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Part I: Implementation & Funding Plan I-26
Development Block Grants (CDBG),16 Opportunity Zones,17 New Market Tax Credits,18 Small Business Administration Loans,19 and EB-5 Immigrant Investor Program.20 Federal funding is also available for local governments and regional collaborations through numerous programs created by the Investment Infrastructure and Jobs Act/Bipartisan Infrastructure Law, CHIPS and Science Act, and Inflation Reduction Act.
Philanthropic organizations also offer funding for place-making infrastructure in public spaces. An example of this type of funding is the Knight Foundation’s Community Grant Program in Long Beach, CA. The funding is used to connect people to the places where they live and to the public life of the community through the design, construction, and programming of inclusive and equitable public spaces.21
Each state, federal, and philanthropic funding mechanism has specific eligibility and reporting criteria that should be evaluated to 16 https://www.hud.gov/program_offices/comm_planning/cdbg 17 https://www.irs.gov/credits-deductions/businesses/opportunity-zones 18 https://www.cdfifund.gov/programs-training/programs/new-markets-tax-credit 19 https://www.sba.gov/funding-programs/loans
20 https://www.uscis.gov/working-in-the-united-states/permanent-workers/eb-5- immigrant-investor-program
determine fit on a project-by-project basis. Use of these funding sources also requires City capacity to identify, apply for, and manage funds.
Property Assessed Clean Energy (PACE)
This model is used for financing energy efficiency and renewable energy improvements on private properties. PACE uses borrowed capital from public or private funds to pay for upfront costs on qualifying improvements, the local government places a property tax assessment secured with a lien on the property, and the property owner pays for the completed work via the assessment, and repayments are remitted back to the lender.22
PACE statutes are enabled at the state level, and local governments provide further authorization of the program. The industry is trending towards more standardized programs administered by third-party entities and a spectrum of involvement by local governments exists.23 This tool is best used in alignment with a city’s 21 https://knightfoundation.org/programs/communities/
22 https://www.energy.gov/sites/prod/files/2017/10/f39/FL1710_WIP_CPACEv2.PDF 23 https://www.energy.gov/scep/slsc/property-assessed-clean-energy-programs
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Part I: Implementation & Funding Plan I-27
energy efficiency/renewable energy goals and when local governments have adequate resources to ensure legal and administrative set up for the program.
The State of California created the Commercial Property Assessed Clean Energy (C-PACE) program to encourage commercial,
industrial, and multi-family property owners to finance energy efficiency and renewable energy improvements through their property tax payment. Note that CRIAs and EIFDs can combine tax increment with PACE funding to further reduce capital cost outlays.
The PACE program can assist with energy efficiency goals but is not expected to attract major investments in Cudahy’s Entertainment District or further the City’s future vision and brand identity. Table 4 provides an overview of each tool in the context of redevelopment targets in Cudahy’s emerging Entertainment District.
Joint Powers Authorities
These agreements allow two or more public agencies to join together and provide more effective or efficient government services (i.e., redevelopment projects, regional transportation projects, etc.). Public agencies can either contract to jointly exercise common powers or form a separate legal entity. The new entity has independent legal rights including the ability to enter into contracts and hold property.
JPAs in California are governed by state Government Code section 6500 and are formed when public agencies enter into agreements that state the powers of the JPA and how those powers will be exercised. The governing bodies of all public agencies involved must approve the agreement for a JPA to be formed.
To note, precedent exists for Successor Agencies to form a JPA for redevelopment purposes (i.e., to pool resources, coordinate redevelopment efforts, and eliminate redundant or overlapping services to reduce local government costs). JPAs can also obtain more favorable rates or bids from outside services to achieve economies of scale.
Use of this tool requires identification of and coordination with a partner jurisdiction in alignment with the City’s goals, capacity to negotiate an agreement, and City Council approval of the agreement. This tool is not considered a primary target by the City of Cudahy due to the desire to maintain autonomy over the City’s decision-making authorities and funding priorities. This tool may prove useful at some point in the future in cases where a regional approach to transportation infrastructure would clearly benefit the City’s interests.
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Part I: Implementation & Funding Plan I-28
Table 4: Cudahy Public-Private Funding Tools Rankings
Rank Tool Description Opportunities/Constraints For Use 1 Real Estate &
Property
• Cities can reimagine publicly owned properties and facilitate development in line with their goals through ground leases, property sales, land banking, and other arrangements with the private sector
• Used once a city has created a database of its assets, assessed the potential market value of public assets,
explored scenarios for development, and estimated the
revenue impact
• Successor sites already identified
• Requires RFPs for action on property and City Council approval
2 Land Use/Zoning • Allow target developments ability to build increased density, reduce site development standards, modify architectural design requirements, and/or reduce parking requirements • Decided locally, weigh costs and benefits of each tool when deciding which to offer for priority developments
• Zoning of entertainment district already established, other work for land use/zoning completed or underway
3 Development
Incentives
• “Concierge” entitlements and permitting provides nonmonetary incentives; reduction of Development Impact Fees is a form of monetary incentive
• Best used when local government has determined which
projects may qualify for fee reductions, exemptions, or waivers and have alternative funding sources to support the cost of infrastructure that the fees would cover
• Requires City Council approval on a case-by-case basis and formation of a new program defining qualifying
projects, application procedures, and ongoing
monitoring and reporting to City Council
4 Tax/Revenue
Rebates
• Businesses pay cities taxes and fees, and a proportion of these can be refunded back to businesses for qualifying activities that cities wish to incentivize
• Fiscal resilience is a primary concern for the City;
rebates may not provide meaningful reimbursement to
close project gaps in the near- to mid-term
5 State, Federal,
and Philanthropic
Funds
• State, federal, and philanthropic entities have numerous funding mechanism available, and each has specific eligibility and reporting criteria that should be evaluated to determine fit on a project-by-project basis
• Requires capacity to apply for and manage grant funds • Projects must align with funding eligibility requirements and some programs require matching funds
6 P3 Delivery
Methods
• Arrangements that P3 partners make to share responsibilities and risks such as project ownership, financing, design, construction, operation, and maintenance between each
other
• Best suited for large, long-term projects
• City capacity needed to identify/ negotiate/coordinate with private sector partner, and private sector benefit that outweighs risk
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Rank Tool Description Opportunities/Constraints For Use 7 Special Districts • Formed by private property owners and businesses who pay a special tax to provide services such as advocacy on behalf of businesses, infrastructure improvements, landscaping, marketing, and planning
• Work best when local businesses in an area have been
organized and are collectively interested in establishing a district and willing to pay additional fees for services • Need local business support and willingness to pay
additional fees, and an organizing entity
• Recommended for mid- to long-term implementation
within Entertainment District as short-term
implementation is expected to place an unreasonable
burden on existing small and independent local
businesses
8 CRIA • Type of regional multi-jurisdiction Tax Increment Financing (TIF) focused on affordable housing
• Eligible projects include: civic infrastructure, mixeduse/affordable housing, business assistance, environmental remediation, roads/circulatory infrastructure, and
wastewater/groundwater
• Must meet disadvantaged eligibility criteria,
demonstrate need and bond servicing requirements,
create 5-person board.
• No voter approval required for formation or bond
issuance; however, plan adoption is subject to one-time majority protest
9 EIFD • Type of Tax Increment Financing (TIF) focused on infrastructure and public/private partnership development • Eligible projects include Industrial structures, mixeduse/affordable housing, Transit projects, wastewater/groundwater, civic infrastructure, parks and open space, environmental remediation, childcare facilities, libraries, roads and bridges
• Must create 5-person Public Financing Authority and
develop District’s Infrastructure Financing Plan (IFP), which outlines the specific projects the District will fund 10 Joint Powers
Authorities
• Agreements allow two or more public agencies to join to provide more effective or efficient government services such as redevelopment and regional transportation projects
• New entity has independent legal rights including the ability to enter into contracts and hold property
• Requires coordination among Cudahy and outside
partner jurisdiction(s), negotiation, and City Council
approval of agreement
• Precedent exists for Successor Agencies to form a JPA for redevelopment purposes
11 PACE • Used for financing energy efficiency and renewable energy improvements on private properties
• Best used in alignment with a city’s energy
efficiency/renewable energy goals and when local
governments have adequate resources to ensure legal and administrative set up for the program
• Can assist with energy efficiency goals but is not
expected to attract major investments in Cudahy’s
Entertainment District or further the City’s future vision and brand identity
Source: City of Cudahy; Urban Land Institute; Willdan, 2023
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Next Steps
Performance Metrics
In the early years of Economic Development Strategic Plan (EDSP) implementation, it is typical for performance metrics to be limited to variables tied to readily available data.
Going forward, performance targets should expand to evaluate annual progress against goals defined by each economic
development recommendation (i.e., increases or decreases in values according to a baseline year benchmark).
Given that the majority of the recommended performance indicators are aspirational at this time, it is reasonable to assume that each variable is starting at zero and that the target of each variable is to increase over the next five to ten years upon adoption of the EDSP.
Table 5: EDSP Performance Metrics
Top 15 Performance Metrics Targets by Economic Development Recommendation
1.0 Internal Capacity Building Initiative 4.0 Small Business Support Program 1: # of Planning & Economic Development Resources (FTEs) 10: # of New Business Licenses Approved for Minority, Women-Owned & Disadvantaged Business Owners
2: # of Formal Strategic Partnerships (Neighboring Jurisdictions, Regional Organizations) 11: # of Small Business Outreach Touchpoints
2.0 Community Identity/Branding Program 5.0 Quality of Life Initiative 3: # of new projects adhering to established architectural guidelines 12: $ Value of Walkability/Mobility Improvements 4: # of new projects including placemaking improvements 13: # of New Neighborhood-Serving Businesses (Community Gathering Sites, Hotel, Pharmacy)
5: # of Examples of City Identity Initiatives Achieved
3.0 Business & Investment Attraction Program 6.0 Major Projects Accelerator Program 6: Tax Base Value ($) 14: $ Value of Private Construction Investment 7: # of New Business Licenses 15: Sq. Ft. of New Entertainment District Commercial Development
8: # of Housing Starts
9: # of Target Business/Developer contracts established 1 Proposed Economic Development Strategic Plan performance metric targets are planning factors subject to change according to the City's economic development priorities and resource availability.
Source: City of Cudahy; International Economic Development Council; Willdan, 2023
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Part II – Demographic & Economic Profile Report Part II – Demographic & Economic Profile Report II – 0 Draft: August 2023
City of Cudahy, CA
Economic Development Strategic Plan 2023
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Part II – Demographic & Economic Profile Report II – 1
Part II: Demographic & Economic Profile Report
I. Community Change & Growth
Population
Table 6 presents historical and projected population estimates for Cudahy, Bell, Bell Gardens, Huntington Park, Maywood, and South Gate.
South Gate has the largest population among the comparison jurisdictions. Cudahy ranks the lowest in population totals compared to the surrounding jurisdictions. However, as a one-square mile city, Cudahy has the densest population in the region.
According to Esri, Cudahy and its surrounding jurisdictions have experienced a slight population decline since 2000 and are projected to continue to decline through 2028.
Cudahy has and is projected to continue to experience a population decrease, but at a slower rate than all other surrounding jurisdictions averaging a -0.21% decrease from 2023 to 2028.
Table 6: Population Growth Trends, Cudahy & Neighboring Jurisdictions, 2023-2028 Population 2023 2028
Projected Net
Change
Cudahy 22,613 22,514 -231
Bell 32,976 32,309 -667
Bell Gardens 38,628 37,850 -778
Huntington Park 50,051 53,113 -938
Maywood 24,668 24,243 -425
South Gate 91,872 90,472 -1,400
TOTAL 260,808 260,501 -4,439
Source: Esri Business Analyst; Willdan, 2023
Notably, Esri calculates population growth projections based on multiple economic indicators including historical housing starts.
California out-migration, existing housing shortage, and cost of living are contributing factors to this trend.
Cudahy’s projected declining population assumes no change in planning interventions like such as the City of Cudahy’s new Entertainment District designation and urban infill housing development.
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Part II – Demographic & Economic Profile Report II – 2
Figure 12: Estimated and Projected Population Growth, 2000-2028 Source: ESRI Business Analyst; Willdan, 2023
70%
80%
90%
100%
110%
120%
130%
140%
150%
2000 2010 2023 2028
Cudahy Bell Bell Gardens
Huntington Park Maywood South Gate
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Household Growth and Size Characteristic
According to the US Census Community Survey and data
reported by ERSI Business Analyst, Cudahy ‘s population is not projected to grow between 2023 to 2028. These
projections are based on historical building permit data and other factors.
Cudahy can manage future growth by facilitating and
accelerating mixed use multifamily housing construction that would eventually surpass the US Community Survey’s
projections.
Table 7: Household Growth Trends, 2023-2028
Number of
Households 2023 2028
Projected Net
Change
Cudahy 5,737 5,739 2
Southeast LA 70,656 70,133 -523
LA County 3,427,635 3,453,233 25,598
Source: ESRI Business Analyst; Willdan, 2023
Cudahy’s average household size continues to be relatively higher than Southeast LA and LA County at 3.94 versus 3.73 and 2.85, respectively.
This metric is highlighted in Cudahy’s Regional Housing Needs Assessment as an indicator of overcrowding and an opportunity for improvement.
Figure 13: Average Household Size (Persons Per Household) Source: ESRI Business Analyst; Willdan, 2023
3.94 3.73
2.85 0.00
0.50 1.00
1.50 2.00
2.50 3.00
3.50 4.00
4.50 Cudahy Southeast LA LA County
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Part II – Demographic & Economic Profile Report II – 4
Age Characteristics
Cudahy is home to predominantly working-age residents and their children. Nearly 42% of Cudahy’s population is aged 25 to 54, with an additional 43.4% of residents who are 24 and younger. Only 7% of Cudahy’s population is of retirement age (65 years or older). On average, the comparison jurisdictions reported 40% of residents who are high school age or younger. Figure 8 compares the age distribution for each of the geographies examined in this analysis.
Figure 14: Age Distribution by Cohort, 2023
Source: ESRI Business Analyst; Willdan, 2023 8.5%
16.6%
8.6%
9.6%
41.9%
7.8%
7.0%
8.2%
16.4%
8.2%
8.4%
42.0%
8.5%
8.3%
8.5%
16.8%
8.2%
9.1%
41.8%
7.9%
7.9%
7.7%
16.0%
7.8%
8.4%
42.4%
8.2%
8.5%
9.2%
17.0%
8.1%
8.5%
42.4%
7.7%
7.5%
8.0%
15.7%
7.7%
8.2%
42.0%
8.8%
9.9%
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
30.0%
35.0%
40.0%
45.0%
0-4 (Pre-K) 5-14 (Elem./MS) 15-19 (HS) 20-24 (Coll.) 24-54 (Prime WF) 55-64 (Late Career) 65+ (Retired) Cudahy Bell Bell Gardens Huntington Park Maywood South Gate
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Part II – Demographic & Economic Profile Report II – 5
Household Income
Household income is an important factor in mixed-use
retail/dining/entertainment and multifamily investment attraction.
Prior to inflation and interest rate pressures, the target threshold for median household incomes was $75,000 per year.
Household income distributions indicate higher concentrations of lower and middle-income households within Cudahy and its neighboring jurisdictions (Figure 12). Cudahy has the second lowest median household income among the comparison jurisdictions, Bell Gardens being the lowest median household income. Higher income households are more concentrated in South Gate and Maywood, compared to Cudahy. However, the projected net change in household incomes within the Southeast LA submarket is expected to generate substantial incremental retail spending power to support new Entertainment District businesses. Taken as a whole, the Southeast LA submarket is a powerful driver of demand for the City of Cudahy’s target retail/dining/entertainment uses.
Figure 15: Projected Net Change in Median Household Income (2023 to 2028) Source: ESRI Business Analyst; Willdan, 2023 $51,563
$53,547
$50,872
$52,854
$55,779
$61,658
$6,041 $6,633 $5,739
$7,769 $7,969
$10,028
$57,604
$60,180
$56,611
$60,623
$63,748
$71,686
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
$70,000
$80,000
Cudahy Bell Bell Gardens Huntington Park Maywood South Gate 2023 2028
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Population by Race
Among all comparison jurisdictions Hispanic residents make up the majority of the population. Residents of Hispanic origin make up over 90% of the population in Cudahy, Bell, Bell Gardens, Maywood, and Huntington Park. Huntington Park also has residents consisting primarily of either Hispanic, White or “Other.” Figure 16: Population by Race1, 2023
1 Persons of Hispanic origin are a subset of other race categories; therefore, totals do not add. The category labeled "Other Race" Includes the Census Categories "Indian American", "Pacific Islander", "Some Other Race Alone" and "Two or More Races" which individually represent a small percentage of the City's and County's population.
Source: ESRI Business Analyst; Willdan, 2022 16.0% 0.9%
3.1%
0.8%
0.2%
61.0%
18.0%
96%
17.9%
0.5%
2.6%
0.8%
0.1%
55.7%
22.3%
94%
13.7%
0.7%
3.2%
0.7%
0.1%
62.4%
19.3%
96%
14.2%
0.8%
2.8%
0.7%
0.1%
61.5%
19.9%
97%
12.9%
0.6%
2.8%
0.4%
0.0%
61.7%
21.6%
97%
14.9%
1.1%
3.4%
0.8%
0.1%
57.7%
22.0%
26%
0%
20%
40%
60%
80%
100%
120%
White Black Amer. Indian/AK
Native
Asian Pacific Islander Other Race Two or More
Races
Hispanic Origin
Cudahy Bell Bell Gardens Huntington Park Maywood South Gate
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Part II – Demographic & Economic Profile Report II – 7
Housing Value and Tenure Characteristics
The share of homeowners compared to renters has generally decreased in Cudahy and Los Angeles County since 2010, while the share of homeowners has remained relatively constant in the Los Angeles MSA. Cudahy has the lowest share of homeowners
compared to the other two geographies, and it is projected to decrease further through 2028. The Los Angeles MSA has the highest projected share of homeowners among the geographies identified with 49.1% of homes projected to be owner occupied by 2027.
Figure 17: Housing by Tenure
Source: ESRI Business Analyst; Willdan, 2023 18.0% 14.1%
14.8%
32.8%
31.5%
32.6%
47.7%
46.1%
46.4%
82.0%
85.9%
85.2%
67.2%
68.5%
67.4%
52.3%
53.9%
53.6%
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
2010 2023 2028 2010 2023 2028 2010 2023 2028
Cudahy Southeast LA LA County
Owner Occupied Renter Occupied
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The lower rates of homeownership in Cudahy can be partially attributed to the low median age as younger households are more likely to own than rent their homes. It can also be attributed to the affordability of housing in Cudahy compared to both the County and the region as rising housing prices make homeownership less attainable for residents.
Figure 16 presents a comparison of current median housing value in Cudahy, Los Angeles County, and the Los Angeles MSA. The median value in Cudahy is approximately $171,000 below the County and $194,000 less than in the MSA.
Fix
Figure 18: Median Housing Value, 2023
Source: ESRI Business Analyst; Willdan, 2023 $514,757 $576,490 $792,145
$0
$100,000
$200,000
$300,000
$400,000
$500,000
$600,000
$700,000
$800,000
$900,000
Median Value
Cudahy Southeast LA LA County
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Part II – Demographic & Economic Profile Report II – 9
Educational Attainment
Cudahy’s educational attainment levels are similar to comparison jurisdictions, except for Huntington Park and South Gate. Of Cudahy’s population aged 25 and older, 8% have a bachelor’s degree or higher, and over 25% are high school graduates or GED recipients.
Cudahy, Bell Gardens and Maywood had the lowest shares of residents with bachelor’s degrees or graduate or professional degrees and have a significant proportion of residents without a high school diploma.
Figure 19: Population 25+ Years by Educational Attainment, 2023 Source: ESRI Business Analyst; Willdan, 2023
0%
5%
10%
15%
20%
25%
30%
35%
South Gate Huntington Park Maywood Bell Bell Gardens Cudahy
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Part II – Demographic & Economic Profile Report II – 10 Fiscal Resiliency Assessment
The City’s General Fund revenue is primarily reliant upon General Fund Taxes, Intergovernmental Revenues, and Licenses and Permits, which account for 86% of total General Fund revenue.
Table 7 shows the total revenue contributing to the General Fund by source and dollar amount and demonstrates the diversity of the City’s revenue streams.
Over the last four years, licenses and permits have become the largest source of revenue. This growth is driven by new business development and operations, particularly in urban farming.
General Fund Taxes, which include Sales Tax, have decreased moderately during the same period due to population changes and resident spending moving outside City limits.
