Garden Grove City Council
June 13, 2023

AGENDA
Garden Grove City
Council
Tuesday, June 13, 2023
6:30 PM
Community Meeting
Center 11300 Stanford
Avenue Garden Grove
California 92840
Steve Jones
Mayor
George S. Brietigam
Mayor Pro Tem - District 1
John R. O'Neill
Council Member - District 2
Cindy Tran
Council Member - District 3
Joe DoVinh
Council Member - District 4
Stephanie Klopfenstein
Council Member - District 5
Kim B. Nguyen
Council Member - District 6
Meeting Assistance: Any person requiring auxiliary aids and services, due to a disability, to address the City Council, should contact the City Clerk's Office 72 hours prior to the meeting to arrange for accommodations. Phone: (714) 741-5040.

Agenda Item Descriptions
: Are intended to give a brief, general description of the item. The City Council may take legislative action deemed appropriate with respect to the item and is not limited to the recommended action indicated in staff reports or the agenda.

Documents/Writings
: Any revised or additional documents/writings related to an item on the agenda distributed to all or a majority of the Council Members within 72 hours of a meeting, are made available for public inspection at the same time (1) in the City Clerk's Office at 11222 Acacia Parkway, Garden Grove, CA 92840, during normal business hours; (2) on the City's website as an attachment to the City Council meeting agenda; and (3) at the Council Chamber at the time of the meeting.

Public Comments
: Members of the public who attend the meeting in-person and would like to address the City Council are requested to complete a pink speaker card indicating their name and address, and identifying the subject matter they wish to address. This card should be given to the City Clerk before the meeting begins. General comments are made during "Oral Communications" and should be limited to matters under consideration and/or what the City Council has jurisdiction over.

Persons wishing to address the City Council regarding a Public Hearing matter will be called to the podium at the time the matter is being considered.

Manner of Addressing the City Council
: After being called by the Mayor, you may approach the podium, it is requested that you state your name for the record, and proceed to address the City Council. All remarks and questions should be addressed to the City Council as a whole and not to individual Council Members or staff members. Any person making impertinent, slanderous, or profane remarks or who becomes boisterous while addressing the City Council shall be called to order by the Mayor.If such conduct continues, the Mayor may order the person barred from addressing the City Council any further during that meeting.

Time Limitation
: When any group of persons wishes to address the City Council on the same subject matter, the Mayor may request a spokesperson be chosen to represent the group, so as to

GARDEN GROVE
avoid unnecessary repetition.At the City Council's discretion, a limit on the total amount of time for public comments during Oral Communications and/or a further limit on the time allotted to each speaker during Oral Communications may be set.

PLEASE SILENCE YOUR CELL PHONES DURING THE MEETING.

AGENDA

COUNCIL MEMBER O'NEILL, COUNCIL MEMBER TRAN, COUNCIL

MEMBER DOVINH, COUNCIL MEMBER KLOPFENSTEIN, COUNCIL
MEMBER K. NGUYEN, MAYOR PRO TEM BRIETIGAM, MAYOR JONES

INVOCATION

PLEDGE OF ALLEGIANCE TO THE FLAG OF THE UNITED STATES OF

AMERICA

1. PRESENTATIONS

1.a. Community Spotlight in recognition of Pacifica High School's Varsity Softball team for winning the CIF Southern Section Division 1 Championship.

1.b.

Community Spotlight in recognition of Pacifica High School's NJROTC program for their history-making placement at the NJROTC Nationals.

2. ORAL COMMUNICATIONS (to be held simultaneously with other legislative bodies)

3. WRITTEN COMMUNICATIONS

3.a. Consideration of a written request from the Korean Festival Committee of Orange County to host the Arirang Festival at Garden Grove Park on October 12, 2023, through October 15, 2023. (Action Item)

3.b. Consideration of a written request from the Honoring Our Fallen Organization for approval of temporary closure of city streets for the Independence Day-Freedom Parade on Saturday, July 1, 2023. (Action Item)
RECESS

CONDUCT OTHER LEGISLATIVE BODIES' BUSINESS

RECONVENE

4. CONSENT ITEMS
(Consent Items will be acted on simultaneously with one motion unless separate discussion and/or action is requested by a Council Member .)

4.a. Adoption of a Proclamation recognizing June 19th as Juneteenth

in Garden Grove. ( Action Item)

4.b. Adoption of a Proclamation declaring June 20th as World Refugee Day in Garden Grove. ( Action Item)

4.c. Award contracts to B&D Towing, dba Balcaceres and Davalos Towing, and Cylinder Enterprises Inc., dba Finish Line Towing to provide on-call towing services as needed by the Police Department. (Action Item)

4.d. Acceptance of grant funds from the California Board of State and Community Corrections (BSCC) for Police Officer Wellness programs. (Grant Funds: $122,162.38) (Action Item)

4.e. Amendment to the Agreement with Woodruff & Smart to adjust the rates for City Attorney services. (Cost $20,000) (Action Item)

4.f. Award a contract to U.S. Bank, N.A. for banking services for Fiscal Years 2023-24 through 2025-26. (Cost: $79,000 per year) (Action Item)

4.g. Adoption of a Resolution Declaring a Surplus Land Exemption for real property located at 11390-11400 Stanford Avenue, Garden Grove. (Action Item)

4.h. Adoption of a Resolution for the Fiscal Year 2023-24 Project List Funded by Senate Bill 1 – The Road to Repair and Accountability Act of 2017. (Action Item)

4.i. Adoption of Resolutions for: Initiating Proceedings for the Levying of Fiscal Year 2023-24 Assessment for the City of Garden Grove Street Lighting District, Street Lighting District No. 99-1, and Park Maintenance District; the Engineer's Report; and Intention for Fixing a Time and Date to Conduct a Public Hearing. (Action Item)

4.j. Approval of the Fiscal Year 2023-24 Downtown Assessment District Budget; Adoption of a Resolution Initiating Proceedings for the Levying of Assessments for Fiscal Year 2023-24; Adoption of a Resolution Approving the Engineer’s Report; and Adoption of a Resolution of Intention Fixing a Time and Date for a Public Hearing. (Action Item)

4.k. Approval of Fiscal Year 2023-24 Measure M2 Seven-Year Capital Improvement Plan; and adoption of a Resolution ensuring conformance of the City’s Circulation Element with the Orange County Transportation Authority Master Plan of Arterial Highways in concurrence with the City’s existing Mitigation Fee Program. (Action Item)

4.l. Approval of writing off certain delinquent obligations owed to the City as uncollectible debt. (Action Item)

4.m. Receive and file warrants. ( Action Item)

4.n. Approval to waive full reading of ordinances listed. ( Action Item)

5. PUBLIC HEARINGS
(Motion to approve will include adoption of each Resolution unless otherwise stated.)

5.a. Adoption of Resolutions approving the biennial budget for Fiscal Year 2023-24 and Fiscal Year 2024-25. ( Action Item)

6. COMMISSION/COMMITTEE MATTERS

6.a. Appointments to the Planning Commission to fill two vacancies. (Action Item)

7. ITEMS FOR CONSIDERATION

7.a. Introduction and first reading of an ordinance to adopt the Paramedic Tax Override Rate for Fiscal Year 2023-24 Entitled: An Ordinance of the City Council of the City of Garden Grove establishing the amount of money for paramedic services that must be raised by an ad valorem tax override and the setting of the tax rate of said override. (Action Item)

7.b. Award a contract to RJ Noble Company to provide material, equipment, and labor for Residential Streets Rehabilitation 2023, City Project No. CP1362023. (Cost: $1,213,545) ( Action Item)

8. MATTERS FROM THE MAYOR, CITY COUNCIL MEMBERS, AND CITY

MANAGER

8.a. Update on the Civic Center Revitalization Project as requested by City Manager Kim.

9. ADJOURNMENT
The next Regular City Council Meeting is scheduled for Tuesday, June 27, 2023, at 5:30 p.m. in the Community Meeting Center, 11300 Stanford Avenue, Garden Grove, California 92840.

Happy Birthday Council Member Klopfenstein

Agenda Item - 3.a.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: John Montanchez
Dept.: City Manager Dept.: Community Services
Subject: Consideration of a written
request from the Korean
Festival Committee of
Orange County to host the
Arirang Festival at Garden
Grove Park on October 12,
2023, through October 15,
2023. (Action Item)
Date: 6/13/2023

OBJECTIVE
To transmit a written request on behalf of the Korean Festival Committee of Orange County (KFCOC) to conduct the Arirang Festival at Garden Grove Park, on Thursday, October 12, 2023 through Sunday, October 15, 2023.

BACKGROUND
For over 30 years, the Korean Chamber of Commerce of Orange County, the Korean Festival Foundation of Orange County, and more recently the KFCOC, have hosted the Annual Arirang Festival, formerly known as the Korean Festival in Garden Grove.

The festivals were previously held at the Brookhurst Triangle, and in most recent years at the Garden Square parking lot on Garden Grove Boulevard.

DISCUSSION
Staff received a written proposal from the KFCOC to host the 39th Arirang Festival at Garden Grove Park beginning Thursday, October 12 through Sunday, October 15, 2023. The KFCOC is a non-profit organization that is in good standing with the Internal Revenue Service and the Secretary of State.

Attached is the proposed event layout for the four-day event that includes carnival rides, food, vendors, and traditional Korean entertainment and activities. If the KFCOC proposal is approved, staff will prepare a formal agreement between the City and the KFCOC. The agreement will include provisions related to the reimbursement for City support and all direct costs, reimbursement for loss revenue as a result of festival activities, allowable festival activities, traffic and parking plan, and insurance requirements.

FINANCIAL IMPACT
Approval of the proposed Arirang Festival at Garden Grove Park will not have a financial impact to the City. The KFCOC would be required to reimburse the City for all of the direct costs incurred to support the Arirang Festival. The amount to be reimbursed by KFCOC has not yet been determined.

RECOMMENDATION
It is recommended that the City Council:

Consider the written proposal from the Korean Festival Committee of Orange County (KFCOC) to conduct the Arirang Festival at Garden Grove Park beginning Thursday, October 12 through Sunday, October 15, 2023; and

If the Arirang Festival proposal is approved, authorize the City Manager to prepare and execute a formal agreement between the City and the KFCOC for the use of Garden Grove Park to conduct the Arirang Festival.

By: Janet Pelayo
Community Services Manager
ATTACHMENTS:

Description Upload Date Type File Name
Written Proposal from
KFCOC for the Arirang
Festival 2023
5/30/2023 Cover Memo Arirnag_Proposal_to_GG_Park_2023.pdf Arirang Festival
Proposed Event Layout
and Activities at GG Park
5/30/2023 Cover Memo Project_Proposal_05_22_2023.pdf

•
•

May 9th, 2023

City of Garden Grove
11222 Acacia Parkway
Garden Grove, Calif. 92840

To: John Montanchez, Community Services Director
Cc: Janet Pelayo, Community Services Manager

S
ubject: Applying Permits for the 39th Arirang Festival in 2023

Dear John Montanchez,

The Korean Festival Committee of Orange County is very pleased to put our Korean Traditional & Culture Events (aka Arirang Festival of Orange County) to the City of Garden Grove. Especially for this year, we are very excited to have the festival with the Vietnamese community together.

We would like to apply for the permit for the 39th Arirang Festival year of 2023 in Garden Grove Park, situated at 9301 Westminster Blvd., Garden Grove, CA 92844. The Entertainment, Activity, and Carnival Ride will take place on October 12 (Thursday) through October 15th (Sunday) of 2023 for 4 days.

The festival theme would be similar to the previous 38th Arirang Festival in the year 2022, though with additional emphasis on the K-POP contests and multicultural traditions.

The Korean Festival Committee of Orange County is a non-profit 501.C3 organization (Entity No:
1773101). We understand will be familiar with the contractual requirements that the City has set for the previous Korean Festival and will agree to such terms and conditions. The detailed program will be developed and submitted to the City of Garden Grove once our proposal is accepted. We are looking forward to your consideration & support.

Should you have further inquiries regarding the above-mentioned matter, please contact the underneath.

You can also contact our project Manager Peter Kim direct at 714.726.7878 or email at [email protected].

Thank You.

Best regards,

Richard C. Jung / President
Korean Festival Committee of Orange County
Direct: 714.653.5010
Email: [email protected]
Web: www.arirangfestival.org

.2 'I!! '1 •t ~ •1 0 ~ I 2J- ;:,1:; }:-II V C l'~ <i•U'IIS I -, (1 -:r, 'I Arirang festiva l Foundation of 'Orange C ounty
2023 Arirang Festival Orange County
Project Proposal

Date: 05/22/2023

Location, Date, and Hours
- Garden Grove Park, Garden Grove, CA
- Oct. 12 th, 2023 to Oct 15th, 2023 / Thursday to Sunday - 10am to 10pm
- Plot map / prediction map is attached

Applicant Info
- Arirang Festival of Orange County
- 7342 Orangethorpe Ave., #A227, Buena Park, CA 90621
- Peter Kim / 714-726-7878 / [email protected]

Number of expecting Participants
- 1 00 vendors / 150 tents / 500 participants

Booth / Tent
- Basic booth size is 10 ft. x 10 ft. x 150 tents (est.) - Expecting 30 to 40 food vendors / planning to place them on west-side of the site which the water sources are located (need to be checked and confirmed with park manager or staff)

Number of expecting audience, spectator and observer
- 2,000 people per hour average

Number of expecting vehicle
- 100 per hour average

Carnival
- W ill be placed on east-side of the site which tours to the fens / divider of the site - Expecting participants are 50 people per hour average

Stage
- Expecting Stage size is 4 ft. High from the ground, 30 ft. Wide and 30 ft. Deep / Detailed Plan for the S
tage will be provided later
- PA system and the Necessary Audio/Video Equipment will be placed at the Corner with the Main Control Room at the End of the Spectator Chairs.

Waste receptacles
- The Waste Receptacles will be Placed Everywhere and the Festival Staffs and Volunteers continuously Monitor and Empty the Receptacles.

Bleachers
- No Bleachers will be established.
- Expecting 300 Chairs will be provided for the Spectators in Front of the Main Stage. - Tables and Chairs will be provided for the Food Court Area and the Beer Garden.

Parking control
- Festival command center will have designated location on the event site for prompt response to any issues that may arise. Staffs and volunteers will communicate via handheld or similar devices for superior communication amongst.
- There will be Volunteers and Staffs who are Strictly Assigned to Assist the Parking and the Traffic inside the Park.
- The Street Parking, if necessary, Assistance Also will be provided by the Festival Committee. - For the Parking needs Local Schools and Churches will be contacted fo r Additional Parking Spaces.

Security
- Private security company will be hired / expecting 4 to 5 security guards will be dispatched during the festival and 5 to 6 security guards for night time security for vendors - Private security company Info (planning to work with same company as 2022):
o Total Protection Group
o 13855 Struikman Rd., Cerritos, CA 90703
o 562-447-8931
o www.tpgsecuritygroup.com
o Contact: victor Cantero

Activities:
10/12 Thursday
6:00 pm Pre-Festival Opening Even t

10/13 Friday
10:00 am Market Place Open
04:00 pm Traditional Korean Dance & Song Contest
06:00 pm Korean Marshall Arts, Tae Kwon Do demonstration 06:30 pm VIP Reception
07:00 pm Festival Opening Ceremo ny
08:00 pm K-Pop Contest 1 st round
10:00 pm End

10/14 Saturday
10:00 am Market Place Open
01:00 pm Youth Speech & Writing Contest, Traditional Games and Competitions 04:00 pm Youth Talents Show
05:00 pm K-Pop Contest & Performances
10:00 pm End

10/15 Sunday
10:00 am Market Place Open
03:00 pm Talent Contest - Senior Citizens
04:00 pm Samul Nori, traditional percussion quartet
05:00 pm K-Pop Contest
09:00 pm Ending Ceremony
10:00 pm End

*The above programs and schedules are projection and estimates. These can be changed later.

iii 35~
0 t2,l~~ J;11 THE 39TH ARIRANG FESTIVAL OF ORANGE COUNTY BOOTH DIRECTORY Arirang Festival of O range C ounty www.arirangfestival.org OCTOBER 12 - OCTOBER 15, 2023 (714) 228-1188

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0 Agenda Item - 3.b.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: John Montanchez
Dept.: City Manager Dept.: Community Services
Subject: Consideration of a written
request from the Honoring
Our Fallen Organization for
approval of temporary
closure of city streets for the
Independence Day-Freedom
Parade on Saturday, July 1,
2023. (Action Item)
Date: 6/13/2023

OBJECTIVE
To transmit a letter from the Honoring Our Fallen non-profit organization that would like to request City Council approval for closure of city streets for the Independence Day-Freedom Parade on Saturday, July 1, 2023.

BACKGROUND
Staff met with residents from the Eastgate Park neighborhood, in Garden Grove, regarding golf cart parade activities in the community. Staff explained the community event and street closure permit process in order for residents to submit a request for a permitted first annual golf cart parade. Requirements include partnership with a local non-profit organization in good standing, insurance coverage, street closure approval, and reimbursement for any direct costs for city support.

DISCUSSION
The Honoring Our Fallen, a Garden Grove based non-profit organization, would like to request the City Council to approve the closure of City streets for the Independence Day-Freedom Parade on Saturday, July 1, 2023 at 3:30 p.m. Staff has confirmed that the organization is in good standing with the Internal Revenue Service and the Secretary of State.

The attached event route has been reviewed by the Police Department Traffic Division. Organizers anticipate approximately 150 golf carts participating in the parade. The Police Department staff and Public Works Streets Division will provide staff support for the closure of city streets during the event.

FINANCIAL IMPACT
Approval of the Independence Day-Freedom Parade will not have an impact on the City's General Fund. The Honoring Our Fallen organization will reimburse the City for direct costs associated with the support of the event. The estimated cost for staff support and equipment use is approximately $3,500, and is expected to be fully reimbursed.

RECOMMENDATION
It is recommended that the City Council consider the written request from the Honoring Our Fallen organization for the Independence Day-Freedom Parade on Saturday, July 1, 2023.

By: Janet Pelayo
Community Services Manager
ATTACHMENTS:

Description Upload Date Type File Name
Letter of Request 5/30/2023 Letter Letter_Request_Independence_Day_Freedom_Parade_2023.pdf Golf Cart Route 5/30/2023 Exhibit Independence_Day_Freedom_Parade_Route_07.01.23.pdf

Honoring Our Fallen
Tax ID# 45-2303543

Dear Mayor and City Council Members:

• Honoring Our Fallen, a non-profit organization would like to request approval to temporarily close city streets for the first annual Independence Day-Freedom Parade.

• We have attached the proposed event route for July 1, 2023, at 3:30pm we anticipate 150 golf carts to participate.

• We're blessed with the opportunity to stand for something, for liberty and fairness. What’s important isn’t the fireworks, it’s
that we come together in our communities and celebrate
our nation’s freedom.

• We will work with sponsors and donors to pay for the city resources and additional funds to support Honoring Our Fallen programs and services.

Warmest Regards,
Laura Herzog
714-904-0253
[email protected]
Founder, CEO

Honoring Our Fallen, Inc. | 12111 Saint Mark St. | Garden Grove, CA 92845 | www.honoringourfallen.org

t t
Golf Cart Parade
1000 ft
N➤➤
NPage 14 of 447
Agenda Item - 4.a.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: Teresa Pomeroy
Dept.: City Manager Dept.: City Clerk
Subject: Adoption of a Proclamation
recognizing June 19th as
Juneteenth in Garden
Grove. (Action Item)
Date: 6/13/2023
Attached is the annual Proclamation recognizing June 19th as Juneteenth in Garden Grove recommended for adoption.

ATTACHMENTS:

Description Upload Date Type File Name
Proclamation 6/6/2023 Proclamation 6-13-
23_Proclamation_for_Junetheenth.pdf

Proclamation
June 19th as Juneteenth

WHEREAS, As stated within the preamble of the United States Declaration of Independence, we are endowed by our Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness; and
WHEREAS, President Abraham Lincoln signed the Emancipation Proclamation on January 1, 1863, declaring the slaves in the Confederate territory free, paving the way for the passing of the 13 th Amendment that formally abolished slavery in the United States of America; and
WHEREAS, Word about the Emancipation Proclamation reached authorities and African-Americans in the South and Southwestern United States on June 19, 1865; and
WHEREAS, In 1996 the first legislation to recognize “Juneteenth Independence Day” was introduced in the U.S. House of
Representatives, under H.J. Resolution 195; and
WHEREAS, In 1997 Congress recognized the day through Senate Joint Resolution 11 and House Joint Resolution 56; and
WHEREAS, June 19th has a special meaning to African-Americans, and is called “Juneteenth” combining the words June and Nineteenth, and has been celebrated by the African-American community for over 150 years.

NOW, THEREFORE, WE, the Garden Grove City Council, do hereby acknowledge and recognize the past struggles to end slavery in the United States in order to form a more perfect union, and to proclaim June 19 th as Juneteenth in Garden Grove.

June 13, 2023

Agenda Item - 4.b.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: Teresa Pomeroy
Dept.: City Manager Dept.: City Clerk
Subject: Adoption of a Proclamation
declaring June 20th as World
Refugee Day in Garden
Grove. (Action Item)
Date: 6/13/2023
Attached is an annual Proclamation recognizing June 20th as World Refugee Day recommended for adoption.

ATTACHMENTS:

Description Upload Date Type File Name
Proclamation 6/6/2023 Proclamation 6-13-
23_Proclamation.World_Refugee_Day.2023.pdf

PROCLAMATION
Honoring World Refugee Day 2023

WHEREAS, World Refugee Day was held globally for the first time on June 20, 2001, commemorating the 50th anniversary of the 1951 Convention relating to the Status of Refugees.

WHEREAS, this year’s theme is: Be a Friend to refugees in your community; WHEREAS, World Refugee Day is a global day to commemorate the courage, strength, and determination of the women, men, and children who are forced to flee their homes under the threats of conflict, violence, and persecution; WHEREAS, At least 79.5 million people around the world have been forced to flee their homes. Among them are nearly 26 million refugees, around half of whom are under the age of 18;
WHEREAS, children account for 40 percent of the refugee population in the world, millions of whom are unable to access basic services including education; WHEREAS, on World Refugee Day we recognize not only the challenges and uncertainty refugees face, but also their will to survive and rebuild their lives. Refugees have made invaluable contributions, expanding our worldviews and enriching our communities with their diverse traditions, perseverance, ingenuity, and hard-earned wisdom;
WHEREAS, the Refugee Forum of Orange County (RFOC) was formed in 1976 as an umbrella group of organizations such as Access California Services, Cal Optima, World Relief, United Nations Association, Orange County Social Services, Orange County Health Care Agency, American Red Cross, Salvation Army, Heart of Mercy, Uplift Charity, Sabil USA, and individuals who work with refugees to assist with their successful resettlement in Orange County;

WHEREAS, more than four decades, the rich diversity of refugees in Orange County included Vietnamese, Cambodians, Cham, Iraqis, Afghans, Syrians, Iranians, East Africans, Mexicans, Salvadorians, Cubans, and many other communities that have contributed to Orange County’s economic and civic prosperity; and

WHEREAS, refugees are public officials, entrepreneurs, doctors, lawyers, teachers, business owners, our neighbors and contributing citizens.

NOW, THEREFORE, BE IT PROCLAIMED, by the Garden Grove City Council that June 20th be officially recognized as World Refugee Day in Garden Grove.

June 13, 2023

Agenda Item - 4.c.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: Amir El-Farra
Dept.: City Manager Dept.: Police Chief
Subject: Award contracts to B&D
Towing, dba Balcaceres and
Davalos Towing, and
Cylinder Enterprises Inc.,
dba Finish Line Towing to
provide on-call towing
services as needed by the
Police Department. ( Action
Item)
Date: 6/13/2023

OBJECTIVE
For the City Council to award contracts to B&D Towing, dba Balcaceres and Davalos Towing (B&D Towing), and Cylinder Enterprises Inc., dba Finish Line Towing (Finish Line Towing), in response to RFP No. S-1309 to provide the Police Department with on-call towing services.

BACKGROUND
The Police Department conducted a request for proposals (RFP No. S-1309) for the purpose of having multiple sources for on-call towing services. Police Officers respond to a variety of calls for service that often include abandoned vehicles, recovering stolen vehicles, processing arrestee's vehicles, and vehicles that have been in traffic collisions. Towing services are used consistently throughout the City for these types of calls for service, and timely services help to ensure the efficiency of the department's operations.

DISCUSSION
RFP No. S-1309 was issued in February 2023 to obtain proposals from more than one towing company for the most effective use of Police Officer's time when responding to calls when towing is needed. The proposals were received in May 2023 with a total of six tow companies that responded. Two of the six companies successfully completed the requirements outlined in RFP No. S-1309 as listed below:

B&D Towing;

•
Finish Line Towing.

FINANCIAL IMPACT
There is no financial impact to the General Fund. Application fees listed in the contracts are collected to reimburse the costs incurred by the Police Department.

Tow companies' charges to vehicle owners for vehicle recovery are subject to the approval of the Police Chief as outlined in the contracts.

RECOMMENDATION
It is recommended that the City Council:

Award contracts with a term of three years and two option years to B&D Towing, dba Balcaceres and Davalos Towing and Cylinder Enterprises Inc., dba Finish Line Towing to provide -call towing services as needed by the Police Department; and

Authorize the City Manager or her designee to execute the contract, approve minor modifications as needed, and exercise the option to extend the contract on behalf of the City.

By: Sergeant
Royce Wimmer
ATTACHMENTS:

Description Upload Date Type File Name
B&D Tow Agreement 6/5/2023 Agreement B.pdf
Finish Line Tow
Agreement 6/5/2023 Agreement Finish_Line_Towing_Contract_2023.pdf

•
•
•
1 Contract for Police Rotational Towing and Storage Services

THIS AGREEMENT is made this day of , 2023, by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY") and B & D Towing Inc., dba Balcaceres and Davalos Towing, hereinafter referred to as “CONTRACTOR”.

RECITALS

The following recitals are a substantive part of this Agreement:

1. This Agreement is entered into pursuant to Garden Grove CITY COUNCIL AUTHORIZATION, DATED _____________________.

2. CITY desires to utilize the services of CONTRACTOR to Provide Police Rotational Towing and Storage Services for the City Of Garden Grove On An On-Call Basis.

3. CONTRACTOR is qualified by virtue of experience, training, education and expertise to provide such services.

AGREEMENT

THE PARTIES MUTUALLY AGREE AS FOLLOWS:

1. Term . The term of the agreement shall be for a period of three (3) fiscal years from full execution of this agreement, with the option to extend the agreement for two (2) additional fiscal years, for a total performance period of five (5) fiscal years. Option years shall be exercised one (1) year at a time at the sole option of the CITY. All service shall be provided in accordance with the Scope of Work, Attachment, “A” which is incorporated herein by reference.

2. Services to be Provided. The services to be performed by CONTRACTOR shall consist of tasks as set forth in the Proposal and Scope of Work. The Proposal is incorporated herein by reference. The Proposal, Scope of Work, and this Agreement do not guarantee any specific amount of work.

3. Compensation. CONTRACTOR shall be compensated as follows: CONTRACTOR may charge vehicle owners the amount(s) not to exceed those charges approved by the City pursuant to the SCOPE OF WORK, attached herein as Attachment “A” and the AUTHORIZED TOWING AND STORAGE FEE SCHEDULE, attached herein as Attachment “B”, which are incorporated herein by this reference.

4. Insurance Requirements .

4.1 COMMENCEMENT OF WORK. CONTRACTOR shall not commence work under this Agreement until all certificates and endorsements have been

2 received and approved by the CITY. All insurance required by this Agreement shall contain a Statement of Obligation on the part of the carrier to notify the CITY of any material change, cancellation, or termination at least thirty (30) days in advance, and a waiver of subrogation, for all policies, waiving subrogation against the City, its officers, officials, agents, employees, and volunteers . All insurance required by this contract shall remain in full force and effect for the duration of this agreement.

4.2 WORKERS COMPENSATION INSURANCE. For the duration of this Agreement, CONTRACTOR and all subcontractors shall maintain Workers Compensation Insurance in the amount and type required by California law, if applicable. The insurer shall waive its rights of subrogation against the CITY, its officers, officials, agents, employees, and volunteers.

4.3 INSURANCE AMOUNTS. CONTRACTOR shall maintain in full force and effect the following insurance for the duration of this Agreement:

(a) Commercial general liability in an amount not less than $5,000,000 per occurrence; (claims made and modified
occurrence policies are not acceptable); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY.

(b) Automobile liability in an amount not less than $5,000,000 combined single limit; (claims made and modified occurrence policies are not acceptable); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A -, Class VII or better, as approved by the CITY.

(c) On-Hook liability in an amount not less than $200,000 per occurrence; (claims made and modified occurrence policies are not acceptable); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A -, Class VII or better, as approved by the CITY.

(d) Garage keepers legal liability, including Garage keepers extra legal liability/ Garage keepers direct in an amount not less than $1,000,000 per occurrence; (claims made and modified
occurrence policies are not acceptable); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY.

