309
The employee frequently works in outside weather conditions, near moving mechanical parts, and on slippery and uneven surfaces. The employee is frequently exposed to wet or humid conditions, fumes or airborne particles, toxic or caustic chemicals, and risk of electric shock.
The work environment described here is representative of those an employee encounters while performing the essential function of this job. Incumbent in this classification will work out in the field environment.
This job specification should not be interpreted as a/I-inclusive. It is intended to identify essential functions and requirements of the job. Not all incumbents may perform all duties at all times. However, incumbents must be able to perform the essential duties, with or without accommodation for disability at any time while holding this position.
Effective Date: 03-20-2025
Page I 5
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311
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CITY OF LYNWOOD
CLASSIFICATION & COMPENSATION SCHEDULE
Biweekly and Monthly Salaries & MOU-Related Pay
Adopted on May 6, 2025 (Reso No. 2025.XXX); Effective May 11,2025
ELECTED OFFICIALS
UNIT JOB TITLE CURRENT
E Councilmember 975.00
E City Clerk 1,000.00
E City Treasurer 1,000.00
CITY MANAGEMENT: At-Will Contract Employees
JOB TITLE DOQ
Ex/AW City Manager Annual Salary 227,151.00
Monthly Salary 18,929.25
Ex/AW Interim City Manager Annual Salary 227,151.00
Monthly Salary 18,929.25
DEPARTMENT DIRECTOR: Executive Management At-Will Employees (Under Reso No. 2021.105)
JOB TITLE STEP A B C D E
Ex/AW Director of Community Development Annual Salary 169,888.62 178,383.06 187,302.22 196,667.33 206,500.71 Monthly Salary 14,157.39 14,865.26 15,608.52 16,388.95 17,208.39 Ex/AW Director of Finance Annual Salary 158,860.59 166,803.63 175,143.81 183,901.01 193,096.07 Monthly Salary 13,238.38 13,900.31 14,595.32 15,325.09 16,091.34 Ex/AW Director of HR & Risk Management Annual Salary 158,860.59 166,803.63 175,143.81 183,901.01 193,096.07 Monthly Salary 13,238.38 13,900.31 14,595.32 15,325.09 16,091.34 Ex/AW Director of Public Works Annual Salary 169,888.62 178,383.06 187,302.22 196,667.33 206,500.71 Monthly Salary 14,157.39 14,865.26 15,608.52 16,388.95 17,208.39 Ex/AW Director of Recreation & Community Services Annual Salary 158,860.59 166,803.63 175,143.81 183,901.01 193,096.07 Monthly Salary 13,238.38 13,900.31 14,595.32 15,325.09 16,091.34 Ex/AW Director of Technology Services Annual Salary 152,177.03 159,785.89 167,775.19 176,163.96 184,972.17 Exhibit C
314
Monthly Salary 12,681.42 13,315.49 13,981.26 14,680.33 15,414.35 DEPARTMENT DIRECTORS: Executive Management At-Will Contract Employees (Pre-Date Reso No. 2021.105)
JOB TITLE DOQ
Ex/AW Director of Recreation & Community Services 189,160.86 15,763.41
Ex/AW Director of Technology Services 184,971.99
15,414.33
MANAGEMENT CIVIL SERVICE EMPLOYEES
UNIT JOB TITLE BAND STEP A B C D E
M. Accounting/Auditing Supervisor M-54 3,148.56 3,303.01 3,504.43 3,697.17 3,900.52 6,821.89 7,156.53 7,592.94 8,010.55 8,451.13 M. Accountant M-55 3,181.63 3,337.69 3,541.23 3,736.00 3,941.47 6,893.53 7,231.67 7,672.66 8,094.66 8,539.86 M. Administrative Analyst II M-50 2,886.00 3,030.30 3,181.82 3,340.91 3,507.95 6,253.01 6,565.66 6,893.94 7,238.64 7,600.57 M Administrative Analyst III M-56 3,363.20 3,532.72 3,706.95 3,898.14 4,095.92 7,286.93 7,654.23 8,031.72 8,445.97 8,874.50 Exempt Assistant to the City Manager M-65 4,160.98 4,343.98 4,536.14 4,737.90 4,949.74 9,015.45 9,411.96 9,828.30 10,265.44 10,724.45 M Billing & Collections Supervisor M-54 3,148.56 3,303.01 3,504.43 3,697.17 3,900.52 6,821.89 7,156.53 7,592.94 8,010.55 8,451.13 M Building Official M-70 4,988.01 5,241.15 5,503.23 5,778.12 6,066.11 10,807.35 11,355.83 11,923.66 12,519.27 13,143.23 M Associate Engineer M-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 M Deputy Dir. of Admin. Services M-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 M Deputy Dir. of Public Works M-71 5,950.57 6,129.08 6,312.95 6,502.34 6,697.41 12,892.89 13,279.67 13,678.06 14,088.41 14,511.06 M Deputy Dir. of Rec and Comm Services M-70 4,988.01 5,241.15 5,503.23 5,778.12 6,066.11 10,807.35 11,355.83 11,923.66 12,519.27 13,143.23 M Electrical Maintenance Supervisor M-45 2,568.31 2,696.40 2,832.03 2,976.12 3,124.92 5,564.68 5,842.20 6,136.06 6,448.27 6,770.65 M Deputy City Clerk M-52 3,049.56 3,201.19 3,363.20 3,532.72 3,706.94 315
6,607.39 6,935.92 7,286.93 7,654.23 8,031.71 M. Deputy City Treasurer M-52 3,049.56 3,201.19 3,363.20 3,532.72 3,706.94 6,607.39 6,935.92 7,286.93 7,654.23 8,031.71 M. Financial Analyst M-52 3,049.56 3,201.19 3,363.20 3,532.72 3,706.94 6,607.39 6,935.92 7,286.93 7,654.23 8,031.71 M/Conf. Human Resources & Risk Analyst M-52 3,049.56 3,201.19 3,363.20 3,532.72 3,706.94 6,607.39 6,935.92 7,286.93 7,654.23 8,031.71 M Planning Associate M-56 3,363.20 3,532.72 3,706.95 3,898.14 4,095.92 7,286.93 7,654.23 8,031.73 8,445.96 8,874.50 M Planning Manager M-69 4,737.03 5,009.41 5,297.45 5,602.06 5,924.17 10,263.56 10,853.72 11,477.81 12,137.79 12,835.71 M Principal Accountant M-65 4,160.98 4,343.98 4,536.14 4,737.90 4,949.74 9,015.45 9,411.96 9,828.30 10,265.44 10,724.45 M Principal Planner M-67 4,411.43 4,542.84 4,773.69 5,012.81 5,315.16 9,558.09 9,842.82 10,342.98 10,861.10 11,516.18 M Public Safety Manager M-65 4,160.98 4,343.98 4,536.14 4,737.90 4,949.74 9,015.45 9,411.96 9,828.30 10,265.44 10,724.45 M Public Works Operations Manager M-69 4,737.03 5,009.41 5,297.45 5,602.06 5,924.17 10,263.56 10,853.72 11,477.81 12,137.79 12,835.71 M Public Works Operations Supervisor M-56 3,363.20 3,532.72 3,706.95 3,898.14 4,095.92 7,286.93 7,654.23 8,031.73 8,445.96 8,874.50 M Public Works Special Projects Mgr M-71 5,950.57 6,129.08 6,312.95 6,502.34 6,697.41 12,892.89 13,279.67 13,678.06 14,088.41 14,511.06 M Recreation Facility & Program Supervisor M-50 2,886.00 3,030.30 3,181.82 3,340.91 3,507.95 6,253.01 6,565.66 6,893.94 7,238.64 7,600.57 M Recreation Superintendent II M-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 M. Senior Accountant M-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 M/Conf. Senior Human Resources & Risk Analyst M-65 4,160.98 4,343.98 4,536.14 4,737.90 4,949.74 9,015.45 9,411.96 9,828.30 10,265.44 10,724.45 M/Conf. Senior Management Analyst M-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 M Senior Planner M-65 4,160.98 4,343.98 4,536.14 4,737.90 4,949.74 316
9,015.45 9,411.96 9,828.30 10,265.44 10,724.45 M Senior Project Manager M-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 M Senior Public Works Manager M-56 3,363.20 3,532.72 3,706.95 3,898.14 4,095.92 7,286.93 7,654.23 8,031.73 8,445.96 8,874.50 M System Analyst M-56 3,363.20 3,532.72 3,706.95 3,898.14 4,095.92 7,286.93 7,654.23 8,031.73 8,445.96 8,874.50 M Water Operations Supervisor M-56 3,363.20 3,532.72 3,706.95 3,898.14 4,095.92 7,286.93 7,654.23 8,031.73 8,445.96 8,874.50 CIVIL SERVICE EMPLOYEES - Leads & General Staff - - - - -
UNIT JOB TITLE BAND STEP A STEP B STEP C STEP D STEP E G Account Clerk G-31 1,835.31 1,927.17 2,023.77 2,124.13 2,230.21 3,976.50 4,175.52 4,384.83 4,602.29 4,832.12 G Accounting Technician G-38 2,163.91 2,272.11 2,385.72 2,505.00 2,630.24 4,688.48 4,922.90 5,169.05 5,427.50 5,698.86 G Administrative Assistant G-41 2,341.96 2,459.38 2,582.48 2,711.27 2,847.66 5,074.24 5,328.66 5,595.37 5,874.42 6,169.93 G Assistant Administrative Analyst G-43 2,459.38 2,582.48 2,711.27 2,847.66 2,992.56 5,328.66 5,595.38 5,874.43 6,169.92 6,483.89 G Assistant to the City Clerk G-38 2,163.91 2,272.11 2,385.72 2,505.00 2,630.24 4,688.48 4,922.90 5,169.05 5,427.50 5,698.86 G Assistant Engineer G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G Building Inspector G-55 3,049.56 3,201.19 3,363.20 3,532.72 3,706.94 6,607.39 6,935.92 7,286.93 7,654.23 8,031.71 G Building Maintenance Lead Worker G-43 2,459.38 2,582.48 2,711.27 2,847.66 2,992.56 5,328.66 5,595.38 5,874.43 6,169.92 6,483.89 G Building Maintenance Worker G-38 2,163.91 2,272.11 2,385.72 2,505.00 2,630.24 4,688.48 4,922.90 5,169.05 5,427.50 5,698.86 G Business License Officer G-36 2,072.99 2,176.23 2,285.12 2,399.71 2,520.00 4,491.48 4,715.17 4,951.10 5,199.38 5,459.99 G Business License Technician G-38 2,163.91 2,272.11 2,385.72 2,505.00 2,630.24 4,688.48 4,922.90 5,169.05 5,427.50 5,698.86 G City Clerk Technician G-29 1,748.17 1,835.30 1,927.17 2,023.76 2,124.13 317
3,787.71 3,976.49 4,175.53 4,384.82 4,602.29 G Communications Specialist G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G Custodian G-29 1,748.17 1,835.30 1,927.17 2,023.76 2,124.13 3,787.71 3,976.49 4,175.53 4,384.82 4,602.29 G Electrical Maintenance Worker G-42 2,391.21 2,528.70 2,674.10 2,827.86 2,990.47 5,180.95 5,478.85 5,793.89 6,127.04 6,479.34 G Executive Assistant to G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 Community Development 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G Executive Assistant G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G/Conf. Human Resources & Risk Technician G-38 2,163.91 2,272.11 2,385.72 2,505.00 2,630.24 4,688.48 4,922.90 5,169.05 5,427.50 5,698.86 G/Conf. Human Resources & Risk Specialist G-45 2,608.30 2,738.38 2,876.13 3,022.47 3,173.59 5,651.33 5,933.16 6,231.62 6,548.69 6,876.11 G Garage/Fleet Coordinator G-34 1,974.38 2,073.10 2,176.75 2,285.59 2,399.88 4,277.83 4,491.72 4,716.30 4,952.11 5,199.74 G Information System Assistant G-37 2,124.13 2,230.21 2,341.95 2,459.37 2,582.49 4,602.29 4,832.13 5,074.23 5,328.63 5,595.40 G Information System Technician G-41 2,341.96 2,459.38 2,582.48 2,711.27 2,847.66 5,074.24 5,328.66 5,595.37 5,874.42 6,169.93 G Laborer G-24 1,546.47 1,624.13 1,705.56 1,790.81 1,880.76 3,350.68 3,518.95 3,695.38 3,880.09 4,074.99 G Lead Custodian G-37 2,124.13 2,230.21 2,341.95 2,459.37 2,582.49 4,602.29 4,832.13 5,074.23 5,328.63 5,595.40 G Lead Public Safety Officer G-54 2,869.14 3,012.22 3,163.75 3,324.72 3,490.95 6,216.46 6,526.48 6,854.78 7,203.56 7,563.72 G Maintenance Worker G-37 2,124.13 2,230.21 2,341.95 2,459.37 2,582.49 4,602.29 4,832.13 5,074.23 5,328.63 5,595.40 G Media Specialist G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G Office Assistant I G-12 1,153.45 1,211.22 1,271.84 1,335.28 1,402.53 2,499.14 2,624.31 2,755.64 2,893.10 3,038.81 G Office Assistant II G-24 1,546.47 1,624.13 1,705.56 1,790.81 1,880.76 318
