as complete, direct staff to file the Notice of Completion and authorize the release of the contractor’s retention ($244,440.61); and
WHEREAS, the City of Compton replaced a section of the Artesia Boulevard Bridge (State Bridge No.53C1744, Los Angeles County Bridge No. 2446), located approximately 600 feet west of Santa Fe Avenue within City limits; and WHEREAS, the Project is located over Alameda Street and the Union Pacific Railroad and Alameda Corridor’s Right-of-Ways; and
WHEREAS, the primary focus of the Project was replacing the section of the bridge known as Span 10, initially presumed to be the sole area affected by the fire; and WHEREAS, this replacement was necessary due to the severe fire damage sustained to the bridge’s steel girders and supporting connections and the replacement was an in-kind concept, using a steel superstructure with rolled steel girders; and WHEREAS, on September 26, 2023, pursuant to Resolution No. 25,906, City Council authorized the City Manager to enter into a construction services agreement with Beador Construction Company, Inc. (Beador) to provide the following services in accordance with the specified plans: survey of existing bridge, coordination and protection of utilities with utility companies and railroads, demolition of eastern span of the existing bridge, including possible lead and asbestos, surface repair of existing substructures, new bearings and steel girders, concrete bridge deck, median, sidewalk, and curb; salvage and reset existing steel rail, deck joints, and traffic control; and
WHEREAS, City Council authorized a purchase order to be issued for the aforementioned construction services in the amount of Four Million Three Hundred Eighty One Thousand Three Hundred Dollars ($4,381,300.00); and WHEREAS, on January 2, 2024, construction commenced to replace damaged portions of the Artesia Boulevard Bridge and initially, the project focused solely on addressing the damage to Span 10; and
WHEREAS, as work progressed, it became evident that Span 9 had also sustained significant fire-related damages, prompting the expansion of the project scope to encompass both spans as well as other requested work related to the Artesia Bridge project; and
WHEREAS, on October 1, 2024, pursuant to Resolution No. 26,131, City Council authorized the City Manager to amend the construction service agreement with the contractor to increase funding in the amount of $2,070,361.68 to pay for various change orders due to unforeseen circumstances and additional work that was not included in the initial scope of work and the additional funds were crucial to adequately address the additional work and ensure the project was completed in a timely manner; and
WHEREAS, on November 2, 2024, the Artesia Boulevard Over Alameda Street and ACTA/UPRR Bridge Repair Project was completed with a final construction cost of Resolution No. ______

$6,467,649.69 which was less than the authorized amount approved by the City Council; and
WHEREAS, all construction items were completed per the contractual agreements as follows:

Progress
Payment
Total Contract Retention Payments to
Contractor
Other
1 $ 815,167.84 $ 40,758.39 $ 774,409.45
2 $ 245,861.72 $ 12,293.09 $ 233,568.63
3 $ 875,551.68 $ 43,777.58 $ 831,774.10
4 $ 344,852.32 $ 17,242.62 $ 327,609.70
5 $ 659,800.92 $ 32,990.05 $ 626,810.87
6 $ 909,557.51 $ 45,477.88 $ 864,079.63
7 $ 734,771.86 $ 36,738.59 $ 698,033.27
8 $ 585,865.07 $ 29,293.25 $ 556,571.82
9 $ 577,443.03 $ 28,872.15 $ 548,570.88
10 $ 675,133.36 $ 33,756.67 $ 641,376.69
11 $ 126,741.10 $ 6,337.06 $ 120,404.05
Totals $6,550,746.41 $ 327,537.32 $ 6,223,209.09
Difference between Contract Work and Payment to the Contractor $83,096.72 Credit Paid to Contractor Pay App. 2 $82,650.00
Credit Paid to Contractor Pay App 10 $ 446.72
Summary
Original Contract $ 4,270,800.00
Total Change Orders $ 2,196,849.69
Contract Total $ 6,467,649.69
Retention $ 327,537.33
Credit to Contractor $ 83,096.72
Retention $ 244,440.61
and;
WHEREAS, the project was conducted in accordance with California Public Contract Law, and a retention amount equivalent to 5% was withheld from progress payments to ensure satisfactory completion; and
WHEREAS, there is no financial impact associated with release of the retention because funds (5%) were withheld from each progress payment throughout the contract period; and
WHEREAS, in order to accept the construction of the Artesia Boulevard Over Alameda Street and ACTA/UPRR Bridge Repair Project, CIP# 23-01 as complete, direct staff to file the Notice of Completion and authorize the release of the contractor’s retention ($244,440.61), City Council’s authorization is necessary.

WHEREAS, all work items and activity was reviewed for compliance with the project specifications along with staff’s recommendation for acceptance of the project as complete.

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

Resolution No. ________

SECTION 1. That the City of Compton hereby accepts the construction of the Artesia Boulevard Over Alameda Street and ACTA/UPRR Bridge Repair Project, CIP# 23-01 as complete, direct staff to file the Notice of Completion and authorize the release of the contractor’s retention ($244,440.61).

SECTION 2. That the contractor’s retention funds are hereby authorized to be released.

SECTION 3. That a copy of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk, City Attorney and Public Works Engineering Department.

SECTION 4. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this ______ day of ____________, 2025.
__________________________________

EMMA SHARIF

MAYOR OF THE CITY OF COMPTON
ATTEST:
_____________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Satra D. Zurita, 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 ________________, 2025.

That said Resolution was adopted by the following vote to wit:

AYES: COUNCIL MEMBERSNOES: COUNCIL MEMBERSABSENT: COUNCIL MEMBERSABSTAIN: COUNCIL MEMBERS- _____________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON
March 11, 2025
TO: MAYOR AND CITY COUNCIL MEMBERS
FROM: CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

ACCEPTING THE CONSTRUCTION OF THE COMPTON FIRE
STATION NOS. 1 THROUGH 4 DRIVEWAY AND APRON
IMPROVEMENT PROJECT (CIP# 20-01) AS COMPLETE, DIRECT

STAFF TO FILE THE NOTICE OF COMPLETION WITH THE LOS
ANGELES COUNTY RECORDER’S OFFICE AND AUTHORIZE THE
RELEASE OF THE CONTRACTOR’S RETENTION ($88,971.31).

SUMMARY
This Resolution accepts the construction of the Compton Fire Station Nos. 1 through 4 Driveway and Apron Improvement Project (CIP# 20-01) as complete, direct staff to file the Notice of Completion with the Los Angeles County Recorder’s Office and authorize the release of the contractor’s retention ($88,971.31).

BACKGROUND
Due to the severely damaged condition of the driveway aprons and fire trucks access leading into the apparatus bays at each of the four (4) City Fire Stations, City staff was directed to solicit proposals from qualified engineering firms to provide design services for the 4 fire stations located as follows:

Fire Station 1 Fire Station 3
(Headquarters) (Training Facility)
201 South Acacia Avenue 1133 West Rosecrans Avenue
Compton, CA 90220 Compton, CA 90222
Fire Station 2 Fire Station 4
1320 East Palmer Street 950 West Walnut Avenue
Compton, CA 90221 Compton, CA 90220
The Compton Fire Stations Nos. 1 through 4 Driveways and Apron Improvement Project, CIP# 20-01 (“Project”) consisted of the following general work description:
construction of PCC driveways, on-site concrete slab accesses and parking lots, dowel bars and tie bars joints, isolated joints, saw cut contraction joints, curb and gutters, sidewalks, aggregate base (Class II), detectable warning surfaces, cold mill, asphalt concrete pavement overlay, full depth of AC slot patch, adjustment of water valve, groundwater monitoring well covers, water meter boxes, and pull boxes.

8. Notice of Completion Staff Report
MARCH 11, 2025

On April 13, 2021, pursuant to Resolution No. 25,444, City Council authorized the City Manager to enter into a construction contract with an establish a purchase order for Horizons Construction Company International, Inc. for the Compton Fire Stations Nos. 1 through 4 Driveways and Apron Improvement Project, CIP# 20-01 in the amount of $584,700.25. The Project was originally specified to be completed in 60 working days.

As part of the pre-construction activities, staff and the contractor performed a site visit to verify and compared the scope of work identified in the plans and the current conditions of each fire station based on the design plans completed in 2021.

In June 2021, after conducting a pre-construction inspection of the sites prior to construction, City staff and management determined that the current pavement conditions of the 4 fire stations were severely damaged and that additional work was necessary to bring the parking lots up to an adequate level of service in order to meet City standards.

The original scope of work only covered portions of the severely damaged parking lots at all four fire stations. The City however desired to repair the damaged pavement at all four stations in its entirety which would require an additional funding allocation.

The contractor began construction on June 14, 2021 at Fire Station No. 1 and completed the construction work at the following fire stations in the order indicated below:

Location Start Date Completion Date Status
Fire Station No. 1 6/14/2021 10/1/2021 Completed
Fire Station No. 2 9/2/2021 9/17/2021 Completed
Fire Station No. 4 9/21/2021 11/30/2021 Completed
Fire Station No. 3 Pending Pending Redesign
Fire Stations Nos. 1, 2, & 4 were completed at a total cost of $842,062.25 which was $257,362.00 above the original authorized contract amount. The available funding allocated to the project had been exhausted. Therefore, City staff requested that an additional $257,362.00 be authorized to pay the contractor for services rendered at Fire Stations Nos. 1, 2 & 4.

On December 14, 2021, pursuant to Resolution No. 25,592, City Council authorized the City Manager to amend (First Amendment) the construction contract with and establish a purchase order for Horizon Construction Company International, Inc. in the amount of $257,362 for additional work completed at Fire Stations Nos. 1, 2 & 4.

On March 7, 2023, pursuant to Resolution No. 25,798, City Council authorized the City Manager to amend (Second Amendment) the construction contract with and establish a purchase order for Horizons Construction Company International for the additional work to complete only the drainage portion of the work at Fire Station No. 3. in the Notice of Completion Staff Report
MARCH 11, 2025

amount of $213,073 and on July 25, 2023, pursuant to Resolution No 25, 873, City Council authorized the City Manager to enter into an amendment (Third Amendment) to the construction contract with Horizon Construction Company, Inc. in the amount of $752,098.60 for additional concrete work at Fire Station No. 3. The additional cost included installing concrete throughout the entire area of Fire Station No. 3.

Construction of Fire Station No. 3 began on November 20, 2023 and the project was completed on August 13, 2024 with a total construction cost of $1,786,053.31 which was $21,180.54 less than the amount authorized by the City Council.

STATEMENT OF THE ISSUE
The project was conducted in accordance with California Public Contract Law, and a retention amount equivalent to 5% was withheld from progress payments to ensure satisfactory completion.

Therefore, in order to accept the Compton Fire Station Nos. 1 through 4 Driveway and Apron Improvement Project (CIP# 20-01) as complete, direct staff to file the Notice of Completion with the Los Angeles County Recorder’s Office and authorize the release of the contractor’s retention ($88,971.31), City Council’s authorization is necessary.

FISCAL IMPACT
There is no financial impact associated with release of the retention. Funds (5%) were withheld from each progress payment throughout the contract period.

ALTERNATIVE
The contractor has completed all work to the satisfaction of the construction specifications. Therefore, no other alternatives are being proposed.

RECOMMENDATION
Staff recommends that the City Council accept the completion of the Compton Fire Station Nos. 1 through 4 Driveway and Apron Improvement Project (CIP# 20-01) as complete, direct staff to file the Notice of Completion with the Los Angeles County Recorder’s Office and authorize the release of the contractor’s retention ($88,971.31).

JOHN D. STRICKLAND, JR.

DIRECTOR OF PUBLIC WORKS
APPROVED FOR FORWARDING:

WILLIE A. HOPKINS

CITY MANAGER
RESOLUTION NO. _______

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COMPTON ACCEPTING THE CONSTRUCTION OF THE COMPTON
FIRE STATION NOS. 1 THROUGH 4 DRIVEWAY AND APRON
IMPROVEMENT PROJECT (CIP# 20-01) AS COMPLETE, DIRECT

STAFF TO FILE THE NOTICE OF COMPLETION WITH THE LOS
ANGELES COUNTY RECORDER’S OFFICE AND AUTHORIZE THE
RELEASE OF THE CONTRACTOR’S RETENTION ($88,971.31).

WHEREAS, this Resolution accepts the construction of the Compton Fire Station Nos. 1 through 4 Driveway and Apron Improvement Project (CIP# 20- 01) as complete, direct staff to file the Notice of Completion with the Los Angeles County Recorder’s Office and authorize the release of the contractor’s retention ($88,971.31); and
WHEREAS, due to the severely damaged condition of the driveway aprons and fire trucks access leading into the apparatus bays at each of the four (4) City Fire Stations, City staff was directed to solicit proposals from qualified engineering firms to provide design services for the 4 fire stations located as follows:

Fire Station 1 Fire Station 3
(Headquarters) (Training Facility)
201 South Acacia Avenue 1133 West Rosecrans Avenue
Compton, CA 90220 Compton, CA 90222
Fire Station 2 Fire Station 4
1320 East Palmer Street 950 West Walnut Avenue
Compton, CA 90221 Compton, CA 90220
;and
WHEREAS, the Compton Fire Stations Nos. 1 through 4 Driveways and Apron Improvement Project, CIP# 20-01 (“Project”) consisted of the following general work description: construction of PCC driveways, on-site concrete slab accesses and parking lots, dowel bars and tie bars joints, isolated joints, saw cut contraction joints, curb and gutters, sidewalks, aggregate base (Class II), detectable warning surfaces, cold mill, asphalt concrete pavement overlay, full depth of AC slot patch, adjustment of water valve, groundwater monitoring well covers, water meter boxes, and pull boxes; and
WHEREAS, on April 13, 2021, pursuant to Resolution No. 25,444, City Council authorized the City Manager to enter into a construction contract with an establish a purchase order for Horizons Construction Company International, Inc. for the Compton Fire Stations Nos. 1 through 4 Driveways and Apron Improvement Project, CIP# 20-01 in the amount of $584,700.25 and the Project was specified to be completed in 60 working days; and WHEREAS, as part of the pre-construction activities, staff and the contractor performed a site visit to verify and compared the scope of work identified in the plans and the current conditions of each fire station based on the design plans completed in 2021; and
WHEREAS, in June 2021, after conducting a pre-construction inspection of the sites prior to construction, City staff and management determined that the current pavement conditions of the 4 fire stations were severely damaged and that additional work was necessary to bring the parking lots up to an adequate level of service in order to meet City standards; and
Resolution No. ________

WHEREAS, the original scope of work only covered portions of the severely damaged parking lots at all four fire stations; and
WHEREAS, the City however desired to repair the damaged pavement at all four stations in its entirety which would require an additional funding allocation; and
WHEREAS, the contractor began construction on June 14, 2021 at Fire Station No. 1 and completed the construction work at the following fire stations in the order indicated below:

Location Start Date Completion Date Status
Fire Station No. 1 6/14/2021 10/1/2021 Completed
Fire Station No. 2 9/2/2021 9/17/2021 Completed
Fire Station No. 4 9/21/2021 11/30/2021 Completed
Fire Station No. 3 Pending Pending Redesign
;and
WHEREAS, Fire Stations Nos. 1, 2, & 4 were completed at a total cost of $842,062.25 which was $257,362.00 above the original authorized contract amount; and
WHEREAS, the available funding allocated to the project had been exhausted and therefore, City staff requested that an additional $257,362.00 be authorized to pay the contractor for services rendered at Fire Stations Nos. 1, 2 & 4; and
WHEREAS, on December 14, 2021, pursuant to Resolution No. 25,592, City Council authorized the City Manager to amend (First Amendment) the construction contract with and establish a purchase order for Horizon Construction Company International, Inc. in the amount of $257,362 for additional work completed at Fire Stations Nos. 1, 2 & 4; and WHEREAS, on March 7, 2023, pursuant to Resolution No. 25,798, City Council authorized the City Manager to amend (Second Amendment) the construction contract with and establish a purchase order for Horizons Construction Company International, Inc. for the additional work to complete only the drainage portion of the work at Fire Station No. 3. in the amount of $213,073; and
WHEREAS, on July 25, 2023, pursuant to Resolution No 25, 873, City Council authorized the City Manager to enter into an amendment (Third Amendment) to the construction contract with Horizon Construction Company International, Inc. in the amount of $752,098.60 for additional concrete work at Fire Station No. 3 and the additional cost included installing concrete throughout the entire area of Fire Station No. 3; and
WHEREAS, construction of Fire Station No. 3 began on November 20, 2023 and the project was completed on August 13, 2024 with a total construction cost of $1,786,053.31 which was $21,180.54 less than what was authorized by the City Council; and
WHEREAS, the project was conducted in accordance with California Public Contract Law, and a retention amount equivalent to 5% was withheld from progress payments to ensure satisfactory completion; and Resolution No. ________

WHEREAS, in order to accept the Compton Fire Station Nos. 1 through 4 Driveway and Apron Improvement Project (CIP# 20-01) as complete, direct staff to file the Notice of Completion with the Los Angeles County Recorder’s Office and authorize the release of the contractor’s retention ($88,971.31), City Council’s authorization is necessary.

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

Section 1. That the City hereby accepts the construction of the Compton Fire Station Nos. 1 through 4 Driveway and Apron Improvement Project (CIP# 20-01) as complete, direct staff to file the Notice of Completion with the Los Angeles County Recorder’s Office and authorize the release of the contractor’s retention ($88,971.31).

Section 2. That a copy of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk, City Attorney and Public Works Engineering Department.

Section 3. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this _____ day of _______________, 2025.
_______________________________

EMMA SHARIF

MAYOR OF THE CITY OF COMPTON
ATTEST:
____________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Satra D. Zurita, 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 _______________, 2025.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCIL MEMBERSNOES: COUNCIL MEMBERSABSTAIN: COUNCIL MEMBERSABSENT: COUNCIL MEMBERS- ____________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON
March 11, 2025
TO: MAYOR AND CITY COUNCIL
FROM: CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO AN ASSIGNMENT

AND ASSUMPTON AGREEMENT BETWEEN THE CITY OF COMPTON,

PARAMOUNT PIPELINE, LLC AND AIR PRODUCTS MANUFACTURING, LLC

SUMMARY
This Resolution authorizes the City Manager to enter into an Assignment and Assumption Agreement between the City of Compton, Paramount Pipeline, LLC and Air Products Manufacturing, LLC.

BACKGROUND
Paramount Pipeline, LLC (“Paramount Pipeline”) has operated an oil pipeline which runs approximately 7,302 linear feet under Compton Boulevard, Gibson Avenue, Myrrh Street, Lime Avenue, Alondra Boulevard, Atlantic Avenue, Artesia Boulevard, and Santa Fe Avenue in the City of Compton pursuant to Ordinance No. 2,223, adopted on October 11, 2011. The term of the franchise is for 20 years (April 10, 2006 – April 10, 2026).

On May 4, 2023, Paramount Pipeline, LLC (Paramount Pipeline) entered into an Asset Purchase and Sales Agreement with Air Products Manufacturing, LLC (“Air Products”) to purchase the pipelines assets in the City of Compton (the “City”) covered under Franchise Resolution/Ordinance Nos. 2,223, 23,388, and 23,363 (the “Pipeline Assets”).

Effective November 14, 2023, Paramount Pipeline and Air Products have finalized the transaction, which included the transfer of pipeline assets cover by the franchise resolutions to Air Products. Paramount Pipeline will continue to operate these assets.

Paramount Pipeline is requesting the City Council to consent to the proposed Assignment and Assumption Agreement in order to finalize the transaction between Paramount Pipeline and Air Products.

The Assignment and Assumption Agreement ensures that Air Products agrees to be bound by all the terms and conditions of the franchise upon the closing of the transaction with Paramount Pipeline.

9. Staff Report – Assignment and Assumption Agreement
Paramount Pipeline, LLC
Page Two

STATEMENT OF ISSUE
Section 7, Assignment of Ordinance No. 2,223, states that Paramount Petroleum Corporation shall not permit any right or privilege granted by the franchise to be exercised by another, nor shall the franchise or any interest therein or any right or privilege thereunder be in whole or in part sold, transferred, leased, assigned, or disposed of except to a corporation acquiring or owning a portion of the assets of Paramount Petroleum without the consent of the City of Compton expressed by resolution.

Any such sale, lease, assignment, or other disposition of the franchise, whether requiring the consent of the City or otherwise, shall be evidenced by a duly executed instrument in writing filed in the office of the City Clerk with a copy sent to the Department of Public Works.