Table 8: General Fund Revenue
General Fund Revenue
Revenue Source FY19/20 FY20/21 FY21/22 FY22/23
General Fund Taxes $3,830,413 $3,725,383 $3,362,720 $3,441,700 Intergovernmental
Revenues $3,287,469 $3,549,258 $3,210,998 $3,187,964
Licenses & Permits $1,032,736 $2,595,205 $2,319,100 $3,593,999 Fines & Forfeitures $153,076 $164,380 $86,500 $181,500
Building & Safety $525,499 $322,977 $373,000 $292,000
Use of Money &
Property $1,100,698 $99,939 $132,500 $101,500
Charges for ServicesPlanning,
Engineering
$285,706 $217,901 $239,000 $182,000
Charges for ServicesMisc. $77,986 $5,036 $50,300 $114,000 Other Revenues $351,530 $261,098 $87,000 $732,500
TOTAL REVENUE $10,645,114 $10,941,177 $9,861,118 $11,827,163 Change in GF
Revenue $296,063 -$1,080,059 $1,966,045
Source: City of Cudahy Budget Fiscal Year 2022-23; Willdan, 2023 The City’s intentional efforts to attract new
retail/dining/entertainment business activity
within Atlantic Avenue’s emerging Entertainment
District will recapture and grow future General
Fund Tax revenues
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Part II – Demographic & Economic Profile Report Part II II – 11 I – Real Estate Market Analysis Draft: August 2023
City of Cudahy, CA
Economic Development Strategic Plan 2023
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Part III: Real Estate Market Analysis III – 1
Part III. Real Estate Market Analysis
I. Redevelopment Constraints & Opportunities
Executive Summary
As a key Gateway Community of Los Angeles County, the City of Cudahy’s real estate market holds potential for complementary uses that better meet the vision of the City and serve the community. To evaluate the market demand for all uses, Willdan reviewed readily available economic and market data for the City of Cudahy and the larger submarkets the City falls within. Interviews with local and regional real estate brokers, economic development entities, and civic/cultural representatives were also conducted.
The market study revealed a number of unexpected opportunities for the City of Cudahy within the regional market that would serve to attract new businesses to the Entertainment District and generate new tax revenues:
Cudahy is Primarily a Bedroom Community
The City is not currently an importer of jobs for residents from throughout the region. Currently, 97% of those who are employed and live in Cudahy travel outside of the City for work. To diversify the tax 24 https://www.hcd.ca.gov/housing-elements/docs/cudahy-6th-draft101521.pdf base, Cudahy must evolve from serving as a bedroom community to a competitive employment center in the region.
Weak Industrial Sector
The City's industrial businesses are not contributing to the City’s economic base. The City’s rezoning of industrial land to Entertainment District uses will trigger redevelopment activity adjacent to underutilized and disinvested industrial properties. These existing businesses should be evaluated on a property-by-property basis for code and licensing violations as part of a targeted Business Retention & Expansion Program. Special consideration should be given to nonconforming business operations to mitigate the threat of displacement and gentrification.
Emerging Multifamily Development
Multifamily residential development activity is occurring on its own.
Public support for future residential development should focus on attracting new urban infill mixed-use product to meet the City’s Regional Housing Needs Assessment (RHNA)24 targets and the scale, quality, and character of new product according to the General Plan Update 2040.25
25 https://www.cityofcudahy.com/DocumentCenter/View/216/Cudahy-General-Plan2040-PDF
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Part III: Real Estate Market Analysis III – 2
Entertainment District Infill Opportunities
Cudahy is well-positioned in a powerful regional market with strong spending power. The area also demonstrates substantial demand for a variety of retail, dining, and entertainment options. However, existing options within Cudahy and $65 million in retail leakage indicate that residents primarily spend outside City limits to meet their needs. This strong spending power and local demand create near-term opportunities to attract, grow, and support various
retail/dining/entertainment users within the Entertainment District. The SteelCraft brewery in Bellflower represents a model for how the City can support unique infill opportunities to make the Entertainment District a destination hub for residents and surrounding communities. 26 https://www.cushmanwakefield.com/en/united-states/insights/us-articles/medtailwhen-healthcare-meets-retail Office/Medical Office Development
Cudahy is not considered a high-value office market location, and office development is even less likely within the current post-Covid office market conditions where work from home policies have upended the economics of speculative office development.
With a focus on the potential synergies of proximity to the regional Kaiser Permanente Medical Center and emerging “Med-Tail” development26, medical office product is considered a longer-term opportunity and tied to availability of commercial space at a price point that will support the high fit out costs of investment grade medical space users.
In the future, disinvested/underutilized commercial shopping centers may offer opportunity for redevelopment and reuse for medical office.
This strategy would be further strengthened by outreach and marketing.
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Part III: Real Estate Market Analysis III – 3
Entertainment District Growth Supports Hotel Development The City is leading an intentional transition from disinvested industrial uses to destination Entertainment District uses. Over the long term, this strategy will support new hotel demand along Atlantic Avenue as the City’s primary commercial corridor with excellent visibility and traffic counts (midscale class, 100-150 keys, 2-4 stories).
These real estate market findings are further supported by the General Plan’s guidance. The specific Entertainment District properties with the highest likelihood of attracting near-term investment and redevelopment activity will be those with sufficient land capacity, environmental approvals, and an identifiable and willing seller.
The City’s role in catalyzing the targeted redevelopment envisioned by the new Zoning Code is tied to these foundational elements that will be further addressed in the Retail Redevelopment Strategy’s policy and program recommendations.
The following table provides a summary of these market findings according to data and input provided by the City of Cudahy Community Development Department, Urban Land Institute (ULI), Lee & Associates (commercial brokers), and research collected by Willdan Financial & Economic Consulting Services from May 2022 through June 2023.
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Table 9: Atlantic Avenue Commercial Market Opportunities 2024-2028 Sector Atlantic Avenue Market Opportunity Developer Requirements
MULTIFAMILY
2 to 3 mixed-use multifamily buildings over the
next 5-7 years
low-income and market rate workforce housing
product
Neighborhood Infill typology
(25-120 units per property, 2-5 stories)
1 to 5 acres per project
Street frontage and rear-access parking
Structured parking likely requires public subsidy
DESTINATION RETAIL/
ENTERTAINMENT
Substantial retail leakage identified; near-term
opportunity for a variety of regional familyoriented retail/dining/entertainment uses:
Dining, sports arena, gambling, bowling alley,
jump zone, fast casual dining (sit-down pizza),
community gathering (brewery)
1 to 2 acres per project
Approx. 5,000-10,000 Sq Ft per tenant
High visibility locations & intersections along Atlantic Avenue
MIXED-USE
RESIDENTIAL
Ground-floor mixed-use residential over retail will
occur on a site-by-site basis over the next five
years
Multifamily building retail uses require
1,000 - 5,000 Sq Ft per tenant
MEDICAL
OFFICE
Outpatient facility is possible if aligns with
expansion needs of nearby regional medical
center systems (i.e., Kaiser Permanente Cudahy
Medical Offices)
20,000 - 30,000 Sq Ft
2 stories
High visibility locations & intersections
along Atlantic Avenue
HOTEL 1 new hotel in the next 5-10 years
1.5 to 4 acres per project
Midscale class (100 -150 keys, 2-4 stories)
High visibility locations & intersections
along Atlantic Avenue
Source: City of Cudahy; ULI-the Urban Land Institute; Lee & Associates; Willdan, 2023
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Methodology and Approach
Willdan collected demographic and economic data from June through November of 2022 from a variety of industry standard software subscription licenses to evaluate trends and projections using a baseline of the year 2021. The study also relies on client provided background reports, studies, data, and individual market research interviews.
Geographic Information Systems (GIS)
This analysis is informed by geographic information systems (GIS) data in several ways. Spatial data was collected for each District where available, including from ESRI Business Analyst, CoStar and Placer.ai. A description of these proprietary data sources is provided below.
ESRI Business Analyst
ESRI Business Analysis (www.bao.arcgis.com) was used to collect data for several purposes within this analysis. It was primarily used to obtain demographic and economic indicators for each of the comparison cities. The platform aggregates data from a variety of 27 https://www.hcd.ca.gov/housing-elements/docs/cudahy-6th-draft101521.pdf sources, including the US Census’ American Community Survey, Bureau of Labor Statistics, and other proprietary sources.
CoStar
CoStar (www.costar.com) is a commercial real estate data aggregator that provides real-time analytics for retail, multifamily, office and industrial properties. Willdan accessed CoStar on or before February 2023 to identify market indicators for rents, lease rates, sales, vacancy and absorption.
Placer.ai
Placer.ai (www.placer.ai) is a new web-based tool that provides analysis of consumer behaviors based on anonymous cell phone data. Willdan relied on Placer.ai data to define the “true trade areas,” customer journey patterns, and leakage for
retail/dining/entertainment uses.
Regional Housing Needs Assessment
The City of Cudahy 6th Cycle Housing Element Update27 is a required element of the City’s General Plan. The update covers the time period from October 15, 2021, to October 15, 2029, and includes the Regional Housing Needs Assessment (RHNA) – the measure of Cudahy’s share of regional housing needs in comparison
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to what has already been achieved in meeting those needs. While the Housing Element includes community demographics, programs, and ‘quantified objectives’ to guide the City’s development through 2029, the EDSP’s Economic Development Briefing Book provides custom trends and projections for the year 2023 through 2029 specific to the City’s broader economic development objectives.
Existing Conditions
Location
The City of Cudahy (“the City”) is centrally located at the southeastern gateway into the thriving Los Angeles regional market with substantial regional population density and associated spending power. In area, Cudahy is the second smallest city in Los Angeles County with one square mile of area, but with one of the highest population densities of any incorporated city in the United States.
Cudahy is bordered by the Cities of Bell (north), Bell Gardens (east), South Gate (south and southwest), and Huntington Park (west).
Cudahy offers exceptional transportation access for industry as a “Gateway City” located south of the Los Angeles BNSF rail yard, the confluence of I-710 and I-5/I-105, and north of the Southgate Diamond Railroad Crossing.
With intentional urban infill redevelopment activity, the City of Cudahy can attract new businesses to the City’s
retail/dining/entertainment district and capture a greater “fair share” of regional spending.
Development History
The City was incorporated in 1960, nearly 52 years after Mr. Michael Cudahy, a local cattle rancher, acquired the original 2,777 acres from the larger Ranch San Antonio and subdivided the land into long and narrow “Cudahy lots” approximately 50-100 feet wide and 600-800 feet long.
Cudahy is primarily a bedroom community of low density attached single family housing units stacked horizontally within the Cudahy lots and accessible by the City’s primary commercial corridor – Atlantic Avenue.
Over the years, Cudahy grew into a home for multiple generations of Mexican American families with more than 93% of residents speaking Spanish at home today.
Physical Characteristics
Atlantic Avenue, the City’s primary commercial corridor located south of E. Florence Street and north of Patata Street, is characterized as fragmented, deteriorated, and blighted.
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The northern half of the City has evolved into a mix of disinvested neighborhood-serving retail plazas. The southern half of the City is challenged by low-intensity, non-conforming industrial uses including truck storage, auto body repair, and other light industrial businesses. The existing conditions of Atlantic Avenue as the City’s primary commercial, tax generating corridor are considered both an opportunity and a threat.
In comparison, the City of Southgate located just across the southern City boundary has successfully attracted several large, big box retailers after more than 20 years of planning the Azalea shopping center. There is evidence of retail leakage by Cudahy residents who leave the City’s boundaries for a variety of retail/dining/entertainment venues currently not available at home.
Legal & Regulatory Overview
Through a series of planning initiatives from 2018 to 2022, the City of Cudahy identified the need to focus community and economic development resources on the revitalization of Atlantic Avenue as the City’s primary tax generator. These efforts include:
City of Cudahy General Plan 2040 & Economic Development Element (Adopted 2018)
Zoning Code Revision (2023-2024)
Development Impact Fee Update (2021)
City of Cudahy 6th Cycle Housing Element Update (October 2021)
City of Cudahy Strategic Plan (2022)
Architectural Design Guidelines (2024)
Taken together, this policy guidance illustrates the progression from reactive to proactive planning with a focus on implementation.
The City is also in the process of expanding staff resources to administer increased development activity. To date, the City has increased full-time staff from 5 to 50 FTEs and reorganized internal staff departments to house planning and zoning, economic development, and community redevelopment functions under one umbrella in the Community Development Department. The City’s resources have been expanded to implement the City’s priority planning initiatives and diversify the City’s tax base through commercial redevelopment and new business attractions.
Zoning Considerations
As one notable example, the City rezoned the southern half of Atlantic Avenue from light industrial to mixed-use Entertainment District to allow for a shift to more commercial tax generating activity while concurrently updating the City’s Development Impact Fee policy to increase revenue for capital improvements.
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Community & Economic Development Context
Concurrently, the City’s Comprehensive Plan Update 2040 included an Economic Development Element that calls for:
a diverse economy
attracting and retaining a thriving business climate
fostering a skilled workforce
strengthening public and private development that aligns with community vision
fiscal health; and
uplifting the economic potential of the City’s vulnerable populations.
While the Economic Development Element’s goals and objectives are still relevant today, the prior recommendations lacked a detailed implementation plan to direct the Community Development Department’s workplan and secure the required staff resources.
The Economic Development Element also identified several PublicPrivate Partnership (P3) Opportunity Sites to define the City’s priority redevelopment areas along Atlantic Avenue. These P3
opportunities build off the City’s 2015 Long Range Property Management Plan that brought 9.54 acres of property under the Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis
City of Cudahy’s oversight after the Cudahy Community
Development Commission was dissolved.
In 2021, the City undertook a rezoning initiative that designated the southern quadrant of Atlantic Avenue as “Entertainment District” use and a priority redevelopment area. With intentional urban infill redevelopment activity, the City of Cudahy has the opportunity to attract new businesses to the City’s retail/dining/ entertainment district and capture a greater “fair share” of regional spending.
The City is also in the process of expanding staff resources to support this increased development activity. Since 2022, the City has increased full-time staff from 18 to 42 and part-time staff from 11 to 26. The increase in staff capacity was coupled with an internal departmental reorganization to house planning and zoning, economic development, and community redevelopment functions under one umbrella in the Community Development Department.
Traffic Counts
An important measure of potential demand for destination retail and family entertainment uses may be illustrated by traffic counts.
Analysis of the relationship between gross retail sales and the
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volume of vehicles traveling north and south along Atlantic Avenue suggests that traffic is primarily commuter drive-through activity.
Figure 20: Traffic Heat Map
Source: ESRI Business Analyst; Willdan, 2023
This existing volume of vehicle trips is in the range of 120,000 to 250,000 trips per day. This level of throughput is an indicator of the opportunity for competitive, new retail/dining/entertainment products in the local submarket.
Retail Market Indicators
According to CoStar, Cudahy is located in the Los Angeles MidCities retail submarket (“the submarket”), which comprises many cities including Bellflower, South Gate, Lakewood, and Compton as well as parts of the city of Los Angeles (Figure 17). Data reflects Q2 2023 retail market indicators for the submarket as well as Cudahy specific indicators listed in Table 9.
The Cudahy submarket contains 50.4 million square feet of retail space. This includes 11.6 million square feet at Neighborhood Centers, 5.5 million square feet at Strip Centers, and 25 million square feet of General Retail. Most retail properties in the submarket are in smaller shopping centers which have outperformed malls and other retail buildings for the last several years.
Cudahy contributes 377,220 square feet of retail to the submarket (or 16.7 square feet per capita). In comparison, the City of South Gate contains 3.2 million square feet of retail (or 35 square feet per capita). This statistic illustrates the challenging “category killer” competition at the local level between Cudahy and its neighboring jurisdictions. Cudahy will need to evolve and diversify its retail product to a use lacking in the regional market to overcome the retail dominance of nearby shopping centers.
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Figure 21: Cudahy Retail Submarket
Source: CoStar; Willdan, 2023
2023: Vacancies, Absorption, Rents and Sales
Retail vacancy rate for the submarket is 4.2% compared to 5.4% vacancy in the Los Angeles metro. In 2022, Cudahy’s vacancy rate was 6.6%, which is lower than the City’s five-year average of 8 percent. While vacancy rates in Cudahy are higher than those in the submarket and LA metro, they have been decreasing slightly over the last three years as retail has recovered from the pandemic.
CoStar data indicates that retail rents in the submarket grew in the last 12 months by 1.2%, outpacing the LA metro on a year-over-year basis since Q1 2020.
Table 10: Retail Supply: City of Cudahy Retail Market Indicators, 2023 Retail Availability Q2 2023 5-Year Avg
NNN Rent Per SF $27.45 $18.09
Vacancy Rates 6.60% 8.00%
Vacant SF 24,913 32,074
Availability Rate 7.20% 10.80%
Available SF 27,313 43,216
Sublet SF - 130
Months to Market 21.3 13.4
Existing Buildings 35 35
Existing SF 377,220 400,445
12 Mo. Const. Starts - -
Under Construction - -
12 Mo. Deliveries - -
Retail Sales Past Year 5-Year Avg
Sale Asking Price Per SF - $607
Asking Price Per SF $482 $482
Sale Volume (Mil.) - $1.10
Retail Demand Q2 2023 5-Year Avg
12 Mo. Absorption SF 1,240 -1,828
12 Mo. Leasing SF 10,465 27,282
Source: CoStar; Willdan, 2023
A growing preference for convenience has helped grow demand for grocery-store anchored shopping centers, including in
neighborhood centers. This demand for retail also primarily serves
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residents due to a limited number of current tourist attractions in the submarket.
In the last 12 months, the submarket has seen 153,000 square feet of absorption, and the City has seen 1,240 square feet of absorption. Despite demand, the Cudahy submarket has had little retail development in recent years. According to CoStar, during the past five years, retail inventory has decreased by 110,000 square feet with demolitions outweighing new construction. Sales activity has also slowed due to the recent increases in interest rates.
Notably, there have been no new construction starts, deliveries, or projects under construction over the past five years or presently in the City of Cudahy. This along with strong regional retail demand are indicators of opportunity for infill retail/dining/entertainment redevelopment activity.
Cudahy Entertainment District Opportunities
The City of Cudahy is actively promoting the transformation of the City’s recently zoned Entertainment District from currently underutilized, disinvested light industrial uses. To evaluate the feasibility and potential benefits of this concept, Willdan conducted an in-depth market analysis of retail/dining/entertainment supply and demand characteristics.
Although Class A retail space is non-existent within the City limits according to CoStar, Class B/C retail is performing adequately with relatively low vacancy rates (6%) and rental rates averaging $30 per square foot.
Substantial retail leakage from Cudahy residents spending outside of the city’s boundaries underscores the existing gaps in retail/dining/entertainment supply.
Placer.ai’s Void Analysis indicates regional demand and sufficient spending power to support a variety of retail/dining/entertainment chains within the City limits.
True Trade Area analysis of the Steelcraft food hall and brewery illustrates the potential fiscal benefits of creating a destination draw in Cudahy.
The detailed assumptions in support of these findings as reported by Esri Business Analyst and Placer.ai is provided in the following overview of Placer.ai retail gap findings.
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Retail Gap Analysis
Customer journey data reported for City of Cudahy residents illustrates the lack of supply for a variety of retail goods and services.
For spenders who live in Cudahy and journeyed between home or work to a retail destination, only one of the top 15 locations over the past 12 months was inside of the City limits (Cudahy Plaza).
Table 11: Cudahy Customer Journey: Top 15 Retail Destinations, 2021-2022 # Retail Destination Location Visits
1 Azalea Regional Shopping Center South Gate 239,980
2 Stonewood Center Downey 156,892
3 Promenade at Downey Downey 136,566
4 Walmart South Gate 114,526
5 Plaza La Alameda Walnut Park 103,144
6 Plaza Mexico Lynwood 99,699
7 Downey Landing Downey 97,572
8 Lakewood Center Lakewood 96,920
9 Bell Gardens Marketplace Bell Gardens 79,339
10 Pico Rivera Towne Center Pico Rivera 77,865
11 Target South Gate 77,677
12 Cudahy Plaza Cudahy 76,547
13 Citadel Outlets Commerce 73,505
14 El Paseo South Gate Shopping Center South Gate 59,540 15 Costco Wholesale Norwalk 59,112
Source : Placer.ai; Willdan, 2022
The Cudahy local market lacks
regional superstore retail
product, highlighting sales
and property tax revenues
lost to neighboring
jurisdictions
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Figure 22: Retail Supply Overview – Regional Superstores, 2022 Cudahy City Boundaries
Source: Placer.ai; Willdan, 2022
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Market Leakage & Lost Tax Revenues
According to market outlook data reported by Placer.ai, a comparison of Cudahy residents’ spending power (demand) against sales captured by regional retail/dining/entertainment destinations (supply), there exists today substantial “unmet need” within the City of Cudahy.
The following Table 12 illustrates that the City of Cudahy is losing almost $2.3 million in annual local sales taxes from $65 million in lost sales from residents spending outside of the city limits.