3,350.68 3,518.95 3,695.38 3,880.09 4,074.99 G Park Maintenance Lead Worker G-43 2,459.38 2,582.48 2,711.27 2,847.66 2,992.56 5,328.66 5,595.38 5,874.43 6,169.92 6,483.89 G/Conf. Payroll Specialist G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G Permit Technician G-39 2,230.21 2,341.95 2,459.38 2,582.48 2,711.27 4,832.12 5,074.23 5,328.66 5,595.38 5,874.42 G Public Safety Officer G-45 2,608.30 2,738.38 2,876.13 3,022.47 3,173.59 5,651.33 5,933.16 6,231.62 6,548.69 6,876.11 G Public Works Operations Coordinator G-34 1,974.38 2,073.10 2,176.75 2,285.59 2,399.88 4,277.83 4,491.72 4,716.30 4,952.11 5,199.74 G Public Works Inspector G-57 3,106.08 3,261.39 3,424.46 3,595.68 3,775.47 6,729.85 7,066.35 7,419.66 7,790.65 8,180.18 G Public Works Technician G-38 2,163.91 2,272.11 2,385.72 2,505.00 2,630.24 4,688.48 4,922.90 5,169.05 5,427.50 5,698.86 G Recreation Coordinator G-39 2,230.21 2,341.95 2,459.38 2,582.48 2,711.27 4,832.12 5,074.23 5,328.66 5,595.38 5,874.42 G Recreation Specialist G-23 1,509.52 1,585.29 1,664.84 1,748.17 1,835.31 3,270.64 3,434.80 3,607.15 3,787.69 3,976.50 G Right -Of-Way Maintenance Lead Worker G-43 2,459.38 2,582.48 2,711.27 2,847.66 2,992.56 5,328.66 5,595.38 5,874.43 6,169.92 6,483.89 G Senior Accounting Technician G-46 2,696.40 2,832.03 2,976.12 3,124.91 3,279.39 5,842.20 6,136.06 6,448.26 6,770.65 7,105.35 G Senior Administrative Assistant G-44 2,519.99 2,671.63 2,778.51 2,919.63 3,066.41 5,459.98 5,788.53 6,020.11 6,325.86 6,643.88 G Sr. Building Inspector/Asst. Building Official G-61 3,660.08 3,843.09 4,035.24 4,237.00 4,448.85 7,930.17 8,326.69 8,743.03 9,180.17 9,639.18 G Senior Information Systems Technician G-44 2,519.99 2,671.63 2,778.51 2,919.63 3,066.41 5,459.98 5,788.53 6,020.11 6,325.86 6,643.88 G Senior Lifeguard G-23 1,509.52 1,585.29 1,664.84 1,748.17 1,835.31 3,270.64 3,434.80 3,607.15 3,787.69 3,976.50 G Senior Street Maintenance Worker G-39 2,230.21 2,341.95 2,459.38 2,582.48 2,711.27 4,832.12 5,074.23 5,328.66 5,595.38 5,874.42 G Street Maintenance Lead Worker G-43 2,459.38 2,582.48 2,711.27 2,847.66 2,992.56 319
5,328.66 5,595.38 5,874.43 6,169.92 6,483.89 G Street Maintenance Worker G-37 2,124.13 2,230.21 2,341.95 2,459.37 2,582.49 4,602.29 4,832.13 5,074.23 5,328.63 5,595.40 G Water Compliance Specialist G-45 2,608.30 2,738.38 2,876.13 3,022.47 3,173.59 5,651.33 5,933.16 6,231.62 6,548.69 6,876.11 G Water Quality Specialist G-44 2,519.99 2,671.63 2,778.51 2,919.63 3,066.41 5,459.98 5,788.53 6,020.11 6,325.86 6,643.88 G Water Service/Wastewater Lead Worker G-58 3,235.21 3,388.32 3,550.44 3,722.69 3,900.55 7,009.62 7,341.35 7,692.62 8,065.82 8,451.20 G Water Service/Wastewater Worker I G-40 2,326.60 2,438.34 2,555.77 2,678.87 2,807.66 5,040.96 5,283.07 5,537.50 5,804.21 6,083.26 G Water Service/Wastewater Worker II G-45 2,608.30 2,738.38 2,876.13 3,022.47 3,173.59 5,651.33 5,933.16 6,231.62 6,548.69 6,876.11 G Water Service/Wastewater Worker III G-47 2,790.89 2,930.07 3,077.46 3,234.05 3,395.74 6,046.92 6,348.49 6,667.83 7,007.10 7,357.44 HOURLY NON-CIVIL SERVICE - Part-Time, Temporary & Seasonal Staff
UNIT JOB TITLE BAND STEP A STEP B STEP C STEP D STEP E G Information Systems Technician H-38A 29.31 30.49 31.73 33.04 34.39 G Water Service/Wastewater Worker I H-39B 29.08 30.54 32.06 33.67 35.35 G Public Safety Officer H-39 26.08 27.39 28.76 30.19 31.70 G Maintenance Worker H-43 21.24 22.30 23.42 24.59 25.82 G Senior Lifeguard H-8B 18.93 19.87 20.82 21.86 22.90 G Recreation Leader III H-13 18.93 20.82 22.90 N/A N/A G Office Assistant II H-36B 18.36 19.28 20.25 21.26 22.32 G Lifeguard H-8 17.24 18.10 18.96 19.91 20.86 G Recreation Leader II H-14 17.24 18.96 20.86 N/A N/A G Recreation Leader I H-6 16.88 18.57 20.43 N/A N/A G Laborer (PW) H-18 16.76 17.60 18.48 19.41 20.38 G Laborer (Recreation Facilites) H-15 16.76 17.60 18.48 19.41 20.38 G Administrative Intern H-43B 16.76 17.60 18.48 19.41 20.38 320
MONTHLY ELECTRONIC MEDIA ALLOWANCES
Department Directors $125.00
Division Managers $90.00
Field & Other Personnel $60.00
321
RESOLUTION NO. [XX]
A RESOLUTION OF THE CITY COUNCIL AND THE CITY OF LYNWOOD, COUNTY
OF LOS ANGELES, STATE OF CALIFORNIA AMENDING AND UPDATING THE CITY’S CLASSIFICATION/COMPENSATION PLAN IN ACCORDANCE WITH THE CITY’S PERSONNEL RULES AND REGULATIONS
WHEREAS, the City of Lynwood is a General Law City under California law and is governed by and elected City Council; and
WHEREAS, the City Council of the City of Lynwood has adopted an Employee Classification and Position Plan and on occasion amends the plan as needed; and WHEREAS, the City Council of the City of Lynwood has adopted a salary resolution with a salary schedule for Management and General Unit employees; and WHEREAS, the City and the Lynwood Employees’ Association (“LEA”)/American Federation of State, County and Municipal Employees (AFSCME), Local 1920 reached an agreement on the addition of two (2) new classifications and their respective classification specifications, the Part-Time Water Service/Wastewater Worker I (Exhibit A, Hourly Range H39-B) and the City Clerk Technician (Exhibit B, Salary Range G-29), requiring an amendment to the City’s Classification/Compensation Plan (Salary Schedule, Exhibit C); and
WHEREAS, the City’s Classification/Compensation Plan already includes a Financial Analyst (Salary Range M-52) position, but requires an amendment to include within the City’s salary schedule; and
WHEREAS, the City’s Classification/Compensation Plan already includes salary information for the “Interim City Manager” classification, but requires an amendment to include salary information for the “City Manager” classification if Julian Lee’s Employment Services Agreement has been approved by the City Council.
NOW, THEREFORE, THE LYNWOOD CITY COUNCIL DOES HEREBY
RESOLVE AND DETERMINE AS FOLLOWS:
Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. Amend the City’s Classification/Compensation Plan adding the Part- Time Water Services/Wastewater Worker I and City Clerk Technician classifications; and 322
Section 3. Amend the City’s Classification/Compensation Plan specific to the City’s Salary Schedule (Exhibit C) to include the addition of the Part-Time Water Services/Wastewater Worker I (Hourly Range H39-B); and
Section 4. Amend the City’s Classification/Compensation Plan specific to the City’s Salary Schedule (Exhibit C) to include the addition of the City Clerk Technician (Salary Range G-29); and
Section 5. Amend the City’s Classification/Compensation Plan specific to the City’s Salary Schedule (Exhibit C) to include the addition of the Financial Analyst (Salary Range M-52); and
Section 6. Amend the City’s Classification/Compensation Plan specific to the City’s Salary Schedule (Exhibit C) to include the salary information for the City Manager if Julian Lee’s Employment Services Agreement has been approved previously by the City Council.
Section 7. Authorize the Mayor to execute this Resolution for and on behalf of the City of Lynwood.
Section 8. This Resolution shall take full force and effect immediately upon adoption by the City Council.
Section 9. The City Clerk shall certify as to the adoption of this City Council Resolution.
PASSED, APPROVED and ADOPTED this 6th day of May, 2025
Rita Soto
MAYOR
ATTEST:
Maria Quinonez
CITY CLERK
323
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Noel Tapia Patrick Matson
CITY ATTORNEY DIR. OF HUMAN RESOURCES
324
AGENDA STAFF REPORT
DATE:
May
6, 2025
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Julian Lee, Interim City Manager
PREPARED BY:
Patrick Matson, Director of Human Resources
SUBJECT:
A RESOLUTION OF THE CITY COUNCIL AND THE CITY OF LYNWOOD,
COUNTY OF LOS ANGELES, STATE OF CALIFORNIA APPOINTING
JULIAN LEE AS CITY MANAGER AND APPROVING AN EMPLOYMENT
SERVICES AGREEMENT WITH JULIAN LEE FOR THE POSITION OF
CITY MANAGER
Agenda Item # 8.9.
Recommendation:
Staff recommends considering the appointment of Julian Lee to serve as City Manager and the approval of the Employment Services Agreement with Julian Lee as the City Manager.
Background:
Upon the resignation of the City’s previous City Manager, Julian Lee was appointed as the Interim City Manager on July 16, 2024. Prior to Mr. Lee’s appointment, he served as the City’s Director of Public Works from August of 2022 up until his appointment as Interim City Manager.
Discussion and Analysis:
Recently, the City Council provided direction for the City Attorney and the Director of Human Resources to enter into a negotiation for a new Employment Services Agreement with Mr.
Lee, removing the “Interim” label from his job title while moving forward as the City Manager.
City Council City Council Regular Meeting 325
Reso Approval of Employment Services Agreement for City Manager, Julian Lee.pdf Employment Agreement - Julian Lee City Manager v 1.docx
During the negotiation, Mr. Lee proposed that his compensation under the current agreement remain unchanged, with future incentive considerations to be made based on performance, as stipulated within the provisions of his current agreement.
Because Mr. Lee has requested no changes be made to his current compensation package at this time, the proposed Employment Services Agreement mirrors his current agreement, with the exception of the removal of “Interim” from his job title.
Should the City Council approve the resolution, Julian Lee will become the City Manager and his employment agreement will become effective May 11, 2025. Furthermore, an amendment to the City’s Classification and Compensation plan will also be needed to include salary information for the City Manager position within the City’s salary schedule.
