Hermosa Beach City Council
October 28, 2025

Docusign Envelope ID: 7455AAD7-D77E-40CE-916A-F0D5C359D18E City of Hermosa Beach

CORRECTIONS. In addition to the above indemnification obligations, the CONTRACTOR shall correct, at its expense, all errors in the work which may be disclosed during the City’s review of the CONTRACTOR’s report or plans. Should the CONTRACTOR fail to make such correction in a reasonably timely manner, such correction shall be made by the CITY, and the cost thereof shall be charged to the CONTRACTOR. In addition to all other available remedies, the City may deduct the cost of such correction from any retention amount held by the City or may withhold payment otherwise owed CONTRACTOR under this Agreement up to the amount of the cost of correction.

NON-APPROPRIATION OF FUNDS. Payments to be made to CONTRACTOR by CITY for services preformed within the current fiscal year are within the current fiscal budget and within an available, unexhausted fund. In the event that CITY does not appropriate sufficient funds for payment of CONTRACTOR’S services beyond the current fiscal year, the Agreement shall cover payment for CONTRACTOR’S services only to the conclusion of the last fiscal year in which CITY appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year.

NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows:

CITY CONTRACTOR
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254
All City Management Services
10440 Pioneer Blvd., Suite 5
Santa Fe Springs, CA 90670
ATTN: Lieutenant Mick Gaglia ATTN: Demetra Farwell
Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in the manner prescribed in this paragraph.

Courtesy copies of notices may be sent via electronic mail, provided that the original notice is deposited in the U.S. mail or personally delivered as specified in this Section.

A. SOLICITATION. CONTRACTOR maintains and warrants that it has not employed nor retained any company or person, other than CONTRACTOR’s bona fide employee, to solicit or secure this Agreement. Further, CONTRACTOR warrants that it has not paid nor has it agreed to pay any company or person, other than CONTRACTOR’s bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should CONTRACTOR breach or violate this warranty, CITY may rescind this Agreement without liability.

B. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is generally for the exclusive benefit of CONTRACTOR and CITY and not for the benefit of any other party.

There will be no incidental or other beneficiaries of any of CONTRACTOR’s or CITY’s obligations under this Agreement.

Docusign Envelope ID: 7455AAD7-D77E-40CE-916A-F0D5C359D18E City of Hermosa Beach

C. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County.

D. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written.

E. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party.

F. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment with signatures of all parties to this Agreement. CITY’s city manager, or designee, may execute any such amendment on behalf of CITY.

ACCEPTANCE OF FACSIMILE OR ELECTRONIC SIGNATURES. The Parties agree that this Contract, agreements ancillary to this Contract, and related documents to be entered into in connection with this Contract will be considered signed when the signature of a party is delivered by facsimile transmission or scanned and delivered via electronic mail. Such facsimile or electronic mail copies will be treated in all respects as having the same effect as an original signature.

FORCE MAJEURE. Should performance of this Agreement be impossible due to fire, flood, explosion, war, embargo, government action, civil or military authority, the natural elements, or other similar causes beyond the Parties’ control, then the Agreement will immediately terminate without obligation of either party to the other.

TIME IS OF ESSENCE. Time is of the essence to comply with dates and schedules to be provided.

ATTORNEY’S FEES. The parties hereto acknowledge and agree that each will bear his or its own costs, expenses and attorneys' fees arising out of and/or connected with the negotiation, drafting and execution of the Agreement, and all matters arising out of or connected therewith except that, in the event any action is brought by any party hereto to enforce this Agreement, the prevailing party in such action shall be entitled to reasonable attorneys' fees and costs in addition to all other relief to which that party or those parties may be entitled.

STATEMENT OF EXPERIENCE. By executing this Agreement, CONTRACTOR represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONTRACTOR represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private CONTRACTORs, and experience in dealing with public agencies all suggest that CONTRACTOR is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public agency.

Docusign Envelope ID: 7455AAD7-D77E-40CE-916A-F0D5C359D18E City of Hermosa Beach

OWNERSHIP OF DOCUMENTS. It is understood and agreed that the City shall own all documents and other work product of the CONTRACTOR, except the CONTRACTOR’s notes and workpapers, which pertain to the work performed under this Agreement. The City shall have the sole right to use such materials in its discretion and without further compensation to the CONTRACTOR, but any re-use of such documents by the City on any other project without prior written consent of the CONTRACTOR shall be at the sole risk of the City.

DISCLOSURE REQUIRED. (City and CONTRACTOR initials required at one of the following paragraphs)
By their respective initials next to this paragraph, City and CONTRACTOR hereby acknowledge that CONTRACTOR is a “CONTRACTOR” for the purposes of the California Political Reform Act because CONTRACTOR’s duties would require him or her to make one or more of the governmental decisions set forth in Fair Political Practices Commission Regulation 18700.3(a) or otherwise serves in a staff capacity for which disclosure would otherwise be required were CONTRACTOR employed by the City. CONTRACTOR hereby acknowledges his or her assuming-office, annual, and leaving-office financial reporting obligations under the California Political Reform Act and the City’s Conflict of Interest Code and agrees to comply with those obligations at his or her expense. Prior to CONTRACTOR commencing services hereunder, the City’s Manager shall prepare and deliver to CONTRACTOR a memorandum detailing the extent of CONTRACTOR’s disclosure obligations in accordance with the City’s Conflict of Interest Code.

City Initials
CONTRACTOR Initials
OR
By their initials next to this paragraph, City and CONTRACTOR hereby acknowledge that CONTRACTOR is not a “CONTRACTOR” for the purpose of the California Political Reform Act because CONTRACTOR’s duties and responsibilities are not within the scope of the definition of CONTRACTOR in Fair Political Practice Commission Regulation 18700.3(a) and is otherwise not serving in staff capacity in accordance with the City’s Conflict of Interest Code.

CityInitials
CONTRACTOR Initials
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.

CITY OF HERMOSA BEACH CONTRACTOR
Demetra Farwell, Corporate Secretary Steve Napolitano, Interim City Manager

Docusign Envelope ID: 7455AAD7-D77E-40CE-916A-F0D5C359D18E City of Hermosa Beach

Todd Leishman, Interim City Attorney
ATTEST:
95-3971517
Taxpayer ID No.

APPROVED AS TO FORM:

Myra Maravilla, City Clerk

Docusign Envelope ID: 7455AAD7-D77E-40CE-916A-F0D5C359D18E City of Hermosa Beach

Exhibit A
Scope of Services

1. All City Management Services, Inc. will handle the Crossing Guard services for the City of Hermosa Beach for a one (1) year period; to commence on: August 20, 2025, ending on June 12, 2026.

2. ACMS will provide fourteen (14) personnel equipped and trained in appropriate procedures for crossing pedestrians in marked crosswalks. Such personnel shall be herein referred to as a Crossing Guard. ACMS is an independent CONTRACTOR and the Crossing Guards to be furnished by it shall at all times be its employees and not those of the City of Hermosa Beach.

3. Crossing Guard Services shall be provided by ACMS at designated locations, identified by the City of Hermosa Beach and ACMS shall provide coverage at the school crossings as required. ACMS shall be flexible and provide guards for the hours and locations needed on the instructions of appropriate City personnel.

4. ACMS and all persons who are employed for assignment to this contract shall undergo background checks to ensure they have not been convicted of any offense involving moral turpitude, a felony for a violent crime, or a felony for crimes against children. ACMS understands no one registered as a sex offender or narcotics offender will be hired as a crossing guard.

5. All persons who are employed for assignment shall undergo a drug testing prior to deployment. ACMS will maintain a written policy regarding a drug and alcoholfree work environment that can be made available to the City upon request.

6. Crossing Guards assigned to the City of Hermosa Beach Crossing Guard program shall have the ability to read, write and speak English with sufficient proficiency such that they can communicate quickly and accurately with children and emergency service personnel.

7. ACMS designated Trainer will conduct training for Crossing Guards. ACMS shall provide personnel properly trained as herein specified for the performance of duties as a Crossing Guard.

8. In the performance of their duties ACMS and its employees shall conduct themselves in accordance with the conditions of this Agreement and the laws and codes of the State of California pertaining to general pedestrian and school crossing safety.

9. ACMS understands all crossing guards shall also receive training pertaining to general traffic safety for pedestrians, motorists and themselves while serving as crossing guards.

10. ACMS employees shall work to the highest professional standards and act in a courteous, respectable manner and shall conduct themselves in a manner that is befitting a public servant. They shall present a professional appearance, that is neat, clean, well-groomed and be properly uniformed.

11. ACMS shall provide all Crossing Guards with apparel by which they are readily visible and easily recognized as Crossing Guards. Such apparel shall be uniform for

Docusign Envelope ID: 7455AAD7-D77E-40CE-916A-F0D5C359D18E City of Hermosa Beach

all persons performing the duties of Crossing Guards and shall be worn at all times while performing said duties. The apparel must be appropriate for weather conditions.

12. ACMS shall provide three (3) Traffic Cones per crosswalk and shall be responsible for the replacement of Traffic Cones.

13. ACMS shall provide supervisory personnel to see that Crossing Guard activities are taking place at the required places and times, and in accordance with all items of this agreement.

14. ACMS shall maintain adequate reserve personnel to be able to furnish alternate Crossing Guards in the event that any person fails to report for work at the assigned time and location and agrees to provide immediate replacement. ACMS shall provide its employees a 24-hour answering service and shall establish its own callout procedures.

15. ACMS shall invoice the City of Hermosa Beach bi-weekly, invoices shall provide the following detail, at a minimum: total hours worked, hourly rate billed, crossing guard names, assignment locations, shift start/end times and date worked.

Docusign Envelope ID: 7455AAD7-D77E-40CE-916A-FOD5C359D18E

CERTIFICATE OF LIABILITY INSURANCE DATE (MM/DD/YYYY)
12/30/2024
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS

CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.

If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s). -c=o=N=T�A=cT�--��---------------------

PRODUCER
Marsh & McLennan Agency LLC
Marsh & McLennan Ins. Agency LLC
1 Polaris Way #300
Aliso Viejo CA 92656
License#: OH18131
NAME:

PHONE
AJC No Ext: FAX
AJC No:
i�DAJ�ss: lacerts marshmma.com
INSURER(S) AFFORDING COVERAGE NAIC#
INSURER A: National Casualty Company 11991

INSURED ALLCITYMAN
All City Management Services, Inc.
10440 Pioneer Blvd., Suite 5
Santa Fe Springs CA 90670
INSURER B: AXIS Surplus Insurance Company 26620
INSURER c: Westchester Sur us Lines Insurance Co 10172
INSURER D: Lexington Insurance Company 19437
INSURER E:

INSURER F:

COVERAGES CERTIFICATE NUMBER: 898454974 REVISION NUMBER:
□ □

CERTIFICATE HOLDER CANCELLATION

SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE

THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN Hermosa Beach
ACCORDANCE WITH THE POLICY PROVISIONS.
1315 Valley Drive
Hermosa Beach CA 90245-0000 AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.

The ACORD name and logo are registered marks of ACORD

THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS

CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS.

INSRL LTR TYPE OF INSURANCE ADDLS

INSD UBRWVD POLICY NUMBER POLICY EFF (MM/DD/YYYY) POLICY EXP (MM/DD/YYYY) LIMITS D X COMMERCIAL GENERAL 0 LIABILITY N N 052114698 8/1/2024 8/1/2025 EACH OCCURRENCE $1,000,000 CLAIMS-MADE OCCUR DAMAGE TO RENTED PREMISES (Ea occurrence) $100,000 X 500,000 MED EXP (Any one person) $
PERSONAL & ADV INJURY $1,000,000
GEN'L AGGREGATE 0 LIMIT APPLIES PER: GENERAL AGGREGATE $2,000,000 POLICY PRO □LOC JECT
OTHER:

PRODUCTS - COMP/OP AGG $2,000,000
$
L

AUTOMOBILE LIABILITY

ANY AUTO
OAUWTNOESDONLY �CHEAUDTOUSLED

HIRED NON-OWNED

AUTOS ONLY AUTOS ONLY
COMBINED SINGLE LIMIT (Ea accident) $
BODILY INJURY (Per person) $
BODILY INJURY (Per accident) $
PROPERTY DAMAGE (Per accident) $
$

B UMBRELLA LIAB X OCCUR

EXCESS LIAB CLAIMS-MADE
P00100118039402 8/1/2024 8/1/2025 EACH OCCURRENCE $3,000,000 X AGGREGATE $3,000,000
DED RETENTION$ $

A WORKERS COMPENSATION
ANYPROPRIETOR/PARTNER/EXECUTIVE AND EMPLOYERS' LIABILITY □Y/N OFFICER/MEMBEREXCLUDED?
(Mandatory in NH)
If yes, describe under DESCRIPTION OF OPERATIONS below
N/A
N WCC334410A 1/1/2025 1/1/2026 PER

STATUTE OTH- ER
E.L. EACH ACCIDENT $1,000,000
E.L. DISEASE - EA EMPLOYEE $1,000,000
E.L. DISEASE - POLICY LIMIT $1,000,000
C Excess Layer G72535522004 8/1/2024 8/1/2025 AGGREGATE $6,000,000 DESCRIPTION OF OPERATIONS/ LOCATIONS/ VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required) Evidence of Coverage.

Docusign Envelope ID: 7455AAD7-D77E-40CE-916A-F0D5C359D18E

CE RTI F ICATE OF LI ABI LI TY IN SU RAN CE DATE (MM/DD/YYYY) 07/30/2024
TH I S CE RTI F I CATE I S I SSU E D AS A M ATTE R OF I N F ORM ATI ON ON L Y AN D CON F E RS N O RI G H TS U P ON TH E CE RTI F I CATE H OL D E R. TH I S

CE RTI F I CATE D OE S N OT AF F I RM ATI VE L Y OR N E G ATI VE L Y AM E N D , E XTE N D OR AL TE R TH E COVE RAG E AF F ORD E D B Y TH E P OL I CI E S B E L OW. TH I S CE RTI F I CATE OF I N SU RAN CE D OE S N OT CON STI TU TE A CON TRACT B E TWE E N TH E I SSU I N G I N SU RE R(S), AU TH ORI IZE D REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.

I M P ORTAN T: I if th e certl ifl cate h ol d er l s an AD D I TI ON AL I N SU RE D , th e p ol l cy(l es) m u st h ave AD D I TI ON AL I N SU RE D p rovl sl on s or b e en d orsed .

I if SU B ROG ATI ON I S WAI VE D , su b ject to th e term s an d con d l tl on s oif th e p ol l cy, certal n p ol l cl es m ay req u l re an en d orsem en t. A statem en t on th l s certl ifl cate does n ot con ifer rl ig h ts to th e certl ifl cate h ol der l n l l eu oif su ch en dorsemen t(s).

P ROD U CE R CON TACT Jessr ca Gu zman N AME:

F l oren ce H arrr son State F arm Agen cy PH ON E 31 0-330-8220 (A/C, No, Ext):

FAX
(A/C, N o): 31 0-330-8220
L r cen se # 0F 73725 E-M AIL J essr ca. gu zm an . fxxp @statefarm . com ADDRESS:
227 S La Brea Ave. INSURER(S) AFFORDIN G COVERAGE N AIC # © n gl ewood CA 90301 I N SU RER A : State F arm Mu tu al Au tomobr l e © n su ran ce Comp an y 251 78 I N SU RE D INSURER B :

Al l Cr ty M an agem en t Servr ces, © N C. IN SURER C :

IN SURER D :
1 0440 Pr on eer Bl vd. Ste 5 IN SURER E :

San ta F e Sprr n gs CA 90670 I N SU RER F :

COVERAGES CERTI F I CATE N U M B ER: REVI SION N UMBER:

TH I S I S TO CE RTI F Y TH AT TH E P OL I CI E S OF I N SU RAN CE L I STE D B E L OW H AVE B E E N I SSU E D TO TH E I N SU RE D N AM E D AB OVE F OR TH E P OL I CY P E RI OD I N D I CATE D N OTWI TH STAN D I N G AN Y RE QU I RE M E N T\ TE RM OR CON D I TI ON OF AN Y CON TRACT OR OTH E R D OCU M E N T WI TH RE SP E CT TO WH I CH TH I S CE RTI F I CATE M AY B E I SSU E D OR M AY P E RTAI N \ TH E I N SU RAN CE AF F ORD E D B Y TH E P OL I CI E S D E SCRI B E D H E RE I N I S SU B J E CT TO AL L TH E TE RM S\

EXCLU SI ON S AN D CON DI TI ON S OF SU CH POLI CI ES LI MI TS SH OWN MAY H AVE BEEN REDU CED BY PAI D CLAI MS I N SR

LTR TYPE OF INSURANCE
AD D
I N SD
SU B

WVD POL I CY N UM BER

POLICY EFF
(MM/DD/YYYY)

POLICY EXP
(MM/DD/YYYY) L I M I TS
COM M ERCIAL GEN ERAL L IABILITY EACH OCCU RREN CE $

CLAI M S-M ADE OCCU R

DAMAGE TO REN TED
PREM I SES ( Ea occu rren ce) $
MED EXP (Any one person) $
PERSON AL & ADV I N JU RY $
GEN 1L AGGREGATE L I M I T APPLI ES PER4 GEN ERAL AGGREGATE $

PRO- POLI CY JECT LOC
OTH ER4
PRODU CTS - COMP/OP AGG $
$

AUTOMOBI LE LIABI LITY
642 21 91 -B01 -75B 08/01 /2024 08/01 /2025

COMB I N ED SI N GLE LI MI T
( Ea accK dent) $ 1 , 000, 000
AN Y AU TO BODI LY I N JU RY (Per person) $
OWN ED

AU TOS ON LY
HI RED

AU TOS ON LY

SCH EDU LED
AU TOS

NON -OWN ED

AU TOS ON LY
BODI LY I N JU RY (Per accK dent) $

PROPERTY DAMAGE
( Per accK dent) $
$

UMBRELLA LIAB

EXCESS LIAB
OCCU R

CLAI M S-M ADE
EACH OCCU RREN CE $
AGGREGATE $
DED RETEN TI ON $ $

WORNERS COMPEN SATION

AN D EMPLOYERSO LI ABI LI TY Y / N AN Y P ROP RI E TOR/P ARTN E R/E XE CU TI VE OF F I CER/MEMBER EXCLU DED?
(Man datory l n N H )
I f yes\ descrK be u nder
DESCRI PTI ON OF OPERATI ON S be^ o_
N / A
PER
STATU TE OTH- ER $
E L EACH ACCI DEN T $
E L DI SEASE - EA EMPLOYEE $
E L DI SEASE - POLI CY LI MI T $
DESCRI PTION OF OPERATION S / LOCATION S / VEH ICLES (ACORD 1 01 , Addl tl on al Remarks Sch edu l e, may be attach ed l if more space l s requ lred)

CE RTI F I CATE H OLD E R CAN CE L L ATI ON
ACORD 25 (201 6/03)
© 1 988-201 5 ACORD CORP ORATION . Al l rl igh ts reserved.

Th e ACORD n ame an d l oigo are reigl stered marks oif ACORD 1 001 486 1 32849 1 4 04-1 3-2022
Comp) eted by State Farm U n derwrÉtÉn g OperatÉon s. Î . sÉgn atu re É s req u É red , p ) ease re.er to con tact n ame ab ove.

SH OU L D AN Y OF TH E AB OVE D E SCRI B E D P OL I CI E S B E CAN CE L L E D B E F ORE

TH E E XP I RATI ON D ATE TH E RE OF , N OTI CE WI L L B E D E L I VE RE D I N ACCORD AN CE WI TH TH E POL I CY P ROVI SI ON S.

CA 90245
Crty of H ermosa Beach
1 31 5 Valley Drrve
H ermosa

City of Hermosa Beach | Page 1 of 3
Meeting Date: October 28, 2025
Staff Report No. 25-PD-015
Honorable Mayor and Members of the Hermosa Beach City Council

APPROVE A GRANT AGREEMENT WITH THE CALIFORNIA OFFICE OF TRAFFIC

SAFETY THROUGH THE NATIONAL HIGHWAY TRAFFIC SAFETY

ADMINISTRATION FOR THEIR SELECTIVE TRAFFIC ENFORCEMENT PROGRAM (Police Chief Landon Phillips)
Recommended Action:

Staff recommends City Council:

1. Approve a grant agreement of $80,000 from the California Office of Traffic Safety (OTS), through the National Highway Traffic Safety Administration, for their Selective Traffic Enforcement Program (STEP) (Attachment 1);

2. Add estimated revenue of $80,000 in the Grants Fund; and

3. Appropriate $80,000 in the Grants Fund for traffic enforcement operations to reduce alcohol-related accidents and other primary crash factors.

Executive Summary:

The Hermosa Beach Police Department (HBPD) received an OTS-STEP grant in September 2024 to fund several different traffic enforcement operations between October 2024 to September 2025. HBPD applied again for the OTS-STEP grant in January 2025 to continue these operations and was accepted in September 2025 for further funding.

Staff recommends City Council approve the grant agreement authorizing the acceptance of $80,000 from the California Office of Traffic Safety (OTS) to reduce alcohol-related accidents and other primary crash factors.

Background:

Every year, OTS offers a variety of grant funding to law enforcement agencies to support efforts to reduce alcohol-related and preventable crashes by enforcing traffic measures.

The OTS-STEP grant specifically focuses on reducing the numbers of persons killed and injured in crashes involving alcohol and other primary factors like distracted driving. OTS supports law enforcement strategies through impaired driving enforcement, enforcement operations focusing on primary crash factors; night-time seat belt enforcement; special enforcement operations encouraging motorcycle safety; enforcement and public awareness in areas with a high number of bicycle and pedestrian crashes; and educational program. In this recent past grant cycle (October 2024 – September 2025), the following operations were conducted by HBPD:
 Two (2) DUI/Driver License Checkpoints

City of Hermosa Beach | Page 2 of 3
 Ten (10) DUI Saturation Operations
 Twenty (20) Traffic Enforcement Operations
 Four (4) Distracted Driving Operations
 Five (5) Motorcycle Safety Operations
 Six (6) Pedestrian/Bicycle Enforcement Operations
HBPD would like to continue operating these different enforcement details for the community’s wellbeing and safety and successfully received another year of funding for the October 2025 – September 2026 grant year.

Discussion:

The Hermosa Beach Police Department is dedicated to promoting traffic safety by enforcing laws and educating the public on primary crash factors, such as distracted and impaired driving. With the increase in special events and the approaching holiday season, HBPD anticipates higher vehicle and pedestrian traffic.

In recent years, HBPD has noticed an increase in the number of traffic crashes that have occurred in the city. In 2022, HBPD responded to 491 calls for service regarding traffic crashes while in 2023, that number increased to 500 calls for service. Though the number of DUI arrests have decreased between 2022 to 2024, it continues to be a major issue in the City. With the recent OTS grant funding, additional officers were out in the field conducting different enforcement operations focused on distracted driving, e-bikes, traffic enforcement, and others mentioned above. In addition, officers were sent to sobrietyrelated training courses like DUI school and Drug Recognition Education classes to enhance their field skills. With this past year’s OTS Funding, HBPD was successful in implementing different operations and offering training opportunities for newer officers.

With the second year of grant funding, HBPD is dedicated to continuing their enforcement efforts in keeping Hermosa Beach safe.

The OTS-STEP grant outlines several objectives for HBPD during the grant period. The Grant Agreement (Attachment 1) includes the full list. Key objectives include:
 Training law enforcement personnel through National Highway Traffic Safety Administration programs such as Drug Recognition, Standardized Field Sobriety Testing, and Advanced Roadside Impaired Driving Enforcement.  Conducting highly publicized enforcement operations focused on distracted driving, motorcycle safety, and pedestrian/bicycle enforcement.  Conducting DUI/Driver’s License Checkpoints
 Providing educational presentations on traffic safety topics, including distracted driving, DUI, speed, bicycle and pedestrian safety, seat belts, and child passenger safety.

City of Hermosa Beach | Page 3 of 3
Staff recommends City Council approve the grant agreement, authorizing the acceptance of $80,00 from OTS to help reduce alcohol-related accidents and other primary crash factors.

Fiscal Impact:

The California Office of Traffic Safety (OTS) through the National Highway Traffic Safety Administration approved HBPD’s funding request, granting the City a total of $80,000 to reduce alcohol-related accidents and other primary crash factors.

If approved, estimated revenue of $80,000 and appropriation of $80,000 would be added in the Grants Fund to the FY 2025-26 Budget for the OTS grant funded above operations equipment.

Agreement Request
Request Amount FY 2025-26 Budget Dept.

Account #
Total Grant Agreement
Amount
$80,000 150-2114-4201 $80,000
Attachment:

OTS-STEP Grant Agreement
Respectfully Submitted by: Joanne Loeza, Management Analyst Concur: Garrett McDermott, Police Sergeant
Concur: Landon Phillips, Police Chief
Noted for Fiscal Impact: Henry Chao, Finance Manager
Concur: Brandon Walker, Administrative Services Director Legal Review: Jason Baltimore, Interim City Attorney
Approved: Steve Napolitano, Interim City Manager

10/6/2025 11:30:42 AM Page 1 of 19
State of California – Office of Traffic Safety

GRANT AGREEMENT

GRANT NUMBER
PT26129

1. GRANT TITLE
Selective Traffic Enforcement Program (STEP)

2. NAME OF AGENCY 3. Grant Period
Hermosa Beach From:

To:
10/01/2025
09/30/2026 4. AGENCY UNIT TO ADMINISTER GRANT
Hermosa Beach Police Department

5. GRANT DESCRIPTION
Best practice strategies will be conducted to reduce the number of persons killed and injured in crashes involving alcohol and other primary crash factors. The funded strategies may include impaired driving enforcement, enforcement operations focusing on primary crash factors, distracted driving, night-time seat belt enforcement, special enforcement operations encouraging motorcycle safety, enforcement and public awareness in areas with a high number of bicycle and pedestrian crashes, and educational programs. These strategies are designed to earn media attention thus enhancing the overall deterrent effect.

6. Federal Funds Allocated Under This Agreement Shall Not Exceed:

Allocation is contingent upon availability of federal funds. $80,000.00

7. TERMS AND CONDITIONS: The parties agree to comply with the terms and conditions of the following which are by this reference made a part of the Agreement:
 Schedule A – Problem Statement, Goals and Objectives and Method of Procedure  Schedule B – Detailed Budget Estimate and Sub-Budget Estimate (if applicable)  Schedule B-1 – Budget Narrative and Sub-Budget Narrative (if applicable)  Exhibit A – Certifications and Assurances
 Exhibit B* – OTS Grant Program Manual
 Exhibit C – Grant Electronic Management System (GEMS) Access *Items shown with an asterisk (*), are hereby incorporated by reference and made a part of this agreement as if attached hereto. These documents can be viewed at the OTS home web page under Grants: www.ots.ca.gov.

We, the officials named below, hereby swear under penalty of perjury under the laws of the State of California that we are duly authorized to legally bind the Grant recipient to the above described Grant terms and conditions.

IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto.

8. Approval Signatures
A. GRANT DIRECTOR B. AUTHORIZING OFFICIAL
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Landon Phillips
Chief of Police
[email protected]
(310) 318-0336
540 Pier Ave.