Taking the evidence of retail leakage as an indicator of pent -up demand, the retail/dining/entertainment “void” data reported by Placer.ai illustrates the diversity of potential tenants that would be likely to have a commercial interest in locating a new operation in the City of Cudahy.
Note: the data does not account for potential compatibility between trade area characteristics and retailer demographic preferences, as well as current retailer expansion activity within the regional market.
The following Table 13 is a sampling of users by category including urban arcades/bowling alleys, trampoline parks, urban golf/minigolf, breweries, wine bars, and a diverse array of restaurants from pizza to poke and steakhouses that could be attracted to operate within the City of Cudahy.
Table 12: Cudahy Resident Retail Sales Tax Leakage, 2021-2022 Estimated Sales Tax
Leakage by Use1 Total Resident Visits Average Ticket Size Gross Estimated Sales
Leakage ($M) Local Tax Rate
Total Estimated Local
Sales Tax Leakage ($M)
Hotels & Casinos 54,578 $284.39 $15.52 5.5% $0.85
Grocery 415,216 $44.06 $18.29 3.0% $0.55
Dining 1,381,370 $22.56 $31.16 3.0% $0.94
Total 1,851,164 $351 $64.98 $2.34
1 Reflects selected retail/dining/family entertainment uses proposed for City of Cudahy Entertainment District redevelopment area.
Source: Placer.ai; Willdan, 2023
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Table 13: Retail/Dining/Entertainment Void Analysis by Operator – City of Cudahy (20-Minute Drive Time), 2021-2022
Source: Placer.ai; Willdan, 2022
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Spending Power Analysis
Although the City of Cudahy is limited to a little over one square mile of area, it is in a powerful regional market with substantial spending power. To calculate this spending power, Willdan analyzed data within two geographies:
Southeast LA Submarket (City of Cudahy combined with
contiguous neighboring jurisdictions
20-minute drive time from the center of Cudahy
These geographies are the basis for the Economic Development Strategic Plan’s evaluation of gaps and opportunities generated by growth in households and median household income as the primary driver of retail spending power.
Consumers make decisions based on road networks when deciding where to shop, and drive times provide information on the City’s trade area based on travel speeds and distance on existing roadways.
A 20-minute drive time from the center of Cudahy and neighboring jurisdictions were analyzed to assess market demand for destination retail. Consumers are willing to travel over longer distances for destination businesses and community attractions, and the attraction of new retail/dining/entertainment in the City’s Entertainment District has the potential to draw visitors from a wide surrounding area.
The following Figure 21 illustrates the City of Cudahy’s relative positioning within a 20-minute drive time.
Figure 23: Regional Submarket (20-Minute Drive Time)
Source: ESRI Business Analyst; Willdan, 2023
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Table 14: Southeast LA Submarket Incremental Retail Spending Power Projections (2023 to 2028) Median Household Income Cudahy Bell Bell
Gardens
Huntington
Park Maywood South Gate Total
Submarket (Median)
2023 $51,563 $53,547 $50,872 $52,854 $55,779 $61,658 N/A 2028 $57,604 $60,180 $56,611 $60,623 $63,748 $71,686 N/A Net Change $6,041 $6,633 $5,739 $7,769 $7,969 $10,028 $44,179 X 2028 Households 5,739 9,063 9,741 14,851 6,450 24,289 70,133 New Spending Power ($ Million)1 $34.0 $60.0 $55.0 $115.0 $51.0 $243.0 $558.0 Retail/Dining/Entertainment
Spending ($ Million)2 $2.4 $4.2 $3.9 $8.1 $3.6 $17.0 $39.1 1 Figures are rounded to reflect hypothetical values
2 Per the US Consumer Expenditure Survey 2022, US households spend 7% on food away from home, liquor (bars), and entertainment Source: ESRI Business Analyst; Willdan, 2023
The table above highlights Cudahy’s projected spending power alongside its neighboring communities. The household and household income growth projected in the next five years is expected to increase spending power by $558.0 million over the next five years with Cudahy contributing $34 million to this figure.
Of the total, an estimated $39.1 million will be spent on retail/dining/entertainment options.
Within the 20-minute drive time area, new spending power is projected to increase by $6.77 billion (Table 15), of which $474 million will be spent on retail/dining/entertainment options.
The anticipated growth over the next five years further validates the regional market’s projected incremental retail spending power available to support high quality new retail/dining/entertainment offerings – especially considering family-oriented retail and entertainment gaps in existing supply.
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Table 15: 20-Minute Drive Time Spending Power Projections (2023 to 2028) Net New Spending Power Support for Retail
Dining & Entertainment (2023-2028)
20 Minute Drive Time
from Cudahy City
Center
Median Household Income (2023) $61,175
Median Household Income (2028) $75,059
Net Change in Income $14,520
X 2028 New Households 464,964
New Spending Power ($ Billion)1 $6.4 B
Retail/Dining/Entertainment ($ Million)2 $448.0 M
1 Figures are rounded to reflect hypothetical values
2 Per the US Consumer Expenditure Survey 2022, US households spend 7% on food away from home, liquor (bars), and entertainment
Source: ESRI Business Analyst; Willdan, 2023
Multifamily Market
Supply Characteristics
The City of Cudahy is completing its 6th Cycle Housing Element Update (HEU), which includes a Regional Housing Needs Allocation (RHNA). This analysis measures Cudahy’s share of regional housing needs compared to what has been achieved. Data from the HEU along with CoStar data from Q2 2023 are utilized to highlight indicators for supply and demand characteristics of Cudahy’s multifamily market.
Cudahy is located in the Southeast Los Angeles multifamily submarket (“the submarket”), which covers a wide area of the LA metro from Downtown LA to the Orange County border (Figure 19).
Figure 24: Cudahy Multifamily Submarket
Source: CoStar; Willdan, 2023
Market Support for Cudahy
Entertainment District
Net New Annual Spending Power (2027)
Restaurants Bars Entertainment
Southeast LA Submarket: $39.1 M
20-Minute Drive Time: $448.0 M
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According to CoStar, the submarket contains 59,382 multifamily market-rate units, and there is an abundance of small complexes with fewer than 20 units. Cudahy is primarily a residential community and has 152 multifamily properties spread across the City that contribute 1,738 units to the submarket.
Several characteristics are important to evaluate when testing market demand against existing supply of multifamily rental properties. These include, but are not limited to:
Building quality and
amenities
Building scale and size
Location
Year built
An evaluation of Cudahy and the submarket’s supply related to these variables is provided in the following overview.
Building Quality and Amenities
Building quality encompasses the quality of the building design, materials used, and number and quality of amenities offered at a property. The range of amenities offered on rental products can be quite diverse across a market. CoStar’s proprietary star rating system takes a range of factors into consideration to determine building quality and amenities. The highest ranking is five stars, and the lowest ranking is one star. The submarket consists of 939 four- and five-star units, 9,323 three-star units, and 49,120 one- and two-star units. Eighty-three percent of multifamily units fall within the twostar category, which means they have minimal to no amenities.
Three-star properties have average quality finishes and a few shared amenities, and four- and five-star properties include higher end or luxury amenities in newly constructed buildings.
Taking a micro-market view, multifamily units within the City of Cudahy boundaries are predominantly two-star units (75%), with the balance falling in the one- and three-star category. Table 15 profiles the star rating and number of units in each category.
Table 16: City of Cudahy Multifamily Market Summary
Real Estate Market Indicators Q2 2023
Inventory (Units) - TOTAL 1,738
1 & 2 Star 1,297
3 Star 441
4 & 5 Star 0
Units Under Construction 6
12 Month Net Absorption Units 51
Vacancy Rate 1.5%
Effective Market Rent Per Unit $1,387
12 Month Asking Rent Growth 2.2%
Source: CoStar; Willdan, 2023
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The lack of four- and five-star properties indicates that there is a gap in new and competitive supply of multifamily housing in the City.
Building Scale and Size
Building scale and size is another factor when assessing the nature of the multifamily market in Cudahy. Properties in the City have one to three floors, and the average building is a single story. Properties have an average of 12 units and have a higher proportion of oneand two-bedroom units. Properties with a smaller number of bedrooms may be a challenge to families in Cudahy as household size and overcrowding have increased over the years. According to the HEU, the average household size in the City is five people in comparison to 2.9 people per household in greater Los Angeles County. Household size in Cudahy is driven largely by increased family size, increased cost of living, and lack of available affordable housing.
Unit sizes range widely from 300 square feet to 1,520 square feet with the average unit size being 898 square feet. While overcrowding is a challenge for households, the City did not find the size of units themselves to be issues of concern for residents in its HEU surveys.
Location
Cudahy predominantly consists of dense residential development.
Residential neighborhoods account for approximately 394 acres, or
51.5%, of the total land area of the City. For this reason, multifamily is found throughout the City, as indicated in Figure 21. The exception is primarily along Atlantic Avenue where retail, commercial, entertainment, light industrial, and public uses are currently found. The City’s recent land use updates promote new residential development along these corridors to facilitate mixeduse development.
Figure 25: Cudahy Multifamily Building Location Map
Source: CoStar; Willdan, 2023
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Year Built
The lack of regionally competitive multifamily stock is further illustrated by an analysis of year built.
The age of the existing housing supply indicates an opportunity to renovate units to add or improve amenities and build higherdensity, quality housing in alignment with the City’s goals.
The following , approximately 83% of 998 existing units were constructed prior to 1990. More than half of all units were constructed prior to 1960; only 77 units (8%) were built in the last 10 years.
Figure 26: Cudahy Multifamily Units by Year Built, Q3 2022 Source: CoStar; Willdan, 2023
In assessing housing age, new construction should also be considered. According to CoStar, there are 280 units under construction in the submarket, and 315 units have been delivered in the last 12 months. The number of units under construction equates to 0.5% of the submarket’s existing inventory and is below the LA metro average of 2.4 percent.
However, this figure does not take into account the multiple new developments in the submarket that have been designated for lowincome, affordable, and senior housing as the CoStar data only incorporates market-rate statistics.
In the last 12 months, while there were no construction starts, 48 units have been delivered and six units are currently under construction in the City of Cudahy.
While the City of Cudahy enacted a rent increase moratorium ordinance in January 2023, the City’s Community Development Department is actively engaged in facilitating several multifamily housing development proposals. This intentional developer assistance demonstrates the City’s commitment to protecting at-risk residents while balancing the need to provide exceptional redevelopment services to private developers.
0%
10%
20%
30%
40%
50%
60%
-
100
200
300
400
500
600
1912 to
1945
1961 to
1965
1966 to
1990
1991 to
2015
2016 to
2022
Number of Units
# of Units
% of Total
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Part III: Real Estate Market Analysis III – 22
Table 17: Cudahy Multifamily Supply
Inventory In Units Q2 2023 5-Year Avg
Existing Units 1,716 1,662
12 Mo. Constr. Starts 0 20
Under Construction 6 41
12 Mo. Deliveries 48 18
Source: CoStar; Willdan, 2023
Housing Needs Assessment Demand
According to the RHNA, the Southern California Association of Governments (SCAG) estimated the eight-year future housing construction needs for Cudahy to be 393 housing units, not including the roll-over of 280 units not constructed from the previous cycles. The number of units is allocated by income level to meet different affordability needs in the city and can be found in Table 18. While the City is not involved in the actual construction of housing units, it is actively involved in creating a regulatory environment to facilitate the development of housing to work towards its housing goals.
29 https://www.cityofcudahy.com/DocumentCenter/View/780/Cudahy-Draft-6thCycle-Housing-Element-Mar-2022 To further assess housing needs, the City collected community input through public hearings and community outreach surveys that were available in both English and Spanish.29 Surveys were used to identify housing issues facing the city and possible options for addressing those issues. Primary concerns included the need for affordable housing throughout the City and the rehabilitation of existing housing. The assessment of housing demand in Cudahy utilizes the results of these surveys along with CoStar Q2 2023 data.
Table 18: City of Cudahy RHNA 6th Cycle Estimated Housing Construction Need, October 2021 – October 2029
Housing Affordability Level
(AMI: Area Median Income)
Number
of
Units
Percentage of
Total Units
Very-Low Income (<50% AMI) 80 20.35%
Low Income (50-80% AMI) 36 9.16%
Moderate Income (80-120% AMI) 53 13.48%
Above Moderate Income (>120% AMI) 224 56.9%
Total Needed Future Housing 393 100%
Source: City of Cudahy 6th Cycle Housing Element Update; Willdan, 2023
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Part III: Real Estate Market Analysis III – 23
Vacancy
The multifamily vacancy rate is the share of rentable building area (square feet) available or not leased and does not factor in common area space or amenities that are not leasable. According to CoStar, the submarket vacancy rate is 2.7% and is slightly higher than the vacancy rate of 2.3% one year ago. The increase is the result of 310 new units being completed and only 51 units absorbed in the submarket within the last year. Despite this slight increase, the vacancy rate has remained below the submarket’s average since 2000 of 3.3% as well as the Greater LA apartment market average of
4.6%, which indicates modest renter demand in the submarket.
Demand for multifamily is even greater in Cudahy, and the City’s vacancy rate is 1.5 percent (Table 19). This is below the City’s 5-year average of 2%, and CoStar data indicates that only 25 units were vacant at the time the analysis of the market was conducted.
Low vacancies and limited options were key concerns that residents expressed in the City’s survey. In response to the question, “How important is providing more housing for all income levels to you and your household?” approximately 40.4% of respondents using the English survey and 60.6% using the Spanish survey said that this issue is “very important.” Residents also expressed interest in a diversity of housing options including single family, multifamily, condominiums, and duplex/attached housing.
Table 19: Cudahy Multifamily Vacancy and Absorption
Leasing Units Survey 5-Year Avg
Vacant Units 25 34
Vacancy Rates 1.5% 2%
12 Mo. Absorption Units 51 12
Source: CoStar; Willdan, 2023
Rent
According to CoStar, the Southeast Los Angeles submarket average asking rents of $1,660 per month are among the most affordable in the Greater LA apartment market. Despite lower rents in the submarket compared to the metro area, rents are increasing at a sharper pace and creating cost burdens for residents.
Average asking rents have seen gains of 3.1% during the past 12 months, outpacing the gains of 1.1% seen across the LA metro. The submarket witnessed an average annual growth of 3.7% over the past five years, and the LA metro trailed that pace, with average annual gains of 2.7 percent.
The average rent per unit in Cudahy is $1,387, and the average rent per square foot is $1.60. While rental rates are more affordable relative to the larger submarket, the steady increase in rents over the last ten years creates affordability challenges for Cudahy’s
City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 24
residents. According to the Housing Element Update, residents expressed a great need for affordable housing in Cudahy as well as a concern regarding high rental prices being charged by landlords.
In the City’s survey, 60.6% of respondents using the English survey and 66.7% of those using the Spanish survey indicated that promoting housing affordable to working families was a “very important” priority to them and their households.
Absorption
Absorption is the rate at which units are leased or exited over a given period. A positive absorption number indicates that more units are leased than the number no longer occupied and is a positive sign of demand in the market.
According to CoStar, during the past 12 months, the submarket saw a net absorption of 51 units. The net absorption in the past decade averaged 140 units, indicating a decrease and some softening of demand in the larger submarket. However, demand has
strengthened in Cudahy, and the City saw an absorption of 51 units in the last 12 months. This is an increase from the five-year average of 12 units absorbed in a 12-month period.
Constraints & Opportunities
The nation – and California in particular—is experiencing the greatest housing inventory crisis in the last 50 years. Housing construction cost inflation pressures, and labor and materials shortages are exacerbating the mismatch between demand (buying power) and the cost to produce a unit.
Local market demand focused around low- to moderate income and workforce housing products at price points that require some form of subsidy.
However, the City’s recent community development policy initiatives like the inclusionary housing ordinance and affordable housing impact fee are being used to leverage affordable housing development opportunities in the City.
The City’s Successor Agency Sites provide a land banking opportunity to attract the type of multifamily development that is envisioned in the General Plan Update 2040 and its associated Housing Element.
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Part III: Real Estate Market Analysis III – 25
Industrial Market Overview
Cudahy is located in both the Vernon and Commerce industrial submarkets, with the dividing line between the markets running through Atlantic Avenue (Figure 22). Both are large industrial submarkets characterized by aging stock, and there is 133 million square feet of industrial space between the two submarkets. A breakdown of Logistics, Specialized Industrial, and Flex space square footage for both submarkets are provided in Table 20. The City of Cudahy has 43 buildings that contribute 1,013,144 square feet to the submarkets.
Figure 27: Cudahy Industrial Submarkets
Source: CoStar; Willdan, 2023
Table 20: Cudahy Industrial Submarket Square Footage by Asset Type Q2 2023 Vernon Commerce Total SF
Logistics 47,118,742 37,524,140 84,642,882
Specialized Industrial 35,834,326 11,445,437 47,279,763 Flex 553,650 970,344 1,523,994
TOTAL 83,506,718 49,939,921 133,446,639
Source: CoStar; Willdan, 2023
2023: Vacancies, Absorption, Rents, and Sales
Key indicators for Cudahy and the Vernon and Commerce
submarkets can be found in Table 21. The vacancy rate in both submarkets has increased over the last two years due to a sharp contraction in activity at the nearby port, which many tenants in the markets serve. In contrast, Cudahy’s vacancy rate has remained very low and currently sits at zero percent.
Rents average $16.62 in the Vernon submarket and $16.40 in Commerce, which are lower than the Greater LA market average of $19.20. Despite an increase in vacancies, rents in both submarkets have increased over the past 12 months by 7.8% and 9.9% respectively. The five-year average rent for industrial space in Cudahy is $12.26.
Vernon Commerc
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Part III: Real Estate Market Analysis III – 26
Sales activity has slowed since Q3 2022 as investors cope with higher interest rates, and activity early in 2022 contributed to the large sale volume numbers in the submarkets.
Twelve-month sales volume tallied at $44.7 million in Vernon and $160 million in Commerce. In Cudahy, sales volume was up to $6.4 million from the City’s five-year average of $3.8 million.
Absorption rates reflect the growing vacancy rates, and both submarkets had negative absorption rates of 2.4 million (Vernon) and 1.5 million (Commerce). Cudahy had an absorption rate of zero.
Table 21: Local and Submarket Industrial Real Estate Indicators Supply Characteristics
The industrial submarkets are largely built out, and in most cases, new development requires demolition of existing, older properties.
The supply pipeline is modest in both submarkets with zero proposed square feet in the next eight quarters in Commerce and four industrial buildings under construction in Vernon. Table 22 demonstrates that there has also been no new supply activity in Cudahy with zero projects under construction and none started in the last five years.
Overall, supply has declined over the past five years in the Vernon submarket as some buildings have been demolished and inventory has declined by an average of 94,000 square feet annually over the past five years.
Table 22: Cudahy Industrial Supply
Inventory In Units Q2 2023 5-Year Avg
Existing Buildings 43 43
Existing SF 1,013,144 1,013,144
12 Mo. Constr. Starts 0 0
Under Construction 0 0
12 Mo. Deliveries 0 0
Source: CoStar; Willdan, 2023
Real Estate
Market Indicators Cudahy Vernon Commerce
Vacancy 0% 6.30% 3.80%
Absorption 0 -2,400,000 -1,500,000
Rents $12.26 $16.62 $16.40
Sales Volume (Million) $6.4 $44.7 $160
Source: CoStar; Willdan, 2023
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Part III: Real Estate Market Analysis III – 27
Demand Drivers
Given the aged inventory, tenant demand in the submarkets is driven by small to midsized users as older properties often lack the building heights, loading docks, and other amenities needed by major distributors.
Urban Farming
In terms of tax revenue opportunities, both dispensaries and light industrial processing/warehousing can contribute to the local economy. Dispensaries are retail establishments that sell cannabis products directly to consumers. They generate tax revenue through sales taxes, excise taxes, and local business taxes. The tax rates and regulations vary depending on the jurisdiction.
Light industrial processing/warehousing refers to facilities involved in activities such as cultivation, processing, and distribution of cannabis products. These operations may include growing and harvesting plants, manufacturing products like edibles or extracts, and storing inventory. Taxes can be collected through licensing fees, permit fees, and taxes based on the volume or value of products.
Despite the growth and source of revenue for local jurisdictions, the cannabis market in California faces challenges. Competition among businesses is intense, and an oversaturated cannabis market in the state has led to steeply declining product prices. Compliance with evolving regulations and rising industry taxes has led to cannabisbased businesses shutting down to diminishing profit margins, and Figure 23 demonstrates the decline in sales that has begun due to these factors.
Figure 28: California Taxable Cannabis Sales
Source:
Source: CA Department of Tax and Fee Administration; Willdan, 2023 $-
$200
$400
$600
$800
$1,000
$1,200
$1,400
$1,600
$1,800
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2021 2021 2021 2021 2022 2022 2022 2022 2023
$ Millions
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Part III: Real Estate Market Analysis III – 28
Constraints & Opportunities
The declining industrial market and significant square footage currently occupied by industrial product presents a meaningful opportunity for revitalization of currently underutilized and aging industrial properties in the Cudahy.