Fiscal Impact:
There will be no fiscal impact as the City Manager position has been previously budgeted for.
Coordinated With:
City Attorney's Office
City Manager's Office
ATTACHMENTS:
Description
City Council City Council Regular Meeting 326
RESOLUTION NO. [XX]
A RESOLUTION OF THE CITY COUNCIL AND THE CITY OF LYNWOOD, COUNTY
OF LOS ANGELES, STATE OF CALIFORNIA AUTHORIZING AN EMPLOYMENT
AGREEMENT WITH JULIAN LEE FOR THE POSITION OF CITY MANAGER
WHEREAS, the City of Lynwood is a General Law City under California law and is governed by and elected City Council; and
WHEREAS, the City Manager reports to and is appo inted by the Ci ty Council of the City of Lynwood; and
WHEREAS, the City Council has approved the request to hire the City Manager under an “at-will” employment agreement, a copy of which is attached hereto as “Exhibit A.”
NOW, THEREFORE, THE LYNWOOD CITY COUNCIL DOES HEREBY
RESOLVE AND DETERMINE AS FOLLOWS:
Section 1. The Mayor is authorized to execute the attached at-will City Manager agreement on behalf of the City, subject to the City Attorney’s approval of the form; and
Section 2. The City Manager is authorized and directed to commence performance of the duties of the position upon the effective date of the agreement; and
Section 3. That this resolution is to be given effect upon its adoption by the City Council of the City of Lynwood and execution of the same by the appropriate parties.
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PASSED, APPROVED and ADOPTED this 6th day of May, 2025
Rita Soto
MAYOR
ATTEST:
Maria Quinonez
CITY CLERK
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Noel Tapia Patrick Matson
CITY ATTORNEY DIR. OF HUMAN RESOURCES
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EXHIBIT A
EMPLOYMENT AGREEMENT
This at-will EMPLOYMENT AGREEMENT ("Agreement") is effective May 11, 2025 ("Effective Date"), by and between the CITY OF LYNWOOD, a general law city and municipal corporation ("City") and Julian Lee an individual ("City Manager"). From time to time City and City Manager are referred to as "Party" or "Parties."
RECITALS
WHEREAS, the City Council of the City ("Council") now desires to employ Julian Lee in the at-will position of the City Manager for the City; WHEREAS, City Manager desires to perform and assume responsibility for the provisions of such professional services to the City;
WHEREAS, the parties wish to establish the terms and conditions of the City Manager services to the City as described in this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants contained herein, the City and City Manager hereby agree as follows:
AGREEMENT
1.0 EMPLOYMENT AND DUTIES
1.1 Duties. City hereby employs Julian Lee to serve as the City's City Manager, to perform the functions and duties of an City Manager as such duties are customarily performed by a person in such position, as specified in any position description for the City Manager, and to perform such other legally permissible and proper duties and functions as the City Manager shall, from time-to-time, direct or assign, including, but not limited to, the duties of the City Manager of the City, unlesssaid duties are reassigned by the City Manager.
1.2 Work Schedule. The parties agree that the City Manager shall engage in the hours of work that are necessary to fulfill the obligations of the position and must devote time in addition to the City's regular business hours to the business of the City. City Manager acknowledges that City Hall is open Mondays through Thursdays from 7:00 a.m. to 6:00 p.m. and is closed on Fridays, such that the City's standard work week is four (4) 10-hour days.
Notwithstanding the foregoing, City Manager will be permitted reasonable time off during the City's business hours upon proper approval and as permitted by accrued leave time, as is customary for exempt employees, so long as the time off does not interfere with the City's business.
1.3 Direction. The City shall retain full direction and control of the manner, 329
means and methods by which the City Manager performs the services for which he is employed hereunder and of the place or places at which such services shall be rendered.
1.4 Employment Status; At-Will City Manager shall serve at the will and pleasure of the City Council and understands he is an "at-will" employee subject to summary dismissal without any right of notice or hearing, including any so- called Skelly hearing. The City Council may terminate the employment of the City Manager at any time, with or without cause, as set forth in Section 3.2 below. The Parties acknowledge that, while the City Manager is afforded the benefits described in Article 6.0, as those benefits are provided to other employees within the Lynwood Employees Management Bargaining Group ("LEMG") in accordance with the Comprehensive Memorandum of Understanding for Submission to the Lynwood City Council Regarding Lynwood Employees Management Bargaining Group ("MOU"), as may be amended from time to time, a copy of which is attached hereto as Exhibit "A," City Manager is not an employee represented by any bargaining unit, and nothing in this Agreement or the City's policies or procedures, either now or in the future, is intended to change the at-will nature of this relationship.
1.5 City Documents. All data, studies, reports, and other documents prepared by the City Manager while performing his duties during the term of this Agreement shall be furnished to and become the property of the City, without restriction or limitation on their use.
All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, andother materials either created by or provided to the City Manager in connection with the performance of this Agreement shall be held confidentialby the City Manager to the extent permitted by applicable law. Such materials shall not, without the prior written consent of the Council, be used by the City Manager for any purposes other than the performance of his duties for the City. Nor shall such materials be disclosed to any person or entity not connected with the performance of services under this Agreement, except as required by law.
1.6 FLSA Exempt Status. City Manager agrees that his position is that of an exempt employee for the purposes of the Fair Labor Standards Act.
2.0 COMPENSATION AND REIMBURSEMENT
2.1 Compensation. As compensation for the services to be rendered by City Manager, City agrees to pay City Manager a salary of $227,151 per year ("Salary") payable in twenty-six (26) biweekly installments at the same time as other employees of the City are paid and subject to customary withholding. The Salary shall be adjusted for payroll taxes, workers' compensation, and other payroll-related liability costs. City Manager understands and agrees that his compensation for the first pay period that he is working for the City shall be prorated consistent with all applicable laws, if he is commencing work in the middle of a pay period. City Manager shall be eligible for a Salary increase one year from the Effective Date.
2.2 457 Payment Compensation. As additional compensation for the services to be rendered by City Manager, City agrees to pay City Manager in addition to his salary above an annual payment equivalent to 5% of his annual salary (as stated in 2.1 Compensation above) payable in twenty-six (26) bi-weekly installments at the same time as other employees of the City are paid and subject to customary withholding. City Manager understands and agrees that the 330
provisions of this section shall be prorated consistent with all applicable laws, as he is commencing work in the middle of a pay period.
2.3 Annual Review. The City and the City Manager agree to conduct a review concurrently with the annual performance evaluation set forth in Article 5.0, below. City Manager shall receive any Cost of Living Adjustment ("COLA") consistent with or provided to other LEMG members under the MOU. In addition, a merit increase may be granted on the City Manager's one-year anniversary at the sole discretion of the City Council.
City Manager is also eligible for performance incentives that may be awarded in the sole discretion of the City Council.
2.4 Effectuating Salary Adjustment. City and City Manager agree that any upward adjustment in the Salary paid to City Manager shall be at the sole discretion of the City Council.
3.0 TERM
3.1 Commencement & Termination Date. City Manager agrees to remain in the exclusive employ of City from May 11, 2025 until May 10, 2027 (the "Termination Date"), and shall continue on a month-to-month basis thereafter, unless either Party exercises its right to terminate the Agreement prior to the Termination Date consistent with the terms set forth in Section 3.2 of this Agreement. The t erm of this Agreement may be extended if parties mutually agree and the City Council votes to approve an extension of this Agreement.
3.2 Termination. The City may terminate this Agreement at any time with or without cause, for any reason whatsoever, without notice to the City Manager. Additionally, City Manager may terminate this Agreement at any time with or without cause, with at least thirty (30) days' advance written notice prior to the effective last work day, unless a shorter period is acceptable to the City Council. City Manager expressly agrees that any for cause termination of this Agreement initiated by the City shall not entitle City Manager to any severance pay; whereas, without cause termination of this Agreement initiated by the City shall entitle City Manager, upon the effective date of such termination, to severance pay as provided in Section 4.1 below, and all accrued but unpaid Salary and vested benefits through the date of termination., and all accrued but unpaid Salary and vested benefits through the date of termination.
3.3 Cooperation. After notice oftermination, City Manager shall cooperate with the City, as requested by the City, to effect a transition of City Manager's responsibilities and to ensure that the City is aware of all matters being handled by City Manager.
4.0 SEVERANCE
4.1 Severance Benefit
A. City Manager is an at-will employee and serves at the will and pleasure of the City Council and may be terminated at any time without cause. 331
B. In the event that City Manager is terminated by the City Council for reasons other than physical or mental incapacity, or those reasons noted in subsection E., below, the City agrees to pay City Manager severance pay equal to six (6) months salary (but not benefits) at the City Manager's salary at the date of termination.
C. To be eligible for severance pay, as identified in Paragraphs Band C ofthis section, City Manager shall fulfill all of his obligations under this Agreement and shall sign an acknowledgement and release of claims against the City. Such acknowledgement and release appears as Attachment "B'' to this Agreement.
D. All severance payments shall be paid within thirty (30) calendar days of City Manager's last date of employment.
E. Notwithstanding subsections A, B and C, above, if Employee retires or is terminated due to personal dishonesty b y City Manager in performing City Manager's duties, City Manager's insubordinationor failure to follow City policies, procedures, rules or regulations, actions by City Manager that are detrimental to the reputation of the City, conflicts of interests or breach of fiduciary duties, acts of fraud or misrepresentation or any act of malfeasance, incapacity, dereliction of duty, gross negligence, addiction to a controlled substance or alcohol, which addiction impairs City Manager's job performance, conviction of a crime involving moral turpitude or involving personal gain to him, any felony or a breach of this Agreement, City shall have no obligation to pay any severance provided in this section.
4.2 Payment For Accrued Benefits. Except as provided for in Article 6.0, upon the termination of this Agreement and the services of the City Manager there under, City shall pay to City Manager the cash equivalent of leaves as permissible according to the LEMG MOU.
4.3 Sole Rights. The severance rights provided in this Article 4.0 shall constitute the sole and only entitlement of City Manager in the event of the termination, and City Manager expressly waives any and all other rights except as provided herein. Any and all severance rights are conditioned upon execution of standard "Agreement of Separation, Severance and General Release" attached hereto as Exhibit "B."
4.4 Gov. Code Section 53260(a) Provision. Any other term of this Agreement notwithstanding, the maximum severance that City Manager may receive under this Agreement shall not exceed the limitations provided in Government Code Sections 53260 - 53264, or other applicable law.
5.0 PERFORMANCE EVALUATIONS
5.1 Purpose. The performance review and evaluation process set forth herein is intended to provide review and feedback to City Manager so as to facilitate a more effective management of City. Nothing herein shall be deemed to alter or change the at-will employment status of City Manager, nor shall this Article 5.0 be construed as requiring "cause" to terminate this Agreement or the services of City Manager there under.
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5.2 Annual Evaluation. The City Council may review and evaluate the performance of the City Manager annually, within thirty (30) days after each anniversary date. In addition, City Manager shall submit for City Council's consideration at those times established by the City Council, but at least annually City Manager's proposed performance goals and objectives and incorporate the City Council's suggestions. Such review and evaluation shall be conducted concurrently with an annual review
5.3 Annual Performance Incentive. The City Council may provide an annual performance incentive of up to 100 vacation hours to be credited to the City Manager’s accruals based on meeting performance goals and objectives. Such evaluation for the performance incentive shall be conducted concurrently with an annual review, and in accordance with the purpose noted in Section 5.1 above.
5.4 Council Election. Pursuant to provisions of Section 2-2.9(b) of the Lynwood Municipal Code. The City Manager shall not be removed from office during or within a period of ninety (90) days succeeding any general municipal election held in the City at which election a member of City Council is elected.
6.0 BENEFITS
6.1 Automobile Allowance. City shall provide an automobile allowance to City Manager of $500.00 per month, payable in twenty-six (26) biweekly installments at the same time as other employees of the City are paid and subject to customary withholding.
6.2 Electronic Media Allowance. The City shall provide or pay City Manager’s cellular phone plan and equipment costs an d provide an Electronic Media Allowance of three hundred and 00/100 Dollars ($300.00) per month. The Electronic Media Allowance shall be full compensation for the cost associated with the purchase and use of technology and program applications to be used for City-related business, and shall be paid to the City Manager through payroll, with applicable taxes and other payroll-liability costs deducted. City Manager understands that any applicable taxes are his responsibility to pay and not covered by the City.