Therefore, in order to authorize the City Manager to enter into an Assignment and Assumption Agreement between the City of Compton, Paramount Pipeline, LLC and Air Products Manufacturing, LLC, City Council’s authorization is necessary.

FISCAL IMPACT
None.

ALTERNATIVE
No other option is being proposed.

RECOMMENDATION
Staff recommends the City Council adopt the attached Resolution.

JOHN D. STRICKLAND, JR.

DIRECTOR OF PUBLIC WORKS

APPROVED FOR FORWARDING
WILLIE A. HOPKINS, JR.

CITY MANAGER
Attachment: Assignment and Assumption Agreement
RESOLUTION NO. ____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO AN ASSIGNMENT AND

ASSUMPTON AGREEMENT BETWEEN THE CITY OF COMPTON, PARAMOUNT

PIPELINE, LLC AND AIR PRODUCTS MANUFACTURING, LLC
WHEREAS, Paramount Pipeline, LLC has operated an oil pipeline which runs approximately 7,302 linear feet under Compton Boulevard, Gibson Avenue, Myrrh Street, Lime Avenue, Alondra Boulevard, Atlantic Avenue, Artesia Boulevard, and Santa Fe Avenue in the City of Compton pursuant to Ordinance No. 2,223, adopted on October 11, 2011 and the terms of the franchise is for 20 years (April 10, 2006 – April 10, 2026); and
WHEREAS, on May 4, 2023, Paramount Pipeline, LLC (Paramount Pipeline) entered into an Asset Purchase and Sales Agreement with Air Products Manufacturing, LLC (“Air Products”) to purchase the pipelines assets in the City of Compton (the “City”) covered under Franchise Resolutions/Ordinance Nos. 2,223, 23,388, and 23,363 (the “Pipeline Assets”); and
WHEREAS, effective November 14, 2023, Paramount Pipeline and Air Products have finalized the transaction, which included the transfer of pipeline assets covered by the franchise resolutions to Air Products and Paramount Pipeline will continue to operate these assets; and
WHEREAS, Paramount Pipeline is requesting the City Council to consent to the proposed Assignment and Assumption Agreement in order to finalize the transaction between Paramount Pipeline and Air Products; and
WHEREAS, the Assignment and Assumption Agreement ensures that Air Products agrees to be bound by all the terms and conditions of the franchise upon the closing of the transaction with Paramount Pipeline; and WHEREAS, Section 7, Assignment of Ordinance No. 2,223, states that Paramount Petroleum Corporation shall not permit any right or privilege granted by the franchise to be exercised by another, nor shall the franchise or any interest therein or any right or privilege thereunder be in whole or in part sold, transferred, leased, assigned, or disposed of except to a corporation acquiring or owning a portion of the assets of Paramount Petroleum without the consent of the City of Compton expressed by resolution; and
WHEREAS, any such sale, lease, assignment, or other disposition of the franchise, whether requiring the consent of the City or otherwise, shall be evidenced by a duly executed instrument in writing filed in the office of the City Clerk with a copy sent to the Department of Public Works; and
WHEREAS, in order to authorize the City Manager to enter into an Assignment and Assumption Agreement between the City of Compton, Paramount Pipeline, LLC and Air Products Manufacturing, LLC, City Council’s authorization is necessary.

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

SECTION 1. That the City Council hereby approves and authorize the execution of the Assignment and Assumption Agreement among the City of Compton, Paramount Pipeline, LLC, and Air Products Manufacturing, LLC attached hereto as “Exhibit A” and incorporated herein by reference.

SECTION 2. That this Resolution shall take effect upon the adoption date of this Resolution.

Resolution No. _________

SECTION 3. That copies of this Resolution shall be filed in the offices of the City Manager, City Controller, City Clerk, City Attorney and the Public Works Engineering Department.

SECTION 4. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this _____ day of _______________, 2025.
________________________________

EMMA SHARIF

MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Satra D. Zurita, 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 __________, 2025.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCIL MEMBERS –
NOES: COUNCIL MEMBERS –
ABSTAIN: COUNCIL MEMBERS –
ABSENT: COUNCIL MEMBERS –
___________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON
1 ASSIGNMENT AND ASSUMPTION AGREEMENT

BETWEEN PARAMOUNT PIPELINE, LLC, AIR PRODUCTS MANUFACTURING

LLC AND THE CITY OF COMPTON

THIS ASSIGNMENT AND ASSUMPTION AGREEMENT BETWEEN

PARAMOUNT PIPELINE, LLC, AIR PRODUCTS MANUFACTURING LLC AND THE CITY OF COMPTON (“Agreement”) is made as of the ______ day of February, 2025, by and among Paramount Pipeline, LLC, a Delaware limited liability company (“Paramount Pipeline”), having its principal office at 255 Franklin Street, Suite 2330, Boston, Massachusetts 02110, and Air Products Manufacturing LLC, a Delaware limited liability company (“Air Products”), having its principal office at 1940 Air Products Boulevard, Allentown, Pennsylvania 18106, and the City of Compton, a municipal corporation, having its principal office at 205 South Willowbrook Avenue, Compton, CA 90220 (“Compton”).

WITNESSETH:

WHEREAS, Paramount Pipeline currently holds a franchise issued by Compton for the operation of its current pipeline system. The franchise, Ordinance No. 2,223, is attached hereto and incorporated by reference herein as “Exhibit A”; WHEREAS, on May 4, 2023, Paramount Pipeline entered into an Asset Purchase and Sale Agreement with Air Products to, among other things, purchase the pipeline assets in the Compton covered under Franchise Resolutions/Ordinance Nos. 2,223, 23,081, and 23,363 (collectively, the “Franchises”);
WHEREAS, among the assets being sold to Air Products as part of the transaction are all of Paramount Pipeline’s right, title and interest in and to the Franchises and the real estate interest or estate created therein;
WHEREAS, Paramount Pipeline requests that Compton consent to this Assignment and Assumption of the franchise granted under the Franchises; WHEREAS, Compton hereby consents to the assignment of the Franchises to Air Products and Air Products hereby agrees to assume the obligations of and be bound by all the terms and conditions of the Franchises;
WHEREAS, Paramount Pipeline has the right to continue to operate the assets governed by the Franchises; and
WHEREAS, all parties to this Agreement warrant and represent that they have full authority and ability to enter into this Agreement on behalf of the entities that they represent and by their signatures below, officers of Air Products agree for themselves to be bound by the terms and conditions of the Franchises.

NOW, THEREFORE, in consideration of the mutual promises, covenants, and conditions herein contained, the parties agree as follows:
2 A. The Recitals set forth above are true and correct and are hereby incorporated into this Agreement by reference, as though set forth in full herein.

B. Compton hereby consents to the assignment of the Franchises to Air Products and Air Products hereby agrees to assume the obligations of and be bound by all the terms and conditions of the Franchises; provided that Paramount Pipeline has the right to continue to operate the assets conveyed under the Franchises.

C. The representatives of the respective parties who are primarily responsible for the administration of this Agreement, and to whom formal notices, demands and communications shall be given, are as follows:

The principal representative of Compton shall be:

John D. Strickland, Jr.

Director of Public Works
205 South Willowbrook Avenue
Compton, California 90220
(310) 605-5505
The principal representative of the Paramount Pipeline shall be:

Joseph Ran
Vice President Business Development and Innovation
14700 Downey Avenue, Suite 100
Paramount, California 90723
(562) 531-2060
The principal representative of Air Products shall be:

Air Products Manufacturing LLC
1940 Air Products Boulevard
Allentown, Pennsylvania 18106-5500
Attention: Corporate Secretary
D. The terms, conditions, and provisions hereof shall extend to and be binding upon the parties hereto, their successors and assigns. Paramount Pipeline may not transfer or assign this Agreement without Compton’s prior written consent, which consent shall not be unreasonably withheld.
[Signatures on following pages]
[Signature Page to Assignment and Assumption Agreement] IN WITNESS THEREOF, the parties hereto have accepted, made, and executed this Agreement upon the terms, conditions, and provisions above stated, the day and year first above written.

CITY OF COMPTON:
__________________________
Willie A. Hopkins, Jr., City Manager Date
PARAMOUNT PIPELINE, LLC:
__________________________ ______________________
Joseph Ran Date
AIR PRODUCTS MANUFACTURING LLC:
________________________
Michael A. Pires Date
ATTEST:
__________________________
Satra D. Zurita, City Clerk Date
APPROVED AS TO FORM:
___________________
Eric J. Perrodin, City Attorney Date
Exhibit A
[see attached]

February 25th, 2025
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: BRYAN SPRAGG, DIRECTOR OF RECREATION
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON ACCEPTING THE ESTIMATE OF INNOVATIVE PLAYGROUNDS CO.,
INC., AUTHORIZE THE CITY MANAGER TO ENTER INTO A

CONSTRUCTION CONTRACT WITH INNOVATIVE PLAYGROUNDS
CO., INC, AND ESTABLISH A PURCHASE ORDER FOR THE TUCKER

PARK PLAYGROUND IMPROVEMENT PROJECT FOR THE AMOUNT
OF $684,704.93.

SUMMARY
The resolution authorizes the City Manager to proceed with the Tucker Park Playground Improvement Project. This involves accepting an estimate of Six Hundred Twenty-Two Thousand Four Hundred Fifty-Nine Dollars and Three Cents, ($622,459.03) from Innovative Playgrounds Co., Inc., a reputable contractor specializing in playground construction. The City Manager will enter into a construction contract with the company to provide the specified construction services.

In addition to the contract amount, a 10% contingency of Sixty-Two Thousand Two Hundred Forty-Five Dollars and Ninety Cents, ($62,245.90) is authorized. This contingency fund is set aside to cover any unforeseen costs or changes during the project, ensuring that the project can be completed without financial interruptions.

Furthermore, the resolution establishes a purchase order for Innovative Playgrounds Co., Inc. for the total amount of Six Hundred Eighty-Four Thousand Seven Hundred Four Dollars and Ninety-Three Cents, ($684,704.93). This includes both the contract amount and the contingency amount, providing a comprehensive budget framework for the project's execution.

BACKGROUND
The City of Compton’s Recreation Department provides resources which meet the needs of the community through highly accessible, enjoyable and varied opportunities for learning and recreation. More specifically, the parks within the City of Compton offer a source of recreation for the community. Tucker Park, located within the City of Compton, has a playground and gazebo area. Both the playground equipment, and gazebo, have significant damage and require replacement.

10. Staff Report
Tucker Park Playground Equipment & Gazebo Upgrade Project Innovative Playgrounds Co., Inc.

In order to replace the equipment and gazebo, the City of Compton must contract with a professional provider. The City has partnered with Innovative Playgrounds Company Inc, a Sourcewell company.

Innovative Playgrounds Company brings over 40 years of combined commercial playground sales and construction experience in the park, recreation, school, and childcare industry. They are well established and are a professional representative firm serving California for some of the most prestigious manufacturers like BCI Burke Company LLC, who is a Sourcewell member, as well as the parent company of Innovative Playgrounds Co., Inc.

STATEMENT OF ISSUE
The Parks Maintenance Department does not employ personnel with the skills or qualifications to install the playground equipment and gazebo; thus, in May 2023 staff researched Sourcewell for this project to secure a qualified contractor and selected Innovative Playgrounds Co., Inc.

Sourcewell is a State of Minnesota local government agency and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to Federal, State/Province, and Municipal Governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada. The City of Compton is a Sourcewell participating agency. As a participating agency with Sourcewell, the City of Compton does not need to complete the bidding process.

FISCAL IMPACT
The total cost for Fiscal Year 2024-2025 is $684,704.93. The funds for these expenditures are available in the following accounts:

Account Name Account Number Amount
Community Development Block
Grant (CDBG)
2800-540-M64-4266 $96,500.00
Community Development Block
Group Coronavirus (CDBG-CV)
2822-540-000-4332 $92,184.00
Measure A 2688-840-000-4266 $433,775.03
Measure A 10% Contingency 2688-840-000-4266 $62,245.90
Staff Report
Tucker Park Playground Equipment & Gazebo Upgrade Project Innovative Playgrounds Co., Inc.

As a Measure A qualifying project, the City of Compton will be reimbursed, on a perpetuitous bases, for the expenses related to the replacement of the playground equipment at Tucker Park, as claims are filed with the Los Angeles County Regional Park and Open Space District. Measure A funds will also be utilized for any unexpected costs.

In anticipation of these costs the City has included a 10% contingency of the total contract price.

RECOMMENDATION
Staff recommends the City Council adopt the attached Resolution establishing, and authorizing, the City Manager to enter into a construction contract with Innovative Playgrounds Co., Inc and to open a Purchase Order to secure playground equipment replacement services for Tucker Park within the City of Compton during the fiscal year 2024-2025.

BRYAN SPRAGG

DIRECTOR OF PARKS & RECREATION
APPROVED FOR FORWARDING:

WILLIE A HOPKINS JR.

CITY MANAGER
RESOLUTION NO. _______________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON ACCEPTING THE ESTIMATE OF INNOVATIVE PLAYGROUNDS CO., INC.,

AUTHORIZE THE CITY MANAGER TO ENTER INTO A CONSTRUCTION CONTRACT WITH INNOVATIVE PLAYGROUNDS CO., INC, AND ESTABLISH A

PURCHASE ORDER FOR THE TUCKER PARK PLAYGROUND IMPROVEMENT PROJECT FOR THE AMOUNT OF $684,704.93.

WHEREAS, the City of Compton’s Recreation Department provides resources which meet the needs of the community through highly accessible, enjoyable and varied opportunities for learning and recreation; and
WHEREAS, more specifically, the parks within the City of Compton offer a source of recreation for the community. Tucker Park, located within the City of Compton, has a playground and gazebo area. Both the playground equipment, and gazebo, have significant damage and require replacement; and WHEREAS, to replace the equipment, the City of Compton must contract with a professional provider and has partnered with Innovative Playgrounds Co., Inc, a Sourcewell company; and
WHEREAS, City Council approval is needed to secure playground and gazebo equipment replacement services for Tucker Park, located within the City of Compton; and
WHEREAS, the Department of Recreation is requesting authorization to secure playground and gazebo equipment replacement services in the amount of $622,459.03; and
WHEREAS, the total cost for Fiscal Year 2024-2025 is $684,704.93. The total amount includes the estimate of $622, 459.03, and a 10% contingency of $62,245.90 for any unexpected costs. The funds for these expenditures are available in the following accounts:

Account Name Account Number Amount
Community Development Block
Grant (CDBG)
2800-540-M64-4266 $96,500.00
Community Development Block
Group Coronavirus (CDBG-CV)
2822-540-000-4332 $92,184.00
Measure A 2688-840-000-4266 $433,775.03
Measure A 10% Contingency 2688-840-000-4266 $62,245.90
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, on the advice and approval of the City Attorney, to enter into a construction contract, in the amount of $622,459.03, for playground and gazebo equipment replacement services for Tucker Park, located within the City of Compton, with Innovative Playgrounds Co., Inc.

Section 2. That a ten percent (10%) contingency amount, ($62,245.90) is hereby authorized
Section 3. That the City Manager is authorized to open a Purchase Order with Innovative Playgrounds Co., Inc. for $684,704.93 to secure playground and gazebo equipment replacement services for Tucker Park, located within the City of Compton.

Section 4. The funds for these expenditures are available in the following accounts:

Account Name Account Number Amount
Community Development Block
Grant (CDBG)
2800-540-M64-4266 $96,500.00
Community Development Block
Group Coronavirus (CDBG-CV)
2822-540-000-4332 $92,184.00
Measure A 2688-840-000-4266 $433,775.03
Measure A 10% Contingency 2688-840-000-4266 $62,245.90
As a Measure A qualifying project, the City of Compton will be reimbursed, on a perpetuitous bases, for the expenses related to playground equipment replacement services, as claims are filed with the Los Angeles County Regional Park and Open Space District. Measure A funds will also be utilized for any unexpected costs. In anticipation of these costs the City has included a 10% contingency of the total contract price.

Section 5. That a copy of this Resolution shall be filed in the offices of the City Clerk, City Attorney, City Manager, Public Works Street Maintenance, Recreation and the City Controller.

Section 6. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this ________day of __________________, 2025
Resolution No.__________

_______________________________

EMMA SHARIF

MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA )

COUNTY OF LOS ANGELES ) SS

CITY OF COMPTON )
I, Satra D. Zurita, 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 Clerk at a regular meeting thereof held on this _______day of ____________, 2025.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCILMEMBERSNOES: COUNCILMEMBERSABSTAIN: COUNCILMEMBERSABSENT: COUNCILMEMBERS- ___________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON

CONSTRUCTION SERVICES AGREEMENT BETWEEN THE CITY OF COMPTON AND INNOVATIVE PLAYGROUND CO., INC. REGARDING THE REPLACEMENT OF

THE PLAYGROUND EQUIPMENT & GAZEBO (HEXAGONAL SHELTER) AT

TUCKER PARK
This AGREEMENT is made 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 INNOVATIVE PLAYGROUND CO., INC. (hereinafter referred to as “CONTRACTOR”) located at 12407 E. Slauson Ave., #D, Whittier, CA 90606, pursuant to Resolution No. XX,XXX, adopted by the City Council on Month Date, 2025.

WITNESSETH:

That the City and Contractor, for the consideration, terms and conditions herein described, mutually agree as follows:

1. Services to be performed by Contractor: Contractor shall perform, in a professional manner, everything required to be performed, shall provide and furnish all the labor, materials, necessary tools, expendable equipment and all utility and transportation services for providing construction services for the replacement of the existing playground equipment and gazebo (hexagonal shelter) at Tucker Park in the City of Compton. Specifically, Contractor shall provide and perform the following services at all parks aforementioned:

TUCKER PARK SCOPE OF SERVICES
 Demo and dispose of existing play equipment
 Demo and dispose of existing Pour In Place (PIP) rubber surfacing, remove existing base
 Demo and dispose of woodchips
 Construct concrete curb
 Install aggregate base to prepare for rubber surfacing  Supply and install Burke Play Equipment which includes Nucleus Evolution Tower Series Unit for ages 5 to 12, Nucleus Series Unit for ages 2 to 5, Burke 5 OD double bay arch frame swing with seatbelts, ADA Freedom Seat, Konnection Parent/Child Swing and PVC chains, Kidforce Spinner, ADA Accessible Activity Panel Clusters, Traditional Series Benches with Back, PVC Litter Container, and Freestanding Welcome/Safety Age Sign  Provide free Maintenance Kit
 Install Burke Play Equipment
 Supply Pour In Place surfacing
 Install Pour In Place surfacing
 Demo and dispose of existing wood picnic shelter
 Demo and dispose of existing concrete and pavers
 Construct concrete slab with dowels to existing sidewalk Services Agreement – Innovative Playgrounds Co., Inc
Playground and Gazebo (Hexagonal Shelter) Replacement Project at Tucker Park, Resolution No. XX,XXX

 Supply Steelworx Hexagon Shelter with Vented Top
 Install 20 Foot Steelworx Hexagon Shelter into dirt, excludes all necessary electrical and conduit work
 Supply Burke Site Amenities: (3) Traditional Picnic tables, (1) ADA Picnic Table, and (1) Stat Flat Cover
 Install Burke Site Amenities: (3) Traditional Picnic tables, (1) ADA Picnic Table, and (1) Stat Flat Cover
 Contractor to provide temporary fencing during installation of play equipment, play area surfacing, and picnic shelter
 City is responsible for re-routing any irrigation lines  City to supply evening security
Contractor agrees to perform all the said work and furnish all the said materials at its own cost and expense, as are necessary to complete in a good worker-like and substantial manner and to the satisfaction of the City. Contractor shall bear all costs associated with this work, including, but not limited to all professional, technical, clerical services, materials, tools, equipment, transportation, telephone, etc., used by Contractor in connection with this work.

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.

1.1 Key Personnel.
a) Contractor’s Representative. Contractor hereby designates Alvino Larios, Sales Representative as Contractor’s Representative, who shall be deemed to be Contractor’s agent with express authority to bind Contractor with respect to all matters requiring Contractor’s approval or authorization.
b) City’s Representative. City hereby designates Bryan Spragg, Director of the Parks and Recreation Department or his/her designated representative as City’s Representative for this Agreement.

2. Term of Agreement. 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 from March 2025 to June 2025; unless this Agreement is terminated as provided herein.