(e) Excess liability coverage, following form to the underlying policies, shall be provided for any underlying policy that does not meet the insurance requirements set forth herein (claims made and modified occurrence policies are not acceptable.) Insurance companies must be acceptable to

3 CITY and have a Best’s Guide Rating of A-Class VII or better, as approved by the CITY.

An Additional Insured Endorsement, ongoing and completed operations, for the policy under section 4.3 (a) Commercial general liability, shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.

An Additional Insured Endorsement for the policy under section 4.3 (b), Automobile liability, shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for automobiles owned, leased, hired, or borrowed by the CONTRACTOR.

CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.

An Additional Insured Endorsement for the policy under section 4.3 (c), On-hook liability, shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR.

CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.

An Additional Insured Endorsement, for the policy under section 4.3 (d), Garage Keepers liability, including Garage keepers extra legal liability/Garage keepers direct, shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR, and storage of vehicles. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.

In the event any of CONTRACTO R’S underlying policies do not meet policy limits within the insurance requirements, CONTRACTOR shall provide, under section 4.3(e) Excess liability, the schedule of underlying polices for a follows form excess liability policy, state that the excess policy follows form on the insurance certificate, and an additional insured endorsement for the follows form excess liability policy designating CITY, its officers, officials, employees, agents, and volunteers as additional insureds.

For any claims related to this Agreement, CONTRACTOR’s insurance coverage shall be primary insurance as respects CITY, its officers, officials, employees, agents, and volunteers. Any insurance or self- insurance maintained by the CITY, its officers, officials, employees,

4 agents, or volunteers shall by excess of the CONTRACTOR’s insurance and shall not contribute with it.

4.4 If the CONTRACTOR does not keep all of such insurance policies in full force and effect at all times during the term of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein.

4.5 If the CITY reasonably determines that the amounts of insurance held by the CONTRACTOR pursuant to this Agreement are no longer sufficient, or that additional types of coverage are needed, the CONTRACTOR shall modify the existing coverage or obtain additional policies, as the CITY shall reasonably determine. All new policies shall be on the terms and conditions contained herein.

4.6 The CONTRACTOR shall annually within ten (10) days of the anniversary of the effective date of this Agreement and at any other time requested by CITY, provide to the CITY evidence that all insurance required pursuant to this Agreement continues to be in full force and effect.

4.7 If CONTRACTOR maintains higher insurance limits than the minimums shown above, CONTRACTOR shall provide coverage for the higher insurance limits otherwise maintained by the CONTRACTOR.

5. Non-Liability of Officials and Employees of the City. No official or employee of CITY shall be personally liable to CONTRACTOR in the event of any default or breach by CITY, or for any amount which may become due to CONTRACTOR.

6. Non-Discrimination. CONTRACTOR covenants there shall be no discrimination against any person or group due to race, color, creed, religion, sex, marital status, age, handicap, national origin, or ancestry, in any activity pursuant to this Agreement.

7. Independent Contractor . It is agreed to that CONTRACTOR shall act and be an independent contractor and not an agent or employee of the CITY, and shall obtain no rights to any benefits which accrue to CITY'S employees.

8. Compliance with Law. In performing services pursuant to this Agreement, CONTRACTOR shall at all times comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government, including the provisions of Chapter 5.52 of the Garden Grove Municipal Code, as such chapter may periodically be amended.

5 9. Notices. All notices shall be personally delivered or mailed to the below listed address, or to such other addresses as may be designated by written notice.

These addresses shall be used for delivery of service of process.

IF TO CONTRACTOR: B & D Towing Inc., dba
Balcaceres and Davalos Towing
Attention: Efrain Davalos Jr., President
1502 North Susan Street
Santa Ana, CA 92703

IF TO CITY: City Manager
City of Garden Grove
11222 Acacia Parkway
Garden Grove, CA 92840

WITH COPY TO: Garden Grove City Attorney
11222 Acacia Parkway
Garden Grove, CA 92840

10. Contract Documents. This Agreement shall include the requirements of Chapter 5.52 of the Garden Grove Municipal Code, as such chapter may periodically be amended, the Scope of Work, the CITY’s Request for Proposals and the CONTRACTOR'S proposal which are each incorporated herein by reference. In the event of any inconsistency among these documents, the terms of this Agreement, Chapter 5.52 of the Garden Grove Municipal Code, the Scope of Work, the CITY’s Request for Proposals and lastly the CONTRACTOR’s Proposal shall, in that order, govern.

11. Licenses, Permits, and Fees. At its sole expense, CONTRACTOR shall obtain a Garden Grove Business License, all permits, and licenses as may be required by this Agreement or otherwise to perform the work. CONTRACTOR shall maintain in effect throughout the term of this Agreement all licenses and permits required to perform the services required by this Agreement.

12. Familiarity with Work. By executing this Agreement, CONTRACTOR warrants that: (1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the facilities, difficulties, and restrictions of the work under this Agreement.

Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY of this and shall not proceed, except at CONTRACTOR'S risk, until written instructions are received from CITY.

13. Time of Essence. Time is of the essence in the performance of this Agreement.

14. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability, and reputation of CONTRACTOR, its principals and employees are a substantial inducement for CITY to enter into this Agreement.

CONTRACTOR shall not contract with any other entity to perform the services

6 required without written approval of the CITY. This Agreement may not be assigned voluntarily or by operation of law, without the prior written approval of CITY. If CONTRACTOR is permitted to subcontract any part of this Agreement, CONTRACTOR shall be responsible to CITY for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationship between any subcontractor and CITY. All persons engaged in the work will be considered employees of CONTRACTOR. CITY will deal directly with and will make all payments to CONTRACTOR.

15. Authority to Execute. The persons executing this Agreement on behalf of the parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the parties are formally bound.

16. Indemnification. CONTRACTOR agrees to protect, defend, and hold harmless CITY and its elective or appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including but not limited to, for injury or death of any person, or damage to property, or interference with use of property, arising out of, or in any way connected with performance of the Agreement by CONTRACTOR, CONTRACTOR'S agents, officers, employees, subcontractors, or independent contractors hired by CONTRACTOR. This obligation shall also include payment of reasonable attorney fees and other litigation costs incurred by CITY. The only exception to CONTRACTOR'S responsibility to protect, defend, and hold harmless CITY, shall be due to the sole negligence or intentional wrongful conduct of CITY, or any of its elective or appointive boards, officers, agents, or employees.

This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONTRACTOR.

17. Termination.

17.1 This Agreement may be terminated by the CITY at any time during the initial three (3) year term, or the subsequent one-year terms, if extended, upon breach of this Agreement or violation of the provisions of Chapter

5.52 of the Garden Grove Municipal Code. In the event of termination for cause by the CITY, the CONTRACTOR shall be compensated for those services that have been fully and adequately completed and accepted by the CITY as of the date of termination. The CONTRACTOR shall provide documentation deemed adequate by the CITY to show the services actually completed by the CONTRACTOR prior to the effective date of termination. Termination of this Agreement for cause may be considered by the CITY in determining whether to enter into future contracts with CONTRACTOR.

17.2 This Agreement may also be terminated by the CITY without cause upon thirty (30) days notice. In the event that the CITY should terminate the Agreement without cause, the CONTRACTOR shall be entitled to payment

7 for services fully and adequately provided hereunder prior to the effective date of the termination. The CONTRACTOR shall provide documentation deemed adequate by the CITY to show the services actually completed by the CONTRACTOR prior to the effective date of termination.

17.3 In the event this Agreement is terminated as provided by this Section 17, the CITY may procure, upon such terms and in such manner as it deems appropriate, services similar to those terminated.

17.4 The rights and remedies of the parties provided in this Section 17 are in addition to any other rights and remedies provided by law or under this Agreement.

18. Insolvency. The CONTRACTOR shall not, without the prior written consent of CITY, suffer either the appointment of a receiver to take possession of all, or substantially all of the assets of the CONTRACTOR, or make a general assignment of such assets for the benefit of creditors. Any such action taken or suffered by the CONTRACTOR under any insolvency or bankruptcy proceeding constitutes a breach of contract by the CONTRACTOR, and all property assigned by the CITY for safe care shall be "released" by CONTRACTOR to another assigned service provider, as specified by the Chief of Police, with a reimbursement for towing, storage, and related fees, borne by the service provider assuming the new responsibility.

19. Integration. This Agreement fully expresses all understandings between the parties with respect to the subject matter of this Agreement and supersedes all prior or contemporaneous oral or written understandings or agreements regarding the matters covered by this Agreement.

20. Amendments. No modification, amendment, addition to, deletion or alteration of the terms of this Agreement, whether written or oral, shall be valid unless made in writing and formally approved and executed by all parties.

21. No Waiver.

21.1 No delay or omission in the exercise of any right or remedy available hereunder shall impair such right or remedy or be construed as a waiver.

Any waiver of any default or condition hereunder must be in writing and shall not be construed as a waiver of any other default concerning the same or any other provision of this Agreement.

21.2 The waiver by the CITY of any breach by the CONTRACTOR of any of the provisions of this Agreement, shall not constitute a continuing waiver or a waiver of any subsequent breach or default by the CONTRACTOR either of the same or a different provision of this Agreement.

8 22.Third Party Beneficiaries. The terms of this Agreement are intended to confer benefits only on the parties to this Agreement. No rights of action shall accrue to any other persons or entities under this Agreement.

23. Change of Circumstances. Each party shall promptly notify the other party of any legal impediment, change of circumstances, pending litigation or any other event or condition that may adversely affect such party’s ability to carry out any of its obligations under this Agreement.

24. Severability. If any term or condition, paragraph, phrase or word of this Agreement, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of this Agreement or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

25.Venue. This Agreement shall be governed and construed in accordance with the laws of the State of California. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California, and the parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure section 394.

26.Appropriations. This Agreement is subject to and contingent upon funds being appropriated therefor by the Garden Grove City Council for each fiscal year covered by the term of this Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to the CITY

(Agreement Signature Block on Next Page)

9 IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below.

Date: _____________ "CITY"

CITY OF GARDEN GROVE

By: __________________________

ATTESTED:

____________________________
City Clerk

Date: _______________________
"CONTRACTOR"
B & D Towing Inc., dba
Balcaceres and Davalos Towing

By: ___________________________

Name: ________________________

Title: _________________________

Date: _________________________

Tax ID No. _____________________

If CONTRACTOR is a corporation, a Corporate
Resolution and/or Corporate Seal is required.

If a partnership, Statement of Partnership
must be submitted to CITY.

APPROVED AS TO FORM:

____________________________
Garden Grove City Attorney

________________________
Date

10 ATTACHMENT “A”

RFP No. S-1309

PROVIDE POLICE ROTATIONAL TOWING AND STORAGE SERVICES

TO THE CITY OF GARDEN GROVE ON AN ON-CALL BASIS

SCOPE OF WORK

The City of Garden Grove (CITY) is seeking one or more contractors to Provide Police Rotational Towing and Storage Service for the City Of Garden Grove On An On-Call Basis in accordance with the Scope of Work detailed below. The Contractor shall furnish All Labor, Materials, Equipment and incidentals needed to provide towing and storage services on an on-call basis for the City of Garden Grove. The CITY intends to enter into an Agreement(s) for a fixed period(s) of time with options to renew or extend the Agreement(s) for additional terms, exercised one year at a time.

1. SERVICES GENERALLY

1.1 The CONTRACTOR has the right to tow, impound, and store vehicles at the direction of the Garden Grove Police Department (hereinafter “Police Department” or “G.G.P.D.”) within or out of the jurisdictional boundaries of the CITY, subject to the Police Department’s call-for-service system, as it may be amended from time to time, at the Police Department’s sole discretion.

1.2 Provided, however, that nothing contained herein shall deprive the owner or operator of a vehicle from requesting and receiving towing services from a person or entity other than the CONTRACTOR.

1.3 Provided, however, that when, in the opinion of the Police Department, an emergency exists, or where the CONTRACTOR is either unable or unwilling for any reason to provide adequate or timely tow service, the Police Department shall have the right to call other tow services, which may or may not be under contract with the CITY. Under such circumstances, the decision to call another tow service, either under contract or not, shall be at the exclusive discretion of the Police Department.

2. LOCATION

2.1 CONTRACTOR shall maintain a physical location with a yard for vehicle storage, along with an office for payment of fees and vehicle releases, which location shall be within 2.5 miles of the CITY limits , and from which the business shall be conducted. Such physical location shall be subject to approval by the Chief of Police or his/her designee. A company may establish and maintain an additional location within or outside the CITY as a yard for vehicle storage, subject to the approval by the Chief of Police or his/her designee.

Except as otherwise directed by the Police Department, each vehicle towed

11 pursuant to this Scope of Work shall be stored at a facility, which is located within 2.5 miles of the CITY limits. Distance shall be measured by distance straight line, without regard to intervening structures or objects, from the nearest point on the property line of the parcel where the tow service facility is located to the nearest point on the city limit boundary. All business offices and storage facilities shall meet all requirements of the contract and the Scope of Work within this RFP document.

2.2 All vehicles stored or impounded at the direction of the Police Department shall be towed directly to the CONTRACTOR’s impound and storage facilities, unless the Police Department requests that they be taken to some other location. If the vehicle is towed pursuant to a citizen request, then at the request of the citizen the vehicle can be stored at any business location of the owner, which has been approved, by the Chief of Police, or his/her designee.

2.3 Any proposed change in the CONTRACTOR’s facility locations shall be reported, in writing, to the police department at least sixty (60) days prior to making such change. The CONTRACTOR shall obtain the approval of the Chief of Police or his/her designee for any change of location.

3. PERSONNEL

3.1 CONTRACTOR shall comply with, and ensure that each of its tow truck drivers complies with, Garden Grove Municipal Code (“GGMC”) Sections 5.52.330 and

5.52.340 (tow truck driver permit requirements). The CITY shall review each application in accordance with Sections 5.52.330 and 5.52.340.

3.2 No person employed as a tow truck driver for the CONTRACTOR shall have access to any G.G.P.D. stored or towed vehicle until such time as that person has received written approval from the Chief of Police or his/her designee.

3.3 Any tow truck driver permit application obtained by the CONTRACTOR or its driver from the Police Department shall be returned to the Police Department accompanied by a State of California Department of Motor Vehicles (“DMV”) printout.

3.4 Tow truck operators shall be proficient in the use of the tow truck they are driving and related equipment, including, but not limited to the procedure necessary for the safe towing and recovery of various types of vehicles. It is the responsibility of the tow service company to ensure, its drivers are trained, qualified and competent employees of the business. The drivers shall complete training and have received a certificate of completion through a recognized tow industry association or company specialized in the training of tow drivers. The training shall be hands on and a minimum of 16 hours for light duty class tow trucks and 24 hours for heavy duty class tow trucks. A copy of the certificate of completion for each tow truck operator providing services pursuant to this Agreement shall be provided by CONTRACTOR to the Police Department prior to commencement of each operator’s employment.

12 3.5 All CONTRACTOR tow truck operators shall possess valid California Tow Truck Driver certificates and Driver’s Licenses in the proper class pursuant to Vehicle Code Sections 13378 and 12804.9(b).

3.6 CONTRACTOR shall provide to the Police Department annually (within 10 days of the anniversary of the Agreement) a list of its tow truck operators, including driver’s license numbers and a DMV printout for each tow truck operator. Any subsequent employment of a new tow truck operator shall be reported in writing to the police department immediately, including submittal of the above- referenced information.

3.7 CONTRACTOR shall notify the Chief of Police or his/her designee in ten (10) days of any change of information on the original application. Failure to notify the Chief of Police in ten (10) days is grounds for revocation of the written approval.

3.8 CONTRACTOR shall provide to the Police Department the name of any tow truck operator no longer employed by CONTRACTOR. This notification shall be given to the Traffic Department no later than ten (10) business days following the last date of such operator’s employment by CONTRACTOR.

3.9 The CONTRACTOR shall have an alcohol and drug program that includes at a minimum, maintaining an alcohol and drug free work environment. Any tow truck operator found working under the influence of alcohol or drugs shall immediately be removed from providing any service to the CITY.

3.10 The CONTRACTOR shall participate in the California Department of Motor Vehicles (DMV) Employer Pull Notice Program.

3.11 The CONTRACTOR’s tow truck operators shall maintain acceptable standards of dress, including uniforms and cleanliness while on duty.

3.12 The CONTRACTOR’s tow truck operators shall cooperate with and abide by the instructions of the police officers in the field.

3.13 Each of CONTRACTOR’s tow truck operators shall obtain from the CITY a clip- on identification tag which such operator shall wear at all times when performing services for the CITY in order to allow ease of tow truck operator identification.

3.14 If any tow truck operator becomes ineligible to provide tow operator services to the CITY, the CONTRACTOR shall immediately notify the Chief of Police or his/her designee of such ineligibility and the reason(s) therefore.

3.15 The CONTRACTOR must have a minimum of three (3) verifiable years for-hire towing experience, as an owner or principal.

13 A. An applicant who does not meet the three (3) verifiable years for-hire towing experience may be considered, if a full-time manager who possesses the required tow management experience is employed by the company. The manager shall have the authority to conduct all company business.

B. If the manager ceases to be employed by the company, the tow Agreement shall be deemed suspended until a new qualified manager is in place. The company will have thirty (30) days to replace the manager to be considered for lifting of the suspension.

C. An owner or operator who releases vehicles, complete lien sales paperwork, and other tow business related documents for three years in the company, with the qualified manager, will fulfill the three years for-hire-towing experience requirement.

4. TOWING SERVICE DUTIES

After being requested to the scene by the Police Department, the CONTRACTOR’s tow truck operator shall comply with all of the following:

4.1 Not move or attach a tow truck to any vehicle until instructed to do so by the investigating officer of the Police Department.

4.2 Cooperate with the investigating officer of the Police Department in removing unsafely and/or illegally parked vehicles from the street, and in the storing or impounding of such vehicles as requested.

4.3 On collision calls, clean up and remove all debris from the accident scene, including but not limited to clean up and removal of all vehicle fluids in the street with absorbent material, as directed by CITY officers and in accordance with Section 27700 of the California Vehicle Code.

4.4 Provide the owner or driver of towed vehicles (when present at scene) with a CONTRACTOR’s business card indicating where the vehicles will be stored or impounded (including address and telephone number).

4.5 Vehicles brought to Police Department or a designated facility from the scene for processing and then towed to the tow yard will incur an additional second tow fee equal to one-half of the regular tow fee. Storage fees will not start until this vehicle is stored at the towing facility.

4.6 CONTRACTOR shall be responsible and held accountable for personal property, vehicle accessories and the vehicle upon receipt of the vehicle from G.G.P.D.

The City of Garden Grove, its officers, agents or employees shall not be liable for loss of or damage to any vehicle, accessory, equipment or personal property towed or stored upon the tow truck driver acknowledging receipt for the vehicle by his/her signature on the stored vehicle report form.

14 4.7 CONTRACTOR shall not dispose of or otherwise relinquish control of any vehicle stored or impounded by G.G.P.D. without a written approval to do so. The written approval is required for any vehicle stored or impounded by G.G.P.D. and the tow truck driver signs a stored vehicle report form and receives a copy of the stored vehicle report. The G.G.P.D. stored automobile release form will be the normal form for release.

4.8 The release of property from a vehicle will be handled in the same manner as a vehicle release. The stored automobile release form will again be used, but a stamp, "property only” will be utilized at the top of the form. The person who authorizes the release of the property will make the modification and will be specific as to description of the property to be released.

4.9 Vehicles shall be released during the business hours of 8:00 am to 5:00 pm, Monday - Friday, “excluding holidays and weekends". There will be, however, occasions arising that can require "after hours releases" of certain vehicles.

When the circumstances appear to justify an "after hour release" of a vehicle, approval of the release must be secured from the on-duty Police Supervisor.

Inoperable vehicles will not be released after hours.

4.10 For purposes of clarity, vehicles towed or stored at the request of citizens, for which no stored vehicle report is utilized, will not require a stored automobile release. Citizens requesting the towing of vehicles under their control shall enter into an agreement with the tow service; G.G.P.D. will act as an avenue of communication between the citizen and the tow service.

4.11 When a party obtains a G.G.P.D. stored vehicle release and presents it to the tow service, the vehicle and/or property shall be released to that person upon verification of identity and the payment of the fees. The registered owner will be required to pay for “property only” releases at the G.G.P.D. records counter.

An after hours fee will be paid to the tow service for "property only" or vehicle releases after the normal business hours of the tow service.

4.12 Once the tow service has received the G.G.P.D. stored automobile release, the tow service is no longer obligated to G.G.P.D. for the continued safe storage of the vehicle and/or property taken.

4.13 If after a "property only" release is obtained, the registered owner may return to the records counter, produce the paid receipt for the "property only" release and request a vehicle impound release paying the difference.

4.14 In the event a vehicle has been stored or impounded by G.G.P.D. due to error or negligence, no charges or fees shall be paid and the vehicle shall be released to the owner or the owner's agent. The City of Garden Grove shall not be liable for any such charges or fees.

4.15 If the error is not discovered before charges or fees are paid to CONTRACTOR for the release of vehicle by owner or owner’s agents. CONTRACTOR shall issue

15 a refund of such charges or fees, if requested within a period of thirteen (13) days after the vehicle is stored.

4.16 If the error is not discovered for a period of thirteen (13) business days after the vehicle is stored and the tow service has initiated lien sale process, as required by C.V.C 22851.8, the tow service shall be entitled to recover actual costs incurred to initiate the lien.

4.17 In the event a tow truck driver has hooked up a vehicle at the direction of G.G.P.D. and the vehicle owner or person in control of the vehicle appears, and the officer decides the vehicle can be released at the scene, then a payment of one-half (1/2) of the tow charge may be charged by CONTRACTOR to and be payable by the vehicle owner or person in control of the vehicle prior to the vehicle being dropped. The G.G.P.D. officer will complete the stored vehicle report noting the release and payment. The officer will then give the tow truck driver the copy as though the tow had been completed. A case number will be assigned to the release of the vehicle; no SVS entry will be made.

4.18 In the case of a vehicle stored or impounded by G.G.P.D. that is of low value and qualifies as a junk vehicle as described within California Vehicle Code Sections 22670 or 22851.10, the tow service may request D.M.V. Form 462, Public Agency Authorization to dispose of a Vehicle to a Scrap Iron Processor or Dismantler, in lieu of obtaining the stored automobile release to process a lien sale for the vehicle. This form will suffice for final disposition of the vehicle and no other release is necessary. Form #462 cannot be issued for (15) fifteen days from the day the vehicle is first stored at the tow facility.

4.19 In addition to the storage yard, the tow service shall maintain a closed building that affords storage of four (4) additional full size vehicles. This enclosure shall be of such size and construction to allow for Forensic Services examination of the cars in a dry environment during inclement weather. Access to this enclosed storage building shall be severely limited by CONTRACTOR, as directed by the investigator assigned to the case for which the vehicle has been impounded.

4.20 CONTRACTOR must advise the Police Department Traffic Division in writing within ten (10) business days, if a person picking up a vehicle, complains to the tow service of damage to the vehicle or any missing vehicle accessories or personal property from the vehicle for which the tow service company denies responsibility.

4.21 All CONTRACTOR’s employees who have acces s to the storage yard or the personal property which is taken out of any vehicle for storage or safe keeping must provide a complete set of finger prints, complete an application and have written authorization from the Garden Grove Police Chief for such access.

4.22 Upon request of (a) the registered owner; (b) the legal owner; (c) the

16 insurance carrier of either (a) or (b) of this section; or (d) the duly authorized agent of any of the foregoing, CONTRACTOR shall furnish an itemized statement upon request and without demanding payment as a condition. The statement shall include the service performed, labor and special equipment used in towing the vehicle.

4.23 A vehicle on a thirty-(30) day hold may be signed over to the tow company by the legal owner prior to the expiration of the thirty (30) days. The legal owner must first obtain a vehicle release from the Police Department. The tow company after receiving the vehicle release from the Police Department must apply for a lien release prior to selling the vehicle.

4.24 CONTRACTOR may, in the exercise of CITY’s discretion, be assigned by the G.G.P.D. to provide service to a portion of the CITY and/or on a rotational basis. The area assigned to the CONTRACTOR will be determined in the sole discretion of the Police Chief. Currently the CITY is divided into two divisions, "East & West.” The division of the CITY is determined by the calls for service within these divisions. In the event a need arises to utilize more tow trucks than one division has, the services of the other division may be used

5. RESPONSE TIME

5.1 The CONTRACTOR shall provide a response time of no more than twenty-five (25) minutes. Response time is the difference between the time the CONTRACTOR is notified and the time the tow truck arrives at the required location. Emergency conditions, as verified by local media or traffic enforcement may be acceptable reasons for not meeting the response time requirement. Equipment or personnel shortage, or lack of availability is not an acceptable reason for failure to meet response times.

5.2 The CONTRACTOR shall give priority to all of the CITY’s requests for service.

5.3 The CONTRACTOR’s dispatcher shall notify the Police Department when a tow vehicle cannot respond immediately, give the reason for the delay, and an estimated time of arrival. In the event of an additional delay, the CONTRACTOR’s dispatcher shall again notify the Police Department and give the new estimated time of arrival. To ensure a timely response, the Police Department, in its sole discretion, may cancel any call-for-service because of a response delay and may request service from another tow service provider.

5.4 If the tow truck unit(s) has/have not arrived at the scene within twenty (25) minutes from the time requested, the Police Department, based on the urgency of the field situation, may request a different towing service to respond to the call, whether the different tow service has a contract with the CITY or not since there may be a situation where a contract tow company is not available and/or does not have the equipment to handle the requested task. It will then be necessary for the Officer to call a tow company not on the CITY’s rotational tow list. This decision is at the discretion of the officer on scene.

17 5.5 In the event CONTRACTOR is unable to respond to calls at the request of the Garden Grove Police Department, it shall be understood that the Police Department has the right to call another towing company on the rotation list.

The original tow service will be placed on the bottom of the rotation list. It is incumbent upon the tow service to advise the police dispatcher of any problems that may arise to adversely affect response time.

5.6 The Police Department, in order to expedite service can request any tow service out of order on the rotation list. The tow service requested will not lose its place on the rotation list.

5.7 If, while rendering assistance in response to a CITY call for towing, a second CITY call for towing is generated to the CONTRACTOR, the CONTRACTOR’s tow truck operator shall, before responding to the second call, ensure that all vehicles at the first site are sufficiently clear of the roadway so that no obstruction to normal traffic exists. Once the second call is handled to conclusion, the vehicles at the first site may be towed as necessary.

6. EQUIPMENT STANDARDS

6.1 All towing equipment, recovery equipment, and carrier ratings are based on structural factors only. Actual towing, carrying, and recovery capacity can be limited by the capacity of the chassis and the optional equipment selected. The criteria to determine the safe towing limits are:

(1) The total weight of the truck, including the lifted load, must fall within the Manufacturer's Gross Vehicle Weight Rating (GVWR) and not exceed either the Front or Rear Axle Ratings (FAWR, RAWR).

(2) The truck must meet all applicable State and/or Federal standards.

(3) A tow driver when towing a vehicle shall not exceed the GVWR and the Axle Weight Rating (AWR) for the tow truck.

(4) CONTRACTOR must have a qualified driver for each piece of equipment owned and listed in their proposal.

6.2 The CONTRACTOR shall own or have leased to it at least four (4) tow trucks that will be based at its CITY-approved storage facilities and which trucks shall be available to perform towing services at all times during the term of this Agreement. Two trucks shall have a minimum GVWR of 19,000 lbs. The CONTRACTOR shall not use a tow truck with a class rating of less than one ton.

6.3 The CONTRACTOR shall have at least three (3) conventional slings or wheel lift type trucks, one (1) rollback car carrier, one (1) 16 ton 35GVW medium duty truck, and one (1) 50 ton 80 GVW heavy duty truck throughout the term of

18 the contract.

6.4 The CONTRACTOR’s vehicle s shall be equipped as tow trucks in compliance with the provisions of the California Vehicle Code including, but not limited to, Sections 615, 24605, 25100, 27700, and 27907. Tow trucks shall be equipped with red flares, lanterns or reflectors, hand tools (required to remove a drive shaft if necessary) crow-bar, rope, broom, shovel, dustpan, absorbent material for clean-up of hazardous materials, fire extinguisher, portable red tail lights and stop lights for towed vehicles, equipment for opening locked vehicles, go jacks and safety chains.

6.5 All CONTRACTOR’s vehicles shall have available adequate equipment to handle large trucks, trailers, tractors and other heavy vehicle equipment. This includes a set of dollies capable of supporting any passenger vehicle.

Notwithstanding the foregoing in Section 6.5, if the CONTRACTOR does not have the necessary equipment to handle large trucks, trailers, tractors or other heavy vehicle equipment, the CONTRACTOR may decline to provide the requested service.

6.6 The CONTRACTOR’s vehicles shall have a cable winch of sufficient size and capacity to retrieve vehicles that have gone over embankments or off traveled portions of roadways into remote areas or other difficult locations.

6.7 Motorcycles that are stored, impounded, or towed from a collision scene at the request of the Police Department shall be hauled by a trailer that is designed to carry motorcycles, or by a flatbed truck.

6.8 Any equipment used and maintained by the CONTRACTOR shall be available for inspection by the Police Department upon request. The CONTRACTOR vehicles shall be subject to random inspection by the CITY.