6.3 Master's Degree Pay. In accordance with the MOU, as may be amended from time to time, the City shall provide City Manager Master's Degree pay consistent with the pay paid to LEMG members ("Bachelor/Master's Degree Pay"), which as of the date of this Agreement is two hundred dollars and fifty Dollars ($250.00) per month.
The Master's Degree Pay shall be paid upon submitting proof of the degree, and shall be paid to the City Manager through payroll, with applicable taxes and other payroll - liability costs deducted. City Manager understands that any applicable taxes are his responsibility to pay and not covered by the City.
6.4 Medical, Dental, Vision and Life Insurance. City shall provide to the City Manager the same group medical, dental, vision, and life insurance plans and/or programs as are offered to LEMG members in accordance with the MOU. The City's contribution on behalf of the City Manager toward any PERS health insurance plan shall be at the family premium rate for Kaiser coverage, as may be amended by the MOU. In addition, the City 333
will pay the cost of dental plan premiums and vision plan premiums for the City Manager and his eligible dependents according to the MOU. The City shall provide and pay for a life insurance policy to the City Manager in the amount of fifty thousand and 00/100 Dollars ($50,000.00).
6.5 Vacation, Personal and Sick Leave. City Manager shall accrue vacation, personal and sick leave hours in accordance with the current LEMG MOU.
Additionally, as further described in the LEMG MOU Cashout and/or Carryover provisions, vacation and personal leave may be converted into cash or carried over, up to the maximum allowable of hours as described in the LEMG MOU. Sick leave hours are not eligible for any cash out provisions, as stated in the MOU.
6.6 Holidays. In accordance with the MOU, City Manager shall be entitled to the holidays and floating holidays noted in the LEMG MOU. The aforementioned holiday benefits shall be subject to adjustment as may be revised by the MOU.
6.7 Executive Leave. In accordance with the MOU, City Manager shall accrue executive leave at the rate of ninety (90) hours per fiscal year. Additionally, as further described in the LEMG MOU Cashout and/or Carryover provisions, Executive leave hours may be converted into cash or carried over, up to the maximum allowable of hours as described in the LEMG MOU. The aforementioned leave benefits shall be subject to adjustment as may be revised by the MOU.
6.8 Additional Benefits. In addition to the benefits set forth in this Agreement, the City Manager shall receive the benefits provided by the City to LEMG members under the MOU, excluding any License and Certificate Incentive Pay. To the extent benefits provided under this Agreement are similar to those provided to the LEMG members under the MOU, the City Manager shall receive only those benefits provided under this Agreement, and not both.
7.0 PROFESSIONAL DEVELOPMENT
7.1 Membership. The City encourages City Manager continued professional development and membership and shall provide payment of appropriate related costs for such activities, as approved by the City Manager.
7.2 Out-of-Town Meetings & Seminars. The City agrees to reimburse the City Manager the actual cost for registration, travel, lodging, meals, and other reasonable expenses incurred by the City Manager while attending overnight out-of-town meetings or seminars related to his employment with the City, which are pre-approved by the City Council and in accordance with the City's policies for expense reimbursement.To be eligible to receive reimbursement for meals and lodging for out -of-town meetings or seminars, City Manager must have budgeted funds available for same.
7.3 Local Meetings & Seminars. The City agrees to reimburse City Manager the actual cost of registration, meals, and other reasonable expenses necessarily incurred while in attendance at local meetings or seminars related to his employment with the 334
City in accordance with the City's policies for expense reimbursement.
7.4 Incidental Expenses. The City agrees to reimburse City Manager the actual cost of those incidental expenses necessarily incurred by City Manager while engaged in the business of the City upon the presentation of an appropriate receipt therefore in accordance with the City's policies for expense reimbursement.
7.5 Approval by City Council. To be eligible to receive reimbursement for the memberships, travel, and other expenses incurred pursuant to this Article 7.0, City Manager must have budgeted funds available for the same.
8.0 INDEMNIFICATION
8.0 Indemnification. For the purposes of indemnification and defense of legal actions, City Manager shall be considered an employee of the City and entitled to the same rights and subject to the same obligations as are provided for all other employees of the City as set forth in the California Government Code. Accordingly, City shall defend, hold harmless and indemnify City Manager against any tort, professional liability, claim or demand, or other legal action arising out of an alleged act or omission occurring in the performance of City Manager's services under this Agreement. This section shall not apply to any intentional tort or crime committed by City Manager, to any action outside the course and scope of the services provided by City Manager under this Agreement, or any other intentional or malicious conduct or gross negligence of City Manager.
9.0 GENERAL PROVISIONS
9.1 Entire Agreement. This Agreement represents the entire agreement between the parties and supersedes any and all other agreements, either oral or in writing, between the parties with respect to City Manager's employment by the City and contains all of the covenants and agreements between the parties with respect to such employment. Each party to this Agreementacknowledges that no representations, inducements, promises or agreements, orally or otherwise, have been made by either party, or anyone Assistant on behalf of either party, which are not embodied herein, and that no other agreement, statement or promises not contained in this Agreement shall be valid or binding upon either party.
9.2 Notices. Any notice required or permitted by this Agreement shall be in writing and shall be personally served or shall be sufficiently given when served upon the other party as sent by United States Postal Service, postage prepaid and addressed as follows:
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Notices shall be deemed given as of the date of personal service or within two (2) days of the date of deposit in the course of transmission with the United States Postal Service.
9.3 Conflicts Prohibited. During the term of this Agreement, City Manager shall not engage in any business or transaction or maintain a financial interest which conflicts, or reasonably might be expected to conflict, with the proper discharge of City Manager duties under this Agreement. City Manager shall comply with all requirements of law, including but not limited to, Sections 87100 et seq., Section 1090 and Section 1125 of the Government Code, and all other similar statutory and administrative rules.
9.4 Effect of Waiver. The failure of either party to insist on strict compliance with any of the terms, covenants, or conditions of this Agreement by the other party shall not be deemed a waiver of that term, covenant, or condition, nor shall any waiver or relinquishment of any right or power at any one time or times be deemed a waiver or relinquishment of that right or power for all or any other times.
9.5 Partial Invalidity. If any provision inthis Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall nevertheless continue in full force without being impaired or invalidated in any way.
9.6 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California, which are in full force and effect as of the date of execution.
9.7 Independent Legal Advice . The City and City Manager represent and warrant to each other that each has received legal advice from independent and separate legal counsel with respect to the legal effect of this Agreement, and the City and City Manager further represent and warrant that each has carefully reviewed this entire Agreement and that each and every term thereof is understood and that the terms of this Agreement are contractual and not a mere recital. This Agreement shall not be construed against the party or its representatives who drafted it or who drafted any portion thereof.
9.8 AB 1344. Assembly Bill 1344 was recently enacted as a means to provide greater transparency in local government and institute certain limitations on compensation paid to local government executives. AB 1344 also requires that contracts between a local agencies and its employees include provisions requiring an employee who is convicted of a crime involving an abuse To City:
City Council
City of
Lynwood
11330 Bullis Road
Lynwood, California
90262
To City Manager:
At his home address on file with the
City
336
of his office or position to provide reimbursement to the local agency (California Government Code §§ 53243 - 53243.4). These sections are set forth in full in Exhibit "B" attached hereto and incorporated herein.
Accordingly, the parties agree that it is their mutual intent to fully comply with the Government Code sections that are part of AB 1344 and all other applicable law as it exists as of the date of execution of this Agreement and as such laws may be amended from time to time thereafter.
Specifically, AB 1344 includes the following Government Code sections which are hereby incorporated by this Agreement:
§53243. Reimbursement of paid leave salary required upon conviction of crime involving office or position.
§53243.1. Reimbursement of legal criminal defense upon conviction of crime involving office or position.
§53243.2. Reimbursement of cash settlement upon conviction of crime involving office or position.
§53243.3. Reimbursement of non-contractual payments upon conviction or crime involving office or position.
§53243.4. Abuse of office or position defined.
City Manager has reviewed, is familiar with, and agrees to comply fully with each of these provisions if any of these provisions are applicable to City Manager, including that City Manager agrees that any cash settlement or severance related to the termination that City Manager may receive from the City shall be fully reimbursed to the local agency if City Manager is convicted of a crime involving an abuse of his or her office or position. 337
IN WITNESS WHEREOF, the City of Lynwood has caused this Agreement to be signed and executed on its behalf by its Mayor, and duly attested by its officers thereunto duly authorized, and City Manager has signed and executed this Agreement, all in triplicate.
CITY OF LYNWOOD
________________________
Rita Soto, Mayor
_________________________
Julian Lee, City Manager
ATTEST:
______________________
Maria Quinonez, City Clerk
APPROVED AS TO FORM:
_________________________
Noel Tapia, City Attorney
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339
AGENDA STAFF REPORT
DATE:
May
6, 2025
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Julian Lee, City Manager
PREPARED BY:
Liliana Delgadillo, City Treasurer
Sheila Harding, Deputy City Treasurer
SUBJECT:
TREASURER'S STATEMENT OF INVESTMENT POLICY
Agenda Item # 9.1.
Recommendation:
Staff recommends that the Lynwood City Council review the Statement of Investment Policy and adopt the resolution entitled: "A RESOLUTION OF THE CITY COUNCIL OF THE CITY
OF LYNWOOD, APPROVING THE CITIES ANNUAL STATEMENT OF INVESTMENT POLICY."
Background:
The investment policies and practices of the City of Lynwood are based on laws and principles of prudent money management. This statement is intended to provide guidelines for the prudent investment of idle and surplus cash, while meeting the short and long-term cash flow demands. This report is submitted annually for City Council's review. The primary goals of these policies are:
To assure compliance with all federal, state, and local laws governing the investment of monies under the control of the Treasurer.
To protect the principal and asset holdings of the City's portfolio.
To ensure that adequate liquidity is provided for the prompt and efficient handling of City disbursements.
To generate the maximum amount of investment income within the parameters of these investment policies and guidelines for suitable investments.
On February 7, 2023,
Mayor Flores opened discussion to Council Member Munoz-Guevara.
Council Member Munoz-Guevara stated that the reason for pulling the Treasurer’s Investment City Council City Council Regular Meeting 340
Policy, referred to as “IP”, comes to Council on consent calendar every year and considering we have a new City Treasurer, he noted it would be wise for the Council to take leadership on our investments. He indicated thirty-eight cities and counties in the United States have taken a stance in their investment policies to divest from fossil fuels industry and numerous public funds and college endowments have followed.
Council Member Munoz-Guevara introduced a motion to approve the Treasurer’s IP with an amendment to the unauthorized investments to reflect a prohibition on investments in firms that are predominately in the business of exploitation, production, drilling and/or refining of coal, petroleum, oil and/or natural gas and requested help from his colleagues on the item.
Council Member Solache made a subsequent motion to table the item until the Council can further entertain discussion on this new point Council Member Munoz-Guevara has presented.
Discussion and Analysis:
On February 20, 2024, the City Council discussed the Treasurer’s Investment Policy and recommended that the Finance Ad Hoc Committee to review and recommend any changes if needed. On May 29, 2024, the Finance Ad Hoc Committee reviewed the Treasurer’s Investment Policy and recommended revising the Investment Policy to prohibit new investments or the renewal of existing investments in firms that are predominantly in the business of exploration, production, drilling and/or refining of coal, petroleum, oil, and/or natural gas. Attached are both the original Treasurer’s Investment Policy and the revised policy with the recommended changes from the Finance Ad Hoc Committee meeting to be reviewed and considered for approval by the City Council.
The City’s IP was certified by the California Municipal Treasurer’s Association in 2020 and is subject to California Government Code, Section 53600. The Code specifically outline suitable investments that are authorized and subject to restrictions. Whereas, the mission for the treasurer's office is Safety, Liquidity and Return and adding more restriction to the IP could possibly impact performance of the policy.
The treasurer’s office
recognizes the material risk that climate change poses to the global economy, and to our long-term investments. However, mandatory fossil fuel divestment is not an effective solution to the reduction of greenhouse gas emissions and can impact financial
performance of the policy.