Services Agreement – Innovative Playgrounds Co., Inc
Playground and Gazebo (Hexagonal Shelter) Replacement Project at Tucker Park, Resolution No. XX,XXX

Contractor will generally adhere to the schedule set forth within Contractor’s Proposal 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 Compton’s project schedule and agrees to put forth its best professional efforts to perform the services in a manner consistent with the 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. Contractor agrees to provide all professional services at the following rate: $622,459.03 total compensation for services rendered. The method of payment for these services will be billed on an invoice basis, paid at the completion of each task/phase of the project. The total price paid the Contractor will include compensation for all work, including travel, materials, supplies, vendor services, expenses and subcontracted work. The fees charged by the Contractor shall include compensation for all work and labor, 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 by written approval by the City and Contractor. Progress payments may be made in arrears for services provided by the Contractor. If Contractor fails to complete the work according to schedule and as agreed, 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 invoice(s) for all services completed. Invoice(s) shall be submitted no later than 45 calendar days after the performance of work for which the Contractor is billing. Invoice(s) shall be delivered or mailed to the City Controller Department at the following address: City of Compton, 205 South Willowbrook Avenue, Compton, California 90220.

The Contractor is required to comply with all federal, state and local laws and ordinances applicable to the work.

For the work agreed to be performed pursuant to this Agreement, it is understood between the parties that the maximum compensation payable to the Contractor for any and all services rendered during the term of this Agreement is limited to Six Hundred Twenty-Two Thousand Four Hundred Fifty-Nine Dollars and Three Cents, ($622,459.03).

Services Agreement – Innovative Playgrounds Co., Inc
Playground and Gazebo (Hexagonal Shelter) Replacement Project at Tucker Park, Resolution No. XX,XXX

In the event of termination, the Contractor shall be entitled to non-disputed compensation for the reasonable value of services performed to the effective date of 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 and material associated with the performance of this Agreement.

4. Safety.

4.1 Contractor shall have overall responsibility for safety precautions and programs in the performance of the services.

4.2 Contractor shall seek to avoid injury, loss or damage to persons or property by taking reasonable steps to protect:
a) Employees and all other persons at the location where services are rendered (“Site”); and
b) Materials and equipment stored on the Site or off
the Site at locations for use in performance of the work; and c) The assigned project Site and all property located at the Site, whether or not said property or structures are part of the project or involved in the work.

4.3 Contractor shall designate an individual at the Site of the assigned project in the employ of Contractor who shall act as Contractor’s designated safety representative with a duty to prevent accidents.

4.4 Losses not insured under property insurance which may arise from the performance of the work, to the extent of the negligence attributed to such acts or omissions of Contractor or anyone for whose acts Contractor may be liable, shall be promptly remedied by Contractor at Contractor’s cost and without reimbursement by City as a cost of work, or in any other manner.

4.5 If City deems any part of the work or Site unsafe, City may require Contractor, without assuming responsibility for Contractor’s safety program, to immediately stop performance of the work or take corrective measures. Neither City’s order nor Contractor’s action in response thereto shall be the basis for adjustment in the contract price or contract time.

4.6 Contractor shall immediately notify the City of any illegal dumping of hazardous materials and other emergency public safety issues observed at the Sites were services are performed.

Services Agreement – Innovative Playgrounds Co., Inc
Playground and Gazebo (Hexagonal Shelter) Replacement Project at Tucker Park, Resolution No. XX,XXX

5. Indemnity. Contractor shall indemnify and save harmless the City, its officials, officers, employees, agents and volunteers (collectively hereafter 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 defend, indemnify and save the City from any and all liability or expense, including defense costs and legal fees, and claims, demands, suits, actions or proceedings of any kind or nature, including Worker’s Compensation claims, of or by anyone whomsoever in any way resulting from or arising out of the negligent or intentional acts or omissions of the Contractor in the performance of this Contract, including operations of subcontractors and acts or omissions of employers or agents of the Contractor or its subcontractors.

This indemnification and hold harmless obligation does not extend to claims arising out of the sole negligence or willful misconduct of the City.

6. Insurance. The Contractor shall not commence work under this Contract until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has secured all insurance required under this section.

As a condition precedent to the effectiveness of this Contract for work to be performed hereunder and without limiting the Contractor’s indemnification of the City, Contractor shall provide and maintain at its own expense during the term of this Agreement the following program(s) of insurance covering its operations hereunder.

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. Contractor agrees to suspend and cease all operations hereunder during such period of time as the required insurance coverage is not in effect and evidence of insurance has not been furnished to the City.

6.1 Minimum Scope of Insurance. Insurance coverage specified herein constitutes the minimum requirements and said requirements shall in no way lessen or limit the liability of the Contractor under the terms of the Agreement. Contractor shall procure and maintain, at its own costs and expense, any additional kinds and amounts of insurance that, in its own judgment, may be necessary for its proper protection of the work.

All insurance required hereunder shall be primary with respect to any insurance maintained by the City and shall not call on the City’s program for contributions.

Program(s) of insurance shall include:
a) Commercial General Liability. Contractor shall provide and maintain at its own expense during the term of this Agreement a policy of Commercial General Liability Insurance, inclusive of personal injury liability and broad form property damage coverage, in an amount not less than Two Million Dollars ($2,000,000.00) per occurrence. The coverage shall be written on an occurrence basis.

Claims made coverage is not acceptable.

Services Agreement – Innovative Playgrounds Co., Inc
Playground and Gazebo (Hexagonal Shelter) Replacement Project at Tucker Park, Resolution No. XX,XXX

b) Automobile Liability. A program of insurance with a limit of liability of not less than One Million Dollars ($1,000,000.00) for each accident. Such insurance shall include coverage for all “owned”, “hired” and “non-owned” vehicles, or coverage for “any auto”. c) Workers' Compensation. Workers' Compensation Insurance, as required by the State of California and Employer's Liability Insurance, with a limit of not less than One Million Dollars ($1,000,000.00) per accident for bodily injury and disease. Workers' Compensation and Employer's Liability insurance may not be required if Contractor has no employees and provides, to City's satisfaction, a declaration stating this.

6.2 Endorsements. Required insurance policies shall not be in compliance if they include any limiting provision or endorsement that has not been submitted to the City for approval.
a) The policy of insurance required by Section 6.1.a (Commercial General Liability) shall be endorsed to provide the following:
(1) Additional Insured: The City, its officials, officers, employees, agents, and volunteers shall be named as “additional
insured” with regard to liability and defense of suits or claims arising out of the performance of the Agreement.
(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City, except ten (10) days written notice shall be provided for non-payment of premium.
b) The policy of insurance required by Section 6.1.b (Automobile Liability) shall be endorsed to provide the following:
(1) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City, except ten (10) days written notice shall be provided for non-payment of premium.
c) The policy or policies of insurance required by Section 6.1.c (Workers' Compensation) shall be endorsed to provide the following:
(1) Waiver of Subrogation: A waiver of subrogation stating that the insurer waives all rights of subrogation against the indemnified parties.

Services Agreement – Innovative Playgrounds Co., Inc
Playground and Gazebo (Hexagonal Shelter) Replacement Project at Tucker Park, Resolution No. XX,XXX

(2) Cancellation: Required insurance policies shall not be canceled or the coverage reduced until a thirty (30) day written notice of cancellation has been served upon the City, except ten (10) days written notice shall be provided for non-payment of premium.

6.3 Waiver of Subrogation. Required insurance coverages shall not prohibit Contractor from waiving the right of subrogation prior to a loss. Contractor shall waive all subrogation rights against the indemnified parties. Policies shall contain or be endorsed to contain such provisions.

6.4 Deductible. Any deductible or self-insured retention must be approved in writing by the City and shall protect the indemnified parties in the same manner and to the same extent as they would have been protected had the policy or policies not contained a deductible or self-insured retention.

6.5 Evidence of Insurance. The Contractor, concurrently with the execution of the Contract, and as a condition precedent to the effectiveness thereof, shall deliver certified copies of the required policies to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf. At least fifteen (15) days prior to the expiration of any such policy, evidence of insurance showing that such insurance coverage has been renewed or extended shall be filed with the City. If such coverage is cancelled or reduced, Contractor shall, within ten (10) days after receipt of written notice of such cancellation or reduction of coverage, file with the City evidence of insurance showing that the required insurance has been reinstated or has been provided through another insurance company or companies.

6.6 Acceptability of Insurers. Each such policy shall be from a company or companies with a current A.M. Best's rating of no less than A:VII and authorized to do business in the State of California, or otherwise allowed to place insurance through surplus line brokers under applicable provisions of the California Insurance Code or any federal law.

6.7 Insurance for Subcontractors. All subcontractors shall be included as additional insureds under the Contractor's policies, or the Contractor shall be responsible for causing subcontractors to purchase the appropriate insurance in compliance with the terms of these Insurance Requirements, including adding the City as an “additional insured” to the subcontractor's policies.

Services Agreement – Innovative Playgrounds Co., Inc
Playground and Gazebo (Hexagonal Shelter) Replacement Project at Tucker Park, Resolution No. XX,XXX

7. Nondiscriminatory Employment Practices. During the performance of this Contract, 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. The 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. Such action 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 and applicants for employment, notices setting forth provisions of this nondiscrimination clause.

In the event of the Contractor’s noncompliance with the nondiscrimination clauses of this Contract, this Contract may be canceled, terminated or suspended in whole or in part.

8. Successor and Assigns. City and the Contractor each binds themselves, their partners, successors, assigns and legal representatives to the other party hereto and to partners, successors, assigns and legal representatives of such other party in respect to all covenants, agreements and obligations contained in the Contract Documents. Neither party to the Agreement shall assign the Contract or sublet it in whole or part without the written consent of the other, nor shall the Contractor assign any monies due or to become due to it hereunder, without the previous written consent of the City. Any attempted assignment of this Contract without the written consent of both parties is void.

9. 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. 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 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.

Services Agreement – Innovative Playgrounds Co., Inc
Playground and Gazebo (Hexagonal Shelter) Replacement Project at Tucker Park, Resolution No. XX,XXX

10. Subcontracting. Except as may be 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.

11. Other Contractors.The City reserves the right to employ other Contractors in connection with the services.

12. Permits and Licenses. Contractor, at its sole expense, shall obtain and maintain during the term of this Agreement, all appropriate business and professional permits, licenses and certificates that may be required in connection with the performance of services by Contractor.

Prior to, or at the time of execution of this Agreement, the Contractor shall purchase a business license permit in conformance with Section 9-1.2 of the Compton Municipal Code.

13. Termination. Notwithstanding any other provisions of this Agreement, this Agreement may be terminated as follows:

13.1 If the Contractor becomes insolvent; that is, it has ceased to pay its debts in the ordinary course of business or cannot pay its debts as they become due, whether or not it has committed an act of bankruptcy, and whether or not insolvent within the meaning of the federal Bankruptcy law, then, the City may, without prejudice to any other right or remedy and after giving the Contractor five (5) days written notice, terminate this Agreement.

13.2 If the Contractor persistently or repeatedly refuses or fails, except in cases for which extensions of time are provided, to supply enough properly skilled workers, property or material, or if he fails to make prompt payment to subcontractors or for materials or labor, or he persistently disregards laws, ordinances, rules, regulations or orders of any public authority having jurisdiction, then, the City may, without prejudice to any other right or remedy and after giving the Contractor five (5) days written notice, terminate this Agreement.

Services Agreement – Innovative Playgrounds Co., Inc
Playground and Gazebo (Hexagonal Shelter) Replacement Project at Tucker Park, Resolution No. XX,XXX

13.3 If the Contractor fails to perform or breaches any material obligation under this Agreement, then, the City may, without prejudice to any other right or remedy and after giving the Contractor five (5) days written notice, terminate this Agreement.

If the City gives notice of termination, Contractor shall cease immediately all work in progress unless otherwise directed in writing by the City. Upon termination, Contractor shall furnish to the City a final invoice for work performed.

14. 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 any of Contractor’s subcontractors), 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 Contract upon any event that renders performance impossible. In such case, City shall be responsible for payment of all expenses incurred to the point at which this Contract is terminated.

15. Waivers. A waiver by either party to this Agreement of any breach of any term, covenant or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character.

16. Amendments. This Agreement may be modified or amended only by 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.

17. Notice. All notices, demands or requests to be given under this Agreement shall be given in writing and conclusively shall be deemed received when: (a) delivered personally, or (b) on the fifth day after the deposit thereof in the United States mail, postage prepaid and addressed as hereinafter provided, or (c) one business day after sent by facsimile transmission.

Contractor: Innovative Playgrounds Co., Inc.
12407 E. Slauson Ave., Unit D
Whittier, CA 90606
(562) 693-5200
Services Agreement – Innovative Playgrounds Co., Inc
Playground and Gazebo (Hexagonal Shelter) Replacement Project at Tucker Park, Resolution No. XX,XXX

City: City of Compton
205 South Willowbrook Avenue
Compton, CA 90220
Attn: Bryan Spragg, Director of Recreation
(310) 605-3060
With copy to: City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: City Manager

18. Contractor’s Books and Records. Contractor shall maintain any and all ledgers, books of account, invoices, vouchers, canceled checks, and other records or documents evidencing or relating to work, services, expenditures and disbursements charges to the City for the period and to the extent required by laws relating to audits of public agencies and their expenditures.

Contractor shall maintain all documents and records which demonstrate performance under this Agreement for the period and to the extent required by laws relating to audits of public agencies and their expenditures.

Any records or documents required to be maintained pursuant to this Agreement shall be made available for inspection or audit, at any time during regular business hours, upon written request by the City or a designated representative. Copies of such documents shall be provided to the City, at its expenses, for inspection when it is practical to do so. Otherwise, unless an alternative is mutually agreed upon, the records shall be available at Contractor’s address indicated for receipt of notices in this Agreement.

19. Examination and Audit. This Contract shall be subject to examination and audit of the City, State Auditor of the State of California and/or any duly authorized representative of the federal government, at the request of the City, or as part of any audit of the City, for a period of three (3) years, or longer if required by law, after final payment under this Agreement.

20. Extent of Agreement. This Agreement and any attachments hereto, constitute the entire understanding and agreement of the parties. This Agreement integrates all of the terms and conditions mentioned herein or incidental hereto and supersedes all negotiations or previous agreements between the parties with respect to all and any part of the subject matter hereof. Neither party has been induced to make or enter into this Agreement by reason of promise, agreement, representation, statement or warranty other than as herein contained. Nothing in this Agreement shall create any contractual relations between any subcontractor and the City.

Services Agreement – Innovative Playgrounds Co., Inc
Playground and Gazebo (Hexagonal Shelter) Replacement Project at Tucker Park, Resolution No. XX,XXX

21. Governing Law, Jurisdiction and Venue. This Agreement shall be governed by and construed under the laws of the State of California. In the event of litigation between the parties, venue shall lie exclusively 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.

Should any part of this Agreement be declared by a final decision by a court or tribunal of competent jurisdiction to be unconstitutional, invalid, or beyond the authority of either party to enter into or carry out, such decision shall not affect the validity of the remainder of this Agreement, which shall continue in full force and effect, provided that the remainder of this Agreement, absent the unexcised portion, can be reasonably interpreted to give effect to the intentions of the parties.

22. Waiver of Jury Trial. Contractor voluntarily waives its right to a jury trial of any cause of action, claim, counter-claim or cross-complaint in any action, proceeding or hearing on any matter whatsoever arising out of, or in any way connected with, this Agreement, the relationship between City and Contractor, Contractor’s performance on each project, or the enforcement of any remedy under any law, statute or regulation now or hereafter in effect. Contractor shall include this provision for waiver of jury trial right in its contracts with its subcontractors who provide work on any assigned projects, waiving the right of a jury trial in any action involving City as a party, whether by joinder, consolidation, counter-claim, cross-complaint or otherwise.

23. 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. Contractor shall be responsible for paying all federal and state income withholding taxes for all earning under this Agreement.

24. 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.

Services Agreement – Innovative Playgrounds Co., Inc
Playground and Gazebo (Hexagonal Shelter) Replacement Project at Tucker Park, Resolution No. XX,XXX

Innovative Playgrounds Co., Inc.

By: ________________________________ Dated:______________ Alvino Larios, Sales Representative
City of Compton
By: ________________________________ Dated:_____________ Bryan Spragg, Director of Parks &
Recreation
Approved by:

By: ________________________________ Dated:_____________ Willie A. Hopkins Jr., City Manager
Approved as to form:

By: ________________________________ Dated:_____________ Eric Perrodin, City Attorney
ATTEST:

By: ________________________________ Dated:_____________ Satra D. Zurita, City Clerk
Tucker Park
650 W Laurel St | Compton, CA 90220-3630
August 19, 2024
Bryan Spragg
City of Compton
205 S Willowbrook Ave
Compton, CA 90220
Phone: (310) 605-3060
Dear Bryan Spragg:

Innovative Playgrounds is delighted to provide City of Compton with this playground equipment proposal.

This design was developed with your specific needs in mind, and we look forward to discussing this project further with you to ensure your complete satisfaction. Innovative Playgrounds is confident that this proposal will satisfy City of Compton’s functional, environmental, and safety requirements -- and most importantly -- bring joy and excitement to the children and families directly benefiting from your new playground.

You have our personal commitment to support this project and your organization in every manner possible, and we look forward to developing a long-standing relationship with City of Compton. We appreciate your consideration and value this opportunity to earn your business.

Sincerely,
Alvino Larios
Sales Representative
Innovative Playgrounds
12407 E Slauson Ave #D
Whittier, CA 90606
www.www.innovplay.com
www.bciburke.com
Phone: 562-693-5200
Fax: 562-693-5199
[email protected]
Proposal 513-189783-1 | 8/19/2024
Proud Representative of
Our Business Philosophy:

Our team at Innovative Playgrounds Company brings over 40 years of combined commercial playground sales and construction experience in the park, recreation, school, and childcare industry. We are a well established and professional representative firm serving California for some of the most prestigious manufacturers around the country. As a full turn-key service company, we are able to offer FREE site assessments, design consultations, funding resources, and project management for playground and fitness equipment, safety surfacing, shade structures, sport and site amenities. Innovative Playgrounds is not about selling you playground equipment today, but developing a lasting partnership for tomorrow. We are committed to making a difference in the lives of children by providing safe, fun, and quality playground equipment. We build on providing first class service by establishing relationships that demonstrate what we believe in: customer trust. Most of all, we are dedicated to changing every community we are involved with by impacting the development of our children and their future.

We Believe in Generations of Play!
Innovative Playgrounds Added-Values
 Full turn-key service company (site assessments, designs, funding resources, and project management for playground/fitness equipment, safety surfacing, shade structures, and sport/site amenities)  2D drawings, color and custom 3-Ds and plan views provided to you at no cost  Free Maintenance and NPPS Supervision Kits provided with every playground purchase  Seminars offered on playground safety
 Represent only nationally recognized manufacturers
 BCI Burke, our flagship playground equipment manufacturer has the highest quality products, the longest and strongest non-prorated WARRANTY in the industry
o Established in 1920 BCI Burke is the oldest playground equipment manufacturer in the country o Founding and active member of IPEMA (International Playground Equipment Manufacturers Association) o Burke’s track record for shipments averages well over 95% complete, correct and on time since 2002 o Industry leading order turn-around time.
 Solid relationship with local certified playground equipment installers  With Burke, we offer California Multiple Award Schedule (CMAS) Contracts and General Services Administration (GSA) Contracts as well as other nationally recognized purchasing contracts for qualified customers such as Omina Partners, Sourcewell, Equalis, and HGACBuy . Contact us to learn more.  Offer Exclusive Burke “Funds for Fun” fundraising assistance program, a “Grant Resource Center”, finance options, and assistance with KaBOOM!
 Products meet or exceed Consumer Product Safety Commission (CPSC) & ASTM standards  BCI Burke equipment is International Playgrounds Equipment Manufacturers Association (IPEMA) Certified as shown on IPEMA’s web site (ipema.org)
 All play equipment is designed to comply with Americans with Disabilities Act Accessibility Guidelines (ADAAG)  Service and Maintenance Warranties available
 Member of California Park and Recreation Society and Southern California Municipal Athletic Federation (SCMAF) Contact Us
1-877-732-5200
Innovplay.com

Tucker Park

DESIGN SUMMARY
Innovative Playgrounds is very pleased to present this Proposal for consideration for the Tucker Park located in Compton. BCI Burke Company, LLC has been providing recreational playground equipment for over 100 years and has developed the right mix of world-class capabilities to meet the initial and continuing needs of City of Compton. We believe our proposal will meet or exceed your project’s requirements and will deliver the greatest value to you.