6.9 The CONTRACTOR shall be equipped for and have personnel proficient in, unlocking locked vehicles. The CONTRACTOR shall unlock locked vehicles when requested to do so by the Police Department.

6.10 Throughout the term of the contract, the CONTRACTOR shall maintain in a neat and clean manner and in good working condition its storage facilities and improvements thereon, all vehicles, facilities, equipment, and materials used by the CONTRACTOR in the performance of the work. Any additions to or deletions from the CONTRACTOR’s tow truck fleet shall be reported immediately, in writing, to the Chief of Police or his/her designee.

6.11 CONTRACTOR shall maintain four (4) operational tow trucks. If, for any reason, CONTRACTOR has only three (3) operational tow trucks, CONTRACTOR shall be allowed thirty (30) days including holidays and weekends to have four (4) operational tow trucks. If the CONTRACTOR has two (2) or less tow trucks operational, it will be removed from the rotational list, until it has three (3) tow trucks operational. The CONTRACTOR will then be allowed up to an

19 additional fifteen (15) days, including holidays and weekends, to get another tow truck operational, for a total of four (4) operational tow trucks. Failure to comply shall be a breach of the contract. Repeated instances of less than four (4) operational tow trucks shall constitute grounds for termination of the tow services agreement.

7. COMMUNICATIONS EQUIPMENT

7.1 The CONTRACTOR during the term of the contract shall maintain, and have approved by the City, a continuous means of communication between the Contractor’s dispatcher and each CONTRACTOR tow vehicle. The CONTRACTOR shall also maintain and staff, on a 24-hour basis, a telephone to receive calls from the police department and members of the public.

7.2 Use of Citizen’s Band Class D radio equipment by the CONTRACTOR is prohibited.

7.3 Telephone service maintained by CONTRACTOR shall be adequate to receive police calls without delay. The telephone terminals shall be monitored at all times. Recording machines or similar devices are not allowed. If a call from G.G.P.D. is not answered within six (6) rings or the line is busy after two attempts, or placed on hold for more than a minute, the call will be terminated, the CONTRACTOR will be placed on the bottom of the rotation list and the tow service next in line will be called.

7.4 The CONTRACTOR shall provide a list of telephone numbers to be called in order of priority. Changes to contact list shall be provided immediately in writing to the Chief of Police or his/her designee along with the effective date of the change(s)

8. HOURS

8.1 The CONTRACTOR shall provide twenty-four (24) hour towing service, seven (7) days a week.

8.2 The CONTRACTOR shall ensure that there will be an employee on call twenty- four (24) hours a day, seven (7) days a week and capable of being present or available for releasing impounded or stored vehicles to the public in accordance with Section 4.9 of this Agreement. CONTRACTOR’s response time for such releases shall be no longer than one (1) hour.

9. VEHICLE IDENTIFICATION

9.1 Each CONTRACTOR vehicle shall display identification signs in compliance with Section 27907 of the California Vehicle Code. The CONTRACTOR shall not display any signs or advertising that indicates that the CONTRACTOR is an official towing service or police garage of the CITY.

20 9.2 The CONTRACTOR shall not, through its advertisements or otherwise, in any way publicize any official or other business connection with the CITY, nor shall the CONTRACTOR advertise any address or telephone number of the CITY as a location or place to call for vehicle towing and storage service.

10. STORAGE SERVICE RESPONSIBILITIES

10.1 The CONTRACTOR shall be responsible for all vehicles, accessories and equipment thereon, and all personal property therein, stored by CONTRACTOR.

It shall be the Contractor’s duty to protect such stored vehicles, accessories, equipment, and property against all loss, damage by fire, theft, or other causes.

10.2 The CONTRACTOR shall be responsible for the negligent acts and omissions of its employees and for any property damage caused by CONTRACTOR or its employees to any vehicle under their control.

11. STORAGE FACILITY STANDARDS

The CONTRACTOR shall make adequate provisions for the security of vehicles and property at its storage facilities, which shall at a minimum consist of all of the following:

11.1 All vehicles shall be stored in a building, or in an area or areas enclosed by a substantial wall or fence. The storage yard shall be enclosed with a concrete block wall or chain-link type fence of a height of not less than six (6) feet. The top of the fence shall be equipped with two (2) or more strands of barbed wire installed in such a manner as to discourage access by climbing the fence.

Concertina type razor wire may be substituted for barbed wire, subject to G.G.P.D. approval.

11.2 The bottom edge of the fence shall not rise more than two (2) inches above the finished surface of the parking area of the storage yard. A secure locking system shall be a part of the gate and it shall otherwise meet the same standards for security as described for the fence.

11.3 All storage facilities shall be paved and maintained in good working order and secured at all times. Any damage affecting security of vehicles, lighting and/or evidence shall be repaired within twenty-four (24) hours of the damage.

11.4 The minimum total capacity of the CONTRACTOR’s storage facilities for storage shall be spaces for seventy-five (75) vehicles.

11.5 All storage facilities must be approved for security by the Chief of Police, or his/her designee, and available for inspection by the Police Department at all times upon request of the Chief of Police or his/her designee.

11.6 In the event of theft from the vehicles stored in the yard, the CONTRACTOR

21 must take additional measures satisfactory to the G.G.P.D. to protect the vehicles and property in the vehicles.

11.7 Registered or legal owners, having obtained a vehicle release from the Garden Grove Police Department, shall be allowed to inspect their vehicle without having to pay the storage fees first.

11.8 The CONTRACTOR shall not perform any work upon any vehicle without first obtaining written permission from the owner of the vehicle. Notwithstanding the foregoing, all work on impounded vehicles shall be handled pursuant to Section 12 below.

11.9 If the CONTRACTOR videotapes or otherwise records images of the storage facility, such videotapes and photographs shall be maintained by the CONTRACTOR for at least ninety-(90) days.

12. IMPOUNDED VEHICLES & INSIDE STORAGE

12.1 Vehicles that have been impounded by order of the police department shall not be released, lien sold, worked on, altered, or tampered with, without a written release from the Police Department.

12.2 The CONTRACTOR shall maintain, without charge to the CITY, separate, fully enclosed, and secure garage storage facilities for a minimum of four (4) vehicles ordered impounded by the Police Department.

12.3 The Police Department shall have sole access to such separate impound facilities when vehicles are being held for evidence.

12.4 The Police Department shall designate when a vehicle is to be placed into inside impound storage. Vehicles placed into this impound space shall not be removed from such protection until approved and authorized in writing by the investigating officer of the Police Department.

12.5 The CONTRACTOR shall notify the Police Department of any vehicles being impounded within the CITY pursuant to private party impound requests immediately prior to commencement of the towing of such vehicles.

13. RELEASE OF VEHICLES

13.1 The CONTRACTOR is responsible for the release of all vehicles stored by the Police Department, including impounded vehicles. The CONTRACTOR is hereby granted authority to release to the registered owner, legal owner, or authorized representative, all vehicles that the tow company did not receive a stored vehicle report, (Form 180), from the Officer or CITY employee at the scene.

22 13.2 After obtaining a release from the Garden Grove Police Department, registered or legal owners or an agent of the owner requesting to inspect their vehicles or remove property from their vehicles shall be allowed to do so without having to pay the storage fees first. Such inspections and property removals shall be available only during the CONTRACTOR’s regular business hours.

14. RECORDS

14.1 The CONTRACTOR shall log, maintain, complete and accurate business records of the tow service including: a description of the vehicle, nature of service, time, location, tow truck driver handling the call and an itemized total charge.

These records shall be available for inspection by G.G.P.D., with or without cause, with 24 hours’ notice, during normal business hours. These records shall be kept for a minimum period of three (3) years.

14.2 Record systems must provide for immediate access, upon inquiry by the Chief of Police or his/her designee, to the following information:

14.2.1 Locate vehicle from the Police Department’s report number.

14.2.2 Locate vehicle from license number only.

14.2.3 Locate vehicle from make, color, date and location of impound.

14.2.4. Date of filing of all lien sale documents with DMV.

14.3 The CONTRACTOR shall submit a report, by the 10 th day of each month, to the Police Department, which shall include all of the following information for the preceding month:

14.3.1 Total CITY impounds and storages.

14.3.2 Number of times dispatched by the Police Department.

14.3.3 Number of calls for service resulting in impounds.

14.3.4 Number of calls for services that resulted in having to spend more than one hour on the call.

15. LIENS AND DISPOSALS

15.1 On or before the 10 th of each month, the CONTRACTOR shall furnish to the Police Department, a list of all vehicles that have been sold at lien sale during the previous month, and date of the action. This list shall include the vehicle owner’s name, address, vehicle make, vehicle model, vehicle year, license number, VIN number, and Police Department record number. Copies of all lien sale documents shall be submitted with each list. The document shall be dated and is to include all charges imposed on each sale.

23 15.2 Prior to a lien sale of any vehicle, CONTRACTOR shall confirm with CITY the amount of any outstanding amounts due with respect to parking citations pertaining to the vehicle and shall cooperate with CITY to recover, the extent feasible, all such outstanding amounts due. Notwithstanding the lien priority established pursuant to subdivision (b) of Vehicle Code Section 22851.1, for all lien sold vehicles that were impounded and not released under, or in connection with, subdivision (i) of Vehicle Code Section 22651, CONTRACTOR shall, within thirty (30) days of the lien sale, remit to CITY the lesser of (i) the total outstanding amount due CITY, or (ii) fifty percent (50%) of the total lien sale price received by CONTRACTOR. For all lien sold vehicles with respect to which outstanding amounts are owed CITY for parking violations, but with respect to which CITY does not have a lien pursuant to Vehicle Code Sections 22651(i) or 22851.1, CONTRACTOR shall, within thirty (30) days of the lien sale, remit to CITY the lesser of (i) the total outstanding amount due CITY, or (ii) fifty percent (50%) of the total lien sale price otherwise due to CONTRACTOR in satisfaction of its lien pursuant to Vehicle Code Section 22851(a). CONTRACTOR shall be responsible for filing of all necessary paperwork related to the lien sale and satisfaction of outstanding amounts owed CITY with respect to parking citations.

15.3 The CONTRACTOR shall comply with all State law requirements for the disposal of unclaimed vehicles.

16. INSPECTION

16.1 A CHP (California Highway Patrol) inspection of the company’s towing equipment, facility or facilities is required.

16.2 In addition to the CHP inspection report, the CONTRACTOR's towing equipment, facility or facilities may be inspected at least two (2) times per year (annually) with 24 hours notice, during normal business hours by the Police Department Traffic Division, and a report filed thereon. The Garden Grove Police Department shall be authorized to perform field inspections of CONTRACTOR’s equipment at any time without notice.

16.3 The City Building Division and the Fire Department, on request of the Chief of Police, may inspect the premises proposed to be devoted to public automobile storage and make recommendations to the Chief of Police or his/her designee.

16.4 CONTRACTOR’s towing equipment, facility or facilities may be inspected with or without cause, with 24 hours’ notice, during normal business hours by the Police Department Traffic Division, and a report filed thereon. The Police Department may rely on inspections conducted by the CHP.

16.5 If any deficiencies or equipment violations are discovered during any Police Department or CHP inspection, the CONTRACTOR will be so advised in writing.

The CONTRACTOR will be given ten (10) business days, to rectify the deficiency or violation. Failure to comply will constitute a breach of this agreement.

24 16.6 If in the opinion of the Police Department Traffic Division, the deficiencies or equipment violations which are discovered during any Police Department or CHP inspection prevent a vehicle from being operated in a safe manner, the vehicle will be taken out of service. Failure to comply may result in the CONTRACTOR being removed from the call list.

17. MOTORISTS ASSISTANCE

17.1 Whenever a motorist requests tow assistance from the Police Department and does not specify a particular tow company or membership agency, the service shall, in the sole discretion of the Police Department, be assigned to either the CONTRACTOR or another tow service company awarded a contract for tow service by the CITY. All charges arising out of such assistance assigned to the CONTRACTOR shall be the exclusive responsibility of the CONTRACTOR and the requesting motorist. The CITY shall not be liable for any charges whatsoever arising out of a motorist assistance call. The CONTRACTOR shall not charge such motorist more than the rates specified in the contract.

18. ASSUMPTION OF RISK

18.1 The CONTRACTOR assumes all risk in the event of damage, theft, fire or otherwise, of the vehicles or any other property towed, impounded, or stored by the CONTRACTOR, its employees or agents.

18.2 Notwithstanding any other term or condition herein, in responding to any call from the police department, the CONTRACTOR shall have no claim whatsoever against the CITY or any right to recover from the CITY for the cost of any of the services it renders in the performance of the contract. The CONTRACTOR shall look solely and exclusively to the owner of the vehicle towed, impounded, or stored for payment of the services provided by the CONTRACTOR.

18.3 The CONTRACTOR shall assume the entire risk of nonpayment of any service charges incurred pursuant to the Agreement.

19. DRY RUNS

19.1 The CITY shall not be liable to pay to the CONTRACTOR any charge whatsoever or fee for a call that does not result in a chargeable service being rendered by the CONTRACTOR (i.e., a "dry run").

19.2 In the event the police department errs in impounding or storing vehicle(s), the CONTRACTOR shall cause the release of vehicles upon the direction of the police department without charge for towing or storage.

20. CITY VEHICLE TOWING

20.1 The CONTRACTOR shall provide, without cost to the CITY , towing of all CITY owned vehicles as requested by the CITY.

25 21. ADDITIONAL RESOURCES

21.1 It shall be the responsibility of the CONTRACTOR to provide equipment and to perform the duties as required by the Police Department. The CONTRACTOR is hereby granted authority to utilize additional resources whenever deemed necessary to perform tow service duties. This may include, but is not limited to, personnel and/or equipment of another tow operator whose employees have approval as provided for in the contract. This, however, shall not relieve the CONTRACTOR of its duties and responsibilities, and any additional cost incurred as a result of utilizing additional resources shall not be charged to the CITY.

22. ABANDONED VEHICLES

22.1 Vehicles, or parts thereof, which are disposed of through Abandoned Vehicle Abatement Program by delivery to an authorized automobile dismantler, pursuant to Section 22660 of the California Vehicle Code are excluded from the contract. No charge shall be assessed against the CITY or the owner of any vehicle that is towed, stored, or dismantled under the provisions of the Abandoned Vehicle Abatement Program.

23. CONTRACTOR’S CONDUCT

It shall be grounds for termination of the contract, if CONTRACTOR, or any of its agents or employees or any person(s) connected or associated with the CONTRACTOR as an operator, director, officer, stockholder, general manager, or person who is exercising managerial authority of or on behalf of the CONTRACTOR has committed any one of the following acts:

23.1 Has been convicted of a felony or any crime involving theft, embezzlement, stolen property, fraud or crimes of violence within the last ten (10) years or is so convicted during the term of the Agreement.

23.2 Has published, uttered or disseminated any false, deceptive or misleading statements or advertisement in connection with the operation of the towing service.

23.3 Has conducted the towing service in a manner contrary to the peace, health, safety, and general welfare of the public.

23.4 Has violated or permitted other persons to violate, through an act of omission or commission by the CONTRACTOR, any felony or misdemeanor crime involving sexual offenses or moral turpitude, or a felony involving sale or use of a controlled substance, or any act of dishonesty, fraud, within the last ten (10) years.

23.5 Had an inspection or investigation by the City Building Division, Police Department, or Fire Department, which revealed a deficiency, violation, or

26 conduct that endangers the peace, health, safety and general welfare of the public.

23.6 Employs tow truck drivers under 18 years of age.

23.7 Fails to notify the Garden Grove Police Department Traffic Division in writing of any names, addresses, driver's license number of any newly employed tow truck driver within ten (10) business days of their hire date, or fails to notify the Garden Grove Police Department Traffic Division within ten (10) business days of any tow truck driver who is no longer employed by CONTRACTOR.

23.8 Has charged fees in excess of the schedule rates approved by the Police Department for rotational tow services or in excess of any Federal, State, County or City laws or regulations for towing and/or storage of vehicles or any service incidental to towing.

23.9 Has allowed the services of a tow service driver with a record of violations of the Vehicle Code which has resulted in the suspension or revocation of their driver's license or a second (2nd) driving under the Influence or reckless driving conviction within the three (3) years preceding the most recent violation, to remain in CONTRACTOR’s employment as a driver providing service to the CITY.

23.10 Fails to comply with any California Vehicle Code, Federal, State, or County regulations and laws relating to towing and/or storing of vehicles, including the impounding and storing of vehicles from private property.

23.11 Fails to maintain control of any personal property, vehicle accessories and vehicles, which have been towed.

23.12 Fails to reimburse the legal or registered owner for damage or loss that occurs while the vehicle was in the CONTRACTOR’s custody.

23.13 Having allowed an unauthorized person access to the storage yard or facilities.

23.14 Any other grounds as outlined in the Agreement between the CITY and the CONTRACTOR.

23.15 Has knowingly made false, misleading or fraudulent statements of a material fact in a report or record required to be filed with the Garden Grove Police Department.

23.16 Has stopped and solicited on any street, highway or other public thoroughfare the rendering of assistance to a person or disabled vehicle without first being requested to do so, except to render emergency aid when there exists an imminent peril to life or property.

27 23.17 Has charged for services not performed, equipment not employed or used, service or equipment not needed, or has otherwise materially misstated the nature of any service performed or equipment used.

23.18 Has been denied consideration for placement on another police department tow list or suspended from another police department tow list, within five (5) years of applying to provide tow services to the City of Garden Grove, or during the term of the CONTRACTOR’s agreement with CITY.

23.19 Obtaining a tow contract from the CITY by use of fraud, trick, dishonesty, or forgery.

23.20 Towing a vehicle to a location other than approved by the Police Department as an authorized storage facility without first receiving prior authorization to do so by the Police Department.

23.21 After towing a vehicle to the CONTRACTOR’s storage facilities, towing th e vehicle to another location for storage or impound without authorization from the Police Department.

23.22 Defrauding or conspiring to defraud any owner of any vehicle, any insurance company, or any other person financially interested in the towing, storage, or impound of any vehicle.

23.23 Moving, tampering with, or removing a vehicle involved in a traffic collision prior to the arrival of law enforcement officers at the scene.

23.24 The Police Department receives four (4) or more complaints against the CONTRACTOR during any twelve (12) month period that the Police Department, in its reasonable discretion, determines to be justified, regarding the service, or lack thereof, provided by the CONTRACTOR.

23.26 Failing to comply with any provision of the contract between the CONTRACTOR and CITY.

23.27 Repeated or flagrant violations of the provisions of the California Vehicle Code.

23.28 Demonstrating a pattern or practice of failing to answer calls-for-service, respond promptly to calls, and/or to maintain clean, orderly, and secured storage facilities.

23.29 Failing to obtain and maintain a current valid CITY business license.

23.30 Commission of any unlawful, false, fraudulent, deceptive, or dangerous act while conducting its towing operation business.

23.31 Allowing the insurance coverage required herein to be withdrawn, lapse or otherwise to no longer being in force for any reason.

28 23.32 Dissolution of business or bankruptcy.

23.33 Assignment of the Agreement, or any right or interest stated herein, without the prior written consent of Chief of Police of his/her designee.

23.34 Any recurring deviation from the Police Department approved charges as specified herein.

23.35 Has committed any act constituting dishonesty or fraud.

23.36 Has a conviction or a plea of nolo contendere or guilty to a misdemeanor or felony crime involving sexual offenses, theft, embezzlement, stolen property, fraud, crimes of violence or moral turpitude, or a felony involving sales or use of a controlled substance within the last ten years or during the term of the Agreement between the CONTRACTOR and CITY.

23.37 Has published, uttered or disseminated any false, deceptive or misleading statements against the Police Department, the City of Garden Grove or its employees.

23.38 Has sold or transferred ownership of CONTRACTOR without prior written approval of the Chief of Police and/or in violation of Garden Grove Municipal Code Sections 5.52.160 through 5.52.180. Upon any change in CONTRACTOR’s ownership, CITY reserves the right to re- evaluate the new company/owners per the terms of this RFP and may terminate the Agreement at the sole discretion of the CITY. CONTRACTOR shall not be entitled to terminate the Agreement solely as a result of a change in ownership of CONTRACTOR.

24. FEES/CHARGES

24.1 CONTRACTOR shall charge rates for all service, including an after hour’s release fee, as established by the Chief of Police or his/her designee. The rates for citizen assist calls for services such as service calls or disabled vehicle tows will be established by the Police Department as commercial rates for CONTRACTOR. The Chief of Police or his/her designee prior to the increase will authorize any and all rate increases.

24.2 All rates and charges shall be conspicuously posted in the CONTRACTO R’s office and in all tow vehicles, and shall be available for review by Police Department and/or persons for whom tow service is provided. All customer bills shall be itemized. It shall be the CONTRACTOR’s responsibility to collect payment for services it renders under the Agreement from the vehicle owners, and the CITY shall not be responsible in any way whatsoever for payment of these charges.

24.3 Routine clean- up such as sweep up, fluid clean-up and debris removal shall be include in the basic tow charge. However, when clean-up is determined to be excessive (by mutual agreement of the CONTRACTOR and the CITY), the rate

29 shall be the labor rate referenced in CONTRACTOR’S proposal (quoted for “labor”).

24.4 The CONTRACTOR, as prescribed within California Vehicle Code Section 22651.1, shall accept a valid bankcard, credit card or cash for payment of towing and storage by the registered owner, legal owner, or agent of the owner claiming the vehicle.

24.5 Following the completion of the initial three (3) year contract period, the Chief of Police or his/her designee may reevaluate the charges and rates set to ensure that the current rates and charges are reasonable.

24.6 Fees for Lien Sale Vehicle Release: A Request Release for Lien Sale-form #439 is required prior to the lien release of any vehicle that has been stored or impounded by the Police Department. The use of this system provides a way to monitor vehicles used or involved in major crimes that may be evidence of the crime, and to prevent their release. An administrative fee of $12.00 per request release for lien sale form has been established to defray the costs of printing, filing, verifying if the vehicle is needed as evidence, and the postage or delivery of the forms to the CONTRACTOR. The fee will begin upon the inception of this agreement. A check for the accumulative total of request release for lien sale forms will accompany each package submitted.

25. ACTS OR OMISSIONS OF REPRESENTATIVES

25.1 It is understood and agreed by the parties that the acts and/or omissions of the owner(s), officers, operators, officials, employees, agents and representatives of the CONTRACTOR in the performance of the services and obligations under this agreement shall constitute the acts and/or omissions of the CONTRACTOR and not of the CITY.

26. ENVIRONMENTAL REGULATIONS

26.1 It is understood and agreed by the CONTRACTOR that all state and federal regulations regarding the clean up and disposal of hazardous materials at the site of all accidents, including those involving CITY owned vehicles, are the responsibility of the CONTRACTOR.

26.2 CONTRACTOR is responsible for maintaining all required records and receipts in the event that these documents are requested for proof of compliance. See guidance documents in APPENDIX C, wh ich do not limit the CONTRACTOR’s responsibility for all state and federal regulations regarding hazardous material clean up and disposal.

30 27. APPLICATION FEES

27.1 The CONTRACTOR shall be subject to the following fees intended to defray the CITY’s costs of processing the Contract:

Tow Application Fee $450.00
(must be included with proposal at the time of submittal)

D.O.J background check $32.00 (made payable to D.O.J

Annual Inspection Fee $250.00

Re-Inspection Fee rate of top step police officer

Tow Driver Permit $81.00

Tow Driver Permit Renewal $40.00

Live scan forms can be obtained at the Police Department. An appointment must be made with the front desk and please bring payment in the form of cash or check, payable to the City of Garden Grove, at the time of your appointment. The total cost is $81.00 (D.O.J.-$32.00, FBI-$17.00, and Police Department $25.00).

31 RFP NO. S-1309
ATTACHMENT “B”

AUTHORIZED TOWING AND STORAGE FEE SCHEDULE

SERVICE FEE
CLASS A $225.00
CLASS B OR FLATBED $260.00
CLASS C $375.00
CLASS D $405.00
Dolly, Go-Jacks or Linkage Fee $80.00
Rollover or Winching Fee $160.00
Clean-Up Fee (fee to City capped at $35.00 per occurrence) $90.00 Hazmat Fee (per five (5) gallon bucket) $140.00

Vehicle Storage Fees (Daily)
Class A-Outside $75.00
Class A-Inside $80.00
Class B-Outside $80.00
Class B-Inside $85.00
Class C or Class D-Outside $85.00
Class C or Class D-Inside $90.00

After Hours Release
50% of the
authorized towing
charge
Minimum Service Call or Drop Fee
50% of the
authorized towing
charge
Lien Sale
As authorized by
the California Civil
and Vehicle Codes
Mileage (per mile outside the corporate city limits) $12.00

GARDEN GROVE
1 Contract for Police Rotational Towing and Storage Services

THIS AGREEMENT is made this day of , 2023, by the CITY OF GARDEN GROVE, a municipal corporation, ("CITY") and Cylinder Enterprises Inc., dba Finish Line Towing and Transport, hereinafter referred to as “CONTRACTOR”.

RECITALS

The following recitals are a substantive part of this Agreement:

1. This Agreement is entered into pursuant to Garden Grove CITY COUNCIL AUTHORIZATION, DATED _____________________.

2. CITY desires to utilize the services of CONTRACTOR to Provide Police Rotational Towing and Storage Services for the City Of Garden Grove On An On-Call Basis.

3. CONTRACTOR is qualified by virtue of experience, training, education and expertise to provide such services.

AGREEMENT

THE PARTIES MUTUALLY AGREE AS FOLLOWS:

1. Term . The term of the agreement shall be for a period of three (3) fiscal years from full execution of this agreement, with the option to extend the agreement for two (2) additional fiscal years, for a total performance period of five (5) fiscal years. Option years shall be exercised one (1) year at a time at the sole option of the CITY. All service shall be provided in accordance with the Scope of Work, Attachment, “A” which is incorporated herein by reference.

2. Services to be Provided. The services to be performed by CONTRACTOR shall consist of tasks as set forth in the Proposal and Scope of Work. The Proposal is incorporated herein by reference. The Proposal, Scope of Work, and this Agreement do not guarantee any specific amount of work.

3. Compensation. CONTRACTOR shall be compensated as follows: CONTRACTOR may charge vehicle owners the amount(s) not to exceed those charges approved by the City pursuant to the SCOPE OF WORK, attached herein as Attachment “A” and the AUTHORIZED TOWING AND STORAGE FEE SCHEDULE, attached herein as Attachment “B”, which are incorporated herein by this reference.

4. Insurance Requirements .

4.1 COMMENCEMENT OF WORK. CONTRACTOR shall not commence work under this Agreement until all certificates and endorsements have been

2 received and approved by the CITY. All insurance required by this Agreement shall contain a Statement of Obligation on the part of the carrier to notify the CITY of any material change, cancellation, or termination at least thirty (30) days in advance, an d a waiver of subrogation, for all policies, waiving subrogation against the City, its officers, officials, agents, employees, and volunteers . All insurance required by this contract shall remain in full force and effect for the duration of this agreement.

4.2 WORKERS COMPENSATION INSURANCE. For the duration of this Agreement, CONTRACTOR and all subcontractors shall maintain Workers Compensation Insurance in the amount and type required by California law, if applicable. The insurer shall waive its rights of subrogation against the CITY, its officers, officials, agents, employees, and volunteers.

4.3 INSURANCE AMOUNTS. CONTRACTOR shall maintain in full force and effect the following insurance for the duration of this Agreement:

(a) Commercial general liability in an amount not less than $5,000,000 per occurrence; (claims made and modified
occurrence policies are not acceptable); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY.

(b) Automobile liability in an amount not less than $5,000,000 combined single limit; (claims made and modified occurrence policies are not acceptable); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A -, Class VII or better, as approved by the CITY.

(c) On-Hook liability in an amount not less than $200,000 per occurrence; (claims made and modified occurrence policies are not acceptable); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A -, Class VII or better, as approved by the CITY.

(d) Garage keepers legal liability, including Garage keepers extra legal liability/ Garage keepers direct in an amount not less than $1,000,000 per occurrence; (claims made and modified
occurrence policies are not acceptable); Insurance companies must be acceptable to CITY and have an AM Best’s Guide Rating of A-, Class VII or better, as approved by the CITY.

(e) Excess liability coverage, following form to the underlying policies, shall be provided for any underlying policy that does not meet the insurance requirements set forth herein (claims made and modified occurrence policies are not acceptable.) Insurance companies must be acceptable to

3 CITY and have a Best’s Guide Rating of A-Class VII or better, as approved by the CITY.

An Additional Insured Endorsement, ongoing and completed operations, for the policy under section 4.3 (a) Commercial general liability, shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.

An Additional Insured Endorsement for the policy under section 4.3 (b), Automobile liability, shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for automobiles owned, leased, hired, or borrowed by the CONTRACTOR.

CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.

An Additional Insured Endorsement for the policy under section 4.3 (c), On-hook liability, shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR.

CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.

An Additional Insured Endorsement, for the policy under section 4.3 (d), Garage Keepers liability, including Garage keepers extra legal liability/Garage keepers direct, shall designate CITY, its officers, officials, employees, agents, and volunteers as additional insureds for liability arising out of work or operations performed by or on behalf of the CONTRACTOR, and storage of vehicles. CONTRACTOR shall provide to CITY proof of insurance and endorsement forms that conform to CITY’s requirements, as approved by the CITY.