Divestment is
a risk that we must address through investment
practices such as advocacy and engagement.
Portfolio construction constraints may constrain future returns, especially if potential long-term outperformers are excluded from the investment universe. A divest-and-exclude approach is often narrowly focused on mitigating perceived risk by removing those risks; for actively managed sustainable funds, this approach may also unnecessarily remove opportunity.
An
investment portfolio that is actively managed can provide additional risk-reward opportunities by identifying forward-looking heavy carbon-emitting companies that are pivoting toward less City Council City Council Regular Meeting 341
carbon-intensive operating models.
The City is working closely with Meeder Public Funds (Meeder) to manage the City's investments. Meeder has been serving public entities since 1990, and is well respected in the industry. Even though the City’s IP has not been approved since 2022, Meeder is well versed with the City’s IP and they are committed to ensuring that our portfolio remains in compliance with the state laws and the City’s IP.
The Exxon security matu
red on March 19, 2025. The investments managed by Meeder consist of 12.59% Treasuries, 19.34% Agencies, Negotiable CDs 10.69%, and corporate bonds
10.17%.
Rather than adding language to the portfolio that would restrict carbon-intensive businesses altogether, the City Treasurer recommends Council to direct staff to earmark the interest earned from fossil fuel and create dedicated funds to receive and manage revenue from fossil fuel taxes or levies. This will ensure the funds are directed towards specifics provisions and allocate funds for designated projects that is geared towards low carbon alternatives or climate related infrastructures.
The aim of this document is to provide the necessary clarity and suggest the parameters that will guide the City's cash investment strategy. Cities are required to review their Investment Policy and Strategy and seek council's approval annually. The Investment Policy has been amended to update Section 8.0, Authorized and Suitable Investments to include Joint Powers Authority (JPA). Joint powers authorities are particularly widely used in California where they are permitted under Section 6502 of the Government Code.
It is the Policy of the City of Lynwood, that giving due regard to the safety and risk of investment, all available funds shall be managed in conformance with these legal and administrative guidelines (the Policy) and, to the maximum extent possible, surplus funds shall be invested at the highest rates obtainable at the time of investment. Adequate operating funds shall be maintained in a depository institution(s), which affords the City safety with respect to its funds, as well as the ability to meet all of the City's cash receipts and disbursement needs.
Fiscal Impact:
Limiting investment options can have significant fiscal impacts, potentially leading to reduced economic growth, slower productivity, and lower living standards for future generations. This is because investment is a key driver of economic expansion, and restricting it can hinder innovation, technological advancements and overall economic activity.
Coordinated With:
Meeder Investment formerly FHN Financial Main Street Advisors ATTACHMENTS:
City Council City Council Regular Meeting 342
Treasurer's Investment Policy - 2024.docx
Treasurer's Investment Policy - 2024 (Revised Per Finance Committee Recommendation).docx
Resolution - City Investment Policy w Recommended Ad Hoc Language.docx Resolution - City Investment Policy.docx
Description
City Council City Council Regular Meeting 343
Revised January 16, 2024
PURPOSE
The purpose of this Statement of Investment Policy (“Policy”) is to establish guidelines for the prudent investment of the City of Lynwood’s idle cash or reserve cash and outlines the policies essential to ensure the safety and financial strength of the City’s investment portfolio.
This policy is based on the principles of prudent money management and conforms to all applicable Federal and State Laws governing the investment of public funds under the control of the Treasurer.
1.0 POLICY:
Annually, in accordance with California Government Code (CGC) Section 53646, the Treasurer will render to the City Council a Statement of Investment Policy for consideration and approval at a public meeting. Any investments currently held at that time that do not meet the guidelines of this policy, as changed from time to time by the City Council, shall be exempt from the requirements of this policy.
However, at the investment maturity or liquidation, such funds shall be reinvested only as provided by this policy, which offer guidance to brokers and any external investment advisors on the investment of City funds. This investment policy applies to all investment activities of the City, except for the Employees Retirement and Deferred compensation funds are excluded because it is separately managed by a third-party administrator. This policy applies to all City funds, except for bond proceeds that are managed by trustees. Trustees must comply with the provision of bond’s indenture agreements.
2.0 SCOPE:
Policy statements outlined in this document apply to the City’s pooled funds, as well as other financial assets under the City Treasurer’s control unless exempted by resolution or by statute. These funds are accounted for in the City of Lynwood Comprehensive Annual Financial Report (CAFR), and include:
General Fund
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Trust and Agency Funds
Retirement Pension Funds
Internal Service Funds
Fiduciary-Agency Fund
Any new fund created by the City Council unless specifically exempted All monies entrusted to the Treasurer shall be invested in accordance to California Government Code Section 53601, 53602 and 53635.
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INVESTMENT POLICY
2 3.0 PRUDENCE:
The standard of prudence to be used by investment officials shall be the “prudent investor” standard (CGC Section 53600.3) and shall be applied in the context of managing an overall portfolio which states that:
“a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims to safeguard the principal and maintain the liquidity needs of the City”.
At the time of purchase, it is the City’s intent to hold all investments until maturity to ensure the return of all invested principal. However, it is recognized that market prices of securities will vary depending on economic and interest rate condition at any point in time.
The City Treasurer, and other individuals who may be designated to manage the City’s investment portfolio, when acting within the intent and scope of this investment policy and other authorized written procedures, and when exercising due diligence, are relieved of personal liability for the individual security’s credit risk or market price change of a security or other investment, provided that deviations from expectations are reported to the City of Lynwood in a timely manner and that appropriate action is taken to mitigate unforeseen adverse conditions.
4.0 OBJECTIVES:
Within the overriding requirement of compliance with all Federal, State and local laws governing the investment of moneys under the control of the Treasurer, and as specified in CGC Section 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, the primary objective of a trustee shall be to safeguard the principal of the funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a market rate of return on the funds under its control.
Taking into account the City’s daily and periodic cash flow needs, the City desires to invest all temporarily idle funds as close to 100% as is reasonably possible. At least 30% of the overall investment portfolio will be comprised of investments maturing in one year or less. No single investment shall be purchased with a term to maturity at the date of purchase that exceeds 5 years, except as special circumstances dictate and with the expressed approval of the City Treasurer.
The basic goal of the City’s investment policy is to ensure safety and availability of temporarily idle funds when they are needed. The primary objectives, in priority order, of the investment activities shall be:
Safety: Safety of principal is the foremost objective of the investment program. Each investment transaction must seek to ensure that capital losses are avoided, whether from securities default, broker-dealer default, 345
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3 or erosion of market value. The City will endeavor to preserve principal by mitigating both credit risk and market risk, as specified below.
Credit risk, which is defined as the risk of loss due to insolvency or other failure of the issuer of a security, must be mitigated by purchasing investment grade securities and by diversifying the investment portfolio so that the failure of any one issuer does not unduly harm the City’s capital base and cash flow.
Market risk, which is defined as market value fluctuations, must be mitigated by limiting the average maturity of the City’s investment portfolio to three years, limiting the maximum maturity of any one security to five years, structuring the portfolio to take into account historic and current cash flow analysis, eliminating the need to sell securities for the sole purpose of short term speculation.
Liquidity: Because the City operates its own water utility and bills monthly for utility services, cash flow is generated on a daily basis. Historical cash flow trends must be compared to current cash flow requirements on an ongoing basis to ensure that the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all reasonable anticipated operating requirements. In managing City funds for cash flow needs, it is generally not the intention to liquidate a security prior to maturity in order to meet expected cash flow needs. However, it is important that when exceptional conditions require, and there are unexpected cash flow demands, a security sale can be done quickly.
Return on the Investment : The investment portfolio shall be designed and managed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment objectives, authorized investments and the cash flow needs of the City.
5.0 DELEGATION OF AUTHORITY:
In accordance with Section 53607 of the Government Code, the City of Lynwood management responsibility for the investment program is hereby delegated to the Treasurer, who shall be responsible for all transactions undertaken and shall establish a system of control to regulate the activities of subordinate officials, and their procedures in the absence of the Treasurer. Under the provision of CGC Section 53600.3, the Treasurer is a trustee and a fiduciary subject to the prudent investor standard. The City may delegate to the City Treasurer the authority to invest or reinvest City funds for a one-year period.
The Treasurer may delegate all, or a portion of his/her investment authority to a Deputy City Treasurer. Prior to the delegation of the investment authority to a Deputy City Treasurer, the Treasurer shall notify the City council and request confirmation of the delegation. Delegation of investment authority will not remove or abridge the Treasurer’s investment responsibility.
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4 The City may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy.
The Treasurer shall establish written investment policy procedures for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer.
The Treasurer and Deputy Treasurer shall attend at least one training session within twelve months after taking office or being appointed, and at least annually thereafter. The training session should be sponsored by a professional organization, such as, but not limited to: Government Finance Officers Association (GFOA), California Society of Municipal Finance Officers (CSMFO), Municipal Treasurers Association of the United States & Canada (MTA, US&C), California Municipal Treasurer Association (CMTA), and Government Investment Officers Association (GIOA). Training must include some or all of the following components: investment controls, security risks, strategy risk, market risks, and compliance with Federal, State and local laws.
6.0 ETHICS AND CONFLICT OF INTEREST:
Elected officials, City officers, employees and any other individual involved in the investment operations are prohibited from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions, or which could give the appearance thereof. Furthermore, these same individuals shall disclose any material financial interest in financial institutions that conduct business within their jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City. The Treasurer shall immediately disclose any financial interest which is subject to disclosure under the California Political Reform Act or would constitute a conflict of interest under Government Code Section 1090 to the City Manager. All other City Investment Officials shall immediately disclose any financial interest which is subject to disclosure under the California Political Reform Act or would constitute a conflict of interest under Government Code Section 1090 to the City Manager.
7.0 AUTHORIZED DEALERS AND INSTITUTIONS:
The City may conduct investment transactions only with banks, savings and loans associations, and registered broker-dealers. Any investments other than those purchased directly from an issuer must be purchased from (i) an individual or entity licensed by the State as a broker-dealer, as defined in Section 25004 of the Corporations Code, and which is a member of the Financial Industry Regulatory Authority, (FINRA) or (ii) from a member of a federally-regulated securities 347
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5 exchange, or (iii) a national or state charted bank; or (iv) a federal or state association (as defined by Section 5102 of the Financial Code); or (v) a brokerage firm designated as a primary government dealer by the Federal Reserve Bank.
The City Treasurer, either directly or through an authorized party, must investigate and evaluate all financial institutions, on an annual basis, that desire to do business with the City in order to determine whether they are adequately capitalized and whether they make markets in securities that are appropriate to the City’s needs.
This may be accomplished by the following: a financial institution to complete and return an appropriate questionnaire, audited financial statements and proof of Financial Industry Regulatory Authority (FINRA) registration and good standing.
Nothing in this section precludes the City from engaging the services of a Registered Investment Advisory firm to assist the City, on a discretionary basis, with the investment of the City’s portfolio.
8.0 AUTHORIZED AND SUITABLE INVESTMENTS:
Investments must be made in accordance with the “Prudent Investor Rule” that is cited under the heading “Prudence.”
The City is subject to California Government Code, Sections 53600 et seq. within the context of these limitations, the following investments are authorized, subject to the restrictions noted below:
A. United States Treasury Obligations, Bills, Notes, and Bonds or similar instruments for which the full faith and credit of the United States is pledged for payment of principal and interest. There is no limitation on the percentage of the City’s surplus funds that can be invested in these instruments. The maximum maturity period may not exceed 5 years.
B. US Agency and/or Obligations, Securities that represent an obligation of several agencies or instrumentalities which administer selected lending programs of the U.S. Government. These agencies include, but are not limited to, obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, the Federal Home Loan Board (FHLB), Federal Home Loan Mortgage Corporation (FHLMC), Federal Farm Credit Bank (FFCB), and the Federal National Mortgage Association (FNMA).
Although there is no percentage limitation on investments in these obligations, the “Prudent Investor Rule” applies to obligations issued by any of these agencies, because U.S. Government backing is implied rather than guaranteed. The maximum maturity period may not exceed 5 years.