The following is a summary of some of the key elements of our Proposal:
• Project Name: Tucker Park
• Project Number: 513-189783-1
• User Capacity: 187
• Age Groups: 5 to 12, 2 to 5
• Dimensions: 90' 11"x71' 10"
• Designer Name: Pa Der Vang
Innovative Playgrounds has developed a custom playground configuration based on the requirements as they have been presented for the Tucker Park playground project. Our custom design will provide a safe and affordable playground environment that is aesthetically pleasing, full of fun for all users and uniquely satisfies your specific requirements. In addition, proposal # 513-189783-1 has been designed with a focus on safety, and is fully compliant with ASTM F1487 and CPSC playground safety standards.

We invite you to review this proposal for the Tucker Park playground project and to contact us with any questions that you may have.

Thank you in advance for giving us the opportunity to make this project a success.

Proposal 513-189783-1 | 8/19/2024

PLAYGROUND ACCESSIBILITY (PROVIDED/REQUIRED)

TYPES OF GROUND
EVENTS
7/3
GROUND
EVENTS
18/6

RAMP ACCESSIBLE
EVENTS
0/0

TRANSFER

ACCESSIBLE EVENTS
14/9

ELEVATED
EVENTS
18 TOTAL
EVENTS
36 ESTIMATE VALID FOR 30 DAYS
Acceptance of estimate: the above prices, specifications and conditions are satisfactory and are hereby accepted. Any alterations or deviations from the above will be accepted only upon written notice and will become an extra charge over and above the estimate period. 50% deposit due with order, unless net 30 terms have been approved.

Innovative Playgrounds Co., Inc.
12407 E. Slauson Ave. Unit D
Whittier, CA 90606
562-693-5200
www.innovplay.com
Estimate

ADDRESS
City of Compton
205 S. Willowbrook Ave.

Compton, CA 90220
SOURCEWELL ID# 21015

SHIP TO
Tucker Park
650 W. Laurel St.

Compton, CA 90220
ESTIMATE # DATE
10806 02/24/2025
TRACKING NO. SALES REP
New Play Unit_Opt. 2 Alvino

ACTIVITY DESCRIPTION AMOUNT
***Play Area***
DEMO-PLAY Demo and dispose of existing play equipment. 13,873.24 DEMO-PIP Demo and dispose of approx. (938) sq. ft. of existing PIP rubber surfacing at a 3.5" depth. Remove (938) sq. ft. of existing base at 8.5".
9,181.83
DEMO-EWF Demo and dispose of approx. (3074) Sq. Ft. of woodchips at a 12” depth. 22,427.21 PREP WORK Construct (205) LF of concrete curb 8” x 12”. 13,339.44 PREP-BASE Install (4,012) Sq. Ft. of aggregate base in sections of 7"-10" depth to prep for rubber surfacing. 19,532.23 PLAY UNIT Supply Burke Play Equipment as per drawing #513-190555-2, includes (1) "Nucleus Evolution Tower Series" Unit for 5-12 age group with 5" OD aluminum posts, Shadeplay Single Post Hypar Integrated Shade, (1) "Nucleus Series" Unit for 2-5 age group with 5" OD aluminum posts, Ara Square Integrated Shade Canopy, (1) Burke 5" OD double bay arch frame swing at 8' toprail with (2) Belt Seats, (1) ADA Freedom Seat, (1) Konnection Parent/Child Swing, and PVC chains, (1) Kidforce Spinner, (4) ADA Accessible Activity Panel Clusters, (4) 6' Traditional Series Benches w/ Back, (2) PVC Litter Container w/ Flat Lid, and (2) Freestanding Welcome/Safety Age Sign.

LIST PRICE: $193,545.00
"SOURCEWELL CUSTOMER DISCOUNT" APPLIED ($29,031.75)
(Burke Sourcewell Contract # 010521-BUR)
164,513.25T
KIT-2 FREE Maintenance Kit (includes installation booklet, graffiti remover, tools and touch up Paint). LIST PRICE $250.00

0.00T
INSTALLATION-1 Install Burke Play Equipment as per drawing #513-190555-2 into base. 84,055.56 PIP-1 Supply approx. (4,012) Sq. Ft. of 2"-5" thick Pour in Place surfacing with 1/2" EPDM cap. PIP to be 33% color, 33% color (to be selected from manufacturer standard colors at time of order placement) and 33% black, with aliphatic binder.
61,775.01T
INSTALL-PIP Install approx. (4,012) Sq. Ft. of 2"-5" thick Pour in Place surfacing with 1/2" EPDM cap and aliphatic binder. 41,150.29 ***Picnic Shelter Area***
DEMO Demo and dispose of existing wood picnic shelter. (Open Market) 10,563.38 DEMO Demo and dispose of approx. (1335) sq. ft. of existing concrete and pavers. (Open Market) 8,461.27 PREP WORK Construct (1,335) Sq. Ft. of concrete slab with dowels to existing sidewalk. (Open Market) 26,605.99 SHELTER-1 Supply (1) 20' Steelworx Hexagon Shelter w/ Vented Top, 7'6" Eave Height, Framework, w/ 24 ga MultiRib 27,242.65T ESTIMATE VALID FOR 30 DAYS
Acceptance of estimate: the above prices, specifications and conditions are satisfactory and are hereby accepted. Any alterations or deviations from the above will be accepted only upon written notice and will become an extra charge over and above the estimate period. 50% deposit due with order, unless net 30 terms have been approved.

ACTIVITY DESCRIPTION AMOUNT
Metal Roofing 4:12 Roof Pitch, w/ Polyester Powder Coated Framework, w/ 24 ga MultiRib Metal Roofing, Includes (1) electrical access hole. (Open Market)
LIST PRICE: $28,676.47
IN KIND CUSTOMER DISCOUNT APPLIED: ($1,433.82)
ENGINEERING Engineering Fee for Shelter. (Open Market) 1,164.38 INSTALLATION-1 Install 20' Steelworx Hexagon Shelter into dirt, excludes all necessary electrical and conduit work. (Open Market)
57,394.37
PLAY EQUIPMENT Supply Burke Site Amenities to include:
(3) 580-1013 8' PVC Traditional Picnic Table, Portable
LIST PRICE: $5,373.00
"SOURCEWELL CUSTOMER DISCOUNT" APPLIED ($805.95)
(Burke Sourcewell Contract # 010521-BUR)
4,567.05T
PLAY EQUIPMENT Supply Burke Site Amenities to include:
(1) 580-0226 8' PVC Traditional ADA Picnic Table, One End LIST PRICE: $1,679.00
"SOURCEWELL CUSTOMER DISCOUNT" APPLIED ($251.85)
(Burke Sourcewell Contract # 010521-BUR)
1,427.15T
PLAY EQUIPMENT Supply Burke Site Amenities to include:
(1) 580-0184 PVC LC Stat Flat Cover
LIST PRICE: $784.00
"SOURCEWELL CUSTOMER DISCOUNT" APPLIED ($117.60)
(Burke Sourcewell Contract # 010521-BUR)
666.40T
INSTALLATION-1 Install Burke Play Equipment (3) Picnic Tables, (1) ADA Table and (1) Trash Receptacle into concrete. 3,169.01 TEMP. FENCING Prep-Provide temporary fencing during installation of play equipment and play area surfacing, and picnic shelter.
3,515.49
FREIGHT Burke Shipping charge to COMPTON, CA. Freight price valid for 30 days only, due to fluctuating fuel pricing.

Please requote after 03/20/25.
9,700.00
FREIGHT PIP and Shelter Shipping charge to COMPTON, CA. Freight price valid for 30 days only, due to fluctuating fuel pricing. Please requote after 03/20/25.
11,464.20
INCLUDES Pricing includes prevailing wage rates. 0.00T
EXCLUDES Pricing excludes regular wage rates, permits, bonds, any border material and/or concrete curbing, fencing (permanent), special installation due to unforeseen site conditions and any additional site work/preparation/amenities.

0.00T
SPECIAL NOTE:

City responsible for re-routing any irrigation lines. City to supply evening security.

PAYMENT TERMS:

NET 30 ON PO'S FROM CITIES, SCHOOL DISTRICTS, STATE, OR FEDERAL ENTITIES.

SUBTOTAL 595,789.40
TAX (10.25%) 26,669.63
TOTAL $622,459.03
Accepted By Accepted Date

MARCH 11, 2025
TO: HONORABLE MAYOR AND COUNCIL MEMBERS
FROM: NEBRASKA JONES, DIRECTOR

GENERAL SERVICES DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COMPTON AUTHORIZING THE CITY MANAGER TO ENTER

INTO A LEASE AGREEMENT BETWEEN THE CITY OF

COMPTON AND VOLUNTEERS OF AMERICA OF LOS ANGELES
FOR INDOOR AND OUTDOOR SPACES AT 600 NORTH
ALAMEDA STREET FOR A HEAD START PROGRAM.

SUMMARY
City Council will consider a request from Volunteers of America of Los Angeles (“Volunteers of America of Los Angles” or “VOALA”) to enter into a three (3) year (March 1, 2025 through April 30, 2028) lease agreement, for use of approximately 4710 square feet of dedicated indoor space and approximately 4888 square feet of dedicated outdoor space at 600 Alameda, Compton, commonly known as the “Neighborhood Center” facility (“Facility”).

BACKGROUND
The City of Compton owns certain real property located at 600 North Alameda Street, commonly known as the “Neighborhood Center” facility. This property is used as a “shared occupancy” facility, offering indoor and outside space for leasing to outside agencies, organizations, and individuals. Current tenants at this location include Shields for Families and Volunteers for Families.

Pursuant to guidance of the City Council, in November 2012, the City Manager implemented a City-wide leasing policy which mandates that City-owned facilities and/or property shall not be leased without first obtaining proper authorization from the City Council (i.e. an adopted resolution) and execution of a written lease agreement [City of Compton Standard Operating Manual, Policy 4.17(A)]. In addition to other matters, the Policy specifies that lease rates shall be based on the square footage of the area(s) subject to the exclusive use/occupation of the Lessee and that the standard leasing rate for indoor floor space in a City-owned facility shall be at least One Dollar ($1.00) per square foot. The standard leasing rate for City-owned outdoor space or vacant property shall be at least Fifty Cents ($0.50) per square foot.

11. Staff Report – Resolution Authorize to enter in a 3 Year Lease Agreement with Volunteers of America (Head Start Space) Neighborhood Center Facility – 600 North Alameda
March 11, 2025 Page 2
In addition to the base minimum rental rate of One Dollar ($1.00) per square foot for indoor space and Fifty Cents ($0.50) per square foot for outdoor space, proposed lease agreements are to address the costs incurred by the City for utilities, maintenance and repairs, custodial and general security. At the 600 North Alameda Street the “Neighborhood Center” location, staff has identified that cost to be Two Dollars and Two cents ($2.02) per square foot.

On June 20, 2017, the Council approved Resolution No. 24,590 which authorized the City Manager to enter into a Three (3) year (i.e. July 1, 2017 through June 30, 2020); lease agreement with Volunteers of America for exclusive use of approximately 2,057 square feet of indoor space located at the Neighborhood Center building at the monthly rental rate of One Dollar ($1.00) per square foot of Two Thousand, Fifty-Seven Dollars ($2,057.00) per month, waiving the City’s cost recovery.

On February 27, 2018, the Council approved Resolution No. 24,744 which authorized the City Manager to enter into a Three (3) years (i.e. July 1, 2017 through June 30, 2020); lease agreement with Volunteers of America for exclusive use of approximately 922 square feet of additional indoor space located at the Neighborhood Center building at the monthly rental rate of One Dollar ($1.00) per square foot for a total of Two Thousand, Nine Hundred and Seventy-Nine Dollars ($2,979) per mouth, waiving the City’s cost recovery.

STATEMENT OF THE ISSUE
Volunteers of America of Los Angeles are a non-profit human services organization committed to serving people in need, strengthening families, and building communities. VOALA continues to this day as a faith-based organization with a broad scope of support and services for all regardless of race, gender, age or religious preference. Now in their second century of service, Volunteers of America is one of the nation’s largest and most comprehensive human services organizations, touching the lives of more than 2 million people each year in hundreds of communities across the United States.

Volunteers of America Los Angeles, the Administration for Children and Families (ACF) provides programs the opportunity for supplemental funds to extend the duration of services to both Head Start and EHS Programs. The purpose is to increase the total annual hours of high-quality early education services offered to children enrolled in Head Start and EHS.

Staff Report – Resolution Authorize to enter in a 3 Year Lease Agreement with Volunteers of America (Head Start Space) Neighborhood Center Facility – 600 North Alameda
March 11, 2025 Page 3
Volunteers of America now seeks City Council approval to enter into a three (3) year (March 1, 2025 through April 30, 2028) lease agreement, for occupation of the property – 4710 square feet of indoor space and 4888 square feet of outdoor space – located at 600 North Alameda Street.

VOALA is interested in leasing the subject property for the purpose of its Head Start and EHS Programs.

This proposed lease agreement will provide VOA with exclusive use of the following indoor spaces within the Neighborhood Center facility:

LOCATION USE SIZE SQUARE FEET CHANGE
Room 24 Office 17' x 16' 272 S.F.

Room 25 Office 18' x 11' 198 S.F.

Room 26 Office 18' x 12' 216 S.F.

Room 27 Office 40' x 44' 1,760 S.F.

Room 28 Office 10' x 17' 170 S.F.

Room 29 Office 8’ x 17’ 136 S.F.

Room 30 Office 17 x 26’ – 23’ x 19’ 879 S.F.

Men Restroom 12’ x 12’ 144 S.F.

Women Restroom 23’ x 12’ 276 S.F.

Hallway 1 12’ x 12’ 161 S.F.

Corridor 1 23’ x 12’ 498 S.F.

Total Exclusive Square Footage 4,710 sq. feet
Staff Report – Resolution Authorize to enter in a 3 Year Lease Agreement with Volunteers of America (Head Start Space) Neighborhood Center Facility – 600 North Alameda
March 11, 2025 Page 4
Gated Parking Lot Outdoor 4888 S.F.

Total Exclusive Square Footage 4888 sq. feet

FISCAL IMPACT

1. Approval of the proposed lease agreement at the requested rental rate of Three Dollars and Two Cents ($3.02) per square foot for occupation of approximately 4710 indoor space for a minimum monthly rental cost of Fourteen Thousand, Two Hundred and Twenty-Four dollars and Twenty Cents ($14,224. 20) and Fifty Cents ($0.50) per square feet for exclusive use of a total of approximately 4,888 square feet of outdoor space for a minimum monthly rental cost of Two Thousand and Four Hundred and Forty-four Dollars ($2,444.00). The fiscal impact of this proposed lease will amount to the collection of a total of Sixteen Thousand, Six Hundred and Sixty-Eight Dollars and Twenty Cents ($16,668.20) in monthly rent.

Approval of the proposed lease agreement at the reduced rental rate of Two Dollars and Fifty-Two Cents ($2.52) per square feet for occupation of approximately 4710 indoor space, for a reduced monthly rental cost of Eleven Thousand, Eight Hundred Sixty-Nine Dollars and Twenty Cents ($11,869.20) and Fifty Cents ($0.50) per square feet for exclusive use of a total of approximately 4,888 square feet of outdoor space for a reduced monthly rental cost of Two Thousand and Four Hundred and Forty-four Dollars ($2,444.00). The fiscal impact of this proposed lease will amount to the collection of a total of Fourteen Thousand, Three Hundred and Thirteen Dollars and Twenty Cents ($14,313.20) in monthly rent.

RECOMMENDATION
Staff has no objection to Volunteers of America’s request to rent square footage; however, staff is not authorized to offer and lease City-owned property wherein the terms sought by the prospective Tenant may vary from the requirements of the City’s Leasing Policy; that is, waiver of City costs for utilities, etc.; thus, staff makes no recommendation concerning this request. The decision is at the discretion of the City Council.

Staff Report – Resolution Authorize to enter in a 3 Year Lease Agreement with Volunteers of America (Head Start Space) Neighborhood Center Facility – 600 North Alameda
March 11, 2025 Page 5

NEBRASKA JONES, DIRECTOR

GENERAL SERVICES DEPARTMENT
APPROVED FOR FORWARDING:

WILLIE A. HOPKINS.

CITY MANAGER
RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE

AGREEMENT BETWEEN THE CITY OF COMPTON AND VOLUNTEERS

OF AMERICA OF LOS ANGELES FOR INDOOR AND OUTDOOR
SPACES AT 600 NORTH ALAMEDA STREET FOR A HEAD START
PROGRAM.

WHEREAS, the City of Compton owns certain real property located at 600 North Alameda Street, commonly known as the “Neighborhood Center” facility, which is used as a “shared occupancy” facility, offering indoor and outside space for leasing to outside agencies, organizations, and individuals; and WHEREAS, pursuant to guidance of the City Council, in November 2012, the City Manager implemented a City-wide leasing policy [Standard Operating Manual, Policy 4.17(A)], which mandates that City-owned facilities and/or property shall not be leased without first obtaining proper authorization from the City Council (i.e. an adopted resolution) and execution of a written lease agreement; and
WHEREAS, the Policy specifies that lease rates shall be based on the square footage of the area(s) subject to the exclusive use/occupation of the Lessee and that the standard leasing rate for indoor floor space in a City-owned facility shall be at least One Dollar ($1.00) per square foot and the standard leasing rate for City-owned outdoor space or vacant property shall be at least Fifty Cents ($0.50) per square foot; and
WHEREAS, in addition to the base minimum rental rate of $1.00 per square foot for indoor space and $0.50 per square foot for outdoor space, proposed lease agreements are to address the costs incurred by the City for utilities, maintenance and repairs, etc. and at Neighborhood Center facility, staff has identified that cost to be Two Dollars and Two Cents ($2.02) per square foot, thus the cost to the City will be recovered in a recommended minimal monthly rental rate based on a square footage charge of $3.02 for exclusive indoor spaces; and
WHEREAS, On June 20, 2017, the Council approved Resolution No. 24,590 which authorized the City Manager to enter into a Three (3) year (i.e. July 1, 2017 through June 30, 2020); lease agreement with Volunteers of America for exclusive use of approximately 2,057 square feet of indoor space located at the Neighborhood Center building at the monthly rental rate of One Dollar ($1.00) per square foot of Two Thousand, Fifty-Seven Dollars ($2,057.00) per month, waiving the City’s cost recovery; and
WHEREAS, On February 27, 2018, the Council approved Resolution No. 24,744 which authorized the City Manager to enter into a Three (3) years (i.e.

July 1, 2017 through June 30, 2020); lease agreement with Volunteers of America for exclusive use of approximately 922 square feet of additional indoor space located at the Neighborhood Center building at the monthly rental rate of One Dollar ($1.00) per square foot for a total of Two Thousand, Nine Hundred and Seventy-Nine Dollars ($2,979) per mouth; and
WHEREAS, Volunteers of America, a non-profit human services organization committed to serving people in need, strengthening families, and Resolution No. __________

building communities, seeks City Council approval to enter into a three (3) year (i.e. March 1, 2025 through April 30, 2028) lease agreement, for use of approximately 4,701 square feet of indoor space at the requested rental rate of Three Dollars and Two Cents ($3.02) per square foot for a minimum monthly rental rate of Fourteen Thousand, Two Hundred and Twenty-Four Dollars and Twenty Cents ($14,224.20) and approximately 4,888 square feet of outdoor space at the requested rental rate of Fifty Cents ($0.50) for a minimum rental rate of Two Thousand and Four Hundred and Forty-four Dollars ($2,444.00). The total requested rental amount will be Sixteen Thousand, Six Hundred and Sixty-Eight Dollars and Twenty Cents ($16,668.20) per month.

WHEREAS, Volunteers of America of Los Angeles are a non-profit human services organization committed to serving people in need, strengthening families, and building communities. VOALA continues to this day as a faith-based organization with a broad scope of support and services for all regardless of race, gender, age or religious preference. Now in their second century of service, Volunteers of America is one of the nation’s largest and most comprehensive human services organizations, touching the lives of more than 2 million people each year in hundreds of communities across the United States. VOALA is interested in leasing the subject property for the purpose of its Head Start and EHS Programs; and

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

Section 1. That the City Manager, upon the approval of the City Attorney is hereby authorized to enter into a three (3) year lease agreement, between the City of Compton and Volunteers of America to authorize the leasing of 4,710 square feet of indoor space and 4,888 square feet of outdoor space 600 North Alameda Street, Compton (“Neighborhood Center” facility), at the rental rate of Three Dollars and Two Cents ($3.02) per square foot for indoor space and Fifty Cents ($0.50) per square foot for the lease of the agreement term (i.e. March 1,2025 through April 30, 2028).