To realize the vision of the Entertainment District, the City should evaluate existing businesses on a property-by-property basis for code and licensing violations as part of a targeted Business Retention and Expansion Program. With zero percent vacancy in its industrial spaces, special consideration should be given to nonconforming business operations to mitigate the threat of displacement and gentrification.
Commercial & Medical Office Market
Supply Characteristics
The Mid-Cities submarket area which includes the City of Cudahy boundaries has among the lowest percentage of four and five-star inventory in the LA Metro market area.
Data illustrating location of existing office market centers in LA CBD and environs
Demand Drivers
According to ULI-the Urban Land Institute, office demand is typically informed by office employment growth projections. Given that Cudahy does not include a concentration of office properties, future office development will require a build-to-suit strategy. Due to the current under-performance of the Cudahy office submarket, inflation, the impact of Covid on hybrid office policies, and the continually rising costs of construction, office is not considered the highest and best use of property on Atlantic Avenue.
Constraints & Opportunities
With the Covid impact on office occupancy rates, demand for highly amenitized spaces, inflation, and borrowing rates, speculative office development is not considered to be financially feasible.
However, there is an opportunity to explore build-to-suit medical office “wellness hub development with Keyser Permanente Center through a regional play.
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Part III: Real Estate Market Analysis III – 29
Hotel/Hospitality Market Overview
Supply Characteristics
Cudahy is part of the Los Angeles Southeast submarket within which there are 156 hotels and 8,516 rooms (Figure 24). Cudahy currently has no hotel rooms reported in this inventory.
Figure 29: Cudahy Hospitality Submarket
Source: CoStar; Willdan, 2023
Within the submarket, the average property has 55 rooms and economic lodging dominates the market. More than two-thirds of the rooms are limited service or midscale product.
Demand Drivers
While business and visitor hotel stays are stabilizing from Covid in the larger market, Atlantic Avenue’s existing conditions are not competitive for new hotel product in the near term.
The occupancy forecast for the submarket is projected to increase from approximately 67% in 2022 to 70% by 2023. According to CoStar, as of April 2023, the 12-month average RevPAR in the submarket was climbing at an exceptionally strong 9.2% annual rate, which is similar to the market-wide trend.
New development in the submarket continues, and there is one hotel project with 71 rooms underway. Over the past three years, three projects with 320 rooms came online.
Constraints & Opportunities
The City of Cudahy is not yet a destination with amenities and attractions. The City should focus on laying the foundation to catalyze high quality, transformational redevelopment activity that would attract new hotel construction investment in the future.
City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 30
Conclusion
Table 23 below provides a summary of the opportunities and constraints by product type for the City.
Table 23: Summary Table Constrains and Opportunities by Product Type Sector Opportunities Constraints
Retail
Substantial retail leakage and projected spending power growth indicate opportunity for variety of
retail/dining/entertainment users
Zoning code revisions and creation of Entertainment District will support more competitive employment center
Existing conditions, lot size, and fragmented uses along main commercial corridor
Multifamily
Substantial demand for a variety of housing options
Aging housing stock with minimal amenities create
opportunities for upgrades and new competitive supply
Lank banking with City Successor Agency Sites for
redevelopment opportunities
Lot sizes
Housing construction costs, labor and material shortages, and inflation
Subsidies required for low- to moderate income housing products are limited and highly competitive
Industrial Underutilized and aging properties create opportunity for reimagined retail/dining/entertainment uses
Existing industrial spaces are fully occupied, and existing businesses must be evaluated on property-by-property basis Urban Farming users generate meaningful General Fund
revenue for City
Commercial
and Medical
Office
Proximity to Kaiser Permanente and regional wellness hub opportunities long-term
Build-to-suit opportunity for specific, identified medical office Office is not highest and best use on Atlantic Avenue due to under-performance of office submarket caused by COVID,
costs for highly amenitized spaces, and inflation
Hotel/Hospitality
Entertainment District will catalyze high-quality
redevelopment to attract future hotel construction
Market occupancy growth is climbing, indicating COVID recovery
City not currently a destination with attractions, amenities, or existing hotel product
Source: City of Cudahy; CoStar; Lee & Associates; Willdan, 2023
City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 31
Community Engagement
To inform the Economic Development Plan recommendations, the consulting team conducted community and business outreach through a variety of mechanisms from June 2022 to July 2023.
The outreach included:
Stakeholder interview tracking tool
In-person data collection interviews with City of Cudahy staff in the Office of the City Manager, Community Development, and City Finance Department
Video interviews with members of the City’s leadership who opted to participate
Electronic community engagement survey in English and Spanish via Sli.do
Economic Development SWOT Work Session (approximately 25 community participants in attendance)
City Planning Commission presentation and feedback on the draft Economic Development recommendations
Preliminary City Council presentation of findings and recommendations
The results of this broad approach to community engagement are summarized in the following overview of interview and survey results.
City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 32
Spanish Version Survey: English Version Survey:
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Part III: Real Estate Market Analysis III – 33
Community Visioning 2022/23: SWOT Workshop Results
Q2: Where is your favorite place to go in Cudahy?
Chris’s Burgers
Chute Fitness
El Superior Grocery Store
Gym
Lee’s BBQ
Mar y Sol Restaurant
None
Small Plaza on Clara St. and
Atlantic Ave.
Wendy’s
“I don’t have one.”
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Part III: Real Estate Market Analysis III – 34
Community Visioning 2022/23: SWOT Workshop Results
Q3: How would you describe Cudahy as a community?
“A miracle I can live and work so close”
“Hard working-class community”
“A typical densely populated community”
“A community divided, but lots of potential”
“Small-town feel and a close-knit community”
“An oasis in the LA metro”
“Home”
“A plethora of community-based organizations,
but each with their own mission”
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Part III: Real Estate Market Analysis III – 35
Community Visioning 2022/23: SWOT Workshop Results
Q4: What landmarks do you associate with Cudahy’s brand as a City or a place?
Atlantic Avenue Corridor
Choze Shopping Center
Chris’s Burgers
Clara Park and Extension: “Nostalgic!”
Elizabeth Learning Center
El Superior Grocers
Lugo Park
“None!”
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Part III: Real Estate Market Analysis III – 36
Community Visioning 2022/23: SWOT Workshop Results
Q5: In Your Opinion, What is Missing in Cudahy?
Family Entertainment
Restaurants
Shopping
Public Art
Gathering Spaces
“Bowling Alley with Pizza”
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Part III: Real Estate Market Analysis III – 37
Community Visioning 2022/23: SWOT Workshop Results
Q6: When you leave Cudahy to shop, dine or enjoy
family entertainment, specifically where do you go and
why?
Bell
Cerritos
Chuck-E-Cheese: “it’s good for the kids”
Downey: ”Lots of diverse restaurants and
entertainment”
Downtown Los Angeles
Lakewood
Little Tokyo: “Different food options,
Open Spaces”
Long Beach
Lynwood
Southgate:” Nails and
Sam’s Club”
Tijuana
Orange County
Pico Rivera
“I only go to
El Superior for
groceries.
I go outside of
Cudahy for
anything else”
City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part III: Real Estate Market Analysis III – 38
Community Visioning 2022/23: SWOT Workshop Results
Q7: Do you identify Cudahy
with the City’s logo of the
Bear?
Yes: 28%
No: 72%
Q8: Do you think the City
tagline Open Minds, Open
Doors” defines the City’s
brand for marketing
redevelopment
opportunities?
Yes: 45%
No: 55%
City of Cudahy I California Draft for Interview Review Purposes Only – Not for Distribution Economic Development Strategic Plan 2023
Part IV: Consulting Support Contact Information IV—1
Part IV: Real Estate & Economic Development
Consulting Support Contact Information
Willdan Financial & Economic
Consulting Services
1939 Harrison St Suite 430, Oakland, CA 94612
Phone: (202) 510-0511
Project Manager:
Molly McKay, Managing Principal
Community Engagement & Economic Development
Strategic Plan Lead
[email protected]
Principal-in-Charge:
James Edison, Managing Principal
Municipal Finance Advisor
[email protected]
Research Analysts:
Carlos Villarreal, Principal
Demographic & GIS Lead
[email protected]
Chelsea Gaylord, Project Director
Economic Profile Report & Real Estate
Market Analysis Lead
Nick Zatrine, Analyst
GIS Analyst
[email protected]
“Serving The People” "Sirviendo A La Comunidad"
Staff Report
09/05/2023 Page 1 of 2
STAFF REPORT
Date: September 5, 2023
To: Honorable Mayor/Chair and City Council/Agency Members From: Alfonso Noyola, City Manager/Executive Director
Subject: Consideration of a Second Amendment to Professional Services Agreement Between the City of Cudahy and Willdan Engineering
RECOMMENDATION
It is recommended that the City Council adopt the Second Amendment to Professional Services Agreement between the City of Cudahy and Willdan Engineering.
BACKGROUND AND ANALYSIS
On August 10, 2012, the City of Cudahy (“City”) and Willdan Engineering (“Willdan”) executed and entered into the Master Agreement for Willdan to provide Interim Building Official and Interim City Engineer services for the City (“Master Agreement”). On April 7, 2020, the City and Willdan executed and entered into a First Amendment, amending the term of the Master Agreement for continued services on a month-to-month basis (“First Amendment”).
Under the terms of the Master Agreement, the City agreed that the hourly rate for the services would be One Hundred Forty-Five Dollars per hour ($145/hour), this amount has since increased. The City requires ongoing services under the terms of the Master Agreement, however, they are unable to do so as the current fee schedule offered from Willdan does not align with the terms of the Master Agreement. An increase in the hourly rate by Willdan will also require an increase in the Not-to-Exceed amount stated in the Master Agreement as well.
CONCLUSION
In order to address the discrepancy between Willdan’s current fee schedule and the current Not-to-Exceed amount, staff is requesting the City Council adopt the Second Amendment to the Master Agreement which will ensure the City continues to receive the necessary services from Willdan.
Item Number
14C
“Serving The People” "Sirviendo A La Comunidad"
Staff Report
09/05/2023 Page 2 of 2
STRATEGIC PLAN CORRELATION
Goal E (City Infrastructure and Service Delivery)
FINANCIAL IMPACT
If approved, the amendment will result in a maximum of $50,000 paid to Willdan Engineering.
This will be covered by the current FY2024 budget.
ATTACHMENTS
A. Second Amendment to Professional Services Agreement
1 2023
SECOND AMENDMENT TO PROFESSIONAL SERVICES AGREEMENT
(Engagement: Interim Building Official and Interim City Engineer Services) (Parties: City of Cudahy and Willdan Engineering)
THIS SECOND AMENDMENT (hereinafter, “Second Amendment”) to that certain agreement entitled, “Contract Services Agreement” and dated August 10, 2012 (hereinafter, the “Master Agreement”), is hereby made and entered into this ___ day of September 2023 (hereinafter, “Effective Date”) by and between the City of Cudahy, a municipal corporation (hereinafter, “City”) and Willdan Engineering (hereinafter, “Consultant”). For purposes of this Second Amendment, the capitalized term “Parties” shall be a collective reference to both City and Consultant. The capitalized term “Party” may refer to either City or Consultant, interchangeably as appropriate.
RECITALS
This Second Amendment is made and entered into with respect to the following facts:
WHEREAS, on August 10, 2012, the Parties executed and entered into the Master Agreement for Consultant to provide Interim Building Official and Interim City Engineer services for the City; and
WHEREAS, the Master Agreement is attached and incorporated hereto as Exhibit “A”; and
WHEREAS, on April 7, 2020, the Parties executed and entered into the First Amendment, amending the Term of the Master Agreement for continued services on a month-to-month basis; and
WHEREAS, the First Amendment is attached and incorporated hereto as Exhibit “B”; and WHEREAS, under the terms of the Master Agreement, City agreed that the hourly rate for the services would be One Hundred Forty-Five Dollars per hour ($145/hour); and WHEREAS, Consultant has presented the City with its current schedule of hourly rates, effective as of July 1, 2023, through June 30, 2024 (“Rate Schedule”), this schedule is attached and incorporated hereto as Exhibit “C”; and
WHEREAS, Consultant’s current Rate Schedule varies significantly from the flat rate included in the Master Agreement.
NOW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:
SECTION 1. Section 1.2 (Compensation) of the Master Agreement is hereby amended in its entirety to state as follows:
2 “COMPENSATION:
A. CONSULTANT shall perform the various services and tasks set forth in the Scope of Work in accordance with the work schedule which will be mutually determined.
B. Notwithstanding Section 1.3, CONSULTANT's total compensation for the performance and completion of the Work shall not exceed the sum of FIFTY THOUSAND DOLLARS ($50,000) (hereinafter, the "Not-to-Exceed Sum"). CONSULTANT further agrees that the Not-to-Exceed Sum is inclusive of compensation for all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perform and timely complete the Work.”
SECTION 2. Section 1.3 (Payment of Compensation) of the Master Agreement is hereby amended in its entirety to state as follows:
“PAYMENT OF COMPENSATION: The hourly rate shall be set pursuant to the Schedule of Hourly Rates attached and incorporated hereto as Exhibit “C.” Following the conclusion of each calendar month, CONSULTANT, shall submit to CITY an itemized invoice indicating the services performed and tasks completed during the recently concluded calendar month, including services and tasks performed and the reimbursable out-of-pocket expenses incurred. If the amount of CONSULTANT's monthly compensation is a function of hours worked by CONSULTANT's personnel, the invoice shall indicate the number of hours worked in the recently concluded calendar month, the persons responsible for performing the Work, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed. Within thirty (30) calendar days of receipt of each invoice, CITY shall notify CONSULTANT in writing of any disputed amounts included in the invoice. Within forty-five (45) calendar days of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall not withhold applicable taxes or other authorized deductions from payments made to CONSULTANT.” SECTION 3. Except as otherwise set forth in this First Amendment, the Master Agreement shall remain binding, controlling, and in full force and effect. This First Amendment, together with the Master Agreement, shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents.
SECTION 4. The provisions of this First Amendment shall be deemed a part of the Master Agreement and except, as otherwise provided under this First Amendment, the Master Agreement and all provisions contained therein shall remain binding and enforceable. In the event of any conflict or inconsistency between the provisions of this First Amendment and the provisions of the Master Agreement, the provisions of this First Amendment shall control, but only in so far as such provisions conflict with the Master Agreement and no further. (SIGNATURES ON NEXT PAGE)
3 IN WITNESS WHEREOF, the Parties hereto have caused this First Amendment to be executed on the day and year first appearing above.
CITY OF CUDAHY
By: __________________________________
Alfonso Noyola, City Manager
Date:
APPROVED AS TO FORM:
By:
Stephanie A. Arechiga, City Attorney
Date:
WILLDAN ENGINEERING:
By: ______________________
Name: ____________________
Title: _____________________
Date: _____________________
4 EXHIBIT “A”
MASTER AGREEMENT
1.1 • -
PROFESSIONAL SERVICES AGREEMENT
(Willdan Engineering-INTERIM BUILDING OFFICIAL AND INTERIM CITY ENGINEER
SERVICES)
TIDS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into this 10th Day of August, 2012 (hereinafter, the "Effective Date''), by and between the CITY OF CUDAHY, a municipal corporation ("CITY") and WILLDAN ENGINEERING., a California Corporation (hereinafter, "CONSUL TANT"). For the purposes of this Agreement CITY and CONSULT ANT may be referred to collectively by the capitaliud term "Parties." The capitaliud term "Party" may refer to CITY or CONSULT ANT interchangeably.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONSULT ANT agree as follows:
I.
ENGAGEMENT TERMS
SCOPE OF WORK: SEE ATTACHED EXHIBIT A
PROSECUTION OF WORK: The Parties agrees as follows:
A. Time is of the essence of this Agreement and each and every provision contained herein. The Work shall be commenced within seven (7) calendar days of CITY' s issuance of a Notice to Proceed, and shall be completed on a date not more than three hundred and sixty five (365) calendar days from the issuance of the Notice to Proceed (the "Completion Date");
B. CONSULT ANT shall perform the Work continuously and with due diligence so as to complete the Work by the Completion Date. CONSULTANT shall cooperate with CITY and in no manner interfere with the work of CITY, its employees or other consultants, contractors or agents; C. CONSULTANT shall not claim or be entitled to receive any compensation or damage because of the failure of CONSULT ANT or its subconsultants, to have related services or tasks completed in a timely manner;
D. CONSULTANT shall at all times enforce strict discipline and good order among CONSULTANT's employees
E. CONSULT ANT, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.
1.2 COMPENSATION:
A. CONSULTANT shall perform the various services and tasks set forth in the Scope of Work in accordance with the work schedule which will be mutually determined.
B. Section 1.3(A) notwithstanding, CONSULTANT's total compensation for the perfonnance and completion of the Work shall not exceed the sum of TEN THOUSAND DOLLARS ($10,000.00) (hereinafter, the ''Not-to-Exceed Sum"). CONSULT ANT further agrees that the Not-to-Exceed Sum is inclusive of compensation for all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perfonn and timely complete the Work.
1.3 PAYMENT OF COMPENSATION: The Not-to-Exceed Sum shall be paid to CONSULTANT in monthly increments as the Work is completed. Following the conclusion of each calendar month, CONSULTANT shall submit to CITY an itemized invoice indicating the services perfonned and tasks completed during the recently concluded calendar month, including services and tasks perfonned and the reimbursable out-of-pocket expenses incurred. If the amount of CONSULTANT's monthly compensation is a function of hours worked by CONSULTANT's personnel, the invoice shall indicate the number of hours worked in the recently concluded calendar month, the persons responsible for performing the Work, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed. The hourly rate shall be ONE HUNDRED FORTY FIVE DOLLARS PER HOUR ($145.00/HR) within thirty (30) calendar days of receipt of each invoice, CITY shall notify CONSULT ANT in writing of any disputed amounts included in the invoice. Within forty-five ( 45) calendar day of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall not withhold applicable taxes or other authorized deductions from payments made to CONSULT ANT.
1.4 ACCOUNTING RECORDS: CONSULTANT shall maintain complete and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. CITY shall have the right to access and examine such records, without charge, during normal business hours. CITY shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.
1.5 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perform the Work agreed to under this Agreement or otherwise abandons the undertaking contemplated herein prior to the expiration of this Agreement or prior to completion of any or all tasks set forth in the Scope of Work, CONSULTANT shall deliver to CITY immediately and without delay, all materials, records and other work product prepared or obtained by CONSULT ANT in the performance of this Agreement.
Furthermore, CONSULT ANT shall only be compensated for the reasonable value of the services, tasks and other work performed up to the time of cessation or abandonment, less a deduction for any damages, costs or additional expenses which CITY may incur as a result of CONSULTANT's cessation or abandonment.
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II.
PERFORMANCE OF AGREEMENT
2.1 CITY'S REPRESENTATIVES: The CITY hereby designates the City Manager and Director of Community Development (hereinafter, the "CITY Representatives") to act as its representatives for the performance of this Agreement. The City Manager shall be the chief CITY Representative. The CITY Representatives or their designee shall act on behalf of the CITY for all purposes under this Agreement.
CONSULT ANT shall not accept directions or orders from any person other than the CITY Representatives or their designee.
2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates Senior Vice President William Paget to act as its representative for the performance of this Agreement (hereinafter, "CONSULT ANT Representative"). CONSULT ANT Representative shall have full authority to represent and act on behalf of the CONSULT ANT for all purposes under this Agreement.
CONSULTANT Representative or his designee shall supervise and direct the perfonnance of the Work, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement.
Notice to the CONSULTANT Representative shall constitute notice to CONSULTANT.
2.3 COORDINATION OF SERVICE: CONFORMANCE WITH REQUIREMENTS: CONSULTANT agrees to work closely with CITY staff in the perfonnance of the Work and this Agreement and shall be available to CITY staff and the CITY Representatives at all reasonable times. All work prepared by CONSULT ANT shall be subject to inspection and approval by CITY Representatives or their designees.
2.4 STANDARD OF CARE: PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges and agrees to the following:
A. CONSULTANT shall perform all Work skillfully, competently and to the standards of practice ordinarily exercised by members ofCONSULTANT's profession; B. CONSULT ANT shall perform all Work in a manner reasonably satisfactory to the CITY; C. CONSULT ANT shall comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section I 090 and the Political Refonn Act (Government Code Section 81000 et seq.);
D. CONSULTANT understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance;
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E. All of CONSULTANT's employees and agents possess sufficient skill, knowledge, training and experience to perfonn those services and tasks assigned to them by CONSULT ANT; and F. All of CONSULTANT's employees and agents (including but not limited to subcontractors and subconsultants) possess all licenses, pennits, certificates, qualifications and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, pennits, certificates, qualifications and approvals shall be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.