In the event any of CONTRACTOR’S underlying policies do not meet policy limits within the insurance requirements, CONTRACTOR shall provide, under section 4.3(e) Excess liability, the schedule of underlying polices for a follows form excess liability policy, state that the excess policy follows form on the insurance certificate, and an additional insured endorsement for the follows form excess liability policy designating CITY, its officers, officials, employees, agents, and volunteers as additional insureds.

For any claims related to this Agreement, CONTRACTOR’s insuran ce coverage shall be primary insurance as respects CITY, its officers, officials, employees, agents, and volunteers. Any insurance or self- insurance maintained by the CITY, its officers, officials, employees,

4 agents, or volunteers shall by excess of the C ONTRACTOR’s insurance and shall not contribute with it.

4.4 If the CONTRACTOR does not keep all of such insurance policies in full force and effect at all times during the term of this Agreement, the CITY may elect to treat the failure to maintain the requisite insurance as a breach of this Agreement and terminate the Agreement as provided herein.

4.5 If the CITY reasonably determines that the amounts of insurance held by the CONTRACTOR pursuant to this Agreement are no longer sufficient, or that additional types of coverage are needed, the CONTRACTOR shall modify the existing coverage or obtain additional policies, as the CITY shall reasonably determine. All new policies shall be on the terms and conditions contained herein.

4.6 The CONTRACTOR shall annually within ten (10) days of the anniversary of the effective date of this Agreement and at any other time requested by CITY, provide to the CITY evidence that all insurance required pursuant to this Agreement continues to be in full force and effect.

4.7 If CONTRACTOR maintains higher insurance limits than the minimums shown above, CONTRACTOR shall provide coverage for the higher insurance limits otherwise maintained by the CONTRACTOR.

5. Non-Liability of Officials and Employees of the City. No official or employee of CITY shall be personally liable to CONTRACTOR in the event of any default or breach by CITY, or for any amount which may become due to CONTRACTOR.

6. Non-Discrimination. CONTRACTOR covenants there shall be no discrimination against any person or group due to race, color, creed, religion, sex, marital status, age, handicap, national origin, or ancestry, in any activity pursuant to this Agreement.

7. Independent Contractor . It is agreed to that CONTRACTOR shall act and be an independent contractor and not an agent or employee of the CITY, and shall obtain no rights to any benefits which accrue to CITY'S employees.

8. Compliance with Law. In performing services pursuant to this Agreement, CONTRACTOR shall at all times comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government, including the provisions of Chapter 5.52 of the Garden Grove Municipal Code, as such chapter may periodically be amended.

5 9. Notices. All notices shall be personally delivered or mailed to the below listed address, or to such other addresses as may be designated by written notice.

These addresses shall be used for delivery of service of process.

IF TO CONTRACTOR: Cylinder Enterprises Inc., dba Finish Line Towing and Transport
Attention: Leanna Tornow, President
7511 Chapman Avenue
Garden Grove, CA 92841

IF TO CITY: City Manager
City of Garden Grove
11222 Acacia Parkway
Garden Grove, CA 92840

WITH COPY TO: Garden Grove City Attorney
11222 Acacia Parkway
Garden Grove, CA 92840

10. Contract Documents. This Agreement shall include the requirements of Chapter 5.52 of the Garden Grove Municipal Code, as such chapter may periodically be amended, the Scope of Work, the CITY’s Request for Proposals and the CONTRACTOR'S proposal which are each incorporated herein by reference. In the event of any inconsistency among these documents, the terms of this Agreement, Chapter 5.52 of the Garden Grove Municipal Code, the Scope of Work, the CITY’s Request for Proposals and lastly the CONTRACTOR’s Proposal shall, in that order, govern.

11. Licenses, Permits, and Fees. At its sole expense, CONTRACTOR shall obtain a Garden Grove Business License, all permits, and licenses as may be required by this Agreement or otherwise to perform the work. CONTRACTOR shall maintain in effect throughout the term of this Agreement all licenses and permits required to perform the services required by this Agreement.

12. Familiarity with Work. By executing this Agreement, CONTRACTOR warrants that: (1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the facilities, difficulties, and restrictions of the work under this Agreement.

Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY of this and shall not proceed, except at CONTRACTOR'S risk, until written instructions are received from CITY.

13. Time of Essence. Time is of the essence in the performance of this Agreement.

14. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability, and reputation of CONTRACTOR, its principals and employees are a substantial inducement for CITY to enter into this Agreement.

CONTRACTOR shall not contract with any other entity to perform the services

6 required without written approval of the CITY. This Agreement may not be assigned voluntarily or by operation of law, without the prior written approval of CITY. If CONTRACTOR is permitted to subcontract any part of this Agreement, CONTRACTOR shall be responsible to CITY for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationship between any subcontractor and CITY. All persons engaged in the work will be considered employees of CONTRACTOR. CITY will deal directly with and will make all payments to CONTRACTOR.

15. Authority to Execute. The persons executing this Agreement on behalf of the parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the parties are formally bound.

16. Indemnification. CONTRACTOR agrees to protect, defend, and hold harmless CITY and its elective or appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including but not limited to, for injury or death of any person, or damage to property, or interference with use of property, arising out of, or in any way connected with performance of the Agreement by CONTRACTOR, CONTRACTOR'S agents, officers, employees, subcontractors, or independent contractors hired by CONTRACTOR. This obligation shall also include payment of reasonable attorney fees and other litigation costs incurred by CITY. The only exception to CONTRACTOR'S responsibility to protect, defend, and hold harmless CITY, shall be due to the sole negligence or intentional wrongful conduct of CITY, or any of its elective or appointive boards, officers, agents, or employees.

This hold harmless agreement shall apply to all liability regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by CONTRACTOR.

17. Termination.

17.1 This Agreement may be terminated by the CITY at any time during the initial three (3) year term, or the subsequent one-year terms, if extended, upon breach of this Agreement or violation of the provisions of Chapter

5.52 of the Garden Grove Municipal Code. In the event of termination for cause by the CITY, the CONTRACTOR shall be compensated for those services that have been fully and adequately completed and accepted by the CITY as of the date of termination. The CONTRACTOR shall provide documentation deemed adequate by the CITY to show the services actually completed by the CONTRACTOR prior to the effective date of termination. Termination of this Agreement for cause may be considered by the CITY in determining whether to enter into future contracts with CONTRACTOR.

17.2 This Agreement may also be terminated by the CITY without cause upon thirty (30) days notice. In the event that the CITY should terminate the Agreement without cause, the CONTRACTOR shall be entitled to payment

7 for services fully and adequately provided hereunder prior to the effective date of the termination. The CONTRACTOR shall provide documentation deemed adequate by the CITY to show the services actually completed by the CONTRACTOR prior to the effective date of termination.

17.3 In the event this Agreement is terminated as provided by this Section 17, the CITY may procure, upon such terms and in such manner as it deems appropriate, services similar to those terminated.

17.4 The rights and remedies of the parties provided in this Section 17 are in addition to any other rights and remedies provided by law or under this Agreement.

18. Insolvency. The CONTRACTOR shall not, without the prior written consent of CITY, suffer either the appointment of a receiver to take possession of all, or substantially all of the assets of the CONTRACTOR, or make a general assignment of such assets for the benefit of creditors. Any such action taken or suffered by the CONTRACTOR under any insolvency or bankruptcy proceeding constitutes a breach of contract by the CONTRACTOR, and all property assigned by the CITY for safe care shall be "released" by CONTRACTOR to another assigned service provider, as specified by the Chief of Police, with a reimbursement for towing, storage, and related fees, borne by the service provider assuming the new responsibility.

19. Integration. This Agreement fully expresses all understandings between the parties with respect to the subject matter of this Agreement and supersedes all prior or contemporaneous oral or written understandings or agreements regarding the matters covered by this Agreement.

20. Amendments. No modification, amendment, addition to, deletion or alteration of the terms of this Agreement, whether written or oral, shall be valid unless made in writing and formally approved and executed by all parties.

21. No Waiver.

21.1 No delay or omission in the exercise of any right or remedy available hereunder shall impair such right or remedy or be construed as a waiver.

Any waiver of any default or condition hereunder must be in writing and shall not be construed as a waiver of any other default concerning the same or any other provision of this Agreement.

21.2 The waiver by the CITY of any breach by the CONTRACTOR of any of the provisions of this Agreement, shall not constitute a continuing waiver or a waiver of any subsequent breach or default by the CONTRACTOR either of the same or a different provision of this Agreement.

8 22.Third Party Beneficiaries. The terms of this Agreement are intended to confer benefits only on the parties to this Agreement. No rights of action shall accrue to any other persons or entities under this Agreement.

23. Change of Circumstances. Each party shall promptly notify the other party of any legal impediment, change of circumstances, pending litigation or any other event or condition that may adversely affect such party’s ability to carry out any of its obligations under this Agreement.

24. Severability. If any term or condition, paragraph, phrase or word of this Agreement, or the application thereof to any person or circumstance, shall to any extent be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remainder of this Agreement or the application thereof to any person or circumstance, shall remain in full force and effect and shall in no way be affected, impaired or invalidated thereby.

25.Venue. This Agreement shall be governed and construed in accordance with the laws of the State of California. In the event of any legal action to enforce or interpret this Agreement, the sole and exclusive venue shall be a court of competent jurisdiction located in Orange County, California, and the parties hereto agree to and do hereby submit to the jurisdiction of such court, notwithstanding Code of Civil Procedure section 394.

26.Appropriations. This Agreement is subject to and contingent upon funds being appropriated therefor by the Garden Grove City Council for each fiscal year covered by the term of this Agreement. If such appropriations are not made, this Agreement shall automatically terminate without penalty to the CITY

(Agreement Signature Block on Next Page)

9 IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below.

Date: _____________ "CITY"

CITY OF GARDEN GROVE

By: __________________________

ATTESTED:

____________________________
City Clerk

Date: _______________________
"CONTRACTOR"
Cylinder Enterprises Inc., dba Finish
Line Towing and Transport

By: ___________________________

Name: ________________________

Title: _________________________

Date: _________________________

Tax ID No. _____________________

If CONTRACTOR is a corporation, a Corporate
Resolution and/or Corporate Seal is required.

If a partnership, Statement of Partnership
must be submitted to CITY.

APPROVED AS TO FORM:

____________________________
Garden Grove City Attorney

________________________
Date

10 ATTACHMENT “A”

RFP No. S-1309

PROVIDE POLICE ROTATIONAL TOWING AND STORAGE SERVICES

TO THE CITY OF GARDEN GROVE ON AN ON-CALL BASIS

SCOPE OF WORK

The City of Garden Grove (CITY) is seeking one or more contractors to Provide Police Rotational Towing and Storage Service for the City Of Garden Grove On An On-Call Basis in accordance with the Scope of Work detailed below. The Contractor shall furnish All Labor, Materials, Equipment and incidentals needed to provide towing and storage services on an on-call basis for the City of Garden Grove. The CITY intends to enter into an Agreement(s) for a fixed period(s) of time with options to renew or extend the Agreement(s) for additional terms, exercised one year at a time.

1. SERVICES GENERALLY

1.1 The CONTRACTOR has the right to tow, impound, and store vehicles at the direction of the Garden Grove Police Department (hereinafter “Police Department” or “G.G.P.D.”) within or out of the jurisdictional boundaries of the CITY, subject to the Police Department’s call-for-service system, as it may be amended from time to time, at the Police Department’s sole discretion.

1.2 Provided, however, that nothing contained herein shall deprive the owner or operator of a vehicle from requesting and receiving towing services from a person or entity other than the CONTRACTOR.

1.3 Provided, however, that when, in the opinion of the Police Department, an emergency exists, or where the CONTRACTOR is either unable or unwilling for any reason to provide adequate or timely tow service, the Police Department shall have the right to call other tow services, which may or may not be under contract with the CITY. Under such circumstances, the decision to call another tow service, either under contract or not, shall be at the exclusive discretion of the Police Department.

2. LOCATION

2.1 CONTRACTOR shall maintain a physical location with a yard for vehicle storage, along with an office for payment of fees and vehicle releases, which location shall be within 2.5 miles of the CITY limits , and from which the business shall be conducted. Such physical location shall be subject to approval by the Chief of Police or his/her designee. A company may establish and maintain an additional location within or outside the CITY as a yard for vehicle storage, subject to the approval by the Chief of Police or his/her designee.

Except as otherwise directed by the Police Department, each vehicle towed

11 pursuant to this Scope of Work shall be stored at a facility, which is located within 2.5 miles of the CITY limits. Distance shall be measured by distance straight line, without regard to intervening structures or objects, from the nearest point on the property line of the parcel where the tow service facility is located to the nearest point on the city limit boundary. All business offices and storage facilities shall meet all requirements of the contract and the Scope of Work within this RFP document.

2.2 All vehicles stored or impounded at the direction of the Police Department shall be towed directly to the CONTRACTOR’s impound and storage facilities, unless the Police Department requests that they be taken to some other location. If the vehicle is towed pursuant to a citizen request, then at the request of the citizen the vehicle can be stored at any business location of the owner, which has been approved, by the Chief of Police, or his/her designee.

2.3 Any proposed change in the CONTRACTOR’s facility locations shall be reported, in writing, to the police department at least sixty (60) days prior to making such change. The CONTRACTOR shall obtain the approval of the Chief of Police or his/her designee for any change of location.

3. PERSONNEL

3.1 CONTRACTOR shall comply with, and ensure that each of its tow truck drivers complies with, Garden Grove Municipal Code (“GGMC”) Sections 5.52.330 and

5.52.340 (tow truck driver permit requirements). The CITY shall review each application in accordance with Sections 5.52.330 and 5.52.340.

3.2 No person employed as a tow truck driver for the CONTRACTOR shall have access to any G.G.P.D. stored or towed vehicle until such time as that person has received written approval from the Chief of Police or his/her designee.

3.3 Any tow truck driver permit application obtained by the CONTRACTOR or its driver from the Police Department shall be returned to the Police Department accompanied by a State of California Department of Motor Vehicles (“DMV”) printout.

3.4 Tow truck operators shall be proficient in the use of the tow truck they are driving and related equipment, including, but not limited to the procedure necessary for the safe towing and recovery of various types of vehicles. It is the responsibility of the tow service company to ensure, its drivers are trained, qualified and competent employees of the business. The drivers shall complete training and have received a certificate of completion through a recognized tow industry association or company specialized in the training of tow drivers. The training shall be hands on and a minimum of 16 hours for light duty class tow trucks and 24 hours for heavy duty class tow trucks. A copy of the certificate of completion for each tow truck operator providing services pursuant to this Agreement shall be provided by CONTRACTOR to the Police Department prior to commencement of each operator’s employment.

12 3.5 All CONTRACTOR tow truck operators shall possess valid California Tow Truck Driver certificates and Driver’s Licenses in the proper class pursuant to Vehicle Code Sections 13378 and 12804.9(b).

3.6 CONTRACTOR shall provide to the Police Department annually (within 10 days of the anniversary of the Agreement) a list of its tow truck operators, including driver’s license numbers and a DMV printout for each tow truck operator. Any subsequent employment of a new tow truck operator shall be reported in writing to the police department immediately, including submittal of the above- referenced information.

3.7 CONTRACTOR shall notify the Chief of Police or his/her designee in ten (10) days of any change of information on the original application. Failure to notify the Chief of Police in ten (10) days is grounds for revocation of the written approval.

3.8 CONTRACTOR shall provide to the Police Department the name of any tow truck operator no longer employed by CONTRACTOR. This notification shall be given to the Traffic Department no later than ten (10) business days following the last date of such operator’s employment by CONTRACTOR.

3.9 The CONTRACTOR shall have an alcohol and drug program that includes at a minimum, maintaining an alcohol and drug free work environment. Any tow truck operator found working under the influence of alcohol or drugs shall immediately be removed from providing any service to the CITY.

3.10 The CONTRACTOR shall participate in the California Department of Motor Vehicles (DMV) Employer Pull Notice Program.

3.11 The CONTRACTOR’s tow truck operators shall maintain acceptable standards of dress, including uniforms and cleanliness while on duty.

3.12 The CONTRACTOR’s tow truck operators shall cooperate with and abide by the instructions of the police officers in the field.

3.13 Each of CONTRACTOR’s tow truck operators shall obtain from the CITY a clip- on identification tag which such operator shall wear at all times when performing services for the CITY in order to allow ease of tow truck operator identification.

3.14 If any tow truck operator becomes ineligible to provide tow operator services to the CITY, the CONTRACTOR shall immediately notify the Chief of Police or his/her designee of such ineligibility and the reason(s) therefore.

3.15 The CONTRACTOR must have a minimum of three (3) verifiable years for-hire towing experience, as an owner or principal.

13 A. An applicant who does not meet the three (3) verifiable years for-hire towing experience may be considered, if a full-time manager who possesses the required tow management experience is employed by the company. The manager shall have the authority to conduct all company business.

B. If the manager ceases to be employed by the company, the tow Agreement shall be deemed suspended until a new qualified manager is in place. The company will have thirty (30) days to replace the manager to be considered for lifting of the suspension.

C. An owner or operator who releases vehicles, complete lien sales paperwork, and other tow business related documents for three years in the company, with the qualified manager, will fulfill the three years for-hire-towing experience requirement.

4. TOWING SERVICE DUTIES

After being requested to the scene by the Police Department, the CONTRACTOR’s tow truck operator shall comply with all of the following:

4.1 Not move or attach a tow truck to any vehicle until instructed to do so by the investigating officer of the Police Department.

4.2 Cooperate with the investigating officer of the Police Department in removing unsafely and/or illegally parked vehicles from the street, and in the storing or impounding of such vehicles as requested.

4.3 On collision calls, clean up and remove all debris from the accident scene, including but not limited to clean up and removal of all vehicle fluids in the street with absorbent material, as directed by CITY officers and in accordance with Section 27700 of the California Vehicle Code.

4.4 Provide the owner or driver of towed vehicles (when present at scene) with a CONTRACTOR’s business card indicating where the vehicles will be stored or impounded (including address and telephone number).

4.5 Vehicles brought to Police Department or a designated facility from the scene for processing and then towed to the tow yard will incur an additional second tow fee equal to one-half of the regular tow fee. Storage fees will not start until this vehicle is stored at the towing facility.

4.6 CONTRACTOR shall be responsible and held accountable for personal property, vehicle accessories and the vehicle upon receipt of the vehicle from G.G.P.D.

The City of Garden Grove, its officers, agents or employees shall not be liable for loss of or damage to any vehicle, accessory, equipment or personal property towed or stored upon the tow truck driver acknowledging receipt for the vehicle by his/her signature on the stored vehicle report form.

14 4.7 CONTRACTOR shall not dispose of or otherwise relinquish control of any vehicle stored or impounded by G.G.P.D. without a written approval to do so. The written approval is required for any vehicle stored or impounded by G.G.P.D. and the tow truck driver signs a stored vehicle report form and receives a copy of the stored vehicle report. The G.G.P.D. stored automobile release form will be the normal form for release.

4.8 The release of property from a vehicle will be handled in the same manner as a vehicle release. The stored automobile release form will again be used, but a stamp, "property only” will be utilized at the top of the form. The person who authorizes the release of the property will make the modification and will be specific as to description of the property to be released.

4.9 Vehicles shall be released during the business hours of 8:00 am to 5:00 pm, Monday - Friday, “excluding holidays and weekends". There will be, however, occasions arising that can require "after hours releases" of certain vehicles.

When the circumstances appear to justify an "after hour release" of a vehicle, approval of the release must be secured from the on-duty Police Supervisor.

Inoperable vehicles will not be released after hours.

4.10 For purposes of clarity, vehicles towed or stored at the request of citizens, for which no stored vehicle report is utilized, will not require a stored automobile release. Citizens requesting the towing of vehicles under their control shall enter into an agreement with the tow service; G.G.P.D. will act as an avenue of communication between the citizen and the tow service.

4.11 When a party obtains a G.G.P.D. stored vehicle release and presents it to the tow service, the vehicle and/or property shall be released to that person upon verification of identity and the payment of the fees. The registered owner will be required to pay for “property only” releases at the G.G.P.D. records counter.

An after hours fee will be paid to the tow service for "property only" or vehicle releases after the normal business hours of the tow service.

4.12 Once the tow service has received the G.G.P.D. stored automobile release, the tow service is no longer obligated to G.G.P.D. for the continued safe storage of the vehicle and/or property taken.

4.13 If after a "property only" release is obtained, the registered owner may return to the records counter, produce the paid receipt for the "property only" release and request a vehicle impound release paying the difference.

4.14 In the event a vehicle has been stored or impounded by G.G.P.D. due to error or negligence, no charges or fees shall be paid and the vehicle shall be released to the owner or the owner's agent. The City of Garden Grove shall not be liable for any such charges or fees.

4.15 If the error is not discovered before charges or fees are paid to CONTRACTOR for the release of vehicle by owner or owner’s agents. CONTRACTOR shall issue

15 a refund of such charges or fees, if requested within a period of thirteen (13) days after the vehicle is stored.

4.16 If the error is not discovered for a period of thirteen (13) business days after the vehicle is stored and the tow service has initiated lien sale process, as required by C.V.C 22851.8, the tow service shall be entitled to recover actual costs incurred to initiate the lien.

4.17 In the event a tow truck driver has hooked up a vehicle at the direction of G.G.P.D. and the vehicle owner or person in control of the vehicle appears, and the officer decides the vehicle can be released at the scene, then a payment of one-half (1/2) of the tow charge may be charged by CONTRACTOR to and be payable by the vehicle owner or person in control of the vehicle prior to the vehicle being dropped. The G.G.P.D. officer will complete the stored vehicle report noting the release and payment. The officer will then give the tow truck driver the copy as though the tow had been completed. A case number will be assigned to the release of the vehicle; no SVS entry will be made.

4.18 In the case of a vehicle stored or impounded by G.G.P.D. that is of low value and qualifies as a junk vehicle as described within California Vehicle Code Sections 22670 or 22851.10, the tow service may request D.M.V. Form 462, Public Agency Authorization to dispose of a Vehicle to a Scrap Iron Processor or Dismantler, in lieu of obtaining the stored automobile release to process a lien sale for the vehicle. This form will suffice for final disposition of the vehicle and no other release is necessary. Form #462 cannot be issued for (15) fifteen days from the day the vehicle is first stored at the tow facility.

4.19 In addition to the storage yard, the tow service shall maintain a closed building that affords storage of four (4) additional full size vehicles. This enclosure shall be of such size and construction to allow for Forensic Services examination of the cars in a dry environment during inclement weather. Access to this enclosed storage building shall be severely limited by CONTRACTOR, as directed by the investigator assigned to the case for which the vehicle has been impounded.

4.20 CONTRACTOR must advise the Police Department Traffic Division in writing within ten (10) business days, if a person picking up a vehicle, complains to the tow service of damage to the vehicle or any missing vehicle accessories or personal property from the vehicle for which the tow service company denies responsibility.

4.21 All CONTRACTOR’s employees who have access to the storage yard or the personal property which is taken out of any vehicle for storage or safe keeping must provide a complete set of finger prints, complete an application and have written authorization from the Garden Grove Police Chief for such access.

4.22 Upon request of (a) the registered owner; (b) the legal owner; (c) the

16 insurance carrier of either (a) or (b) of this section; or (d) the duly authorized agent of any of the foregoing, CONTRACTOR shall furnish an itemized statement upon request and without demanding payment as a condition. The statement shall include the service performed, labor and special equipment used in towing the vehicle.

4.23 A vehicle on a thirty-(30) day hold may be signed over to the tow company by the legal owner prior to the expiration of the thirty (30) days. The legal owner must first obtain a vehicle release from the Police Department. The tow company after receiving the vehicle release from the Police Department must apply for a lien release prior to selling the vehicle.

4.24 CONTRACTOR may, in the exercise of CITY’s discretion, be assigned by the G.G.P.D. to provide service to a portion of the CITY and/or on a rotational basis. The area assigned to the CONTRACTOR will be determined in the sole discretion of the Police Chief. Currently the CITY is divided into two divisions, "East & West.” The division of the CITY is determined by the calls for service within these divisions. In the event a need arises to utilize more tow trucks than one division has, the services of the other division may be used

5. RESPONSE TIME

5.1 The CONTRACTOR shall provide a response time of no more than twenty-five (25) minutes. Response time is the difference between the time the CONTRACTOR is notified and the time the tow truck arrives at the required location. Emergency conditions, as verified by local media or traffic enforcement may be acceptable reasons for not meeting the response time requirement. Equipment or personnel shortage, or lack of availability is not an acceptable reason for failure to meet response times.

5.2 The CONTRACTOR shall give priority to all of the CITY’s requests for service.

5.3 The CONTRACTOR’s dispatcher shall notify the Police Department when a tow vehicle cannot respond immediately, give the reason for the delay, and an estimated time of arrival. In the event of an additional delay, the CONTRACTOR’s dispatcher shall again notify the Police Department and give the new estimated time of arrival. To ensure a timely response, the Police Department, in its sole discretion, may cancel any call-for-service because of a response delay and may request service from another tow service provider.

5.4 If the tow truck unit(s) has/have not arrived at the scene within twenty (25) minutes from the time requested, the Police Department, based on the urgency of the field situation, may request a different towing service to respond to the call, whether the different tow service has a contract with the CITY or not since there may be a situation where a contract tow company is not available and/or does not have the equipment to handle the requested task. It will then be necessary for the Officer to call a tow company not on the CITY’s rotational tow list. This decision is at the discretion of the officer on scene.

17 5.5 In the event CONTRACTOR is unable to respond to calls at the request of the Garden Grove Police Department, it shall be understood that the Police Department has the right to call another towing company on the rotation list.

The original tow service will be placed on the bottom of the rotation list. It is incumbent upon the tow service to advise the police dispatcher of any problems that may arise to adversely affect response time.

5.6 The Police Department, in order to expedite service can request any tow service out of order on the rotation list. The tow service requested will not lose its place on the rotation list.

5.7 If, while rendering assistance in response to a CITY call for towing, a second CITY call for towing is generated to the CONTRACTOR, the CONTRACTOR’s tow truck operator shall, before responding to the second call, ensure that all vehicles at the first site are sufficiently clear of the roadway so that no obstruction to normal traffic exists. Once the second call is handled to conclusion, the vehicles at the first site may be towed as necessary.

6. EQUIPMENT STANDARDS

6.1 All towing equipment, recovery equipment, and carrier ratings are based on structural factors only. Actual towing, carrying, and recovery capacity can be limited by the capacity of the chassis and the optional equipment selected. The criteria to determine the safe towing limits are:

(1) The total weight of the truck, including the lifted load, must fall within the Manufacturer's Gross Vehicle Weight Rating (GVWR) and not exceed either the Front or Rear Axle Ratings (FAWR, RAWR).

(2) The truck must meet all applicable State and/or Federal standards.

(3) A tow driver when towing a vehicle shall not exceed the GVWR and the Axle Weight Rating (AWR) for the tow truck.

(4) CONTRACTOR must have a qualified driver for each piece of equipment owned and listed in their proposal.

6.2 The CONTRACTOR shall own or have leased to it at least four (4) tow trucks that will be based at its CITY-approved storage facilities and which trucks shall be available to perform towing services at all times during the term of this Agreement. Two trucks shall have a minimum GVWR of 19,000 lbs. The CONTRACTOR shall not use a tow truck with a class rating of less than one ton.

6.3 The CONTRACTOR shall have at least three (3) conventional slings or wheel lift type trucks, one (1) rollback car carrier, one (1) 16 ton 35GVW medium duty truck, and one (1) 50 ton 80 GVW heavy duty truck throughout the term of

18 the contract.

6.4 The CONTRACTOR’s vehicles shall be equipped as tow trucks in compliance with the provisions of the California Vehicle Code including, but not limited to, Sections 615, 24605, 25100, 27700, and 27907. Tow trucks shall be equipped with red flares, lanterns or reflectors, hand tools (required to remove a drive shaft if necessary) crow-bar, rope, broom, shovel, dustpan, absorbent material for clean-up of hazardous materials, fire extinguisher, portable red tail lights and stop lights for towed vehicles, equipment for opening locked vehicles, go jacks and safety chains.

6.5 All CONTRACTOR’s vehicles shall have available adequate equipment to handle large trucks, trailers, tractors and other heavy vehicle equipment. Thi s includes a set of dollies capable of supporting any passenger vehicle.

Notwithstanding the foregoing in Section 6.5, if the CONTRACTOR does not have the necessary equipment to handle large trucks, trailers, tractors or other heavy vehicle equipment, the CONTRACTOR may decline to provide the requested service.

6.6 The CONTRACTOR’s vehicles shall have a cable winch of sufficient size and capacity to retrieve vehicles that have gone over embankments or off traveled portions of roadways into remote areas or other difficult locations.

6.7 Motorcycles that are stored, impounded, or towed from a collision scene at the request of the Police Department shall be hauled by a trailer that is designed to carry motorcycles, or by a flatbed truck.

6.8 Any equipment used and maintained by the CONTRACTOR shall be available for inspection by the Police Department upon request. The CONTRACTOR vehicles shall be subject to random inspection by the CITY.