Section 2. That the monthly lease rate shall be Three Dollars and Two Cents ($3.02) for a total of Fourteen Thousand, Two Hundred and Twenty-Four dollars and Twenty Cents ($14,224.20) per square feet of indoor space total of 4,710 sq. ft., per month for the three (3) year term of the Lease.

Section 3. That the monthly lease rate shall be Fifty Cents ($0.50) for a total of Two Thousand and Four Hundred and Forty-four Dollars ($2,444.00) per square feet of outdoor space (total of 4,888 sq. ft.) per month for the three (3) year term of the Lease.

Section 4. That Volunteers of America of Los Angeles agrees to allow use of, without compensation of any form or manner, the indoor and outdoor spaces leased for their exclusive use at the Neighborhood Center on dates to be determined at a later date for the for the “Annual Compton Stand Down for Veterans” event.

Section 5. That Account No. 1001-000-000-3420 has been established to receive all facility lease payments.

Resolution No. __________

Section 6. That a certified copy of this Resolution shall be filed in the offices of the City Manager, City Clerk, City Controller, General Services, Community Improvement Services-Security Division and the City Attorney.

Section 7. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this _______ day of _____________, 2025.

EMMA SHARIF

MAYOR OF THE CITY OF COMPTON
ATTEST:
_______________________________
SATRA D. ZURITA

CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF COMPTON )
I, Satra D. Zurita, 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 ________________, 2025.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCILMEMBERS -
NOES: COUNCILMEMBERS -
ABSTAIN: COUNCILMEMBERS -
ABSENT: COUNCILMEMBERS -
___________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON

LEASE AGREEMENT BETWEEN

CITY OF COMPTON
AND

VOLUNTEERS OF AMERICA
This LEASE AGREEMENT is entered into by and between the CITY OF COMPTON, a municipal corporation of the State of California (hereinafter referred to as “OWNER”) and VOLUNTEERS OF AMERICA OF LOS ANGELES (hereinafter referred to as “LESSEE”), collectively, the “Parties.”
RECITALS:

WHEREAS, the City of Compton (“Owner”), has under its jurisdiction certain real property located at 600 North Alameda Street, Compton, California, also known as the “Neighborhood Center” facility (the “Site”); and WHEREAS, on_________ the City Council adopted Resolution No. ______, which authorized the City Manager to enter into a lease agreement with the Volunteers of America (“Lessee”) for a period of three (3) years, commencing March 1, 2025, through April 30, 2028 ot use for a Head Start Program; and
NOW, THEREFORE, Owner and Lessee, for the consideration, terms and conditions herein described, mutually agree as follows:

WITNESSETH:

Section 1. Premises. The Owner, for and in consideration of the performance of the covenants and agreements hereinafter contained to be kept and performed by the Lessee and upon the following terms and conditions, hereby leases to the Lessee, and the Lessee hereby hires and takes of and from the Owner, those certain Premises situated in the City of Compton, County of Los Angeles, State of California, more particularly described as:

Compton Neihborhood Center Facility
600 North Alameda Street
Compton, California 90220
[The “Site”]
Lessee shall lease approximately 4710 square feet of indoor office space and 4888 square feet of outdoor space within the Site building (as outlined on the attached Diagram/map of the Site/Premises). Lessee may also have access to and use of shared public spaces within the site.

Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
2 LOCATION USE SIZE SQUARE FEET CHANGE
Room 24 Office 17' x 16' 272 S.F.

Room 25 Office 18' x 11' 198 S.F.

Room 26 Office 18' x 12' 216 S.F.

Room 27 Office 40' x 44' 1,760 S.F.

Room 28 Office 10' x 17' 170 S.F.

Room 29 Office 8’ x 17’ 136 S.F.

Room 30 Office 17 x 26’ – 23’ x
19’ 879 S.F.

Men Restroom 12’ x 12’ 144 S.F.

Women
Restroom 23’ x 12’ 276 S.F.

Hallway 1 12’ x 12’ 161 S.F.

Corridor 1 23’ x 12’ 498 S.F.

Total Exclusive Square Footage 4,710 sq. feet
Gated Parking
Lot Outdoor 4888 S.F.

Total Exclusive Square Footage 4888 sq. feet
[The “Premises”]
The Premises are leased in "AS IS" condition and Lessee acknowledges that it has inspected and accepts the Premises in their present condition as suitable for the purpose for which the Premises are leased. Taking of possession by Lessee shall be conclusive to establish that the Premises are in good and satisfactory condition when possession is taken. Owner makes no warranties or representation as to the suitability of the Premises for Lessee's intended use, including without limitation, as to zoning, visibility, traffic count or any other factors.

Section 2. Term. This Lease shall be for a term of three (3) years commencing on March 1, 2025, and shall terminate on April 30, 2028, unless Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
3 extended or terminated as otherwise provided herein. This Lease shall supersede any previous Leases and/or agreements, written or oral.

Section 3. Rent. During the lease term, the Lessee shall pay rent to the Owner for the leased premises as follows:
 Indoor Space: The Lessee shall lease a total of 4,710 square feet of indoor space at a rental rate of Three Dollars and Two Cents ($3.02) per square foot, which includes One Dollar ($1.00) per square foot for the base rental rate and Two Dollar and Two Cents ($2.02) per square foot for utilities. This results in a minimum monthly rental cost of Fourteen Thousand, Two Hundred and Twenty-Four dollars and Twenty Cents ($14,224.20).
 Outdoor Space: The Lessee shall lease a total of 4,888 square feet of outdoor space at a rental rate of Fifty Cents ($0.50) per square foot, resulting in a minimum monthly rental cost of Two Thousand, Four Hundred and Forty-Four Dollars ($2,444.00).

The total monthly rental amount for both indoor and outdoor spaces shall be Sixteen Thousand, Six Hundred and Sixty-Eight Dollars and Twenty Cents ($16,668.20).

Lease payments shall be made by the Owner in advance on the first day of each month throughout the lease term. Any payment not received by the tenth (10th) day of the month shall be considered late, and a Five percent (5%) late fee (penalty) will be applied.

Payments shall be remitted to: General Services Department 205 South Willowbrook Avenue
Compton, California 90220
Attn: Director
Payable to: City of Compton
[Please identify your Lease Site on the payment]
[Lease Site: Neighborhood Center – 600 N. Alameda St.]
Section 4. Use of Premises. Lessee is entitled to use the Premises during normal building business days/hours (Mondays through Fridays, 7:00 a.m. to 6:00 p.m.), (excepting legal City holidays) for the following purpose(s) only:

Administrative Offices and Support Services
Lessee shall not use the Premises for any other purposes without the prior written consent of the Owner. Lessee shall not use the Premises for residential purposes or for any commercial purposes not stated herein. Lessee shall not use the Premises for the storage of unusable equipment or property or for the Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
4 rental or storage of any type of equipment not integral to the purposes of the program.

Use of Premises at Shared Site on City Holidays and Non-Business Hours On those dates designated by the City Council as legal City holidays, the Site (including the Premises) shall be closed. If Lessee desires to use the Premises on a City holiday or during hours not specified above, Lessee shall pay the City the costs (e.g. employees' salary) of providing access to the Premises/Site and for provision of City security (if applicable).

Lessee shall provide written notification to the General Services Department a minimum of three (3) business days in advance of its desire to use the Premises on a City holiday or during non-business building hours. Owner shall provide Lessee with an invoice for the costs owed by Lessee for access/use of the Premises on a City holiday or during non-business building hours, which shall be due and payable on receipt by the Lessee.

Section 5. Delivery of Premises. If Owner, for any reason, cannot deliver the Premises described above to Lessee at the commencement of the term hereof, Owner shall not be deemed to be in default hereunder, nor shall Owner be liable to Lessee for any loss or damage resulting directly or indirectly arising out of or resulting from such failure and Lessee at Lessee’s option, may declare this Agreement to be null and void.

Section 6. Utilities and Other Services. Owner agrees to furnish the following utilities and services at Owner's expense during normal business hours:
a. Electricity for normal lighting and power for office use. Special or additional electrical requirements over and above the standard for general office uses will be charged directly to Lessee.
b. Heating/Cooling.
c. Hot and cold water.
d. Routine maintenance.
e. General/shared security for the Site.

Any and all other types of utilities (e.g. telephone, cable, etc.) and services shall be at the sole expense and responsibility of the Lessee. Prior written approval shall be required for the installation of any utility and/or service that will involve physical alteration of the Premises and/or Site. Lessee shall reimburse Owner for the cost of repairing any and all damages to the Premises and/or Site Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
5 caused directly or indirectly by Lessee's utility or service provider or its equipment.

Owner shall in no way be liable or responsible for any loss, damage or expense that Lessee may sustain or incur by reason of any change, failure, interference, disruption or defect in the supply or character of the utilities and services supplied to Premises and/or Site, unless directly caused by the active negligence or willful misconduct of the Owner.

Section 7. Assignment and Subletting. Lessee agrees not to sublet the whole or part of the Premises, assign the Lease nor permit the use of the Premises by anyone other than the Lessee, its employees, business invitees, customers and patrons without in each case first securing the written consent of the Owner. Any attempted assignment or subletting of this Lease without the written consent of the Owner constitutes fraud and this Agreement shall be null and void.

Section 8. Alterations and Additions. Lessee shall not make any alterations or construct any additions or improvements in or on the Site and/or the Premises until the Owner has been provided with said plans and specifications for the project. Once the Owner has been provided with said plans and specifications, Owner shall have a fifteen (15) day minimum review period before granting Lessee approval or disapproval of the project in writing. Lessee shall, at the time of the request, specify if they desire to retain ownership and/or possession of the alteration, addition, or improvement subject to plan review by Owner at Lessee’s expense.

Owner agrees that except for structural alterations, the Lessee may remove, during or at the expiration or other termination of the term of this Lease, or of any extension or holdover period thereof, as the case may be, personal property placed or installed in or upon the Site and/or the Premises by the Lessee or under its authority. Any personal property, improvements or additions not removed by Lessee within thirty (30) days after the end of the term, or any extension or holdover period thereof, shall automatically become the property of Owner.

Lessee shall repair any damage to the Site and/or the Premises caused by Lessee’s installation and/or removal of its personal property, alterations, improvements or additions.

Lessee shall, at its sole cost and expense, be allowed to place its typical signage on the Building on the Site upon the Owner's advance written approval.

Section 9. Repairs and Maintenance. Owner shall not be responsible to make any repairs or alterations to the Premises, excepting due to reasonable Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
6 normal wear and tear, and Lessee assumes any and all cost and liability for the repair and maintenance of the Premises leased herein, unless such repairs, alterations or maintenance are due to Owner’s negligence or willful misconduct.

Lessee agrees to repair any damage caused by Lessee, its employees, contractors, agents or invitees, negligently or otherwise, at its own expense, and maintain the Premises leased and to return said Premises to Owner in as good order, repair and condition as the same were in at the commencement of this Lease. Lessee must obtain prior written approval from the Owner prior to commencing any repairs to the leased Premises.

Lessee shall continue to maintain said Premises in good repair and tenable condition and in compliance with all health, safety and sanitation laws, ordinances and regulations of the State of California and local authorities throughout the term of the Lease.

Lessee agrees to keep Premises in good order and condition at their sole cost and expense. All work done by Lessee on the Premises shall be done in a lawful manner and in conformity with all applicable laws, ordinances and regulations. The Premises shall be kept free from any and all liens and charges on account of labor or materials used in contribution to any work thereon.

Unless otherwise required by law or expressly provided for within this Lease Agreement, Owner shall have no liability to Lessee for any condition on the Premises leased herein and Lessee agrees that it has inspected the same, knows the condition and takes this Lease with the Premises in its present condition. Lessee agrees to hold the Owner harmless from any and all liability arising out of or in connection with the use for the Premises leased here by the Lessee, its agents, employees business invitees, customers and patrons, except to the extent any such liability is attributable to Owner’s negligence or willful misconduct.

Section 10. Insurance. Lessee shall furnish certificates of insurance, along with endorsements, issued to Owner substantiating the fact that it has taken out the specified insurance for the term covered by this Lease, or any extension or holdover period thereof, with an insurance carrier acceptable to the Owner under forms satisfactory to the Owner. Each certificate shall bear an endorsement precluding cancellation or reduction in coverage of any policy covered by such certificate except upon at least thirty (30) days prior written notice to Owner. It is agreed that Owner shall not be liable for the payment of any premiums or assessments on the insurance required.

Lessee shall present evidence of required insurance and certificate of endorsement to Owner no later than the commencement date of this Lease and each and every lease year thereafter. The Lessee shall not occupy the Premises Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
7 until the Owner has received and approved the required certification. Failure on the part of the Lessee to procure or maintain insurance shall constitute a material breach upon which the Owner may immediately terminate this Lease Agreement.

All insurance required hereunder shall be primary with respect to any insurance maintained by the City and shall not call on the City’s program for contributions. Program(s) of insurance shall include:
a. General Liability. Lessee shall provide and maintain at its own expense during the term of this Lease Agreement a policy of Commercial General Liability Insurance, inclusive of personal injury liability and broad form property damage coverage, in an amount not less than One Million Dollars ($1,000,000) per occurrence. The coverage shall be written on an occurrence basis. Claims made coverage is not acceptable.
b. Workers’ Compensation Insurance. Lessee shall provide and maintain at its own expense during the term of this Agreement a program of Workers’ Compensation Insurance and Employer’s Liability Insurance in an amount and form to meet all applicable requirements of the State Labor Code and which specifically covers all persons providing services by or on behalf of the Lessee and all risks to such persons under the Agreement. c. Fire and Casualty Insurance. Lessee shall maintain fire insurance on such party’s own equipment and property or to adequately self-insure the same.

Lessee shall provide, or cause to be provided, and maintained at its sole cost property insurance in the amount of the value of the improvements on the Premises on a replacement cost basis. The property insurance shall insure against the perils of fire (with extended coverage), theft, vandalism, malicious mischief, collapse, flood, earthquake, windstorm and physical loss or damage.

Owner will not keep improvements which are constructed or installed and owned by Lessee under the provisions of this Lease insured against fire or casualty, and Lessee will make no claim of any nature against Owner by reason of any damage to the business or property of Lessee in the event of damage or destruction by fire or other cause, arising other than from or out of negligence or willful misconduct of agents or employees of the Owner in the course of their employment.
d. Insurance Endorsements. The liability insurance policy(ies) shall be endorsed with the following language:
(1) The City of Compton and its respective elected and
appointed officers, officials, employees, agents and volunteers are to be named and covered as “additional insureds” with respect to liability arising out of the activities of the Lessee.

Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
8 (2) The insurer waives all rights of subrogation against the City. (3) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City.
(4) Identify the leased Premises covered by the policy(ies) and the identity of the insured(s).
e. Contractor’s Insurance Requirements. Lessee shall require that any contractors and subcontractors used to perform improvements/repairs to the building structure and Premises as provided in Sections 8 and 9 of this Lease Agreement to provide and maintain during the entire period of performing improvements/repairs the following programs of insurance:
(1) A policy of Commercial General Liability Insurance, inclusive of personal injury liability and broad form property damage coverage, in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) general aggregate. The coverage shall be written on an occurrence basis. Claims made coverage is not acceptable. (2) A program of Workers’ Compensation Insurance and Employer’s Liability Insurance in an amount and form to meet all applicable requirements of the State Labor Code and which specifically covers all persons providing services by or on behalf of the contractor and all risks to such persons. (3) A program of Automobile Liability Insurance with a limit of liability of not less than One Million Dollars ($1,000,000.00) for each accident. Such insurance shall include coverage for all “owned”, “hired” and “non-owned” vehicles, or coverage for “any auto”.
(4) The Contractor(s) liability insurance policy(ies) shall be endorsed with the following language: The City and its respective elected and appointed officers, officials, employees, agents and volunteers are to be named and covered as “additional insureds” with respect to liability arising out of the activities of the contractor.

Insurance coverage specified herein constitutes the minimum requirements and said requirements shall in no way lessen or limit the liability of the Lessee and/or its contractors and subcontractors under the terms of the Lease Agreement. Lessee shall procure and maintain, at its own costs and expense, any additional kinds and amounts of insurance that, in its own judgment, may be necessary relating to Lessee’s use of the Premises and improvement/repairs made to the Premises.

Section 11. Losses. Owner shall not be responsible for losses or damage to personal property, equipment or materials of Lessee. Owner will not keep Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
9 improvements which are constructed or installed and owned by Lessee under the provisions of this Lease insured against fire or casualty, and Lessee will make no claim of any nature against Owner by reason of any damage to the business or property of Lessee in the event of damage or destruction by fire or other cause, arising other than from or out of the gross negligence or willful misconduct of agents or employees of the Owner in the course of their employment.

Section 12. Damage or Destruction.
a. Termination of Lease. If the entire Premises or any material portion thereof are damaged or destroyed by earthquake or other violent action of the elements, or by fire or other casualty such that it is difficult or impossible for Lessee to continue operating its business thereon, then either Owner or Lessee may cancel this Lease as of the date of damage or destruction by delivering written notice to the other within thirty (30) days following the damage or destruction. If the Lease is cancelled, Lessee shall surrender the Premises and shall not be obligated for any further rental payment and Owner shall refund any unearned rent paid in advance by Lessee, calculated at a daily rate based on the regular monthly rental.

Repair of Premises. In the event of any lesser damage by casualty (other than that caused by or do the actions/inactions of the Lessee), Owner shall, at Owner's cost and expense, promptly repair the same to the extent Owner's insurance proceeds are made available to Owner therefor and provided that (a) such repairs, in Owner's reasonable good faith opinion, can be commenced within thirty (30) days of the event which necessitated the repair and restoration, unless it is not reasonably possible to commence repair and restoration within thirty (30) days from the date of such damage or destruction (without payment of overtime or other premiums) and (b) the cost of such repairs, in Owner's reasonable good faith opinion, will not exceed 50% of the then replacement cost of the Site. If Owner is not required to repair such damage or destruction, then Owner shall, within 30 days from the date of such damage or destruction, either (i) notify Lessee in writing of Owner's election to repair such damage or destruction, in which event Owner shall promptly repair the same, or (ii) notify Lessee in writing of Owner's election to immediately terminate this Lease, in which event this Lease is terminated effective as of the date of such damage or destruction. Lessee may terminate this Lease effective as of the date of any such damage or destruction if Lessee reasonably determines in its good faith opinion that such damage or destruction substantially impairs the satisfactory operation of the Lessee's operations by notifying Owner in writing of Lessee's election to terminate not later than 30 days after the date of such damage or destruction.

Loss Caused by Lessee. If the Premises are wholly or partially damaged or destroyed as a result of the gross negligence or willful misconduct or omission of Lessee, Lessee shall forthwith diligently undertake to repair or restore all such damage destruction at Lessee's sole cost and expense. This Lease shall Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
10 continue in full force and effect without any abatement or reduction in rent or other payments owed by Lessee, and this obligation of Lessee to repair or restore the Premises shall survive the cancellation of this Lease.

Exclusive Remedy. This Section 12 shall be Lessee's sole and exclusive remedy in the event of damage or destruction of the Premises, and Lessee waives and releases Lessee's rights under California Civil Code Section 1932 and 1933(4).

No damages, compensation or claim shall be payable by Owner for any inconvenience, any interruption or cessation of Lessee's business, or any annoyance, arising from any damage or destruction of all or any portion of the Premises.

Section 13. Hazard Materials. Lessee shall not use any Hazardous Materials in/or on Site or the Premises, except as necessary in the ordinary course of business and in full compliance with all Environmental Laws. Lessee will promptly notify Owner of any release or presence of any Hazardous Material in/on the Premises of which Lessee becomes aware.
a. Remediation. If Hazardous Materials are released at the Site and/or Premises by Lessee, its agents, employees, or contractors, then Lessee is solely responsible for the removal and/or remediation of any Hazardous Materials to the extent required by governmental authorities in compliance with applicable Environmental Laws.
b. Indemnification. Lessee shall indemnify and hold Owner harmless from and against any and all claims, actions, suits, proceedings, loss, liabilities, damages, fines, costs, or expense (including reasonable attorneys’ fees, consultants’ fees, investigation and laboratory fees, court costs, and litigation expenses), which arise from the presence of Hazardous Materials at the Site and/or Premises released by Lessee or its agents, employees, or contractors.