The Parties acknowledge and agree that CONSULTANT shall perform, at CONSULTANT's own cost and expense and without any reimbursement from CITY, any services necessary to correct any errors or omissions caused by CONSULTANT's failure to comply with the standard of care set forth under this Section or by any like failure on the part of CONSULTANT's employees, agents, contractors, subcontractors and subconsultants. Such effort by CONSULTANT to correct any errors or omissions shall be commenced immediately upon their discovery by either Party and shall be completed within seven (7) calendar days from the date of discovery or such other extended period of time authoriz.ed by the CITY Representatives in writing and in their sole and absolute discretion. The Parties acknowledge and agree that CITY's acceptance of any work performed by CONSULT ANT or on CONSULT ANT's behalf shall not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand and agree that CITY has relied upon the foregoing representations of CONSULTANT, including but not limited to the representation that CONSULTANT possesses the skills, training, knowledge and experience necessary to perform the Work skillfully, competently and to the highest standards ofCONSULTANT's profession.
2.5 ASSIGNMENT: The skills, training, knowledge and experience of CONSULTANT are material to CITY's willingness to enter into this Agreement. Accordingly, CITY has an interest in the qualifications and capabilities of the person(s) who will perform the services and tasks to be undertaken by CONSULTANT or on behalf of CONSULTANT in the perfonnance of this Agreement. In recognition of this interest, CONSULTANT agrees that it shall not assign or transfer, either directly or indirectly or by operation of law, this Agreement or the performance of any of CONSULT ANT' s duties or obligations under this Agreement without the prior written consent of the CITY. In the absence of CITY' s prior written consent, any attempted assignment or transfer shall be ineffective, null and void and shall constitute a material breach of this Agreement.
2.6 CONTROL AND PAYMENT OF SUBORDINATES: INDEPENDENT CONTRACTOR: The Work shall be performed by CONSULTANT or under CONSULTANT's strict supervision. CONSULTANT will determine the means, methods and details of performing the Work subject to the requirements of this Agreement. CITY retains CONSULT ANT on an independent contractor basis and not as an employee. CONSULT ANT reserves the right to perfonn similar or different services for other principals during the tenn of this Agreement, provided such work does not unduly interfere with CONSULTANT's competent and timely perfonnance of the Work contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY's Page4of17
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confidential or proprietary information. Any additional personnel performing the Work under this Agreement on behalf of CONSULT ANT are not employees of CITY and shall at all times be under CONSULTANT's exclusive direction and control. CONSULTANT shall pay all wages, salaries and other amounts due such personnel and shall assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULT ANT shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, workers' compensation insurance and the like.
2. 7 REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT's officers, employees, agents, contractors, subcontractors or subconsultants are determined by the CITY Representatives to be uncooperative, incompetent, a threat to the adequate or timely performance of the tasks assigned to CONSULTANT, a threat to persons or property, or if any of CONSULTANT's officers, employees, agents, contractors, subcontractors or subconsultants fail or refuse to perform the Work in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant shall be promptly removed by CONSULTANT and shall not be re-assigned to perform any of the Work.
2.8 COMPLIANCE WITH LAWS: CONSULT ANT shall keep itself informed of and in compliance with all applicable federal, State or local laws to the extent such laws control or otherwise govern the performance of the Work. CONSULTANT's compliance with applicable laws shall include without limitation compliance with all applicable Cal/OSHA requirements.
2.9 NON-DISCRIMINATION: In the performance of this Agreement, CONSULTANT shall not discriminate against any employee, subcontractor, subconsultant, or applicant for employment because of race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental disability or medical condition.
2.10. INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and shall at all times remain, wholly independent contractors and are not officials, officers, employees, departments or subdivisions of CITY. CONSULT ANT shall be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants. CONSULT ANT and all persons retained or employed by CONSULTANT shall have no authority, express or implied, to bind CITY in any manner, nor to incur any obligation, debt or liability of any kind on behalf of, or against, CITY, whether by contract or otherwise, unless such authority is expressly conferred to CONSULTANT under this Agreement or is otherwise expressly conferred by CITY in writing.
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III.
INSURANCE
3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Prior to the beginning of and throughout the duration of the Work, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article. CONSULT ANT shall procure and maintain the following insurance coverage, at its own expense:
A. Commercial General Liabilicy Insurance: CONSULT ANT shall procure and maintain Commercial General Liability Insurance ("CGL Coverage") as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) or its equivalent. Such CGL Coverage shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the general aggregate for bodily injury, personal injury, property damage, operations, products and completed operations, and contractual liability.
B. Automobile Liability Insurance: CONSULT ANT shall procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance shall have minimum limits ofno less than One Million Dollars ($1,000,000.00) per accident for bodily injury and property damage.
C. Workers' Compensation Insurance/ Employer's Liabilicy Insurance: A policy of workers' compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both CONSULTANT and CITY against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by CONSULTANT in the course of carrying out the Work contemplated in this Agreement.
D. Errors & Omissions Insurance: For the full tenn of this Agreement and for a period of three (3) years thereafter, CONSULTANT shall procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT's profession. Such coverage shall have minimum limits ofno less than One Million Dollars ($1,000,000.00) per claim and Two Millions Dollars ($2,000,000) annual aggregate.
3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance shall contain an endorsement naming the CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers as additional insureds.
3.3 REQUIRED CARRIER RATING: All varieties of insurance required under this Agreement shall be procured from insurers admitted in the State of California and authorized to issue policies directly to California insureds. Except as otherwise provided elsewhere under this Article, all required insurance shall be procured from insurers who, according to the latest edition of the Best's Insurance Guide, have
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an A.M. Best's rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor's rating of no less than BBB according to the latest published edition of the Standard & Poor's rating guide. As to Workers' Compensation Insurance/ Employer's Liability Insurance, the CITY Representatives are authorized to authorize lower ratings than those set forth in this Section.
3.4 PRIMACY OF CONSULTANT'S INSURANCE: All policies of insurance provided by CONSULTANT shall be primary to any coverage available to CITY or CITY's elected or appointed officials, officers, employees, agents or volunteers. Any insurance or self-insurance maintained by CITY or CITY' s elected or appointed officials, officers, employees, agents or volunteers shall be in excess ofCONSULTANT's insurance and shall not contribute with it.
3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement shall not prohibit CONSULTANT or CONSULTANT's officers, employees, agents, subcontractors or subconsultants from waiving the right of subrogation prior to a loss. CONSULT ANT hereby waives all rights of subrogation against CITY.
3.6 VERIFICATION OF COVERAGE: CONSULTANT acknowledges, understands and agrees that CITY's ability to verify the procurement and maintenance of the insurance required under this Article is critical to safeguarding CITY's financial well-being and, indirectly, the collective well-being of the residents of the CITY. Accordingly, CONSULTANT warrants, represents and agrees that it shall furnish CITY with original certificates of insurance and endorsements evidencing the coverage required under this Article on fonns satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the CITY if requested. All certificates of insurance and endorsements shall be received and approved by CITY as a condition precedent to CONSULTANT's commencement of any work or any of the Work. Upon CITY's written request, CONSULTANT shall also provide CITY with certified copies of all required insurance policies and endorsements.
IV.
INDEMNIFICATION
4.1 The Parties agree that CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers (hereinafter, the "CITY Indemnitees") should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys' fees, litigation costs, or any other cost arising out of or in any way related to, and to the extent of CONSULT ANT'S negligence, recklessness or willful misconduct inthe perfonnance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the CITY Indemnitees with the fullest protection possible under the law. CONSULTANT
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acknowledges that CITY would not enter into this Agreement in the absence of CONSULTANT's commitment to indemnify, defend and protect CITY as set forth herein.
4.2 To the fullest extent permitted by law, CONSULTANT shall indemnify, hold hannless and defend the CITY Indemnitees from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with and to the extent of CONSULTANT's negligence, recklessness or willful misconduct in the performance of Work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence, active negligence or willful misconduct of the CITY.
4.3 CITY shall have the right to offset against the amount of any compensation due CONSULT ANT under this Agreement any amount due CITY from CONSULTANT as a result ofCONSULTANT's failure to pay CITY promptly any indemnification arising under this Article and related to CONSULTANT's failure to either (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers' compensation laws.
4.4 The obligations of CONSULT ANT under this Article will not be limited by the provisions of any workers' compensation act or similar act. CONSULTANT expressly waives its statutory immunity under such statutes or laws as to CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers.
4.5 CONSULTANT agrees to obtain executed indemnity agreements with provisions identical to those set forth in this Article from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONSULT ANT in the performance of this Agreement. In the event CONSULT ANT fails to obtain such indemnity obligations from others as required herein, CONSULT ANT agrees to be fully responsible and indemnify, hold harmless and defend CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of CONSULTANT's subcontractors or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys' fees incurred by counsel ofCITY's choice.
4.6 CITY does not, and shall not, waive any rights that it may possess against CONSULT ANT because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.
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4.7 This Article and all provisions contained herein (including but not limited to the duty to indemnify, defend and hold free and hannless) shall survive the termination or normal expiration of this Agreement and is in addition to any other rights or remedies which the CITY may have at law or in equity.
V.
TERMINATION
5.1 TERMINATION WITHOUT CAUSE: CITY may terminate this Agreement at any time for convenience and without cause by giving CONSULT ANT a minimum of five (5) calendar day's prior written notice of CITY's intent to terminate this Agreement. Upon such termination for convenience, CONSULTANT shall be compensated only for those services and tasks which have been performed by CONSULT ANT up to the effective date of the termination. CONSUL TANT may not terminate this Agreement except for cause as provided under Section 5.2, below. If this Agreement is terminated as provided herein, CITY may require CONSULTANT to provide all finished or unfinished Documents and Data, as defined in Section 7.1 below, and other information of any kind prepared by CONSUL TANT in connection with the performance of the Work. CONSULT ANT shall be required to provide such Documents and Data within fifteen (15) calendar days of CITY's written request. No actual or asserted breach of this Agreement on the part of CITY pursuant to Section 5.2, below, shall operate to prohibit or otherwise restrict CITY's ability to terminate this Agreement for convenience as provided under this Section.
5.2 EVENTS OF DEFAULT; BREACH OF AGREEMENT:
A. In the event either Party fails to perform any duty, obligation, service or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service or task set forth under this Agreement), an event of default (hereinafter, "Event of Default'') shall occur. For all Events of Default, the Party alleging an Event of Default shall give written notice to the defaulting Party (hereinafter referred to as a "Default Notice") which shall specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default shall be cured, which shall not be less than the applicable cure period set forth under Sections 5.2.B and 5.2C below or if a cure is not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default shall constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.
B. CONSULT ANT shall cure the following Events of Defaults within the following time periods:
i. Within three (3) business days of CITY's issuance of a Default Notice for any failure of CONSULTANT to timely provide CITY or CITY's employees or agents with any information and/or written reports, documentation or work product which CONSULT ANT is obligated to provide to CITY or CITY's employees or agents under this Agreement. Prior to the expiration Page9ofl7
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of the 3-day cure period, CONSULT ANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 3-day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2 B.i. that exceeds seven (7) calendar days ftom the end of the initial 3-day cure period; or ii. Within fourteen (14) calendar days of CITY's issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULT ANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 14-day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.ii that exceeds thirty (30) calendar days ftom the end of the initial 14-day cure period.
In addition to any other failure on the part of CONSULTANT to perform any duty, obligation, service or task set forth under this Agreement (or the failure to timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of CONSULT ANT shall include, but shall not be limited to the following: (i) CONSULT ANT's refusal or failure to perform any of the services or tasks called for under the Scope of Work; (ii) CONSULTANT's failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (iii) CONSULTANT's and/or its employees' disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONSULTANT, whether voluntary of involuntary; (v) CONSULTANT's refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (vii) CITY's discovery that a statement representation or warranty by CONSULT ANT relating to this Agreement is false, misleading or erroneous in any material respect.
C. CITY shall cure any Event of Default asserted by CONSULT ANT within forty-five ( 45) calendar days of CONSULTANT's issuance of a Default Notice, unless the Event of Default cannot reasonably be cured within the 45-day cure period. Prior to the expiration of the 45-day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 45-day cure period. The foregoing notwithstanding, an Event of Default dealing with CITY's failure to timely pay any undisputed sums to CONSULTANT as provided under Section 1.4, above, shall be cured by CITY within five (5) calendar days from the date of CONSULTANT's Default Notice to CITY.
D. CITY, in its sole and absolute discretion, may also immediately suspend CONSULTANT's performance under this Agreement pending CONSULTANT's cure of any Event of Default by giving
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CONSULT ANT written notice of CITY' s intent to suspend CONSULTANP s performance (hereinafter, a "Suspension Notice"). CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, CONSULT ANT shall be compensated only for those services and tasks which have been rendered by CONSULT ANT to the reasonable satisfaction of CITY up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of CITY shall operate to prohibit or otherwise restrict CITY' s ability to suspend this Agreement as provided herein.
E. No waiver of any Event of Default or breach under this Agreement shall constitute a waiver of any other or subsequent Event of Default or breach. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
F. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies:
1. Upon written notice to CONSULT ANT, the CITY may immediately terminate this Agreement in whole or in part;
ii. Upon written notice to CONSULTANT, the CITY may extend the time of performance; iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONSULT ANT' s breach of the Agreement or to terminate the Agreement; or
iv. The CITY may exercise any other available and lawful right or remedy.
CONSULT ANT shall be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY' s exercise of its remedies under this Agreement.
G. In the event CITY is in breach of this Agreement, CONSULTANT's sole remedy shall be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONSULT ANT under this Agreement for completed services and tasks.
5.3 SCOPE OF WAIVER: No waiver of any default or breach under this Agreement shall constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, tenn, condition, duty or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
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5.4 SURVIVING ARTICLES. SECTIONS AND PROVISIONS: The termination of this Agreement pursuant to any provision of this Article or by normal expiration of its term or any extension thereto shall not operate to terminate any Article, Section or provision contained herein which provides that it shall survive the termination or normal expiration of this Agreement.
VI.
MISCELLANEOUS PROVISIONS
6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data shall be and remain the property of CITY without restriction or limitation upon their use or dissemination by CITY. For purposes of this Agreement, the term "Documents and Data" means and includes all reports, analyses, correspondence, plans, drawings, designs, renderings, specifications, notes, summaries, strategies, charts, schedules, spreadsheets, calculations, lists, data compilations, documents or other materials developed and/or assembled by or on behalf of CONSULTANT in the performance of this Agreement and fixed in any tangible medium of expression, including but not limited to Documents and Data stored digitally, magnetically and/or electronically. This Agreement creates, at no cost to CITY, a perpetual license for CITY to copy, use, reuse, disseminate and/or retain any and all copyrights, designs, and other intellectual property embodied in all Documents and Data.
CONSULT ANT shall require all subcontractors and subconsultants working on behalf of CONSULT ANT in the performance of this Agreement to agree in writing that CITY shall be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or subconsultant as applies to Documents and Data prepared by CONSULTANT in the performance of this Agreement.
6.2 CONFIDENTIALITY: All data, documents, discussion, or other information developed or received by CONSULT ANT or provided for performance of this Agreement are deemed confidential and shall not be disclosed by CONSULT ANT without prior written consent by CITY. CITY shall grant such consent if disclosure is legally required. Upon request, all CITY data shall be returned to CITY upon the termination or expiration of this Agreement. CONSULT ANT shall not use CITY' s name or insignia, photographs, or any publicity pertaining to the Work in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of CITY.
6.3 FALSE CLAIMS ACT: CONSULTANT warrants and represents that neither CONSULTANT nor any person who is an officer of, in a managing position with, or has an ownership interest in CONSULT ANT has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., Section 3789 et seq. and the California False Claims Act, Government Code Section 12650 et seq.
6.4 NOTICES: All notices permitted or required under this Agreement shall be given to the respective Parties at the following addresses, or at such other address as the respective Parties may provide in writing for this purpose:
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CONSULTANT:
Willdan Engineering
13191 Crossroads Parkway North, Suite 405
Industry, CA 91746-3443
Attn: William Pagett
CITY:
City of Cudahy
5220 Santa Ana Street
Cudahy, CA 90201
Attn: City Manager
Phone: (323) 773-5143
Fax: (323) 771-2072
Such notices shall be deemed effective when personally delivered m: successfully transmitted by facsimile as evidenced by a fax confirmation slip or when mailed, forty-eight ( 48) hours after deposit with the United States Postal Service, first class postage prepaid and addressed to the Party at its applicable address.
6.5 COOPERATION; FURTHER ACTS: The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as are reasonably necessary, appropriate or convenient to achieve the purposes of this Agreement.
6.6 SUBCONTRACTING: CONSULTANT shall not subcontract any portion of the Work required by this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with subconsultants), if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.
6.7 CITY'S RIGIIT TO EMPLOY OTHER CONSULTANTS: CITY reserves the right to employ other contractors in connection with the various projects worked upon by CONSULTANT.
6.8 PROHIBITED INTERESTS: CONSULTANT warrants, represents and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for CONSULTANT, to solicit or secure this Agreement. Further, CONSULTANT warrants and represents that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for CONSULT ANT, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of CITY, during the term of his or her service with CITY, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.
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6.10 GOVERNING LAW AND VENUE: This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, shall be in the Central District of California located in the City of Los Angeles, California.
6.11 ATTORNEYS' FEES: If either Party commences an action against the other Party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall be entitled to have and recover from the losing Party reasonable attorneys' fees and all other costs of such action.
6.12 SUCCESSORS AND ASSIGNS: This Agreement shall be binding on the successors and assigns of the Parties.
6.13 NO TIDRD PARTY BENEFIT: There are no intended third party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this Agreement inure exclusively to the Parties.
6.14 CONSTRUCTION OF AGREEMENT: This Agreement shall not be construed in favor of, or against, either Party but shall be construed as if the Parties prepared this Agreement together through a process of negotiation and with the advice of their respective attorneys.
6.15 SEVERABILITY: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
6.16 AMENDMENT: MODIFICATION: No amendment, modification or supplement of this Agreement shall be valid or binding unless executed in writing and signed by both Parties, subject to CITY approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver shall be void and invalid.
6.17 CAPTIONS: The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
6.18 INCONSISTENCIES OR CONFLICTS: In the event of any conflict or inconsistency between the provisions of this Agreement and any of the exhibits attached hereto, the provisions of this Agreement shall control.
6.19 ENTIRE AGREEMENT: This Agreement including all attached exhibits is the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all
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other agreements or understandings, whether oral or written, or entered into between CITY and CONSULT ANT prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid or binding. No amendment, modification or supplement to this Agreement shall be valid and binding unless in writing and duly executed by the Parties pursuant to Section 6.16, above.
6.20 COUNTERPARTS: This Agreement shall be executed in three (3) original counterparts each of which shall be of equal force and effect. No handwritten or typewritten amendment, modification or supplement to any one counterparts shall be valid or binding unless made to all three counterparts in conformity with Section 6.14, above. One fully executed original counterpart shall be delivered to CONSULT ANT and the remaining two original counterparts shall be retained by CITY.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.
CITY OF CUD� WILLDAN ENGINEERING
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By: I(
ager
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ATTEST:
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EXHIBIT A-SCOPE OF WORK
Proposal for Professional Management Services
Between the City of Cudahy and WILLDAN, Inc.
EXI-DBIT A:
BUILDING OFFICIAL
Under direction of the Director of Community Development, the Building Official manages the City's building plan check, inspection, and building and housing code enforcement activities; develops programs and work objectives; resolves complex administrative and technical problems; and does related work as required.
EXAMPLES OF DUTIES • Duties may include, but are not limited to, the following:
Supervises and participates in the implementation of ordinances and codes relating to the construction or alteration of buildings including the installation of building, plumbing, mechanical, structural and electrical systems and equipment; Supervises building and housing code enforcement;
Checks plans, interprets regulations and makes decisions on technical problems; Develops and establishes policies ensuring efficient issuance of building, electrical, mechanical and plumbing pennits;
Keeps informed on new building methods and materials and their effect upon existing laws; Recommends revisions and updates of building, electrical and plumbing codes; Attends meetings of local, regional and state agencies to keep up•to-date in appropriate fields; Prepares and manages consultant contracts;
Conducts periodic field inspections for conformance to policies and procedures; Confers with architects, contractors, engineers, developers and others, regarding technical issues relating to construction codes and building plans;
Keeps records and prepares reports;
Prepares and administers the division budget and fee system; Supervises, trains and completes performance evaluations for the Building Division technical staff;
Prepares staff reports and makes presentations to the City Council, Building Board of Appeals and other city boards and commissions;
Answers inquiries and complaints.
CITY ENGINEER:
Designs and serves as project management of various public works projects and programs, including roadways, utilities, buildings, traffic signals, traffic lighting, water/wastewater systems, natural gas systems, drainage structures, assessment district, traffic and bond issue projects.