Hermosa Beach, CA 90254
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Steve Napolitano
Interim City Manager
[email protected]
(310) 318-0360
540 Pier Avenue
Hermosa Beach, CA 90254
(Signature) (Date) (Signature) (Date)
C. FISCAL OFFICIAL D. AUTHORIZING OFFICIAL OF OFFICE OF TRAFFIC SAFETY NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Brandon Walker
Administrative Services Director
[email protected]
(310) 318-0226
540 Pier Avenue
Hermosa Beach, CA 90254
NAME:

TITLE:

EMAIL:

PHONE:

ADDRESS:

Stephanie Dougherty
Director
[email protected]
(916) 509-3030
2208 Kausen Drive, Suite 300
Elk Grove, CA 95758
(Signature) (Date) (Signature) (Date)

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10. PROJECTED EXPENDITURES
FUND CFDA ITEM/APPROPRIATION F.Y. CHAPTER STATUTE PROJECTED

EXPENDITURES
405e DDL-26 20.616 0521-0890-101 2025 04/25 BA/25 $15,000.00 402PT-26 20.600 0521-0890-101 2025 04/25 BA/25 $20,000.00 164AL-26 20.608 0521-0890-101 2025 04/25 BA/25 $45,000.00

AGREEMENT
TOTAL $80,000.00

AMOUNT ENCUMBERED BY THIS DOCUMENT
I CERTIFY upon my own personal knowledge that the budgeted funds for the current budget year are available for the period and purpose of the expenditure stated above.
$80,000.00

PRIOR AMOUNT ENCUMBERED FOR THIS

AGREEMENT
$ 0.00
OTS ACCOUNTING OFFICER’S SIGNATURE DATE SIGNED TOTAL AMOUNT ENCUMBERED TO DATE $80,000.00
E. ACCOUNTING OFFICER OF OFFICE OF TRAFFIC SAFETY 9. SAM INFORMATION NAME: Carolyn Vu SAM #:

REGISTERED
ADDRESS:

CITY:

ZIP+4:

ESSHWE1VBMK8
1315 Valley Drive
Hermosa Beach
90254-3846
ADDRESS: 2208 Kausen Drive, Suite 300
Elk Grove, CA 95758

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State of California – Office of Traffic Safety

GRANT AGREEMENT
Schedule A

GRANT NUMBER
PT26129

1. PROBLEM STATEMENT
Describe the city, county, or jurisdiction this grant will impact.

The city of Hermosa Beach is a community with a residential population of 19,728 (US Census Bureau:
2021) and a daytime / nighttime population which can exceed 75,000. Located 21 miles southwest of Downtown Los Angeles, this urban area is a mix of single family and multi-unit housing and commercial establishments. The city of Hermosa beach is the home of several major tourist events which take place annually and include the following: Downtown Pier Lighting, several major Volleyball Tournaments, Concerts on the Beach, The Hermosa Beach Triathlon, Fiesta Hermosa and Octoberfest which are both street fairs that last several days. The city regularly attracts the Hollywood film industry; multiple feature films and television shows have been filmed in Hermosa Beach. Several sporting events for the LA Kings, Rams, Lakers and Dodgers have also taken place in Hermosa Beach. The city of Hermosa Beach has many bars, restaurants and shops in the downtown area which typically draw a large amount of traffic on weekends and holidays. The city sees an exceptionally large traffic influx during the 4th of July and New Years Holidays. The city is governed by a mayor and four City Council members. Law enforcement services have been provided since incorporation in 1907.

The Hermosa Beach Police Department has authorized 38 sworn positions. The Chief of Police is the highest authority within the department, which is organized into an office and two bureaus: the Office of the Chief of Police, The Administration / Investigation Bureau, and the Field Operations Bureau. Each bureau is headed by a Police Captain who is responsible for managing day to day operations.

Describe the problem(s) to be addressed, supported by current and relevant crash data. (most recent calendar year data/stats).

In recent years, the department has noticed an increase in the number of traffic crashes that have occurred in the city. In 2022, the Hermosa Beach Police Department responded to 491 calls for service regarding traffic crashes. In 2023, calls for service regarding traffic crashes increased to 500 calls for service. In 2024, we responded to 476 calls for service related to traffic crashes which is a slight decrease when compared to the previous years. Based on these figures, the city had a 4.92 percent decrease in the number of calls for service related to traffic crashes from 2022 to 2024.

The number of DUI arrests have decreased between 2022 to 2024. In 2022, the Hermosa Beach Police Department made 127 arrests for DUI. In 2023, the number of DUI arrests decreased to 110 drivers arrested for DUI. In 2024, the number of DUI arrests decreased to 77. Despite this decrease, DUI arrests continue to be a major issue in the city of Hermosa Beach. In the year 2024, our department was short staffed. Our staffing levels increased during the last two quarters of the year which is when a large portion of our DUI arrests were made. Our current OTS grant has allowed our agency to send several new officers to sobriety related training courses which included but not limited to DUI School, Data Master and PAS Device training courses and DRE school. In addition to training, the OTS grant allowed our agency to deploy more officers in our community specifically for traffic related education and enforcement. Our current OTS grant has been an extremely important tool in lowering the number of DUI arrests even more within our city by being proactive and allowing our department to have high visibility throughout the city. The Hermosa Beach Police Department has self-funded several of its own DUI checkpoints and DUI enforcement details in the past to help combat this issue.

Define the target population the grant intends to serve and how they are affected by the problem(s).

The City of Hermosa Beach anticipates an increase in vehicle and pedestrian traffic due to the number of growing annual special events hosted within the city as well as beach goers and tourists that visit the city during the warm weather months. Some of the special events alone can be in excess of 60,000 attendees. Los Angeles County Lifeguards have in recent summer months estimated our daily beach goer attendance to numbers in excess of 75,000. We also anticipate an increase in people visiting our city for dining out, shopping at stores, visiting the beach, visiting local bars etc.

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An increase in vehicle and pedestrian traffic has led the department's Traffic Team to actively seek solutions to increase traffic safety within the community. Funding will allow the department to conduct several traffic enforcement details to reduce the number of traffic crashes and victims by targeting drivers that are engaging in driving habits that have been identified as primary crash factors within the city. This includes:
speed, driving under the influence, unsafe turning movements, distracted drivers and more.

2. PERFORMANCE MEASURES
A. Goals:

1. Reduce the number of persons killed in traffic crashes.

2. Reduce the number of persons injured in traffic crashes.

3. Reduce the number of pedestrians killed in traffic crashes.

4. Reduce the number of pedestrians injured in traffic crashes.

5. Reduce the number of bicyclists killed in traffic crashes.

6. Reduce the number of bicyclists injured in traffic crashes.

7. Reduce the number of persons killed in alcohol-involved crashes.

8. Reduce the number of persons injured in alcohol-involved crashes.

9. Reduce the number of persons killed in drug-involved crashes.

10. Reduce the number of persons injured in drug-involved crashes.

11. Reduce the number of persons killed in alcohol/drug combo-involved crashes.

12. Reduce the number of persons injured in alcohol/drug combo-involved crashes.

13. Reduce the number of motorcyclists killed in traffic crashes.

14. Reduce the number of motorcyclists injured in traffic crashes.

15. Reduce hit & run fatal crashes.

16. Reduce hit & run injury crashes.

17. Reduce nighttime (2100 - 0259 hours) fatal crashes.

18. Reduce nighttime (2100 - 0259 hours) injury crashes.

B. Objectives: Target Number

1. Issue a news release announcing the kick-off of the grant by December 31st. The kick-off news releases and media advisories, alerts, and materials must be emailed to the OTS Public Information Officer at [email protected], and copied to your OTS Coordinator, for approval 7 days prior to the issuance date of the release.
1 2. Participate and report data (as required) in the following campaigns; Quarter 1:

National Pedestrian Safety Month, National Walk to School Day, National Teen Driver Safety Week, NHTSA Winter Mobilization; Quarter 3: National Distracted Driving Awareness Month, National Motorcycle Safety Month, National Bicycle Safety Month, National Click it or Ticket Mobilization; Quarter 4: National Speed Prevention Campaigns, NHTSA Summer Mobilization, National Child Passenger Safety Week, and California's Pedestrian Safety Month.
12 3. Develop (by December 31) and/or maintain a “DUI BOLO” program to notify patrol and traffic officers to be on the lookout for identified repeat DUI offenders with a suspended or revoked license as a result of DUI convictions. Updated DUI BOLOs should be distributed to patrol and traffic officers monthly. 12 4. Send law enforcement personnel to the NHTSA Standardized Field Sobriety Testing (SFST) (minimum 16 hours) POST-certified training. 2 5. Send law enforcement personnel to the NHTSA Advanced Roadside Impaired Driving Enforcement (ARIDE) 16 hour POST-certified training. 1 6. Send law enforcement personnel to the Drug Recognition Expert (DRE) training (classroom and field training must be completed).
2 7. Send law enforcement personnel to the DRE Recertification training. 1

8. Send law enforcement personnel to SFST Instructor training. 1

9. Conduct DUI/DL Checkpoints. A minimum of 1 checkpoint should be conducted during the NHTSA Winter Mobilization and 1 during the Summer Mobilization. To enhance the overall deterrent effect and promote high visibility, it is recommended the grantee issue an advance press release and conduct social media activity for each checkpoint. For combination DUI/DL checkpoints, departments should issue 2

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press releases that mention DL's will be checked at the DUI/DL checkpoint. Signs for DUI/DL checkpoints should read "DUI/Driver's License Checkpoint Ahead." OTS does not fund or support independent DL checkpoints. Only on an exception basis and with OTS pre-approval will OTS fund checkpoints that begin prior to 1800 hours. When possible, DUI/DL Checkpoint screeners should be DRE- or ARIDE-trained.

10. Conduct DUI Saturation Patrol operation(s). 8

11. Conduct Traffic Enforcement operation(s), including but not limited to, primary crash factor violations.
11 12. Conduct highly publicized Distracted Driving enforcement operation(s) targeting drivers using hand held cell phones and texting.
12 13. Conduct highly publicized Motorcycle Safety enforcement operation(s) in areas or during events with a high number of motorcycle incidents or crashes resulting from unsafe speed, DUI, following too closely, unsafe lane changes, improper turning, and other primary crash factor violations by motorcyclists and other drivers. 2 14. Conduct highly publicized pedestrian and/or bicycle enforcement operation(s) in areas or during events with a high number of pedestrian and/or bicycle crashes resulting from violations made by pedestrians, bicyclists, and drivers. 3 15. Conduct Traffic Safety educational presentation(s) with an effort to reach community members. Note: Presentation(s) may include topics such as distracted driving, DUI, speed, bicycle and pedestrian safety, seat belts and child passenger safety.
2 16. Conduct Know Your Limit campaigns with an effort to reach members of the community.
2 17. Participate in highly visible collaborative DUI Enforcement operations. 2

18. Participate in highly visible collaborative Traffic Enforcement operations. 2

19. Send law enforcement personnel to DUI Checkpoint Planning and Management training.
2 20. Send law enforcement personnel to a POST certified implicit bias training, such as; Implicit Bias and Community Policing, Principles Policing, or Beyond Bias. 1 3. METHOD OF PROCEDURE
A. Phase 1 – Program Preparation (1st Quarter of Grant Year)  The department will develop operational plans to implement the “best practice” strategies outlined in the objectives section.
 Conduct all training needed to implement the program, in the first quarter.  Purchase all grant related supplies and materials to implement the program, in the first quarter.  Items with a unit cost of $5,000 more (including tax and shipping) must comply with Buy America.  In order to develop/maintain the “DUI BOLOs,” research will be conducted to identify the “worst of the worst” repeat DUI offenders with a suspended or revoked license as a result of DUI convictions. The DUI BOLO may include the driver’s name, last known address, DOB, description, current license status, and the number of times suspended or revoked for DUI. DUI BOLOs should be updated and distributed to traffic and patrol officers at least monthly.  Implementation of the STEP grant activities will be accomplished by deploying personnel at high crash locations.

Media Requirements
Issue a news release approved by the OTS PIO announcing the kick-off of the grant by December 31 and after the grant is signed and executed, but no sooner than October 1, the start of the grant year. The kick-off release must be approved by the OTS PIO. If you are unable to meet the December 31 deadline to issue a kick-off press release, communicate reasons to your OTS grant coordinator and OTS PIO.

B. Phase 2 – Program Operations (Throughout Grant Year) Media Requirements
The following requirements are for all grant-related activities:
 Send all media advisories, alerts, videos, graphics, artwork, posters, radio/PSA/video scripts, storyboards, digital and/or print educational materials for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator. Optimum lead time would

10/6/2025 11:30:42 AM Page 6 of 19
be 7 days before the scheduled release but at least 3 business days prior to the scheduled release date for review and approval is appreciated.
 Send all PowerPoint presentations, online presentations and trainings for grant-related activities to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator. Certified training courses are EXEMPT from the approval process.
 The OTS PIO is responsible for the approval of the design and content of materials. The agency understands OTS PIO approval is not authorizing approval of budget expenditure or cost. Any cost approvals must come from the OTS grant coordinator.  Pre-approval is not required when using any OTS-supplied template for media advisories, news releases, social media graphics, videos or posts, or any other OTS-supplied educational material.

However, copy the OTS PIO at [email protected] and your OTS grant coordinator when any material is distributed to the media and public, such as a news release, educational material, or link to social media post.
 If an OTS-supplied template, educational material, social media graphic, post or video is substantially changed, the changes shall be sent to the OTS PIO at [email protected] for approval and copy your OTS grant coordinator.
 News releases, social media posts and alerts on platforms such as NextDoor and Nixle reporting immediate and time-sensitive grant activities (e.g. enforcement operations, day of event highlights or announcements, event invites) are EXEMPT from the OTS PIO approval process.

The OTS PIO and your OTS grant coordinator should still be notified when the grant-related activity is happening (e.g. car seat checks, bicycle rodeos, community presentations, DUI checkpoints, etc.).
 Enforcement activities such as warrant and probation sweeps, court stings, etc. that are embargoed or could impact operations by publicizing in advance are EXEMPT from the PIO approval process. However, announcements and results of activities should still be copied to the OTS PIO at [email protected] and your OTS grant coordinator with the embargoed date and time or with “INTERNAL ONLY: DO NOT RELEASE” message in subject line of email.  Any earned or paid media campaigns for TV, radio, digital or social media that are part of a specific grant objective, using OTS grant funds, or designed and developed using contractual services by a subgrantee, requires prior approval.
 Social media posts highlighting state or national traffic safety campaigns (Distracted Driving Month, Motorcycle Safety Awareness Month, etc.), enforcement operations (DUI checkpoints, etc.), or any other grant-related activity such as Bicycle rodeos, presentations, or events, are highly encouraged but do not require prior approval.
 Submit a draft or rough-cut of all digital, printed, recorded or video material (brochures, posters, scripts, artwork, trailer graphics, digital graphics, social posts connected to an earned or paid media campaign grant objective) to the OTS PIO at [email protected] and copy your OTS grant coordinator for approval prior to the production or duplication.  Use the following standard language in all press, media, and printed materials, space permitting:

Funding for this program was provided by a grant from the California Office of Traffic Safety, through the National Highway Traffic Safety Administration.  Space permitting, include the OTS logo on all grant-funded print materials, graphics and paid or earned social media campaign grant objective; consult the OTS PIO and copy your OTS grant coordinator for specifics, format-appropriate logos, or if space does not permit the use of the OTS logo.
 Email the OTS PIO at [email protected] and copy your OTS grant coordinator at least 21 days in advance, or when first confirmed, a short description of any significant grant-related traffic safety event or program, particularly events that are highly publicized beforehand with anticipated media coverage so OTS has sufficient notice to arrange for attendance and/or participation in the event.

If unable to attend, email the OTS PIO and coordinator brief highlights and/or results, including any media coverage (broadcast, digital, print) of event within 7 days following significant grantrelated event or program. Media and program highlights are to be reflected in QPRs.  Any news releases, work plans, scripts, storyboards, artwork, graphics, videos or any educational or informational materials that received OTS PIO approval in a prior grant year needs to be resubmitted for approval in the current grant year.
 For additional guidance, refer to the OTS Grants Materials Approval Process Guidelines and OTS Grants Media Approval Process FAQs on the OTS website.

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 Contact the OTS PIO or your OTS grant coordinator for consultation when changes from any of the above requirements might be warranted.

C. Phase 3 – Data Collection & Reporting (Throughout Grant Year)

1. Prepare and submit grant claim invoices (due January 30, April 30, July 30, and October 30)

2. Prepare and submit Quarterly Performance Reports (QPR) (due January 30, April 30, July 30, and October 30)
 Collect and report quarterly, appropriate data that supports the progress of goals and objectives.  Provide a brief list of activity conducted, procurement of grant-funded items, and significant media activities. Include status of grant-funded personnel, status of contracts, challenges, or special accomplishments.
 Provide a brief summary of quarterly accomplishments and explanations for objectives not completed or plans for upcoming activities.
 Collect, analyze and report statistical data relating to the grant goals and objectives.

4. METHOD OF EVALUATION
Using the data compiled during the grant, the Grant Director will complete the “Final Evaluation” section in the fourth/final Quarterly Performance Report (QPR). The Final Evaluation should provide a brief summary of the grant’s accomplishments, challenges and significant activities. This narrative should also include whether goals and objectives were met, exceeded, or an explanation of why objectives were not completed.

5. ADMINISTRATIVE SUPPORT
This program has full administrative support, and every effort will be made to continue the grant activities after grant conclusion.

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State of California – Office of Traffic Safety

GRANT AGREEMENT
Schedule B

GRANT NUMBER
PT26129

FUND NUMBER CATALOG

NUMBER (CFDA)

FUND DESCRIPTION TOTAL AMOUNT
405e DDL-26 20.616 Distracted Driving Laws $15,000.00
402PT-26 20.600 State and Community Highway
Safety
$20,000.00
164AL-26 20.608 Minimum Penalties for Repeat
Offenders for Driving While
Intoxicated
$45,000.00

COST CATEGORY FUND
NUMBER

UNIT COST OR
RATE

UNITS TOTAL COST TO
GRANT
A. PERSONNEL COSTS
Straight Time
$0.00
Overtime
DUI/DL Checkpoints 164AL-26 $10,000.00 2 $20,000.00
DUI Saturation Patrols 164AL-26 $2,000.00 8 $16,000.00
Collaborative DUI Enforcement 164AL-26 $1,100.00 2 $2,200.00 Know Your Limit 164AL-26 $900.00 2 $1,800.00
Traffic Enforcement 402PT-26 $975.00 11 $10,725.00
Motorcycle Safety Enforcement 402PT-26 $900.00 2 $1,800.00 Pedestrian and Bicycle Enforcement 402PT-26 $900.00 3 $2,700.00 Collaborative Traffic Enforcement 402PT-26 $450.00 2 $900.00 Traffic Safety Educational Presentations 402PT-26 $400.00 2 $800.00 Distracted Driving Enforcement 405e DDL26$1,250.00 12 $15,000.00 Category Sub-Total $71,925.00
B. TRAVEL EXPENSES
In State Travel 402PT-26 $3,075.00 1 $3,075.00
$0.00
Category Sub-Total $3,075.00
C. CONTRACTUAL SERVICES
$0.00
Category Sub-Total $0.00
D. EQUIPMENT
$0.00
Category Sub-Total $0.00
E. OTHER DIRECT COSTS
DUI Checkpoint Supplies 164AL-26 $3,000.00 1 $3,000.00
Phlebotomist 164AL-26 $1,000.00 2 $2,000.00
Category Sub-Total $5,000.00
F. INDIRECT COSTS
$0.00
Category Sub-Total $0.00
GRANT TOTAL $80,000.00

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10/6/2025 11:30:42 AM Page 10 of 19
State of California – Office of Traffic Safety

GRANT AGREEMENT
Schedule B-1

GRANT NUMBER
PT26129

BUDGET NARRATIVE

PERSONNEL COSTS
DUI/DL Checkpoints - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

DUI Saturation Patrols - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Collaborative DUI Enforcement - Overtime for grant funded Collaborative DUI Enforcement operations conducted by appropriate department personnel
Know Your Limit - Overtime for grant funded traffic safety presentations or campaigns conducted by appropriate department personnel.

Traffic Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Motorcycle Safety Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Pedestrian and Bicycle Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

Collaborative Traffic Enforcement - Overtime for grant funded Collaborative Traffic Enforcement operations conducted by appropriate department personnel
Traffic Safety Educational Presentations - Overtime for grant funded traffic safety educational presentations conducted by appropriate department personnel.

Distracted Driving Enforcement - Overtime for grant funded law enforcement operations conducted by appropriate department personnel.

TRAVEL EXPENSES
In State Travel - Costs are included for appropriate staff to attend conferences and training events supporting the grant goals and objectives and/or traffic safety. Anticipated travel may include the OTS Traffic Safety Law Enforcement Forum. Local mileage for grant activities and meetings is included. All conferences, seminars or training not specifically identified in the Budget Narrative must be approved by OTS. All travel claimed must be at the agency approved rate. Per Diem may not be claimed for meals provided at conferences when registration fees are paid with OTS grant funds.

CONTRACTUAL SERVICES
-

EQUIPMENT
-

OTHER DIRECT COSTS
DUI Checkpoint Supplies - On-scene supplies needed to conduct sobriety checkpoints. Costs may include 28" traffic cones, MUTCD compliant traffic signs, MUTCD compliant high visibility vests (maximum of 10), traffic counters (maximum of 2), generator, gas for generators, lighting, reflective banners, electronic flares, PAS Device Supplies, PAS Calibration Supplies, heater, propane for heaters, fan, anti-fatigue mats, and canopies. Additional items may be purchased if approved by OTS. The cost of food and beverages will not be reimbursed.

Phlebotomist - To draw and collect blood samples during OTS funded grant operations from suspected DUI drivers on scene as evidence in support of DUI convictions in a court of law.

INDIRECT COSTS
-

STATEMENTS/DISCLAIMERS
There will be no program income generated from this grant.

Nothing in this “agreement” shall be interpreted as a requirement, formal or informal, that a particular law enforcement officer issue a specified or predetermined number of citations in pursuance of the goals and objectives here under.

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Appendix A to Part 1300—Certifications and Assurances for Highway Safety Grants (23 U.S.C. Chapter 4 or Section 1906, Public Law 109-59, as amended by Section 25024, Public Law 117- 58)
The officials named on the grant agreement, certify by way of signature on the grant agreement signature page, that the Grantee Agency complies with all applicable Federal statutes, regulations, and directives and State rules, guidelines, policies, and laws in effect with respect to the periods for which it receives grant funding.

Applicable provisions include, but are not limited to, the following:

GENERAL REQUIREMENTS
The State will comply with applicable statutes and regulations, including but not limited to:
 23 U.S.C. Chapter 4—Highway Safety Act of 1966, as amended;  Sec. 1906, Public Law 109-59, as amended by Sec. 25024, Public Law 117-58;  23 CFR part 1300—Uniform Procedures for State Highway Safety Grant Programs;  2 CFR part 200—Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards;
 2 CFR part 1201—Department of Transportation, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards.

NONDISCRIMINATION
(applies to subrecipients as well as States)
The State highway safety agency [and its subrecipients] will comply with all Federal statutes and implementing regulations relating to nondiscrimination (“Federal Nondiscrimination Authorities”). These include but are not limited to:
 Title VI of the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq., 78 stat. 252), (prohibits discrimination on the basis of race, color, national origin);
 49 CFR part 21 (entitled Non-discrimination in Federally-Assisted Programs of the Department of Transportation—Effectuation of Title VI of the Civil Rights Act of 1964);  28 CFR 50.3 (U.S. Department of Justice Guidelines for Enforcement of Title VI of the Civil Rights Act of 1964);
 The Uniform Relocation Assistance and Real Property Acquisition Policies Act of 1970, (42 U.S.C. 4601), (prohibits unfair treatment of persons displaced or whose property has been acquired because of Federal or Federal-aid programs and projects);
 Federal-Aid Highway Act of 1973, (23 U.S.C. 324 et seq.), and Title IX of the Education Amendments of 1972, as amended (20 U.S.C. 1681-1683 and 1685-1686) (prohibit discrimination on the basis of sex);
 Section 504 of the Rehabilitation Act of 1973, (29 U.S.C. 794 et seq.), as amended, (prohibits discrimination on the basis of disability) and 49 CFR part 27;  The Age Discrimination Act of 1975, as amended, (42 U.S.C. 6101 et seq.), (prohibits discrimination on the basis of age);
 The Civil Rights Restoration Act of 1987, (Pub. L. 100-209), (broadens scope, coverage, and applicability of Title VI of the Civil Rights Act of 1964, The Age Discrimination Act of 1975 and Section 504 of the Rehabilitation Act of 1973, by expanding the definition of the terms “programs or activities” to include all of the programs or activities of the
Federal aid recipients, subrecipients and contractors, whether such programs or activities are Federallyfunded or not);  Titles II and III of the Americans with Disabilities Act (42 U.S.C. 12131-12189) (prohibits discrimination on the basis of disability in the operation of public entities, public and private transportation systems, places of public accommodation, and certain testing) and 49 CFR parts 37 and 38
State of California – Office of Traffic Safety

GRANT AGREEMENT
Exhibit A

GRANT NUMBER
PT26129

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The preceding statutory and regulatory cites hereinafter are referred to as the “Acts” and “Regulations,” respectively.

GENERAL ASSURANCES
In accordance with the Acts, the Regulations, and other pertinent directives, circulars, policy, memoranda, and/or guidance, the Recipient hereby gives assurance that it will promptly take any measures necessary to ensure that:
“No person in the United States shall, on the grounds of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be otherwise subjected to discrimination under any program or activity, for which the Recipient receives Federal financial assistance from DOT, including NHTSA.”
The Civil Rights Restoration Act of 1987 clarified the original intent of Congress, with respect to Title VI of the Civil Rights Act of 1964 and other non-discrimination requirements (the Age Discrimination Act of 1975, and Section 504 of the Rehabilitation Act of 1973), by restoring the broad, institutional-wide scope and coverage of these nondiscrimination statutes and requirements to include all programs and activities of the Recipient, so long as any portion of the program is Federally assisted.

SPECIFIC ASSURANCES
More specifically, and without limiting the above general Assurance, the Recipient agrees with and gives the following Assurances with respect to its Federally assisted Highway Safety Grant Program:

1. The Recipient agrees that each “activity,” “facility,” or “program,” as defined in 49 CFR part 21 will be (with regard to an “activity”) facilitated, or will be (with regard to a “facility”) operated, or will be (with regard to a “program”) conducted in compliance with all requirements imposed by, or pursuant to the Acts and the Regulations.

2. The Recipient will insert the following notification in all solicitations for bids, Requests For Proposals for work, or material subject to the Acts and the Regulations made in connection with all Highway Safety Grant Programs and, in adapted form, in all proposals for negotiated agreements regardless of funding source:
“The [name of Recipient], in accordance with the provisions of Title VI of the Civil Rights Act of 1964 (78 Stat. 252, 42 U.S.C 2000d to 2000d-4) and the Regulations, hereby notifies all bidders that it will affirmatively ensure that in any contract entered into pursuant to this advertisement, disadvantaged business enterprises will be afforded full and fair opportunity to submit bids in response to this invitation and will not be discriminated against on the grounds of race, color, or national origin in consideration for an award.”

3. The Recipient will insert the clauses of appendix A and E of this Assurance (also referred to as DOT order 1050.2A) [1]in every contract or agreement subject to the Acts and the Regulations.

4. The Recipient will insert the clauses of appendix B of DOT Order 1050.2A, as a covenant running with the land, in any deed from the United States effecting or recording a transfer of real property, structures, use, or improvements thereon or interest therein to a Recipient.

5. That where the Recipient receives Federal financial assistance to construct a facility, or part of a facility, the Assurance will extend to the entire facility and facilities operated in connection therewith.