6.9 The CONTRACTOR shall be equipped for and have personnel proficient in, unlocking locked vehicles. The CONTRACTOR shall unlock locked vehicles when requested to do so by the Police Department.

6.10 Throughout the term of the contract, the CONTRACTOR shall maintain in a neat and clean manner and in good working condition its storage facilities and improvements thereon, all vehicles, facilities, equipment, and materials used by the CONTRACTOR in the performance of the work. Any additions to or deletions from the CONTRACTOR’s tow truck fleet shall be reported immediately, in writing, to the Chief of Police or his/her designee.

6.11 CONTRACTOR shall maintain four (4) operational tow trucks. If, for any reason, CONTRACTOR has only three (3) operational tow trucks, CONTRACTOR shall be allowed thirty (30) days including holidays and weekends to have four (4) operational tow trucks. If the CONTRACTOR has two (2) or less tow trucks operational, it will be removed from the rotational list, until it has three (3) tow trucks operational. The CONTRACTOR will then be allowed up to an

19 additional fifteen (15) days, including holidays and weekends, to get another tow truck operational, for a total of four (4) operational tow trucks. Failure to comply shall be a breach of the contract. Repeated instances of less than four (4) operational tow trucks shall constitute grounds for termination of the tow services agreement.

7. COMMUNICATIONS EQUIPMENT

7.1 The CONTRACTOR during the term of the contract shall maintain, and have approved by the City, a continuous means of communication between the Contractor’s dispatcher and each CONTRACTOR tow vehicle. The CONTRACTOR shall also maintain and staff, on a 24-hour basis, a telephone to receive calls from the police department and members of the public.

7.2 Use of Citizen’s Band Class D radio equip ment by the CONTRACTOR is prohibited.

7.3 Telephone service maintained by CONTRACTOR shall be adequate to receive police calls without delay. The telephone terminals shall be monitored at all times. Recording machines or similar devices are not allowed. If a call from G.G.P.D. is not answered within six (6) rings or the line is busy after two attempts, or placed on hold for more than a minute, the call will be terminated, the CONTRACTOR will be placed on the bottom of the rotation list and the tow service next in line will be called.

7.4 The CONTRACTOR shall provide a list of telephone numbers to be called in order of priority. Changes to contact list shall be provided immediately in writing to the Chief of Police or his/her designee along with the effective date of the change(s)

8. HOURS

8.1 The CONTRACTOR shall provide twenty-four (24) hour towing service, seven (7) days a week.

8.2 The CONTRACTOR shall ensure that there will be an employee on call twenty- four (24) hours a day, seven (7) days a week and capable of being present or available for releasing impounded or stored vehicles to the public in accordance with Section 4.9 of this Agreement. CONTRACTOR’s response time for such releases shall be no longer than one (1) hour.

9. VEHICLE IDENTIFICATION

9.1 Each CONTRACTOR vehicle shall display identification signs in compliance with Section 27907 of the California Vehicle Code. The CONTRACTOR shall not display any signs or advertising that indicates that the CONTRACTOR is an official towing service or police garage of the CITY.

20 9.2 The CONTRACTOR shall not, through its advertisements or otherwise, in any way publicize any official or other business connection with the CITY, nor shall the CONTRACTOR advertise any address or telephone number of the CITY as a location or place to call for vehicle towing and storage service.

10. STORAGE SERVICE RESPONSIBILITIES

10.1 The CONTRACTOR shall be responsible for all vehicles, accessories and equipment thereon, and all personal property therein, stored by CONTRACTOR.

It shall be the Contractor’s duty to protect such stored vehicles, accessories, equipment, and property against all loss, damage by fire, theft, or other causes.

10.2 The CONTRACTOR shall be responsible for the negligent acts and omissions of its employees and for any property damage caused by CONTRACTOR or its employees to any vehicle under their control.

11. STORAGE FACILITY STANDARDS

The CONTRACTOR shall make adequate provisions for the security of vehicles and property at its storage facilities, which shall at a minimum consist of all of the following:

11.1 All vehicles shall be stored in a building, or in an area or areas enclosed by a substantial wall or fence. The storage yard shall be enclosed with a concrete block wall or chain-link type fence of a height of not less than six (6) feet. The top of the fence shall be equipped with two (2) or more strands of barbed wire installed in such a manner as to discourage access by climbing the fence.

Concertina type razor wire may be substituted for barbed wire, subject to G.G.P.D. approval.

11.2 The bottom edge of the fence shall not rise more than two (2) inches above the finished surface of the parking area of the storage yard. A secure locking system shall be a part of the gate and it shall otherwise meet the same standards for security as described for the fence.

11.3 All storage facilities shall be paved and maintained in good working order and secured at all times. Any damage affecting security of vehicles, lighting and/or evidence shall be repaired within twenty-four (24) hours of the damage.

11.4 The minimum total capacity of the CONTRACTOR’s storage facilities for storage shall be spaces for seventy-five (75) vehicles.

11.5 All storage facilities must be approved for security by the Chief of Police, or his/her designee, and available for inspection by the Police Department at all times upon request of the Chief of Police or his/her designee.

11.6 In the event of theft from the vehicles stored in the yard, the CONTRACTOR

21 must take additional measures satisfactory to the G.G.P.D. to protect the vehicles and property in the vehicles.

11.7 Registered or legal owners, having obtained a vehicle release from the Garden Grove Police Department, shall be allowed to inspect their vehicle without having to pay the storage fees first.

11.8 The CONTRACTOR shall not perform any work upon any vehicle without first obtaining written permission from the owner of the vehicle. Notwithstanding the foregoing, all work on impounded vehicles shall be handled pursuant to Section 12 below.

11.9 If the CONTRACTOR videotapes or otherwise records images of the storage facility, such videotapes and photographs shall be maintained by the CONTRACTOR for at least ninety-(90) days.

12. IMPOUNDED VEHICLES & INSIDE STORAGE

12.1 Vehicles that have been impounded by order of the police department shall not be released, lien sold, worked on, altered, or tampered with, without a written release from the Police Department.

12.2 The CONTRACTOR shall maintain, without charge to the CITY, separate, fully enclosed, and secure garage storage facilities for a minimum of four (4) vehicles ordered impounded by the Police Department.

12.3 The Police Department shall have sole access to such separate impound facilities when vehicles are being held for evidence.

12.4 The Police Department shall designate when a vehicle is to be placed into inside impound storage. Vehicles placed into this impound space shall not be removed from such protection until approved and authorized in writing by the investigating officer of the Police Department.

12.5 The CONTRACTOR shall notify the Police Department of any vehicles being impounded within the CITY pursuant to private party impound requests immediately prior to commencement of the towing of such vehicles.

13. RELEASE OF VEHICLES

13.1 The CONTRACTOR is responsible for the release of all vehicles stored by the Police Department, including impounded vehicles. The CONTRACTOR is hereby granted authority to release to the registered owner, legal owner, or authorized representative, all vehicles that the tow company did not receive a stored vehicle report, (Form 180), from the Officer or CITY employee at the scene.

22 13.2 After obtaining a release from the Garden Grove Police Department, registered or legal owners or an agent of the owner requesting to inspect their vehicles or remove property from their vehicles shall be allowed to do so without having to pay the storage fees first. Such inspections and property removals shall be available only during the CONTRACTOR’s regular business hours.

14. RECORDS

14.1 The CONTRACTOR shall log, maintain, complete and accurate business records of the tow service including: a description of the vehicle, nature of service, time, location, tow truck driver handling the call and an itemized total charge.

These records shall be available for inspection by G.G.P.D., with or without cause, with 24 hours’ notice, during normal business hours. These records shall be kept for a minimum period of three (3) years.

14.2 Record systems must provide for immediate access, upon inquiry by the Chief of Police or his/her designee, to the following information:

14.2.1 Locate vehicle from the Police Department’s report number.

14.2.2 Locate vehicle from license number only.

14.2.3 Locate vehicle from make, color, date and location of impound.

14.2.4. Date of filing of all lien sale documents with DMV.

14.3 The CONTRACTOR shall submit a report, by the 10 th day of each month, to the Police Department, which shall include all of the following information for the preceding month:

14.3.1 Total CITY impounds and storages.

14.3.2 Number of times dispatched by the Police Department.

14.3.3 Number of calls for service resulting in impounds.

14.3.4 Number of calls for services that resulted in having to spend more than one hour on the call.

15. LIENS AND DISPOSALS

15.1 On or before the 10 th of each month, the CONTRACTOR shall furnish to the Police Department, a list of all vehicles that have been sold at lien sale during the previous month, and date of the action. This list shall include the vehicle owner’s name, address, vehicle make, vehi cle model, vehicle year, license number, VIN number, and Police Department record number. Copies of all lien sale documents shall be submitted with each list. The document shall be dated and is to include all charges imposed on each sale.

23 15.2 Prior to a lien sale of any vehicle, CONTRACTOR shall confirm with CITY the amount of any outstanding amounts due with respect to parking citations pertaining to the vehicle and shall cooperate with CITY to recover, the extent feasible, all such outstanding amounts due. Notwithstanding the lien priority established pursuant to subdivision (b) of Vehicle Code Section 22851.1, for all lien sold vehicles that were impounded and not released under, or in connection with, subdivision (i) of Vehicle Code Section 22651, CONTRACTOR shall, within thirty (30) days of the lien sale, remit to CITY the lesser of (i) the total outstanding amount due CITY, or (ii) fifty percent (50%) of the total lien sale price received by CONTRACTOR. For all lien sold vehicles with respect to which outstanding amounts are owed CITY for parking violations, but with respect to which CITY does not have a lien pursuant to Vehicle Code Sections 22651(i) or 22851.1, CONTRACTOR shall, within thirty (30) days of the lien sale, remit to CITY the lesser of (i) the total outstanding amount due CITY, or (ii) fifty percent (50%) of the total lien sale price otherwise due to CONTRACTOR in satisfaction of its lien pursuant to Vehicle Code Section 22851(a). CONTRACTOR shall be responsible for filing of all necessary paperwork related to the lien sale and satisfaction of outstanding amounts owed CITY with respect to parking citations.

15.3 The CONTRACTOR shall comply with all State law requirements for the disposal of unclaimed vehicles.

16. INSPECTION

16.1 A CHP (California Highway Patrol) inspection of the company’s towing equipment, facility or facilities is required.

16.2 In addition to the CHP inspection report, the CONTRACTOR's towing equipment, facility or facilities may be inspected at least two (2) times per year (annually) with 24 hours notice, during normal business hours by the Police Department Traffic Division, and a report filed thereon. The Garden Grove Police Department shall be authorized to perform field inspections of CONTRACTOR’s equipment at any time without notice.

16.3 The City Building Division and the Fire Department, on request of the Chief of Police, may inspect the premises proposed to be devoted to public automobile storage and make recommendations to the Chief of Police or his/her designee.

16.4 CONTRACTOR’s towing equipment, facility or facilities may be inspected with or without cause, with 24 hours’ notice, during normal business hours by the Police Department Traffic Division, and a report filed thereon. The Police Department may rely on inspections conducted by the CHP.

16.5 If any deficiencies or equipment violations are discovered during any Police Department or CHP inspection, the CONTRACTOR will be so advised in writing.

The CONTRACTOR will be given ten (10) business days, to rectify the deficiency or violation. Failure to comply will constitute a breach of this agreement.

24 16.6 If in the opinion of the Police Department Traffic Division, the deficiencies or equipment violations which are discovered during any Police Department or CHP inspection prevent a vehicle from being operated in a safe manner, the vehicle will be taken out of service. Failure to comply may result in the CONTRACTOR being removed from the call list.

17. MOTORISTS ASSISTANCE

17.1 Whenever a motorist requests tow assistance from the Police Department and does not specify a particular tow company or membership agency, the service shall, in the sole discretion of the Police Department, be assigned to either the CONTRACTOR or another tow service company awarded a contract for tow service by the CITY. All charges arising out of such assistance assigned to the CONTRACTOR shall be the exclusive responsibility of the CONTRACTOR and the requesting motorist. The CITY shall not be liable for any charges whatsoever arising out of a motorist assistance call. The CONTRACTOR shall not charge such motorist more than the rates specified in the contract.

18. ASSUMPTION OF RISK

18.1 The CONTRACTOR assumes all risk in the event of damage, theft, fire or otherwise, of the vehicles or any other property towed, impounded, or stored by the CONTRACTOR, its employees or agents.

18.2 Notwithstanding any other term or condition herein, in responding to any call from the police department, the CONTRACTOR shall have no claim whatsoever against the CITY or any right to recover from the CITY for the cost of any of the services it renders in the performance of the contract. The CONTRACTOR shall look solely and exclusively to the owner of the vehicle towed, impounded, or stored for payment of the services provided by the CONTRACTOR.

18.3 The CONTRACTOR shall assume the entire risk of nonpayment of any service charges incurred pursuant to the Agreement.

19. DRY RUNS

19.1 The CITY shall not be liable to pay to the CONTRACTOR any charge whatsoever or fee for a call that does not result in a chargeable service being rendered by the CONTRACTOR (i.e., a "dry run").

19.2 In the event the police department errs in impounding or storing vehicle(s), the CONTRACTOR shall cause the release of vehicles upon the direction of the police department without charge for towing or storage.

20. CITY VEHICLE TOWING

20.1 The CONTRACTOR shall provide, without cost to the CITY , towing of all CITY owned vehicles as requested by the CITY.

25 21. ADDITIONAL RESOURCES

21.1 It shall be the responsibility of the CONTRACTOR to provide equipment and to perform the duties as required by the Police Department. The CONTRACTOR is hereby granted authority to utilize additional resources whenever deemed necessary to perform tow service duties. This may include, but is not limited to, personnel and/or equipment of another tow operator whose employees have approval as provided for in the contract. This, however, shall not relieve the CONTRACTOR of its duties and responsibilities, and any additional cost incurred as a result of utilizing additional resources shall not be charged to the CITY.

22. ABANDONED VEHICLES

22.1 Vehicles, or parts thereof, which are disposed of through Abandoned Vehicle Abatement Program by delivery to an authorized automobile dismantler, pursuant to Section 22660 of the California Vehicle Code are excluded from the contract. No charge shall be assessed against the CITY or the owner of any vehicle that is towed, stored, or dismantled under the provisions of the Abandoned Vehicle Abatement Program.

23. CONTRACTOR’S CONDUCT

It shall be grounds for termination of the contract, if CONTRACTOR, or any of its agents or employees or any person(s) connected or associated with the CONTRACTOR as an operator, director, officer, stockholder, general manager, or person who is exercising managerial authority of or on behalf of the CONTRACTOR has committed any one of the following acts:

23.1 Has been convicted of a felony or any crime involving theft, embezzlement, stolen property, fraud or crimes of violence within the last ten (10) years or is so convicted during the term of the Agreement.

23.2 Has published, uttered or disseminated any false, deceptive or misleading statements or advertisement in connection with the operation of the towing service.

23.3 Has conducted the towing service in a manner contrary to the peace, health, safety, and general welfare of the public.

23.4 Has violated or permitted other persons to violate, through an act of omission or commission by the CONTRACTOR, any felony or misdemeanor crime involving sexual offenses or moral turpitude, or a felony involving sale or use of a controlled substance, or any act of dishonesty, fraud, within the last ten (10) years.

23.5 Had an inspection or investigation by the City Building Division, Police Department, or Fire Department, which revealed a deficiency, violation, or

26 conduct that endangers the peace, health, safety and general welfare of the public.

23.6 Employs tow truck drivers under 18 years of age.

23.7 Fails to notify the Garden Grove Police Department Traffic Division in writing of any names, addresses, driver's license number of any newly employed tow truck driver within ten (10) business days of their hire date, or fails to notify the Garden Grove Police Department Traffic Division within ten (10) business days of any tow truck driver who is no longer employed by CONTRACTOR.

23.8 Has charged fees in excess of the schedule rates approved by the Police Department for rotational tow services or in excess of any Federal, State, County or City laws or regulations for towing and/or storage of vehicles or any service incidental to towing.

23.9 Has allowed the services of a tow service driver with a record of violations of the Vehicle Code which has resulted in the suspension or revocation of their driver's license or a second (2nd) driving under the Influence or reckless driving conviction within the three (3) years preceding the most recent violation, to remain in CONTRACTOR’s employment a s a driver providing service to the CITY.

23.10 Fails to comply with any California Vehicle Code, Federal, State, or County regulations and laws relating to towing and/or storing of vehicles, including the impounding and storing of vehicles from private property.

23.11 Fails to maintain control of any personal property, vehicle accessories and vehicles, which have been towed.

23.12 Fails to reimburse the legal or registered owner for damage or loss that occurs while the vehicle was in the CONTRACTOR’s custody.

23.13 Having allowed an unauthorized person access to the storage yard or facilities.

23.14 Any other grounds as outlined in the Agreement between the CITY and the CONTRACTOR.

23.15 Has knowingly made false, misleading or fraudulent statements of a material fact in a report or record required to be filed with the Garden Grove Police Department.

23.16 Has stopped and solicited on any street, highway or other public thoroughfare the rendering of assistance to a person or disabled vehicle without first being requested to do so, except to render emergency aid when there exists an imminent peril to life or property.

27 23.17 Has charged for services not performed, equipment not employed or used, service or equipment not needed, or has otherwise materially misstated the nature of any service performed or equipment used.

23.18 Has been denied consideration for placement on another police department tow list or suspended from another police department tow list, within five (5) years of applying to provide tow services to the City of Garden Grove, or during the term of the CONTRACTOR’s agreement with CITY.

23.19 Obtaining a tow contract from the CITY by use of fraud, trick, dishonesty, or forgery.

23.20 Towing a vehicle to a location other than approved by the Police Department as an authorized storage facility without first receiving prior authorization to do so by the Police Department.

23.21 After towing a vehicle to the CONTRACTOR’s storage facilities, towing the vehicle to another location for storage or impound without authorization from the Police Department.

23.22 Defrauding or conspiring to defraud any owner of any vehicle, any insurance company, or any other person financially interested in the towing, storage, or impound of any vehicle.

23.23 Moving, tampering with, or removing a vehicle involved in a traffic collision prior to the arrival of law enforcement officers at the scene.

23.24 The Police Department receives four (4) or more complaints against the CONTRACTOR during any twelve (12) month period that the Police Department, in its reasonable discretion, determines to be justified, regarding the service, or lack thereof, provided by the CONTRACTOR.

23.26 Failing to comply with any provision of the contract between the CONTRACTOR and CITY.

23.27 Repeated or flagrant violations of the provisions of the California Vehicle Code.

23.28 Demonstrating a pattern or practice of failing to answer calls-for-service, respond promptly to calls, and/or to maintain clean, orderly, and secured storage facilities.

23.29 Failing to obtain and maintain a current valid CITY business license.

23.30 Commission of any unlawful, false, fraudulent, deceptive, or dangerous act while conducting its towing operation business.

23.31 Allowing the insurance coverage required herein to be withdrawn, lapse or otherwise to no longer being in force for any reason.

28 23.32 Dissolution of business or bankruptcy.

23.33 Assignment of the Agreement, or any right or interest stated herein, without the prior written consent of Chief of Police of his/her designee.

23.34 Any recurring deviation from the Police Department approved charges as specified herein.

23.35 Has committed any act constituting dishonesty or fraud.

23.36 Has a conviction or a plea of nolo contendere or guilty to a misdemeanor or felony crime involving sexual offenses, theft, embezzlement, stolen property, fraud, crimes of violence or moral turpitude, or a felony involving sales or use of a controlled substance within the last ten years or during the term of the Agreement between the CONTRACTOR and CITY.

23.37 Has published, uttered or disseminated any false, deceptive or misleading statements against the Police Department, the City of Garden Grove or its employees.

23.38 Has sold or transferred ownership of CONTRACTOR without prior written approval of the Chief of Police and/or in violation of Garden Grove Municipal Code Sections 5.52.160 through 5.52.180. Upon any change in CONTRACTOR’s ownership, CITY reserves the right to re-evaluate the new company/owners per the terms of this RFP and may terminate the Agreement at the sole discretion of the CITY. CONTRACTOR shall not be entitled to terminate the Agreement solely as a result of a change in ownership of CONTRACTOR.

24. FEES/CHARGES

24.1 CONTRACTOR shall charge rates for all service, including an after hour’s release fee, as established by the Chief of Police or his/her designee. The rates for citizen assist calls for services such as service calls or disabled vehicle tows will be established by the Police Department as commercial rates for CONTRACTOR. The Chief of Police or his/her designee prior to the increase will authorize any and all rate increases.

24.2 All rates and charges shall be conspicuously posted in the C ONTRACTOR’s office and in all tow vehicles, and shall be available for review by Police Department and/or persons for whom tow service is provided. All customer bills shall be itemized. It shall be the CONTRACTOR’s responsibility to collect payment for services it renders under the Agreement from the vehicle owners, and the CITY shall not be responsible in any way whatsoever for payment of these charges.

24.3 Routine clean-up such as sweep up, fluid clean-up and debris removal shall be include in the basic tow charge. However, when clean-up is determined to be excessive (by mutual agreement of the CONTRACTOR and the CITY), the rate

29 shall be the labor rate referenced in CONTRACTOR’S proposal (quoted for “labor”).

24.4 The CONTRACTOR, as prescribed within California Vehicle Code Section 22651.1, shall accept a valid bankcard, credit card or cash for payment of towing and storage by the registered owner, legal owner, or agent of the owner claiming the vehicle.

24.5 Following the completion of the initial three (3) year contract period, the Chief of Police or his/her designee may reevaluate the charges and rates set to ensure that the current rates and charges are reasonable.

24.6 Fees for Lien Sale Vehicle Release: A Request Release for Lien Sale-form #439 is required prior to the lien release of any vehicle that has been stored or impounded by the Police Department. The use of this system provides a way to monitor vehicles used or involved in major crimes that may be evidence of the crime, and to prevent their release. An administrative fee of $12.00 per request release for lien sale form has been established to defray the costs of printing, filing, verifying if the vehicle is needed as evidence, and the postage or delivery of the forms to the CONTRACTOR. The fee will begin upon the inception of this agreement. A check for the accumulative total of request release for lien sale forms will accompany each package submitted.

25. ACTS OR OMISSIONS OF REPRESENTATIVES

25.1 It is understood and agreed by the parties that the acts and/or omissions of the owner(s), officers, operators, officials, employees, agents and representatives of the CONTRACTOR in the performance of the services and obligations under this agreement shall constitute the acts and/or omissions of the CONTRACTOR and not of the CITY.

26. ENVIRONMENTAL REGULATIONS

26.1 It is understood and agreed by the CONTRACTOR that all state and federal regulations regarding the clean up and disposal of hazardous materials at the site of all accidents, including those involving CITY owned vehicles, are the responsibility of the CONTRACTOR.

26.2 CONTRACTOR is responsible for maintaining all required records and receipts in the event that these documents are requested for proof of compliance. See guidance documents in APPENDIX C, which do not limit the CONTRACTOR’s responsibility for all state and federal regulations regarding hazardous material clean up and disposal.

30 27. APPLICATION FEES

27.1 The CONTRACTOR shall be subject to the following fees intended to defray the CITY’s costs of processing the Contract:

Tow Application Fee $450.00
(must be included with proposal at the time of submittal)

D.O.J background check $32.00 (made payable to D.O.J

Annual Inspection Fee $250.00

Re-Inspection Fee rate of top step police officer

Tow Driver Permit $81.00

Tow Driver Permit Renewal $40.00

Live scan forms can be obtained at the Police Department. An appointment must be made with the front desk and please bring payment in the form of cash or check, payable to the City of Garden Grove, at the time of your appointment. The total cost is $81.00 (D.O.J.-$32.00, FBI-$17.00, and Police Department $25.00).

31 RFP NO. S-1309
ATTACHMENT “B”

AUTHORIZED TOWING AND STORAGE FEE SCHEDULE

SERVICE FEE
CLASS A $225.00
CLASS B OR FLATBED $260.00
CLASS C $375.00
CLASS D $405.00
Dolly, Go-Jacks or Linkage Fee $80.00
Rollover or Winching Fee $160.00
Clean-Up Fee (fee to City capped at $35.00 per occurrence) $90.00 Hazmat Fee (per five (5) gallon bucket) $140.00

Vehicle Storage Fees (Daily)
Class A-Outside $75.00
Class A-Inside $80.00
Class B-Outside $80.00
Class B-Inside $85.00
Class C or Class D-Outside $85.00
Class C or Class D-Inside $90.00

After Hours Release
50% of the
authorized towing
charge
Minimum Service Call or Drop Fee
50% of the
authorized towing
charge
Lien Sale
As authorized by
the California Civil
and Vehicle Codes
Mileage (per mile outside the corporate city limits) $12.00

GARDEN GROVE
Agenda Item - 4.d.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa Kim From: Amir El-Farra
Dept.: City Manager Dept.: Police Chief
Subject: Acceptance of grant funds
from the California Board of
State and Community
Corrections (BSCC) for
Police Officer Wellness
programs. (Grant
Funds:
$122,162.38) ( Action
Item)
Date: 6/13/2023

OBJECTIVE
For the City Council to accept the grant funds in the amount of $122,162.38 from the California Board of State and Community Corrections (BSCC) Officer Wellness and Mental Health Grant Program that is for the purpose of officer wellness and expansion of mental health resources.

BACKGROUND
The California Board of State and Community Corrections Officer Wellness and Mental Health Grant Program, established in the 2022 Budget Act (Assembly Bill 178, Chapter 45, Statutes of 2022), provides $50 million for city and county law enforcement agencies for improving officer wellness and expanding mental health resources.

DISCUSSION
The funding distribution included the allocation of funds to 394 agencies throughout the State of California. Law enforcement agencies received a portion of the funds based on the number of eligible Peace Officers, with the Garden Grove Police Department eligible to receive $122,162.38.

These funds are designed to improve officer wellness and expand mental health resources. Per the statute, the funding may be used for any of the following purposes:

Establishing or expanding officer wellness units;
Establishing or expanding peer support units;

• •
Services provided by a licensed mental health professional, counselor or other professional that works with law enforcement;
Expanding multiagency mutual aid programs focused on officer wellness and mental health; and/or
Other programs and services that are evidence-based or have a successful track record of enhancing officer wellness.

FINANCIAL IMPACT
The total appropriation for the grant period (July 1, 2022 to December 1, 2025) is approximately $122,162.38. There is neither cost nor income to the City based upon participation in this grant and there will be no fiscal impact to the General Fund.

Supplanting is strictly prohibited for all BSCC grant funds.

RECOMMENDATION
It is recommended that the City Council:

Accept the California Board of State and Community Corrections (BSCC) Officer Wellness and Mental Health Grant Funds in the amount of $122,162.38; and Appropriate these funds to the Police Department’s FY2023-25 budget.

By: Lieutenant Vincente Vaicaro
ATTACHMENTS:

Description Upload Date Type File Name
BSCC Memo 5/24/2023 Backup Material
BSCC-Officer-Wellness-
Grant-memo-from-Linda-
Penner.pdf

•
•
•
•
•

DATE: December 21, 2022
TO: Police Chiefs and Sheriffs
FROM: Linda Penner, Chair
SUBJECT: OFFICER WELLNESS AND MENTAL HEALTH GRANT AWARD

I am pleased to let you know that the BSCC has begun processing the Officer Wellness and Mental Health grants, which were included in the Budget Act of 2022. All eligible law enforcement agencies will receive their payment by February 15, 2023. This memorandum provides further information about the purposes of the grant, and requests your assistance in identifying the person in your agency who will be responsible for required data reporting.

This disbursement is being made in accordance with Assembly Bill 178, Chapter 45, Statutes of 2022, Item 5227-121-0001. This funding is available to all city and county law enforcement agencies employing officers described in Section 830.1 of the Penal Code. The Officer Wellness grant is for the purpose of improving officer wellness and expanding mental health sources as follows:

1. Establishing officer wellness units or expanding existing officer wellness units.

2. Establishing peer support units or expanding peer support units.

3. Services provided by a licensed mental health professional, counselor, or other professional that works with law enforcement.

4. Expanding multiagency mutual aid programs focused on officer wellness and mental health.

5. Other programs or services that are evidence based or have a successful track record of enhancing officer wellness.

For further information about this funding and to identify the amount of funding allocated to your agency, please visit the Board of State and Community Corrections’ webpage for the Officer Wellness and Mental Health Grant available at https://www.bscc.ca.gov/officer-wellness-and-mental-health-grant-program/.

Provision 2 of the Budget Act requires each grant recipient to submit an expenditure report and a final impact report no later than December 1, 2025. Additionally, grant recipients will submit a brief annual expenditure report. Reports will be provided to the Commission on Peace Officer Standards and Training (POST). Detailed information regarding reporting requirements and reporting requirement webinars will be sent out in early 2023.

\6 c~~ BOARD OF STATE AND COMMUNITY CORRECTIONS _______ _ Linda M. Penner, Chair
Kathleen T. Howard , Executive Director WWW.BSCC.CA.GOV Gavin Newsom
California Governor
Officer Wellness & Mental Health Grant Recipients

Please send the name and email address of the individual(s) within your agency who will be responsible for the implementation and reporting requirements for this grant to [email protected] by February 28, 2023 so they may receive additional information regarding detailed reporting requirements, webinars, and deadlines.