Section 14. Default. Lessee shall pay said rent to the Owner without deduction, default or delay. In the event of the failure of Lessee to do so, or in the event of a breach of any other terms, covenants or conditions herein contained on the part of Lessee to be kept and performed and if such default continues for a period of thirty (30) days after receipt of written notice from Owner to Lessee of such default, this Lease may be terminated. Owner may not terminate the Lease if (a) Lessee cures the default within the thirty (30) day period after notice of default is given, or (b) the default cannot reasonably be cured within thirty (30) days after notice of default is given, but Lessee reasonably commences to cure the default within the thirty (30) day period and diligently and in good faith continues to cure the default. In the event of termination of this Lease, it shall be lawful for Owner to reenter into and upon the Premises and every part thereof and to remove and store at Lessee’s expense all property therefrom and to repossess and occupy Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
11 the Premises. In addition thereto, Owner shall have such other rights or remedies as may be provided for by law.

Section 15. Holding Over. In case Lessee holds over beyond the term herein provided with the consent, express or implied, of the Owner, such tenancy shall be from month-to-month only, subject to the same terms and conditions of this Lease, but shall not be a renewal hereof. Such month-to-month tenancy shall be terminable on thirty (30) days written notice by either party to the other party.

Section 16. Cancellation Provision. Notwithstanding any other provisions contained herein, either party shall have the right to cancel this Lease, without cause, at anytime, upon thirty (30) days prior written notice to the other party.

Section 17. Owner’s Access. Lessee agrees to permit the Owner or Owner’s authorized agents, upon reasonable advance notice, free access to the Premises at all reasonable times for the purpose of inspection of the Premises or for making necessary alterations, improvements or major repairs.

Section 18. Discrimination. The Lessee herein covenants by and for itself, its heirs, executors, administrator, and assigns, and all persons claiming under or through it that this Lease is made, accepted and subject to the following conditions:

That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, the leasing, subleasing, transferring, use, occupancy, tenure, enjoyment of the Premises herein leased nor shall the Lessee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with referenced to the selection, location, number, use of occupancy, of Lessees or vendees in the Premises herein leased.

Section 19. Indemnification. Lessee shall indemnify and save harmless the Owner, its officials, officers, employees, agents and volunteers (collectively hereafter the “Owner”), against any and all damages to property or injuries to or death of any person or persons, and shall defend, indemnify and save the Owner from any and all liability and expense, including 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 in any way resulting from or arising out of Lessee’s, its employees, contractors, agents or invitees negligent or intentional acts in or on the Premises, or from conduct of Lessee, its employees, contractors, agents or invitees practice or business from any activity, work or things done.

This indemnification and hold harmless obligation does not extend to claims arising out of the sole negligence or willful misconduct of the Owner.

Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
12 Section 20. Partnership Disclaimer. Lessee and any and all agents of Lessee shall act in an independent capacity and not as officers or employees of the Owner. Nothing herein contained shall be construed as constituting the parties herein as partners.

Section 21. Vacating Premises. Lessee shall, on the last day of said term or sooner termination of this Lease, peaceably and quietly leave, surrender and yield up to the Owner, the Premises in good order, condition and repair, reasonable use and wear thereof and damage by acts of nature, excepted.

Section 22. Compliance with Laws. Lessee shall at its sole cost and expense, comply with all the laws and requirements of all municipal, county, state and federal authorities now in force, or which may hereafter be in force pertaining to the Premises and use of the Premises as provided by this Lease.

Section 23. Easements and Right of Way. This Lease is subject to all existing easements and right of way. Owner further reserves the right to grant additional public utility easements as may be necessary and Lessee hereby consents to the granting of any such easements. The public utility will be required to reimburse Lessee for any damages suffered by Lessee caused by the construction work on the easement area.

Section 24. Parking Access. Unless specifically provided herein, if off-street parking is provided at the Site of the Premises, Lessee, its employees and invitees may have equal access to non-restricted/non-reserved parking spaces provided to all Lessees on a first-come, first-served basis.

Section 25. Relocation. Lessee acknowledges that Lessee, its employees, contractors, subordinates and assigns are not entitled to any Relocation Payment or Relocation Advisory Assistance due to their occupancy of the Premises.

Section 26. Failure to Perform.In the event of the failure, neglect or refusal of Lessee to do, or perform work, or any part thereof, of any act or thing in this Lease provided to be done and performed by Lessee, Owner shall, at its option, have the right to do and perform the same, and Lessee hereby covenants and agrees to pay Owner the costs thereof on demand.

Section 27. Binding on Successors. Each and all of the terms and agreements herein contained shall be binding upon and shall inure to the benefit of the successors in interest of the Owner, and wherever the context permits or requires the successors in interest to the Lessee.

Section 28. Amendments. This Lease Agreement may be modified or amended only be written document executed by both Lessee and Owner’s City Manager and approved as to form by the City Attorney. Such document shall Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
13 expressly state that it is intended by the parties to amend the terms and conditions of this Lease Agreement.

Section 29. Waivers. A waiver by either party to this Agreement of any breach of any terms, covenants or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character.

Section 30. Governing Law and Severability. This Agreement shall be governed by and construed under the laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Los Angeles.

Should any part of this Agreement be declared by a final decision by a court or tribunal of competent jurisdiction to be unconstitutional, invalid, or beyond the authority of either party to enter into or carry out, such decision shall not affect the validity of the remainder of this Agreement, which shall continue in full force and effect, provided that the remainder of this Agreement, absent the unexcised portion, can be reasonably interpreted to give effect to the intentions of the parties.

Section 31. Notices. All notices, demands or requests to be given under this Lease Agreement shall be given in writing and conclusively shall be deemed received when: (a) delivered personally, or (b) on the fifth (5th) business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided, or (c) one business day after send by facsimile transmission.

To OWNER: City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: Director, General Services Department
(310) 605-5519
(310) 605-1753 – fax.

With copy to: City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: City Manager
Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
14 To LESSEE: Volunteers of America
3600 Wilshire Blvd
Los Angeles, California 90010
Attn:Veronica Lara, Chief Operting Officer
(213) 389-1500
Section 32. Entire Agreement. This Lease and any exhibits or attachments hereto and incorporated herein constitute the entire agreement of Owner and Lessee. There are no agreements, terms, conditions or obligations other than those set forth herein.

This Lease shall supersede all previous communications, representations or agreements, either verbal or written between Owner and Lessee. This agreement may be modified only by written agreement signed by both Owner and Lessee.

IN WITNESS WHEREOF, Lessee has executed this Lease and the Owner, by its City Manager, who is authorized to do so, has executed this Lease.

VOLUNTEERS OF AMERICA/LESSEE
By __________________________________ Dated: ______________ Veronica Lara, Chief Operating Officer

CITY OF COMPTON/OWNER
Recommended for Approval:

By __________________________________ Dated: ______________ Nebraska Jones, Director
General Services Department
Approved by:

Lease Agreement – Volunteers of America – Head Start
600 North Alameda Street, Compton, CA 90221
March 1, 2025 – April 30, 2028 / Resolution No. ****
15 By __________________________________ Dated: ______________ Willie A. Hopkins, Jr., City Manager
Approved as to form:

By _________________________________ Dated: ______________ Eric J. Perrodin, City Attorney
ATTEST:

Dated: _________________ By _____________________________ Santra D. Zurita, City Clerk
Encl:

Resolution No. _________
272 198
216
1760
468
170
136 276
144
879
4888
VOA Head Start/EHS
4710 sf
4888 sf
March 11, 2025
TO: HONORABLE MAYOR AND 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 LEASE

AGREEMENT BETWEEN VOLUNTEERS OF AMERICA OF LOS

ANGELES TO PROVIDE SPACE AT THE CITY-OWNED PROPERTY
LOCATED AT (700 NORTH BULLIS ROAD)

SUMMARY
The City Council will consider a request by Volunteers of America of Los Angeles (“Volunteers of America”) to enter into a three (3) year (i.e. March 1, 2025 through April 30, 2028) lease agreement with the City of Compton City-owned property located at 700 North Bullis Road, Compton, to authorize the leasing of 7,329 square feet of indoor space at the rental rate of One Dollar ($1.00) per square foot.

BACKGROUND
The City of Compton owns certain real property located at 700 North Bullis Road, commonly known as the “Career link” facility. This property is used as a “shared occupancy” facility, offering indoor space for leasing to outside agencies, organizations, and individuals.

Pursuant to guidance of the City Council, In November 2012, the City Manager implemented a City-wide leasing policy which specifies that lease rates shall be on the square footage of the area(s) subject to the exclusive use/occupation of the tenant and that the standard leasing rate for indoor floor space in a City-owned facility shall be at least One Dollar ($1.00) per square foot. Proposed lease agreements are to address the costs incurred by the City for utilities, maintenance, repairs, security, etc. At the Career link location, staff has identified that cost to Two Dollars and Two Cents ($2.02) per square foot. Thus, the cost to the City will be recovered in a recommended minimal monthly rental rate based on a square footage charge of Three Dollars and Two Cents ($3.02) (i.e. $1.00 per square foot base rental rate plus $2.02 per square foot) for utilities.

STATEMENT OF THE ISSUE
According to the Lessee, Volunteers of America is a non-profit human services organization committed to serving people in need, strengthening families and building

12. Staff Report – Resolution Authorize to enter in a 3 Year Lease Agreement with Volunteers of America
700 North Bullis
March 11, 2025 Page 2
communities as a faith-based organization with a broad scope of support and services for all regardless of race, gender, age or religious preference. In their second century of service, Volunteers of America is one of the nation’s largest and most comprehensive human services organizations, touching the lives of more than 2 million people each year in hundreds of communities across the United States.

This proposed lease agreement will provide Volunteers of America with exclusive use of the following indoor space at the Career link facility:

LOCATION USE SQUARE FEET
Room 1B Office 302 sq. ft.

Lobby 2 Lobby 2727 sq. ft.

Room 3B Office 193 sq. ft.

Conference Room Conference Room 381 sp. Ft.

Room 7B Office
389 sq. ft.

Room 8B Office
143 sq. ft.

Reception Area Reception Area 143 sq. ft.

Room 9B Office
208 sq. ft.

Room 10B Office
380 sq. ft.

Room 11B Office
169 sq. ft.

Room 12B Office
238 sq. ft.

Room 13B Office
182 sq. ft.

Room 14B Office
238 sq. ft.

Storage room Storage 51 sq. ft.

Men’s Restroom Restroom 72 sq. ft.

Women’s Restroom Restroom 72 sq. ft.

Hallway Hallway 432 sq. ft.

Room 11A Office 778 sq. ft.

Total Exclusive Indoor Square Footage 7329 square feet
Staff Report – Resolution Authorize to enter in a 3 Year Lease Agreement with Volunteers of America
700 North Bullis
March 11, 2025 Page 3
Volunteers of America needs a location for its California Intervention and Prevention (CALVIP) Program and seeks City Council approval to enter into a three (3) year lease agreement with the City of Compton, beginning March 1, 2025 through April 30, 2028, for exclusive occupation of the above-indicated indoor space located at the Neighborhood Center. Volunteer of America is interested in leasing the subject property for the purpose of developing and implementing programming for at-risk transition-aged youth between 18-25 years old. The program would include a comprehensive employment and life skills training program to prepare youth for stable, independent lives outside of gang involvement and will service approximately 300 youth.

Volunteers of America has requested to enter into a three (3) year lease agreement commencing March 1, 2025 through April 30, 2028 to authorize the leasing of a total of 7,329 square feet of indoor space at the rental rate of Two Dollars and Fifty-Two Cents ($2.52) per square foot, which will bring the total rental amount to Eighteen Thousand, Four Hundred Sixty-Nine Dollars and Eight Cents ($18,469.08) per month. Volunteers of America shall be responsible for providing the general upkeep, janitorial, custodial, minor repairs and security for their entire areas and the City will be responsible for major and structural upkeep/repairs.

FISCAL IMPACT
Approval of the Volunteers of America’s requested lease agreement reduced rental rate of Two Dollars and Fifty-Two Cents ($2.52) per square feet for occupation of approximately 7,329 square feet of indoor office space, will total Eighteen Thousand, Four Hundred Sixty-Nine Dollars and Eight Cents ($18,469.08) per month in rental fees for use of the City’s facilities.

Approval of the proposed lease agreement at the requested Three Dollars and Two Cents ($3.02) per square foot for occupation of approximately 7,329 square feet of indoor office space will total of Twenty-Two Thousand, One Hundred Thirty-Three Dollars and FiftyEight Cents ($22,133.58) per month in rental fees for use of the City’s facilities.

RECOMMENDATION
Staff has no objection to Volunteers of America’s request to rent square footage; however, staff is not authorized to offer and lease City-owned property wherein the terms sought by the prospective Tenant may vary from the requirements of the City’s Leasing Policy; that is, waiver of City costs for utilities, etc.; thus, staff makes no recommendation concerning this request. The decision is at the discretion of the City Council.

Staff Report – Resolution Authorize to enter in a 3 Year Lease Agreement with Volunteers of America
700 North Bullis
March 11, 2025 Page 4

NEBRASKA JONES, DIRECTOR

GENERAL SERVICES DEPARTMENT
APPROVED FOR FORWARDING:

WILLIE HOPKINS

CITY MANAGER
RESOLUTION NO. __________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

AUTHORIZING THE CITY MANAGER TO ENTER INTO A LEASE

AGREEMENT BETWEEN VOLUNTEERS OF AMERICA OF LOS

ANGELES TO PROVIDE SPACE AT THE CITY-OWNED PROPERTY
LOCATED AT (700 NORTH BULLIS ROAD)
WHEREAS, the City of Compton owns certain real property located at 700 North Bullis Road, commonly known as the “Career link” facility, which is used as a “shared occupancy” facility, offering indoor space for leasing to outside agencies, organizations, and individuals; and
WHEREAS, in November 2012, the City implemented a City-wide leasing policy which specifies that lease rates shall be based on the square footage of the area(s) subject to the exclusive use/occupation of the tenant and that the standard leasing rate for indoor floor space in a City-owned facility shall be at least One Dollar ($1.00) per square foot; and
WHEREAS, in addition, the proposed lease agreements are to address the costs incurred by the City for utilities, maintenance, repairs, security, etc. and at the Career link facility, staff has identified that cost to be Two Dollars and Two Cents ($2.02) per square foot; thus, the cost to the City will be recovered in a recommended minimal monthly rental rate based on a square footage charge of Three Dollars and Two Cents ($3.02) for exclusive indoor spaces; and
WHEREAS, Volunteers of America is a non-profit human services organization committed to serving people in need, strengthening families and building communities as a faith-based organization with a broad scope of support and services for all regardless of race, gender, age or religious preference. In their second century of service, Volunteers of America is one of the nation’s largest and most comprehensive human services organizations, touching the lives of more than 2 million people each year in hundreds of communities across the United States; and
WHEREAS, Volunteers of America has requested to enter into a three (3) year lease agreement commencing March 1, 2025 through April 30, 2028 to authorize the leasing of a total of 7,329 square feet of indoor space at the reduced rental rate of Two Dollars and Fifty-Two Cents ($2.52) per square foot, which will bring the total rental amount to Eighteen Thousand, Four Hundred Sixty-Nine Dollars and Eight Cents ($18,469.08) per month. Volunteers of America shall be responsible for providing the general upkeep, janitorial, custodial, minor repairs and security for their entire areas and the City will be responsible for major and structural upkeep/repairs.

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

Section 1. That the City Manager, upon the approval of the City Attorney is hereby authorized to enter into a three (3) year lease agreement between the City of Compton and Volunteers of America to authorize the leasing of 7,329 square feet of indoor space at 700 North Bullis Road, Compton (“Career Link” facility), at the rental rate of Three Dollars and Two Cents ($3.02) per square foot for the lease agreement term (i.e. March 1, 2025 through April 30, 2028).

Section 2. That commencing on March 1, 2025, the monthly lease rate shall be Twenty-Two Thousand, One Hundred and Thirty-Three Dollars and Fifty-Eight Cents ($22,133.58) – i.e. Three Dollars and Two Cents ($3.02) per square foot for the total 7,329 square feet in the facility leased to Volunteers of America.

Resolution No. __________

Section 3. That Account No. 1001-000-000-3420 has been established to receive all facility lease payments.

Section 4. That a certified copy of this Resolution shall be filed in the offices of the City Manager, City Clerk, City Controller, General Services, Community Improvement Services-Security Division and the City Attorney.

Section 5. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this _______ day of _____________, 2025.

EMMA SHARIF

MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) ss

CITY OF COMPTON )
I, Satra D. Zurita, 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 _____________, 2025.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCILMEMBERSNOES: COUNCILMEMBERSABSTAIN: COUNCILMEMBERSABSENT: COUNCILMEMBERS- ___________ ___
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON

LEASE AGREEMENT BETWEEN

CITY OF COMPTON
AND

VOLUNTEERS OF AMERICA
This LEASE AGREEMENT is entered into by and between the CITY OF COMPTON, a municipal corporation of the State of California (hereinafter referred to as “OWNER”) and VOLUNTEERS OF AMERICA OF LOS ANGELES (hereinafter referred to as “LESSEE”), collectively, the “Parties.”
RECITALS:

WHEREAS, the City of Compton (“Owner”), has under its jurisdiction certain real property located at 700 North Bullis Street, Compton, California, also known as the “Career Link” facility (the “Site”); and WHEREAS, on_________ the City Council adopted Resolution No. ______, which authorized the City Manager to enter into a lease agreement with the Volunteers of America (“Lessee”) for a period of three (3) years, commencing March 1, 2025, through April 30, 2028; and
NOW, THEREFORE, Owner and Lessee, for the consideration, terms and conditions herein described, mutually agree as follows:

WITNESSETH:

Section 1. Premises. The Owner, for and in consideration of the performance of the covenants and agreements hereinafter contained to be kept and performed by the Lessee and upon the following terms and conditions, hereby leases to the Lessee, and the Lessee hereby hires and takes of and from the Owner, those certain Premises situated in the City of Compton, County of Los Angeles, State of California, more particularly described as:

Compton Career Link Facility
700 North Bullis Street
Compton, California 90220
[The “Site”]
Lessee shall lease approximately 7,329 square feet of indoor office space within the Site building (as outlined on the attached Diagram/map of the Site/Premises). Lessee may also have access to and use of shared public spaces within the site.

Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
2 LOCATION USE SQUARE FEET
Room 1B Office 302 sq. ft.

Lobby 2 Lobby 2727 sq. ft.

Room 3B Office 193 sq. ft.

Conference Room Conference Room 381 sp. Ft.

Room 7B Office
389 sq. ft.

Room 8B Office
143 sq. ft.

Reception Area Reception Area 143 sq. ft.

Room 9B Office
208 sq. ft.

Room 10B Office
380 sq. ft.

Room 11B Office
169 sq. ft.

Room 12B Office
238 sq. ft.

Room 13B Office
182 sq. ft.

Room 14B Office
238 sq. ft.

Storage room Storage 51 sq. ft.

Men’s Restroom Restroom 72 sq. ft.

Women’s Restroom Restroom 72 sq. ft.

Hallway Hallway 432 sq. ft.

Room 11A Office 778 sq. ft.

Total Exclusive Square Footage 7329 sq. feet
[The “Premises”]
The Premises are leased in "AS IS" condition and Lessee acknowledges that it has inspected and accepts the Premises in their present condition as suitable for the purpose for which the Premises are leased. Taking of possession by Lessee shall be conclusive to establish that the Premises are in good and satisfactory condition when possession is taken. Owner makes no warranties or representation as to the suitability of the Premises for Lessee's intended use, Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
3 including without limitation, as to zoning, visibility, traffic count or any other factors.

Section 2. Term. This Lease shall be for a term of three (3) years commencing on March 1, 2025, and shall terminate on April 30, 2028, unless extended or terminated as otherwise provided herein. This Lease shall supersede any previous Leases and/or agreements, written or oral.