Duties and Responsibilities:
Plans, reviews, designs and certifies drawings for roadways, streets, drainage, utilities, buildings and other structures and systems; conducts field inspections of projects; signs and seals engineering plans, reports, specifications and contract documents.
Drafts and creates engineering drawings from field data, sketches, drawings, raw data, diagrams and verbal/written narrative instructions; performs calculations of geometric designs for public works projects.
Serves as project manager in coordinating the various aspects of design projects and engineering related programs, including preparing preliminary and final cost estimates; construction plans, contract documents, material specifications, acquisition of right of way and easements.
Responds to inquiries from the public regarding information requests, complaints or concerns; provides information and documentation regarding various projects.
Perform the lead role in the review and the coordination and administration of assessment districts, Bond Issue Projects in order to provide a coordinated, effective, cost-efficient project.
Prepare Requests for Proposals for professional engineering services needed by the City.
Coordinate projects with external agencies and other utility companies.
Reviews construction plans for compliance with the City design standards, Subdivision Code and Uniform Building Code, and other applicable codes, guidelines and standards.
Performs special studies of the existing infrastructure; recommends improvements and prepares technical reports.
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5 EXHIBIT “B”
FIRST AMENDMENT
2020
TRACT SERVICES AGREEMENT
(Engagement: Interim Building Official and Interim City Engineer Services) (Parties: City of Cudahy and Willdan Engineering)
THIS FIRST AME DME T (hereinafter, "First Amendment") to that certain agreement entitled "Contract Services Agreement" and dated August 10, 2012 (hereinafter, the "Master Agreement"), is hereby made and entered into this 7th day of April 2020 (hereinafter, "Effective Date") by and between City of Cudahy, a municipal corporation (hereinafter, "City") and Willdan Engineering (hereinafter, "Consultant"). For purposes of this First Amendment, the capitalized term "Parties" shall be a collective reference to both City and Consultant. The capitalized term "Party" may refer to either City or Consultant, interchangeably as appropriate.
RECITALS
This First Amendment is made and entered into with respect to the following facts:
WHEREAS, on August 10, 2012 the Parties executed and entered into the Master Agreement for Consultant to provide interim building official and interim city engineer services for the City; and
WHEREAS, the Master Agreement is attached and incorporated hereto as Exhibit "A"; and
WHEREAS, the Parties wish to expand the Term given that City requires additional building official services; and
WHEREAS, under the terms of the Master Agreement, City agreed to a Term beginning on August 10, 2012 ("Effective Date") and the services were to be completed on a date no more than three hundred and sixty five (365) calendar days from the issuance of the otice to Proceed; and
WHEREAS, the Parties now wish to adjust the Term to begin on the Effective Date and continue on a monthly basis until terminated by the City pursuant to Section 5 of the Master Agreement.
OW, THEREFORE, in consideration of the mutual agreements contained herein, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties agree as follows:
SECTION 1. Section 1.1 (A) of the Master Agreement is hereby amended from the original Term beginning on August 10, 2012 ("Effective Date") and the services were to be completed on a date no more than three hundred and sixty five (365) calendar days from the issuance of the Notice to Proceed, for a new Term to begin on the Effective Date of the Master Agreement and continue on a monthly basis until terminated by the City, pursuant to Section 5 of the Master Agreement for all work contemplated under the Master Agreement and this First
Amendment.
SECTION 2. Except as otherwise set forth in this First Amendment, the Master Agreement shall remain binding, controlling, and in full force and effect. This First Amendment, together with the Master Agreement, shall constitute the entire, complete, final, and exclusive expression of the Parties with respect to the matters addressed in both documents.
SEC TIO 3. The provisions of this First Amendment shall be deemed a part of the Master Agreement and except, as otherwise provided under this First Amendment, the Master Agreement and all provisions contained therein shall remain binding and enforceable. In the event of any conflict or inconsistency between the provisions of this First Amendment and the provisions of the Master Agreement, the provisions of this First Amendment shall control, but only in so far as such provisions conflict with the Master Agreement and no further. (SIGNATURES ON NEXT PAGE)
2
1 WIT E 'Ji., HER OF. th Parti h r t have au ed thi Fir t mendment t be xecuted on the d \' and year fir t pp arin!! b v .
CIT : CO. SLLTA T:
CITY OF C DAHY \\ lLLDA E. GI EERI G
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Date: D te: Lf -15- 0
APPROVED A TO FORM:
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Dat : _ _._A ___ p ____ ri __ l 1"'--5 ___ , _20_2_0 __ 3
EXHIBIT "A"
MASTER AGREEMENT
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1.1 • -
PROFESSIONAL SERVICES AGREEMENT
(Willdan Engineering-INTERIM BUILDING OFFICIAL AND INTERIM CITY ENGINEER
SERVICES)
TIDS PROFESSIONAL SERVICES AGREEMENT ("Agreement") is made and entered into this 10th Day of August, 2012 (hereinafter, the "Effective Date''), by and between the CITY OF CUDAHY, a municipal corporation ("CITY") and WILLDAN ENGINEERING., a California Corporation (hereinafter, "CONSUL TANT"). For the purposes of this Agreement CITY and CONSULT ANT may be referred to collectively by the capitaliud term "Parties." The capitaliud term "Party" may refer to CITY or CONSULT ANT interchangeably.
NOW, THEREFORE, for and in consideration of the mutual covenants and conditions herein contained, CITY and CONSULT ANT agree as follows:
I.
ENGAGEMENT TERMS
SCOPE OF WORK: SEE ATTACHED EXHIBIT A
PROSECUTION OF WORK: The Parties agrees as follows:
A. Time is of the essence of this Agreement and each and every provision contained herein. The Work shall be commenced within seven (7) calendar days of CITY' s issuance of a Notice to Proceed, and shall be completed on a date not more than three hundred and sixty five (365) calendar days from the issuance of the Notice to Proceed (the "Completion Date");
B. CONSULT ANT shall perform the Work continuously and with due diligence so as to complete the Work by the Completion Date. CONSULTANT shall cooperate with CITY and in no manner interfere with the work of CITY, its employees or other consultants, contractors or agents; C. CONSULTANT shall not claim or be entitled to receive any compensation or damage because of the failure of CONSULT ANT or its subconsultants, to have related services or tasks completed in a timely manner;
D. CONSULTANT shall at all times enforce strict discipline and good order among CONSULTANT's employees
E. CONSULT ANT, at its sole expense, shall pay all sales, consumer, use or other similar taxes required by law.
1.2 COMPENSATION:
A. CONSULTANT shall perform the various services and tasks set forth in the Scope of Work in accordance with the work schedule which will be mutually determined.
B. Section 1.3(A) notwithstanding, CONSULTANT's total compensation for the perfonnance and completion of the Work shall not exceed the sum of TEN THOUSAND DOLLARS ($10,000.00) (hereinafter, the ''Not-to-Exceed Sum"). CONSULT ANT further agrees that the Not-to-Exceed Sum is inclusive of compensation for all labor, materials, tools, supplies, equipment, services, tasks and incidental and customary work necessary to competently perfonn and timely complete the Work.
1.3 PAYMENT OF COMPENSATION: The Not-to-Exceed Sum shall be paid to CONSULTANT in monthly increments as the Work is completed. Following the conclusion of each calendar month, CONSULTANT shall submit to CITY an itemized invoice indicating the services perfonned and tasks completed during the recently concluded calendar month, including services and tasks perfonned and the reimbursable out-of-pocket expenses incurred. If the amount of CONSULTANT's monthly compensation is a function of hours worked by CONSULTANT's personnel, the invoice shall indicate the number of hours worked in the recently concluded calendar month, the persons responsible for performing the Work, the rate of compensation at which such services and tasks were performed, the subtotal for each task and service performed and a grand total for all services performed. The hourly rate shall be ONE HUNDRED FORTY FIVE DOLLARS PER HOUR ($145.00/HR) within thirty (30) calendar days of receipt of each invoice, CITY shall notify CONSULT ANT in writing of any disputed amounts included in the invoice. Within forty-five ( 45) calendar day of receipt of each invoice, CITY shall pay all undisputed amounts included on the invoice. CITY shall not withhold applicable taxes or other authorized deductions from payments made to CONSULT ANT.
1.4 ACCOUNTING RECORDS: CONSULTANT shall maintain complete and accurate records with respect to all matters covered under this Agreement for a period of three (3) years after the expiration or termination of this Agreement. CITY shall have the right to access and examine such records, without charge, during normal business hours. CITY shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.
1.5 ABANDONMENT BY CONSULTANT: In the event CONSULTANT ceases to perform the Work agreed to under this Agreement or otherwise abandons the undertaking contemplated herein prior to the expiration of this Agreement or prior to completion of any or all tasks set forth in the Scope of Work, CONSULTANT shall deliver to CITY immediately and without delay, all materials, records and other work product prepared or obtained by CONSULT ANT in the performance of this Agreement.
Furthermore, CONSULT ANT shall only be compensated for the reasonable value of the services, tasks and other work performed up to the time of cessation or abandonment, less a deduction for any damages, costs or additional expenses which CITY may incur as a result of CONSULTANT's cessation or abandonment.
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II.
PERFORMANCE OF AGREEMENT
2.1 CITY'S REPRESENTATIVES: The CITY hereby designates the City Manager and Director of Community Development (hereinafter, the "CITY Representatives") to act as its representatives for the performance of this Agreement. The City Manager shall be the chief CITY Representative. The CITY Representatives or their designee shall act on behalf of the CITY for all purposes under this Agreement.
CONSULT ANT shall not accept directions or orders from any person other than the CITY Representatives or their designee.
2.2 CONSULTANT REPRESENTATIVE: CONSULTANT hereby designates Senior Vice President William Paget to act as its representative for the performance of this Agreement (hereinafter, "CONSULT ANT Representative"). CONSULT ANT Representative shall have full authority to represent and act on behalf of the CONSULT ANT for all purposes under this Agreement.
CONSULTANT Representative or his designee shall supervise and direct the perfonnance of the Work, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Work under this Agreement.
Notice to the CONSULTANT Representative shall constitute notice to CONSULTANT.
2.3 COORDINATION OF SERVICE: CONFORMANCE WITH REQUIREMENTS: CONSULTANT agrees to work closely with CITY staff in the perfonnance of the Work and this Agreement and shall be available to CITY staff and the CITY Representatives at all reasonable times. All work prepared by CONSULT ANT shall be subject to inspection and approval by CITY Representatives or their designees.
2.4 STANDARD OF CARE: PERFORMANCE OF EMPLOYEES: CONSULTANT represents, acknowledges and agrees to the following:
A. CONSULTANT shall perform all Work skillfully, competently and to the standards of practice ordinarily exercised by members ofCONSULTANT's profession; B. CONSULT ANT shall perform all Work in a manner reasonably satisfactory to the CITY; C. CONSULT ANT shall comply with all applicable federal, state and local laws and regulations, including the conflict of interest provisions of Government Code Section I 090 and the Political Refonn Act (Government Code Section 81000 et seq.);
D. CONSULTANT understands the nature and scope of the Work to be performed under this Agreement as well as any and all schedules of performance;
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E. All of CONSULTANT's employees and agents possess sufficient skill, knowledge, training and experience to perfonn those services and tasks assigned to them by CONSULT ANT; and F. All of CONSULTANT's employees and agents (including but not limited to subcontractors and subconsultants) possess all licenses, pennits, certificates, qualifications and approvals of whatever nature that are legally required to perform the tasks and services contemplated under this Agreement and all such licenses, pennits, certificates, qualifications and approvals shall be maintained throughout the term of this Agreement and made available to CITY for copying and inspection.
The Parties acknowledge and agree that CONSULTANT shall perform, at CONSULTANT's own cost and expense and without any reimbursement from CITY, any services necessary to correct any errors or omissions caused by CONSULTANT's failure to comply with the standard of care set forth under this Section or by any like failure on the part of CONSULTANT's employees, agents, contractors, subcontractors and subconsultants. Such effort by CONSULTANT to correct any errors or omissions shall be commenced immediately upon their discovery by either Party and shall be completed within seven (7) calendar days from the date of discovery or such other extended period of time authoriz.ed by the CITY Representatives in writing and in their sole and absolute discretion. The Parties acknowledge and agree that CITY's acceptance of any work performed by CONSULT ANT or on CONSULT ANT's behalf shall not constitute a release of any deficiency or delay in performance. The Parties further acknowledge, understand and agree that CITY has relied upon the foregoing representations of CONSULTANT, including but not limited to the representation that CONSULTANT possesses the skills, training, knowledge and experience necessary to perform the Work skillfully, competently and to the highest standards ofCONSULTANT's profession.
2.5 ASSIGNMENT: The skills, training, knowledge and experience of CONSULTANT are material to CITY's willingness to enter into this Agreement. Accordingly, CITY has an interest in the qualifications and capabilities of the person(s) who will perform the services and tasks to be undertaken by CONSULTANT or on behalf of CONSULTANT in the perfonnance of this Agreement. In recognition of this interest, CONSULTANT agrees that it shall not assign or transfer, either directly or indirectly or by operation of law, this Agreement or the performance of any of CONSULT ANT' s duties or obligations under this Agreement without the prior written consent of the CITY. In the absence of CITY' s prior written consent, any attempted assignment or transfer shall be ineffective, null and void and shall constitute a material breach of this Agreement.
2.6 CONTROL AND PAYMENT OF SUBORDINATES: INDEPENDENT CONTRACTOR: The Work shall be performed by CONSULTANT or under CONSULTANT's strict supervision. CONSULTANT will determine the means, methods and details of performing the Work subject to the requirements of this Agreement. CITY retains CONSULT ANT on an independent contractor basis and not as an employee. CONSULT ANT reserves the right to perfonn similar or different services for other principals during the tenn of this Agreement, provided such work does not unduly interfere with CONSULTANT's competent and timely perfonnance of the Work contemplated under this Agreement and provided the performance of such services does not result in the unauthorized disclosure of CITY's Page4of17
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confidential or proprietary information. Any additional personnel performing the Work under this Agreement on behalf of CONSULT ANT are not employees of CITY and shall at all times be under CONSULTANT's exclusive direction and control. CONSULTANT shall pay all wages, salaries and other amounts due such personnel and shall assume responsibility for all benefits, payroll taxes, Social Security and Medicare payments and the like. CONSULT ANT shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: Social Security taxes, income tax withholding, unemployment insurance, disability insurance, workers' compensation insurance and the like.
2. 7 REMOVAL OF EMPLOYEES OR AGENTS: If any of CONSULTANT's officers, employees, agents, contractors, subcontractors or subconsultants are determined by the CITY Representatives to be uncooperative, incompetent, a threat to the adequate or timely performance of the tasks assigned to CONSULTANT, a threat to persons or property, or if any of CONSULTANT's officers, employees, agents, contractors, subcontractors or subconsultants fail or refuse to perform the Work in a manner acceptable to the CITY, such officer, employee, agent, contractor, subcontractor or subconsultant shall be promptly removed by CONSULTANT and shall not be re-assigned to perform any of the Work.
2.8 COMPLIANCE WITH LAWS: CONSULT ANT shall keep itself informed of and in compliance with all applicable federal, State or local laws to the extent such laws control or otherwise govern the performance of the Work. CONSULTANT's compliance with applicable laws shall include without limitation compliance with all applicable Cal/OSHA requirements.
2.9 NON-DISCRIMINATION: In the performance of this Agreement, CONSULTANT shall not discriminate against any employee, subcontractor, subconsultant, or applicant for employment because of race, color, creed, religion, sex, marital status, sexual orientation, national origin, ancestry, age, physical or mental disability or medical condition.
2.10. INDEPENDENT CONTRACTOR STATUS: The Parties acknowledge, understand and agree that CONSULTANT and all persons retained or employed by CONSULTANT are, and shall at all times remain, wholly independent contractors and are not officials, officers, employees, departments or subdivisions of CITY. CONSULT ANT shall be solely responsible for the negligent acts and/or omissions of its employees, agents, contractors, subcontractors and subconsultants. CONSULT ANT and all persons retained or employed by CONSULTANT shall have no authority, express or implied, to bind CITY in any manner, nor to incur any obligation, debt or liability of any kind on behalf of, or against, CITY, whether by contract or otherwise, unless such authority is expressly conferred to CONSULTANT under this Agreement or is otherwise expressly conferred by CITY in writing.
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III.
INSURANCE
3.1 DUTY TO PROCURE AND MAINTAIN INSURANCE: Prior to the beginning of and throughout the duration of the Work, CONSULTANT will procure and maintain policies of insurance that meet the requirements and specifications set forth under this Article. CONSULT ANT shall procure and maintain the following insurance coverage, at its own expense:
A. Commercial General Liabilicy Insurance: CONSULT ANT shall procure and maintain Commercial General Liability Insurance ("CGL Coverage") as broad as Insurance Services Office Commercial General Liability coverage (occurrence Form CG 0001) or its equivalent. Such CGL Coverage shall have minimum limits of no less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) in the general aggregate for bodily injury, personal injury, property damage, operations, products and completed operations, and contractual liability.
B. Automobile Liability Insurance: CONSULT ANT shall procure and maintain Automobile Liability Insurance as broad as Insurance Services Office Form Number CA 0001 covering Automobile Liability, Code 1 (any auto). Such Automobile Liability Insurance shall have minimum limits ofno less than One Million Dollars ($1,000,000.00) per accident for bodily injury and property damage.
C. Workers' Compensation Insurance/ Employer's Liabilicy Insurance: A policy of workers' compensation insurance in such amount as will fully comply with the laws of the State of California and which shall indemnify, insure and provide legal defense for both CONSULTANT and CITY against any loss, claim or damage arising from any injuries or occupational diseases occurring to any worker employed by or any persons retained by CONSULTANT in the course of carrying out the Work contemplated in this Agreement.
D. Errors & Omissions Insurance: For the full tenn of this Agreement and for a period of three (3) years thereafter, CONSULTANT shall procure and maintain Errors and Omissions Liability Insurance appropriate to CONSULTANT's profession. Such coverage shall have minimum limits ofno less than One Million Dollars ($1,000,000.00) per claim and Two Millions Dollars ($2,000,000) annual aggregate.
3.2 ADDITIONAL INSURED REQUIREMENTS: The CGL Coverage and the Automobile Liability Insurance shall contain an endorsement naming the CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers as additional insureds.
3.3 REQUIRED CARRIER RATING: All varieties of insurance required under this Agreement shall be procured from insurers admitted in the State of California and authorized to issue policies directly to California insureds. Except as otherwise provided elsewhere under this Article, all required insurance shall be procured from insurers who, according to the latest edition of the Best's Insurance Guide, have
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an A.M. Best's rating of no less than A:VII. CITY may also accept policies procured by insurance carriers with a Standard & Poor's rating of no less than BBB according to the latest published edition of the Standard & Poor's rating guide. As to Workers' Compensation Insurance/ Employer's Liability Insurance, the CITY Representatives are authorized to authorize lower ratings than those set forth in this Section.
3.4 PRIMACY OF CONSULTANT'S INSURANCE: All policies of insurance provided by CONSULTANT shall be primary to any coverage available to CITY or CITY's elected or appointed officials, officers, employees, agents or volunteers. Any insurance or self-insurance maintained by CITY or CITY' s elected or appointed officials, officers, employees, agents or volunteers shall be in excess ofCONSULTANT's insurance and shall not contribute with it.
3.5 WAIVER OF SUBROGATION: All insurance coverage provided pursuant to this Agreement shall not prohibit CONSULTANT or CONSULTANT's officers, employees, agents, subcontractors or subconsultants from waiving the right of subrogation prior to a loss. CONSULT ANT hereby waives all rights of subrogation against CITY.
3.6 VERIFICATION OF COVERAGE: CONSULTANT acknowledges, understands and agrees that CITY's ability to verify the procurement and maintenance of the insurance required under this Article is critical to safeguarding CITY's financial well-being and, indirectly, the collective well-being of the residents of the CITY. Accordingly, CONSULTANT warrants, represents and agrees that it shall furnish CITY with original certificates of insurance and endorsements evidencing the coverage required under this Article on fonns satisfactory to CITY in its sole and absolute discretion. The certificates of insurance and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the CITY if requested. All certificates of insurance and endorsements shall be received and approved by CITY as a condition precedent to CONSULTANT's commencement of any work or any of the Work. Upon CITY's written request, CONSULTANT shall also provide CITY with certified copies of all required insurance policies and endorsements.
IV.
INDEMNIFICATION
4.1 The Parties agree that CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers (hereinafter, the "CITY Indemnitees") should, to the fullest extent permitted by law, be protected from any and all loss, injury, damage, claim, lawsuit, cost, expense, attorneys' fees, litigation costs, or any other cost arising out of or in any way related to, and to the extent of CONSULT ANT'S negligence, recklessness or willful misconduct inthe perfonnance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the CITY Indemnitees with the fullest protection possible under the law. CONSULTANT
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acknowledges that CITY would not enter into this Agreement in the absence of CONSULTANT's commitment to indemnify, defend and protect CITY as set forth herein.