If you have any questions regarding this funding distribution, please email [email protected] and a BSCC staff member will respond.

Sincerely,

LINDA PENNER
Chair
Board of State & Community Corrections

Agenda Item - 4.e.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: Maria Stipe
Dept.: City Manager Dept.: City Manager
Subject: Amendment to the
Agreement with Woodruff &
Smart to adjust the rates for
City Attorney services. (Cost
$20,000) (Action Item)
Date: 6/13/2023

OBJECTIVE
For the City Council to approve an amendment to the agreement with Woodruff & Smart to adjust the rates for City Attorney services.

BACKGROUND
Woodruff & Smart (formerly Woodruff, Spradlin and Smart) has provided City Attorney services to the City of Garden Grove since May 1992. These services include counsel on general City matters, counsel for the Planning Commission and other City hearing bodies, contract review, claims review, code enforcement prosecution, and litigation related to a wide variety of matters, including personnel issues. Since 2011, the agreement has had an annual CPI adjustment with a cap of 3%.

DISCUSSION
In the last five years, the CPI has risen in excess of 3%, which has kept Woodruff & Smart from keeping up with their rising costs along with the difficulty in hiring and retaining attorneys due to the current market. For example:

In 2018, the CPI was 4.3%
In 2019, the CPI was 3.4%
In 2020, Woodruff & Smart opted not to implement an increase due to the Pandemic
In 2021, the CPI was 4.5%
In 2022, the CPI was 8.2%

The current rates are $233/hr. for attorneys and $134/hr. for paralegals/law clerks.

The attached amendment would adjust their rates by 5% to $245/hr. for attorneys and to $145/hr. for paralegals and law clerks (rounded to the nearest dollar), and would increase the CPI cap to 5%. The amendment also includes a rate for

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developer reimbursable legal costs at the rate of $295/hr. (which is still substantially lower than what developers pay their own attorneys).

FINANCIAL IMPACT
If approved, funds will be included in the FY 2023-25 biennial budget to cover the amount of the increase, which is estimated to be approximately $20,000 for FY 2023-

24. RECOMMENDATION
It is recommended that the City Council:

Approve the attached amendment to the agreement with Woodruff & Smart for City Attorney services; and
Authorize the City Manager to execute the amendment on behalf of the City.

ATTACHMENTS:

Description Upload Date Type File Name
Amendment to
Agreement for
City Attorney
Services
6/5/2023 Agreement GG-
_AMENDMENT_TO_LEGAL_SERVICES_AGREEMENT_2023_(1).DOCX

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1759516.1

AMENDMENT TO AGREEMENT FOR CITY ATTORNEY SERVICES

This Amendment to Agreement for City Attorney Services is made this ____ day of June, 2023, by and between the City of Garden Grove, hereinafter "City" and Woodruff and Smart, a professional corporation, hereinafter "Attorneys."

Whereas, City and Attorneys , formerly known as Woodruff, Spradlin & Smart, a professional corporation, entered into an agreement for City Attorney services in May 1992 (the "Agreement"), which was subsequently amended on June 7, 1994, September 24, 1996, June 12, 2001, and again on June 28, 2011.

Whereas, Attorneys amended their corporate name from Woodruff, Spradlin & Smart to Woodruff & Smart as of April 13, 2023.

Whereas, the parties wish to further amend the agreement to adjust the compensation to Attorneys thereof.

NOW, THEREFORE, the City and Attorneys agree that the existing Agreement for City Attorney Services, as amended, shall be further amended as follows:

A. Exhibit A to the Agreement s hall be modified to include the following adjusted rates:

1. Hourly Rates for Legal Personnel. The hourly fee for all City work, advisory and litigation shall be $245 per hour for attorneys and to $ 145 per hour for paralegal and law clerk personnel, billable in increments of one-tenth of an hour (six minutes).

2. Third-Party Reimbursement. Legal services provided to the City for which the City receives reimbursement from a developer or other third party for proposed development projects pursuant to a deposit/reimbursement agreement shall be billed at the hourly rate of $295 per hour for all attorneys.

3. CPI Adjustments. Effective July 1 of each year commencing July 1, 2024, the hourly rates for attorneys , paralegals and law clerks above, including third-party reimbursement rate, shall be increased in an amount equal to the percentage change in the Consumer Price Index for the Los Angeles - Long Beach-Anaheim Metropolitan area, urban wage earners and clerical workers, for the period of June 1 -May 30 of the prior year , with an annual cap of 5%. Each hourly labor rate shall be rounded to the nearest one - dollar increment.

1759516.1

4. Reimbursable Expenses.

In-office photocopying:
$0.25 per page
(after 25 pages per copy job)

Mileage: In accordance with the
IRS Standard Mileage Rate
Parking at Courthouse: Actual cost
Filing fees, messenger fees: Actual cost
Jury fees and expert fees: Actual cost
Word Processing: No cost, unless overtime required,
then at cost
Phone/Fax: No cost

B. These Amendments shall become effective July 1, 2023, and shall supersede any provisions to the contrary set forth in the Agreement and any prior amendments thereto.

C. All other provisions of the Agreement not specifically amended herein shall remain in full force and effect as set forth therein.

Attorneys: Woodruff & Smart

By:___________________________
Patrick M. Desmond, President

City: City of Garden Grove

By:____________________________
Mayor
Attest:

________________________
City Clerk

Agenda Item - 4.f.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: Patricia Song
Dept.: City Manager Dept.: Finance
Subject: Award a contract to U.S.

Bank, N.A. for banking
services for Fiscal Years
2023-24 through 2025-26.
(Cost: $79,000 per year)
(Action Item)
Date: 6/13/2023

OBJECTIVE
To request the City Council to award a contract to U.S. Bank, N.A. for banking services for the period from July 1, 2023 through June 30, 2026, with an option to extend for two additional years, for a total performance period of five (5) years.

Option years shall be exercised at the sole option of the City.

BACKGROUND
The City has been using MUFG Union Bank for general banking services since 2012.

In December 2022, U.S. Bank, N.A. acquired Union Bank. The merger and acquisition occurred while staff was planning for a Request for Proposal for banking services. Staff worked closely with our Union Bank representatives and the conversion implementation team at the U.S. Bank, and was assured that all existing services will be transitioned smoothly to U.S. Bank, and the service fees are either maintained at the current level or lowered upon the transition.

DISCUSSION
In June 2022, the City extended its contract with the Union Bank to maximize efficiency and return on investment for efforts invested on the implementation of the various functions related to the new ERP system, such as bank reconciliation, P-card, accounts payable and payroll modules. Staff invested significant amount of time to redesign processes, payment files and standard operating procedures to integrate the bank's online portal with our ERP system. To fully take advantage of the efforts invested, the City decided to continue with Union Bank for banking services for an additional one to two years. The additional time would allow staff to evaluate the cost and benefit of switching banking service provider, and consider the best approach for the selection process.

In summer of 2022, the U.S. Bank announced its intention to acquire the Union Bank. Staff worked closely with the Union Bank representatives to discuss options.

After reviewing the U.S. Bank’s profile, the service lines it provides, the technology and strength it demonstrates, the proposed fee schedule, as well as the timing of the merger, staff believes it is in the best interest of the City to contract with the U.S.

Bank for general banking services, due to the following:

All of the customizations done with the City’s existing banking service provider, Union Bank will be transitioned to U.S. Bank without incurring additional costs. This includes customized reports, P-Card module configuration for credit card coding and posting, user profile setting, remote deposit and ACH payment processing.

Enhanced fee structure, including:

Premium earnings credit rate of 2.25%.

Locked-in pricing for five years through December 31, 2028. The proposed fee rates are consistent with the City’s existing fees with Union Bank, which was established through a competitive process in 2012.

Additional account services, such as:

Money Fund Automated Sweep account with rate over 4%, based on current market.

Competitive P-card and virtual card rebate of 1.35% and a potential to earn an additional 0.45% with early payment incentives.

Based on our current utilization of the services, account balances and volume of transactions, it is anticipated that all banking service fees will be completely offset by monthly earnings.

U.S. Bank, N.A. is an industry-leading financial institution. It is federally chartered, and is subject to oversight by U.S. regulatory agencies, including the Federal Reserve and the Federal Deposit Insurance Corporation (FDIC). U.S. Bank is a full-service commercial bank providing an array of financial services to individuals, companies, and government agencies. The City has been using U.S. Bank for its trust services for decades. U.S. Bank demonstrated strength in its credit rating, liquidity and capital base. Its long-term rating by Standard & Poor’s is A+ with stable outlook.

U.S. Bank offers new technologies that will facilitate the City in its process of further automation. These technologies include but not limited to virtual pay, account sweep, accounts payable optimizer, and automated escheatment process. Staff looks forward to partner with U.S. Bank to continue our efforts in improving efficiency and optimizing processes.

Staff is requesting the City Council to approve an exception to bidding as being in the best interest of the City pursuant to GGMC 2.50.060(G), and award a contract to U.S. Bank from July 1, 2023 through June 30, 2026, with two additional option years.

FINANCIAL IMPACT
The cost of banking services varies based on the types and volumes of transactions,

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and averages about $79,000 per year, and will be included in the City's operating budget. The fee rates per transaction in the contract are either consistent or lower than our current rates. No out-of-pocket expense is anticipated, as it will be fully covered by the potential interest earnings.

RECOMMENDATION
It is recommended that the City Council:

Authorize to dispense with bidding as being in the best interest of the City pursuant to Garden Grove Municipal Code Section 2.50.060(G);

Award a contract to U.S. Bank N.A. for general banking services for the period from July 1, 2023 through June 30, 2026, with an additional two option years; and

Authorize the City Manager or her designee to execute the contract, approve minor modifications as needed, and exercise the option to extend the contract up to five years.

ATTACHMENTS:

Description Upload Date Type File Name
Attachment 1 - Contract
with U.S. Bank 6/5/2023 Exhibit Attachment_A_-
_US_Bank_PSA.pdf
Attachment 2 - U.S. Bank
Master Services Agreement 6/5/2023 Exhibit Attachment_B_- _US_Bank_MSA.pdf
Attachment 3 - U.S. Bank
Banking Services Proposal 6/5/2023 Exhibit Attachment_C- _US_Bank_Proposal.pdf
Attachment 4 - U.S. Bank
Banking Services Pricing
Schedule
6/5/2023 Exhibit Attachment_D-
_Pricing_Schedule.pdf

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PROFESSIONAL SERVICES AGREEMENT

THIS AGREEMENT is made this___ day of , 2023, by the CITY OF GARDEN GROVE , a municipal corporation,("CITY") and U.S. Bank National Association, a national banking association, d.b.a. U.S. Bank hereinafter referred to as “BANK”.

RECITALS

The following recitals are a substantive part of this Agreement:

1. This Agreement is entered into pursuant to Garden Grove COUNCIL AUTHORIZATION, DATED .

2. CITY desires to utilize the services of BANK to Provide Banking Services for the City of Garden Grove.

3. BANK is qualified by virtue of experience, training, education and expertise to accomplish services.

AGREEMENT

THE PARTIES MUTUALLY AGREE AS FOLLOWS:

1. Term and Termination. The term of the agreement shall be for the period of July 1, 2023 through June 30, 2026, with an option to extend said agreement for two additional fiscal years, for a total performance period of five (5) years. Option years shall be exercised at the sole option of the CITY. This agreement may be terminated by the CITY without cause. In such event, the CITY will compensate BANK for work performed to date in accordance with Proposal, Attachment “B”. Contractor is required to present evidence to support performed work completion.

2. Services to be Provided. The services to be performed by BANK shall consist of tasks as set forth in the Proposals, which are attached as Attachment “A” and Attachment “B” and are hereby incorporated by reference. The Proposal and this Agreement do not guarantee any specific amount of work.

3. Compensation. BANK shall be compensated as follows:

3.1 AMOUNT. Total Compensation for this agreement shall be per the attached schedule which is attached as Attachment “C”, and in accordance with Proposals, which are attached as Attachment “A” and Attachment “B”, and are hereby incorporated by reference.

3.2 Payment. For work under this Agreement, BANK shall debit the account designated by CITY and shall provide a monthly analysis statement. Payment shall be based on schedule included in Proposal (Attachment C).

3.3 Records of Expenses. BANK shall keep complete and accurate records of all costs and expenses incidental to services covered by this Agreement in accordance with its records retention schedule. These records will be made available at reasonable times to CITY upon fifteen (15) days written notice.

3.4 Termination. CITY shall have the right to terminate this agreement, without cause, by giving thirty (30) days written notice of termination. If the Agreement is terminated by CITY, then the provisions of paragraph 3 would apply to that portion of the work completed.

4. Non-Liability of Officials and Employees of the City. No official or employee of CITY shall be personally liable to BANK in the event of any default or breach by CITY, or for any amount, which may become due to BANK.

5. Non-Discrimination. BANK covenants there shall be no discrimination against any person or group due to race, color, creed, religion, sex, marital status, age, handicap, national origin, or ancestry, in any activity pursuant to this Agreement.

6. Independent Contractor. It is agreed to that BANK shall act and be an independent contractor and not an agent or employee of the CITY, and shall obtain no rights to any benefits which accrue to CITY'S employees.

7. Compliance with Law. BANK shall comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local government.

8. Notices. All notices shall be personally delivered or mailed to the below listed address, or to such other addresses as may be designated by written notice.

These addresses shall be used for delivery of service of process. Either party may update its notice information by providing notice to the other party.

a. BANK
U.S. Bank National Association
Attention: Kimberly Gimenez, Senior Vice President
U.S. Bank Tower
621 Capitol Mall, Sacramento, CA 95814 | PD-CA- PL11 | usbank.com

With a copy to:

CCS Site Information
[email protected]

b. (Address of City) (with a copy to):

City of Garden Grove Garden Grove City Attorney
11222 Acacia Parkway 11222 Acacia Parkway
Garden Grove, CA 92840 Garden Grove, CA 92840

9. BANK'S PROPOSAL. This Agreement shall include BANK's proposal and Master Services Agreement (which CITY shall execute), which shall be incorporated herein by reference. In the event of any inconsistency between the terms of the proposal or Master Services Agreement and this Agreement, this Agreement shall govern.

10. Familiarity with Work. By executing this Agreement, BANK warrants that:
(1) it has investigated the work to be performed; (2) it has investigated the site of the work and is aware of all conditions there; and (3) it understands the facilities, difficulties, and restrictions of the work under this Agreement. Should Contractor discover any latent or unknown conditions materially differing from those inherent in the work or as represented by CITY, it shall immediately inform CITY of this and shall not proceed, except at BANK's risk, until written instructions are received from CITY.

11. Time of Essence. Time is of the essence in the performance of this Agreement.

12. Limitations Upon Subcontracting and Assignment. The experience, knowledge, capability, and reputation of BANK, its principals and employees were a substantial inducement for CITY to enter into this Agreement. BANK shall not contract with any other entity to perform the services required without written approval of the CITY. E x c e p t f o r a s s i g n me n t s a r i s i n g o u t o f o p e r a t i o n o f l a w d u e t o a m e r g e r o r a c q u i s i t i o n , this Agreement may not be assigned without the prior written approval of CITY. If BANK is permitted to subcontract any part of this Agreement, BANK shall be responsible to CITY for the acts and omissions of its subcontractor as it is for persons directly employed. Nothing contained in this Agreement shall create any contractual relationship between any subcontractor and CITY. All persons engaged in the work will be considered employees of BANK. CITY will deal directly with and will make all payments to BANK.

13. Authority to Execute. The persons executing this Agreement on behalf of the parties warrant that they are duly authorized to execute this Agreement and that by executing this Agreement, the parties are formally bound.

14. Indemnification. BANK agrees to protect, defend, and hold harmless CITY and its elective or appointive boards, officers, agents, and employees from any and all claims, liabilities, expenses, or damages of any nature, including attorneys' fees, for injury or death of any person, or damage to property, or interference with use of property, to the extent arising out of, or in any way connected with breach of the Agreement by, or the negligent or malicious acts of, BANK, BANK's agents, officers, employees, subcontractors, or independent contractors hired by BANK.

This hold harmless agreement shall apply to all liability for services under this Agreement regardless of whether any insurance policies are applicable. The policy limits do not act as a limitation upon the amount of indemnification to be provided by BANK.

[SIGNATURE PAGE FOLLOWS]

IN WITNESS THEREOF, these parties have executed this Agreement on the day and year shown below.

Date:

ATTESTED:
"CITY"

CITY OF GARDEN GROVE

By:

City Manager

City Clerk

Date:

APPROVED AS TO FORM:

"BANK"
U.S. Bank National Association,
d.b.a. U.S. Bank

By:

Name:

Title:

Date:

Tax ID No.

Garden Grove City Attorney

Date

(07/21)

Master Services Agreement

Customer Tax Identification Number: 95-6005848

I, Lisa L. Kim, HEREBY CERTIFY that I am City Manager of City of Garden Grove (“Customer”),

an entity organized under the laws of the State of California

I further certify that I have full power and lawful authority to execute this Master Services Agreement (“MSA”) on behalf of Customer. I further certify that Customer has taken all action required by its resolutions and other organizational documents, records or agreements to authorize the individuals listed below to act on behalf of Customer in all transactions contemplated under this MSA. Customer shall not be bound by the terms and conditions for those specific services described, to the extent Customer elects not to use such service(s). Customer hereby agrees as follows:

DEPOSIT ACCOUNTS:

1. U.S. Bank National Association (“Bank”) is hereby designated as Customer’s banking depository. Customer has received a copy of the deposit account terms and conditions and agrees that such terms shall govern the deposit account services provided by Bank. All transactions between Customer and Bank involving any of Customer’s accounts at Bank will be governed by the deposit account terms and conditions, this MSA and other disclosures provided to Customer. Customer agrees to provide Bank with a copy of documents requested by Bank.

2. Any one (1) of the persons whose names and signatures appear in Appendix A (individually, an “Account Signer”) are hereby authorized to open, add, modify, or close accounts in the name of Customer or its subsidiaries or affiliates, or if applicable, as an agent for another entity, and to sign, on behalf of Customer, its subsidiaries or affiliates or as an agent for another entity, checks, drafts or other orders for the payment, transfer or withdrawal of any of the funds or other property of Customer, whether signed, manually or by use of a facsimile or mechanical signature or otherwise authorized, including those payable to the individual order of the person or persons signing or otherwise authorizing the same and including also those payable to the Bank or to any other person for application, or which are actually applied to the payment of any indebtedness owing to the Bank from the person or persons who signed such checks, drafts or other withdrawal orders or otherwise authorized such withdrawals; and are also authorized to endorse for deposit, payment or collection any check, bill, draft or other instrument made, drawn or endorsed to the accounts governed by this MSA for deposit into these accounts. The authorization contained in the preceding sentence includes transfers of funds or other property of Customer to accounts outside of those accounts Customer maintains at Bank. Any one of the Contract Signers (as defined below) is also authorized to execute any documentation that Bank may require to add or delete Account Signers.

3. Unless Customer otherwise advises Bank in writing and Bank has a reasonable opportunity to act on such writing, the Account Signers listed in Appendix A will be Account Signers on any future deposit accounts that Customer maintains with Bank.

4. Customer acknowledges and agrees that Bank is not required to obtain the consent of or otherwise contact an Account Signer fo r transactions other than those listed in paragraph 2 above, including, but not limited to, transfers between accounts Customer maintains at Bank, advances on loans Customer has with Bank and transfers to pay down loans Customer has with Bank.

TREASURY MANAGEMENT SERVICES:

5. Bank’s treasury management services (“Treasury Management Service(s)”) are described in the U.S. Bank Services Terms and Conditions, any supplements thereto, any implementation documents, user manuals, operating guides and other related documentation and disclosures provided by Bank, and any addendum to any of the foregoing (collectively the "Services Agreement"). Customer has received and reviewed the Services Agreement and desires to use one or more of the Treasury Management Services.

6. Any one (1) of the persons whose names and signatures appear in Appendix B (individually, a “Treasury Management Signer”) are empowered in the name of and on behalf of the Customer to enter into all Treasury Management Services transactions contemplated in the Services Agreement including, but not limited to, selecting Treasury Management Services, appointing agents to act on behalf of Customer in the delivery of Treasury Management Services, signing additional documentation necessary to implement the Treasury Management Services and giving Bank instructions with regard to any Treasury Management Service, including without limitation, wire transfers, ACH transfers, and any other electronic or paper transfers from or to any account Customer may maintain with Bank. Bank may, at its discretion, require Customer to execute additional documentation to implement or amend certain Treasury Management Services. In such cases, documentation necessary to implement or amend such Services shall be signed by a Treasury Management Signer. Customer further acknowledges and agrees that Bank may implement or amend Services based on the verbal, written, facsimile, voice mail, email or other electronically communicated instructions that it believes in good faith to have been received from a Treasury Management Signer. Any one of the Contract Signers (as defined below) is also authorized to execute any documentation that Bank may require to add or delete Treasury Management Signers.

[!li bank.

Master Services Agreement

MONEY CENTER AND SAFEKEEPING SERVICES:

7. Any one (1) of t he persons referenced in Appendix M (individually, a “Money Center Signer”) are each authorized and empowered in the name of and on behalf of the Customer to transact any and all depository and investment business through the Bank’s Money Center division (the “Money Center”) and any securities custodial business through the Bank’s Safekeeping Department (the “Safekeeping Department), which such person may at any time deem to be advisable, including, without limiting the generality of the foregoing, selecting any services that may from time to time be offered by the Money Center or the Safekeeping Department (collectively referred to herein as “Money Center Services” and “Safekeeping Services”, respectively), appointing additional Money Center Signers or agents to act on behalf of Customer with respect to Money Center Services and Safekeeping Services, signing additional documentation necessary to implement the Money Center Services and Safekeeping Services and giving Bank instructions with regard to any Money Center Service and Safekeeping Service. Customer has received and reviewed the Services Agreement and may use one or more of the Money Center Services or Safekeeping Services from time to time. Bank may, at its discretion, require Customer to execute additional documentation to implement or amend certain Money Center Services or Safekeeping Services. In those cases, the required documentation shall be signed by a Money Center Signer. Customer further acknowledges and agrees that Bank may take any action with respect to any Money Center Services or Safekeeping Services requested by a Money Center Signer based on the verbal, written, facsimile, voice mail, email or other electronically communicated instructions that Bank believes in good faith to have been received from a Money Center Signer. Any one of the Money Center Signers is also authorized to execute any documentation that Bank may require to add or delete Money Center Signers.

FOREIGN EXCHANGE:

8. Bank is authorized by Customer to enter into foreign exchange transactions. Customer has received a copy of the Services Agreement and agrees that the terms contained in the Services Agreement, this MSA and other disclosures provided to Customer shall govern the foreign exchange services provided by Bank. Customer agrees to provide Bank with a copy of documents requested by Bank.

FOREIGN CURRENCY ACCOUNTS:

9. Bank is hereby designated as Customer’s banking depository for one or more Foreign Currency Account(s) (the “Foreign Account(s)”). Any one (1) of the persons whose names and signatures appear in Appendix C (individually, a “Foreign Currency Account Signer”) are hereby authorized to open, add, modify, or close any Foreign Account(s) in the name of Customer or its subsidiaries or affiliates and to make, on behalf of Customer, orders for payment or transfer of any of the funds or other property of Customer, whether signed, manually or by use of a facsimile or mechanical signature or otherwise authorized, including those payable to the individual order of the person or persons signing or otherwise authorizing the same. Customer hereby expressly authorizes and directs Bank to accept written and oral instructions any payment orders, by telephone or otherwise, consistent with the Services Agreement. Customer has received a copy of the Services Agreement and agrees that the terms contained in the Services Agreement, this MSA and other disclosures provided to Customer shall govern the Foreign Accounts. Any one of the Contract Signers (as defined below) is also authorized to execute any documentation that Bank may require to add or delete Foreign Currency Account Signers.

OTHER SERVICES:

10. A Contract Signer is authorized and empowered on behalf of Customer to transact any and all other depository and investment business with and through Bank, and, in reference to any such business, to make any and all agreements and to execute and deliver to Bank any and all contracts and other writings which such person may deem to be necessary or desirable.

GENERAL:

11. All Account Signers, Treasury Management Signers, Foreign Currency Account Signers and/or Money Center Signers (whether designated in this MSA or in a prior document [for example, a Certificate of Authority or a Treasury Management Services Agreement] executed by Customer) will remain in place until Bank receives written notice of any change and has a reasonable time to act upon Customer’s written notice.

12. Any and all transactions by or in behalf of Customer with the Bank prior to the adoption of this MSA (whether involving deposits, withdrawals, Treasury Management Services, or otherwise) are in all respects ratified, approved and confirmed.

13. Customer agrees to furnish Bank with the names and signatures (either actual or any form or forms of facsimile or mechanical signatures adopted by the person authorized to sign) of the persons who presently are Account Signers, Treasury Management Signers, Foreign Currency Account Signers and/or Money Center Signers. Bank shall be indemnified and saved harmless by Customer from any claims, demands, expenses, loss or damage resulting from or growing out of honoring or relying on the signature or other authority (whether or not properly used and, in the case of any facsimile signature, regardless of when or by whom or by what means such signature may have been made or affixed) of any officer or person whose name and signature was so certified, or refusing to honor any signature or authority not so certified.

Each of the undersigned (individually and collectively, the “Contract Signers”) certifies that, based on his or her review of Customer’s books and records, Customer has, and at the time of adoption of this MSA had, full power and lawful authority to adopt the MSA and to confer the powers herein granted to the persons named, and that such persons have full power and authority to exercise the same.

Each of the Contract Signers further certifies that he or she has the full power and lawful authority to execute this MSA on behalf of Customer, its subsidiaries and affiliates, or if applicable, as an agent for another entity who has entered into an agreement with Customer authorizing Customer to act on such entity's behalf.

Master Services Agreement

Each of the Contract Signers further certifies that the Account Signers, Treasury Management Signers, Foreign Currency Account Signers and/or Money Center Signers have been duly elected to and now hold the offices of Customer set opposite their respective names, and the signatures appearing opposite their names are the authentic, official signatures of the said signer.

Customer agrees that document electronic signatures or signatures that are transmitted by facsimile or other electronic means shall be binding as of the date signed and to the same extent as original signatures. The parties agree to accept a digital image of this Agreement, as executed, as a true and correct original and admissible as best evidence for the purpose of state law, federal or state rules of evidence, and similar statutes and regulations

The MSA shall be effective as of the last date of the undersigned Contract Signers:

Signature: Signature:

Print name: Print name:

Print title: Print title:

Email address: Email address:

Date: Date:

Signature: Signature:

Print name: Print name:

Print title: Print title:

Email address: Email address:

Date: Date:

Signature: Signature:

Print name: Print name:

Print title: Print title:

Email address: Email address:

Date: Date:

Signature: Signature:

Print name: Print name:

Print title: Print title:

Email address: Email address:

Date: Date:

For Internal Use Only:

Review ____________ Validation Method ____________ TL Review _____________ Imaged _____________

i

U.S. Bank Confidential Information

U.S. Bank
Banking
Services

Rely on a specialized financial partner to
help achieve your goals

Date: May 5th, 2023
PRESENTED TO:

City of Garden Grove
Patricia Song
Finance Director

SUBMITTED BY:

Malisa Day
Relationship Manager
213-356-2097
[email protected]

Kimberly Gimenez
Government Banking Team Lead
916-498-3417
[email protected]

Jordyn Anderson
Treasury Management Consultant
509-835-6098
[email protected]

Table of contents
Cover Letter 3

ii

U.S. Bank Confidential Information

1. Strength and Stability at U.S. Bank 4

2. Scope of Services 5

3. Commercial Cards and Virtual Payments 9

4. New Services From U.S. Bank 12

5. Client Team Support 17

6. Why Choose US Bank 19

Exhibits

1. Pricing Proforma

2. Sweep Prospectus

Disclaimers
The information provided in this proposal is privileged and confidential and is only to be used by the Agency for the sole purpose of choosing a service provider. This information is the sole and absolute property of U.S. Bank and nothing is intended to, in any way, transfer ownership rights to the Agency. This information should not be shared outside of the Agency. U.S. Bank does not agree to contract terms as a part of this proposal.

Regulation W disclaimer: U.S. Bank N.A. is not responsible for the obligations of its affiliates.

If the Agency terminates Master Service Agreement for convenience before expiration of initial term, the Agency shall make U.S. Bank whole for any fees waived by U.S. Bank or other incentives provided by U.S. Bank. The Agency’s make-whole obligation shall be prorated based on number of days remaining in initial term.

“World’s Most Ethical Companies” and “Ethisphere” names and marks are registered trademarks of Ethisphere LLC Dear Patricia,

Keeping pace with a changing financial landscape is vital in today’s economy. As The City of Garden Grove (The City) looks to improve your operations, you can rely on U.S. Bank for forward-looking, cost-conscious solutions.

The City will encounter a superior relationship and service team, a compelling price structure, and a committed and innovative financial partnership with U.S. Bank.

Advancing technology

-

City of Garden Grove U.S. Bank Confidential Information

2 The City will find our ability to innovate and adapt is central to our collective success as financial partners.

Banking at U.S. Bank means you benefit from the full force of our continued investment in technology to help the City manage your cash more efficiently and give you the capability to integrate with your ERP. Ongoing expansion and the introduction of numerous electronic and technological enhancements help keep our products and services at the forefront of efficiency within the banking industry.