C. Commercial Paper rated “P-1” by Moody’s Investor Services or “A-1” by Standard & Poor’s, and issued by a domestic corporation having assets in excess of $500,000,000 and has a long-term debt rating of “A2” or higher by Moody’s or “A” or higher rating by S&P. The purchase of eligible commercial paper may not exceed 270 days maturity nor represent more than 5% of the outstanding paper of an issuing corporation. No more than 2% of the market value of the portfolio may be invested in commercial paper issued by one corporation. Medium term corporate holdings must be 348
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6 included when calculating this 2% limitation. The Purchase of commercial paper not to exceed 25% of the City’s surplus funds.
D. FDIC Insured Certificates of Deposit issued by a nationally or state- chartered bank, or a state of federal savings and loan association, or by a state-licensed branch of a foreign bank. The invested amount per institution shall not exceed the current FDIC insured limit (currently $250,000). Purchases of eligible FDIC insured certificates of deposit shall not exceed five years to maturity.
E. Negotiable Certificates of Deposit issued by a national or state-charted bank or a state or federal saving and loan association. Negotiable certificates of deposit may not exceed 30% of the City’s total portfolio.
Certificates purchased from a bank may not exceed 30% of the City’s total portfolio. Certificates purchased from a bank may not exceed the shareholder’s equity in the bank. Certificates over $500,000 purchased from savings and loan associations may not exceed the net worth of the association. The maximum maturity period may not exceed 5 years.
F. State of California Local Agency Investment Fund (LAIF) Funds may be invested in LAIF; a State of California managed investment pool, up to the maximum dollar amounts per separate legal entity in conformance with the account balance limits authorized by the State Treasurer. Annual review of LAIF’s Pool Money Investment Board Annual Report will be conducted to continue to ensure LAIF’s investment policy, standards, and rate of return are compatible with the City’s risk tolerance. Maximum investment limits are dependent upon limits established under the Local Agency Investment Funds guidelines.
G. Funds held under the terms of a Trust Indenture or other contract or debt issuance agreement may be invested according to the provisions of those indentures’ agreements.
H. The City may invest in non-negotiable time deposits that are collateralized as required by the California Government Code, and that are maintained in banks and savings and loans associations that meet the requirement for accepting deposits of public funds. Because time deposits are not liquid, no more than 25% of the City’s temporarily idle funds may be invested in this category. A maximum maturity period may not exceed one year.
I. Medium term corporate notes with a maximum maturity of 5 years may be purchased. Securities eligible for investment must be rated “A2” or higher by Moody’s or “A” or higher rating by S&P. Medium term notes may not exceed 30% of the market value of the City’s portfolio, and not more than 2% of the market value of the portfolio may be invested in notes issued by any one corporation. Commercial paper holdings must be included when calculating this 2% limitation. The maximum maturity period may not exceed 5 years.
J. Shares of beneficial interest issued by diversified management companies, that are money market funds (MMFs) registered with the 349
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7 Securities and Exchange Commission under the Investment Advisory Company Act of 1940 (15 U.S.C. Sec 80a-1 et seq.). To be eligible for investment pursuant to this subdivision these companies shall either (I) attain the highest ranking letter or numerical rating provided by not less than two of the three largest nationally recognized rating services or (2) have an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in money market instruments with assets in excess of $500,000,000.
The purchase price of the MMF shares shall not exceed 20% of the City's surplus funds. No more than 10% of the City’s surplus funds may be invested in shares of any one MMF.
K. Supranational Debt Obligations. United States dollar-denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development of the World Bank (IBRD), International Finance Corporation (IFC), and Inter-American Development Bank (IABD), with maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments must have a minimum rating of AA or better by at least two of the following NRSRO’s: Moody’s, S&P, or Fitch, and shall not exceed 30% of the City’s surplus funds, and not more than 5% of the market value of the portfolio may be invested in notes issued by any one supranational. The maximum maturity period may not exceed 5 years.
L. Joint Power Authority. Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria
:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive.
(3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).
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8 9.0 UNAUTHORIZED INVESTMENTS:
State and Federal laws notwithstanding, any investment not specifically described herein including, but not limited to, reverse repurchase agreements, derivatives, options, futures, zero coupon bonds, inverse floaters, range notes, first mortgages or trust deeds, collateralized mortgage obligations, (CMO’s), limited partnerships, real estate investments, trusts (REIT’s), open-end mutual funds with a weighted average maturity greater than 180 days, unregulated and/or uninsured investment pools, common stock, preferred stock, commodities, precious metals, securities with high price volatility, limited marketability (less than three active bidders), securities that may default on interest payments and any other speculative investment deemed inappropriate under the prudent investor standard are strictly prohibited.
10.0 REVIEW OF INVESTMENT PORTFOLIO
The securities held by the City of Lynwood must be in compliance with Section 8.0 Authorized and Suitable Investments at the time of purchase. The Quarterly Investment report will identify any securities that do not comply. The Treasurer shall report any instances of noncompliance identified through the review of the portfolio to the City Council.
11.0 COLLATERAL REQUIREMENTS:
Collateral for Certificates of Deposit (CD) and Negotiated Certificates of Deposit (NCD) must comply with Government Code, Chapter 4, Bank Deposit law Section 16500 et seq. and the Savings and Loan and Credit Union Deposit Law Government Code Section 16600 et seq.
In order to reduce market risk and provide a level of security for all funds, the market value of securities that underlay Certificates of Deposit shall be valued at 110% of the market value of principal and accrued interest. Repurchase Agreements shall be valued at 102% of the market value of principal and accrued interest.
In conformity with the provisions of the Federal Bankruptcy Code that provide for the liquidation of securities held as collateral, the only securities acceptable as collateral are certificates of deposit, commercial paper, eligible bankers acceptances, and medium term notes or securities that are the direct obligation of, or are fully guaranteed as to principal and interest by the United States or any City of the United States.
An independent third party with whom the City has a current custodial agreement will always hold collateral.
The right of collateral substitution is granted with prior approval of the City Treasurer.
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9 12.0 SAFEKEEPING AND CUSTODY
All securities owned by the City shall be held in safekeeping by the City’s custodial bank or by a third-party bank trust department, acting as agent for the City under the terms of a custody agreement or master repurchase agreement. All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a Delivery-Versus-Payment (DVP) basis through the City’s safekeeping agent. Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings.
13.0 DIVERSIFICATION:
The Treasurer shall maintain a diversified portfolio to minimize the risk of loss resulting from over concentration of assets in a specific maturity, issuer, or security type. With the exception of U.S. Treasury securities, Federal agencies, and LAIF, no more than 50% of the City’s total investment portfolio will be invested in with a single institution. Additionally, no more than 2%, calculated at the time of purchase, of the portfolio shall be invested in one name or with one credit counterparty.
14.0 MAXIMUM MATURITIES:
To the extent possible the portfolio will attempt to match its investments with anticipated cash flow requirements. Matching maturities with cash flow dates will reduce the need to sell securities prior to maturity, thus reducing a potential realized loss. The portfolio will not directly invest in securities maturing more than five (5) years from the date of purchase pursuant to Government Code Section 53601. (Excluding LAIF). The weighted average maturity of the portfolio shall not exceed 3 years.
Reserve funds may be invested in securities exceeding one year if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. No portion of the portfolio may exceed five years.
15.0 INTERNAL CONTROL:
The Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the City’s assets are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that those objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits to be derived and that the valuation of costs and benefits requires estimates and judgments by management. Internal control procedures shall address:
Separation of duties
Control of collusion
Custodial safekeeping
Avoidance of physical delivery of securities
Written confirmation of transfers for investments and wire transfers 352
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10 Written procedures for placing investment transactions Delegation of authority to investment officials
16.0 PERFORMANCE STANDARDS:
The investment portfolio shall be designed with the objective of obtaining a market rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and cash flow needs:
a. Investment Strategy: The portfolio’s basic investment strategy is to buy and hold investments until maturity. However, the Treasurer may sell a security due to adverse changes in credit risk or, due to unexpected cash flow needs, or to improve the quality, yield, or target duration of the portfolio.
b. Market Yield (Benchmark): The City portfolio is managed with the objective of obtaining a market rate of return, commensurate with identified risk constraints and cash flow characteristics. The appropriate benchmarks will be periodically reviewed by the City Treasurer.
17.0 REPORTING:
In compliance with Government code Section 53607 and 53646, the Treasurer shall provide the City Council quarterly investment reports, which provide a clear picture of the status of the current investment portfolio.
The Quarterly Investment Report will include the following information: portfolio statistics, portfolio performance, compliance reporting requirements, and investment trading:
Portfolio Statistics
Classification of the investment, the percentage of the total portfolio which each type of investment represents, issuer, CUSIP, purchase date, rating of security, date of maturity, par and dollar amount invested on all securities and investments.
Current market value and the source of the market value. Weighted average maturity of the investment portfolio. Maturity aging by type of investment.
Unrealized gain or loss resulting from appreciation or depreciation in the market value of securities.
Compliance Reporting Requirements
Cash management projection: Statement denoting the ability of the City to meet its expected obligations over the next six months. Statement of compliance with the Policy: Reasons for and number of violations or exceptions to the investment policy during the quarter being reported on, as well as prior violations or exceptions which have not yet been corrected.
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11 Investment Trading Activity
All investment transactions occurring during the quarter whether or not the transaction has been fully settled.
A description of any security purchased during the quarter with a maturity exceeding five years.
A description of any security downgraded below the minimum acceptable ratings level (below prime for short term ratings, or below investment grade for long term ratings).
18.0 INVESTMENT POLICY ADOPTION:
The Treasurer shall annually render to the City Council a Statement of Investment policy as required in Section 53646(a) of the Government Code. The City’s investment policy shall be adopted by resolution of the City Council and shall be reviewed annually; any modification made thereto must be approved by the legislative body.
19.0 GLOSSARY
Definitions of investment-related terms are listed on Exhibit A. 354
Revised January 16, 2024
EXHIBIT A
GLOSSARY
ACCRETION: Adjustment of the difference between the price of a bond bought at an original discount and the par value of the bond.
AGENCIES: Federal agency securities and/or Government-sponsored enterprises (GSEs), also known as U.S. Government instrumentalities. Securities issued by Government National Mortgage Association (GNMA) are considered true agency securities, backed by the full faith and credit of the U.S. Government. GSEs are financial intermediaries established by the federal government to fund loans to certain groups of borrowers, for example homeowners, farmers and students and are privately owned corporations with a public purpose. The most common GSEs are Federal Farm Credit System Banks, Federal Home Loan Banks, Federal Home Loan Mortgage Association, and Federal National Mortgage Association.
AMORTIZATION: Accounting procedure that gradually reduces the cost value of a limited life or intangible asset through periodic charges to income. For fixed assets, the term used is “depreciation”. It is common practice to amortize any premium over par value paid in the purchase of preferred stock or bond investments.
APPRECIATION: Increase in the value of an asset such as a stock bond, commodity or real estate.
ASKED PRICE: The price a broker/dealer offers to sell securities.
ASSET BACKED: A type of security that is secured by receivables, such as credit card and auto loans. These securities typically pay principal and interest monthly.
BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
This money market instrument is used to finance international trade.
BASIS POINT: One-hundredth of one percent (i.e., 0.01%).
BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investment.
BID PRICE: The price a broker/dealer offers to purchase securities.
BOND: A financial obligation for which the issuers promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.
BOOK RATE OF RETURN: A measure of a portfolio’s performance over time. It is the internal rate of return which equates the beginning value of the portfolio with the ending value, and includes interest earnings and realized gains and losses on the portfolio. 355
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13 BOOK VALUE: The value at which a debt security is shown on the holder’s balance sheet. Book value is acquisition cost less amortization of premium or accretion of discount.
BROKER: A broker acts as an intermediary between a buyer and seller for a commission and does not trade for his/her own risk and account or inventory.
CALLABLE SECURITIES: A security that can be redeemed by the issuer before the scheduled maturity date.
CASH FLOW: An analysis of all changes that affect the cash account during a specified period.
CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable.
COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
COLLATERALIZED MORTGAGE OBLIGATION (CMO) : A type of mortgage-backed security that creates separate pools of pass-through rates for different classes of bondholders with varying maturities, called tranches. The repayments from the pool of pass-through securities are used to retire the bonds in the order specified by the bonds' prospectus.