4.2 To the fullest extent permitted by law, CONSULTANT shall indemnify, hold hannless and defend the CITY Indemnitees from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys' fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with and to the extent of CONSULTANT's negligence, recklessness or willful misconduct in the performance of Work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole negligence, active negligence or willful misconduct of the CITY.
4.3 CITY shall have the right to offset against the amount of any compensation due CONSULT ANT under this Agreement any amount due CITY from CONSULTANT as a result ofCONSULTANT's failure to pay CITY promptly any indemnification arising under this Article and related to CONSULTANT's failure to either (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers' compensation laws.
4.4 The obligations of CONSULT ANT under this Article will not be limited by the provisions of any workers' compensation act or similar act. CONSULTANT expressly waives its statutory immunity under such statutes or laws as to CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers.
4.5 CONSULTANT agrees to obtain executed indemnity agreements with provisions identical to those set forth in this Article from each and every subcontractor or any other person or entity involved by, for, with or on behalf of CONSULT ANT in the performance of this Agreement. In the event CONSULT ANT fails to obtain such indemnity obligations from others as required herein, CONSULT ANT agrees to be fully responsible and indemnify, hold harmless and defend CITY and CITY's elected and appointed officials, officers, employees, agents and volunteers from and against any and all claims and losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of CONSULTANT's subcontractors or any other person or entity involved by, for, with or on behalf of CONSULTANT in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys' fees incurred by counsel ofCITY's choice.
4.6 CITY does not, and shall not, waive any rights that it may possess against CONSULT ANT because of the acceptance by CITY, or the deposit with CITY, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.
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4.7 This Article and all provisions contained herein (including but not limited to the duty to indemnify, defend and hold free and hannless) shall survive the termination or normal expiration of this Agreement and is in addition to any other rights or remedies which the CITY may have at law or in equity.
V.
TERMINATION
5.1 TERMINATION WITHOUT CAUSE: CITY may terminate this Agreement at any time for convenience and without cause by giving CONSULT ANT a minimum of five (5) calendar day's prior written notice of CITY's intent to terminate this Agreement. Upon such termination for convenience, CONSULTANT shall be compensated only for those services and tasks which have been performed by CONSULT ANT up to the effective date of the termination. CONSUL TANT may not terminate this Agreement except for cause as provided under Section 5.2, below. If this Agreement is terminated as provided herein, CITY may require CONSULTANT to provide all finished or unfinished Documents and Data, as defined in Section 7.1 below, and other information of any kind prepared by CONSUL TANT in connection with the performance of the Work. CONSULT ANT shall be required to provide such Documents and Data within fifteen (15) calendar days of CITY's written request. No actual or asserted breach of this Agreement on the part of CITY pursuant to Section 5.2, below, shall operate to prohibit or otherwise restrict CITY's ability to terminate this Agreement for convenience as provided under this Section.
5.2 EVENTS OF DEFAULT; BREACH OF AGREEMENT:
A. In the event either Party fails to perform any duty, obligation, service or task set forth under this Agreement (or fails to timely perform or properly perform any such duty, obligation, service or task set forth under this Agreement), an event of default (hereinafter, "Event of Default'') shall occur. For all Events of Default, the Party alleging an Event of Default shall give written notice to the defaulting Party (hereinafter referred to as a "Default Notice") which shall specify: (i) the nature of the Event of Default; (ii) the action required to cure the Event of Default; (iii) a date by which the Event of Default shall be cured, which shall not be less than the applicable cure period set forth under Sections 5.2.B and 5.2C below or if a cure is not reasonably possible within the applicable cure period, to begin such cure and diligently prosecute such cure to completion. The Event of Default shall constitute a breach of this Agreement if the defaulting Party fails to cure the Event of Default within the applicable cure period or any extended cure period allowed under this Agreement.
B. CONSULT ANT shall cure the following Events of Defaults within the following time periods:
i. Within three (3) business days of CITY's issuance of a Default Notice for any failure of CONSULTANT to timely provide CITY or CITY's employees or agents with any information and/or written reports, documentation or work product which CONSULT ANT is obligated to provide to CITY or CITY's employees or agents under this Agreement. Prior to the expiration Page9ofl7
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of the 3-day cure period, CONSULT ANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULTANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 3-day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2 B.i. that exceeds seven (7) calendar days ftom the end of the initial 3-day cure period; or ii. Within fourteen (14) calendar days of CITY's issuance of a Default Notice for any other Event of Default under this Agreement. Prior to the expiration of the 14-day cure period, CONSULTANT may submit a written request for additional time to cure the Event of Default upon a showing that CONSULT ANT has commenced efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 14-day cure period. The foregoing notwithstanding, CITY shall be under no obligation to grant additional time for the cure of an Event of Default under this Section 5.2B.ii that exceeds thirty (30) calendar days ftom the end of the initial 14-day cure period.
In addition to any other failure on the part of CONSULTANT to perform any duty, obligation, service or task set forth under this Agreement (or the failure to timely perform or properly perform any such duty, obligation, service or task), an Event of Default on the part of CONSULT ANT shall include, but shall not be limited to the following: (i) CONSULT ANT's refusal or failure to perform any of the services or tasks called for under the Scope of Work; (ii) CONSULTANT's failure to fulfill or perform its obligations under this Agreement within the specified time or if no time is specified, within a reasonable time; (iii) CONSULTANT's and/or its employees' disregard or violation of any federal, state, local law, rule, procedure or regulation; (iv) the initiation of proceedings under any bankruptcy, insolvency, receivership, reorganization, or similar legislation as relates to CONSULTANT, whether voluntary of involuntary; (v) CONSULTANT's refusal or failure to perform or observe any covenant, condition, obligation or provision of this Agreement; and/or (vii) CITY's discovery that a statement representation or warranty by CONSULT ANT relating to this Agreement is false, misleading or erroneous in any material respect.
C. CITY shall cure any Event of Default asserted by CONSULT ANT within forty-five ( 45) calendar days of CONSULTANT's issuance of a Default Notice, unless the Event of Default cannot reasonably be cured within the 45-day cure period. Prior to the expiration of the 45-day cure period, CITY may submit a written request for additional time to cure the Event of Default upon a showing that CITY has commenced its efforts to cure the Event of Default and that the Event of Default cannot be reasonably cured within the 45-day cure period. The foregoing notwithstanding, an Event of Default dealing with CITY's failure to timely pay any undisputed sums to CONSULTANT as provided under Section 1.4, above, shall be cured by CITY within five (5) calendar days from the date of CONSULTANT's Default Notice to CITY.
D. CITY, in its sole and absolute discretion, may also immediately suspend CONSULTANT's performance under this Agreement pending CONSULTANT's cure of any Event of Default by giving
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CONSULT ANT written notice of CITY' s intent to suspend CONSULTANP s performance (hereinafter, a "Suspension Notice"). CITY may issue the Suspension Notice at any time upon the occurrence of an Event of Default. Upon such suspension, CONSULT ANT shall be compensated only for those services and tasks which have been rendered by CONSULT ANT to the reasonable satisfaction of CITY up to the effective date of the suspension. No actual or asserted breach of this Agreement on the part of CITY shall operate to prohibit or otherwise restrict CITY' s ability to suspend this Agreement as provided herein.
E. No waiver of any Event of Default or breach under this Agreement shall constitute a waiver of any other or subsequent Event of Default or breach. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
F. The duties and obligations imposed under this Agreement and the rights and remedies available hereunder shall be in addition to and not a limitation of any duties, obligations, rights and remedies otherwise imposed or available by law. In addition to any other remedies available to CITY at law or under this Agreement in the event of any breach of this Agreement, CITY, in its sole and absolute discretion, may also pursue any one or more of the following remedies:
1. Upon written notice to CONSULT ANT, the CITY may immediately terminate this Agreement in whole or in part;
ii. Upon written notice to CONSULTANT, the CITY may extend the time of performance; iii. The CITY may proceed by appropriate court action to enforce the terms of the Agreement to recover damages for CONSULT ANT' s breach of the Agreement or to terminate the Agreement; or
iv. The CITY may exercise any other available and lawful right or remedy.
CONSULT ANT shall be liable for all legal fees plus other costs and expenses that CITY incurs upon a breach of this Agreement or in the CITY' s exercise of its remedies under this Agreement.
G. In the event CITY is in breach of this Agreement, CONSULTANT's sole remedy shall be the suspension or termination of this Agreement and/or the recovery of any unpaid sums lawfully owed to CONSULT ANT under this Agreement for completed services and tasks.
5.3 SCOPE OF WAIVER: No waiver of any default or breach under this Agreement shall constitute a waiver of any other default or breach, whether of the same or other covenant, warranty, agreement, tenn, condition, duty or requirement contained in this Agreement. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
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5.4 SURVIVING ARTICLES. SECTIONS AND PROVISIONS: The termination of this Agreement pursuant to any provision of this Article or by normal expiration of its term or any extension thereto shall not operate to terminate any Article, Section or provision contained herein which provides that it shall survive the termination or normal expiration of this Agreement.
VI.
MISCELLANEOUS PROVISIONS
6.1 DOCUMENTS & DATA; LICENSING OF INTELLECTUAL PROPERTY: All Documents and Data shall be and remain the property of CITY without restriction or limitation upon their use or dissemination by CITY. For purposes of this Agreement, the term "Documents and Data" means and includes all reports, analyses, correspondence, plans, drawings, designs, renderings, specifications, notes, summaries, strategies, charts, schedules, spreadsheets, calculations, lists, data compilations, documents or other materials developed and/or assembled by or on behalf of CONSULTANT in the performance of this Agreement and fixed in any tangible medium of expression, including but not limited to Documents and Data stored digitally, magnetically and/or electronically. This Agreement creates, at no cost to CITY, a perpetual license for CITY to copy, use, reuse, disseminate and/or retain any and all copyrights, designs, and other intellectual property embodied in all Documents and Data.
CONSULT ANT shall require all subcontractors and subconsultants working on behalf of CONSULT ANT in the performance of this Agreement to agree in writing that CITY shall be granted the same right to copy, use, reuse, disseminate and retain Documents and Data prepared or assembled by any subcontractor or subconsultant as applies to Documents and Data prepared by CONSULTANT in the performance of this Agreement.
6.2 CONFIDENTIALITY: All data, documents, discussion, or other information developed or received by CONSULT ANT or provided for performance of this Agreement are deemed confidential and shall not be disclosed by CONSULT ANT without prior written consent by CITY. CITY shall grant such consent if disclosure is legally required. Upon request, all CITY data shall be returned to CITY upon the termination or expiration of this Agreement. CONSULT ANT shall not use CITY' s name or insignia, photographs, or any publicity pertaining to the Work in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of CITY.
6.3 FALSE CLAIMS ACT: CONSULTANT warrants and represents that neither CONSULTANT nor any person who is an officer of, in a managing position with, or has an ownership interest in CONSULT ANT has been determined by a court or tribunal of competent jurisdiction to have violated the False Claims Act, 31 U.S.C., Section 3789 et seq. and the California False Claims Act, Government Code Section 12650 et seq.
6.4 NOTICES: All notices permitted or required under this Agreement shall be given to the respective Parties at the following addresses, or at such other address as the respective Parties may provide in writing for this purpose:
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CONSULTANT:
Willdan Engineering
13191 Crossroads Parkway North, Suite 405
Industry, CA 91746-3443
Attn: William Pagett
CITY:
City of Cudahy
5220 Santa Ana Street
Cudahy, CA 90201
Attn: City Manager
Phone: (323) 773-5143
Fax: (323) 771-2072
Such notices shall be deemed effective when personally delivered m: successfully transmitted by facsimile as evidenced by a fax confirmation slip or when mailed, forty-eight ( 48) hours after deposit with the United States Postal Service, first class postage prepaid and addressed to the Party at its applicable address.
6.5 COOPERATION; FURTHER ACTS: The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as are reasonably necessary, appropriate or convenient to achieve the purposes of this Agreement.
6.6 SUBCONTRACTING: CONSULTANT shall not subcontract any portion of the Work required by this Agreement, except as expressly stated herein, without the prior written approval of CITY. Subcontracts (including without limitation subcontracts with subconsultants), if any, shall contain a provision making them subject to all provisions stipulated in this Agreement, including provisions relating to insurance requirements and indemnification.
6.7 CITY'S RIGIIT TO EMPLOY OTHER CONSULTANTS: CITY reserves the right to employ other contractors in connection with the various projects worked upon by CONSULTANT.
6.8 PROHIBITED INTERESTS: CONSULTANT warrants, represents and maintains that it has not employed nor retained any company or person, other than a bona fide employee working solely for CONSULTANT, to solicit or secure this Agreement. Further, CONSULTANT warrants and represents that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for CONSULT ANT, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. For breach or violation of this warranty, CITY shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of CITY, during the term of his or her service with CITY, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
6.9 TIME IS OF THE ESSENCE: Time is of the essence for each and every provision of this Agreement.
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6.10 GOVERNING LAW AND VENUE: This Agreement shall be interpreted and governed according to the laws of the State of California. In the event of litigation between the Parties, venue, without exception, shall be in the Los Angeles County Superior Court of the State of California. If, and only if, applicable law requires that all or part of any such litigation be tried exclusively in federal court, venue, without exception, shall be in the Central District of California located in the City of Los Angeles, California.
6.11 ATTORNEYS' FEES: If either Party commences an action against the other Party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing Party in such litigation shall be entitled to have and recover from the losing Party reasonable attorneys' fees and all other costs of such action.
6.12 SUCCESSORS AND ASSIGNS: This Agreement shall be binding on the successors and assigns of the Parties.
6.13 NO TIDRD PARTY BENEFIT: There are no intended third party beneficiaries of any right or obligation assumed by the Parties. All rights and benefits under this Agreement inure exclusively to the Parties.
6.14 CONSTRUCTION OF AGREEMENT: This Agreement shall not be construed in favor of, or against, either Party but shall be construed as if the Parties prepared this Agreement together through a process of negotiation and with the advice of their respective attorneys.
6.15 SEVERABILITY: If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
6.16 AMENDMENT: MODIFICATION: No amendment, modification or supplement of this Agreement shall be valid or binding unless executed in writing and signed by both Parties, subject to CITY approval. The requirement for written amendments, modifications or supplements cannot be waived and any attempted waiver shall be void and invalid.
6.17 CAPTIONS: The captions of the various articles, sections and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
6.18 INCONSISTENCIES OR CONFLICTS: In the event of any conflict or inconsistency between the provisions of this Agreement and any of the exhibits attached hereto, the provisions of this Agreement shall control.
6.19 ENTIRE AGREEMENT: This Agreement including all attached exhibits is the entire, complete, final and exclusive expression of the Parties with respect to the matters addressed herein and supersedes all
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other agreements or understandings, whether oral or written, or entered into between CITY and CONSULT ANT prior to the execution of this Agreement. No statements, representations or other agreements, whether oral or written, made by any Party which are not embodied herein shall be valid or binding. No amendment, modification or supplement to this Agreement shall be valid and binding unless in writing and duly executed by the Parties pursuant to Section 6.16, above.
6.20 COUNTERPARTS: This Agreement shall be executed in three (3) original counterparts each of which shall be of equal force and effect. No handwritten or typewritten amendment, modification or supplement to any one counterparts shall be valid or binding unless made to all three counterparts in conformity with Section 6.14, above. One fully executed original counterpart shall be delivered to CONSULT ANT and the remaining two original counterparts shall be retained by CITY.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed the day and year first appearing in this Agreement, above.
CITY OF CUD� WILLDAN ENGINEERING
1 j
By: I(
ager
----
ATTEST:
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EXHIBIT A-SCOPE OF WORK
Proposal for Professional Management Services
Between the City of Cudahy and WILLDAN, Inc.
EXI-DBIT A:
BUILDING OFFICIAL
Under direction of the Director of Community Development, the Building Official manages the City's building plan check, inspection, and building and housing code enforcement activities; develops programs and work objectives; resolves complex administrative and technical problems; and does related work as required.
EXAMPLES OF DUTIES • Duties may include, but are not limited to, the following:
Supervises and participates in the implementation of ordinances and codes relating to the construction or alteration of buildings including the installation of building, plumbing, mechanical, structural and electrical systems and equipment; Supervises building and housing code enforcement;
Checks plans, interprets regulations and makes decisions on technical problems; Develops and establishes policies ensuring efficient issuance of building, electrical, mechanical and plumbing pennits;
Keeps informed on new building methods and materials and their effect upon existing laws; Recommends revisions and updates of building, electrical and plumbing codes; Attends meetings of local, regional and state agencies to keep up•to-date in appropriate fields; Prepares and manages consultant contracts;
Conducts periodic field inspections for conformance to policies and procedures; Confers with architects, contractors, engineers, developers and others, regarding technical issues relating to construction codes and building plans;
Keeps records and prepares reports;
Prepares and administers the division budget and fee system; Supervises, trains and completes performance evaluations for the Building Division technical staff;
Prepares staff reports and makes presentations to the City Council, Building Board of Appeals and other city boards and commissions;
Answers inquiries and complaints.
CITY ENGINEER:
Designs and serves as project management of various public works projects and programs, including roadways, utilities, buildings, traffic signals, traffic lighting, water/wastewater systems, natural gas systems, drainage structures, assessment district, traffic and bond issue projects.
Duties and Responsibilities:
Plans, reviews, designs and certifies drawings for roadways, streets, drainage, utilities, buildings and other structures and systems; conducts field inspections of projects; signs and seals engineering plans, reports, specifications and contract documents.
Drafts and creates engineering drawings from field data, sketches, drawings, raw data, diagrams and verbal/written narrative instructions; performs calculations of geometric designs for public works projects.
Serves as project manager in coordinating the various aspects of design projects and engineering related programs, including preparing preliminary and final cost estimates; construction plans, contract documents, material specifications, acquisition of right of way and easements.
Responds to inquiries from the public regarding information requests, complaints or concerns; provides information and documentation regarding various projects.
Perform the lead role in the review and the coordination and administration of assessment districts, Bond Issue Projects in order to provide a coordinated, effective, cost-efficient project.
Prepare Requests for Proposals for professional engineering services needed by the City.
Coordinate projects with external agencies and other utility companies.
Reviews construction plans for compliance with the City design standards, Subdivision Code and Uniform Building Code, and other applicable codes, guidelines and standards.
Performs special studies of the existing infrastructure; recommends improvements and prepares technical reports.
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6 EXHIBIT “C”
FEE SCHEDULE
WILLDAN ENGINEERING
Schedule of Hourly Rates
Effective July 1, 2023 to June 30, 2024
** For Non-Prevailing Wage Project *** For Prevailing Wage Project Mileage/Field Vehicle usage will be charged at the rate in accordance with the current FTR mileage reimbursement rate, subject to negotiation.
Additional billing classifications may be added to the above listing during the year as new positions are created. Consultation in connection with litigation and court appearances will be quoted separately. The above schedule is for straight time. Overtime will be charged at 1.5 times, and Sundays and holidays, 2.0 times the standard rates. Blueprinting, reproduction, messenger services, and printing will be invoiced at cost plus fifteen percent (15%). A sub consultant management fee of fifteen percent (15%) will be added to the direct cost of all sub consultant services to provide for the cost of administration, consultation, and coordination. Valid July 1, 2023 thru June 30, 2024, thereafter, the rates may be raised once per year to the value between the 12-month % change of the Consumer Price Index for the Los Angeles/Orange County/Sacramento/San Francisco/San Jose area and five percent. For prevailing wage classifications, the increase will be per the prevailing wage increase set by the California Department of Industrial Relations.