We have a dedicated product development staff researching industry changes, trends and developing new payment solutions to ensure we remain agile and provide the most current and effective solutions to meet our clients’ treasury management requirements.

A compelling offer
U.S. Bank is offering to minimize banking costs while achieving efficiencies. In addition to an aggressive fee schedule, we offer a number of compelling incentives.

 Premium earnings credit rate of 2. 25%.
 Money Fund Automated Sweep account with 4% + rate, based on current market.  Competitive P-card and virtual card rebate of 1.35% and a potential to earn an additional 0.45% with our early payment incentives.
 Based on services, balances and volumes presented, we anticipate that all fee s will be offset by the ECR.  We are offering this pricing for 5 years or through December 31, 2028.

Meeting your goals
We continue to develop a wide range of products and integrated delivery systems as our clients accept, adopt, and anticipate emerging technologies. We embrace technology as part of our standard business practices, and we are ready to help you increase automation across your program. The City can expect ongoing collaboration to identify, design and implement the ideal suite of solutions. Our implementation process is the cornerstone of your treasury experience, and your U.S. Bank team approaches each step in your unique conversion with thoughtful deliberation. We customize processes and tailor our solutions to accommodate your priorities.

Working Capital Engagement
Your U.S. Bank team stands ready to examine your operations to facilitate more automation of your daily processes. This collaborative approach includes attainable transition steps to acclimate The City ’s employees to new functions. In addition, we examine your current processes and identify operational changes to make the biggest efficiency gains.

The right offer
With both a compelling solution and price, U.S. Bank can meet your solution needs. We are confident our expertise and services can streamline your operations and reduce expenses. We look forward to working further with you and your team.

Sincerely,
Kimberly Gimenez Malisa Day
Kimberly Gimenez Malisa Day
Senior Vice President Director
Government Banking Team Lead Relationship Manager

1. Strength and stability at U.S. Bank
U.S. Bancorp continues to deliver consistent, predictable, repeatable, industry-leading financial results. Our disciplined business operations at all levels give us confidence in the commitments and decisions we make, allowing us to do what’s right for our shareholders, customers and communities. We have a proven track record of success, including debt ratings that are among the highest in the banking industry. We are focused on being the most trusted choice, creating

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City of Garden Grove U.S. Bank Confidential Information

3 the future now, driving one U.S. Bancorp and striving for simplicity to honor our commitment to strengthen financial futures together.

Credit ratings
Moody’s S&P Fitch DBRS
Ratings Outlook Stable Negative Stable Stable
U.S. Bancorp
Long Term Issuer Rating A3 A+ AA- AA
Short Term Issuer Rating N/A A-1 F1+ R-1 (middle)
Senior Unsecured Debt A3 A+ A+ AA
Subordinated Debt A3 A A AA (low)
Junior Subordinated Debt Baa1 N/A N/A N/A
Preferred Stock Baa2 BBB+ BBB+ A
Commercial Paper P-2 N/A F1+ N/A
U.S. Bank National Association
Long Term Issuer Rating A2 AA- AA- AA (high)
Short Term Issuer Rating P-1 A-1+ F1+ R-1 (high)
Long Term Deposits Aa3 N/A AA AA (high)
Short Term Deposits P-1 N/A F1+ R-1 (high)
Senior Unsecured Debt A2 AA- AA- AA (high)
Subordinated Debt A2 A+ N/A AA
Commercial Paper P-1 A-1+ F1+ N/A
Full ratings are available at https://ir.usbank.com/static-files/bfb8355e-1e3d-44d1-9fe9-a5514109144c Additional measures
The strength and stability of U.S. Bank is more fully showcased by our highly diverse mix of businesses, strong risk management capabilities, and “through-the-cycle” earnings power.

*Data as of 3/31/23 unless noted otherwise.
1 Operational deposits reflect wholesale , trust, term > 30 days and retail. 2 Common equity tier 1 capital to risk-weighted assets, reflecting Basel III standardized with 5 year CECL transition.

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Strong Capital Quality of Robust Liquidity Superior Credit Base Deposits Profile Quality
•
~
~ ~
Well-capitalized post- Resilient deposit base Abundant cash levels Disciplined, through- Union Bank acquisition; wrth mix of consumer I and low-cost borrowing the-cycle underwriting Leading stress test commercial customers capacity standards results
CET1 Capital Ratio2 Insured Deposits YE 2022 LCR Commercial Real Estate

8.5% 51% 122%
(CRE) to Total Loans
14%
Tangible Common Equity Operational Deposits Total Available Liquidity CRE Office Accretion vs. 4Q22 as a % of Uninsured 1 +7.5% 80% $315 B 2% of total loans
1% of total commitments

City of Garden Grove U.S. Bank Confidential Information

4 2.Scope of Services
SinglePoint
SinglePoint enables the City to achieve new levels of efficiency by bringing our powerful banking services together into one easy-to-use website with a single point of access for all your global treasury management service needs. A fully integrated, wholly owned online suite of treasury management services, SinglePoint does not require dedicated PCs or software installation.

All the tools you need to manage your program in one place Mobile SinglePoint
Designed specifically for users who need access to cash management tools when they’re away from a computer. View:
 Key balance information on domestic and international accounts  Current day reports (e.g., ACH Summary and Detail, Wire Detail and Lockbox Summary) SinglePoint External
Messaging
Enhance process efficiencies by utilizing over 200 unique messages, configured and routed to various destinations, including email addresses and SMS messages to mobile devices, ensuring key items receive attention.

SinglePoint
Information Reporting
Manage your financial position with superior reporting tools. SinglePoint provides account summary, detail and transaction information. The City will benefit from:
 Simplified daily account
reconcilement
 Easy funds transfers
 Customizable searching
 Flexible standard and special
reporting
 Customize reports with robust
filtering
 Manage delivery of reports via email
or transmission
 Current-day returned item
decisioning
Data retention
 Previous day data—Four months
 Current day data—10 calendar days
 Additional retention periods available
System administration

Administrators can add, copy and reuse user profiles to set up new users. They can also modify user entitlements, account access and transaction limits at any time with immediate updates. Dual system administration offers added control – all changes to user access or limits require a second system administrator approval to process.

Security

SinglePoint protects account information with the most current and proven technology available, including:
 256-bit AES encryption
 TLS 1.2
 Individual client IDs, passwords and digital signatures  Time-based tokens required to access payment services (ACH and wire transfer)

Access all your treasury needs with one user ID and password Monitor account activity

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City of Garden Grove U.S. Bank Confidential Information

5  Account reconciliation
 Adjustments
 Image Access
 Image File Delivery
 Information reporting
 Lockbox wholesale
 Lockbox Image Look
 VantagePoint®
 Account services
 Asset-based loan
information
 Returned item decisioning
 General ledger reconciliation
 Cash forecasting
 Mobile SinglePoint
 Reports file delivery
Transfer and manage money
 ACH services
 Cash vault
 Electronic cash letter
deposit
 On-Site Electronic Deposit
 Wire and book transfers
 Real-time payments
 Check payables
 Investments and trusts
 Disbursements via Zelle®
Act globally
 International ACH and wire
transfer
 Foreign Exchange Web (FX
Web)
 Global trade
 International information
reporting
 International remittance
calculator
Prevent fraud
 Positive pay services
 Issue Maintenance
 Stop payments
 IP whitelist service
 IBM® Security Trusteer
Rapport™
Control access and stay informed
 Customer service
 External messaging
 System administration
 Dashboard and personal
settings
 LaunchPoint
 Service guide
Account Reconciliation with Positive Pay
We provide positive pay services on full account reconciliation program (ARP) and partial ARP accounts, as well as accounts not set up for reconcilement services.

We also offer account reconciliation reporting via SinglePoint, including:
 Reconciliation summary reports
 Reconciliation data files (with detailed disbursement transactions)  Daily checks paid
 Outstanding check files

You can closely monitor your issue files and quickly correct rejected items on a daily basis with SinglePoint ARP Rejected Items. The report include issues, cancels and stop payments that reject off the ARP system. Examples include duplicate items or items with a dollar amount mismatch.

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City of Garden Grove U.S. Bank Confidential Information

6 SinglePoint® Image Access
The City can retrieve and review sharp, detailed images of all paid checks, deposit tickets, deposited checks, paper debit and credit memos online. Images of returned deposited items, advices, image cash letter (ICL) deposited items and ICL administrative returns are also available. Ease of use is built into each component.

The flexible search tool lets you search by transaction type, account number (or all accounts), check number, amount or date. Prefilled dropdown selections make criteria selection fast. Sort search results by any column with one click. Search results can also be downloaded for further research.

The image viewer offers front and back, zoomed in and out, rotated and inverted views. You can zoom directly to the endorsement, signature line, routing number or bank-of-first-deposit. You can save images for historical reference and paid check confirmation. Front and back images can be saved as standard PNG or ZIP files. You can print multiple images at a time
SinglePoint® ACH
Originate ACH transactions online via SinglePoint, our full-service, browser-based system that creates, stores and originates ACH transactions from any location, at any time. Unique features include:
 Multiple import options, supporting Nacha, comma-separated value (CSV) and fixed field file formats  Ability to export ACH data from SinglePoint to other accounting applications  A function that automatically updates transactions with detail provided in notifications of change (NOCs) SinglePoint Wires
Wires may be initiated online using SinglePoint Wire Transfer. Required user ID and password security is augmented through token-generated password entry and required PIN for each wire transfer. User transaction and daily cumulative limits for initiation and approval are available. User access can be granted by wire type, account and function. Audit reports track activity by wire transfer and by user. Our sophisticated encryption system secures data during transmission.

You can view incoming and outgoing wire transfers in real time via SinglePoint. All details related to the transaction are available to view, print or export. We will credit your account for all incoming wires received before 3 p.m. PST each business day. Our wire transfer department will stay open to receive and process incoming wire transfers in the event the Federal Reserve wire hours are extended.

Cash Vault
We continue to invest in industry-leading cash vault services to help The City make the most of your capital with secure, efficient, cost-saving solutions.

Our diverse client base demands flexible deposit options. We work with your choice of armored courier to deliver cash to our vaults, whether you choose traditional drop safes or remote cash deposit. The contract will be established and managed with the City and the armored courier you utilize. All pricing for the courier fees will be directly handled by them.

The City can place change orders via the Comp-U-Order phone ordering system and SinglePoint® Cash Vault to order cash on your schedule, 24/7. DTS Connex gives you completely visibility of cash management across your organization, from creating orders to deposit tracking – from pick up to funds availability.

Our fully automated cash vault network uses sophisticated vault technology and currency counting equipment with counterfeit detection to securely streamline deposit processing. With all aspects of cash handling working together, the City will see improved productivity, enhanced customer service and more comprehensive information reporting.

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City of Garden Grove U.S. Bank Confidential Information

7 Branch and Cash Vault Supplies:

Traditional Branch Cash Services
We recommend The City order deposit ticket supplies directly through our Commercial Customer Service. We work directly with a preferred vendor to ensure quality and proper specifications are met. You may also order from your preferred vendor and our team can provide you with the appropriate check and deposit specifications Cash Vault Services
We accept deposit tickets and check stock from third-party printers, provided test samples are approved by the MICR and Image Quality Assurance group to ensure MICR quality. Please request specifications for deposit ticket content and format from Commercial Customer Service.

 Purchase bags, and other additional cash vault supplies through our preferred procurement partner, Guy Brown.
 Purchase bags through vendor of your choice.

3. Commercial Cards and Virtual Pay
U.S. Bank has partnered with State of California to offer unique solutions to meet the payment needs of state and local agencies. Through the CAL-Card Program, we provide the most comprehensive payment solutions, including: Purchasing Card, Managed Spend Card, Emergency Card, Ghost Cards, and Virtual Pay.

U.S. Bank’s NASPO ValuePoint Commercial Card Program, in existence since 2002, is a publicly bid and awarded contract for payment card services. This Visa® branded program is open to state agencies, political subdivisions, and higher education institutions.

The NASPO Program provides a standard contract to secure world-class Commercial card services and competitive rebates without conducting a costly and time-consuming RFP and review process. The program offers a convenient way to obtain the services of a trusted card issuer with the commitment to service and experience your program deserves.

U.S. Bank was the first bank-issuer of commercial card programs in 1989 and has led the way in developing commercial card best practices that today are standard throughout the public sector. U.S. Bank offers commercial card and payment processor services to 21 state commercial card programs and more than 60% of the Federal Government. With more than 3,300 public sector clients, this is the market that drives our commercial card products, technology, and service enhancements. Our client base within the public sector includes numerous Federal Government agencies, state government agencies, county and city governments and local municipalities.

Features Benefits

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City of Garden Grove U.S. Bank Confidential Information

8 U.S. Bank Access® Online Use the Access Online system in real time to:
 Monitor cardholder transactions
 Review declined and disputed transactions
 Manage card limits and MCCs
 View electronic statements
 Access up to six years of reporting
 Attach electronic receipts
 Set effective dating for account maintenance and limit adjustments Worldwide card acceptance Visa® branded card allows for unparalleled purchasing access Mobile application Gives you anytime access to your account, so you can quickly manage and stay on top of your business expenses.

Visa® Liability Waiver Program Protects against eligible losses incurred should a terminated employee misuse the card
Experienced U.S. Bank Resources Implementation Manager, Relationship Managers, and Account Coordinators provide consultation and issue resolution, allowing for full program optimization
24-hour customer service Offers unparalleled 24/7 cardholder assistance and fraud support Zero cost program No annual fee or interest charges
Favorable payment terms NASPO program allows for 45 days to pay, late payment penalties are 1% for each past due cycle or in accordance with the State Prompt Payment Act.

Reduced paperwork Increases efficiencies in the procurement process by reducing paper-based transactions for micro-purchases
U.S. Bank Purchasing Card
Our purchasing card provides a cost-effective, time-saving payment option for your business- to-business procurement needs, while streamlining the purchasing process and supporting your supply chain management strategies. By using purchasing cards to place orders, the costs associated with processing requisitions, purchase orders and check requests are dramatically reduced. Simplification of the purchasing process includes policy compliance, supplier negotiations, transaction monitoring, security, reporting and payment.

Competitive rebates
The NASPO Program includes generous revenue sharing opportunities, which provide rebates to qualifying participants. The rebate structure also provides for rewards to each participant based on its individual spending and payment performance.

Below are the rebates available to NASPO participants.
 Standard and Non-Standard Volume Incentive is 135 bps  Prompt Payment Incentive is up to 45 bps depending on speed of reimbursement to the bank  Payments are issued to participants on a quarterly basis, and payable to the agency.

Rebate Estimate - Scenario 1 Volume Rate Rebate Earnings Client Held Days - pay within 1 day of cycle close $575,000 0.440% $2,530.00 Net Standard Charge Volume (Assumed 60% of total volume) $345,000 1.350% $4,657.50 Net Discounted Volume (Assumed 40% of total volume) $230,000 1.350% $3,105.00 Quarterly Payment Estimate $10,293
Estimated Annual Earnings $41,170

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City of Garden Grove U.S. Bank Confidential Information

9 Rebate Estimate - Scenario 2 Volume Rate Rebate Earnings Client Held Days - pay within 15 days of cycle close $575,000 0.300% $1,725.00 Net Standard Charge Volume (Assumed 60% of total volume) $345,000 1.350% $4,657.50 Net Discounted Volume (Assumed 40% of total volume) $230,000 1.350% $3,105.00 Quarterly Payment Estimate $9,488
Estimated Annual Earnings $37,950

Rebate Estimate - Scenario 3 Volume Rate Rebate Earnings Client Held Days - pay within 30 days of cycle close $575,000 0.150% $862.50 Net Standard Charge Volume (Assumed 60% of total volume) $345,000 1.350% $4,657.50 Net Discounted Volume (Assumed 40% of total volume) $230,000 1.350% $3,105.00 Quarterly Payment Estimate $8,625
Estimated Annual Earnings $34,500

**Rebate estimates based on conservative virtual and carded payment volumes provided in Accounts Payable analysis file provided by City of Garden Grove.

Virtual Payments and Program Optimization Services
Replace checks and paper-based processes with virtual payments from U.S. Bank. This real-time, 24/7 solution allows your organization to pay suppliers electronically via single-use accounts. Highly-secure and widely accepted, this payment method gives you complete control over amounts and timing while vastly simplifying the reconciliation process and creating new revenue opportunity.

U.S. Bank Virtual Pay Key Differentiators
Dedicated Supplier Enablement Manager
 Assigned to City of Garden Grove for life of program
 Ongoing reviews, analysis, campaigns to maximize program  Supplier enablement resources
Elavon Merchant Resources
 Enable suppliers for card acceptance
 Straight-Through-Processing
 Preferred Supplier Pricing for large strategic suppliers Program Optimization
 Consulting to optimize program and working capital
 Payment slippage analysis
 Best practices, new solutions, industry trends

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Your current processes remain: Only the payment method changes:
------- • -- • - -- - -- -- - - -- - • Payment
••••

City of Garden Grove U.S. Bank Confidential Information

10 Program Optimization
To support our commitment to your success and to maximize the benefits of your commercial card program, we provide a unique consultative Program Optimization Service. Industry experts regularly describe our Optimization Service strategy and execution as one of the best in the industry. U.S. Bank employs a team of Enablement Consultants dedicated to assist our Relationship Managers with the benchmarking and best practice analysis of their clients’ programs.

Our Optimization Service has been a key part of our client engagement strategy for more than 10 years and drives significant opportunities for our clients. There is no fee for the program and development of best practice recommendations, targeted opportunities, business cases and action plans require minimal commitment of your time or resources. We focus on 5 ways to simplify Supplier Enablement:

4.New Services from U.S. Bank
Sweeps
Our sweeps are automated liquidity solutions, designed to help you reduce manual intervention. You can choose from a variety of investment options to transfer between deposit account and investment. Sweeps can help you:
 Streamline operations—Automatic transfers and consolidated balance reporting save time and resources
 Maintain target balances—Sufficient levels offset fees and minimize deposit coverage fees, allowing you to invest the rest
 Monitor results—SinglePoint previous day reporting offers visibility pf your cash position and provides easy tracking and reconciliation
 Optimize working capital—Maximize the use of cash while maintaining full liquidity from checking, and earn competitive interest rate on excess funds and ensure operations are appropriately funded

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City of Garden Grove U.S. Bank Confidential Information

11 Money Fund
Automatically move excess balances between a U.S. Bank checking account and a sweep account that invests in a First American Funds money market mutual fund. At the end of each business day, after all transactions have posted to the checking account, excess funds are transferred automatically from your U.S.

Bank checking account and invested the next business day. Checking accounts are funded to cover deficit balances on a same-day basis up to the amount of available money fund shares.  Establish your target balance—You choose the balance to maintain in your checking account, and we invest excess balances
 Invest in professionally managed mutual funds—Money mutual funds from First American Funds are highly rated and offer a relatively conservative and stable way to diversify excess cash.  Current day cash position reporting—Monitor your sweep balance and sweep transfers via SinglePoint in real-time

Please see exhibit 2 Prospectus:
 First American Funds Government Obligation Y Fund - FGVXX at 4.41%  First American Funds Treasury Obligation Y Fund - FOCXX at 4.44%  First American Funds U.S. Treasury Money Market Y Fund - FOYXX at 4.23%

Please Note: Rates are subject to change due to market conditions.

Faster payments
We are a leader in faster payments space. The Federal Reserve hosts a collaborative industry dialog to increase the velocity and efficiency of the U.S. payment system that will impact payables and receivables processing. Since 2014, the Fed has tried to effect change through a collaborative approach, establishing Faster Payments and Payments Security task forces to promote industry evolution. The Fed task forces, with more than 500 members, including U.S. Bank, developed a comprehensive set of effectiveness and strategies. We were one of the first banks to pilot real-time payments and we continue to pave the way to a more interconnected payment experience for businesses and consumers.

Real-time payments
We participated in the first transaction to successfully complete a real-time payment through The Clearing House – a payment rail with immediate settlement. The City can transfer funds directly between financial institutions to your trading partners. Unlike wire transfers and ACH payments, funds can move at any time and settle instantly. This can provide significant value for organizations that can benefit from 24/7 payment processing. You can use it to exchange messages, such as requests for payment or payment receipts, as well as exchange remittance information like invoice and account numbers.

AP Optimizer
The City can completely automate your accounts payable (A/P) process, from invoice intake through approval, to payment and reconciliation. AP Optimizer is ERP agnostic and can integrate via multiple various protocols with minimal IT support, and it comes with a network of 5 00,000+ suppliers already accepting payment. Reconciliation is easy because all payments are disbursed through a single platform.

A single platform to simplify A/P
You’ll reduce fraud and see day-one improvements in process efficiencies, cost savings, higher rebates, and complete payment control.

Visit Financial
IQ to learn
more about AP
Optimizer and
A/P
automation

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City of Garden Grove U.S. Bank Confidential Information

12 A streamlined process flow removes pain points

The City will benefit from additional security, process control, digitization and cost savings – as you earn rebate on virtual card and Premium ACH. AP Optimizer offers:
 Automation of invoices and payments while facilitating disbursement and reconciliation of all electronic payment types  Integration via multiple various protocols with minimal IT support  Significant mitigation of internal and external fraud while eliminating supplier account data storage risks  Expedited ROI through a simple, fast implementation process – backed by the strength and stability of U.S. Bank End-to-end fraud mitigation for you and your suppliers

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Effortless
Accelerate invoice
processing through
digitized and
automated
processes
Value-driven
Automate and
streamline payments
as you improve
efficiency and earn
rebates
Reliable
SecureA/P
processes as you
maximize visibility
and control through
electronic workflows

City of Garden Grove U.S. Bank Confidential Information

13 Payee Choice
U.S. Bank Payee Choice allows the City to seamlessly offer payment choices to payees while requiring minimal IT resources to implement. Payment choices range from fast electronic payments like Zelle®, to traditional payment types like check. The City can:
 Customize a payee enrollment website with your brand and payment options  Initiate payment notice and communications to your customers  Manage your internal users
 Track payment status, search payment history and export reports

Payee Choice allows payees control the way they receive their payment, without the City needing to obtain and store sensitive payment data and create separate payment files based on payment type.

Emerging fraud tools- Account Validation
U.S. Bank Account Validation offers the City one of the most powerful tools in mitigating fraud losses and transaction exceptions (e.g., rejects, administrative ACH returns). It serves as a last line of defense against fraud like Business Email Compromise (BEC) and payroll diversion. Account Validation ensures the City is compliant with the Nacha rule that requires validation for the first time use of account information prior to initiating WEB debit transactions.

Account Validation Service process flow

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A simplified
process improves
your consumers'
experience
Client obtains acco unt
details and other required
information as standard
process
Client completes
tran saction or contac ts
appropria te receiver for
additiona l due diligence
+-
1 2
3 4
To send payments, you upload basic payment
information (name, email, dollar amount)
Customized emails (ortext messages) let payees
know a payment is pending
Payees access the Payee Choice website and
provide any additional details
Payee provides their payment choice and we
initiate payments
Clie nt subm its Account
Validation Service inqui ry
via SinglePoint or API
~
Account Validation Service
com pares inquiry data to
information on Nati onal
Shared Database
Client uses information to
assess tran saction risk
Individua l responses
returned in seconds (round
trip to API and SinglePoint,
respectively)

City of Garden Grove U.S. Bank Confidential Information

14 Evolving solutions to outpace fraud
COVID-related fraud schemes are reported to have resulted in losses. Account Validation helps you reduce fraud and payment exceptions by inquiring on account status or account ownership with status information contributed by thousands of banks. the City can view:
 Status information for up to 85% of domestic bank accounts via the Early Warning National Shared Database  Ownership information for 60-65% of domestic bank accounts

Account Validation is offered in collaboration with Early Warning, the owner of the powerful National Shared Database of account information.

*2022 AFP Fraud Survey
Automated Escheatment Service
U.S. Bank Automated Escheatment Service simplifies your entire unclaimed property and escheatment process for checks by:
 Helping prevent the likelihood of unclaimed property at the outset through:
 Improved oversight of your program
 Automatic updates from ARP and SinglePoint Information Reporting  Resolving unclaimed property once it needs to be escheated  Ensuring compliance with 55 unique jurisdictions
 Automating time-consuming tasks, such as:
 Liability analysis
 Due diligence mailings
 State filings
 Providing a streamlined process for your payees to digitally claim their property – improving escheatment resolution rates
 Offering the enhancement of Payee Choice – allowing your payees to choose a more convenient payment method as part of your client outreach

We designed Automated Escheatment Service with a unified workflow to walk the user through the entire process – enabling the City to prevent and resolve your unclaimed property issues.

As an end-to-end solution for unclaimed property and escheatment, Automated Escheatment Service offers visibility and reporting of aging property to help prevent it from becoming unclaimed.  Integrated with our check disbursement solutions
 Automated workflow covers all aspects of the escheatment process – from liability analysis to due diligence mailings to state filings and remittance
 Exceptions-based design requires minimal client interaction

Our streamlined process allows payees to digitally claim their property, increasing the probability of successful claims.

An
estimated
15-20% of
one-time
refund/
reimburse
ment
checks are
escheated

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City of Garden Grove U.S. Bank Confidential Information

15 E-Bill
U.S. Bank eBill Service gives the City a flexible electronic bill presentment and payment solution. Streamline your operations, reduce costs, increase payment rates, and meet your customers' changing demands by providing a secure, simple and fast way to make payments – how, when and where they want.

Multiple payment channel options
 Online
 Mobile
 Pay-by-text
 Facebook Messenger
 Artificial intelligence enhanced virtual assistants (Amazon Alexa, Google Assistant)  Biller customer service
 Interactive voice response (IVR)
Multiple payment methods
 ACH
 Credit, debit and gift cards
 Apple Pay® and Google PayTM coming soon
Configurability options
 URL redirect
 Single sign-on
 Hosted payment form (I frame) and API payment gateway connectivity A mobile-optimized responsive portal with self-servicing capabilities  Text alerts and email notifications—Enroll in timely billing/payment alerts or notifications  Online bill presentment—Enroll in paperless billing, view historical bills  Payment frequency options—Recurring (payer defined payment date/amount), AutoPay (biller defined payment date/amount), one-time pay and payment plan
 Administrative website—Support staff can:
 Access customer profiles
 Schedule/manage payments on for customers
 View payment history
 Run/download comprehensive billing and payment reporting Elavon - Merchant Processing
Elavon, Inc. (Elavon) is a payment processor headquartered in Atlanta, Georgia. Our processing, acquiring and gateway services support payment acceptance for customers across North America and Europe. We leverage our position as an industry leader to deliver a cost-efficient processing infrastructure and secure, scalable payment solutions.

As a wholly owned subsidiary of U.S. Bank National Association (a subsidiary of U.S. Bancorp), Elavon is included within the Payment Services line of business. We are backed by the strength and stability of U.S. Bank, the fifth-largest commercial bank in the U.S. that has been awarded as one of the world’s most ethical companies. A “One U.S. Bank” philosophy drives our delivery of services, allowing us to serve as a single source for banking and payment services. We leverage our

[!Bbank

City of Garden Grove U.S. Bank Confidential Information

16 experience and the resources of the whole bank when developing new solutions, enhancing the services we provide and supporting our customers’ success.

Pre-Paid Cards
Streamlining and reducing the cost of routine disbursements for the City can be aided by the use of prepaid cards. U.S. Bank offers a range of prepaid card solutions designed to help you automate a variety of one-time and recurring payments, such as payroll disbursements, rewards and incentives, per diem payments, 1099 individuals, travel, customer refunds, etc. We provide cost-efficient payment solutions that spans the full range of uses as shown in the chart below.

Controlling payments using prepaid cards allows you to efficiently manage your budgets, reduce check usage and save on administrative costs. The entire program is easily implemented and is controlled by your appointed administrator, allowing the City to have full control over the amount and timing of all disbursements.

It also provides recipients with a payment method they know and, being issued by U.S. Bank, it comes from a name they can trust. For the recipient, a prepaid card carries the Visa or Mastercard brand, making it flexible and easy- to-use (accepted almost everywhere). Recipients do not have to undergo a credit check or have a bank account to get or use a prepaid card, making it available to everyone.

**Pricing for these new services are to be negotiated upon if the City decides to move forward with any of the new solutions.

5.Client Team Support
Malisa Day is your relationship manager and single point of contact for the City’s relationship with U.S. Bank. Malisa is responsible for your overall banking relationship and dedicates their time to evaluating the marketplace, matching new and emerging technologies and solutions to your changing needs. They also lead your team of product and service specialists to deliver the right balance of functionality, capability and efficiency in an ever-changing financial landscape.

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Primary use: awards with cash access, incentives
Additional uses: rebates
ReliaCard Primary use: government benefit payments
Additional uses: Pension/retirement plans

City of Garden Grove U.S. Bank Confidential Information

17 Dedicated to your ongoing needs, Malisa will meet with the City at least annually to conduct a high-level evaluation with relevant U.S. Bank product partners. A quarterly business review may also be in order as part of a defined ongoing relationship management plan. Malisa will work to understand the appropriate frequency of formal meetings and as business circumstances and needs dictate.