6. That where the Recipient receives Federal financial assistance in the form of, or for the acquisition of, real property or an interest in real property, the Assurance will extend to rights to space on, over, or under such property.

7. That the Recipient will include the clauses set forth in appendix C and appendix D of this DOT Order 1050.2A, as a covenant running with the land, in any future deeds, leases, licenses, permits, or similar instruments entered into by the Recipient with other parties:
a. for the subsequent transfer of real property acquired or improved under the applicable activity, project, or program; and
b. for the construction or use of, or access to, space on, over, or under real property acquired or improved under the applicable activity, project, or program.

8. That this Assurance obligates the Recipient for the period during which Federal financial assistance is extended to the program, except where the Federal financial assistance is to provide, or is in the

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form of, personal property, or real property, or interest therein, or structures or improvements thereon, in which case the Assurance obligates the Recipient, or any transferee for the longer of the following periods:
a. the period during which the property is used for a purpose for which the Federal financial assistance is extended, or for another purpose involving the provision of similar services or benefits; or
b. the period during which the Recipient retains ownership or possession of the property.

9. The Recipient will provide for such methods of administration for the program as are found by the Secretary of Transportation or the official to whom he/she delegates specific authority to give reasonable guarantee that it, other recipients, sub-recipients, sub- grantees, contractors, subcontractors, consultants, transferees, successors in interest, and other participants of Federal financial assistance under such program will comply with all requirements imposed or pursuant to the Acts, the Regulations, and this Assurance.

10. The Recipient agrees that the United States has a right to seek judicial enforcement with regard to any matter arising under the Acts, the Regulations, and this Assurance.

By signing this ASSURANCE, the State highway safety agency also agrees to comply (and require any subrecipients, sub-grantees, contractors, successors, transferees, and/or assignees to comply) with all applicable provisions governing NHTSA's access to records, accounts, documents, information, facilities, and staff. You also recognize that you must comply with any program or compliance reviews, and/or complaint investigations conducted by NHTSA. You must keep records, reports, and submit the material for review upon request to NHTSA, or its designee in a timely, complete, and accurate way. Additionally, you must comply with all other reporting, data collection, and evaluation requirements, as prescribed by law or detailed in program guidance.

The State highway safety agency gives this ASSURANCE in consideration of and for obtaining any Federal grants, loans, contracts, agreements, property, and/or discounts, or other Federal-aid and Federal financial assistance extended after the date hereof to the recipients by the U.S. Department of Transportation under the Highway Safety Grant Program. This ASSURANCE is binding on the State highway safety agency, other recipients, sub-recipients, sub-grantees, contractors, subcontractors and their subcontractors', transferees, successors in interest, and any other participants in the Highway Safety Grant Program. The person(s) signing below is/are authorized to sign this ASSURANCE on behalf of the Recipient.

THE DRUG-FREE WORKPLACE ACT OF 1988 (41 U.S.C. 8103)
The Subgrantee will provide a drug-free workplace by:
a. Publishing a statement notifying employees that the unlawful manufacture, distribution, dispensing, possession or use of a controlled substance is prohibited in the grantee's workplace, and specifying the actions that will be taken against employees for violation of such prohibition; b. Establishing a drug-free awareness program to inform employees about:

1. The dangers of drug abuse in the workplace;

2. The grantee's policy of maintaining a drug-free workplace;

3. Any available drug counseling, rehabilitation, and employee assistance programs;

4. The penalties that may be imposed upon employees for drug violations occurring in the workplace;

5. Making it a requirement that each employee engaged in the performance of the grant be given a copy of the statement required by paragraph (a); c. Notifying the employee in the statement required by paragraph (a) that, as a condition of employment under the grant, the employee will—

1. Abide by the terms of the statement;

2. Notify the employer of any criminal drug statute conviction for a violation occurring in the workplace no later than five days after such conviction; d. Notifying the agency within ten days after receiving notice under subparagraph (c)(2) from an employee or otherwise receiving actual notice of such conviction; e. Taking one of the following actions, within 30 days of receiving notice under subparagraph (c)(2), with respect to any employee who is so convicted—

1. Taking appropriate personnel action against such an employee, up to and including termination;

2. Requiring such employee to participate satisfactorily in a drug abuse assistance or

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rehabilitation program approved for such purposes by a Federal, State, or local health, law enforcement, or other appropriate agency;
f. Making a good faith effort to continue to maintain a drug-free workplace through implementation of all of the paragraphs above.

POLITICAL ACTIVITY (HATCH ACT)
(applies to subrecipients as well as States)
The State will comply with provisions of the Hatch Act (5 U.S.C. 1501-1508), which limits the political activities of employees whose principal employment activities are funded in whole or in part with Federal funds.

CERTIFICATION REGARDING FEDERAL LOBBYING
(applies to subrecipients as well as States)

CERTIFICATION FOR CONTRACTS, GRANTS, LOANS, AND COOPERATIVE AGREEMENTS The undersigned certifies, to the best of his or her knowledge and belief, that:

1. No Federal appropriated funds have been paid or will be paid, by or on behalf of the undersigned, to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with the awarding of any Federal contract, the making of any Federal grant, the making of any Federal loan, the entering into of any cooperative agreement, and the extension, continuation, renewal, amendment, or modification of any Federal contract, grant, loan, or cooperative agreement;

2. If any funds other than Federal appropriated funds have been paid or will be paid to any person for influencing or attempting to influence an officer or employee of any agency, a Member of Congress, an officer or employee of Congress, or an employee of a Member of Congress in connection with this Federal contract, grant, loan, or cooperative agreement, the undersigned shall complete and submit Standard Form-LLL, “Disclosure Form to Report Lobbying,” in accordance with its instructions;

3. The undersigned shall require that the language of this certification be included in the award documents for all sub-awards at all tiers (including subcontracts, subgrants, and contracts under grant, loans, and cooperative agreements) and that all subrecipients shall certify and disclose accordingly.

This certification is a material representation of fact upon which reliance was placed when this transaction was made or entered into. Submission of this certification is a prerequisite for making or entering into this transaction imposed by section 1352, title 31, U.S. Code. Any person who fails to file the required certification shall be subject to a civil penalty of not less than $10,000 and not more than $100,000 for each such failure.

RESTRICTION ON STATE LOBBYING
(applies to subrecipients as well as States)
None of the funds under this program will be used for any activity specifically designed to urge or influence a State or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any State or local legislative body. Such activities include both direct and indirect (e.g., “grassroots”) lobbying activities, with one exception. This does not preclude a State official whose salary is supported with NHTSA funds from engaging in direct communications with State or local legislative officials, in accordance with customary State practice, even if such communications urge legislative officials to favor or oppose the adoption of a specific pending legislative proposal.

CERTIFICATION REGARDING DEBARMENT AND SUSPENSION
(applies to subrecipients as well as States)

INSTRUCTIONS FOR PRIMARY TIER PARTICIPANT CERTIFICATION (STATES)

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1. By signing and submitting this proposal, the prospective primary tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200.

2. The inability of a person to provide the certification required below will not necessarily result in denial of participation in this covered transaction. The prospective primary tier participant shall submit an explanation of why it cannot provide the certification set out below. The certification or explanation will be considered in connection with the department or agency's determination whether to enter into this transaction. However, failure of the prospective primary tier participant to furnish a certification or an explanation shall disqualify such person from participation in this transaction.

3. The certification in this clause is a material representation of fact upon which reliance was placed when the department or agency determined to enter into this transaction. If it is later determined that the prospective primary tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency may terminate this transaction for cause or default or may pursue suspension or debarment.

4. The prospective primary tier participant shall provide immediate written notice to the department or agency to which this proposal is submitted if at any time the prospective primary tier participant learns its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

5. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the department or agency to which this proposal is being submitted for assistance in obtaining a copy of those regulations.

6. The prospective primary tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency entering into this transaction.

7. The prospective primary tier participant further agrees by submitting this proposal that it will include the clause titled “Instructions for Lower Tier Participant Certification” including the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transaction,” provided by the department or agency entering into this covered transaction, without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200.

8. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart

9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website
( https://www.sam.gov/).

9. Nothing contained in the foregoing shall be construed to require establishment of a system of records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

10. Except for transactions authorized under paragraph 6 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency may terminate the transaction for cause or default.

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, AND OTHER RESPONSIBILITY MATTERS—PRIMARY TIER

COVERED TRANSACTIONS

1. The prospective primary tier participant certifies to the best of its knowledge and belief, that it and

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its principals:
a. Are not presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency;
b. Have not within a three-year period preceding this proposal been convicted of or had a civil judgment rendered against them for commission of fraud or a criminal offense in connection with obtaining, attempting to obtain, or performing a public (Federal, State, or local) transaction or contract under a public transaction; violation of Federal or State antitrust statutes or commission of embezzlement, theft, forgery, bribery, falsification or destruction of records, making false statements, or receiving stolen property; c. Are not presently indicted for or otherwise criminally or civilly charged by a governmental entity (Federal, State, or local) with commission of any of the offenses enumerated in paragraph (1)(b) of this certification; and d. Have not within a three-year period preceding this application/proposal had one or more public transactions (Federal, State, or local) terminated for cause or default.

2. Where the prospective primary tier participant is unable to certify to any of the Statements in this certification, such prospective participant shall attach an explanation to this proposal.

INSTRUCTIONS FOR LOWER TIER PARTICIPANT CERTIFICATION

1. By signing and submitting this proposal, the prospective lower tier participant is providing the certification set out below and agrees to comply with the requirements of 2 CFR parts 180 and 1200.

2. The certification in this clause is a material representation of fact upon which reliance was placed when this transaction was entered into. If it is later determined that the prospective lower tier participant knowingly rendered an erroneous certification, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment.

3. The prospective lower tier participant shall provide immediate written notice to the person to which this proposal is submitted if at any time the prospective lower tier participant learns that its certification was erroneous when submitted or has become erroneous by reason of changed circumstances.

4. The terms covered transaction, civil judgment, debarment, suspension, ineligible, participant, person, principal, and voluntarily excluded, as used in this clause, are defined in 2 CFR parts 180 and 1200. You may contact the person to whom this proposal is submitted for assistance in obtaining a copy of those regulations.

5. The prospective lower tier participant agrees by submitting this proposal that, should the proposed covered transaction be entered into, it shall not knowingly enter into any lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, debarred, suspended, declared ineligible, or voluntarily excluded from participation in this covered transaction, unless authorized by the department or agency with which this transaction originated.

6. The prospective lower tier participant further agrees by submitting this proposal that it will include the clause titled “Instructions for Lower Tier Participant Certification” including the “Certification Regarding Debarment, Suspension, Ineligibility and Voluntary Exclusion—Lower Tier Covered Transaction,” without modification, in all lower tier covered transactions and in all solicitations for lower tier covered transactions and will require lower tier participants to comply with 2 CFR parts 180 and 1200.

7. A participant in a covered transaction may rely upon a certification of a prospective participant in a lower tier covered transaction that it is not proposed for debarment under 48 CFR part 9, subpart

9.4, debarred, suspended, ineligible, or voluntarily excluded from the covered transaction, unless it knows that the certification is erroneous. A participant is responsible for ensuring that its principals are not suspended, debarred, or otherwise ineligible to participate in covered transactions. To verify the eligibility of its principals, as well as the eligibility of any prospective lower tier participants, each participant may, but is not required to, check the System for Award Management Exclusions website
( https://www.sam.gov/).

8. Nothing contained in the foregoing shall be construed to require establishment of a system of

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records in order to render in good faith the certification required by this clause. The knowledge and information of a participant is not required to exceed that which is normally possessed by a prudent person in the ordinary course of business dealings.

9. Except for transactions authorized under paragraph 5 of these instructions, if a participant in a covered transaction knowingly enters into a lower tier covered transaction with a person who is proposed for debarment under 48 CFR part 9, subpart 9.4, suspended, debarred, ineligible, or voluntarily excluded from participation in this transaction, in addition to other remedies available to the Federal Government, the department or agency with which this transaction originated may pursue available remedies, including suspension or debarment.

CERTIFICATION REGARDING DEBARMENT, SUSPENSION, INELIGIBILITY AND VOLUNTARY EXCLUSION—LOWER TIER

COVERED TRANSACTIONS

1. The prospective lower tier participant certifies, by submission of this proposal, that neither it nor its principals is presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participating in covered transactions by any Federal department or agency.

2. Where the prospective lower tier participant is unable to certify to any of the statements in this certification, such prospective participant shall attach an explanation to this proposal.

BUY AMERICA
(applies to subrecipients as well as States)
The State and each subrecipient will comply with the Buy America requirement (23 U.S.C. 313) when purchasing items using Federal funds. Buy America requires a State, or subrecipient, to purchase with Federal funds only steel, iron and manufactured products produced in the United States, unless the Secretary of Transportation determines that such domestically produced items would be inconsistent with the public interest, that such materials are not reasonably available and of a satisfactory quality, or that inclusion of domestic materials will increase the cost of the overall project contract by more than 25 percent. In order to use Federal funds to purchase foreign produced items, the State must submit a waiver request that provides an adequate basis and justification for approval by the Secretary of Transportation.

CERTIFICATION ON CONFLICT OF INTEREST
(applies to subrecipients as well as States)

GENERAL REQUIREMENTS
No employee, officer, or agent of a State or its subrecipient who is authorized in an official capacity to negotiate, make, accept, or approve, or to take part in negotiating, making, accepting, or approving any subaward, including contracts or subcontracts, in connection with this grant shall have, directly or indirectly, any financial or personal interest in any such subaward. Such a financial or personal interest would arise when the employee, officer, or agent, any member of his or her immediate family, his or her partner, or an organization which employs or is about to employ any of the parties indicated herein, has a financial or personal interest in or a tangible personal benefit from an entity considered for a subaward. Based on this policy:

1. The recipient shall maintain a written code or standards of conduct that provide for disciplinary actions to be applied for violations of such standards by officers, employees, or agents. a. The code or standards shall provide that the recipient's officers, employees, or agents may neither solicit nor accept gratuities, favors, or anything of monetary value from present or potential subawardees, including contractors or parties to subcontracts. b. The code or standards shall establish penalties, sanctions, or other disciplinary actions for violations, as permitted by State or local law or regulations.

2. The recipient shall maintain responsibility to enforce the requirements of the written code or standards of conduct.

DISCLOSURE REQUIREMENTS

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No State or its subrecipient, including its officers, employees, or agents, shall perform or continue to perform under a grant or cooperative agreement, whose objectivity may be impaired because of any related past, present, or currently planned interest, financial or otherwise, in organizations regulated by NHTSA or in organizations whose interests may be substantially affected by NHTSA activities. Based on this policy:

1. The recipient shall disclose any conflict of interest identified as soon as reasonably possible, making an immediate and full disclosure in writing to NHTSA. The disclosure shall include a description of the action which the recipient has taken or proposes to take to avoid or mitigate such conflict.

2. NHTSA will review the disclosure and may require additional relevant information from the recipient.

If a conflict of interest is found to exist, NHTSA may (a) terminate the award, or (b) determine that it is otherwise in the best interest of NHTSA to continue the award and include appropriate provisions to mitigate or avoid such conflict.

3. Conflicts of interest that require disclosure include all past, present, or currently planned organizational, financial, contractual, or other interest(s) with an organization regulated by NHTSA or with an organization whose interests may be substantially affected by NHTSA activities, and which are related to this award. The interest(s) that require disclosure include those of any recipient, affiliate, proposed consultant, proposed subcontractor, and key personnel of any of the above. Past interest shall be limited to within one year of the date of award. Key personnel shall include any person owning more than a 20 percent interest in a recipient, and the officers, employees or agents of a recipient who are responsible for making a decision or taking an action under an award where the decision or action can have an economic or other impact on the interests of a regulated or affected organization.

PROHIBITION ON USING GRANT FUNDS TO CHECK FOR HELMET USAGE (applies to subrecipients as well as States)
The State and each subrecipient will not use 23 U.S.C. Chapter 4 grant funds for programs to check helmet usage or to create checkpoints that specifically target motorcyclists.

POLICY ON SEAT BELT USE
In accordance with Executive Order 13043, Increasing Seat Belt Use in the United States, dated April 16, 1997, the Grantee is encouraged to adopt and enforce on-the-job seat belt use policies and programs for its employees when operating company-owned, rented, or personally-owned vehicles. The National Highway Traffic Safety Administration (NHTSA) is responsible for providing leadership and guidance in support of this Presidential initiative. For information and resources on traffic safety programs and policies for employers, please contact the Network of Employers for Traffic Safety (NETS), a public-private partnership dedicated to improving the traffic safety practices of employers and employees. You can download information on seat belt programs, costs of motor vehicle crashes to employers, and other traffic safety initiatives at www.trafficsafety.org. The NHTSA website ( www.nhtsa.gov) also provides information on statistics, campaigns, and program evaluations and references.

POLICY ON BANNING TEXT MESSAGING WHILE DRIVING
In accordance with Executive Order 13513, Federal Leadership On Reducing Text Messaging While Driving, and DOT Order 3902.10, Text Messaging While Driving, States are encouraged to adopt and enforce workplace safety policies to decrease crashes caused by distracted driving, including policies to ban text messaging while driving company-owned or rented vehicles, Government-owned, leased or rented vehicles, or privately-owned vehicles when on official Government business or when performing any work on or behalf of the Government. States are also encouraged to conduct workplace safety initiatives in a manner commensurate with the size of the business, such as establishment of new rules and programs or reevaluation of existing programs to prohibit text messaging while driving, and education, awareness, and other outreach to employees about the safety risks associated with texting while driving.

City of Hermosa Beach | Page 1 of 10
Meeting Date: October 28, 2025
Staff Report No. 25-AS-080
Honorable Mayor and Members of the Hermosa Beach City Council REVIEW OF THE CITY’S RESIDENTIAL AND EMPLOYEE PARKING PERMIT

PROGRAMS
(Revenue Services Supervisor Paul Avila)
Recommended Action:

Staff recommends City Council:

1. Receive an update on the City’s Residential and Employee Parking Permit Programs; and

2. Consider any changes or modifications to the Programs.

Executive Summary:

Staff recommends that the City Council discuss and review the City’s residential and employee parking permit programs and, based on public input and feedback provided over the last year, direct staff to make appropriate changes to the programs prior to the next permit season beginning in 2026.

Background:

Residential Parking Permit Program
Following a 2019 Parking Management Study, the Hermosa Beach City Council initiated a series of significant changes to its residential and daily parking programs to ensure a fair contribution from users for maintenance, and improve overall program clarity.

The Residential Parking Program was originally developed to discourage oversaturation of the City’s downtown and coastal parking, to provide free long-term parking at remote locations, and to allow residents within the impacted area to park beyond the one-hour time restrictions or without having to pay the meter at yellow pole/cap meters.

The program allows residents in designated "impacted areas" to park in one-hour limit residential zones and 24-hour yellow cap street meters. To qualify, residents must live within the specified boundaries, which run from the Strand east to Loma Drive, Park Avenue, or Morningside Drive, and between the north and south city limits.

Key changes for residential permits have included limiting permits to three per household, increasing the annual price, and implementing stricter proof of residency requirements.

City of Hermosa Beach | Page 2 of 10
Additional adjustments addressed guest passes, vehicle registration, and stricter penalties for fraud.

Recent updates, including changes implemented for the 2024–2025 season, have tightened the rules and increased the annual fee to $60 per permit. Households are limited to three permits, one of which can be a transferable guest pass. For vehicle sticker permits, applicants must provide a lease agreement with a minimum six-month term (new residents only) or a bank or credit card statement dated within the last 30 days, along with vehicle registration showing the Hermosa Beach address . An optional fourth permit is possible for households that demonstrate a need due to a lack of on-site parking.

Beginning in the 2025-2026 permit season, to obtain a Hermosa Beach residential parking sticker, applicants must provide both a valid California driver's license and a current California vehicle registration.

Permits are sold annually and can be purchased online, by mail, or at City Hall. The program has faced some resident concerns, particularly regarding the stricter proof of residency requirements. Violations, such as submitting fraudulent documents, can result in a two-year ban from receiving parking permits
Employee Parking Permit Program
In 2019, City Council adopted a Parking Management Study that included recommendations to adjust the parking permits and pricing. The Study recommended the existing Employee Parking Permit Program remain but suggested the City update locations and pricing to encourage off-street parking availability for employees and that on-street parking be reserved for short-term users to promote turnover. Historically, employee permits were available for purchase, allowing employees to park at on-street spaces with yellow pole/cap meters and in the unmetered one-hour time restricted areas for an annual fee when employers are within the impact zone.

At its February 28, 2023 meeting, City Council revisted the Employee Permit Program and established three sets of rates: $175 per year at yellow meters, $75 per month for 24 hours in Lot C, and $38 per month for 12 hours at Lot C. Subsequently, at its March 11, 2025 meeting, City Council approved revisions to the monthly employee permits. The Lot C Employee Permit allows employee parking on the upper level of the Lot C structure ($75 per month for 24-hours or $38 per month for daytime parking from 5am to 7pm). The Quarterly Employee Permit (formerly the Annual Employee Permit) is limited to the yellow meters along Hermosa Avenue only ( $44 per quarter).

City of Hermosa Beach | Page 3 of 10
Past Board, Commission, and Council Actions
Meeting Date Description
January 23, 2024
City Council received a staff presentation on issues identified during the 2023–24 parking permit season and approved staff’s recommendation to only accept one address per resident, eliminate the replacement of lost or stolen guest permits, limit Annual Employee Permits to one per person, and institute a 2- year loss of parking permit privileges for
misrepresentation/fraud in applying for a permit or the misuse of parking permits. Additionally, City Council raised the parking permit price to $60 per year, the daily lot pass price to $150 for (12-hour parking) and the 24-hour lot pass to $250, and the daily metered lot pass to $12.

January 14, 2025
City Council received an update on the Citywide Parking Program and approved agreements with Parkmobile, LLC and Turbo Data Systems, Inc. Mayor Pro Tem Seamann requested, and a majority of City Council supported, directing staff to return with an item highlighting Residential Parking Program feedback for possible modifications.

January 28, 2025
City Council received an update on the Citywide Parking Programs and approved a motion to establish the acceptable forms of proof of residency to add a Driver's License consistent with State law, and in the event the person does not have a vehicle, proof of residency for a hang tag can be established via bank statement or credit card statement at the address
requested.

March 11, 2025
City Council received an update on the Employee Parking Permit Program and create two separate monthly employee permits. One employee permit would allows employee parking on the upper level of Lot C. A second employee permit restricting parking for the yellow meters to only Hermosa Avenue via a new sticker.

May 27, 2025 City Council received and filed an update on the City’s Residential Parking Permit Program and directed staff to bring back the item for discussion on or before October 2025.

Analysis:

Residential Parking Permit Program
To improve the customer experience, the City upgraded its online parking permit platform to a contemporary and intuitive system. As a result, the sale of 2025-26 Residential

City of Hermosa Beach | Page 4 of 10
Parking Permits was delayed until April 1, 2025. The number of permits sold this season was down 4% in the 2025-26 permit season, and down 34% over a three-year period.

Residential Parking Permit Costs Year-over-Year
2022–23 $40
2023–24 $50
2024–25 $60
2024–26 $60
The 2025–26 Residential Parking Program continues the efforts to manage limited curbside parking in neighborhoods by giving priority to residents. The Program helps reduce the vehicle impacts of commuters, visitors, and nearby businesses, helping ensure that residents who live in the area can more easily park near their homes. By reducing competition for parking, the Program also helps cut down on traffic congestion, safety concerns, and the time drivers spend circling for a spot.

In addition to protecting access for residents, the Program supports broader city goals. It discourages long-term parking by non-residents, encourage greater use of public transit and alternative transportation, and helps preserve the character and livability of Hermosa Beach’s neighborhoods. The fees collected through permits also provide a revenue stream that the city reinvests in parking management, enforcement, and community improvements.

The Parking Permit Program has largely met its goal of prioritizing parking access for Hermosa Beach residents, and the community has grown accustomed to how the program operates. It has become a familiar system that generally functions as intended.

However, several challenges remain in how the program is administered. These ongoing issues have been identified by staff, city management, and City Council, and they highlight the need for further review, discussion, and potential adjustments to improve effectiveness and address concerns:

Issue One: Driver’s License as Proof of Residency
Residential Permit Type 2025-26 2024-25 2023-24* 2022-23 Vehicle Sticker 2,832 3,297 2,435 4,890
Transferrable Permit 3,069 2,834 1,993 3,288
Owner Guest Permit - - - 748
TOTAL PERMITS SOLD 5,901 6,131 4,428 8,926
*2023-24 figures reflect a partial permit year as sales did not begin until August 28, 2023

City of Hermosa Beach | Page 5 of 10
Description: The program requires residents to show a valid California state driver’s license (with a Hermosa Beach address) and matching vehicle registration to obtain a parking permit.

Impact: This creates barriers for residents who do not drive, new residents who haven’t updated their license address, and households with vehicles registered under different family members. Staff has also heard from homeowners who live part-time elsewhere who think it’s unfair that they pay property taxes but can’t get a parking permit. It can also slow down the application process and lead to resident frustration.

Options/Solutions
 Option A (Status Quo): Continue requiring a driver’s license and matching registration for all permits.
o Pros: Strong verification of residency; reduces risk of fraud. o Cons: Excludes full time residents who don’t drive, part-time residents who pay property taxes, creates delays, increases complaints.  Option B: Allow additional proof of residency (e.g., lease agreement or utility bill) as alternatives to a driver’s license.
o Pros: Increases accessibility for renters, part-time residents, seniors, and new residents; reduces inequities.
o Cons: Slightly more complex for staff to verify documents.  Option C: Hybrid approach — require a driver’s license when available but allow secondary documents for special circumstances (e.g., new move-ins, part-time residents, non-drivers).
o Pros: Balances fraud prevention with flexibility; accommodates edge cases. o Cons: May require staff training and clear guidelines for exceptions.

Issue Two: Guest Permits Not Replaceable
Description: Guest permits are address-specific and cannot be replaced once issued. If a tenant moves out after using the allocation, the new tenant at that address is not eligible to obtain a guest permit for the remainder of the permit season.

Impact: This creates inequity for new renters, who may be unfairly denied a benefit available to prior tenants. It generates resident complaints, reduces program flexibility, and disproportionately impacts rental households with frequent turnover.

Options/Solutions
 Option A (Status Quo): Continue the policy of no replacements. o Pros: Prevents abuse or duplication of guest permits; simpler for staff to enforce.
o Cons: Unfair to new tenants; leads to frustration and negative perceptions of the program.

City of Hermosa Beach | Page 6 of 10
 Option B: Allow replacement with proof of new tenancy (e.g., signed lease agreement, utility bill in new tenant’s name).
o Pros: Improves fairness for renters; accommodates legitimate moves; reduces complaints.
o Cons: Requires staff to verify new documents; increases administrative workload.
 Option C: Limit replacements to once per address per permit season. o Pros: Provides fairness for new tenants while maintaining safeguards against repeated replacements.
o Cons: More complex to track; still may not fully resolve turnover-related challenges.

Issue Three: Elimination of Property Owner Guest Permits Description: The program previously allowed property owners to purchase one guest/hangtag permit per residential address they owned, regardless of whether they lived there. This option has been eliminated, leaving non-resident owners without a means to obtain a guest permit.

Impact: Property owners who do not reside in Hermosa Beach but maintain property (e.g., second homes, rentals, family-use homes) lose flexibility in hosting guests, tenants, or contractors. This has caused frustration among property owners who feel they are being treated inequitably compared to resident homeowners.