COMMERCIAL PAPER: Short-term, unsecured, negotiable promissory notes of corporations.
COMMERCIAL RECEIVABLES: Business debt owed to a creditor which may be used as collateral for asset backed securities. These receivables include equipment leases, building leases, and other business loans.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual financial report for the City. It includes combined statements and basic financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (GAAP).
CONDUIT FINANCING: A financing in which a governmental agency issues debt and the proceeds of the issue are loaned to a nongovernmental borrower who then applies the proceeds for a project financing or (if permitted by federal tax laws for a qualified 501(c)(3) bond) for working capital purposes.
CONSUMER RECEIVABLES: Consumer debt owed to a creditor which may be used as collateral for asset backed securities. These receivables include credit card, auto, and home equity loans.
CORPORATE NOTE: Debt instrument issued by a private corporation.
COUPON: The annual rate at which a bond pays interest. 356
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14 CREDIT ANALYSIS: An analysis of the economic and financial conditions to determine creditworthiness or the ability to meet debt obligations.
CREDIT RATINGS: A grade given to a debt instrument that indicates its credit quality.
Private independent rating services such as Standard & Poor's, Moody's and Fitch provide these evaluations of the issuer's financial strength, or its ability to pay principal and interest in a timely fashion. High graded credit ratings are as follows:
Moody's Standard & Poor’s Fitch
Long
Term
Short
Term
Long
Term
Short
Term
Long
Term
Short
Term
Aaa
P1
AAA
A1+
AAA
A1+
Aa1 AA+ AA+
Aa2 AA AA
Aa3 AA- AA-
A1 A+ A1 A+
A2 A A
A3 P2 A- A2 A- A2Baa1 BBB+ BBB+
CREDIT RISK: The risk that an obligation will not be paid and a loss will result due to a failure of the issuer of a security.
CUSIP: Stands for Committee on Uniform Securities Identification Procedures. A CUSIP number identifies most securities, including: stocks of all registered U.S. and Canadian companies, and U.S. government and municipal bonds. The CUSIP system—owned by the American Bankers Association and operated by Standard & Poor’s—facilitates the clearing and settlement process of securities. The number consists of nine characters (including letters and numbers) that uniquely identify a company or issuer and the type of security.
CURRENT YIELD: The annual interest on an investment divided by the current market value. Since the calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.
CUSTODIAN: A bank or other financial institution that keeps custody of stock certificates and other assets.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his/her own risk and account or inventory.
DEBENTURES: A bond secured only by the general credit of the issuers.
DEFEASED BOND ISSUES: Issues that have sufficient money to retire outstanding debt when due, so that the agency is released from the contracts and covenants in the bond documents.
DELIVERY VERSUS PAYMENT (DVP): Delivery of securities with a simultaneous exchange of money for the securities.
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15 DERIVATIVE: A financial instrument that is based on, or derived from, some underlying asset, reference date, or index.
DIRECT ISSUER: Issuer markets its own paper directly to the investor without use of an intermediary.
DISCOUNT: The difference between the cost of a security and its value at maturity when quoted at lower than face value.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns and risk profiles.
DURATION: A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity. Duration measures the price sensitivity of a bond to changes in interest rates.
EARNED INCOME YIELD THIS PERIOD (annualized): The Total net Earnings this period divided by Average Daily Portfolio Balance and the number of days in the period, multiplied by 365 (or 360 depending on the profile setting), and then multiplied by 100.
FACE VALUE: The principal amount owed on a debt instrument. It is the amount on which interest is computed and represents the amount that the issuer promises to pay at maturity.
FAIR VALUE: The amount at which a security could be exchanged between willing parties, other than in a forced or liquidation sale. If a market price is available, the fair value is equal to the market value.
FANNIE MAE: Trade name for the Federal National Mortgage Association (FNMA), a U.S. Government sponsored enterprise.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that provides insurance on bank deposits, guaranteeing deposits to a set limit per account, currently $100,000.
FEDERAL FARM CREDIT BANK (FFCB): Government-sponsored enterprise that consolidates the financing activities of the Federal Land Banks, the Federal Intermediate Credit Banks and the Banks for Cooperatives. Its securities do not carry direct U.S. government guarantees.
FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is considered to be the most sensitive indicator of the direction of interest rates, as it is currently pegged by the Federal Reserve through open-market operations.
FEDERAL GOVERNMENT AGENCY SECURITIES : Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. 358
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16 FEDERAL HOME LOAN BANKS (FHLB): Government sponsored enterprise (currently made up of 12 regional banks) that regulates and lends funds and provides correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. Although the banks operate under federal charter with government supervision, the securities are not guaranteed by the U. S. Government.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): Government sponsored enterprise that helps maintain the availability of mortgage credit for residential housing. FHLMC finances these operations by marketing guaranteed mortgage certificates and mortgage participation certificates. Its discount notes and bonds do not carry direct U.S. government guarantees.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): Government sponsored enterprise that is the largest single provider of residential mortgage funds in the United States. FNMA is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA securities do not carry direct U.S. Government guarantees.
FEDERAL OPEN MARKET COMMITTEE (FOMC): A committee of the Federal Reserve Board, which establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.
FEDERAL RESERVE SYSTEM: The central bank of the U.S. which consists of a seven- member Board of Governors, 12 regional banks and about 5,700 commercial banks that are members.
FED WIRE: A wire transmission service established by the Federal Reserve Bank to facilitate the transfer of funds through debits and credits of funds between participants within the Fed system.
FREDDIE MAC: Trade name for the Federal Home Loan Mortgage Corporation (FHLMC), a U.S. government sponsored enterprise.
FITCH INDIVIUAL BANK RATINGS: Individual Ratings are assigned to banks that are legal entities. These ratings, which are internationally comparable, attempt to assess how a bank would be viewed if it were entirely independent and could not rely on external support. These ratings are designed to assess a bank's exposure to, appetite for, and management of risk, and thus represent the agency's view on the likelihood that it would run into significant financial difficulties such that it would require support. The ratings are as follows:
A. A very strong bank - Characteristics may include outstanding profitability and balance sheet integrity, franchise, management, operating environment or prospects.
B. A strong bank - There are no major concerns regarding the bank.
Characteristics may include strong profitability and balance sheet integrity, franchise, management, operating environment or prospects. 359
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17 C. An adequate bank, which, however, possesses one or more troublesome aspects. There may be some concerns regarding its profitability and balance sheet integrity, franchise, management, operating environment or prospects .
D. A bank that has weaknesses of internal and/or external origin. There are concerns regarding its profitability and balance sheet integrity, franchise, management, operating environment or prospects. Banks in emerging markets are necessarily faced with a greater number of potential deficiencies of external origin.
E. A bank with very serious problems, which either requires or is likely to require external support.
F. A bank that has either defaulted or, in Fitch Ratings' opinion, would have defaulted if it had not received external support. Examples of such support include state or local government support, (deposit) insurance funds, acquisition by some other corporate entity or an injection of new funds from its shareholders or equivalent.
Note: Gradations may be used among the ratings A to E: i.e. A/B, B/C, C/D, and D/E. No gradations apply to the F rating.
GINNIE MAE: Trade name for the Government National Mortgage Association (GNMA), a direct obligation bearing the full faith and credit of the U.S. Government.
GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB): A standard-setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.
GUARANTEED INVESTMENT CONTRACTS (GICS): An agreement acknowledging receipt of funds, for deposit, specifying terms for withdrawal, and guaranteeing a rate of interest to be paid.
INACTIVE DEPOSITS: Funds not immediately needed for disbursement.
INTEREST RATE: The annual yield earned on an investment, expressed as a percentage.
INTEREST RATE RISK: The risk of gain or loss in market values of securities due to changes in interest-rate levels. For example, rising interest rates will cause the market value of portfolio securities to decline.
INVESTMENT AGREEMENTS: A contract providing for the lending of issuer funds to a financial institution which agrees to repay the funds with interest under predetermined specifications.
INVESTMENT GRADE (LONG TERM RATINGS): The minimum, high quality ratings for long term debt such as corporate notes. Investment Grade ratings are as follows: A3 (Moody’s), A- (S&P), and A- (Fitch).
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18 INVESTMENT PORTFOLIO: A collection of securities held by a bank, individual, institution or government agency for investment purposes.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash with minimum risk of principal.
LOCAL AGENCY INVESTMENT FUND (LAIF): An investment pool sponsored by the State of California and administered/managed by the State Treasurer. Local government units, with consent of the governing body of that agency, may voluntarily deposit surplus funds for the purpose of investment. Interest earned is distributed by the State Controller to the participating governmental agencies on a quarterly basis.
LOCAL AGENCY INVESTMENT POOL: A pooled investment vehicle sponsored by a local agency or a group of local agencies for use by other local agencies.
MARK TO MARKET: Current value of securities at today's market price.
MARKET RISK: The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates. Systematic risk of a security that is common to all securities of the same general class (stocks, bonds, notes, money market instruments) and cannot be eliminated by diversification (which may be used to eliminate non- systematic risk).
MARKET VALUE: The price at which a security is currently being sold in the market.
See FAIR VALUE.
MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase agreements and reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.
MATURITY: The date that the principal or stated value of a debt instrument becomes due and payable.
MEDIUM-TERM NOTES (MTNs): Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts either on a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.
MODIFIED DURATION: The percent change in price for a 100-basis point change in yields. This is a measure of a portfolio’s or security’s exposure to market risk.
MONEY MARKET: The market in which short term debt instruments (Treasury Bills, Discount Notes, Commercial Paper, Banker’s Acceptances and Negotiable Certificates of Deposit) are issued and traded.
MORTGAGED BACKED SECURITIES: A type of security that is secured by a mortgage or collection of mortgages. These securities typically pay principal and interest monthly. 361
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19 MUNICIPAL BONDS: Debt obligations issued by states and local governments and their agencies, including cities, counties, government retirement plans, school districts, state universities, sewer districts, municipally owned utilities and authorities running bridges, airports and other transportation facilities.
MUTUAL FUND: An entity that pools money and can invest in a variety of securities which are specifically defined in the fund’s prospectus.
NEGOTIABLE CERTIFICATE OF DEPOSIT: A large denomination certificate of deposit which can be sold in the open market prior to maturity.
NET PORTFOLIO YIELD: Calculation in which the 365-day basis equals the annualized percentage of the sum of all Net Earnings during the period divided by the sum of all Average Daily Portfolio Balances.
NEW ISSUE: Term used when a security is originally “brought” to market.
NOTE: A written promise to pay a specified amount to a certain entity on demand or on a specified date.
OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit: Sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.
PAR VALUE: The amount of principal which must be paid at maturity. Also referred to as the face amount of a bond. See FACE VALUE.
PORTFOLIO: The collection of securities held by an individual or institution.
PREMIUM: The difference between the par value of a bond and the cost of the bond, when the cost is above par.
PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. These dealers are authorized to buy and sell government securities in direct dealing with the Federal Reserve Bank of New York in its execution of market operations to carry out U.S. monetary policy. Such dealers must be qualified in terms of reputation, capacity, and adequacy of staff and facilities.
PRIME (SHORT TERM RATING): High quality ratings for short term debt such as commercial paper. Prime ratings are as follows: P1 (Moody’s), A1 (S&P), and F1 (Fitch).
PRINCIPAL: The face value or par value of a debt instrument, or the amount of capital invested in a given security.
PROSPECTUS: A legal document that must be provided to any prospective purchaser of a new securities offering registered with the Securities and Exchange Commission that typically includes information on the issuer, the issuer’s business, the proposed use of 362
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20 proceeds, the experience of the issuer’s management, and certain certified financial statements (also known as an “official statement”).
PRUDENT INVESTOR STANDARD: A standard of conduct for fiduciaries. Investments shall be made with judgment and care--under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
PUBLIC DEPOSITS: A bank that is qualified under California law to accept a deposit of public funds.
PURCHASE DATE: The date in which a security is purchased for settlement on that or a later date. Also known as the “trade date”.
RATE OF RETURN: 1) The yield, which can be attained on a security, based on its purchase price or its current market price. 2) Income earned on an investment, expressed as a percentage of the cost of the investment.