Section 3. Rent. During the lease term, the Lessee shall pay rent to the Owner for the leased premises as follows:
 Indoor Space: The Lessee shall lease a total of 7,329 square feet of indoor space at a rental rate of Three Dollars and Two Cents ($3.02) per square foot, which includes One Dollar ($1.00) per square foot for the base rental rate and Two Dollar and Two Cents ($2.02) per square foot for utilities. This results in a minimum monthly rental cost of Twenty-Two Thousand, One Hundred Thirty-Three Dollars and Fifty-Eight Cents ($22,133.58).

Lease payments shall be made by the Owner in advance on the first day of each month throughout the lease term. Any payment not received by the tenth (10th) day of the month shall be considered late, and a Five percent (5%) late fee (penalty) will be applied.

Payments shall be remitted to: General Services Department 205 South Willowbrook Avenue
Compton, California 90220
Attn: Director
Payable to: City of Compton
[Please identify your Lease Site on the payment]
[Lease Site: Careerlink Facility – 700 N. Bullis Rd.]
Section 4. Use of Premises. Lessee is entitled to use the Premises during normal building business days/hours (Mondays through Fridays, 7:00 a.m. to 6:00 p.m.), (excepting legal City holidays) for the following purpose(s) only:

Administrative Offices and Support Services
Lessee shall not use the Premises for any other purposes without the prior written consent of the Owner. Lessee shall not use the Premises for residential purposes or for any commercial purposes not stated herein. Lessee shall not use the Premises for the storage of unusable equipment or property or for the rental or storage of any type of equipment not integral to the purposes of the program.

Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
4 Use of Premises at Shared Site on City Holidays and Non-Business Hours On those dates designated by the City Council as legal City holidays, the Site (including the Premises) shall be closed. If Lessee desires to use the Premises on a City holiday or during hours not specified above, Lessee shall pay the City the costs (e.g. employees' salary) of providing access to the Premises/Site and for provision of City security (if applicable).

Lessee shall provide written notification to the General Services Department a minimum of three (3) business days in advance of its desire to use the Premises on a City holiday or during non-business building hours. Owner shall provide Lessee with an invoice for the costs owed by Lessee for access/use of the Premises on a City holiday or during non-business building hours, which shall be due and payable on receipt by the Lessee.

Section 5. Delivery of Premises. If Owner, for any reason, cannot deliver the Premises described above to Lessee at the commencement of the term hereof, Owner shall not be deemed to be in default hereunder, nor shall Owner be liable to Lessee for any loss or damage resulting directly or indirectly arising out of or resulting from such failure and Lessee at Lessee’s option, may declare this Agreement to be null and void.

Section 6. Utilities and Other Services. Owner agrees to furnish the following utilities and services at Owner's expense during normal business hours:
a. Electricity for normal lighting and power for office use. Special or additional electrical requirements over and above the standard for general office uses will be charged directly to Lessee.
b. Heating/Cooling.
c. Hot and cold water.
d. Routine maintenance.
e. General/shared security for the Site.

Any and all other types of utilities (e.g. telephone, cable, etc.) and services shall be at the sole expense and responsibility of the Lessee. Prior written approval shall be required for the installation of any utility and/or service that will involve physical alteration of the Premises and/or Site. Lessee shall reimburse Owner for the cost of repairing any and all damages to the Premises and/or Site caused directly or indirectly by Lessee's utility or service provider or its equipment.

Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
5 Owner shall in no way be liable or responsible for any loss, damage or expense that Lessee may sustain or incur by reason of any change, failure, interference, disruption or defect in the supply or character of the utilities and services supplied to Premises and/or Site, unless directly caused by the active negligence or willful misconduct of the Owner.

Section 7. Assignment and Subletting. Lessee agrees not to sublet the whole or part of the Premises, assign the Lease nor permit the use of the Premises by anyone other than the Lessee, its employees, business invitees, customers and patrons without in each case first securing the written consent of the Owner. Any attempted assignment or subletting of this Lease without the written consent of the Owner constitutes fraud and this Agreement shall be null and void.

Section 8. Alterations and Additions. Lessee shall not make any alterations or construct any additions or improvements in or on the Site and/or the Premises until the Owner has been provided with said plans and specifications for the project. Once the Owner has been provided with said plans and specifications, Owner shall have a fifteen (15) day minimum review period before granting Lessee approval or disapproval of the project in writing. Lessee shall, at the time of the request, specify if they desire to retain ownership and/or possession of the alteration, addition, or improvement subject to plan review by Owner at Lessee’s expense.

Owner agrees that except for structural alterations, the Lessee may remove, during or at the expiration or other termination of the term of this Lease, or of any extension or holdover period thereof, as the case may be, personal property placed or installed in or upon the Site and/or the Premises by the Lessee or under its authority. Any personal property, improvements or additions not removed by Lessee within thirty (30) days after the end of the term, or any extension or holdover period thereof, shall automatically become the property of Owner.

Lessee shall repair any damage to the Site and/or the Premises caused by Lessee’s installation and/or removal of its personal property, alterations, improvements or additions.

Lessee shall, at its sole cost and expense, be allowed to place its typical signage on the Building on the Site upon the Owner's advance written approval.

Section 9. Repairs and Maintenance. Owner shall not be responsible to make any repairs or alterations to the Premises, excepting due to reasonable normal wear and tear, and Lessee assumes any and all cost and liability for the repair and maintenance of the Premises leased herein, unless such repairs, alterations or maintenance are due to Owner’s negligence or willful misconduct.

Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
6 Lessee agrees to repair any damage caused by Lessee, its employees, contractors, agents or invitees, negligently or otherwise, at its own expense, and maintain the Premises leased and to return said Premises to Owner in as good order, repair and condition as the same were in at the commencement of this Lease. Lessee must obtain prior written approval from the Owner prior to commencing any repairs to the leased Premises.

Lessee shall continue to maintain said Premises in good repair and tenable condition and in compliance with all health, safety and sanitation laws, ordinances and regulations of the State of California and local authorities throughout the term of the Lease.

Lessee agrees to keep Premises in good order and condition at their sole cost and expense. All work done by Lessee on the Premises shall be done in a lawful manner and in conformity with all applicable laws, ordinances and regulations. The Premises shall be kept free from any and all liens and charges on account of labor or materials used in contribution to any work thereon.

Unless otherwise required by law or expressly provided for within this Lease Agreement, Owner shall have no liability to Lessee for any condition on the Premises leased herein and Lessee agrees that it has inspected the same, knows the condition and takes this Lease with the Premises in its present condition. Lessee agrees to hold the Owner harmless from any and all liability arising out of or in connection with the use for the Premises leased here by the Lessee, its agents, employees business invitees, customers and patrons, except to the extent any such liability is attributable to Owner’s negligence or willful misconduct.

Section 10. Insurance. Lessee shall furnish certificates of insurance, along with endorsements, issued to Owner substantiating the fact that it has taken out the specified insurance for the term covered by this Lease, or any extension or holdover period thereof, with an insurance carrier acceptable to the Owner under forms satisfactory to the Owner. Each certificate shall bear an endorsement precluding cancellation or reduction in coverage of any policy covered by such certificate except upon at least thirty (30) days prior written notice to Owner. It is agreed that Owner shall not be liable for the payment of any premiums or assessments on the insurance required.

Lessee shall present evidence of required insurance and certificate of endorsement to Owner no later than the commencement date of this Lease and each and every lease year thereafter. The Lessee shall not occupy the Premises until the Owner has received and approved the required certification. Failure on the part of the Lessee to procure or maintain insurance shall constitute a Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
7 material breach upon which the Owner may immediately terminate this Lease Agreement.

All insurance required hereunder shall be primary with respect to any insurance maintained by the City and shall not call on the City’s program for contributions. Program(s) of insurance shall include:
a. General Liability. Lessee shall provide and maintain at its own expense during the term of this Lease Agreement a policy of Commercial General Liability Insurance, inclusive of personal injury liability and broad form property damage coverage, in an amount not less than One Million Dollars ($1,000,000) per occurrence. The coverage shall be written on an occurrence basis. Claims made coverage is not acceptable.
b. Workers’ Compensation Insurance. Lessee shall provide and maintain at its own expense during the term of this Agreement a program of Workers’ Compensation Insurance and Employer’s Liability Insurance in an amount and form to meet all applicable requirements of the State Labor Code and which specifically covers all persons providing services by or on behalf of the Lessee and all risks to such persons under the Agreement. c. Fire and Casualty Insurance. Lessee shall maintain fire insurance on such party’s own equipment and property or to adequately self-insure the same.

Lessee shall provide, or cause to be provided, and maintained at its sole cost property insurance in the amount of the value of the improvements on the Premises on a replacement cost basis. The property insurance shall insure against the perils of fire (with extended coverage), theft, vandalism, malicious mischief, collapse, flood, earthquake, windstorm and physical loss or damage.

Owner will not keep improvements which are constructed or installed and owned by Lessee under the provisions of this Lease insured against fire or casualty, and Lessee will make no claim of any nature against Owner by reason of any damage to the business or property of Lessee in the event of damage or destruction by fire or other cause, arising other than from or out of negligence or willful misconduct of agents or employees of the Owner in the course of their employment.
d. Insurance Endorsements. The liability insurance policy(ies) shall be endorsed with the following language:
(1) The City of Compton and its respective elected and
appointed officers, officials, employees, agents and volunteers are to be named and covered as “additional insureds” with respect to liability arising out of the activities of the Lessee.
(2) The insurer waives all rights of subrogation against the City.

Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
8 (3) Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City.
(4) Identify the leased Premises covered by the policy(ies) and the identity of the insured(s).
e. Contractor’s Insurance Requirements. Lessee shall require that any contractors and subcontractors used to perform improvements/repairs to the building structure and Premises as provided in Sections 8 and 9 of this Lease Agreement to provide and maintain during the entire period of performing improvements/repairs the following programs of insurance:
(1) A policy of Commercial General Liability Insurance, inclusive of personal injury liability and broad form property damage coverage, in an amount not less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) general aggregate. The coverage shall be written on an occurrence basis. Claims made coverage is not acceptable. (2) A program of Workers’ Compensation Insurance and Employer’s Liability Insurance in an amount and form to meet all applicable requirements of the State Labor Code and which specifically covers all persons providing services by or on behalf of the contractor and all risks to such persons. (3) A program of Automobile Liability Insurance with a limit of liability of not less than One Million Dollars ($1,000,000.00) for each accident. Such insurance shall include coverage for all “owned”, “hired” and “non-owned” vehicles, or coverage for “any auto”.
(4) The Contractor(s) liability insurance policy(ies) shall be endorsed with the following language: The City and its respective elected and appointed officers, officials, employees, agents and volunteers are to be named and covered as “additional insureds” with respect to liability arising out of the activities of the contractor.

Insurance coverage specified herein constitutes the minimum requirements and said requirements shall in no way lessen or limit the liability of the Lessee and/or its contractors and subcontractors under the terms of the Lease Agreement. Lessee shall procure and maintain, at its own costs and expense, any additional kinds and amounts of insurance that, in its own judgment, may be necessary relating to Lessee’s use of the Premises and improvement/repairs made to the Premises.

Section 11. Losses. Owner shall not be responsible for losses or damage to personal property, equipment or materials of Lessee. Owner will not keep improvements which are constructed or installed and owned by Lessee under the provisions of this Lease insured against fire or casualty, and Lessee will make no Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
9 claim of any nature against Owner by reason of any damage to the business or property of Lessee in the event of damage or destruction by fire or other cause, arising other than from or out of the gross negligence or willful misconduct of agents or employees of the Owner in the course of their employment.

Section 12. Damage or Destruction.
a. Termination of Lease. If the entire Premises or any material portion thereof are damaged or destroyed by earthquake or other violent action of the elements, or by fire or other casualty such that it is difficult or impossible for Lessee to continue operating its business thereon, then either Owner or Lessee may cancel this Lease as of the date of damage or destruction by delivering written notice to the other within thirty (30) days following the damage or destruction. If the Lease is cancelled, Lessee shall surrender the Premises and shall not be obligated for any further rental payment and Owner shall refund any unearned rent paid in advance by Lessee, calculated at a daily rate based on the regular monthly rental.

Repair of Premises. In the event of any lesser damage by casualty (other than that caused by or do the actions/inactions of the Lessee), Owner shall, at Owner's cost and expense, promptly repair the same to the extent Owner's insurance proceeds are made available to Owner therefor and provided that (a) such repairs, in Owner's reasonable good faith opinion, can be commenced within thirty (30) days of the event which necessitated the repair and restoration, unless it is not reasonably possible to commence repair and restoration within thirty (30) days from the date of such damage or destruction (without payment of overtime or other premiums) and (b) the cost of such repairs, in Owner's reasonable good faith opinion, will not exceed 50% of the then replacement cost of the Site. If Owner is not required to repair such damage or destruction, then Owner shall, within 30 days from the date of such damage or destruction, either (i) notify Lessee in writing of Owner's election to repair such damage or destruction, in which event Owner shall promptly repair the same, or (ii) notify Lessee in writing of Owner's election to immediately terminate this Lease, in which event this Lease is terminated effective as of the date of such damage or destruction. Lessee may terminate this Lease effective as of the date of any such damage or destruction if Lessee reasonably determines in its good faith opinion that such damage or destruction substantially impairs the satisfactory operation of the Lessee's operations by notifying Owner in writing of Lessee's election to terminate not later than 30 days after the date of such damage or destruction.

Loss Caused by Lessee. If the Premises are wholly or partially damaged or destroyed as a result of the gross negligence or willful misconduct or omission of Lessee, Lessee shall forthwith diligently undertake to repair or restore all such damage destruction at Lessee's sole cost and expense. This Lease shall continue in full force and effect without any abatement or reduction in rent or Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
10 other payments owed by Lessee, and this obligation of Lessee to repair or restore the Premises shall survive the cancellation of this Lease.

Exclusive Remedy. This Section 12 shall be Lessee's sole and exclusive remedy in the event of damage or destruction of the Premises, and Lessee waives and releases Lessee's rights under California Civil Code Section 1932 and 1933(4).

No damages, compensation or claim shall be payable by Owner for any inconvenience, any interruption or cessation of Lessee's business, or any annoyance, arising from any damage or destruction of all or any portion of the Premises.

Section 13. Hazard Materials. Lessee shall not use any Hazardous Materials in/or on Site or the Premises, except as necessary in the ordinary course of business and in full compliance with all Environmental Laws. Lessee will promptly notify Owner of any release or presence of any Hazardous Material in/on the Premises of which Lessee becomes aware.
a. Remediation. If Hazardous Materials are released at the Site and/or Premises by Lessee, its agents, employees, or contractors, then Lessee is solely responsible for the removal and/or remediation of any Hazardous Materials to the extent required by governmental authorities in compliance with applicable Environmental Laws.
b. Indemnification. Lessee shall indemnify and hold Owner harmless from and against any and all claims, actions, suits, proceedings, loss, liabilities, damages, fines, costs, or expense (including reasonable attorneys’ fees, consultants’ fees, investigation and laboratory fees, court costs, and litigation expenses), which arise from the presence of Hazardous Materials at the Site and/or Premises released by Lessee or its agents, employees, or contractors.

Section 14. Default. Lessee shall pay said rent to the Owner without deduction, default or delay. In the event of the failure of Lessee to do so, or in the event of a breach of any other terms, covenants or conditions herein contained on the part of Lessee to be kept and performed and if such default continues for a period of thirty (30) days after receipt of written notice from Owner to Lessee of such default, this Lease may be terminated. Owner may not terminate the Lease if (a) Lessee cures the default within the thirty (30) day period after notice of default is given, or (b) the default cannot reasonably be cured within thirty (30) days after notice of default is given, but Lessee reasonably commences to cure the default within the thirty (30) day period and diligently and in good faith continues to cure the default. In the event of termination of this Lease, it shall be lawful for Owner to reenter into and upon the Premises and every part thereof and to remove and store at Lessee’s expense all property therefrom and to repossess and occupy the Premises. In addition thereto, Owner shall have such other rights or remedies as may be provided for by law.

Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
11 Section 15. Holding Over. In case Lessee holds over beyond the term herein provided with the consent, express or implied, of the Owner, such tenancy shall be from month-to-month only, subject to the same terms and conditions of this Lease, but shall not be a renewal hereof. Such month-to-month tenancy shall be terminable on thirty (30) days written notice by either party to the other party.

Section 16. Cancellation Provision. Notwithstanding any other provisions contained herein, either party shall have the right to cancel this Lease, without cause, at anytime, upon thirty (30) days prior written notice to the other party.

Section 17. Owner’s Access. Lessee agrees to permit the Owner or Owner’s authorized agents, upon reasonable advance notice, free access to the Premises at all reasonable times for the purpose of inspection of the Premises or for making necessary alterations, improvements or major repairs.

Section 18. Discrimination. The Lessee herein covenants by and for itself, its heirs, executors, administrator, and assigns, and all persons claiming under or through it that this Lease is made, accepted and subject to the following conditions:

That there shall be no discrimination against or segregation of any person or group of persons, on account of race, color, creed, religion, sex, marital status, national origin, or ancestry, the leasing, subleasing, transferring, use, occupancy, tenure, enjoyment of the Premises herein leased nor shall the Lessee itself, or any person claiming under or through it, establish or permit any such practice or practices of discrimination or segregation with referenced to the selection, location, number, use of occupancy, of Lessees or vendees in the Premises herein leased.

Section 19. Indemnification. Lessee shall indemnify and save harmless the Owner, its officials, officers, employees, agents and volunteers (collectively hereafter the “Owner”), against any and all damages to property or injuries to or death of any person or persons, and shall defend, indemnify and save the Owner from any and all liability and expense, including 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 in any way resulting from or arising out of Lessee’s, its employees, contractors, agents or invitees negligent or intentional acts in or on the Premises, or from conduct of Lessee, its employees, contractors, agents or invitees practice or business from any activity, work or things done.

This indemnification and hold harmless obligation does not extend to claims arising out of the sole negligence or willful misconduct of the Owner.

Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
12 Section 20. Partnership Disclaimer. Lessee and any and all agents of Lessee shall act in an independent capacity and not as officers or employees of the Owner. Nothing herein contained shall be construed as constituting the parties herein as partners.

Section 21. Vacating Premises. Lessee shall, on the last day of said term or sooner termination of this Lease, peaceably and quietly leave, surrender and yield up to the Owner, the Premises in good order, condition and repair, reasonable use and wear thereof and damage by acts of nature, excepted.

Section 22. Compliance with Laws. Lessee shall at its sole cost and expense, comply with all the laws and requirements of all municipal, county, state and federal authorities now in force, or which may hereafter be in force pertaining to the Premises and use of the Premises as provided by this Lease.

Section 23. Easements and Right of Way. This Lease is subject to all existing easements and right of way. Owner further reserves the right to grant additional public utility easements as may be necessary and Lessee hereby consents to the granting of any such easements. The public utility will be required to reimburse Lessee for any damages suffered by Lessee caused by the construction work on the easement area.

Section 24. Parking Access. Unless specifically provided herein, if off-street parking is provided at the Site of the Premises, Lessee, its employees and invitees may have equal access to non-restricted/non-reserved parking spaces provided to all Lessees on a first-come, first-served basis.

Section 25. Relocation. Lessee acknowledges that Lessee, its employees, contractors, subordinates and assigns are not entitled to any Relocation Payment or Relocation Advisory Assistance due to their occupancy of the Premises.

Section 26. Failure to Perform.In the event of the failure, neglect or refusal of Lessee to do, or perform work, or any part thereof, of any act or thing in this Lease provided to be done and performed by Lessee, Owner shall, at its option, have the right to do and perform the same, and Lessee hereby covenants and agrees to pay Owner the costs thereof on demand.

Section 27. Binding on Successors. Each and all of the terms and agreements herein contained shall be binding upon and shall inure to the benefit of the successors in interest of the Owner, and wherever the context permits or requires the successors in interest to the Lessee.

Section 28. Amendments. This Lease Agreement may be modified or amended only be written document executed by both Lessee and Owner’s City Manager and approved as to form by the City Attorney. Such document shall Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
13 expressly state that it is intended by the parties to amend the terms and conditions of this Lease Agreement.

Section 29. Waivers. A waiver by either party to this Agreement of any breach of any terms, covenants or condition contained herein shall not be deemed to be a waiver of any subsequent breach of the same or any other term, covenant or condition contained herein, whether of the same or a different character.

Section 30. Governing Law and Severability. This Agreement shall be governed by and construed under the laws of the State of California. In the event of litigation between the parties, venue in state trial courts shall lie exclusively in the County of Los Angeles.