Options/Solutions
 Option A (Status Quo): Continue prohibiting owner guest permits. o Pros: Reduces potential misuse by absentee landlords or short-term rental operators; simplifies administration.
o Cons: Limits flexibility for legitimate owners who occasionally use or maintain their properties.
 Option B: Reinstate owner guest permits with restrictions (e.g., capped number, higher fee, proof of ownership, or limited duration).
o Pros: Restores some flexibility for property owners; generates additional revenue; accommodates occasional use.
o Cons: Increases staff oversight; risk of misuse if not tightly regulated.

Issue Four: Elimination of Event Permits
Description: One-day event permits were previously available to residents who held a current residential parking permit, allowing up to five events per year (with a maximum of 20 permits per day). The initial five permits were $1 each, and the remaining fifteen were free. This option has been removed under the current program.

Impact: Residents no longer have an affordable, short-term solution for hosting guests or attending local events. This reduces flexibility, generates complaints from residents

City of Hermosa Beach | Page 7 of 10
who regularly used the permits, and limits the program’s responsiveness to temporary parking needs.

Options/Solutions
 Option A (Status Quo): Maintain elimination of event permits. o Pros: Simplifies program administration; reduces potential misuse or overcrowding on event days.
o Cons: Residents lose a valued service; may cause dissatisfaction and inconvenience.
 Option B: Reinstate event permits with updated rules (e.g., limit the number of events per year, restrict the number of permits issued per event, and charge a nominal fee for each permit).
o Pros: Restores flexibility for residents; generates minor revenue; addresses community needs.
o Cons: Requires additional staff oversight and tracking; some risk of misuse during large events.

Issue Five: Requirements for a Fourth Residential Permit Description: One of the requirements to qualify for a fourth residential parking permit is that each vehicle must be registered to a different driver.. Vehicles registered under the same name are ineligible, regardless of parking needs.

Impact: Multi-vehicle households with multiple cars registered to a single driver are restricted from obtaining additional permits, which can cause frustration, complaints, and perceived inequity. Staff has heard from several residents about the need for permits for two spouses and their two children who each drive. The current limitation may not reflect actual parking demand and can create enforcement challenges.

Options/Solutions
 Option A (Status Quo): Maintain the requirement that each vehicle must be registered to a unique driver.
o Pros: Prevents households from stockpiling permits; simplifies verification. o Cons: Restrictive for legitimate multi-vehicle households; may not align with actual parking needs; causes resident dissatisfaction.
 Option B: Allow households to obtain a fourth permit regardless of driver registration, subject to verification of household residency. o Pros: Increases flexibility for residents; better aligns with real-world parking needs; reduces complaints.
o Cons: Slightly higher risk of over-allocation; may require monitoring to prevent abuse.
 Option C: Eliminate the requirement that each vehicle must be registered to a different driver, allowing the eligibility to be based on the overall parking needs of the household.

City of Hermosa Beach | Page 8 of 10
o Pros: Balances fairness with program control; ensures permits go to households with genuine need.
o Cons: Adds administrative review and complexity; requires clear criteria for eligibility.

In rare instances, staff identified misrepresentation of paperwork or misuse of parking permits. In total, 20 residents are currently on a two-year pause from receiving Residential Parking Permits as outlined below.

Residents on Two-Year Pause from Receiving Parking Permits Reason # Residents
Submitted Altered Vehicle Registration Documentation 13 Submitted Altered Bank or Credit Card Statements 5
Misusing Vehicle Stickers on Unassigned Out-of-State Vehicles 2 Total 20
Options:

1. Keep the Two-Year Ban
 Pros: Strong deterrent, easy to enforce, protects integrity of program.  Cons: Can be overly harsh, may penalize honest mistakes, reduces goodwill and revenue.

2. Change / Modify the Ban
 Pros: More fair and flexible (shorter bans, appeal options), preserves deterrence but allows forgiveness.
 Cons: More complex to administer, harder to communicate, risk of inconsistency.

3. Remove the Ban
 Pros: Simplifies policy, less punitive, avoids long-term hardship, reduces administrative tracking.
 Cons: Weakens deterrence, risk of increased fraud/misuse, may anger residents, requires stronger alternative penalties.

Permit sales for the 2026-2027 season are scheduled to begin February 1, 2026. The current passes will be good through February 28, 2026. Enforcement will begin March 23, 2026 to allow residents ample time to apply for a receive their new permits.

Employee Parking Permit Program
Employee Parking Permits must meet the following eligibility criteria:
 Business must be located within the City's Impacted Parking Area.  The following documents are required:

City of Hermosa Beach | Page 9 of 10
o Current business license (if you are the business owner) or a current pay stub less than 30 days old (if you are an employee);
o Current CA vehicle registration (only for the Quarterly Permit)—must be in the name of the employee; and
o Valid Picture I.D.—acceptable forms include a driver’s license, California I.D., passport or military I.D.

Listed below are the permit counts for the 2025-26 season:

At its March 11, 2025 meeting City Council changed the criteria for both the annual (now quarterly) on-street and monthly Lot C Employee Parking Program. Quarterly permits are now only valid at yellow cap/pole meters on Hermosa Ave. Lot C employee parking is now restricted to only the top floor of the structure.

Staff has received a handful of anecdotal complaints of capacity issues in Lot C from affected local employees
City Council may want to consider changes to the Employee Parking Program to allow a fairer system for employees, less congestion, possible new revenue, and increase resident satisfaction. However, this is counterbalanced by limited parking spaces, risks to visitor/business parking, and employee equity.

Year Total
2025-261
316
2024-25 207
2023-242
138
2022-23 231
2021-22 169
2020-21 183
Annual Employee Permit Sales
2Sales delayed in 2023-24
1Sales sw itched to quarterly
Year
Daily
(5am-7pm) 24-Hour
2025-26 1,714 1,084
2024-25 1,776 1,160
Monthly Lot C Employee Permit Sales

City of Hermosa Beach | Page 10 of 10
Here are a few options for potential changes:

Expand Access / Zones for Quarterly Permit – More spaces or wider use of permits.  Pros: Convenience for employees.
 Cons: Reduces availability for residents/visitors.

Increase Fees – Raise permit costs to match demand.
 Pros: More city revenue, deters overuse.
 Cons: Pushback from employees/businesses, risk of illegal parking.

Employer-Managed Lot C Permits – Permits are allocated by businesses rather than individuals. Limit the number of permits issued to each business.  Pros: Better verification, encourages sharing/carpooling.  Cons: Burden on employers, fairness issues among staff.

Reallocate Spaces / Enforcement for Lot C – Redesignate employee-only spaces to allow Lot C permits at different levels of the structure.  Pros: Improves parking distribution for employees and supports overall system integrity.
 Cons: Reduces parking availability for visitors, additional enforcement oversight.

Fiscal Impact:

There is no fiscal impact related to the recommended action.

Links:

Link to October 14, 2025 emailed comments
Link to October 14, 2025 eComment Report
Respectfully Submitted by: Paul Avila, Revenue Services Supervisor Concur: Brandon Walker, Administrative Services Director Approved: Steve Napolitano, Interim City Manager

PARKING PERMIT PROGRAMS
October 28, 2025

Parking Permit Programs
• Residential Permits
• Review 2025-2026 Permit Season
• Feedback and Issues
• Employee Permits
• Review Employee Permit Program
• Feedback and Issues

Residential Parking Permits
Updates made for current permit season:

1.) Proof of Residency Requirements
• Vehicle Stickers: California Driver’s License and Vehicle Registration showing the same Hermosa Beach address
• Guest/Transferrable Permit: Same documentation as the Vehicle Sticker, or a Bank or Credit Card Statement

2.) Launched new parking permit platform

Residential Parking Permits
Residential Permit Type 2025-26 2024-25 2023-24* 2022-23 Vehicle Sticker 2,832 3,297 2,435 4,890
Transferrable Permit 3,069 2,834 1,993 3,288
Owner Guest Permit - - - 748
TOTAL PERMITS SOLD 5,901 6,131 4,428 8,926
*2023-24 figures reflect a partial permit year as sales did not begin until August 28, 2023 2022-23 $40
2023-24 $50
2024-25 $60
2025-26 $60
Residential Parking Permit Costs Year-over-Year

Residential Permits-Feedback
• Driver’s License Requirement for Proof of Residency
Impact: Favors homeowners but does not accommodate renters, new residents, or parttime owners. Slows application process and causes high volume of complaints. • Guest Permits Not Replaceable
Impact: New tenants can’t obtain a guest permit if it was previously issued to the address.

Creates inequity and generates complaints.
• Elimination of Property Owner Guest Permits
Impact: Prevents non-resident homeowners from visiting their property, schedule maintenance, and is considered unfair by property owners. • Elimination of Event Permits
Impact: Provides no affordable options for gatherings such as holidays or special events. • Fourth Permit Requirement (Unique Driver Rule)
Impact: Restricts multi-car households and fails to address actual parking needs.

Proof of Residency
Options/Solutions
Option A (Status Quo): Continue requiring a driver’s license and matching registration for all permits.

Option B: Accept alternative proof of residency (e.g., signed lease agreement [new residents only] or utility bill) instead of the driver’s license.

Option C: Hybrid approach — require a driver’s license when available but allow secondary documents for special
circumstances (e.g., new move-ins, part-time residents, nondrivers).

Guest Permits Not Replaceable
Options/Solutions
Option A (Status Quo): Continue the policy of no
replacements.

Option B: Allow replacement with proof of new tenancy (e.g., signed lease agreement, utility bill in new tenant’s name).

Option C: Allow only one replacement per address per permit season.

Prop Owner Guest Permits Eliminated
Options/Solutions
Option A (Status Quo): Continue prohibiting owner guest permits.

Option B: Reinstate owner guest permits with restrictions (e.g., capped number, higher fee, or limited duration).

Event Permits Eliminated
Options/Solutions
Option A (Status Quo): Maintain elimination of event permits.

Option B: Reinstate event permits with updated rules (e.g., limit the number of events per year, restrict the number of permits issued per event, and charge a nominal fee for each permit).

Fourth Permit Requirement
Options/Solutions
Option A (Status Quo): Maintain the requirement that each vehicle must be registered to a unique driver.

Option B: Allow households to obtain a fourth permit regardless of driver registration, subject to verification of household residency.

Option C: Eliminate the unique driver requirement and base eligibility on overall household parking needs.

Two-Year Ban
The two-year ban refers to the penalty for submitting altered documents when applying for permits or for misusing parking permits. Under Hermosa Beach’s program rules, such violations result in a 2-year loss of parking permit privileges

Two-Year Ban
Options:

1. Keep the Two-Year Ban
• Pros: Strong deterrent, easy to enforce, protects integrity of program. • Cons: Can be overly harsh, may penalize honest mistakes, reduces goodwill and revenue.

2. Change / Modify the Ban
• Pros: More fair and flexible (shorter bans, appeal options), preserves deterrence but allows forgiveness.
• Cons: More complex to administer, harder to communicate, risk of inconsistency.

3. Remove the Ban
• Pros: Simplifies policy, less punitive, avoids long-term hardship, reduces administrative tracking.
• Cons: Weakens deterrence, risk of increased fraud/misuse, may anger residents, requires stronger alternative penalties.

Employee Parking Permits
Year Total
2025-261 316
2024-25 207
2023-242 138
2022-23 231
2021-22 169
2020-21 183
Annual Employee Permit Sales
2 Sales delayed in 2023-24
1 Sales sw itched to quarterly
Updates Made to Employee Permits:

1.) Annual employee permit was changed to
a Quarterly street permits valid only on
Hermosa Ave

2.) Monthly Lot C permits restricted to only top
level

Employee Parking Permits
Permit Options
• Expand Access for the Quarterly Permit – Extend use of the permit to additional parking areas.
• Increase Fees – Raise permit costs to better align with demand and usage. • Employer-Managed Lot C Permits – Allocate permits through businesses rather than individuals, with limits per employer.
• Reallocate Spaces in Lot C – Redesignate employee-only spaces within the structure to improve parking distribution and availability for employees. • No Change

Employee Parking Map
North End Center w/ Lots A, B, and C South End Page 225 of 572 2026-2027 Permit Season
• Permit Sales Begin – February 2, 2026
• Current Permits Expire – February 28, 2026

PARKING PERMIT PROGRAMS
October 28, 2025

City of Hermosa Beach | Page 1 of 4
Meeting Date: October 28, 2025
Staff Report No. 25-CR-079
Honorable Mayor and Members of the Hermosa Beach City Council APPROVE AGREEMENT WITH REC TECHNOLOGIES INC. TO PROVIDE A

RECREATION MANAGEMENT SOFTWARE
(Recreation Coordinator Kambria Vint)
Recommended Action:

Staff recommends City Council:

1. Approve a Professional Services Agreement with Rec Technologies Inc. for a recreation management software for the Community Resources for a recreation management software platform for the Community Resources Department for a two-year term through October 28, 2028, with an automatic renewal for an additional one-year term, in a total amount not to exceed $75,000 over all three terms.; and

2. Authorize the City Manager to execute and the City Clerk to attest the proposed agreement subject to approval by the City Attorney.

Executive Summary:

To support the modernization of the City’s recreation management software and to enhance the user’s experience, staff undertook a comprehensive review of available technologies, evaluated multiple companies’ recreation management software, and subsequently issued a formal Request for Proposals (RFP) (Attachment 1) to identify the most effective and efficient software.

Following a competitive process, staff recommends City Council approve a Professional Services Agreement (Attachment 2) with Rec Technologies Inc. for a recreation management software platform for the Community Resources Department for a two-year term through October 28, 2028, with an automatic renewal for an additional one-year term, in a total amount not to exceed $75,000 over all three terms.

Background:

The Community Resources Department (Department) has utilized the ACTIVE Network as its primary recreation management software since March 31, 2014, following the discontinuation of the City’s previous software, CLASS. Since its implementation, the software has served as the Department’s platform to process activity registrations, manage memberships, process facility reservations, coordinate program scheduling, and

City of Hermosa Beach | Page 2 of 4
support financial transactions and reporting. The current contract with the ACTIVE Network is set to expire on August 12, 2026.

Discussion:

On August 11, 2025, the City issued RFP 25-005 (Attachment 1) seeking proposals from companies that offer recreation management software to provide, implement, and support such a platform. The RFP was posted on the City bulletin board, emailed to those who subscribe to notices for RFPs, advertised on the City website, and on the City’s online bidding platform, PlanetBids.

The scope of work identified in the RFP is as follows:
 The software shall be delivered as a browser-based, Software-as-a-Service cloud platform requiring no local installations or hardware, and shall include all future improvements and feature releases at no additional cost.  The system shall allow for an unlimited number of user licenses within the City.  The company shall be responsible for data configuration and ingestion.  The company shall provide unlimited training (on-site or remote) as requested by the City for the duration of the agreement.
 The company shall offer integrated payment processing for credit cards, checks, and cash.
 The company shall ensure secure data transmission.
 The company shall provide continuous service support.

On August 25, 2025, the City received a total of thirteen proposals in response to the RFP.

The proposing companies are listed below in alphabetical order:
 Amilia Technologies Inc. USA
 AVM AI Solutions.com
 CivicPlus, LLC
 Concourse Tech Inc.
 DataTerrain Inc
 Kaizen Laboratories Inc.
 PerfectMind Inc
 Rec Technologies
 RecTrac LLC
 Time.ly Network Inc.
 Traction Rec Technologies, Inc.
 Tyler Technologies
 Univerus Inc.

The proposals were independently evaluated by Recreation Coordinator Kambria Vint.

Each proposal was scored based on the following evaluation criteria:

City of Hermosa Beach | Page 3 of 4
 Approach and Methods: Demonstrated understanding of the City’s operational needs and proposed implementation strategy.
 Relevant Experience and Expertise: Industry knowledge, qualifications, and experience with similar projects.
 Timeframe and Costs: Proposed implementation timeline and overall cost competitiveness.
 Administration: Ability to comply with the RFP requirements and administrative processes.

Interviews and program demonstrations were held on September 3, 2025 for the top two scoring companies. The panel of evaluators included Recreation Coordinator Kambria Vint, Senior Management Analyst Kenneth Bales, and GIS/IT Analyst Alexandria Hildebrand. Following the review of the proposals and completion of the interviews, the companies were ranked based on the criteria listed above. The rankings are as follows:

Ranking Company
1 Rec Technologies Inc.
2 Xplor Recreation
Based on its proposal and software demonstration (Attachment 2), Rec Technologies Inc. was identified as the most qualified bidder. Rec Technologies Inc demonstrated a thorough understanding of the scope of work identified in the RFP and a firm understanding of the Department’s needs. The company is based in San Francisco, California, and provides service for over 40 major cities across the United States, including Torrance, California.

Fiscal Impact:

The City’s current agreement with the ACTIVE Network is structured on a revenue transaction model, under which the City remits a percentage of each transaction to ACTIVE Network as payment for services rendered. In Fiscal Year (FY) 2024-25, the City paid Active.net a total of $127,266.19.

Staff’s preference is to transition to a payment fee structure for recreation management software, rather than a per-transaction model, to enhance budgetary planning, improve cost predictability, and support more efficient financial management. Rec Technologies Inc. would be able to provide such a fee structure, detailed in the table below.

Agreement Request
Fiscal Year Due Fee Type Request Amount
FY 2025-26 At project launch
anticipated for November 2025 Implementation Fee $16,000 FY 2026-27 At project “go-live”
anticipated for July 2026
Annual Service
Technology Fee
$29,500

City of Hermosa Beach | Page 4 of 4
Agreement Request
Fiscal Year Due Fee Type Request Amount
FY 2027-28
At the automatic renewal of the
automatically renewed
additional one-year term
Annual Service
Technology Fee $29,500
Staff will use budgeted prospective expenditures to fund the first year implementation fee.

When implemented, Staff will budget the annual contract technology fee as part of future City fiscal year budget cycles.

Attachments:

1. RFP 25-005

2. Draft Professional Services Agreement with Rec Technologies Inc

3. Rec Technologies Inc. Proposal.

Respectfully Submitted by: Kambria Vint, Recreation Coordinator Concur: Lisa Nichols, Community Resources Director
Noted for Fiscal Impact: Henry Chao, Finance Manager
Concur: Brandon Walker, Administrative Services Director Legal Review: Jason Baltimore, Interim City Attorney
Approved: Steve Napolitano, Interim City Manager

REQUEST FOR PROPOSALS (RFP) NO. 25-005

RECREATION MANAGEMENT SOFTWARE PLATFORM

IN THE CITY OF HERMOSA BEACH, CALIFORNIA

CITY OF HERMOSA BEACH
Department of Community Resources
1315 Valley Drive
Hermosa Beach, CA 90254
(310) 318-0280

RFP 25-005 City of Hermosa Beach

RFP NUMBER: RFP# 25-005
RFP TITLE: RECREATION MANAGEMENT SOFTWARE PLATFORM
REQUESTING DEPARTMENT: Community Resources
RELEASE DATE: August 11, 2025
DUE DATE: Monday, August 25, 2025 @ 6:00 p.m. PST
Notice is hereby given that the Department of Community Resources of the City of Hermosa Beach will receive proposals for:

RFP# 25-005, RECREATION MANAGEMENT SOFTWARE PLATFORM
Proposals must be submitted as PDF via the PlanetBids Portal (pbsystem.planetbids.com/portal/51313/portal-home). Proposals will be received until 6:00 p.m. PST, Monday, August 25, 2025.

Proposals will not be opened at that time but will be submitted to the Community Resources Department for verification and compliance with Specifications and subsequent recommendation to City Council for award of a contract or rejection of the responses, as deemed appropriate. The City reserves the right to make no award.

Please direct any inquiries regarding this RFP to Kambria Vint at [email protected]. All questions regarding the content of the proposal may be emailed to Kambria Vint referenced above or submitted on the PlanetBids Portal. www.hermosabeach.gov

CITY OF HERMOSA BEACH
1315 Valley Drive, Hermosa Beach, CA, 90254
Phone: (310) 318-0280

RFP 25-005 City of Hermosa Beach

Table of Contents
1 Introduction..............................................................................................................................4

1.1 Invitation for Proposals......................................................................................................4

1.2 RFP Timeline .......................................................................................................................4

1.3 Submittal Procedures........................................................................................................4

1.4 Contact..............................................................................................................................5

1.5 General RFP Conditions ....................................................................................................5

2. Project Overview ..................................................................................................................10

2.1 Background.....................................................................................................................10

2.2 Objective and Goals ......................................................................................................10

2.3 Relevant Plans, Policies, Programs, or Projects............................................................10

3. Scope of Services .................................................................................................................11

4. Proposal Submittal Instructions............................................................................................12

4.1 Proposal Format ..............................................................................................................12

4.2 Proposal Content.............................................................................................................13

4.2.1 Cover Letter ..............................................................................................................13

4.2.2 Firm Profile .................................................................................................................13

4.2.3 Project Understanding and Approach to Scope of Work ...................................13

4.2.4 Project Management Plan......................................................................................14

4.2.5 Experience and Qualifications ...............................................................................15

4.2.6 Required Forms.........................................................................................................16

4.2.7 Cost Proposal............................................................................................................17

5. Proposal Evaluation and Selection.....................................................................................17

5.1 Proposal Review Process................................................................................................17

5.2 Evaluation Criteria...........................................................................................................18

6. Contract Expectations .........................................................................................................19

6.1 Contract Period ...............................................................................................................19

6.2 Professional Services Agreement..................................................................................19

6.3 Standards of Work...........................................................................................................19

6.4 Invoicing and Payment ..................................................................................................19

7. Attachmeents and Required Forms....................................................................................21

7.1 Sample Professinal Services Agreement......................................................................21

7.2 Required Forms................................................................................................................32

7.2.1 Certification of Proposal .........................................................................................32

7.2.2 Non-Collusion Affidavit ............................................................................................34

7.2.3 Compliance with Insurance Requirements...........................................................35

7.2.4 Acknowledgement of Professional Services Agreement ....................................36

RFP 25-005 City of Hermosa Beach

1 Introduction

1.1 Invitation for Proposals
The City of Hermosa Beach Community Resources Department is seeking proposals from qualified contractors for the purchase, implementation, and servicing of a Recreation Management Software Platform. Installation would begin immediately after contract signing.

Should an award be made, the selected Consultant(s) will enter into a professional services agreement with the City of Hermosa Beach to provide these services. The City anticipates a contract start date around October 1, 2025.

1.2 RFP Timeline
RFP posted August 11, 2025
Deadline to submit written questions August 18, 2025
Posting of responses to questions August 21, 2025
Deadline to submit proposals August 25, 2025 - 6 PM PST Interviews for selected firms if the City
wishes to do so
TBD ~ First Week of September
Tentative award September 26, 2025

1.3 Submittal Procedures
Proposers shall submit one copy of the proposal and one copy of the fee schedule in PDF format on the PlanetBids Portal.

No proposals will be accepted after the listed date and time. The format, content, and procedures for submitting a proposal are provided in further detail within the RFP. (Check Section 4 for complete submittal procedures)

RFP 25-005 City of Hermosa Beach

1.4 Contact
Please direct any inquiries regarding this RFP to Kambria Vint at [email protected]. All questions regarding the content of the proposal may be emailed to Kambria Vint referenced above or submitted on the PlanetBids Portal.

1.5 General RFP Conditions
The following instructions and conditions apply to this RFP:

Pre-Contractual Expenses
The City of Hermosa Beach shall not, in any event, be liable for any pre-contractual expenses incurred by any consultant. In addition, no consultant shall include any such expenses as part of the price proposed. Pre-contractual expenses are defined as expenses incurred by bidders in:
• Preparing a proposal in response to this RFP.
• Submitting that proposal to the City of Hermosa Beach. • Negotiating with the City of Hermosa Beach any matter related to this RFP, proposal, and/or contractual agreement.
• Any other expenses incurred by the consultant prior to the date of an executed contract.

Authority to Withdraw RFP and/or Not Award Contract
The City of Hermosa Beach reserves the right to withdraw this RFP at any time for any reason without prior notice. Further, the City makes no representations that any agreement will be awarded to any consultant responding to this RFP. The City expressly reserves the right to reject any and all proposals in response to this RFP without indicating any reasons for such rejection(s).

The release of this RFP does not obligate or compel the City to enter into a contract or agreement.

Authority to Revise RFP and Request Additional Information The City reserves the rights to amend the RFP at any time, to determine the successful respondent(s), and to reject any or all Proposals or their components. Should it be necessary for the City to issue addendums to this RFP during the proposal period, the City will post addendums to the PlanetBids Portal. It is the responsibility of all prospective proposers to check PlanetBids regularly to see whether any addenda or supplemental materials have been issued. Proposals shall acknowledge that the consultant is aware of all addendums which have been issued and has incorporated their provisions in their proposal by completing the Certification of Proposal Form.

RFP 25-005 City of Hermosa Beach

The City reserves the right, to request additional information or clarifications from consultants where it may serve the City’s best interest.

Other Conditions
• ADDITIONAL SERVICES. The Scope of Work describes the minimum work to be accomplished. Upon final selection of the firm(s), the Scope of Work may be modified and refined during negotiations with the City. Any proposer that provides additional services can include those services in the proposal and list them as additional services.
• AUTHORIZED SIGNATURES. Every proposal must be signed by the person or persons legally authorized to bind the consultant to a contract for the execution of the work. Upon request of the City, any agent submitting a proposal on behalf of a consultant shall provide a current power of attorney certifying the agent’s authority to bind the consultant.
• AWARD OF PROPOSAL. City reserves the right to negotiate final terms with the selected consultant, if any. Award may be made to the consultant offering the most advantageous proposal after consideration of all criteria. • COMPLIANCE WITH LAWS. All proposals shall comply with current federal, state, and other laws relative thereto.
• CONFLICT OF INTEREST. By signing the Certification of Proposal, the consultant declares and warrants that no elected or appointed official, officer or employee of the City has been or shall be compensated, directly or indirectly, in connection with this proposal or any work connected with this proposal. Should any agreement be approved in connection with this Request for Qualifications, consultant declares and warrants that no elected or appointed official, officer or employee of the City, during the term of his/her service with the City shall have any direct interest in that agreement, or obtain any present, anticipated or future material benefit arising therefrom.
• DISQUALIFICATION OF PROPOSER. If there is reason to believe that collusion exists among the consultants, the City may refuse to consider proposals from participants in such collusion. No person, firm, or corporation under the same or different name, shall make, file, or be interested in more than one proposal for the same work unless alternate proposals are called for. Reasonable grounds for believing that any consultant is interested in more than one Proposal for the same work will cause the rejection of all Proposals for the work in which a consultant is interested. Consultants shall submit as part of their Proposal documents the completed Non-Collusion Affidavit.
• EXAMINATION OF DOCUMENTS. It is the responsibility of the consultant to carefully and thoroughly examine and be familiar with these RFP documents, general conditions, all forms, specifications, drawings, plans, and addendums (if any).

Consultants shall satisfy themselves as to the character, quantity, and quality of

RFP 25-005 City of Hermosa Beach

work to be performed and materials, labor, supervision necessary to perform the work as specified by these documents. The failure or neglect of the consultant to examine documents shall in no way relieve the consultant from any obligations with respect to the solicitation for and subsequent contract that may be awarded.

The submission of a proposal shall constitute an acknowledgment upon which the City may rely that the consultant has thoroughly examined and is familiar with the RFP documents. The failure or neglect of a consultant to receive or examine any of the documents shall in no way relieve the consultant from any obligations with respect to the proposal. No claim will be allowed for additional compensation that is based upon a lack of knowledge of any solicitation document. • INTERPRETATION OF RFP DOCUMENTS. City reserves the right to make corrections or clarifications of the information provided in this RFP. If any person is in doubt as to the true meaning of any part of this RFP documents, or finds discrepancies or omissions in the document, the person may submit to the City a written request for an interpretation or correction. Oral statement(s), interpretations or clarifications concerning meaning or intent of the contents of this RFP by any person are unauthorized and invalid. Modifications to the RFP, including, but not limited to the scope of work, can be made only by written addendum issued by the City.