Rev V02 05.12.2023
DESIGN ENGINEERING
Technical Aide I $77
Technical Aide II $100
Technical Aide III $120
CAD Operator I $126
CAD Operator II $146
CAD Operator III $162
GIS Analyst I $164
GIS Analyst II $180
GIS Analyst III $191
Environmental Analyst I $140
Environmental Analyst II $157
Environmental Analyst III $166
Environmental Specialist $180
Designer I $168
Designer II $174
Senior Designer I $184
Senior Designer II $193
Design Manager $191
Senior Design Manager $198
Project Manager I $177
Project Manager II $197
Project Manager III $207
Project Manager IV $223
Principal Project Manager $227
Program Manager I $197
Program Manager II $209
Program Manager III $228
Assistant Engineer I $137
Assistant Engineer II $153
Assistant Engineer III $161
Assistant Engineer IV $170
Associate Engineer I $179
Associate Engineer II $186
Associate Engineer III $190
Senior Engineer I $194
Senior Engineer II $198
Senior Engineer III $201
Senior Engineer IV $204
Supervising Engineer $209
Traffic Engineer I $209
Traffic Engineer II $223
City Engineer I $223
City Engineer II $227
Deputy Director $231
Director $237
Principal Engineer $257
BUILDING AND SAFETY
Assistant Code Enforcement Officer $103
Code Enforcement Officer $118
Senior Code Enforcement Officer $139
Supervisor Code Enforcement $168
Plans Examiner Aide $110
Plans Examiner $168
Senior Plans Examiner $184
Assistant Construction Permit Specialist $118
Construction Permit Specialist $124
Senior Construction Permit Specialist $146
Supervising Construction Permit
Specialist
$154
Assistant Building Inspector $139
Building Inspector $154
Senior Building Inspector $168
Supervising Building Inspector $184
Inspector of Record $196
Deputy Building Official $196
Building Official $198
Plan Check Engineer $192
Supervising Plan Check Engineer $194
Principal Project Manager $227
Deputy Director $231
Director $237
PLANNING
CDBG Technician $82
CDBG Specialists $98
CDBG Analyst $116
CDBG Coordinator $144
CDBG Manager $174
Housing Programs Coordinator $144
Planning Technician $123
Assistant Planner $154
Associate Planner $168
Senior Planner $191
Principal Planner $198
Planning Manager $211
Deputy Director $231
Director $237
ADMINISTRATIVE
Administrative Assistant I $95
Administrative Assistant II $114
Administrative Assistant III $133
Project Accountant I $107
Project Accountant II $125
Project Controller I $133
Project Controller II $150
CONSTRUCTION MANAGEMENT
Labor Compliance Specialist $139
Labor Compliance Manager $174
Utility Coordinator $167
Office Engineer I $140
Office Engineer II $159
Assistant Construction Manager $152
Construction Manager $176
Senior Construction Manager $191
Resident Engineer I $198
Resident Engineer II $206
Project Manager IV $223
Deputy Director $231
Director $237
INSPECTION SERVICES
Public Works Observer ** $125
Public Works Observer *** $151
Senior Public Works Observer** $136
Senior Public Works Observer *** $151
MAPPING AND EXPERT SERVICES
Survey Analyst I $143
Survey Analyst II $164
Senior Survey Analyst $187
Supervisor - Survey & Mapping $197
Principal Project Manager $227
LANDSCAPE ARCHITECTURE
Assistant Landscape Architect $146
Associate Landscape Architect $168
Senior Landscape Architect $184
Principal Landscape Architect $195
Principal Project Manager $227
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“Serving The People” "Sirviendo A La Comunidad"
Staff Report
09/05/2023 Page 1 of 2
STAFF REPORT
Date: September 5, 2023
To: Honorable Mayor/ Members of the City Council
From: Alfonso Noyola, City Manager/Executive Director
By: Daniela Trujillo, Administrative Analyst
Subject: Consideration to Approve and Authorize the City Manager to Execute an Addenda to the Cooperative Master Equity Lease Agreement with Enterprise FM Trust for the Leasing of Vehicles
RECOMMENDATION
The City Council is requested to authorize the City Manager to execute an addenda to the Cooperative Master Equity Lease Agreement with Enterprise FM Trust to lease three vehicles for an amount not to exceed $153,493 for a 60 month term.
BACKGROUND
1. On March 20, 2018, the City Council approved a Master Lease Agreement with Enterprise FM for Leasing Services.
2. On August 17,2023, City staff received two quotes from Enterprise FM to lease two vehicles for a 60-month term.
3. On August 24, 2023, City staff received a quote from Enterprise FM to lease one vehicle for a 60-month term.
ANALYSIS
The City currently leases eight vehicles from Enterprise for the Public Works Department and Community Development Department. Due to an increase in staffing, the City assessed it required two additional vehicles to efficiently serve the community.
Item Number
14D
“Serving The People” "Sirviendo A La Comunidad"
Staff Report
09/05/2023 Page 2 of 2
The City will be returning the Toyota Highlander due to the lease expiration and will also lease two additional vehicles. The proposed vehicles to be leased are a Toyota RAV4 Prime, Toyota Prius Prime, and Kia Sorento. The Toyota RAV4 Prime would be assigned to our Maintenance Superintendent in the Public Works Department for routine daily use, the Toyota Prius Prime would be assigned to Administration for appropriate trainings or meetings held outside of the City, and the Kia Sorento would be assigned to the Engineering Division in the Public Works department for inspections.
Leasing vehicles is a more convenient option for the City because it allows you to pay overtime rather than a large amount at once. Leasing a vehicle also gains equity overtime, which could then be applied to future vehicles. Currently the Toyota Highlander holds equity, once that vehicle is sold the equity that is received would be used towards the Toyota RAV4 lease.
Moreover, staff identified AQMD as the funding source to fund the remaining balance of the Toyota RAV4 and the two additional vehicle leases. The City is responsible for the ongoing maintenance of the vehicle, which has already been allocated in this fiscal year budget. Wear and tear should not be an issue since these vehicles are typically driven within City limits.
According to AQMD guidelines, leased vehicles must be electric or run on alternative fuels. As a result, the stated vehicles were determined to be appropriate and eligible. All three leases are environmentally friendly as they are plug-in hybrid electric vehicles, which typically emit less greenhouse gas than conventional vehicles. If approved, the attached quotes (Attachment B) would be included as an addenda to the original Master Lease Agreement, adding to the current leased vehicle schedule.
CONCLUSION
The City Council is requested to authorize the City Manager to execute an addenda to the Cooperative Master Equity Lease Agreement with Enterprise FM Trust to lease three vehicles for a 60 month term (i.e., 5 years), not to exceed $153,493 using AQMD funds.
FINANCIAL IMPACT
The not to exceed amount for all three vehicles is $153,493. The funds have been allocated in this fiscal year budget in AQMD revenues, approximately $30,698.60 per fiscal year. The City receives sufficient annual revenues to support an expansion of the fleet vehicles with no impact to the General Fund.
ATTACHMENTS
A. Master Equity Lease Agreement with Enterprise FM
B. Enterprise Fleet Management Open-End (Equity) Lease Rate Quotes
Atachment "A"
Master Equity Lease Agreement with Enterprise FM
Attachment "B"
Enterprise Fleet Management Open-End (Equity) Lease Rate Quotes
Prepared For: City of Cudahy Date 08/24/2023
Trujillo, Aurelio AE/AM NJC/NJC
Unit #
Year 2023 Make Kia Model Sorento Plug-In Hybrid
Series SX Prestige 4dr All-Wheel Drive
Vehicle Order Type In-Stock Term 60 State CA Customer# 575937 $ 54,565.00 Capitalized Price of Vehicle1
$ 0.00 * Sales Tax 0.0000% State CA
$ 740.31 * Initial License Fee
$ 200.00 * Registration Fee
$ 0.00 Other:Courtesy Delivery Fee
$ 0.00 Capitalized Price Reduction
$ 0.00 Tax on Capitalized Price Reduction
$ 0.00 Gain Applied From Prior Unit
$ 0.00 * Tax on Gain On Prior
$ 0.00 * Security Deposit
$ 0.00 * Tax on Incentive ( Taxable Incentive Total : $0.00 ) All language and acknowledgments contained in the signed quote apply to all vehicles that are ordered under this signed quote.
Order Information
Driver Name
Exterior Color (0 P) Steel Gray
Interior Color (0 I) Gray w/Genuine Perforated Leather Seat Lic. Plate Type Exempt
GVWR 0
$ 54,565.00 Total Capitalized Amount (Delivered Price)
$ 736.63 Depreciation Reserve @ 1.3500%
$ 307.02 Monthly Lease Charge (Based on Interest Rate - Subject to a Floor) 2 $ 1,043.65 Total Monthly Rental Excluding Additional Services Additional Fleet Management
Master Policy Enrollment Fees
$ 0.00 Commercial Automobile Liability Enrollment
Liability Limit $0.00
$ 0.00 Physical Damage Management Comp/Coll Deductible 0 / 0 $ 0.00 Full Maintenance Program 3 Contract Miles 0 OverMileage Charge $ 0.0600 Per Mile Incl: # Brake Sets (1 set = 1 Axle) 0 # Tires 0 Loaner Vehicle Not Included $ 0.00 Additional Services SubTotal
$ 106.97 Sales Tax 10.2500% State CA
$ 1,150.62 Total Monthly Rental Including Additional Services $ 10,367.20 Reduced Book Value at 60 Months
$ 400.00 Service Charge Due at Lease Termination
Quote based on estimated annual mileage of 5,000
(Current market and vehicle conditions may also affect value of vehicle) (Quote is Subject to Customer's Credit Approval)
Notes
Enterprise FM Trust will be the owner of the vehicle covered by this Quote. Enterprise FM Trust (not Enterprise Fleet Management) will be the Lessor of such vehicle under the Master Open - End (Equity) Lease Agreement and shall have all rights and obligations of the Lessor under the Master Open - End (Equity) Lease Agreement with respect to such vehicle.
Lessee must maintain insurance coverage on the vehicle as set forth in Section 11 of the Master Open-End (Equity) Lease Agreement until the vehicle is sold.
ALL TAX AND LICENSE FEES TO BE BILLED TO LESSEE AS THEY OCCUR.
Lessee hereby authorizes this vehicle order, and agrees to lease the vehicle on the terms set forth herein and in the Master Equity Lease Agreement. In the event Lessee fails or refuses to accept delivery of the ordered vehicle, Lessee agrees that Lessor shall have the right to collect damages, including, but not limited to, a $500 disposal fee, interest incurred, and loss of value.
LESSEE City of Cudahy
BY TITLE DATE
* INDICATES ITEMS TO BE BILLED ON DELIVERY.
1 Capitalized price of vehicle may be adjusted to reflect final manufacturer's invoice, plus a pre delivery interest charge. Lessee hereby assigns to Lessor any manufacturer rebates and/or manufacturer incentives intended for the lessee, which rebates and/or incentives have been used by Lessor to reduce the capitalized price of the vehicle. 2 Monthly lease charge will be adjusted to reflect the interest rate on the delivery date (subject to a floor). 3 The inclusion herein of references to maintenance fees/services are solely for the administrative convenience of Lessee. Notwithstanding the inclusion of such references in this [Invoice/Schedule/Quote], all such maintenance services are to be performed by Enterprise Fleet Management, Inc., and all such maintenance fees are payable by Lessee solely for the account of Enterprise Fleet Management, Inc., pursuant to that certain separate [Maintenance Agreement] entered into by and between Lessee and Enterprise Fleet Management, Inc.; provided that such maintenance fees are being billed by Enterprise FM Trust, and are payable at the direction of Enterprise FM Trust, solely as an authorized agent for collection on behalf of Enterprise Fleet Management, Inc.
Open-End (Equity) Lease Rate Quote Quote No: 7445491
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Aftermarket Equipment Total
Description (B)illed or (C)apped Price
Legacy Auto Transporter C $ 575.00
Total Aftermarket Equipment Billed $ 0.00
Total Aftermarket Equipment Capitalized $ 575.00
Aftermarket Equipment Total $ 575.00
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VEHICLE INFORMATION:
2023 Kia Sorento Plug-In Hybrid SX Prestige 4dr All-Wheel Drive - US Series ID: T4492
Pricing Summary:
INVOICE MSRP
Base Vehicle $48,741 $49,990.00
Total Options $1,820.00 $1,920.00
Destination Charge $1,325.00 $1,325.00
Total Price
SELECTED COLOR:
Exterior: KLG-(0 P) Steel Gray
Interior: GYT-(0 I) Gray w/Genuine Perforated Leather Seat Trim SELECTED OPTIONS:
CODE DESCRIPTION INVOICE MSRP
001 Destination & Delivery Charge $1,325.00 $1,325.00
CF Carpet Floor Mats $187.00 $225.00
CO Cargo Cover $160.00 $190.00
CTS Carpeted Cargo Mat w/Seatback Protection $94.00 $115.00 GYT_02 (0 I) Gray w/Genuine Perforated Leather Seat Trim NC NC KLG_01 (0 P) Steel Gray NC NC
PAINT Monotone Paint Application STD STD
STDAX Axle Ratio: 3.648 STD STD
STDEN Engine: 1.6L Turbocharged GDI STD STD
STDGV GVWR: 5,953 lbs STD STD
STDRD Radio: AM/FM/HD Radio/SiriusXM Audio System STD STD STDST Heated & Ventilated Front Bucket Seats STD STD
STDTM Genuine Perforated Leather Seat Trim STD STD
STDTN Transmission: 6-Speed Automatic STD STD
STDTR Tires: 235/55R19 STD STD
STDWL Wheels: 19" Machine-Finished Alloy STD STD
WL Wheel Locks $54.00 $65.00
$51,886.00 $53,235.00
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CONFIGURED FEATURES:
Body Exterior Features:
Number Of Doors 4
Rear Cargo Door Type: Smart Power Liftgate
Driver And Passenger Mirror: power remote heated power folding side-view door mirrors with turn signal indicator Spoiler: rear lip spoiler
Door Handles: body-coloured
Front And Rear Bumpers: body-coloured front and rear bumpers Front Bumper Insert: metal-look front bumper insert
Rear Bumper Insert: metal-look rear bumper insert
Body Material: fully galvanized steel body material
Roof Rack: rails only
Grille: black w/chrome surround grille
Convenience Features:
Air Conditioning automatic dual-zone front air conditioning Air Filter: air filter
Rear Air Conditioning: rear air conditioning with separate controls Console Ducts: console ducts
Voice Activated A/C: voice activated air conditioning
Seat Memory: 2 driver memory seat settings
Cruise Control: cruise control with steering wheel controls, distance pacing Trunk/Hatch/Door Remote Release: proximity cargo access remote release Fuel Remote Release: power fuel remote release
Power Windows: power windows with front and rear 1-touch down 1/4 Vent Rear Windows: power rearmost windows
Remote Keyless Entry: keyfob (all doors) remote keyless entry Illuminated Entry: illuminated entry
Integrated Key Remote: integrated key/remote
Auto Locking: auto-locking doors
Passive Entry: Smart Key proximity key
Trunk FOB Controls: keyfob trunk/hatch/door release
Remote Engine Start: remote start - keyfob and smart device (subscription required) Steering Wheel: heated steering wheel with manual tilting, manual telescoping Day-Night Rearview Mirror: day-night rearview mirror
Auto-dimming Rearview Mirror: auto-dimming rearview mirror Driver and Passenger Vanity Mirror: illuminated auxiliary driver and passenger-side visor mirrors Garage Door Opener: HomeLink garage door transmitter
Emergency SOS: emergency communication system
Navigation System: navigation system with voice activation Front Cupholder: front and rear cupholders
Floor Console: full floor console with covered box
Overhead Console: mini overhead console with storage
Glove Box: illuminated locking glove box
Driver Door Bin: driver and passenger door bins
Rear Door Bins: rear door bins
Seatback Storage Pockets: 2 seatback storage pockets
Driver Footrest: driver's footrest
Retained Accessory Power: retained accessory power
Power Accessory Outlet: 2 12V DC power outlets
AC Power Outlet: 1 120V AC power outlet
Entertainment Features:
radio radio grade SiriusXM AM/FM/HD/Satellite with seek-scan Radio Data System: radio data system
Amplifier: premium amplifier
Digital Signal Processor: digital signal processor
Voice Activated Radio: voice activated radio
Speed Sensitive Volume: speed-sensitive volume
Steering Wheel Radio Controls: steering-wheel mounted audio controls Printed On 08/24/2023 04:21:18 PM Page
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Speakers: 12 Bose speakers
1st Row LCD: 2 1st row LCD monitor
Wireless Connectivity: wireless phone connectivity
Antenna: fixed antenna
Lighting, Visibility and Instrumentation Features:
Headlamp Type delay-off projector beam LED low/high beam headlamps Auto-Dimming Headlights: High Beam Assist (HBA) auto high-beam headlights Front Fog Lights: front fog lights
Front Wipers: variable intermittent rain detecting wipers wipers Rear Window wiper: fixed interval rear window wiper
Rear Window Defroster: rear window defroster
Rear Side Blinds: rear side blind
Tinted Windows: deep-tinted windows
Dome Light: dome light with fade
Front Reading Lights: front and rear reading lights
Variable IP Lighting: variable instrument panel lighting Display Type: digital appearance
Tachometer: tachometer
Exterior Temp: outside-temperature display
Low Tire Pressure Warning: tire specific low-tire-pressure warning Park Distance Control: Parking Distance Warning - Forward & Reverse (PDW-F&R) front and rear parking sensors Trip Computer: trip computer
Trip Odometer: trip odometer
Lane Departure Warning: lane departure
Blind Spot Sensor: blind spot
Front Pedestrian Braking: front pedestrian detection
Forward Collision Alert: forward collision
Water Temp Gauge: water temp. gauge
Clock: in-radio display clock
Systems Monitor: driver information centre
Check Control: redundant digital speedometer
Rear Vision Camera: rear vision camera
Oil Pressure Warning: oil-pressure warning
Battery Warning: battery warning
Lights On Warning: lights-on warning
Key in Ignition Warning: key-in-ignition warning
Low Fuel Warning: low-fuel warning
Low Washer Fluid Warning: low-washer-fluid warning
Bulb Failure Warning: bulb-failure warning
Door Ajar Warning: door-ajar warning
Trunk Ajar Warning: trunk-ajar warning
Brake Fluid Warning: brake-fluid warning
Safety And Security:
ABS four-wheel ABS brakes
Number of ABS Channels: 4 ABS channels
Brake Assistance: brake assist
Brake Type: four-wheel disc brakes
Vented Disc Brakes: front ventilated disc brakes
Daytime Running Lights: daytime running lights
Spare Tire Type: compact spare tire
Spare Tire Mount: underbody mounted spare tire w/crankdown Driver Front Impact Airbag: driver and passenger front-impact airbags Driver Side Airbag: seat-mounted driver and passenger side-impact airbags Overhead Airbag: curtain 1st and 2nd row overhead airbag Knee Airbag: knee airbag
Occupancy Sensor: front passenger airbag occupancy sensor Height Adjustable Seatbelts: height adjustable front seatbelts Seatbelt Pretensioners: front seatbelt pre-tensioners
3Point Rear Centre Seatbelt: 3 point rear centre seatbelt Printed On 08/24/2023 04:21:18 PM Page
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Side Impact Bars: side-impact bars
Perimeter Under Vehicle Lights: remote activated perimeter/approach lights Tailgate/Rear Door Lock Type: tailgate/rear door lock included with power door locks Rear Child Safety Locks: rear child safety locks
Ignition Disable: immobilizer
Security System: security system
Panic Alarm: panic alarm
Tracker System: tracker system
Electronic Stability: electronic stability stability control with anti-roll Traction Control: ABS and driveline traction control
Front and Rear Headrests: manual adjustable front head restraints Rear Headrest Control: 2 rear head restraints
3rd Row Headrests: 2 power adjustable third row head restraints Seats And Trim:
Seating Capacity max. seating capacity of 6
Front Bucket Seats: front bucket seats
Front Heated Cushion: driver and passenger heated-cushions Front Heated Seatback: driver and passenger heated-seatbacks Heated Rear Seat: heated rear seat
Ventilated Seats: ventilated front seats
Number of Driver Seat Adjustments: 10-way driver and passenger seat adjustments Reclining Driver Seat: power reclining driver and passenger seats Driver Lumbar: power 4-way driver and passenger lumbar support Driver Height Adjustment: power height-adjustable driver and passenger seats Driver Thigh Support: power driver and passenger thigh support Driver Fore/Aft: power driver and passenger fore/aft adjustment Driver Cushion Tilt: power driver and passenger cushion tilt Front Centre Armrest Storage: front centre armrest
Rear Seat Type: rear manual reclining 50-50 captain seat Rear Seat Fore/Aft: manual rear seat fore/aft adjustment Rear Folding Position: rear seat fold-forward seatback
Rear Seat Mounted Armrests: rear seat mounted armrest
3rd Row Seat Type: fixed third row 50-50 split-bench seat 3rd Row Electric Control: fold into floor third row seat Leather Upholstery: leather front and rear seat upholstery Headliner Material: full cloth headliner
Floor Covering: full carpet floor covering
LeatherSteeringWheel: leather steering wheel
Floor Mats: carpet front and rear floor mats
Interior Accents: piano black/metal-look interior accents Cargo Space Trim: carpet cargo space
Trunk Lid: plastic trunk lid/rear cargo door
Cargo Mats: carpet cargo mat
Cargo Cover: roll-up cargo cover
Cargo Tie Downs: cargo tie-downs
Cargo Light: cargo light
Concealed Cargo Storage: concealed cargo storage
Standard Engine:
Engine 261-hp, 1.6-liter I-4 (hybrid regular gas)
Standard Transmission:
Transmission 6-speed automatic w/ OD and auto-manual
Printed On 08/24/2023 04:21:18 PM Page
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