Should any part of this Agreement be declared by a final decision by a court or tribunal of competent jurisdiction to be unconstitutional, invalid, or beyond the authority of either party to enter into or carry out, such decision shall not affect the validity of the remainder of this Agreement, which shall continue in full force and effect, provided that the remainder of this Agreement, absent the unexcised portion, can be reasonably interpreted to give effect to the intentions of the parties.

Section 31. Notices. All notices, demands or requests to be given under this Lease Agreement shall be given in writing and conclusively shall be deemed received when: (a) delivered personally, or (b) on the fifth (5th) business day after the deposit thereof in the United States mail, postage prepaid, and addressed as hereinafter provided, or (c) one business day after send by facsimile transmission.

To OWNER: City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: Director, General Services Department
(310) 605-5519
(310) 605-1753 – fax.

With copy to: City of Compton
205 South Willowbrook Avenue
Compton, California 90220
Attn: City Manager
Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
14 To LESSEE: Volunteers of America
3600 Wilshire Blvd
Los Angeles, California 90010
Attn: Veronica Lara, Chief Operting Officer
(213) 389-1500
Section 32. Entire Agreement. This Lease and any exhibits or attachments hereto and incorporated herein constitute the entire agreement of Owner and Lessee. There are no agreements, terms, conditions or obligations other than those set forth herein.

This Lease shall supersede all previous communications, representations or agreements, either verbal or written between Owner and Lessee. This agreement may be modified only by written agreement signed by both Owner and Lessee.

IN WITNESS WHEREOF, Lessee has executed this Lease and the Owner, by its City Manager, who is authorized to do so, has executed this Lease.

VOLUNTEERS OF AMERICA/LESSEE
By __________________________________ Dated: ______________ Veronica Lara, Chief Operating Officer

CITY OF COMPTON/OWNER
Recommended for Approval:

By __________________________________ Dated: ______________ Nebraska Jones, Director
General Services Department
Approved by:

Lease Agreement – Volunteers of America
700 North Bullis Road, Compton
March 1, 2025 – April 30, 2028 / Resolution No. ****
15 By __________________________________ Dated: ______________ Willie A. Hopkins, Jr., City Manager
Approved as to form:

By _________________________________ Dated: ______________ Eric J. Perrodin, City Attorney
ATTEST:

Dated: _________________ By _____________________________ Santra D. Zurita, City Clerk
Encl:

Resolution No. _________

March 11, 2025
TO: MAYOR AND CITY COUNCIL
FROM: CITY MANAGER
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

COMPTON DECLARING ITS INTENT TO ESTABLISH AN

UNDERGROUND UTILITY DISTRICT IN ACCORDANCE WITH
SOUTHERN CALIFORNIA EDISION’S RULE 20A, SECTION
5896.8 OF THE CALIFORNIA STREETS AND HIGHWAYS CODE
AND THE COMPTON MUNICIPAL CODE SECTION 26-4

SUMMARY
Adoption of this Resolution declares the City of Compton’s intent to establish an Underground Utility District in accordance with the Southern California Edison’s (SCE) Rule 20A, Section 5896.8 of the California Streets and Highways Code and the Compton Municipal Code Section 26-4.

BACKGROUND
The California Public Utilities Commission’s (CPUC) Rule 20 program sets policies and procedures for the conversion of overhead power lines and other equipment to underground facilities, a process called “undergrounding”.

Southern California Edison (SCE) allocates rate funds (Rule 20A) to communities for undergrounding based on previous allocations, the ratio of customers served by overhead facilities to all the customers in the community, and the fraction that customers in the community represent of all SCE customers. In order to expend Rule 20A funds, a municipality must first create an Underground Utility District identifying where the funds would be expended.

Since funds are limited and undergrounding costs are significant, local governments frequently accumulate their Rule 20A allocations before starting an undergrounding project. The City of Compton currently has $5,668,365 in work credits accumulated for this purpose, but has not yet created an Underground Utility District.

Rule 20A allows Southern California Edison (Edison) to remove poles, overhead wires and associated overhead structures, and the underground installation of wire and facilities for supplying electricity, communication and similar services to Underground Utility Districts.

13. Staff Report – Resolution Authorizing the Intent of Underground Utility District March 11, 2025

Southern California Edison Rule 20A facilitates the conversion of overhead electric facilities to underground systems in areas where the public benefit is demonstrated.

California Streets and Highways Code
In anticipation of making such a finding, the City Council will adopt a resolution of intention, pursuant to Section 5896.8 of the Streets and Highways Code, declaring its intention to order the conversion of overhead utility wires and related facilities to designated underground locations.

Pursuant to the California Streets and Highways Code and the Compton Municipal Code, the City of Compton is authorized to establish an Underground Utility District in order to facilitate the underground installation of overhead utility wires and related facilities. It has been recommended that an Underground Utility District be established in an area of the City more specifically described below and hereinafter referred to as the “Designated Area.

Designated Area
The City of Compton has identified Myrrh Street (from Oleander Avenue to Acacia Avenue) and Acacia Avenue (from Myrrh Street to Alondra Boulevard) as a priority location for undergrounding utilities due to safety concerns, aesthetic improvements, and alignment with the city planning goals. This area has been selected based on high pedestrian activity, visual enhancement goals, and traffic concerns.

The City Council has determined that a public hearing is necessary to provide an opportunity to hear comments from all interested persons, including the utility companies and residents affected by the proposed plan to establish an Underground Utility District in the Designated Area.

Compton Municipal Code Section 26-4
The Compton Municipal Code Section 26-4 empowers the City Council to designate areas as Underground Utility Districts upon finding that the public necessity, health, safety, or welfare requires such action. The formal designation of a District follows a public hearing, at which time, the Council may adopt a resolution describing the boundaries and setting a timeline for the removal and underground installation of utilities.

In connection with establishing an undergrounding utility district and pursuant to the Compton Municipal Code Section 26-4, the City Council may call public hearings to determine whether the public necessity, health, safety or welfare requires: (1) the removal of utility poles, overhead wires and associated overhead Staff Report – Resolution Authorizing the Intent of Underground Utility District March 11, 2025

structures within designated areas, and (2) the underground installation of wires and facilities supplying electricity, communication, or similar or associated service.

Findings
Pursuant to the Compton Municipal Code Section 26-4, staff has determined that:

1. Public Necessity: The undergrounding of utilities in this area will improve access and reduce potential hazards related to overhead utility lines.

2. Health and Safety: Removal of overhead lines minimizes risks associated with severe weather events, vehicle collisions, and fire hazards.

3. Welfare: Undergrounding enhances the visual appeal of the area, contributing to economic development and improved quality of life for residents.

Next Steps
The City intends to proceed with the necessary steps leading to the formal establishment of the Underground Utility District, including:
 Notification of affected property owners and stakeholders  Coordination with Southern California Edison and other utility providers  Preparation of a detailed engineering and construction schedule  Scheduling of a public hearing for City Council’s consideration and final approval

STATEMENT OF ISSUE
In order for the City of Compton to declare its intent to establish an Underground Utility District in accordance with the Southern California Edison’s Rule 20A, Section 5896.8 of the California Streets and Highways Code, and the Compton Municipal Code Section 26-4, City Council’s authorization is necessary.

ALTERNATIVE
The Rule 20A work credits in the amount of $5,668,365 will expired in June 2025.

Therefore, no other alternative is being proposed at this time.

FISCAL IMPACT
There is no fiscal impact.

Staff Report – Resolution Authorizing the Intent of Underground Utility District March 11, 2025

RECOMMENDATION
Staff recommends the City Council adopt the attached Resolution.

JOHN D. STRICKLAND, JR.

DIRECTOR OF PUBLIC WORKS
APPROVED FOR FORWARDING:

WILLIE A. HOPKINS, JR.

CITY MANAGER
RESOLUTION NO. _____________

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON

DECLARING ITS INTENT TO ESTABLISH AN UNDERGROUND UTILITY DISTRICT IN ACCORDANCE WITH SOUTHERN CALIFORNIA EDISON’S RULE 20A, SECTION 5896.8 OF THE CALIFORNIA STREETS AND
HIGHWAYS CODE AND THE COMPTON MUNICIPAL CODE SECTION 26-4 WHEREAS, the California Public Utilities Commission’s (CPUC) Rule 20 program sets policies and procedures for the conversion of overhead power lines and other equipment to underground facilities, a process called “undergrounding”; and WHEREAS, Southern California Edison (SCE) allocates rate funds (Rule 20A) to communities for undergrounding based on previous allocations, the ratio of customers served by overhead facilities to all the customers in the community, and the fraction that customers in the community represent of all SCE customers; and WHEREAS, in order to expend Rule 20A funds, a municipality must first create an Underground Utility District identifying where the funds would be expended; and WHEREAS, since funds are limited and undergrounding costs are significant, local governments frequently accumulate their Rule 20A allocations before starting an undergrounding project; and
WHEREAS, the City of Compton currently has $5,668,365 in funding accumulated for this purpose, but has not yet created an Underground Utility District; and WHEREAS, Rule 20A allows Southern California Edison (Edison) to remove poles, overhead wires and associated overhead structures, and the underground installation of wire and facilities for supplying electricity, communication and similar services to Underground Utility Districts; and
WHEREAS, Southern California Edison Rule 20A facilitates the conversion of overhead electric facilities to underground systems in areas where the public benefit is demonstrated; and
WHEREAS, in anticipation of making such a finding, the City Council will adopt a resolution of intention, pursuant to Section 5896.8 of the Streets and Highway Code, declaring its intention to order the conversion of overhead utility wires and related facilities to designated underground locations; and
WHEREAS, pursuant to the California Streets and Highways Code and the Compton Municipal Code, the City of Compton is authorized to establish an Underground Utility District in order to facilitate the underground installation of overhead utility wires and related facilities and it has been recommended that an Underground Utility District be established in an area of the City more specifically described below and hereinafter referred to as the “Designated Area; and WHEREAS, the City of Compton has identified Myrrh Street (from Oleander Avenue to Acacia Avenue) and Acacia Avenue (from Myrrh Street to Alondra Boulevard) as a priority location for undergrounding utilities due to safety concerns, aesthetic improvements, and alignment with the city planning goals and this area has been selected based on high pedestrian activity, visual enhancement goals, and traffic concerns; and
WHEREAS, the City Council has determined that a public hearing is necessary to provide an opportunity to hear comments from all interested persons, including the utility companies and residents affected by the proposed plan to establish an Underground Utility District in the Designated Area; and Resolution No. __________

WHEREAS, the Compton Municipal Code Section 26-4 empowers the City Council to designate areas as Underground Utility Districts upon finding that the public necessity, health, safety, or welfare requires such action; and WHEREAS, the formal designation of a District follows a public hearing, at which time, the Council may adopt a resolution describing the boundaries and setting a timeline for the removal and underground installation of utilities; and WHEREAS, in connection with establishing an Undergrounding Utility District and pursuant to the Compton Municipal Code Section 26-4, the City Council may call public hearings to determine whether the public necessity, health, safety or welfare requires:
(1) the removal of utility poles, overhead wires and associated overhead structures within designated areas, and (2) the underground installation of wires and facilities supplying electricity, communication, or similar or associated service; and WHEREAS, pursuant to the Compton Municipal Code Section 26-4, staff has determined that:

1. Public Necessity: The undergrounding of utilities in this area will improve access and reduce potential hazards related to overhead utility lines.

2. Health and Safety: Removal of overhead lines minimizes risks associated with severe weather events, vehicle collisions, and fire hazards.

3. Welfare: Undergrounding enhances the visual appeal of the area, contributing to economic development and improved quality of life for residents. ; and
WHEREAS, the City intends to proceed with the necessary steps leading to the formal establishment of the Underground Utility District, including:
 Notification of affected property owners and stakeholders  Coordination with Southern California Edison and other utility providers  Preparation of a detailed engineering and construction schedule  Scheduling of a public hearing for City Council’s consideration and final approval ; and
WHEREAS, in order for the City of Compton to declare its intent to establish an Underground Utility District in accordance with the Southern California Edison’s Rule 20A, Section 5896.8 of the California Streets and Highways Code, and the Compton Municipal Code Section 26-4, City Council’s authorization is necessary.

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

SECTION 1. That the City Council will adopt a resolution of intention, pursuant to Section 5896.8 of the Streets and Highways Code declaring its intention to order the conversion of overhead utility wires and related facilities to designated underground locations.

SECTION 2. That pursuant to the California Streets and Highways Code and the Compton Municipal Code, the City of Compton is authorized to establish and Underground Utility District in order to facilitate the underground installation of overhead utility wires, and related facilities and it has been recommended that an Underground Utility District be established.

Resolution No. __________

SECTION 3. That the City of Compton has identified Myrrh Street (from Oleander Avenue to Acacia Avenue) and Acacia Avenue (from Myrrh Street to Alondra Boulevard) as a priority location for undergrounding utilities due to safety concerns, aesthetic improvements, and alignment with the city planning goals and this area has been selected based on high pedestrian activity, visual enhancement goals, and traffic concerns.

SECTION 4. That the Compton Municipal Code Section 26-4 empowers the City Council to designate areas as Underground Utility Districts upon finding that the public necessity, health, safety, or welfare requires such action.

SECTION 5. That the Mayor shall sign and the City Clerk shall attest to the adoption of this Resolution.

ADOPTED this _________ day of _____________, 2025.
________________________________

EMMA SHARIF

MAYOR OF THE CITY OF COMPTON
ATTEST:
___________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON

STATE OF CALIFORNIA

COUNTY OF LOS ANGELES
CITY OF COMPTON: ss
I, Satra D. Zurita, City Clerk of the City of Compton, hereby certify that the foregoing Resolution was passed and 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 ________________, 2025.

That said Resolution was adopted by the following vote, to wit:

AYES: COUNCILMEMBERSNOES: COUNCILMEMBERSABSTAIN: COUNCILMEMBERSABSENT: COUNCILMEMBERS- ___________________________________
SATRA D. ZURITA

CITY CLERK OF THE CITY OF COMPTON
Paul D. Reyes
Project Manager
Rule 20 Project Management
January 24, 2025
City of Compton
Willie Hopkins
City Manager
220 E Mountain View St # A
Barstow, CA
SUBJECT: Compton’s 2024 Rule 20A Work Credit Balance
Dear Willie Hopkins:

Southern California Edison (SCE) has filed with the California Public Utilities Commission (CPUC) its SCE Electric Rule 20 Programs annual report. This letter serves as our Rule 20 Annual Update to you regarding your status as it relates to the Rule 20A program.

On June 3, 2021, the California Public Utility Commission (CPUC) issued a Decision that revises the CPUC’s Electric Rule 20 program. The Decision discontinues the authorization of new Electric Rule 20A work credit allocations. As such, there are no work credits being allocated for 2025. As of this writing, Compton’s work credit balance is $5,668,365.

Please note Compton currently has an Inactive status as of January 1, 2025.

Any work credits that have not been allocated to a community with an active Rule 20 A project will expire in June 2025. Pursuant to D.23-06-008 with effective date of June 8, 2023, any Rule 20A work credit that has not been allocated to a community with an Active Rule 20A Project within two years of the effective date of this decision shall be deemed expired. Any Rule 20A work credit that has not been deducted from a community’s work credit balance by December 31, 2033, shall be deemed expired.

Cities and counties could maintain active underground programs to avoid reallocation of Rule 20A work credits. To qualify as a community with an active underground program, the governing body must have adopted an ordinance creating an underground district that meets the criteria in CPUC Resolution E-4971 and must have an identified project that meets the Rule 20 Tariff criteria and does not exceed the community’s work credit balance.

SCE has determined that your community has been deemed inactive. Compton’s current work credit balance of $5,668,365 is set to expire in June of 2025, and will be eligible for reallocation to an active community after this date. Should you desire to retain your work credits, and avoid expiration/reallocation, both of the following conditions must be completed prior to June 2025:
1) A suitable project location must be identified, where the estimated cost (as determined by SCE) of the project will not exceed your current work credit balance. a. SCE must provide the estimated cost for the project, please note that this process will take between 6-8 weeks for SCE to complete at each project location identified.

Paul D. Reyes
Project Manager
Rule 20 Project Management
b. SCE cannot guarantee completion of the project cost estimate for project submissions made later than April 1, 2025. All submissions for a cost estimate after this date will be considered at the community’s risk.
2) The governing body must have adopted an ordinance creating an underground district that meets the criteria in CPUC Resolution E-4971
Please note that both of the above conditions must be satisfied prior to June 2025, in order for your work credit balance to be retained. However, if both conditions are not met, your work credit balance will be subject to reallocation and/or expiration.

In addition to the conditions above, SCE will be utilizing the following guidelines to determine new project feasibility:

1. The identified project scope must meet the guidelines set in the Rule 20 tariff

2. The project scope must not exceed the available work credit balance for the community.

3. As a guideline SCE utilizes the following figures as a guideline a. Work credit balance less than $900,000 – typically a work credit balance in this range will not support a project that satisfies the requirements of the rule 20A tariff. b. Work credit balance between $900,001-$1,499,999 – a work credit balance in this range may support a project, however the SCE project manager will need to closely analyze the site and project scope. Each aspect of the project’s scope (street crossings, services, multiple circuits, easements, etc.) will increase project cost and will decrease project viability.
c. Work credit balance greater than $1,500,000 – Typically these work credit balances are able to support a Rule 20A project. Please contact your SCE project manager to discuss project scope.
d. Items a, b and c are guidelines, please contact your SCE project manager should you believe that you have identified a project scope that could be an exception case to the guidelines above.

4. All new projects initiated, must have a suitable project scope for the project to be completed prior to December 31, 2033. Your SCE project manager will assess construction viability while they complete the cost estimate.

Please note that proposed project scope with sufficient work credits, may be denied due to the project scope being infeasible to complete prior to December 31, 2033 For your review, SCE’s Rule 20 Annual Report (public version) can be found at:
https://www.sce.com/regulatory/distribution-manuals/rule20-underground-conversions Please feel free to contact me if you have any questions about Rule 20A or any other matters affecting SCE’s service to you.

Paul D. Reyes
Project Manager
Rule 20 Project Management
Regards,
Paul D. Reyes
Rule 20 Project Manager
cc: Paul D. Reyes, Manager, Rule 20 Project Management
David Ford, Government Relations Manager
Talisa Lee, Advisor, Rule 20 Project Management

March 11, 2025
TO: HONORABLE MAYOR AND CITY COUNCIL MEMBERS
FROM: COMMUNITY DEVELOPMENT DEPARTMENT
SUBJECT: A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF COMPTON RESCINDING RESOLUTION 25817 AND

AUTHORIZING THE CITY MANAGER TO AMEND THE
COMMUNITY DEVELOPMENT DEPARTMENT 2024 – 2025

FISCAL YEAR BUDGET AND TO RATIFY THE PROFESSIONAL

SERVICES AGREEMENT WITH AND ESTABLISH A PURCHASE
ORDER FOR MIG, INC. FOR THE COMPLETION OF THE
COMPREHENSIVE CITYWIDE GENERAL PLAN 2045 UPDATE,

REZONING AND ENVIRONMENTAL IMPACT REPORT
($463,208)

SUMMARY
Adoption of the attached resolution will rescind Resolution 25817 and authorize the city manager to amend the 2024 – 2025 fiscal year budget and to ratify the professional services agreement with and establish a purchase order in the amount of Four Hundred Sixty Three Thousand Two Hundred Eight Three Dollars ($463,208.00) for continued services rendered during the term of the agreement to complete the General Plan 2045. A professional services agreement has already been authorized and executed through Resolution 25,817 adopted April 11, 2023 which expired on June 30, 2024.

BACKGROUND
On April 11, 2023 the City Council approved resolution 25,817 authorizing the City Manager to ratify an existing professional service agreement and to establish a purchase order for the consultant MIG to complete the General Plan 2045, rezoning and Environmental Impact Report. Presently, MIG has worked to complete the draft General Plan 2045, and a draft of the General Plan 2045 for public review has been released on January 28th of 2025 with the goal of bringing the General Plan 2045/Rezoning before City Council for adoption in August of 2025.

Section 65300 of the California Government Code requires the City of Compton to adopt and update a General Plan that contains all the required elements, describes the City’s long term goals for growth and development and identifies policies and programs to achieve those goals. The City’s current 2010 General Plan, adopted in 1991, is obsolete and eleven (11) years out-of-date, leaving the

14. Staff Report
March 11, 2025