Proposers shall submit all questions in writing to the contact listed in the announcement or submitted on the PlanetBids Portal. Proposers may not contact any other staff members with questions. The requesting party is responsible for prompt delivery of any requests. When the City considers interpretations necessary, interpretations will be in the form of an addendum to the RFP documents, and when issued, will be sent as promptly as is practical to all parties recorded by the City as having received RFP documents. All such addenda shall become a part of the RFP document. It is the responsibility of each consultant to ensure the City has their correct business name, mailing address and e-mail address on file through the PlanetBids online portal. Any prospective consultants who obtained a set of RFP documents from the PlanetBids online portal are responsible for checking PlanetBids to verify if any subsequent Addendums were issued.
• IRREGULARITIES. City reserves the right to waive non-material irregularities if such would be in the best interest of the City as determined by the City Manager. • NON-DISCRIMINATION. Consultant represents and warrants that it does not and will not discriminate against any employee or applicant for employment because of race, religion, gender, color, national origin, sexual orientation, ancestry, marital status, physical condition, pregnancy or pregnancy-related condition, political affiliation or opinion, age or medical condition.
• NON-EXCLUSIVE. Should the City make an award, the successful consultant will enter into a NON-EXCLUSIVE professional services agreement and the City reserves the right to enter into agreements with other firms.
• OFFERS OF MORE THAN ONE PRICE. Consultants are NOT allowed to submit more than one cost proposal.

RFP 25-005 City of Hermosa Beach

• OWNERSHIP. All data, documents and other products used or developed during the RFP process become the property of the City upon submission. All documents submitted in response to this RFP shall become the property of the City and a matter of public record pursuant to Government Code sections 6250 et seq.

Proposals should not be marked as confidential or proprietary, and City may refuse to consider a proposal so marked. All information contained within the proposals will become a matter of public record. It is the responsibility of each bidder to clearly identify any and all information contained within its bid proposal that it considers to be confidential and/or proprietary. To the extent that the City agrees with that designation, such information will be held in confidence whenever possible. All other information will be considered public. • PROFESSIONAL SERVICES AGREEMENT. Prior to awarding any work, the selected Consultant will be required to execute a professional services agreement (sample attached) with the City. Any proposed change to the agreement shall be identified in the response to the Request for Qualifications (RFP) and shall be subject to the sole approval of the City. The City requires the Consultant to obtain and maintain a policy of professional liability and other insurance as indicated in the agreement.
• NO PUBLIC OPENING/PUBLIC RECORDS ACT. Proposals shall be opened and its contents secured by City staff to prevent disclosure during the evaluative process and the process of negotiating with competing consultants. Adequate precautions shall be taken to treat each consultant fairly and to insure that information gleaned from competing proposals is not disclosed to other Consultants. Prices and other information concerning the proposals shall not be disclosed until a recommendation for award is made to the awarding authority. • PUBLIC RECORD. All proposals submitted in response to this RFP will become the property of the City upon submittal and a matter of public record when the City selects a proposer for recommendation to the City Council for its consideration pursuant to applicable law.
• REPRESENTATIONS. Consultant understands and acknowledges that the representations made in their submitted proposal are material and important, and will be relied on by the City in evaluation of the proposal. Consultant misrepresentation shall be treated as fraudulent concealment from the City of the facts relating to the proposal.
• SEVERABILITY. If any provisions or portion of any provision, of this Request for Qualifications are held invalid, illegal or unenforceable, they shall be severed from the Request for Qualifications and the remaining provisions shall be valid and enforceable.
• SUBCONTRACTOR INFORMATION. If the proposal includes the use of sub consultants, consultant must identify specific sub consultants and the specific requirements of this RFP for which each proposed sub consultant would perform

RFP 25-005 City of Hermosa Beach

services. All sub consultant for work services must follow all required provisions of the prime contract.
• VALIDITY. Proposal must be valid for a period of 90 days from the due date. • WITHDRAWAL OF PROPOSAL. Consultants’ authorized representative may withdraw Proposals only by written request received by this RFP contact personal before the Proposal Submittal Deadline.
• BUSINESS LICENSE. The selected firm(s) must obtain a City of Hermosa Beach Business license and maintain a current certificate of insurance with the City for the duration of the Professional Service Agreement.

RFP 25-005 City of Hermosa Beach

2. Project Overview

2.1 Background
The City of Hermosa Beach is located within the southwestern coastal portion of Los Angeles County in what is commonly referred to locally as the “South Bay” area. The City is bounded on the north and east by the City of Manhattan Beach, on the south and east by the City of Redondo Beach, and on the west by the Pacific Ocean. Hermosa Beach strives to provide residents and visitors alike with the opportunity for a high quality of life that includes offering a range of safe and convenient transportation options. The city limits for Hermosa Beach encompass a relatively small land area, approximately 1.4 square miles and a shoreline of approximately two miles. In 2020, the City of Hermosa Beach had an estimated population of 19,728. The City plays host to several major special events held throughout the year and visitors can increase the population to over 100,000 people on an average summer weekend.

The City employs approximately 150 FTEs and provides a wide range of services to its residents and visitors. The City has the following departments: Administrative Services, City Clerk, City Manager’s Office, Community Development, Community Resources, Police, and Public Works.

The City’s Community Resources Department is seeking a modern, comprehensive, and cloud-based Recreation Management Software Platform to transform the operational efficiency of the Department and to improve the resident and end-user experience. The platform shall be mobile-first (i.e. accessible by any mobile device), cross-device, and personalizable by end users.

The Department desires a contractor who will be able to provide a modular and integrated recreation management platform to achieve the following objectives:

1. Reduce administrative inefficiencies due to manual workflows;

2. Increase the number of residents participating in recreation programming and utilizing City facilities through easier registration and facility booking;

3. Grow programming and facilities revenue by providing a mobile-friendly registration and check-out experience;

4. Deliver continuous improvements to the recreation experience, by being scalable and offering capabilities to be added in the future such as artificial intelligence and instructor management.

RFP 25-005 City of Hermosa Beach

2.2 Objective and Goals
This RFP is seeking proposals from qualified contractors for the purchase, implementation, and servicing of a Recreation Management Software Platform. Installation would begin immediately after contract signing.

2.3 Relevant Plans, Policies, Programs, or Projects
Proposers should review and consider the City’s current budget and staffing levels. The following link is provided for your convenience:

City of Hermosa Beach Budget

3. Scope of Services
The Scope of Work shall include, but not be limited to the following tasks:
• The software shall be delivered as a browser-based, Software-as-a-Service cloud product, with no installations or hardware required, including any future improvements and feature releases for no additional fee.
• Licenses shall be available for an unlimited number of users within the City. • Contractor shall manage the data configuration and ingestion. • Contractor shall provide unlimited training (on-site or remote) as required by the City over the course of the agreement.
• Contractor shall provide integrated payment processing for credit cards, check, and cash, including the ability to pass through transaction fees to end users. • Contractor shall ensure secure data transmission.
• Contractor shall provide continuous service support.

4. Proposal Submittal Instructions

4.1 Proposal Format
Proposes shall submit one copy of the proposal and one copy of the fee schedule in PDF format on the PlanetBids Portal.

RFP 25-005 City of Hermosa Beach

4.2 Proposal Content
Proposals must be concise, but with sufficient detail to allow accurate evaluation and comparative analysis. Proposals should be straightforward and provide "layman" explanations of technical terms that are used. Emphasis should be concentrated on conforming to the RFP instructions, responding to the RFP requirements, and on providing a complete and clear description of the offer. Proposals should include the sections as described in greater detail below. Do NOT include marketing brochures or other promotional material not connected with this RFP.

4.2.1 Cover Letter
Proposal must be accompanied by a cover letter, signed by an individual authorized to bind the proposing entity. An unsigned proposal is grounds for rejection. The cover letter should include an introduction of the firm, contact information, summary statement of professional qualifications, and statement of understanding of the scope of work. The cover letter also shall acknowledge receipt of any addendums that were issued for this RFP.

4.2.2 Firm Profile
Proposers should provide a brief profile of the prime consultant and any sub-consultants.

Information should include, but is not limited to the following information:
• Official name and address.
• Name, address, email, and telephone number of the consultant’s primary point of contact.
• Type of business entity of consultant (corporation, company, joint venture, etc.). Please enclose a copy of the Joint Venture Agreement if entity is a joint venture.
• Federal Employer I.D. Number.
• Address, telephone numbers and fax numbers of each of the proposing firm’s locations.
• Indication whether firm is totally or partially owned by another business organization (parent company) or individual.
• Number of years consultant has been in business under the present business name.
• Number of years of experience the consultant has had in providing required, equivalent, or related services.
• Any failures or refusals to complete a contract, and explanation.

RFP 25-005 City of Hermosa Beach

4.2.3 Project Understanding and Approach to Scope of Work Proposers should include in this section a statement of project understanding, organizational chart, approach to work program and summary of deliverables, described in greater detail below.

Statement of Project Understanding
Consultant must include in this section its understanding of the project and understanding of the Scope of Services noted herein. Consultant should be able to articulate a thorough understanding of the State, County and Local requirements, and other industry standards applicable to the project or services to be provided.

Organizational Chart
Consultant shall include an organizational chart that reflects key staff and roles/responsibilities of each individual assigned to provide services under this Proposal.

Any roles or topics in which the proposer anticipates utilizing the expertise of subcontractors should be clearly identified.

Approach to Work Program (Required and Optional Tasks)
The City is seeking an effective, efficient and creative approach to preparing work products and meeting the City ’s goals and timelines. In this section, proposers should include their recommended approach to providing the requested professional services and tasks noted in the Scope of Services in the RFP. The approach to the work plan shall be of such detail to demonstrate the proposer’s ability to accomplish project objectives.

This section should also include proposed approaches and techniques to engagement of community and stakeholders in the process of developing projects.

The proposer’s approach should provide detail on both the required and optional tasks identified in the scope of work, as well as any additional tasks or services performed by the proposer.

Additional Services
Consultant shall provide the City with any additional services that the firm can provide.

Consultant may additionally itemize those services which are further beneficial but are not noted in the aforementioned paragraphs as requirements.

Roles and Responsibilities for City Staff
Proposer should summarize any services NOT provided by their firm that are listed in the Scope of Work. Consultant shall also list any resources, City assistance or other items expected to be provided by City, “Work to be Performed or Provided by the City”.

4.2.4 Project Management Plan
Key to a creative, effective, and efficient delivery of projects is close coordination and communication between the City, community, and the selected consultant. In this

RFP 25-005 City of Hermosa Beach

section, proposers should provide information on scheduling, and describe the firm or project manager’s approach to communications and quality assurance/quality control.

Project Schedule
Proposers must provide a project schedule with anticipated timeframe for key deliverables outlined in the scope of work.

Communications Approach
Proposers should describe their recommended or preferred approach to project communications between the City and Consultant Team. This should include detail on the frequency of project check-ins, progress updates, and meeting locations (i.e. phone, email, in-person). Communications protocols for coordinating with other City departments, agencies, and the community can be established during individual project kick-offs. Consultant should have the capability to run virtual meetings.

Quality Assurance/Quality Control Approach
Describe the firm’s QA/QC processes that will be adhered to during the term of the agreement. Describe the Consultant’s method of ensuring that the assigned personnel’s quality of work is high.

4.2.5 Experience and Qualifications
Proposers should include in this section a summary of relevant projects, contact information for references, and information about the experience, qualifications, and availability of key personnel, described in greater detail below.

Summary of Relevant Projects
Proposers should highlight representative projects that are similar in scope to the services requested to demonstrate the firm’s depth of experience and familiarity with similar projects. For each project, please include the following information, at a minimum:
• Year started and completed (if relevant)
• Contracting Agency + Department
• Project Description
• Key Personnel Assigned
• Contract Value
References
Consultant must provide at least three (3) references for which consultant has provided services similar in scope as set forth in the RFP within the last five (5) years. Reference information should include:

RFP 25-005 City of Hermosa Beach

• Name of agency
• Name of agency project manager
• Email address and telephone number of contact person
• Description of project or services provided
Experience and Qualifications of Key Personnel
The consultant shall provide resumes indicating the experience and qualifications for the key personnel identified in the organization chart. Consultant shall also include the number and type of additional support personnel who will be providing services. At a minimum, the resume for each team member should include:
• Name
• Position and Role for This Project
• Degrees and Certifications
• Professional Memberships/Registrations
• Summary of Experience
• Work on Representative Project Similar in Scope
If sub-consultants are to be used as part of this proposal, a resume of the sub-consultant and relevant experience is to be included in the same format.

Assignment of Key Personnel
It is the City’s preference to have the key personnel identified in the Organizational Chart remain with the individual project during its duration. In this section, please indicate the availability of key personnel to pursue completion of projects.

After contract execution the Consultant should not substitute key personnel (project manager and others listed by name in the proposal) or sub-consultants without prior written approval from the local agency. The consultant must request and justify the need for the substitution and obtain approval from the agency prior to use of a different subconsultant on the contract. The proposed substituted person must be as qualified as the original, and at the same or lower cost for geotechnical types of consultant contracts, the Consultant’s project manager shall have all the necessary credentials to qualify him/her as a project manager for this project.

In the event there are proposed changes in key personnel, including sub-consultants, during the term of the agreement that are outside of the consulting firm’s control, the consultant shall prepare a transition plan that is presented to the City’s project manager for review.

RFP 25-005 City of Hermosa Beach

4.2.6 Required Forms
Consultant shall review, acknowledge and submit the following forms:
• Certification of Proposal. Consultant is required to sign and submit the Certification of Proposal including acknowledgement that they have received and considered any addendums issued by the City of Hermosa Beach in connection with this RFP. (See section 7.2.1)
• Non-Collusion Affidavit.Consultant is required to sign and submit the NonCollusion Affidavit. (See section 7.2.2) • Compliance with Insurance Requirements. Consultant shall demonstrate the willingness and ability to submit proof of the required insurance coverage as set forth in the Sample Professional Services Agreement. (See section 7.2.3) • Acknowledgement of Professional Services Agreement. Consultant shall demonstrate willingness and ability to comply with the City’s Sample Professional Services Agreement and/or indicate any exceptions to the Professional Services Agreement. (See section 7.2.4)

4.2.7 Cost Proposal
The cost proposal shall be submitted through PlanetBids Portal as a separate file, labeled “Cost Proposal” and indicate the firm’s name. The cost proposal shall detail costs broken down by project phase, task, hourly rates, and key personnel.

Consultant should provide the cost proposal for the duration of the agreement to successfully fulfill the Scope of Work detailed in this RFP. Required and optional tasks should be consistent with the tasks listed in the Scope of Services and be clearly marked in the cost proposal to facilitate consistent comparison of costs between proposals. The Cost Proposal should identify project team members, and hourly billing rates and break costs by task and phase. The fee schedule should also include any direct costs such as travel, equipment, printing/materials.

The method of payment shall be primarily at Specified Rates of Compensation but may include Cost per Unit of Work. The proposal should include hourly rates for all types of personnel required to perform the services described in this RFP.

Other direct costs, intended to be charged to the City, need to be stated. No mark-ups will be allowed for other direct costs.

5. Proposal Evaluation and Selection

RFP 25-005 City of Hermosa Beach

5.1 Proposal Review Process
The City will evaluate all proposals received in accordance with the evaluation criteria.

The City shall not be obligated to accept the lowest priced fee schedule, but the City may make award(s) in the best interests of the City after all factors are considered, including, but not limited to, the demonstrated competence, experience and professional qualifications of the Proposer. Evaluation scores will not be released until after award of proposal, if one is made.

Following the review of RFPs by the City’s team, the City may, if it chooses to do so, invite short-listed consultants to be interviewed by a panel of City staff, which may include noncity personnel at the City’s discretion. Discussions may, at the City's option, be conducted with the most qualified Proposers. Discussions may be for the purpose of clarification to assure full understanding of, and responsiveness to the solicitation requirements.

Proposers shall be accorded fair and equal treatment with respect to any opportunity for discussion and written revision of proposals. In conducting discussions, the City will not disclose information derived from proposals submitted by competing Proposers.

The City will verify references of short-listed consultants, which may include persons not listed as references, and this will help inform the City’s decisions. The City will select a consultant to negotiate for the performance of work. In negotiating the contract the City may request modifications to the proposed scope or to the technical team or other elements of the proposal. If negotiations fail, the City will commence negotiations with the next qualified candidate. Work will promptly commence following contract award and satisfaction of contract requirements.

5.2 Evaluation Criteria
Evaluation criteria will typically include RFP understanding, demonstrated expertise, relevant experience, availability of the firm ’s team, and other factors. Task orders resulting from this contract will be negotiated and executed between the City and the selected firm.

Proposals will be evaluated on the basis of their response to all provisions of this RFP. The City of Hermosa Beach will use the following criteria in its evaluation of proposals, interviews may be required with selected consultants, or verification of references. The categories will be weighted approximately as follows.

Approach and Methods (30%):
• A well thought-out and tailored approach to the technical work that responds to the City’s particular issues and needs.

RFP 25-005 City of Hermosa Beach

• Incorporation of innovative and/or creative approaches for providing the services that will maximize efficient, cost-effective operations or increased performance capabilities.
• Evidence of the team’s ability to work collaboratively with other members of a multi-disciplinary team in a complex and dynamic working environment. • Demonstration of the team’s commitment to accurate and superior work products and services as detailed in the project management project management plan.

Relevant Experience & Expertise (35%):
• Recent experience preparing similar projects or providing similar services for jurisdictions.
• Familiarity and experience with applicable industry standards and any relevant federal, state, or local requirements.
• The depth and appropriateness of experience of individual members of the technical team as they relate to the specific technical tasks called for by the project.
• The consultant team’s ability to dedicate a strong project manager that will serve as a single point of contact for the duration of the project. • The team’s experience and ability to clearly communicate technical concepts and terminology with the community.

Timeframe and Costs (25%):
• Display of responsive timeframe to assign tasks.
• Evidence of the team’s ability to successfully deliver project tasks and deliverables within the identified project budget and minimize cost overruns.

Administration (10%):
• Ability to comply with the timeline terms, and billing procedures. • The extent and nature of any proposed amendments to the City’s Professional Services Agreement.

6. Contract Expectations

6.1 Contract Period
The City anticipates the contract term would begin around October 2025.

RFP 25-005 City of Hermosa Beach

6.2 Professional Services Agreement
The selected consultant will be expected to comply with and sign the City’s Professional Services Agreement. Proposers should identify and/or indicate any exceptions to the Sample Professional Services Agreement included in Section 7.1. The City Attorney or their designee retains the discretion to accept or reject proposed exceptions or modifications to the City’s Professional Services Agreement.

6.3 Standards of Work
In case of conflicts, ambiguities, discrepancies, errors, or omissions, Consultant shall submit the matter to City for clarification. Any work affected by such conflicts, ambiguities, discrepancies, errors or omissions which is performed by Consultant prior to clarification by City shall be at Consultant's risk and expense.

6.4 Invoicing and Payment
Each invoice shall contain a progress report describing the work completed during the billing period and shall also include cost information by task regarding: previous work billed to date, work billed during the reporting period, percent of task completed and amount remaining by task.

Invoices are to be submitted monthly. The invoices shall reference the project title, and list charges by task, worker classification, hours, billing rate, and totals.

Each invoice shall contain a progress report describing the work completed during the billing period and the following summary information:

Contract
Amount
Total Prior
Contract Billings
Contract Work
Performed this
Period
Total Contract
Amount
Performed To
Date
Contract
Percent
Complete
Total Amount
Remaining for the
Contract

RFP 25-005 City of Hermosa Beach

7. Attachments and Required Forms

7.1 Sample Professional Services Agreement

CONTRACT FOR PROFESSIONAL SERVICES TO
________________________________________________________________ BETWEEN THE CITY OF HERMOSA BEACH AND ___________________________ This AGREEMENT is entered into this day of , 2025, by and between the CITY OF Hermosa Beach, a general law city a municipal corporation (“CITY”) and _, a limited liability company (“CONSULTANT”).

R E C I T A L S
A. The City desires to __________________________________________.

B. The City does not have the personnel able and/or available to perform the services required under this agreement and therefore, the City desires to contract for consulting services to accomplish this work.

C. The Consultant warrants to the City that it has the qualifications, experience and facilities to perform properly and timely the services under this Agreement.

D. The City desires to contract with the Consultant to perform the services as described in Exhibit A of this Agreement.

NOW, THEREFORE, based on the foregoing recitals, the City and the Consultant agree as follows:

CONSIDERATION AND COMPENSATION As partial consideration, CONSULTANT agrees to perform the work listed in the SCOPE OF SERVICES, attached as EXHIBIT A.

As additional consideration, CONSULTANT and CITY agree to abide by the terms and conditions contained in this Agreement.

As additional consideration, CITY agrees to pay CONSULTANT a not to exceed amount of $ , based on the hourly rates set forth in Exhibit A attached hereto and incorporated herein by reference for CONSULTANT’s services, unless otherwise specified by written amendment to this Agreement.

No additional compensation shall be paid for any other expenses incurred, unless first approved by the City Manager or his/her designee.

CONSULTANT shall submit to CITY, by not later than the 10th day of each month, its invoice for services itemizing the fees and costs incurred during the previous

RFP 25-005 City of Hermosa Beach

month. CITY shall pay CONSULTANT all uncontested amounts set forth in CONSULTANT’s invoice within 30 days after it is received.

SCOPE OF SERVICES. CONSULTANT will perform the services and activities set forth in the SCOPE OF SERVICE attached hereto as Exhibit A and incorporated herein by this reference.

Except as herein otherwise expressly specified to be furnished by CITY, CONSULTANT will, in a professional manner, furnish all of the labor, technical, administrative, professional and other personnel, all supplies and materials, equipment, printing, vehicles, transportation, office space, and facilities necessary or proper to perform and complete the work and provide the professional services required of CONSULTANT by this Agreement.

PAYMENTS. For CITY to pay CONSULTANT as specified by this Agreement, CONSULTANT must submit an invoice to CITY which lists the reimbursable costs, the specific tasks performed, and, for work that includes deliverables, the percentage of the task completed during the billing period in accordance with the schedule of compensation incorporated in “Exhibit A.”
TIME OF PERFORMANCE. The services of the CONTRACTOR are to commence upon receipt of a notice to proceed from the CITY and shall continue until all authorized work is completed to the CITY’s reasonable satisfaction, in accordance with the schedule incorporated in “Exhibit A,” unless extended in writing by the CITY.

FAMILIARITY WITH WORK. By executing this Agreement, CONSULTANT represents that CONSULTANT has (a) thoroughly investigated and considered the scope of services to be performed; (b) carefully considered how the services should be performed; and (c) understands the facilities, difficulties, and restrictions attending performance of the services under this Agreement.

KEY PERSONNEL. CONSULTANT’s key person assigned to perform work under this Agreement is ________________. CONSULTANT shall not assign another person to be in charge of the work contemplated by this Agreement without the prior written authorization of the City.

TERM OF AGREEMENT. The term of this Agreement shall commence upon execution by both parties and shall expire on __________, 20___, unless earlier termination occurs under Section 11 of this Agreement, or this Agreement is extended in writing in advance by both parties.

CHANGES. CITY may order changes in the services within the general scope of this Agreement, consisting of additions, deletions, or other revisions, and the contract sum and the contract time will be adjusted accordingly. All such changes must be authorized in writing, executed by CONSULTANT and CITY. The cost or credit to CITY resulting from changes in the services will be determined in accordance with written agreement between the parties.

RFP 25-005 City of Hermosa Beach

TAXPAYER IDENTIFICATION NUMBER. CONSULTANT will provide CITY with a Taxpayer Identification Number.

PERMITS AND LICENSES. CONTRACTOR will obtain and maintain during the term of this Agreement all necessary permits, licenses, and certificates that may be required in connection with the performance of services under this Agreement.

TERMINATION. Except as otherwise provided, CITY may terminate this Agreement at any time with or without cause. Notice of termination shall be in writing.

CONSULTANT may terminate this Agreement. Notice will be in writing at least 30 days before the effective termination date.

In the event of such termination, the CONTRACTOR shall cease services as of the date of termination, and all finished or unfinished documents, data, drawings, maps, and other materials prepared by CONSULTANT shall, at CITY’s option, become CITY’s property, and CONSULTANT will receive just and equitable compensation for any work satisfactorily completed up to the effective date of notice of termination.

Should the Agreement be terminated pursuant to this Section, CITY may procure on its own terms services similar to those terminated.

INDEMNIFICATION. To the extent permitted by law, CONSULTANT shall indemnify, and hold harmless CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable attorneys fees, expert fees and all other costs and fees of litigation) of every nature to the extent caused by CONSULTANT's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this AGREEMENT. CONSULTANT shall promptly pay any final judgment rendered against CITY (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of the CONSULTANT’s negligence, recklessness or willful misconduct. CONSULTANT shall reimburse the CITY its costs of defense, including without limitation reasonable attorneys fees, expert fees and all other costs and fees of litigation to the extent such fees, costs and all other costs are determined by the court of competent jurisdiction to have been caused by the actual negligence, recklessness or willful misconduct of the Consultant. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

The requirements as to the types and limits of insurance coverage to be maintained by CONSULTANT as required by Section 17, and any approval of said insurance by CITY, are not intended to and will not in any manner limit or qualify the liabilities and obligations otherwise assumed by CONSULTANT pursuant to this Agreement, including, without limitation, to the provisions concerning indemnification.

RFP 25-005 City of Hermosa Beach

ASSIGNABILITY. This Agreement is for CONSULTANT’s professional services.

CONSULTANT’s attempts to assign the benefits or burdens of this Agreement without CITY’s written approval are prohibited and will be null and void.

INDEPENDENT CONTRACTOR. CITY and CONSULTANT agree that CONSULTANT will act as an independent contractor and will have control of all work and the manner in which is it performed. CONSULTANT will be free to contract for similar service to be performed for other employers while under contract with CITY. CONSULTANT is not an agent or employee of CITY and is not entitled to participate in any pension plan, insurance, bonus or similar benefits CITY provides for its employees. Any provision in this Agreement that may appear to give CITY the right to direct CONSULTANT as to the details of doing the work or to exercise a measure of control over the work means that CONSULTANT will follow the direction of the CITY as to end results of the work only.

AUDIT OF RECORDS. CONSULTANT agrees that CITY, or designee, has the right to review, obtain, and copy all records pertaining to the performance of this Agreement. CONSULTANT agrees to provide CITY, or designee, with any relevant information requested and will permit CITY, or designee, access to its premises, upon reasonable notice, during normal business hours for the purpose of interviewing employees and inspecting and copying such books, records, accounts, and other material that may be relevant to a matter under investigation for the purpose of determining compliance with this Agreement. CONSULTANT further agrees to maintain such records for a period of three (3) years following final payment under this Agreement.

CONSULTANT will keep all books, records, accounts and documents pertaining to this Agreement separate from other activities unrelated to this Agreement.

CORRECTIVE MEASURES. CONSULTANT will promptly implement any corrective measures required by CITY regarding the requirements and obligations of this Agreement. CONSULTANT will be given a reasonable amount of time as determined by the City to implement said corrective measures. Failure of CONSULTANT to implement required corrective measures shall result in immediate termination of this Agreement.

INSURANCE REQUIREMENTS.