Customer service
Our highly skilled and extensively trained service staff responds to the City’s routine and complex inquiries. Requests are tracked in a call-tracking database. Your relationship manager and other service bankers can access your request – saving you time and allowing us to identify service and quality trends and opportunities for improvement.

Your assigned CCS team has a unique phone number, fax and shared email box. Every call is answered promptly by a live service banker – the phones are not fronted by an interactive voice response (IVR) menu.

CCS personnel take ownership of your inquiry, with final resolution often occurring during the initial call. More complex issues are personally managed and tracked until resolution. Our servicing guidelines ensure you receive a call with a complete response or a call with an estimate of additional time required to resolve a complex issue.

While your relationship manager is always your first point of contact for program issues, some services have dedicated operations groups providing additional assistance.

Commercial Customer Service – Portland
555 SW Oak Street
Portland, Oregon 97201
The Portland site has 16 service bankers
CCS services
Answer inquiries and provide support
Depository servicing
 Answer inquiries about statement or bank procedures
 Assist with fraud issues
 Open and close accounts
 Correct deposit errors and provide correction documentation  Issue stop payments
 Transfer funds
 Perform routine maintenance, such as address changes, special handling requests, returned items
 Provide copies of specific transactions at your request  Research errors, missing deposits, etc.
 Reorder depository supplies

Treasury management services
Answer inquiries, research specific transactions and perform simple maintenance Account reconciliation  Deposit recap
 Deposit reconciliation
 Full/partial reconciliation and positive pay

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City of Garden Grove U.S. Bank Confidential Information

18 Collection and
concentration
 Cash vault
 E-payments
 Focal Point Plus
 National processing
 Lockbox
 On-Site Electronic Deposit
 Returned check management

Disbursement
 ACH
 Bill consolidator payments
 Controlled Disbursement
 Electronic data interchange
 Wires
 Zero balance accounts

Information reporting SinglePoint
Image
 Paid check images
 Deposit ticket images
 Deposited item images
 Adjustment images
 Miscellaneous debits and credits

Loan services
Answer inquiries and provide support
Loan Servicing
 Perform loan payments and advances
 Confirm availability of funds
 Provide transaction history
 Research errors, missing transactions, etc.
 Answer invoice questions
 Retrieve specific invoices at your request
 Perform routine maintenance such as address
changes

6.Why choose U.S. Bank?
One bank for your financial journey
U.S. Bancorp is a diversified financial service holding company and the parent company of U.S. Bank National Association.

Headquartered in Minneapolis, we serve 18.8 million consumer, business and institutional customers offer a comprehensive suite of banking, investment, mortgage, trust and payments products through four core lines of business:
 Payment Services  Wealth Management and Investment Services  Consumer and Business Banking  Corporate & Commercial Banking Our outstanding track record of financial performance coupled with our sound ethical business practices have earned us the honor of being named a 2023 World’s Most Ethical Company® – our ninth consecutive – by the Ethisphere Institute. We were also named Fortune’s 2022 “most admired superregional bank” for the 12th consecutive year. Fortune ranked U.S. Bank in the Top 10 among 680 companies across all industries for:
 #3 Social Responsibility
 #3 Use of Corporate Assets
 #8 Management Quality
 #9 Financial Soundness
 #10 Long-Term Investment Value
Building a better future today
Strong civic connections start with listening and understanding the needs of our communities and deepening relationships in ways that move us all forward. As our neighborhoods face challenges, we endeavor to help address those challenges through:
 Employee leadership and volunteerism
 Financial support of our nonprofit partners
 Investments and loans for transformational community projects  Sharing our knowledge through financial education

[!J bank.

City of Garden Grove U.S. Bank Confidential Information

19 Our employees are inspired and engaged leaders in their communities and offer their time and talent. Our Development Network chapters and Business Resource Groups empower employees to harness what they hear from their clients and community partners and help them mobilize our resources to lead the way to success.

Human Resources and the Diversity, Equity and Inclusion (DEI) office help execute our commitment to creating and sustaining an inclusive workforce that drives business growth and propels accountability at all levels of the organization.

Our employees’ unique talents propel us with innovative, thoughtful solutions for all our customers and communities.

Collaborate with a trusted partner
You can expect world class results from a national bank with a local relationship team focused on your program. We don’t let our history and numbers just speak for themselves – we are committed to a consultative partnership with the City and demonstrating the benefit and value of our solutions, every single day.

From your initial Working Capital Engagement with our solutions engineers to day- to-day inquiries for Commercial Customer Service (CCS), you can be assured of a superior client experience. A team of experienced specialists across U.S.

Bank works behind the scenes to provide seamless service and technology so you can focus on the business of doing business.

Our size, strength and scale keep us well positioned for future growth. We are committed to invest in delivering innovative and remarkable solutions for our customers, shareholders, employees and communities as their most trusted financial partner.

[!Bbank
Proforma Account Analysis

City fo Garden Grove
Consolidated Analysis Summary
Lead Account Number 0
Earnings Credit Rate 2.25%
Negative Collected Rate 0.00%
Current Month Multiplier 533.33
Settlement Frequency Monthly
Balance Summary
Average Ledger Balance $ 21,000,000.00
Average Float - 0.00
Average Collected Balance = 21,000,000.00
Average Negative Collected $ 0.00
Average Positive Collected Balance $ 21,000,000.00
Settlement Analysis
Average Positive Collected Balance $ 21,000,000.00
Fee Based Collected Balance (Net of Reserves) - 0.00
Collected Balance Available for Earnings Credit Services = 21,000,000.00 Earnings Credit @ 2.25% 39,375.00
Interest Paid on Balances 0.00
Earnings Credit Based Service Charges - 6,625.56
Current Month Surplus/(Deficit) Position = 32,749.44
Net Service Charges $ -
Net of Interest and Service Charges
Interest Earned Less Service Charges -$
Collected
Unit Total Balance
AFP Service Volume Price Price Required
Depository Services
010010 Money Mkt Savings Maintenance 2 $ 2.00 4.00$ 2,133$ 010000 Account Maintenance 8 $ 2.00 16.00$ 8,533$ 010101 Paper Credits 24 $ 0.75 18.00$ 9,600$ 010101 Electronic Credits 375 $ 0.04 15.00$ 8,000$ 010100 Paper Debits 1,353 $ 0.05 67.65$ 36,080$ 010100 Electronic Debits 73 $ 0.04 2.92$ 1,557$ 010102 Combined Transactions/Items 1,825 $ 0.00 -$
100224 Deposited Item 7 $ 0.05 0.35$ 187$ 100400 Returned Deposited Items 1 $ 8.00 8.00$ 4,267$ 100405 Returned Item Special Instruc $ 0.00
May 2023 Page 121 of 447
[$3bank.

Account Analysis & Billing
Proforma Account Analysis

Collected
Unit Total Balance
AFP Service Volume Price Price Required
100405 For First 1 1 $ 8.00 8.00$ 4,267$ 100405 For Over 1 3 $ 5.00 15.00$ 8,000$ 100402 Redeposited Returned Item $ 2.00 -$
100440 Returned Item Email Notice $ 2.00 -$
100440 Returned Item Email Images $ 2.00 -$
000230 Deposit Coverage 21000 $ 0.129 2,709.00$
010310 Truncated Paper Stmt $ 6.00 -$
150240 Check Filter Monthly Maint $ 11.00 -$
150420 Manual Stop Payment-24 Months 9 $ 20.00 180.00$ 96,000$ 010600 Account Inquiry 15 $ 2.00 30.00$ 16,000$ 151342 Copy of Check/Deposit Ticket 10 $ 2.00 20.00$ 10,667$ Subtotal Depository Services 3,093.92$ 1,650,091$ Account Reconcilement Services
150030 Full/Positive Pay Maint $ 0.00
150030 For First 1 Per Acct 1 $ 30.00 30.00$ 16,000$ 150030 For Over 1 Per Acct 2 $ 15.00 30.00$ 16,000$ 150120 Full/Positive Pay - per Item 1,353 $ 0.055 74.42$ 39,688$ 150322 SP Checks Returned 1 $ 12.00 12.00$ 6,400$ 151352 SP Pos Pay Image Retrieval 7 $ 0.00 -$
20020B SP Issue/Cancel Input 43 $ 0.25 10.75$ 5,733$ 150310 SP Positive Pay Exceptions 136 $ 0.20 27.20$ 14,507$ 20020B SP Issue Mnt Upload - per File $ 0.00
20020B For First 6 Per Acct 0 $ 10.00 -$
20020B For Over 6 Per Acct $ 0.00 -$
159999 SP Issue Mnt Confirm-per File $ 1.00 -$
200100 SP ARP Recon Report-per Item 1,496 $ 0.03 44.88$ 23,936$ 200306 SP ARP Recon Reports Maint 3 $ 20.00 60.00$ 32,000$ 200306 SP ARP Recon Outstanding Maint 1 $ 1.00 1.00$ 533$ 200306 SP ARP Recon Outstanding Item 143 $ 0.03 4.29$ 2,288$ 200306 SP ARP Daily Paid Monthly Main 3 $ 5.00 15.00$ 8,000$ 200306 SP ARP Daily Paid - per Item 1,353 $ 0.03 40.59$ 21,648$ 200201 Transmission Input 31 $ 8.00 70.00$
1 37,333$
200301 ARP Transmission Output 5 $ 5.00 25.00$ 13,333$ 200301 ARP Transmission - per Item 7,795 $ 0.01 77.95$ 41,573$ 150122 Payee Positive Pay Maintenance 2 $ 10.00 20.00$ 10,667$ 151022 Payee Positive Pay-per Item 1,353 $ 0.03 40.59$ 21,648$ 150122 SP Payee Pos Pay Exceptions 123 $ 1.50 184.50$ 98,400$ 150230 Stale Date Maintenance 1 $ 5.00 5.00$ 2,667$ 150230 Stale Date Trans - per File 1 $ 5.00 5.00$ 2,667$ Subtotal Account Reconcilement Services 778.17$ 415,021$ SinglePoint
400272 Sp Current Day Per Acct $ 0.00
400272 For First 1 1 $ 20.00 20.00$ 10,667$ 400272 For Over 1 8 $ 18.00 144.00$ 76,800$ 400272 Sp Current Day Per Item 870 $ 0.03 26.10$ 13,920$ May 2023 Page 122 of 447
[$3bank.

Account Analysis & Billing
Proforma Account Analysis

Collected
Unit Total Balance
AFP Service Volume Price Price Required
400272 Sp Previous Day Per Acct $ 0.00
400272 For First 1 1 $ 20.00 20.00$ 10,667$ 400272 For Over 1 9 $ 18.00 162.00$ 86,400$ 400272 Sp Previous Day Per Item 2,774 $ 0.03 83.22$ 44,384$ 010407 Account Analysis Report CSV 1 $ 0.00 -$
409999 Monthly DDA Statement PDF 10 $ 0.00 -$
400800 SP Extended Retention-12 mos 0.0001 $ 30.00 0.00$ 2$ 400800 SP Extended Retention-24 mos 0.0001 $ 50.00 0.01$ 3$ 401020 SP Token Monthly Maintenance 4 $ 1.00 4.00$ 2,133$ 400810 SP User Add/Modify/Delete 2 $ 3.00 6.00$ 3,200$ 400810 SP Account Add/Modify/Delete 0.0001 $ 3.00 0.00$ 0$ 400820 SP Bank Assist Password Reset 0.0001 $ 3.00 0.00$ 0$ 409999 SP Book Transfer Mo Maint $ 0.00
409999 For First 1 1 $ 25.00 25.00$ 13,333$ 409999 For Over 1 9 $ 0.00 -$
409999 SP Book Transfer-per Transfer 6 $ 0.40 2.40$ 1,280$ 999999 SP Cash Vault Mo Maintenance 1 $ 20.00 20.00$ 10,667$ 100141 SP Cash Vault per Order 1 $ 0.00 -$
150410 SP Stop Payments Mo Maint $ 0.00
150410 For First 1 1 $ 25.00 25.00$ 13,333$ 150410 For Over 1 9 $ 0.00 -$
150410 SP Stop Payments-per Stop 16 $ 1.00 16.00$ 8,533$ 150412 SP Stop Pmt Renewal-per Stop 160 $ 1.00 160.00$ 85,333$ 250000 SP ACH Origination Mo Maint $ 0.00
250000 For First 1 1 $ 25.00 25.00$ 13,333$ 250000 For Over 1 $ 0.00 -$
250000 SP ACH Origination Rec Email 7 $ 0.12 0.84$ 448$ 250000 SP ACH Positive Pay Mo Maint 1 $ 17.50 17.50$ 9,333$ 350000 SP Wires Monthly Maintena $ 0.00
350000 For First 1 1 $ 25.00 25.00$ 13,333$ 350000 For Over 1 $ 0.00 -$
250000 SP ACH POS Pay Authorization 0.0001 $ 1.00 0.00$ 0$ 250000 SP ACH POS Pay per Paid Item 0.0001 $ 0.10 0.00$ 0$ 150030 SP Positive Pay Monthly Maint 3 $ 0.00 -$
200201 SP Issue Maint Mo Maintenance $ 0.00
200201 For First 1 1 $ 0.00 -$
200201 For Over 1 2 $ 0.00 -$
151350 SP Image Access Mo Maint 2 $ 25.00 50.00$ 26,667$ 409999 SP Rtn Item Decision Mo Maint
409999 For First 1 1 $ 5.00 5.00$ 2,667$ 409999 For Next 48 $ 1.00 -$
409999 For Over 49 $ 0.00 -$
409999 SP External Message Mo Maint $ 0.00
409999 For First 1 1 $ 25.00 25.00$ 13,333$ 409999 For Over 1 9 $ 0.00 -$
409999 SP External User Message Sent 69 $ 0.00 -$
Subtotal SinglePoint 862.07$ 459,770$
May 2023 Page 123 of 447
[$3bank.

Account Analysis & Billing
Proforma Account Analysis

Collected
Unit Total Balance
AFP Service Volume Price Price Required
Wire Transfers
350300 Incoming Fedwire 5 $ 5.00 25.00$ 13,333$ 350712 Incoming Intl Wire 0.0001 $ 10.00 0.00$ 1$ 350123 Internal Wire Credit 0.0001 $ 7.50 0.00$ 0$ 350100 SP Fedwire Repetitive 0.0001 $ 7.50 0.00$ 0$ 350104 SP Fedwire Non-Repetitive 4 $ 7.50 30.00$ 16,000$ 350700 SP Intl USD Repetitive 0.0001 $ 15.00 0.00$ 1$ 350700 SP Intl USD Non-Repetitive 0.0001 $ 15.00 0.00$ 1$ 350120 SP Internal 5 $ 5.00 25.00$ 13,333$ Subtotal Wire Transfers 80.01$ 42,670$ Zero Balance Accounts
010020 ZBA Lead $ 25.00 -$
010021 ZBA Subsidiary $ 10.00 -$
Subtotal Zero Balance Accounts -$
Sweep
450020 Commercial Money Fund Sweep $ 150.00 -$
Subtotal Sweep -$
Image Services
151351 SP Cks Pd per item Stored 1,085 $ 0.035 37.98$ 20,253$ 151351 Dep Itms Img per Item Stored 7,342 $ 0.025 183.55$ 97,893$ 151352 SP Short Term Imgs Retrieved 2 $ 1.00 2.00$ 1,067$ Subtotal Image Services 223.53$ 119,213$ ACH Services
250000 ACH Monthly Maintenance 1 $ 60.00 60.00$ 32,000$ 250120 ACH Originated Addenda Item 0.0001 $ 0.04 0.00$ 0$ 250501 ACH Process Run 7 $ 24.25 169.75$ 90,533$ 250102 ACH Orig Transit Item $ 0.00
250102 If 1 - 10000 Per Acct 767 $ 0.12 92.04$ 49,088$ 250102 If Over 10000 Per Acct $ 0.12 -$
250102 ACH Originated On-US Item $ 0.00
250102 If 1 - 10000 Per Acct 767 $ 0.12 92.04$ 49,088$ 250102 If Over 10000 Per Acct $ 0.12 -$
259999 ACH File Confirmation Email 7 $ 2.30 16.10$ 8,587$ 250202 ACH Received Item 1 $ 0.26 0.26$ 139$ 251050 ACH Block Mthly Maint-per Acct 0.0001 $ 17.00 0.00$ 1$ 251050 ACH Filter Mthly Maint 0.0001 $ 22.00 0.00$ 1$ 251055 ACH FILTER CHANGE 0.0001 $ 6.00 0.00$ 0$ 250300 Unauth ACH Return - per Item $ 8.25
250302 ACH Return-per Item 1 $ 8.25 8.25$ 4,400$ 251070 ACH Notification of Change 1 $ 5.25 5.25$ 2,800$ 250640 ACH Item Adjustment Request 1 $ 33.00 33.00$ 17,600$ May 2023 Page 124 of 447
[$3bank.

Account Analysis & Billing
Proforma Account Analysis

Collected
Unit Total Balance
AFP Service Volume Price Price Required
250102 Same Day ACH Orig Transit Item 1 $ 0.50 0.50$ 267$ 259999 SDA Special Processing $ 190.00
250102 SP ACH On-US Item 1 $ 0.12 0.12$ 64$ 250102 SP ACH Transit Item 1 $ 0.12 0.12$ 64$ 250102 SinglePoint SDA Transit Item $ 0.50
250505 SP ACH Process Run 1 $ 5.00 5.00$ 2,667$ 250302 SP ACH Rtn Item 1 $ 8.25 8.25$ 4,400$ 250300 SP Unauth ACH Ret - per Item $ 8.25
251070 SP ACH NOC Item 1 $ 5.25 5.25$ 2,800$ Subtotal ACH Services 495.93$ 264,498$
Branch Coin/Currency Services
10001Z Cash Deposited-per $100 $ 0.15
100000 Branch Deposit Processing Fee 4 $ 1.75 7.00$ 3,733$ 109999 Night Dep Processing-per Dep 0.0001 $ 1.75 0.00$ 0$ 150501 Non Customer On US Ck Cashing 2 $ 0.00 -$
Subtotal Branch Coin/Currency Services 7.00$ 3,733$ CVS Coin/Currency
100114 Cash Dep-per $100-Extended 777 $ 0.08 62.16$ 33,152$ 100100 Cash Vault Deposit-Extended 20 $ 0.90 18.00$ 9,600$ 100104 Envelope Deposit-Extended $ 2.00
100113 Coin Bag Deposited-Extended 1 $ 1.50 1.50$ 800$ 100111 Loose Coin Deposited-Extended 1 $ 4.00 4.00$ 2,133$ 100501 Cash Dep Adjustment-Extended $ 8.00
100144 Individual Coin Roll-Extended $ 0.19
100146 Box Coin Ordered-Extended $ 7.00
10014A Curr Order-per Strap-Extended $ 0.50
100141 Std Cash Orders-Extended $ 5.00
100141 Non Std Cash Orders-Extended $ 6.00
100143 Late Cash Order-Extended $ 35.00
100147 Coin Bag Ordered-Extended $ 6.00
Subtotal CVS Coin/Currency 85.66$ 45,685$ Electronic Deposit Services
101300 EDM Monthly Maint - per Acct $ 0.00
101300 For First 1 1 $ 65.00 65.00$ 34,667$ 101300 For Over 1 $ 20.00 -$
101300 Web Monthly Maint - per Wrkstn $ 0.00
101300 If 1 - 10 1 $ 20.00 20.00$ 10,667$ 101300 If 11 - 50 $ 20.00 -$
101300 If Over 50 $ 20.00 -$
109999 Deposit Credit 125 $ 0.80 100.00$ 53,333$ 101311 Image Check Item - On-Us 242 $ 0.09 21.78$ 11,616$ 101310 Image Check Item - Transit 6,792 $ 0.09 611.28$ 326,016$ 101311 Image Cash Letter Item - On-Us 19 $ 0.09 1.71$ 912$ May 2023 Page 125 of 447
[$3bank.

Account Analysis & Billing
Proforma Account Analysis

Collected
Unit Total Balance
AFP Service Volume Price Price Required
101310 Image Cash Letter Item-Transit $ 0.00
101310 If 1 - 10000 Per Acct 289 $ 0.09 26.01$ 13,872$ 101310 If 10001 - 25000 Per Acct $ 0.09 -$
101310 If 25001 - 100000 Per Acct $ 0.09 -$
101310 If Over 100000 Per Acct $ 0.09 -$
010101 Image Cash Letter Deposit Fee 19 $ 1.50 28.50$ 15,200$ 101300 ICL Monthly Maintenance $ 0.00
101300 For First 1 1 $ 125.00 125.00$ 66,667$ 101300 For Over 1 $ 50.00 -$
Subtotal Electronic Deposit 999.28$ 532,949$ Total Service Charges 6,625.56$ 3,533,631$
Prices quoted in this proposal are only for those Treasury Management Services requested by the customer. Additional Treasury Management Services will be separately priced at the time of customer's request. Prices quoted are valid for 60 days following customer's receipt, after which they will be subject to change by U.S. Bank. All prices are subject to change, at any time and at Bank's sole discretion, due to changes in business conditions, volumes, quality of work provided by the customer and normal pricing change cycles.

Notwithstanding anything contained herein to the contrary, all Treasury Management Services provided to customer are subject to U.S. Bank's Services Terms and Conditions, as the same may be amended from time to time.

Branch Cash services availability is subject to change based on client processing requirements and branch capacity.

Pricing for Branch Cash Services is subject to change when non-standard processing is requested.

May 2023 Page 126 of 447
[$3bank.

Account Analysis & Billing
Agenda Item - 4.g.

City of Garden Grove

INTER-DEPARTMENT MEMORANDUM
To: Lisa L. Kim From: Craig Beck
Dept.: City Manager Dept.: Community and Economic
Development Department
Subject: Adoption of a Resolution
Declaring a Surplus Land
Exemption for real property
located at 11390-11400 Stanford
Avenue, Garden Grove. ( Action
Item)
Date: 6/12/2023

OBJECTIVE
To request the City Council consider adoption of a Resolution declaring certain real property located at 11390-11400 Stanford Avenue, Garden Grove, as exempt Surplus Land.

BACKGROUND
The City owns real property located at the southwest corner of Stanford Avenue and Eighth Street at 11390-11400 Stanford Avenue, Garden Grove, the north portion of a larger assessor’s parcel APN No. 090-154-57. An appraisal determined the fair market value, and the highest and best use of the property is for multi-family residential development in accordance with the existing zoning.

Pursuant to the California Surplus Land Act Section 54221(b)(1), the City Council must declare City owned real property to be “surplus land” or “exempt surplus land” prior to the City taking action to sell or dispose of real property; and submit the determination to the California Department of Housing and Community Development (HCD) for its review and approval at least 30 days prior to disposition of the property.

DISCUSSION
Exempt surplus land is defined to include surplus land that is transferred to another local agency for the agency’s use, per Government Section Code 54221(f)(1)(D). Additionally, Section 103(b)(3)(D) of the Surplus Land Act Guidelines issued by HCD, state that local agency surplus land that is transferred to another local agency for the transferee agency’s use is exempt from the provisions of Articles II and III of the SLA/HCD Guidelines.

The Garden Grove Housing Authority (GGHA) has the authority and power under Housing Authority Law and Housing Successor Law to provide funding for the production, improvement, or preservation of affordable housing. The City intends to sell and convey the Property located at 11390-11400 Stanford Avenue, Garden Grove, CA, to the GGHA for the development of affordable housing and is taking the required steps to declare that the Property is exempt surplus land, as supported by written findings. A Purchase and Sale Agreement between the City and GGHA will be presented to City Council for consideration at a future meeting.

FINANCIAL IMPACT
There is no financial impact for the City Council to adopt the resolution declaring certain real

There is no financial impact for the City Council to adopt the resolution declaring certain real property located at 11390-11400 Stanford Avenue, Garden Grove, as exempt Surplus Land. An appraisal will be done on the subject property at a later time to determine the financial impact.

RECOMMENDATION
It is recommended that the City Council:

Adopt the Resolution approving the exemption to the Surplus Land Act for sale of City owned real property to the Garden Grove Housing Authority; and Authorize the City Manager, or her designee, submit the Resolution to the California Department of Housing and Community Development for their review and approval, on behalf of the City.

By: Monica Covarrubias
Sr. Project Manager
ATTACHMENTS:

Description Upload
Date Type File Name
Resolution
Declaring
Property
Exempt
Surplus
Land
6/5/2023 Resolution GG_Resolution_Declaring_PD_Annex_Property_Exempt_Surplus_Land_for_Transfer_to_HA.docx

•
•
NG-U9ZQVMF2/4859-7824-2663v2/022627-0000
RESOLUTION NO. ___

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF GARDEN

GROVE, CALIFORNIA, DECLARING CERTAIN REAL PROPERTY
LOCATED AT 11390 -11400 STANFORD AVENUE, GARDEN
GROVE, CALIFORNIA AS EXEMPT SURPLUS LAND; AND,

MAKING CERTAIN OTHER FINDINGS IN CONNECTION

THEREWITH
WHEREAS, the City of Garden Grove (“City”) is a California municipal corporation and general law city; and
WHEREAS, the Garden Grove Housing Authority (“Authority”) is a California housing authority acting under the California Housing Authorities Law, Part 2 of Division 24, Section 34200, et seq., of the Health and Safety Code (“HAL”); and WHEREAS, further, the Authority serves as the “housing successor” to the for mer Garden Grove Agency for Community Development, a dissolved redevelopment agency (“Former Agency”) pursuant to Part 1.85 of Division 24 of the Health and Safety Code, in particular HSC Section 34176.1 (“Dissolution Law” or “Housing Successor Law”) and t he Dissolution Law references and incorporates certain affordable housing laws set forth in Health and Safety Code Section 33000, et seq. that survived the dissolution of all California redevelopment agencies and remain effective as to housing successors, including the Authority (“CRL”); and
WHEREAS, the Authority is authorized and empowered under the HAL, CRL and Dissolution Law to provide funding for the production, improvement, or preservation of affordable housing and appurtenant improvements, and maint ains accounts thereunder including funds on deposit in the Low to Moderate Income Housing Fund pursuant to HSC Section 34176.1 (“LMIHAF”); and
WHEREAS, while the City has broad powers and purposes, a housing authority (including as a housing successor) is more limited in statutory purpose and focus to carry out affordable housing functions, including, without limitation, the power to finance housing such as through issuance of loans, grants, bonds, or other tax exempt obligations, to construct, maintain, and operate housing, to monitor and enforce covenants and applicable laws, etc.; and
WHEREAS, in more simple wording, a housing authority is an affordable housing specialist entity, with specific regulations, policies, powers, and tools to accomplish the housing duties imposed on the City via State and local law, and thereby best suited, between the two entities (City and Authority), to advance the community’s affordable housing goals; and
WHEREAS, state law statutory references in this Agreement are to the C alifornia Government Code (“GC”) and the California Health and Safety Code (“HSC”) unless otherwise stated; and

Reso No. ___

WHEREAS, the City is the owner of certain real property located at the southwest corner of Stanford Avenue and Eighth Street in the City, the pa rcel is approximately 96,073 square feet in size, and has a common address of 11390 -11400 Stanford Avenue, Garden Grove, California (north portion of a larger assessor’s parcel APN No. 090 -154-57) (herein, “Property”); and
WHEREAS, the Property is suitable for development of affordable housing; and WHEREAS, the City recently rezoned the Property (Ordinance No. 2925) to be within the CC-3 (Civic Center Core Mixed Use) zone district and the permitted base density was increased to 60 units per acre, which base density is before consideration of use for affordable housing or application of a density bonus or other incentives; and WHEREAS, the CC -3 zone is established to encourage civic, educational, commercial, high-density residential, and compatible uses that enliven the City’s core and work together to create a walkable, lively district that encourages interaction and engagement in community activities; the zoning allows shared parking facilities, promotes pedestrian orientation of buildings, high -quality architecture, pedestrian-scale landscaping, pathways, and signage reinforce the goal to create places where people, not cars, predominate; and WHEREAS, the City obtained an independent appraisal of the Property that concludes the highest and best use is for “m ultiple family residential development in accordance with the existing zoning; and
WHEREAS, pursuant to GC Section 54221(b)(l) of the California Surplus Land Act (GC Sections 54220 -54234) (“SLA”), the City Council must declare real property to be “surplus land” or “exempt surplus land” before the City Council takes action to sell or otherwise dispose of real property; and
WHEREAS, GC Section 54221(f)( 1)(D) defines “exempt surplus land” to include surplus land that is transferred to another local agency for the agency’s use; and WHEREAS, pursuant to Section 103(b)(2)(D) of the Surplus Land Act Guidelines (“SLA/HCD Guidelines”) issued by the State of California, Department of Housing and Community Development (“HCD”), local agency surplus land that is transferred to another local agency for the transferee agency’s use is exempt from the provisions of Articles II and III of the SLA/HCD Guidelines; and
WHEREAS, pursuant to the SLA, the City Council must take formal action in a regular public meeting to de clare that the Property is exempt surplus land, as supported by written findings, which is the subject and intention of this Resolution; and WHEREAS, by this Resolution the City Council declares pursuant to GC Sections 54221(b)(1) and 54221(f)(1)( D) that the Property is exempt surplus land because the City intends to sell and convey the Property to the Authority for the development of affordable housing on the Property; and