A. The CONSULTANT, at the CONSULTANT’s own cost and expense, shall procure and maintain, for the duration of the contract, the following insurance policies:

1. Workers Compensation Insurance as required by law. The Consultant shall require all subcontractors similarly to provide such compensation insurance for their respective employees. Any notice of cancellation or non-renewal of all Workers’ Compensation policies must be received by the CITY at least thirty (30) days prior to such change. The insurer shall agree to waive all rights of subrogation against the CITY, its officers, agents, employees, and volunteers for losses arising from work performed by the CONTRACTOR for City.

2. General Liability Coverage. The CONSULTANT shall maintain commercial general liability insurance in an amount of not less than two million dollars

RFP 25-005 City of Hermosa Beach

($2,000,000) per occurrence for bodily injury, personal injury, and property damage. If a commercial general liability insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit.

3. Automobile Liability Coverage. The CONSULTANT shall maintain automobile liability insurance covering bodily injury and property damage for all activities of the CONSULTANT arising out of or in connection with the work to be performed under this Agreement, including coverage for owned, hired, and non-owned vehicles, in an amount of not less than one million dollars ($1,000,000) combined single limit for each occurrence.

4. Professional Liability Coverage. The CONSULTANT shall maintain professional errors and omissions liability insurance for protection against claims alleging negligent acts, errors, or omissions which may arise from the CONSULTANT’S operations under this Agreement, whether such operations be by the CONSULTANT or by its employees, subcontractors, or sub-consultants. The amount of this insurance shall not be less than one million dollars ($1,000,000) on a claims-made annual aggregate basis, or a combined single-limit-peroccurrence basis. When coverage is provided on a “claims made basis,” CONSULTANT will continue to renew the insurance for a period of three (3) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONSULTANT for all claims made by CITY arising out of any errors or omissions of CONSULTANT, or its officers, employees or agents during the time this Agreement was in effect.

B. Endorsements. Each general liability, automobile liability and professional liability insurance policy shall be issued by a financially responsible insurance company or companies admitted and authorized to do business in the State of California, or which is approved in writing by City, and shall be endorsed as follows.

CONSULTANT also agrees to require all contractors, and subcontractors to do likewise.

1. “The CITY, its elected or appointed officers, officials, employees, agents, and volunteers are to be covered as additional insureds with respect to liability arising out of work performed by or on behalf of the CONSULTANT, including materials, parts, or equipment furnished in connection with such work or operations.”

2. This policy shall be considered primary insurance as respects the CITY, its elected or appointed officers, officials, employees, agents, and volunteers.

Any insurance maintained by the CITY, including any self-insured retention the CITY may have, shall be considered excess insurance only and shall not contribute with this policy.

3. This insurance shall act for each insured and additional insured as though a separate policy had been written for each, except with respect to the limits of liability of the insuring company.

RFP 25-005 City of Hermosa Beach

4. The insurer waives all rights of subrogation against the CITY, its elected or appointed officers, officials, employees, or agents.

5. Any failure to comply with reporting provisions of the policies shall not affect coverage provided to the City, its elected or appointed officers, officials, employees, agents, or volunteers.

6. The insurance provided by this policy shall not be suspended, voided, canceled, or reduced in coverage or in limits except after thirty (30) days written notice has been received by the CITY.

C. CONSULTANT agrees to provide immediate notice to CITY of any claim or loss against Contractor arising out of the work performed under this agreement. CITY assumes no obligation or liability by such notice, but has the right (but not the duty) to monitor the handling of any such claim or claims if they are likely to involve CITY.

D. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the CITY’s option, the CONSULTANT shall demonstrate financial capability for payment of such deductibles or self-insured retentions.

E. The CONSULTANT shall provide certificates of insurance with original endorsements to the CITY as evidence of the insurance coverage required herein. Certificates of such insurance shall be filed with the CITY on or before commencement of performance of this Agreement. Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement.

F. Failure on the part of the CONSULTANT to procure or maintain required insurance shall constitute a material breach of contract under which the CITY may terminate this Agreement pursuant to Section 11 above.

G. The commercial general and automobile liability policies required by this Agreement shall allow City, as additional insured, to satisfy the self-insured retention (“SIR”) and/or deductible of the policy in lieu of the Consultant (as the named insured) should Consultant fail to pay the SIR or deductible requirements.

The amount of the SIR or deductible shall be subject to the approval of the City Attorney and the Finance Director. Consultant understands and agrees that satisfaction of this requirement is an express condition precedent to the effectiveness of this Agreement. Failure by Consultant as primary insured to pay its SIR or deductible constitutes a material breach of this Agreement. Should City pay the SIR or deductible on Consultant’s behalf upon the Consultant’s failure or refusal to do so in order to secure defense and indemnification as an additional insured under the policy, City may include such amounts as damages in any action against Consultant for breach of this Agreement in addition to any other damages incurred by City due to the breach.

USE OF OTHER CONSULTANTS. CONSULTANT must obtain CITY’s prior written approval to use any sub-consultants while performing any portion of this Agreement. Such approval must include approval of the proposed consultant and the terms of compensation.

FINAL PAYMENT ACCEPTANCE CONSTITUTES RELEASE. The acceptance by the CONSULTANT of the final payment made under this Agreement shall operate as and be a release of the CITY from all claims and liabilities for compensation to the CONSULTANT for anything done, furnished or relating to the CONSULTANT’S work or

RFP 25-005 City of Hermosa Beach

services. Acceptance of payment shall be any negotiation of the CITY’S check or the failure to make a written extra compensation claim within ten (10) calendar days of the receipt of that check. However, approval or payment by the CITY shall not constitute, nor be deemed, a release of the responsibility and liability of the CONSULTANT, its employees, sub-consultants and agents for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by the CITY for any defect or error in the work prepared by the Consultant, its employees, sub-consultants and agents.

CORRECTIONS. In addition to the above indemnification obligations, the CONSULTANT shall correct, at its expense, all errors in the work which may be disclosed during the City’s review of the Consultant’s report or plans. Should the Consultant fail to make such correction in a reasonably timely manner, such correction shall be made by the CITY, and the cost thereof shall be charged to the CONSULTANT. In addition to all other available remedies, the City may deduct the cost of such correction from any retention amount held by the City or may withhold payment otherwise owed CONSULTANT under this Agreement up to the amount of the cost of correction.

NON-APPROPRIATION OF FUNDS. Payments to be made to CONSULTANT by CITY for services preformed within the current fiscal year are within the current fiscal budget and within an available, unexhausted fund. In the event that CITY does not appropriate sufficient funds for payment of CONSULTANT’S services beyond the current fiscal year, the Agreement shall cover payment for CONSULTANT’S services only to the conclusion of the last fiscal year in which CITY appropriates sufficient funds and shall automatically terminate at the conclusion of such fiscal year.

NOTICES. All communications to either party by the other party will be deemed made when received by such party at its respective name and address as follows:

CITY CONSULTANT
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254
ATTN: ATTN:

Any such written communications by mail will be conclusively deemed to have been received by the addressee upon deposit thereof in the United States Mail, postage prepaid and properly addressed as noted above. In all other instances, notices will be deemed given at the time of actual delivery. Changes may be made in the names or addresses of persons to whom notices are to be given by giving notice in

RFP 25-005 City of Hermosa Beach

the manner prescribed in this paragraph. Courtesy copies of notices may be sent via electronic mail, provided that the original notice is deposited in the U.S. mail or personally delivered as specified in this Section.

A. SOLICITATION. CONSULTANT maintains and warrants that it has not employed nor retained any company or person, other than CONSULTANT’s bona fide employee, to solicit or secure this Agreement. Further, CONSULTANT warrants that it has not paid nor has it agreed to pay any company or person, other than CONSULTANT’s bona fide employee, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Should CONSULTANT breach or violate this warranty, CITY may rescind this Agreement without liability.

B. THIRD PARTY BENEFICIARIES. This Agreement and every provision herein is generally for the exclusive benefit of CONSULTANT and CITY and not for the benefit of any other party. There will be no incidental or other beneficiaries of any of CONSULTANT’s or CITY’s obligations under this Agreement.

C. INTERPRETATION. This Agreement was drafted in, and will be construed in accordance with the laws of the State of California, and exclusive venue for any action involving this agreement will be in Los Angeles County.

D. ENTIRE AGREEMENT. This Agreement, and its Attachments, sets forth the entire understanding of the parties. There are no other understandings, terms or other agreements expressed or implied, oral or written.

E. RULES OF CONSTRUCTION. Each Party had the opportunity to independently review this Agreement with legal counsel. Accordingly, this Agreement will be construed simply, as a whole, and in accordance with its fair meaning; it will not be interpreted strictly for or against either Party.

F. AUTHORITY/MODIFICATION. The Parties represent and warrant that all necessary action has been taken by the Parties to authorize the undersigned to execute this Agreement and to engage in the actions described herein. This Agreement may be modified by written amendment with signatures of all parties to this Agreement. CITY’s city manager, or designee, may execute any such amendment on behalf of CITY.

ACCEPTANCE OF FACSIMILE OR ELECTRONIC SIGNATURES. The Parties agree that this Contract, agreements ancillary to this Contract, and related documents to be entered into in connection with this Contract will be considered signed when the signature of a party is delivered by facsimile transmission or scanned and delivered via electronic mail. Such facsimile or electronic mail copies will be treated in all respects as having the same effect as an original signature.

FORCE MAJEURE. Should performance of this Agreement be impossible due to fire, flood, explosion, war, embargo, government action, civil or military authority, the

RFP 25-005 City of Hermosa Beach

natural elements, or other similar causes beyond the Parties’ control, then the Agreement will immediately terminate without obligation of either party to the other.

TIME IS OF ESSENCE. Time is of the essence to comply with dates and schedules to be provided.

ATTORNEY’S FEES. The parties hereto acknowledge and agree that each will bear his or its own costs, expenses and attorneys' fees arising out of and/or connected with the negotiation, drafting and execution of the Agreement, and all matters arising out of or connected therewith except that, in the event any action is brought by any party hereto to enforce this Agreement, the prevailing party in such action shall be entitled to reasonable attorneys' fees and costs in addition to all other relief to which that party or those parties may be entitled.

STATEMENT OF EXPERIENCE. By executing this Agreement, CONSULTANT represents that it has demonstrated trustworthiness and possesses the quality, fitness and capacity to perform the Agreement in a manner satisfactory to CITY. CONSULTANT represents that its financial resources, surety and insurance experience, service experience, completion ability, personnel, current workload, experience in dealing with private consultants, and experience in dealing with public agencies all suggest that CONSULTANT is capable of performing the proposed contract and has a demonstrated capacity to deal fairly and effectively with and to satisfy a public agency.

OWNERSHIP OF DOCUMENTS. It is understood and agreed that the City shall own all documents and other work product of the Consultant, except the Consultant’s notes and workpapers, which pertain to the work performed under this Agreement. The City shall have the sole right to use such materials in its discretion and without further compensation to the Consultant, but any re-use of such documents by the City on any other project without prior written consent of the Consultant shall be at the sole risk of the City.

USE OF LOGO. The CITY grants the CONSULTANT permission to use its name, logo and/or trademark in deliverables produced by the CONSULTANT on the behalf of the CITY, such as written reports, presentation slides, press releases, social media graphics, and other public outreach materials. The CITY’s prior review of artwork and written approval is required for any use of CITY logo. CITY will provide an electronic copy of the most current logo to the CONSULTANT for use in materials. The CONSULTANT will, in turn, only use the most current logo of the CITY.

DISCLOSURE REQUIRED. (City and Consultant initials required at one of the following paragraphs)
By their respective initials next to this paragraph, City and Consultant hereby acknowledge that Consultant is a “consultant” for the purposes of the California Political Reform Act because Consultant’s duties would require him or her to make one or more of the governmental decisions set forth in Fair Political Practices Commission Regulation 18700.3(a) or otherwise serves in a staff capacity for which disclosure would otherwise be

RFP 25-005 City of Hermosa Beach

required were Consultant employed by the City. Consultant hereby acknowledges his or her assuming-office, annual, and leaving-office financial reporting obligations under the California Political Reform Act and the City’s Conflict of Interest Code and agrees to comply with those obligations at his or her expense. Prior to consultant commencing services hereunder, the City’s Manager shall prepare and deliver to consultant a memorandum detailing the extent of Consultant’s disclosure obligations in accordance with the City’s Conflict of Interest Code.

City Initials ______
Consultant Initials ______
OR
By their initials next to this paragraph, City and Consultant hereby acknowledge that Consultant is not a “consultant” for the purpose of the California Political Reform Act because Consultant’s duties and responsibilities are not within the scope of the definition of consultant in Fair Political Practice Commission Regulation 18700.3(a) and is otherwise not serving in staff capacity in accordance with the City’s Conflict of Interest Code.

City Initials ______
Consultant Initials ______
IN WITNESS WHEREOF the parties hereto have executed this contract the day and year first hereinabove written.

CITY OF HERMOSA BEACH CONSULTANT
[MAYOR/CITY MANAGER] By: NAME/TITLE
ATTEST:

Myra Maravilla, City Clerk Taxpayer ID No.

APPROVED AS TO FORM:

RFP 25-005 City of Hermosa Beach

Todd Leishman, Interim City Attorney

RFP 25-005 City of Hermosa Beach

7.2 Required Forms

7.2.1 Certification of Proposal
RFP #: _________
The undersigned hereby submits its proposal and agrees to be bound by the terms and conditions of this Request for Proposal (RFP).

1. Proposer declares and warrants that no elected or appointed official, officer or employee of the City has been or shall be compensated, directly or indirectly, in connection with this proposal or any work connected with this proposal. Should any agreement be approved in connection with this Request for Proposal, Proposer declares and warrants that no elected or appointed official, officer or employee of the City, during the term of his/her service with the City shall have any direct interest in that agreement, or obtain any present, anticipated or future material benefit arising therefrom.

2. By submitting the response to this request, Proposer agrees, if selected to furnish services to the City in accordance with this RFP.

3. Proposer has carefully reviewed its proposal and understands and agrees that the City is not responsible for any errors or omissions on the part of the Proposer and that the Proposer is responsible for them.

4. It is understood and agreed that the City reserves the right to accept or reject any or all proposals and to waive any informality or irregularity in any proposal received by the City.

5. The proposal response includes all of the commentary, figures and data required by the Request for Proposal

6. The proposal shall be valid for 90 days from the date of submittal.

7. Proposer acknowledges that the City may issue addendums related to this RFP and that the proposer has reviewed the following addendums which have been issued:

Addendum: _____________________________
Addendum: _____________________________
Addendum: _____________________________
Addendum: _____________________________

8. Proposer further acknowledges the provisions of any addendums issued have been incorporated into their proposal.

RFP 25-005 City of Hermosa Beach

Signature of Authorized Representative:
____________________________________________
Printed Name and Title:
____________________________________________

RFP 25-005 City of Hermosa Beach

7.2.2 Non-Collusion Affidavit
RFP #: _________
The undersigned declares states and certifies that:

1. This proposal is not made in the interest of or on behalf of any undisclosed person, partnership, company, association, organization or corporation.

2. This proposal is genuine and not collusive or sham.

3. I have not directly or indirectly induced or solicited any other Proposer to put in a false or sham proposal and I have not directly or indirectly colluded, conspired, connived, or agreed with any other Proposer or anyone else to put in a sham proposal or to refrain from submitting to this RFP.

4. I have not in any manner, directly or indirectly, sought by agreement, communication, or conference with anyone to fix the proposal price or to fix any overhead, profit or cost element of the proposal price or to secure any advantage against the City of Hermosa Beach or of anyone interested in the proposed contract.

5. All statements contained in the Proposal and related documents are true.

6. I have not directly or indirectly submitted the proposal price or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid, and will not pay, any fee to any person, corporation, partnership, company, association, organization, RFP depository, or to any member or agent thereof, to effectuate a collusive or sham proposal.

7. I have not entered into any arrangement or agreement with any City of Hermosa Beach public officer in connection with this proposal.

8. I understand collusive bidding is a violation of State and Federal law and can result in fines, prison sentences, and civil damage awards.

Signature of Authorized Representative:
____________________________________________
Printed Name and Title:
____________________________________________

RFP 25-005 City of Hermosa Beach

7.2.3 Compliance with Insurance Requirements
RFP #: _________
The selected consultant will be expected to comply with the City s insurance requirements contained within this RFP.

The undersigned declares states and certifies that:

1. Proposer agrees, acknowledges and is fully aware of the insurance requirements as specified in the Request for Proposal.

2. If selected, proposer agrees to accept all conditions and requirements as contained therein.

Signature of Authorized Representative:
____________________________________________
Printed Name and Title:
____________________________________________

RFP 25-005 City of Hermosa Beach

7.2.4 Acknowledgement of Professional Services Agreement RFP #: _________
The selected consultant will be expected to comply with and sign the City s Professional Services Agreement. Proposers should identify and/or indicate any exceptions to the Sample Professional Services Agreement included in Section 6.2. The City Attorney or their designee retains the discretion to accept or reject proposed exceptions or modifications to the City s Professional Services Agreement.

1. Proposer agrees, acknowledges and is fully aware of the conditions specified in the City’s Sample Professional Services Agreement.

2. Proposer agrees to accept all conditions and requirements as contained therein with exceptions noted as follows:
______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ______________________________________________________________________________ ________________________________________________
Signature of Authorized Representative:
____________________________________________
Printed Name and Title:
____________________________________________

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REC TECHNOLOGIES INC.

PLATFORM SERVICES AGREEMENT

RECITALS
City maintains and offers to its residents certain recreational facilities and programs, and desires a software services platform to allow for booking of facilities and classes, and payment of facility and program fees.

Rec operates a proprietary technology platform (“Rec Platform”) that “powers’ the coordination, scheduling, and use of such facilities and programming and allows Rec Platform resident users to view schedules and guidelines, reserve facilities, and purchase lessons and other programming offered by the City.

City and Rec share the goal of increasing community participation. City desires to make its facilities and programming offerings available to residents and to otherwise take advantage of the administrative, scheduling, and transactional, and marketing functions of the Rec Platform to help get the local community active. Rec also desires to give City access to the Rec Platform in a way that improves the day-to-day operations for the City.

This Services Agreement (“Agreement”) is made as of October 28, 2025 (the “Effective Date”), by and between Hermosa Beach (“City”) and Rec Technologies Inc. (“Rec”). City and Rec are referred to herein collectively as the “Parties,” and each as a “Party.”
This Agreement is comprised of the following General Service Terms and Schedules which are incorporated into and made a part of this Agreement:

The General Service Terms
Schedule 1 (Project Plan)
Schedule 2 (Fee Schedule)
Schedule 3 (Marketing & Promotional Commitments)
Schedule 4 (Insurance)
Schedule 5 (Scope of Work)
Schedule 6 (Information Security Requirements of Third Party Providers)

1. Definitions.

1.1. City-Staff User means a named individual who is an employee, consultant, contractor or agent of City and who is authorized by City to administer City’s use of the Rec Platform and who has been supplied user identifications and passwords.

1.2. Confidential Information means any and all non-public information disclosed by either Party (the “Disclosing Party”) to the other (the “Receiving Party”), which is marked “confidential” or “proprietary” or which should reasonably be understood by the Receiving Party to be confidential

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or proprietary. Rec acknowledges the City is required to comply with information disclosures required by the California Public Records Act (California Government Code Section 7920 et seq.). City acknowledges Rec’s right to protection of its proprietary intellectual property rights.

1.3. Customer Data means all data and information submitted to the Rec Platform under an account of a City-Staff User.

1.4. Documentation means the written instructions or manuals, including any updates thereto provided by Rec that describe the features of the Services. Documentation may be more fully described in the applicable Order Form.

1.5. Intellectual Property Rights means any intellectual property or proprietary rights, rights of privacy or publicity, including but not limited to copyright rights, moral rights, trademarks (including logos, slogans, trade names, service marks), patent rights (including patent applications and disclosures), know-how, inventions, rights of priority, and trade secret rights, recognized in any country or jurisdiction in the world.

1.6. Resident Participant Data means personal profiles of individuals who use the Rec Platform to purchase access to facilities or programming offered by City.

1.7. Service(s) means the interactive platform and solution known as the Rec Platform and related implementation, support, marketing, and professional services provided by Rec.

2. Platform Services and Other Obligations.

2.1. Rec Platform. Rec owns and operates a proprietary technology platform (the “Rec Platform”) that powers the management and use of facilities such as racquet courts, sports fields, aquatics centers and other recreational spaces, which may include opportunities for Rec’s authorized users to view schedules and play guidelines, book programming and reserve such spaces for recreational use, lessons, and other facilitated or unfacilitated activities (collectively, the “Services”). City shall be entitled to the Services set forth in Schedule 1 (attached hereto) at the negotiated rates set forth in Schedule 2 (attached hereto). In addition to the Services set forth in Schedule 1, City may also opt in to additional services as approved in writing (via amendment) by the Parties hereto. Use of the premises and the Services shall at all times be subject to City’s terms of use, as defined in this Agreement.

2.1.1.Access. Subject to the terms and conditions of this Agreement, during Term (defined below) Rec will permit City-Staff Users to access and use the most recently updated version of the Rec Platform for its internal purposes. Such access is given on a non-exclusive, nontransferable and non-sublicensable basis.

2.1.2.Restrictions. City will not, and will not allow any third party to (a) modify, copy, or otherwise reproduce the Rec Platform or content available therein in whole or in part except as may otherwise be agreed by the parties in writing; (b) reverse engineer, decompile, disassemble, or otherwise attempt to derive the source code form or structure of the software used in the Rec Platform; (c) provide, lease or lend the Rec Platform to any third party except as expressly authorized hereunder; (d) remove any proprietary notices or labels displayed on the Rec Platform; (e) modify or create a derivative work of any part of the Rec Platform; (f) use the Rec Platform for any unlawful purpose, or (g) “frame” or “mirror” any of Rec’s content which forms part of the Rec Platform.

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2.1.3.Implementation. The Parties will perform their respective obligations concerning implementation as set forth in Schedule 1 (Project Plan) and Schedule 5 (Scope of Work).

2.1.4.Support. During the Term, Rec will provide the Support described in Schedule 1 (Project Plan).

2.1.5.Uptime Levels. The service level of the Rec Platform within Rec’s control is the availability of the Rec Platform, not, for example, the transmission of data over the public Internet. Rec will make commercially reasonable efforts to make the Rec Platform available 24 hours a day, 7 days a week, except for: (i) planned maintenance periods or (ii) any unavailability caused by circumstances beyond its reasonable control, including without limitation, acts of God, acts of government, floods, fires, earthquakes, civil unrest, acts of terror, strikes or other labor problems, third-party service provider failures or delays, or denial of service attacks.

2.1.6.Point of Sale Hardware. The parties will perform their respective obligations concerning the provisioning of point-of-sale hardware as set forth in Schedule 1 (Project Plan).

2.1.7. Nature of Services. The Parties acknowledge and agree that Rec is providing City access to commercially available, off-the-shelf software (the “Rec Platform”) delivered as a hosted software-as-a-service (“SaaS”) solution. The Parties further agree this Agreement does not constitute a professional-services or work-for-hire arrangement, and no ownership of any software, source code, or related intellectual property transfers to City.

2.2. Marketing. The Parties will perform their respective obligations concerning marketing activities as set forth in Schedule 3 (Marketing & Promotional Efforts).

2.3. Insurance. Rec will perform its obligations concerning insurance coverage as set forth in Schedule 4 (Insurance).

2.4. Business License. Prior to beginning to perform the Services, Rec will obtain a City of Hermosa Beach Business License.

2.5. Rec’s Accounting Records; Other Records. Rec must keep and maintain accurate books and records at its principal place of business concerning the performance of services pursuant to this Agreement, including but not limited to records of accounts between City and Rec, specifications and drawings relating to the services, and progress and inspection reports concerning the work performed. The City and/or its duly authorized legal or accounting representative (including independent certified public accountants), will have the right during regular business hours to inspect Rec’s books and records that relate to the performance of services pursuant to this Agreement and to make copies of that information at the City’s expense, Rec will maintain these records for at least three years after final payment.

3. Fees.

3.1. City will pay Rec the annual license and service fee and other charges (“fees”) set forth in Schedule 2 (Fee Schedule). Payment obligations are non-cancelable and fees paid are nonrefundable. All Fees are exclusive of taxes, excluding taxes on Rec’s income.

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3.2. Changes to Services. City and Rec shall each have the right to, by written notice to the other Party (any such notice, a “Change Order”), request changes the nature or extent of the work covered by the Agreement, or the drawings and specifications related to the work, or to request to suspend all or a portion of the work. Upon receipt of any such Change Order, the receiving Party agrees to promptly review the Change Order, discuss with the other Party what would be required to implement the requested changes, negotiate the requested changes with the requesting Party, and, if changes to the Agreement or Services are accepted and either Party deems appropriate, negotiate an amendment and/or addendum to the Agreement to reflect the agreed upon changes to the work covered by the Agreement. For the avoidance of doubt, nothing in this “Changes to Services” Section or otherwise in this Agreement shall require either Party to accept or implement a Change Order or the requested changes therein. Unless otherwise set forth in this Agreement, any changes to Fees or the agreed upon fee schedule must be agreed to in writing by both Parties.

4. Proprietary Rights.

4.1. Ownership. Except as expressly set forth herein or a separate written agreement, as between the Parties, Rec and its licensors own all rights, including Intellectual Property Rights, in the Services and any information included therein (not including any Customer Data), including software and other technology underlying the Services and any individual user account data and records and including any modifications, enhancements, customizations, updates, revisions or derivative works of the Services or such technology or information. No transfer of ownership will occur under this Agreement. All rights not expressly granted to City are reserved by Rec. Except as expressly set forth herein or in a separate written agreement, as between the Parties, City owns all worldwide right, title and interest in and to all Customer Data and Rec will not obtain any ownership rights or interests in such data. City hereby grants to Rec a non-exclusive license to use, reproduce, modify and distribute copies of and make available the Customer Data, and to sublicense such rights, as is necessary to provide the Rec Platform to City and its participant residents.

4.2. Feedback. City may, from time to time, submit to Rec comments, information, questions, data, ideas, description of processes, or other information (“Feedback”). For any and all Feedback, City grants to Rec a non-exclusive, worldwide, perpetual, irrevocable license to use, exploit, reproduce, incorporate, distribute, disclose, and sublicense any Feedback. City represents that it holds all intellectual or proprietary rights necessary to grant to Rec such license, and that the Feedback will not violate the personal, proprietary or intellectual property rights of any third party.

4.3. Aggregated Data. All other provisions of this Agreement notwithstanding, Rec may collect and aggregate data derived from the operation of the Services (“Aggregated Data”), and Rec may use and disclose such Aggregated Data for purposes of operating its business, monitoring performance of the Services, and improving products and services. Use and disclosure of Aggregated Data by Rec will not reveal any Confidential Information or personally identifiable information. Aggregated Data is the property of Rec. Aggregated Data will be non-personally identifiable.

5. Confidentiality and Security.

5.1. Confidential Information. Each Party hereby agrees that it will not use or disclose any Confidential Information received from the other Party other than as expressly permitted under

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the terms of the Agreement, California Government Code Section 7920 et seq., or as expressly authorized in writing by the other Party. Each Party will use the same degree of care to protect the other Party’s Confidential Information as it uses to protect its own confidential information of like nature, but in no circumstances less than reasonable care. Neither Party will disclose the other Party’s Confidential Information to any third-party other than its officers, principals, employees, subcontractors, and vendors who need access to such Confidential Information in order to achieve the intent of this Agreement and who are bound by confidentiality terms no less restrictive than those in this Agreement.

5.2. Exceptions. The restrictions set forth in Section 5.1 will not apply to any Confidential Information that the Receiving Party can demonstrate (a) was known to it prior to its disclosure by the Disclosing Party; (b) is or becomes publicly known through no wrongful act of the Receiving Party; (c) has been rightfully received from a third party authorized to make such disclosure without restriction; (d) is independently developed by the Receiving Party; (e) has been approved for release by the Disclosing Party’s prior written authorization; or (f) has been disclosed by court order or as otherwise required by law or statute, provided that the Party required to disclose the information provides prompt advance notice thereof, to the extent practicable, to enable the Disclosing Party to seek a protective order or otherwise prevent such disclosure.

5.3. Injunctive Relief. The Parties agree that a breach of Section 5.1 may cause irreparable damage which money cannot satisfactorily remedy and therefore, the Parties agree that in addition to any other remedies available at law or hereunder, the Disclosing Party will be entitled to seek injunctive relief for any threatened or actual disclosure by the Receiving Party.

5.4. Customer Data. Customer Data shall be treated as Confidential Information under this Agreement.

5.5. Resident Participant Data. During the Term and thereafter, subject to consent by the end user, Rec will only re-sell, share, or disclose to any third-party any individual Resident Participant Data or use the Resident Participant Data for the provision of the Rec Platform to City and the applicable resident participants. Rec will not re-sell, share, or disclose to any third-party any individual Resident Participant Data or use the Resident Participant Data for purposes other than provision of the Rec Platform to City and the applicable resident participants. Notwithstanding anything to the contrary, during the Term and thereafter Rec may use, display, distribute and transmit Resident Participant Data: (a) to transact with individual users through the Rec Platform; (b) for purposes of communicating with individual users of the Rec Platform concerning offerings and opportunities available within the Rec Platform; (c) in non-personally-identifiable aggregated form for the purposes of monitoring, operating, evaluating and improving its products and services; (d) as otherwise individually consented to by the applicable individual user of the Rec Platform, and (e) for purposes of enabling Rec to provide customer support and communications to users regarding booking information, payment issues, user feedback or matching with additional offerings on Rec. All use of Resident Participant Data by Rec will be in compliance with applicable law.

5.6. Security and Privacy. Rec uses commercially reasonable practices, including encryption and firewalls, to ensure that non-public Customer Data is disclosed only to City and City-Staff Users.

Rec will secure Customer and Resident Participant Data in compliance with all applicable laws and industry standards for similarly situated service providers, and other legal obligations associated with the collection, use, and disclosure of personal information. Rec will abide by all

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applicable laws relating to data privacy and identity theft which may include but are not limited to California 58 1386, California Civil Code 1398, the Personal Data Privacy and Security Act, the Identity Theft Protection Act, the Information Protection and Security Act, EU General Data Protection Regulation, and the Consumer Data Security and Notification Act. Affected users will be notified by Rec of any breach of security involving their personal information as required by applicable laws. All users of the Rec Platform will be assigned a unique user name and password.

Access to the Rec Platform will electronically log user name, date and time. As soon as practicable, but in no event later than as required by applicable law, Rec will notify City regarding all identified security breaches that compromise non-public Customer Data. This notification must include the date and time of the breach or unauthorized access, nature of the security breach, what Customer Data was accessed or vulnerable to the breach, and what Rec has done in response to the event. Summaries of security practices and measures taken to ensure the security of Customer Data, the Rec Platform and its users must be documented and provided to City within a reasonable period following City’s written request. Rec will use commercially reasonable efforts to ensure virus, worm, Trojan horse, and other hostile software detection and control is frequently updated in accordance with industry standards.

5.6.1.Rec agrees to implement all requirements of the City of Hermosa Beach Information Security Requirements of Third Party Service Providers (Third Party Service Provider Requirements), as set forth on Schedule 6 hereto.

5.7. Security and Privacy Reports. City will be able to request updated reports for security and compliance purposes. These reports can include internal security assessments, SOC reports, and any 3rd party assessments completed on Rec’s in-use systems.

5.8. City Passwords. As part of the registration process, City will select passwords for accounts. City is responsible for maintaining the confidentiality of passwords, and City agrees that Rec has no liability with regard to the use of such passwords by third parties. City agrees to notify Rec immediately if City has any reason to believe that the security of City’s account has been compromised. City-Staff will be asked to log-in via mutually agreed upon multi-factor authentication (“MFA”) process via phone or email within 30 days of initial launch of Rec Platform.

5.9. Resident Participant Passwords. As part of the registration process, resident participants will select passwords for accounts. Resident participants will be given the option to enable MFA for added security for their Participant information.

6. Term & Termination.

6.1. Term and Renewals. This Agreement will remain in effect for a period of 2 years, unless terminated sooner in accordance with its terms (“Initial Term”). Unless otherwise set forth herein, upon expiration of the Initial Term, this Agreement will automatically renew for additional consecutive 1-year periods (each a “Renewal Term,” and collectively with the Initial Term, the “Term”), unless and until a Party gives the other written notice of non-renewal at least 90 days prior to the end of the then-current term. Unless otherwise agreed, Fees during any Renewal Term will be the same as that during the prior term unless Rec provides Customer with notice of a pricing change, in which case the pricing change shall be effective during the Renewal Term unless Customer gives notice of non-renewal prior to the beginning of the Renewal Term.

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Termination for Cause. Either Party may terminate this Agreement upon thirty (30) days’ written notice if the other Party materially breaches this Agreement and fails to cure such breach within that thirty-day period after written notice.

6.1.1.Other Termination Events. Either Party may terminate this Agreement immediately if the other Party (i) makes a general assignment for the benefit of creditors, (ii) is adjudicated as bankrupt or insolvent, or (iii) commences a case under applicable bankruptcy laws.

6.2. Effect of Termination. Upon expiration or termination of this Agreement, City’s City-Staff Users’ right to access and use the Rec Platform will immediately terminate, City will immediately cease all use of the Rec Platform, and each Party will return or destroy and make no further use of any Confidential Information, materials, or other items (and all copies thereof) belonging to the other Party. Rec may destroy or otherwise dispose of any Customer Data in its possession unless Rec receives, no later than 10 days after the effective date of the expiration or termination of this Agreement, a written request that Rec continue to allow City access to Customer Data within the Rec Platform for a period of up to 30 days. Upon such request, Rec will use reasonable efforts to permit such access.

6.3. Survival. The rights and obligations of Rec and City contained in Sections 1 (Definitions), 2.1.2 (Restrictions), 3 (Fees), 4 (Proprietary Rights), 5 (Confidentiality and Security), but only with respect to Confidential Information disclosed during the Term, 6.3 (Effect of Termination), 7.3 (Disclaimer of Warranties), 8 (Indemnification), 9 (Limitation of Liability), and 10 (Miscellaneous Provisions) survive any expiration or termination of this Agreement.

7. Warranties.

7.1. Authority. Each Party represents to the other that it is a valid legal entity and is in good standing or validly existing under the laws of the state of its formation and residence. Each Party represents that it has all the requisite legal power and authority to execute, deliver and perform its obligations under the Agreement; that the execution, delivery and performance of the Agreement has been duly authorized; that the Agreement is enforceable in accordance with its terms; and that no approval, authorization or consent of any governmental or regulatory authorities is required to be obtained or made in order for it to enter into and perform its obligations under the Agreement.

7.2. Limited Warranty. Rec warrants that, during the Term, (i) the Rec Platform will perform materially in accordance with the terms of this Agreement and applicable Documentation and that Rec will not materially decrease the functionality of the Rec Platform and (ii) any professional, marketing or other similar Services provided by Rec hereunder will be performed in a professional and workmanlike manner. In the event of a breach of the foregoing warranty, City’s exclusive remedy shall be to request Rec assistance, correction, and re-performance through Rec’s support programs available to City under this Agreement. The foregoing limited warranty does not apply to access to beta or pre-release versions of the Rec Platform or access otherwise provided free of charge by Rec.

7.3. DISCLAIMER OF WARRANTIES. EXCEPT FOR THE LIMITED PERFORMANCE

WARRANTY STATED ABOVE, REC AND ITS AFFILIATES AND SUPPLIERS DO NOT REPRESENT THAT CUSTOMER’S USE OF THE SERVICES WILL BE SECURE, TIMELY,

UNINTERRUPTED OR ERROR-FREE OR THAT THE SERVICES WILL MEET CUSTOMER’S REQUIREMENTS OR THAT ALL ERRORS IN THE SERVICES OR

DOCUMENTATION WILL BE CORRECTED OR THAT THE OVERALL SYSTEM THAT

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MAKES THE SERVICES AVAILABLE (INCLUDING BUT NOT LIMITED TO THE INTERNET, OTHER TRANSMISSION NETWORKS, AND CUSTOMER’S LOCAL

NETWORK AND EQUIPMENT) WILL BE FREE OF VIRUSES OR OTHER HARMFUL COMPONENTS. THE STATED WARRANTY IS THE SOLE AND EXCLUSIVE WARRANTY OFFERED BY ANY PARTY OR THIRD PARTY. THERE ARE NO OTHER

WARRANTIES OR CONDITIONS, EXPRESS OR IMPLIED, INCLUDING WITHOUT

LIMITATION, THOSE OF MERCHANTABILITY, SATISFACTORY QUALITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT OF THIRD-PARTY RIGHTS.

EXCEPT FOR THE LIMITED WARRANTY EXPRESSLY MADE ABOVE, THE SERVICE IS PROVIDED TO CUSTOMER ON AN “AS IS” AND “AS AVAILABLE” BASIS.

CUSTOMER ASSUMES ALL RESPONSIBILITY FOR DETERMINING WHETHER THE

SERVICES OR THE INFORMATION GENERATED THEREBY IS ACCURATE OR SUFFICIENT FOR CUSTOMER’S PURPOSES.

8. Indemnification.

8.1. Indemnification by Rec. Rec will defend City against any third-party claim, suit, or proceeding alleging that the Rec Platform infringes or misappropriates such third party’s intellectualproperty rights, and will pay any damages and costs finally awarded against City as a result of such claim or any settlement approved by Rec. By City. City will defend, indemnify, and hold harmless Rec from and against any third-party claim, demand, cause of action, or proceeding arising out of or related to City’s ownership, operation, or management of its facilities, programs, or personnel, except to the extent caused by Rec’s gross negligence or willful misconduct.

8.2. Limitation. Except for the obligations in Section 8.1, neither Party shall be liable to the other for any indirect, incidental, consequential, or punitive damages, and each Party’s aggregate liability is limited as provided in Section 9 (Limitation of Liability

9. Limitation of Liability.

9.1. TO THE FULLEST EXTENT PERMITTED BY LAW, IN NO EVENT WILL REC (INCLUDING ITS SUBSIDIARIES AND OTHER AFFILIATES) OR ITS OR THEIR

OFFICERS, EMPLOYEES, AGENTS, SUPPLIERS OR LICENSORS BE LIABLE FOR ANY

INDIRECT, INCIDENTAL, SPECIAL, PUNITIVE, COVER OR CONSEQUENTIAL

DAMAGES (INCLUDING, WITHOUT LIMITATION, DAMAGES FOR LOST PROFITS,

REVENUE, GOODWILL, USE OR CONTENT) HOWEVER CAUSED, UNDER ANY

THEORY OF LIABILITY, INCLUDING, WITHOUT LIMITATION, CONTRACT, TORT,

WARRANTY, NEGLIGENCE OR OTHERWISE, EVEN IF COMPANY HAS BEEN ADVISED AS TO THE POSSIBILITY OF SUCH DAMAGES. TO THE MAXIMUM

EXTENT PERMITTED BY APPLICABLE LAW, THE AGGREGATE MAXIMUM

LIABILITY OF REC (INCLUDING ITS SUBSIDIARIES AND OTHER AFFILIATES) AND

ITS AND THEIR OFFICERS, EMPLOYEES, AGENTS, SUPPLIERS OR LICENSORS,

RELATING TO THE SERVICES WILL BE LIMITED TO AN AMOUNT PAID BY CITY DURING THE 12-MONTH PERIOD OCCURRING IMMEDIATELY PRIOR TO THE EVENT

GIVING RIGHT TO LIABILITY OR IN CASES WHERE INSURANCE IS PRESENT, THE MAX PAYABLE BY INSURANCE AGAINST A CLAIM. THE EXISTENCE OF MULTIPLE CLAIMS WILL NOT INCREASE SUCH LIMIT. THE LIMITATIONS AND EXCLUSIONS

ALSO APPLY IF THIS REMEDY DOES NOT FULLY COMPENSATE CITY FOR ANY LOSSES OR FAILS OF ITS ESSENTIAL PURPOSE. SOME JURISDICTIONS DO NOT

ALLOW THE LIMITATION OF INCIDENTAL, CONSEQUENTIAL OR OTHER DAMAGES. IN SUCH AN EVENT THIS LIMITATION WILL NOT APPLY TO THE

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EXTENT PROHIBITED BY LAW. The Parties acknowledge that the limitations set forth in this Section are integral to the amount of fees charged in connection with making the Services available to City and that, were Rec to assume any further liability other than as set forth herein, such fees would of necessity be set substantially higher.

10. Miscellaneous Provisions.

10.1. Notices. Except as otherwise specified in the Agreement, all notices under the Agreement will be in writing and will be delivered or sent by (a) first class U.S. mail, registered or certified, return receipt requested, postage pre-paid; (b) U.S. express mail, or national express courier with a tracking system, to the address specified herein, or (c) via email, in any case to the address given for a Party below. Notices will be deemed given on the day actually received by the Party to whom the notice is addressed.

Addresses:

If to City of Hermosa Beach,
City Manager
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254
Email: [_______________]
With a copy to:

City Clerk
City of Hermosa Beach
1315 Valley Drive
Hermosa Beach, CA 90254
If to Rec,
Rachel Williams
2261 Market Street, Suite 22268
San Francisco, CA 94114
Email: [____________]

10.2 Independent Contractor. The relationship of Rec and City is that of independent contractors.

Neither Party has any authority to act on behalf of the other Party or to bind it, and in no event will the parties be construed to be partners, employer-employee, or agents of each other.

10.3 Governing Law; Venue. All matters arising out of or relating to this Agreement will be governed by the laws of the State of California, without regard to its conflict of law provisions.

Venue shall be Los Angeles County, California.

10.4 Compliance with Laws. Each Party agrees to comply with all applicable laws and regulations with respect to its activities hereunder, including, but not limited to, any export laws and regulations of the United States.

10.5 Conflict of Interest.

A. No officer or employee of City may have any financial interest, direct or indirect, in this Agreement, nor may any officer or employee participate in any decision relating to

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the Agreement that affects the officer or employee’s financial interest or the financial interest of any corporation, partnership or association in which the officer or employee is, directly or indirectly interested, in violation of any law, rule or regulation.

B. No person may offer, give, or agree to give any officer or employee or former officer or employee, nor may any officer or employee solicit, demand, accept, or agree to accept from another person, a gratuity or an offer of employment in connection with any decision, approval, disapproval, recommendation, preparation or any part of a program requirement or a purchase request, influencing the content of any specification or procurement standard, rendering of advice, investigation, auditing, or in any other advisory capacity in any way pertaining to any program requirement, contract or subcontract, or to any solicitation or proposal.

10.6 Assignment. Neither Party may assign or transfer this Agreement, in whole or in part, without the other Party’s prior written consent. Notwithstanding the foregoing, upon notice to the other Party, either Party may assign this Agreement to its affiliate or as a part of any merger, acquisition or sale of all or substantially all of its assets or the assets of the line of business to which the Services relate. Any attempted assignment or transfer in violation of this Section will be null and void. Subject to the foregoing restrictions, this Agreement will inure to the benefit of the successors and permitted assigns of the parties.

10.7 Force Majeure. Notwithstanding any provision contained in the Agreement, neither Party will be liable to the other to the extent fulfillment or performance of any terms or provisions of the Agreement are delayed or prevented by revolution or other civil disorders; wars; strikes; labor disputes; electrical equipment or availability failure; fires; floods; epidemics; pandemics; acts of God; government action; or, without limiting the foregoing, any other causes not within its control and which, by the exercise of reasonable diligence, it is unable to prevent. This clause will not apply to the payment of any sums due under the Agreement by either Party to the other. If a Force Majeure event continues for more than thirty (30) days, either Party may terminate this Agreement upon written notice, and neither Party shall be liable for further performance or payment obligations arising after the effective termination date.

10.8 Press Releases. Rec may use City’s name and logo in Rec’s marketing program including use on Rec’s company website, marketing literature, and in press releases - on a case by case basis with email consent from City.

10.8 Miscellaneous. Headings in the Agreement are for reference purposes only and will not affect the interpretation or meaning of the Agreement. If any provision of the Agreement is held a court of competent jurisdiction to be contrary to law, then the remaining provisions of the Agreement will remain in full force and effect. No delay or omission by either Party to exercise any right or power it has under the Agreement will be construed as a waiver of such right or power. A waiver by either Party of any breach by the other Party will not be construed to be a waiver of any succeeding breach or any other covenant by the other Party. All waivers must be in writing and signed by the Party waiving its rights.

10.9 Severability. Should any provision of this Agreement be held by a court of law to be illegal, invalid or unenforceable, the legality, validity and enforceability of the remaining provisions of this Agreement will not be affected or impaired thereby.

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10.10 Counterparts. The Agreement may be executed simultaneously in any number of counterparts, each of which will be deemed an original, but all of which together constitute one and the same agreement. The parties agree that electronic and other facsimile signatures are valid signatures for enforcement of this Agreement.

10.11 Entire Agreement; Modifications. This Agreement constitutes the entire agreement between Rec and City with respect to the subject matter hereof. The Agreement supersedes all prior negotiations, agreements, and undertakings between the Parties with respect to such subject matter. No modification of the Agreement will be effective unless contained in writing and signed by an authorized representative of each Party. No term or condition contained in City’s purchase order or similar document will apply unless specifically agreed to by Rec in writing, even if Rec has accepted the order set forth in such purchase order, and all such terms or conditions are otherwise hereby expressly rejected by Rec.

11. Other Public Agency Orders. Other federal, state, county, and local entities may utilize the terms and conditions established by the Contract if agreeable to all parties. The City does not accept any responsibility or involvement in the purchase orders or contracts issued by other public agencies. [SIGNATURES ON NEXT PAGE]

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IN WITNESS WHEREOF the parties hereto have signed this Agreement as of the date first written above.

CITY OF HERMOSA BEACH CONTRACTOR
Steve Napolitano, Interim City Manager By:

ATTEST:

Myra Maravilla, City Clerk Taxpayer ID No.

APPROVED AS TO FORM:

Jason Baltimore, Interim City Attorney

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Schedule 1
Project Plan

IMPLEMENTATION SCHEDULE
The Parties acknowledge the following schedule for implementing the Rec Platform for access by City.

Dates and milestones are estimates subject to City’s timely provision of data and information. Delays in City deliverables shall extend corresponding Rec obligations on a day-for-day basis.Scope of work and timeline are further detailed in Schedule 5 below.
● By February, 2026, Rec shall establish the foundation for RecOS functionality and facility management.
● By April 2026, Rec shall complete configuration for all key system components, including registration, facilities and payment processing.
● By June 2026, Rec shall ensure full team training and readiness for ongoing operations. ● By July 2026 Rec shall be ready for a public launch of the system with comprehensive marketing communications sent to the public.

If there is a delay in staff availability or receiving required information from the City of Hermosa Beach for configuration, Rec may require the launch date to be postponed until both parties agree.

ONGOING IMPROVEMENTS
Over the rest of contract term, Rec’s product and engineering team will continue to support features oriented at the following goals.

Administrative user efficiency
Improved resident experience at purchase, and at program check-in Improved automated reporting
Improved optional automated communications to users
Optional connectivity features between residents
Americans with Disabilities Act (ADA) User Interface compliance Rec commits to monthly feedback sessions from the City to ensure that the prioritization of improvements represents the City’s needs.

These improvements to the Rec Platform will be provided to the City at no additional cost and with the appropriate training modules when necessary.

RESOURCE REQUIREMENTS
Rec will assign resources as needed throughout the process. Rec team members will be the primary contact for remote discovery, onsite training, updates, and any necessary discussion throughout the process. City will assign a project lead to work directly with Rec’s team. City will schedule the appropriate staff for remote discovery and on-site training sessions.

REQUIRED INFORMATION

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In order that facility location and programming information may be offered by City to individual users of the Rec Platform. Rec and the City will agree upon the specific data requirements for each field after their mutual design review sessions by August 1, 2025. City will provide the following data for the first season of configuration no later than February , 2026.

Description Access Info
Getting There info
Hours of operation
Community guidelines
Address
Programming (for all recreational programming):

Program Name
Program description
Location
Session Dates (please note any holidays)
# of sessions
Price (resident/non-resident)
Instructor
Class Code

REPORTING
Rec will deliver the reports set forth below to City. No personal data of any individual Rec Platform users will be provided to City absent mutual written agreement and subject to all applicable privacy and data protection laws.

Biweekly reporting of class utilization and any qualitative feedback received.

Quarterly surveys, both NPS and qualitative.

Revenue reports at a mutually agreed cadence.

Class participant information in order to support programming operations

RESIDENT COMMUNICATIONS
City and Rec will work together to develop a mutually-satisfactory resident communication plan in order to share information about the implementation. This may include direct emails, signage or fliers at City centers, and seminars led by City to teach residents how to become individual users of the Rec Platform.

SUPPORT
Individual User Technical Support
Rec Provides front-line technical support for Participants, on behalf of City, if they email [email protected].

Rec will provide a first response within 48 hours of an individual’s question, although Rec strives to be at a 12 hour response time. This support will be provided based on City-defined support policies. Example support issues will include:

General programming inquiries such as payment inquiries. Rec can act on behalf of City for payment inquiries, applying the City-defined cancellation and refund policies, or choose to pass through to a CityStaff Users.

Account creation, management, and deletion

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Questions about programming availability, programming details, and other inquiries which require local knowledge will be directed to a City-Staff member.

For resident participants that go directly to City-Staff, the Rec Platform will provide the CityStaff user with the appropriate tools to solve the participant’s issue.

City-Staff User Support
Rec will provide direct support to City-Staff Users. During the first 30 days after Go-Live, City will have access to live support via phone or video conferencing 7 days a week from 9am - 7pm PST. After this initial period, City will submit all support requests to the Rec team via [email protected] and can expect a response for operational support within 24 hours.

As features are built to introduce a ticketing support system into the City interface, City will receive these additional features at no cost to the Customer.

Technical Service Levels
Rec Strives to maintain 99.999% uptime of systems. Rec provides support in accordance with the following service levels:

Mission Critical-Tier: defined as limiting a participant or City-Staff ability to sign-up, purchase, or participate in a program successfully.

Mission Critical (on-call) availability: 24/7
Initial Response: 1 hour
Status Report Provided: every 4 hours
Correction identified or pursued, and a mutually agreeable correction plan will be developed within:
24 hours
Severe Tier: Defined as limiting City-Staff or Customer from efficiently completing expected workflows.

Severe Tier availability: 9am - 5pm PST Monday - Friday Initial Response: 1 day
Status Report Provided: Daily
Correction identified or pursued, and a mutually agreeable correction plan will be developed within:
7 days
Improvement Tier: Defined as a feature request for improvement or minor bug not significantly impacting City-Staff or Participant workflows Improvement Tier availability: 9am - 5pm PST Monday - Friday Initial Response: 48 hours
Status Report Provided: Monthly
Proactive Input: On a quarterly basis, Rec will reach out to City to collect and prioritize all requested
improvements to the Rec Platform.

Correction identified or pursued, and a mutually agreeable correction or deprioritization will be communicated within: 1 month

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Schedule 1: Standard Platform and Services
Rec Technical Platform Applicable
Programming Registration & Administration
Facilities & Permit Management
Memberships Management
Business & Financial Reporting
Embedded Payment Processing
Rec Services (Ongoing) Applicable
Rec Licensed Learning & Instructor Management
Rec Programming Development Support
Tier 1 Customer (Resident) Support Management
Marketing Design & Material Production
Rec Services (Launch) Applicable
Customized Training Program for All Staff
Unlimited Training Hours - Virtual and Onsite
Data Configuration
Community Engagement Marketing Campaign
Dedicated Account Management and Support

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SCHEDULE 2

FEE SCHEDULE
Schedule 2A: Annual Fee
Fee based on City’s annual revenue estimate of $1,600,000.

Year Rec Annual Fee* Discounted Annual Fee**
Year 1 $29,500 $36,000
Year 2 $29,500 $36,000
Year 3 $36,000 $29,500
*List price for cities transacting $1.5 - 2 million in revenue on the Rec platform **Discount applied for Recs’ Early Customer Program
Schedule 2B: Payment Processing
The following fees are charged based on the method of purchase made by end users on the Rec platform.

The City has the option to pass a portion or the entirety of the following payment processing fees incurred during transactions onto the end user. The specific amount or percentage to be passed on will be determined and set by the City at their discretion.

Payment Method Fee
Credit Card 3.5% + $0.30
ACH or ECheck 1.0%
Cash or Physical Check 1.0%
Schedule 2C: Implementation & Hardware
Implementation & Hardware Fee
System Configuration $16,000
Data Transfer
Staff Training
Design and Brand Collaboration
Point of Sale Hardware Readers $300 per terminal

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Facility Public Signage - 18x18” (Courts, Rinks Etc) $50 per sign Facility Public Signage - 9x9” (Rec Rooms, Picnic Rentals) $30 per sign Schedule 2D: Payment Terms
Rec shall be responsible for issuing invoices for all fees due under this Agreement. All payments shall be made in U.S. dollars and may be remitted via ACH transfer, wire transfer, or check. The City shall be responsible for any bank fees or transaction costs associated with their chosen payment method. All payments must reference the corresponding invoice number to ensure proper application.

Annual Fee Payment Terms
The Annual Fee for the Services shall be due and payable within thirty (30) days of July 1, 2026. Failure to remit payment within the specified timeframe may result in suspension of Services or other remedies as outlined in this Agreement.

Implementation Fee Payment Terms
The Implementation Fee shall be due and payable within thirty (30) days following the Effective Date of this Agreement. The Effective Date shall be the date of execution of this Agreement by both Parties. Failure to remit payment within the specified timeframe may result in suspension of Services or other remedies as outlined in this Agreement.

Hardware Purchasing Invoice
The City shall be invoiced for any hardware purchases made by Rec Technology on the City’s behalf. Such invoices shall be issued upon procurement of the hardware and shall be due and payable within 30 days of the invoice date. The City acknowledges that all hardware purchases are final and non-refundable unless otherwise stated in the manufacturer’s warranty or return policy.

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SCHEDULE 3

MARKETING & PROMOTIONAL COMMITMENTS

1. PARTNER MARKETING OBLIGATIONS
Email. City will actively participate in partner marketing initiatives by sending out email messages to its community members to promote and advertise recreational programming facilitated by the Rec Platform.

Direct Links from the City Website. City Parks and Rec department will include direct links to the Rec Platform on relevant sections of its website. These links will provide easy access for community members to explore and register for recreational programs.

Permanent Signage. Rec has City permission to install permanent signage at mutually agreed-upon locations at the facilities covered by this agreement. Such signage may include, but is not limited to, court signs and other permanent displays that enable improved resident experience (i.e, QR codes for calendars), and those that promote and advertise recreational programs. The design and placement of permanent signage will be subject to the approval of both Parties.

Temporary and Promotional Signage. Rec will create and provide temporary signage (such as fence vinyls) to advertise new programs, lessons, or special events. The duration, design, and placement of temporary signage will be mutually agreed upon by both parties.

2. REC’S MARKETING COMMITMENTS
Rec will engage in marketing efforts designed to increase demand for lessons and programming. This may include campaigns related to subscribing to a court, newsletters, physical marketing materials, social media, engagement with community groups, and other innovative approaches.

Rec will engage in marketing and brand design with the City in order to support improvements in physical signage and digital presence

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SCHEDULE 4

INSURANCE
Rec will maintain the following insurance coverage naming City and its directors, agents and employees as additional insured. Rec will provide City with a Certificate of Insurance reflecting such coverage prior to commencing work.

General Liability: $1,000,000 per occurrence and $3,000,000 aggregate.

Sexual Abuse and Molestation: $1,000,000 per occurrence and $1,000,000 aggregate.

Cyber Liability (Network Security and Privacy Liability): $2,000,000 per occurrence and 2,000,000 aggregate.

Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Rec in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.

Workers Compensation: Employee’s liability insurance with minimum limits of $1,000,000 per occurrence. The workers compensation policy shall be endorsed with a waiver of subrogation in favor of City for all work performed by Rec, its employees, agents and subcontractors.

The insurance provided by Rec will be primary and noncontributory.

City, the City Council and each member thereof, members of boards and commissions, every officer, agent, official, employee and volunteer must be named as additional insureds under the automobile and general liability policies.

Rec must provide certificates of insurance including all required amendatory endorsements (or copies of the applicable policy language effecting coverage required by this clause) indicating appropriate coverage, to the City Clerk of the City of Hermosa Beach before the commencement of work.

Each insurance policy required by this Paragraph must contain a provision that no termination, cancellation or change of coverage can be made without notice to the City.

If Rec maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by Rec. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

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The procuring of insurance shall not be construed as a limitation on liability nor as full performance of the indemnification provisions of Rec.

Rec hereby grants to City a waiver of any right to subrogation which any insurer of said Rec may acquire against the City by virtue of the payment of any loss under such insurance. Rec agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.

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SCHEDULE 5

SCOPE OF WORK AND TIMELINE
Phase 1: Initial Discovery & Timeline Build (Month 1)
By February 2026 Rec shall establish the foundation for RecOS functionality and facility management.

Objectives ● Establish foundation for RecOS functionality and facility management for Client
● Conduct discovery workshops to understand department needs and integration points.

Benchmarks ● Complete discovery sessions with Parks & Recreation team to identify customizations.
● Complete and approve detailed week-by-week for timeline to launch including key training and marketing dates to the public Client
Requirements
● Scheduling and participation of discovery sessions for the following modules
⚪ Programming & Memberships
⚪ Facilities Management
⚪ Finance & Reporting
⚪ Marketing & Community Engagement
Phase 2: Configuration & Building (Month 3)
By April 2026, Rec shall complete configuration for all key system components, including registration, facilities and payment processing.

Objectives ● Complete configuration for all key system components:
registration, facilities, payment processing

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Benchmarks ● Programming Administration: Set up agency-branded templates for class creation, email/SMS confirmations, and waiver management. ● Facilities Management: Configure facilities (gyms, parks, fields, etc.) in RecOS with dynamic calendar and facility rules engine. ● Payment Processing: Activate payment system for online and point-of-sale transactions (including Stripe integration). ● Finance and Accounting reporting: Support for accrual based revenue
recognition, overdue payment plan, and weekly remittance reports Client
Requirements
● Programming registration data export from existing software ● Location and facilities details
Phase 3: Training & Program Ready (Month 5)
By June 2026, Rec shall ensure full team training and readiness for ongoing operations.

Objectives ● Ensure full team training and readiness for ongoing operations. ● Focus on system optimization to support seamless program registration for users.

Benchmarks ● Team Training: Complete comprehensive training sessions for all agency staff, covering advanced features such as reporting, registration management, and customer support processes.
● User Registration: Finalize setup of the registration system to ensure that users can easily discover, register, and pay for programs and classes. ● Facilities & Permit Management: Ensure staff can effectively manage facility rentals, special permits, and event coordination, including document storage and waivers.
● Waivers and Policies: Ensure that staff can handle waivers and policies, print necessary documentation, and manage signed waiver notifications.

Client
Requirements
● Participation in all scheduled training sessions
● Waiver and policy data for ingestion
Phase 4: Marketing Ready & Launch (Month 6)
By July 2026 Rec shall be ready for a public launch of the system with comprehensive marketing communications sent to the public.

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Objectives ● Prepare for a public launch of the system with strong marketing support. ● Ensure user engagement through email marketing and
promotional materials.

Benchmarks ● Marketing Support: Finalize the design and production of print and digital marketing materials, ensuring alignment with the agency’s branding and messaging.
● Email Marketing Campaigns: Set up and launch custom email marketing campaigns, promoting program registration and new offerings to residents.
● Public Launch: Conduct the official launch of the platform for publicfacing registration and facility booking, ensuring all automated systems, including confirmations and reminders, are operational. ● User Engagement: Roll out special pricing, residency verification, and other engagement strategies to attract diverse groups to programming.

Client
Requirements
● Public communication and marketing of new system including the following at minimum: 3 email blasts, dedicated website information, 3 social media posts

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Schedule 6
Information Security Requirements of Third Party Providers

OVERVIEW
The purpose of this document is to define information security requirements of Third-Party Service Provider who will access data and information on behalf of the City. Third-party Service Provider refers to any entity that is undertaking an outsourced activity on behalf of the City or is performing system administrator duties on their offsite system that contains City data. Third-party Service Providers may include Contractors, Subcontractors, Consultants, and City partners etc.

This document is incorporated in the Agreement between the City and the Third Party Service Provider.

DEFINITIONS
Confidential Data _ Information whose unauthorized disclosure or modification could result in significant fines, penalties, regulatory action, or civil or criminal violations. Examples include but are not limited to Protected Health Information (PHI), Personally Identifiable Information (PII), credit card data, police records, legal and risk management records, financial information, large collections of special information with sensitivity to privacy, resident records, security camera recordings.

Protected Health Information (PHI) — Protected health information includes all individually identifiable health information, such as demographic data, medical histories, test results, insurance information, and other information used to identify a patient or provide healthcare services or healthcare coverage.

Personal Identifiable Information (PII) — Any representation of information that permits the identity of an individual to whom the information applies to be reasonably inferred by either direct or indirect means.

Security Breach - Unauthorized acquisition of computerized data that compromises the security, confidentiality or integrity of personal information maintained on it.

Third-Party Service Provider - Contractors, Subcontractors, Consultants, and City Partners etc.

ACKNOWLEDGEMENT
Third-Party Service Provider acknowledges that its contract/purchase order with the City may allow the Third-Party Service Provider access to or possession of City’s Confidential Data including, but not limited to, personal information, employee records, citizens records, health care information, or financial information. This data may be transferred in various forms, notwithstanding the manner in which or from whom it is received by Third-Party Service Provider subject to state laws that restrict the use and disclosure of such information. Third-Party Service Provider represents and warrants that it will keep City’s Confidential Data secure both during the term and after the termination of the Agreement.

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INFORMATION SECURITY PLAN
Third-Party Service Provider is required to comply with information security standards for the protection of data and information required by law, regulation, and regulatory guidance.

Within 30 days of the effective date of the agreement and subject to the review and approval of the City, Third-Party Service Provider shall establish, implement, and maintain an information security plan (“Information Security Plan”).

Third-Party Service Provider’s Information Security Plan shall be designed to; ● Ensure the security, integrity and confidentiality of the City’s data, ● Protect against any anticipated threats or hazards to the security or integrity of such information, ● Protect against unauthorized access to or use of such information that could result in substantial harm or inconvenience to the person that is the subject of such information, ● Protect against unauthorized changes to or use of City’s data, and ● Comply with all applicable legal and regulatory requirements for data protection, ● Include business continuity and disaster recovery plans.

Third-Party Service Provider agrees that it will protect City Confidential Data according to published information security policy and standards and no less rigorously than it protects its own confidential information but in no case less than reasonable care.

Third-Party Service Provider shall develop, implement, maintain, and use appropriate administrative, technical, and physical security measures, which may include but not be limited to encryption techniques, to preserve the confidentiality, integrity, and availability of all such Confidential Data.

In addition, Third-Party Service Provider represents and warrants that in performing the Services, it will comply with all applicable privacy and data protection laws and regulations based on the type of data and information it is handling on behalf of the City. Applicable law and regulations may include but not limited to;
● California Civil Code (Sections 1798.29, 1798.82, 1798.84, 1798.85), ● The Health Insurance Portability and Accountability Act of 1996 (HIPAA), Payment Card Industry Data Security Standard (PCI DSS)
● Americans with Disabilities Act of 1990.

Failure by Third-Party Service Provider to comply with any provision of this Section shall constitute a default as defined in the Agreement.

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ACCESSIBILITY REQUIREMENTS
If Third-Party Service Provider is presenting any information to the public thru website content and/or mobile application, all content must be presented in compliance with the most current standards of the Web Content Accessibility Guidelines published by the Consortium (W3C) and/or required by Title II of the Americans with Disabilities Act.

INCIDENT RESPONSE PLAN
Notification of Security Incident
Third-Party Service Provider shall report, in writing, to the City any actual or suspected use or disclosure of City Confidential Data not authorized by this Agreement or authorized in writing by the City, including any reasonable belief that an unauthorized individual has accessed City Confidential Data. This report shall be made to the Agreement’s primary contact and the City’s designated information security officer.

It shall include details relating to any known or suspected security breach of Third-Party Service Provider’s system or facilities which contain City Confidential Data or any other breach of Confidential Data relating to this Agreement. This report shall be made not later than within seventy-two (72) hours after suspected or confirmed, if the information was, or is reasonably believed to have been, acquired by an unauthorized person.

Notification Contents
Third-Party Service Provider’s report shall identify:
● The nature of the actual or suspected unauthorized use or disclosure ● The time and date of incident
● A description of City’s data used or disclosed,
● Who made the unauthorized use or received the unauthorized disclosure, ● What Third-Party Service Provider has done or shall do to mitigate any harmful effect of the unauthorized use or disclosure, and
● The corrective action Third-Party Service Provider has taken or shall take to prevent future similar unauthorized use or disclosure.
● Other information as requested by the City.
● Third-Party Service Provider shall provide any other information, including a written report, as reasonably requested by the City.

Notification to Parties
Third-Party Service Provider agrees to fully cooperate with the City with the preparation and transmittal of any notice, which the City may deem appropriate or required by law, to be sent to affected parties regarding the known or suspected security breach, and to be financially responsible for any such notice resulting from Third-Party Service Provider’s, its Representatives, Affiliates, or Sub Third-Party Service Providers acts or omissions with regard to the data security requirements of this Agreement. Third-Party Service Provider shall take appropriate remedial action with respect to the integrity of its security systems and processes.

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AUDIT REQUIREMENTS
A Third-Party Service Provider, with access to City’s confidential data, shall conduct risk assessment and/or audit of its use of City’s confidential data at least annually. The Third-Party Service Provider shall provide the City with copies of its latest information security risk assessments and/or audit results upon request. The requirements of this section can be fulfilled by the Third-Party Service Provider providing a System and Organizational Controls (SOC) report as promulgated by the American Institute of Certificate Public Accountants (AICPA).

If any assessment and/or audit discloses material variances from the performance requirements set forth in this Agreement or a breach by Third-Party Service Provider of the provisions of this Agreement, ThirdParty Service Provider shall notify the City. The Third-Party Service Provider agrees to give the City the right to perform audits to verify compliance to any part of this Agreement.

TERMINATION OR EXPIRATION OF AGREEMENT
Upon the termination or expiration of this Agreement, or at any time upon the request of the City, ThirdParty Service Provider and its Sub Third-Party Service Providers shall return all City data (and all copies and derivative works thereof made by or for Third-Party Service Provider) back to the City or transfer to a third party as instructed by the City. Further, Third-Party Service Provider and all Sub Third-Party Service Providers shall delete or erase such data, copies and derivative works thereof, from their computer systems.

The City shall have the right to require Third-Party Service Provider to verify, that all City data has been returned, deleted or erased. Third-Party Service Provider agrees to use commercially reasonable efforts to cooperate with the City requests for verification.

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REC TECHNOLOGIES INC.

PLATFORM SERVICES AGREEMENT

RECITALS
City maintains and offers to its residents certain recreational facilities and programs, and desires a software services platform to allow for booking of facilities and classes, and payment of facility and program fees.

Rec operates a proprietary technology platform (“Rec Platform”) that “powers’ the coordination, scheduling, and use of such facilities and programming and allows Rec Platform resident users to view schedules and guidelines, reserve facilities, and purchase lessons and other programming offered by the City.

City and Rec share the goal of increasing community participation. City desires to make its facilities and programming offerings available to residents and to otherwise take advantage of the administrative, scheduling, and transactional, and marketing functions of the Rec Platform to help get the local community active. Rec also desires to give City access to the Rec Platform in a way that improves the day-to-day operations for the City.

This Services Agreement (“Agreement”) is made as of __________, 2025 (the “Effective Date”), by and between Hermosa Beach (“City”) and Rec Technologies Inc. (“Rec”). City and Rec are referred to herein collectively as the “Parties,” and each as a “Party.”
This Agreement is comprised of the following General Service Terms and Schedules which are incorporated into and made a part of this Agreement:

The General Service Terms
Schedule 1 (Project Plan)
Schedule 2 (Fee Schedule)
Schedule 3 (Marketing & Promotional Commitments)
Schedule 4 (Insurance)
Schedule 5 (Scope of Work)
Schedule 6 (Information Security Requirements of Third Party Providers)

1. Definitions.

1.1. City-Staff User means a named individual who is an employee, consultant, contractor or agent of City and who is authorized by City to administer City’s use of the Rec Platform and who has been supplied user identifications and passwords.

1.2. Confidential Information means any and all non-public information disclosed by either Party (the “Disclosing Party”) to the other (the “Receiving Party”), which is marked “confidential” or “proprietary” or which should reasonably be understood by the Receiving Party to be confidential

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or proprietary. Rec acknowledges the City is required to comply with information disclosures required by the California Public Records Act (California Government Code Section 7920 et seq.). City acknowledges Rec’s right to protection of its proprietary intellectual property rights.

1.3. Customer Data means all data and information submitted to the Rec Platform under an account of a City-Staff User.

1.4. Documentation means the written instructions or manuals, including any updates thereto provided by Rec that describe the features of the Services. Documentation may be more fully described in the applicable Order Form.

1.5. Intellectual Property Rights means any intellectual property or proprietary rights, rights of privacy or publicity, including but not limited to copyright rights, moral rights, trademarks (including logos, slogans, trade names, service marks), patent rights (including patent applications and disclosures), know-how, inventions, rights of priority, and trade secret rights, recognized in any country or jurisdiction in the world.

1.6. Resident Participant Data means personal profiles of individuals who use the Rec Platform to purchase access to facilities or programming offered by City.

1.7. Service(s) means the interactive platform and solution known as the Rec Platform and related implementation, support, marketing, and professional services provided by Rec.

2. Platform Services and Other Obligations.

2.1. Rec Platform. Rec owns and operates a proprietary technology platform (the “Rec Platform”) that powers the management and use of facilities such as racquet courts, sports fields, aquatics centers and other recreational spaces, which may include opportunities for Rec’s authorized users to view schedules and play guidelines, book programming and reserve such spaces for recreational use, lessons, and other facilitated or unfacilitated activities (collectively, the “Services”). City shall be entitled to the Services set forth in Schedule 1 (attached hereto) at the negotiated rates set forth in Schedule 2 (attached hereto). In addition to the Services set forth in Schedule 1, City may also opt in to additional services as approved in writing (via amendment) by the Parties hereto. Use of the premises and the Services shall at all times be subject to City’s terms of use, as defined in this Agreement.

2.1.1.Access. Subject to the terms and conditions of this Agreement, during Term (defined below) Rec will permit City-Staff Users to access and use the most recently updated version of the Rec Platform for its internal purposes. Such access is given on a non-exclusive, nontransferable and non-sublicensable basis.

2.1.2.Restrictions. City will not, and will not allow any third party to (a) modify, copy, or otherwise reproduce the Rec Platform or content available therein in whole or in part except as may otherwise be agreed by the parties in writing; (b) reverse engineer, decompile, disassemble, or otherwise attempt to derive the source code form or structure of the software used in the Rec Platform; (c) provide, lease or lend the Rec Platform to any third party except as expressly authorized hereunder; (d) remove any proprietary notices or labels displayed on the Rec Platform; (e) modify or create a derivative work of any part of the Rec Platform; (f) use the Rec Platform for any unlawful purpose, or (g) “frame” or “mirror” any of Rec’s content which forms part of the Rec Platform.

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2.1.3.Implementation. The Parties will perform their respective obligations concerning implementation as set forth in Schedule 1 (Project Plan) and Schedule 5 (Scope of Work).

2.1.4.Support. During the Term, Rec will provide the Support described in Schedule 1 (Project Plan).

2.1.5.Uptime Levels. The service level of the Rec Platform within Rec’s control is the availability of the Rec Platform, not, for example, the transmission of data over the public Internet. Rec will make commercially reasonable efforts to make the Rec Platform available 24 hours a day, 7 days a week, except for: (i) planned maintenance periods or (ii) any unavailability caused by circumstances beyond its reasonable control, including without limitation, acts of God, acts of government, floods, fires, earthquakes, civil unrest, acts of terror, strikes or other labor problems, third-party service provider failures or delays, or denial of service attacks.

2.1.6.Point of Sale Hardware. The parties will perform their respective obligations concerning the provisioning of point-of-sale hardware as set forth in Schedule 1 (Project Plan).

2.1.7. Nature of Services. The Parties acknowledge and agree that Rec is providing City access to commercially available, off-the-shelf software (the “Rec Platform”) delivered as a hosted software-as-a-service (“SaaS”) solution. The Parties further agree this Agreement does not constitute a professional-services or work-for-hire arrangement, and no ownership of any software, source code, or related intellectual property transfers to City.

2.2. Marketing. The Parties will perform their respective obligations concerning marketing activities as set forth in Schedule 3 (Marketing & Promotional Efforts).

2.3. Insurance. Rec will perform its obligations concerning insurance coverage as set forth in Schedule 4 (Insurance).

2.4. Business License. Prior to beginning to perform the Services, Rec will obtain a City of Hermosa Beach Business License.

2.5. Rec’s Accounting Records; Other Records. Rec must keep and maintain accurate books and records at its principal place of business concerning the performance of services pursuant to this Agreement, including but not limited to records of accounts between City and Rec, specifications and drawings relating to the services, and progress and inspection reports concerning the work performed. The City and/or its duly authorized legal or accounting representative (including independent certified public accountants), will have the right during regular business hours to inspect Rec’s books and records that relate to the performance of services pursuant to this Agreement and to make copies of that information at the City’s expense, Rec will maintain these records for at least three years after final payment.

3. Fees.

3.1. City will pay Rec the annual license and service fee and other charges (“fees”) set forth in Schedule 2 (Fee Schedule). Payment obligations are non-cancelable and fees paid are nonrefundable. All Fees are exclusive of taxes, excluding taxes on Rec’s income.

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3.2. Changes to Services. City and Rec shall each have the right to, by written notice to the other Party (any such notice, a “Change Order”), request changes the nature or extent of the work covered by the Agreement, or the drawings and specifications related to the work, or to request to suspend all or a portion of the work. Upon receipt of any such Change Order, the receiving Party agrees to promptly review the Change Order, discuss with the other Party what would be required to implement the requested changes, negotiate the requested changes with the requesting Party, and, if changes to the Agreement or Services are accepted and either Party deems appropriate, negotiate an amendment and/or addendum to the Agreement to reflect the agreed upon changes to the work covered by the Agreement. For the avoidance of doubt, nothing in this “Changes to Services” Section or otherwise in this Agreement shall require either Party to accept or implement a Change Order or the requested changes therein. Unless otherwise set forth in this Agreement, any changes to Fees or the agreed upon fee schedule must be agreed to in writing by both Parties.

4. Proprietary Rights.

4.1. Ownership. Except as expressly set forth herein or a separate written agreement, as between the Parties, Rec and its licensors own all rights, including Intellectual Property Rights, in the Services and any information included therein (not including any Customer Data), including software and other technology underlying the Services and any individual user account data and records and including any modifications, enhancements, customizations, updates, revisions or derivative works of the Services or such technology or information. No transfer of ownership will occur under this Agreement. All rights not expressly granted to City are reserved by Rec. Except as expressly set forth herein or in a separate written agreement, as between the Parties, City owns all worldwide right, title and interest in and to all Customer Data and Rec will not obtain any ownership rights or interests in such data. City hereby grants to Rec a non-exclusive license to use, reproduce, modify and distribute copies of and make available the Customer Data, and to sublicense such rights, as is necessary to provide the Rec Platform to City and its participant residents.

4.2. Feedback. City may, from time to time, submit to Rec comments, information, questions, data, ideas, description of processes, or other information (“Feedback”). For any and all Feedback, City grants to Rec a non-exclusive, worldwide, perpetual, irrevocable license to use, exploit, reproduce, incorporate, distribute, disclose, and sublicense any Feedback. City represents that it holds all intellectual or proprietary rights necessary to grant to Rec such license, and that the Feedback will not violate the personal, proprietary or intellectual property rights of any third party.

4.3. Aggregated Data. All other provisions of this Agreement notwithstanding, Rec may collect and aggregate data derived from the operation of the Services (“Aggregated Data”), and Rec may use and disclose such Aggregated Data for purposes of operating its business, monitoring performance of the Services, and improving products and services. Use and disclosure of Aggregated Data by Rec will not reveal any Confidential Information or personally identifiable information. Aggregated Data is the property of Rec. Aggregated Data will be non-personally identifiable.

5. Confidentiality and Security.

5.1. Confidential Information. Each Party hereby agrees that it will not use or disclose any Confidential Information received from the other Party other than as expressly permitted under

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the terms of the Agreement, California Government Code Section 7920 et seq., or as expressly authorized in writing by the other Party. Each Party will use the same degree of care to protect the other Party’s Confidential Information as it uses to protect its own confidential information of like nature, but in no circumstances less than reasonable care. Neither Party will disclose the other Party’s Confidential Information to any third-party other than its officers, principals, employees, subcontractors, and vendors who need access to such Confidential Information in order to achieve the intent of this Agreement and who are bound by confidentiality terms no less restrictive than those in this Agreement.

5.2. Exceptions. The restrictions set forth in Section 5.1 will not apply to any Confidential Information that the Receiving Party can demonstrate (a) was known to it prior to its disclosure by the Disclosing Party; (b) is or becomes publicly known through no wrongful act of the Receiving Party; (c) has been rightfully received from a third party authorized to make such disclosure without restriction; (d) is independently developed by the Receiving Party; (e) has been approved for release by the Disclosing Party’s prior written authorization; or (f) has been disclosed by court order or as otherwise required by law or statute, provided that the Party required to disclose the information provides prompt advance notice thereof, to the extent practicable, to enable the Disclosing Party to seek a protective order or otherwise prevent such disclosure.

5.3. Injunctive Relief. The Parties agree that a breach of Section 5.1 may cause irreparable damage which money cannot satisfactorily remedy and therefore, the Parties agree that in addition to any other remedies available at law or hereunder, the Disclosing Party will be entitled to seek injunctive relief for any threatened or actual disclosure by the Receiving Party.

5.4. Customer Data. Customer Data shall be treated as Confidential Information under this Agreement.

5.5. Resident Participant Data. During the Term and thereafter, subject to consent by the end user, Rec will only re-sell, share, or disclose to any third-party any individual Resident Participant Data or use the Resident Participant Data for the provision of the Rec Platform to City and the applicable resident participants. Rec will not re-sell, share, or disclose to any third-party any individual Resident Participant Data or use the Resident Participant Data for purposes other than provision of the Rec Platform to City and the applicable resident participants. Notwithstanding anything to the contrary, during the Term and thereafter Rec may use, display, distribute and transmit Resident Participant Data: (a) to transact with individual users through the Rec Platform; (b) for purposes of communicating with individual users of the Rec Platform concerning offerings and opportunities available within the Rec Platform; (c) in non-personally-identifiable aggregated form for the purposes of monitoring, operating, evaluating and improving its products and services; (d) as otherwise individually consented to by the applicable individual user of the Rec Platform, and (e) for purposes of enabling Rec to provide customer support and communications to users regarding booking information, payment issues, user feedback or matching with additional offerings on Rec. All use of Resident Participant Data by Rec will be in compliance with applicable law.

5.6. Security and Privacy. Rec uses commercially reasonable practices, including encryption and firewalls, to ensure that non-public Customer Data is disclosed only to City and City-Staff Users.

Rec will secure Customer and Resident Participant Data in compliance with all applicable laws and industry standards for similarly situated service providers, and other legal obligations associated with the collection, use, and disclosure of personal information. Rec will abide by all

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applicable laws relating to data privacy and identity theft which may include but are not limited to California 58 1386, California Civil Code 1398, the Personal Data Privacy and Security Act, the Identity Theft Protection Act, the Information Protection and Security Act, EU General Data Protection Regulation, and the Consumer Data Security and Notification Act. Affected users will be notified by Rec of any breach of security involving their personal information as required by applicable laws. All users of the Rec Platform will be assigned a unique user name and password.

Access to the Rec Platform will electronically log user name, date and time. As soon as practicable, but in no event later than as required by applicable law, Rec will notify City regarding all identified security breaches that compromise non-public Customer Data. This notification must include the date and time of the breach or unauthorized access, nature of the security breach, what Customer Data was accessed or vulnerable to the breach, and what Rec has done in response to the event. Summaries of security practices and measures taken to ensure the security of Customer Data, the Rec Platform and its users must be documented and provided to City within a reasonable period following City’s written request. Rec will use commercially reasonable efforts to ensure virus, worm, Trojan horse, and other hostile software detection and control is frequently updated in accordance with industry standards.

5.6.1.Rec agrees to implement all requirements of the City of Hermosa Beach Information Security Requirements of Third Party Service Providers (Third Party Service Provider Requirements), as set forth on Schedule 6 hereto.

5.7. Security and Privacy Reports. City will be able to request updated reports for security and compliance purposes. These reports can include internal security assessments, SOC reports, and any 3rd party assessments completed on Rec’s in-use systems.

5.8. City Passwords. As part of the registration process, City will select passwords for accounts. City is responsible for maintaining the confidentiality of passwords, and City agrees that Rec has no liability with regard to the use of such passwords by third parties. City agrees to notify Rec immediately if City has any reason to believe that the security of City’s account has been compromised. City-Staff will be asked to log-in via mutually agreed upon multi-factor authentication (“MFA”) process via phone or email within 30 days of initial launch of Rec Platform.

5.9. Resident Participant Passwords. As part of the registration process, resident participants will select passwords for accounts. Resident participants will be given the option to enable MFA for added security for their Participant information.

6. Term & Termination.

6.1. Term and Renewals. This Agreement will remain in effect for a period of 2 years, unless terminated sooner in accordance with its terms (“Initial Term”). Unless otherwise set forth herein, upon expiration of the Initial Term, this Agreement will automatically renew for additional consecutive 1-year periods (each a “Renewal Term,” and collectively with the Initial Term, the “Term”), unless and until a Party gives the other written notice of non-renewal at least 90 days prior to the end of the then-current term. Unless otherwise agreed, Fees during any Renewal Term will be the same as that during the prior term unless Rec provides Customer with notice of a pricing change, in which case the pricing change shall be effective during the Renewal Term unless Customer gives notice of non-renewal prior to the beginning of the Renewal Term.