REALIZED GAIN (OR LOSS): Gain or loss resulting from the sale or disposal of a security.
REGIONAL DEALER: A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.
REPURCHASE AGREEMENT (RP or REPO): A transaction in which a counterparty or the holder of securities (e.g. investment dealer) sells these securities to an investor (e.g. the City) with a simultaneous agreement to repurchase them at a fixed date. The security "buyer" (e.g. the City) in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate the “buyer” for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, which is, increasing bank reserves.
REVERSE REPURCHASE AGREEMENT (REVERSE REPO): The opposite of a repurchase agreement. A reverse repo is a transaction in which the City sells securities to a counterparty (e.g. investment dealer) and agrees to repurchase the securities from the counterparty at a fixed date. The counterparty in effect lends the seller (e.g. the City) money for the period of the agreement with terms of the agreement structured to compensate the buyer.
RISK: Degree of uncertainty of return on an asset.
SAFEKEEPING: A service which banks offer to clients for a fee, where physical securities are held in the bank’s vault for protection and book-entry securities are on record with the Federal Reserve Bank or Depository Trust Company in the bank’s name for the benefit of the client. As agent for the client, the safekeeping bank settles securities transactions, collects coupon payments, and redeems securities at maturity or on call date, if called.
SECURITIES AND EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation. 363
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21 SEC RULE 15C3-1: See UNIFORM NET CAPITAL RULE.
SECONDARY MARKET: A market for the repurchase and resale of outstanding issues following the initial distribution.
SECURITIES: Investment instruments such as notes, bonds, stocks, money market instruments and other instruments of indebtedness or equity.
SETTLEMENT DATE: The date on which a trade is cleared by delivery of securities against funds.
SPREAD: The difference between two figures or percentages. It may be the difference between the bid (price at which a prospective buyer offers to pay) and asked (price at which an owner offers to sell) prices of a quote, or between the amount paid when bought and the amount received when sold.
STRUCTURED NOTE: A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include “inverse floating rate” notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising and “dual index floaters”, which pay interest based on the relationship between two other interest rates, for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.
STUDENT LOAN MARKET ASSOCIATION (SLMA): Government-sponsored enterprise that purchases student loans from originating financial institutions and provides financing to state student loan agencies. It provides a national secondary market for federally- sponsored student loans and credit to participants in the post-secondary education lending sector.
SUBORDINATED DEBT: Debt over which senior debt has priority. In the event of a bankruptcy, subordinated debt holders receive payment only after senior debt holders are paid in full.
TIME DEPOSIT: A deposit with a California bank or savings and loan association for a specific amount and with a specific maturity date and interest rate. Deposits of up to $100,000 are insured by FDIC. Deposits over $100,000 are collateralized above the insurance with either government securities (at 110% of par value), first trust deeds (at 150% of par value), or letters of credit (at 105% of par value).
TOTAL RATE OF RETURN: A measure of a portfolio’s performance over time. It is the internal rate of return which equates the beginning value of the portfolio with the ending value, and includes interest earnings and realized and unrealized gains and losses on the portfolio. For bonds held to maturity, total return is the yield to maturity.
TRUSTEE OR TRUST COMPANY OR TRUST DEPARTMENT OF A BANK: A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract. 364
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22 UNDERWRITER: A dealer which purchases a new issue of municipal securities for resale.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
U.S. GOVERNMENT AGENCY SECURITIES: Securities issued by U.S. government agencies, most of which are secured only by the credit worthiness of the particular agency.
See AGENCIES.
U.S. TREASURY OBLIGATIONS: Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are the benchmark for interest rates on all other securities in the U.S. The Treasury issues both discounted securities and fixed coupon notes and bonds. The income from Treasury securities is exempt from state and local, but not federal, taxes.
TREASURY BILLS: Securities issued at a discount with initial maturities of one year or less. The Treasury currently issues three-month and six-month Treasury bills at regular weekly auctions. It also issues very short-term “cash management” bills as needed to smooth out cash flows.
TREASURY NOTES: Intermediate-term coupon-bearing securities with initial maturities of one year to ten years.
TREASURY BOND: Long-term coupon-bearing securities with initial maturities of ten years or longer.
UNREALIZED GAIN (OR LOSS): Gain or loss that has not become actual. It becomes a realized gain (or loss) when the security in which there is a gain or loss is actually sold.
See REALIZED GAIN (OR LOSS).
VOLATILITY: Characteristic of a security, commodity or market to rise or fall sharply in price within a short-term period.
WEIGHTED AVERAGE MATURITY: The average maturity of all the securities that comprise a portfolio that is typically expressed in days or years.
WEIGHTED AVERAGE YIELD AT THE END OF PERIOD: The summation of each investment’s period-end scheduled book value multiplied by its ending sub-period yield and divided by the total scheduled book value. Investments maturing on or before the end date of the report period will not affect the weighted average yield.
WHEN ISSUED (WI): Short form of “when, as, and if issued.” WI refers to a transaction made conditionally because a security, although authorized, has not yet been issued with the exception of new Treasury, Agency, and Corporate issuances to settle within 21 days. 365
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23 YIELD: The annual rate of return on an investment expressed as a percentage of the investment. See CURRENT YIELD; YIELD TO MATURITY.
YIELD CURVE: Graph showing the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.
YIELD TO MATURITY: Concept used to determine the rate of return if an investment is held to maturity. It takes into account purchase price, redemption value, time to maturity, coupon yield, and the time between interest payments. It is the rate of income return on an investment, minus any premium or plus any discount, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond, expressed as a percentage.
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Revised January 16, 2024
PURPOSE
The purpose of this Statement of Investment Policy (“Policy”) is to establish guidelines for the prudent investment of the City of Lynwood’s idle cash or reserve cash and outlines the policies essential to ensure the safety and financial strength of the City’s investment portfolio.
This policy is based on the principles of prudent money management and conforms to all applicable Federal and State Laws governing the investment of public funds under the control of the Treasurer.
1.0 POLICY:
Annually, in accordance with California Government Code (CGC) Section 53646, the Treasurer will render to the City Council a Statement of Investment Policy for consideration and approval at a public meeting. Any investments currently held at that time that do not meet the guidelines of this policy, as changed from time to time by the City Council, shall be exempt from the requirements of this policy.
However, at the investment maturity or liquidation, such funds shall be reinvested only as provided by this policy, which offer guidance to brokers and any external investment advisors on the investment of City funds. This investment policy applies to all investment activities of the City, except for the Employees Retirement and Deferred compensation funds are excluded because it is separately managed by a third-party administrator. This policy applies to all City funds, except for bond proceeds that are managed by trustees. Trustees must comply with the provision of bond’s indenture agreements.
2.0 SCOPE:
Policy statements outlined in this document apply to the City’s pooled funds, as well as other financial assets under the City Treasurer’s control unless exempted by resolution or by statute. These funds are accounted for in the City of Lynwood Comprehensive Annual Financial Report (CAFR), and include:
General Fund
Special Revenue Funds
Capital Project Funds
Enterprise Funds
Trust and Agency Funds
Retirement Pension Funds
Internal Service Funds
Fiduciary-Agency Fund
Any new fund created by the City Council unless specifically exempted All monies entrusted to the Treasurer shall be invested in accordance to California Government Code Section 53601, 53602 and 53635.
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2 3.0 PRUDENCE:
The standard of prudence to be used by investment officials shall be the “prudent investor” standard (CGC Section 53600.3) and shall be applied in the context of managing an overall portfolio which states that:
“a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims to safeguard the principal and maintain the liquidity needs of the City”.
At the time of purchase, it is the City’s intent to hold all investments until maturity to ensure the return of all invested principal. However, it is recognized that market prices of securities will vary depending on economic and interest rate condition at any point in time.
The City Treasurer, and other individuals who may be designated to manage the City’s investment portfolio, when acting within the intent and scope of this investment policy and other authorized written procedures, and when exercising due diligence, are relieved of personal liability for the individual security’s credit risk or market price change of a security or other investment, provided that deviations from expectations are reported to the City of Lynwood in a timely manner and that appropriate action is taken to mitigate unforeseen adverse conditions.
4.0 OBJECTIVES:
Within the overriding requirement of compliance with all Federal, State and local laws governing the investment of moneys under the control of the Treasurer, and as specified in CGC Section 53600.5, when investing, reinvesting, purchasing, acquiring, exchanging, selling or managing public funds, the primary objective of a trustee shall be to safeguard the principal of the funds under its control. The secondary objective shall be to meet the liquidity needs of the depositor. The third objective shall be to achieve a market rate of return on the funds under its control.
Taking into account the City’s daily and periodic cash flow needs, the City desires to invest all temporarily idle funds as close to 100% as is reasonably possible. At least 30% of the overall investment portfolio will be comprised of investments maturing in one year or less. No single investment shall be purchased with a term to maturity at the date of purchase that exceeds 5 years, except as special circumstances dictate and with the expressed approval of the City Treasurer.
The basic goal of the City’s investment policy is to ensure safety and availability of temporarily idle funds when they are needed. The primary objectives, in priority order, of the investment activities shall be:
Safety: Safety of principal is the foremost objective of the investment program. Each investment transaction must seek to ensure that capital losses are avoided, whether from securities default, broker-dealer default, 368
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3 or erosion of market value. The City will endeavor to preserve principal by mitigating both credit risk and market risk, as specified below.
Credit risk, which is defined as the risk of loss due to insolvency or other failure of the issuer of a security, must be mitigated by purchasing investment grade securities and by diversifying the investment portfolio so that the failure of any one issuer does not unduly harm the City’s capital base and cash flow.
Market risk, which is defined as market value fluctuations, must be mitigated by limiting the average maturity of the City’s investment portfolio to three years, limiting the maximum maturity of any one security to five years, structuring the portfolio to take into account historic and current cash flow analysis, eliminating the need to sell securities for the sole purpose of short term speculation.
Liquidity: Because the City operates its own water utility and bills monthly for utility services, cash flow is generated on a daily basis. Historical cash flow trends must be compared to current cash flow requirements on an ongoing basis to ensure that the City’s investment portfolio will remain sufficiently liquid to enable the City to meet all reasonable anticipated operating requirements. In managing City funds for cash flow needs, it is generally not the intention to liquidate a security prior to maturity in order to meet expected cash flow needs. However, it is important that when exceptional conditions require, and there are unexpected cash flow demands, a security sale can be done quickly.
Return on the Investment : The investment portfolio shall be designed and managed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment objectives, authorized investments and the cash flow needs of the City.
5.0 DELEGATION OF AUTHORITY:
In accordance with Section 53607 of the Government Code, the City of Lynwood management responsibility for the investment program is hereby delegated to the Treasurer, who shall be responsible for all transactions undertaken and shall establish a system of control to regulate the activities of subordinate officials, and their procedures in the absence of the Treasurer. Under the provision of CGC Section 53600.3, the Treasurer is a trustee and a fiduciary subject to the prudent investor standard. The City may delegate to the City Treasurer the authority to invest or reinvest City funds for a one-year period.
The Treasurer may delegate all, or a portion of his/her investment authority to a Deputy City Treasurer. Prior to the delegation of the investment authority to a Deputy City Treasurer, the Treasurer shall notify the City council and request confirmation of the delegation. Delegation of investment authority will not remove or abridge the Treasurer’s investment responsibility.
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4 The City may engage the services of one or more external investment managers to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. Such external managers may be granted discretion to purchase and sell investment securities in accordance with this Investment Policy.
The Treasurer shall establish written investment policy procedures for the operation of the investment program consistent with this policy. The procedures should include reference to: safekeeping, wire transfer agreements, banking service contracts and collateral/depository agreements. Such procedures shall include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer.
The Treasurer and Deputy Treasurer shall attend at least one training session within twelve months after taking office or being appointed, and at least annually thereafter. The training session should be sponsored by a professional organization, such as, but not limited to: Government Finance Officers Association (GFOA), California Society of Municipal Finance Officers (CSMFO), Municipal Treasurers Association of the United States & Canada (MTA, US&C), California Municipal Treasurer Association (CMTA), and Government Investment Officers Association (GIOA). Training must include some or all of the following components: investment controls, security risks, strategy risk, market risks, and compliance with Federal, State and local laws.
6.0 ETHICS AND CONFLICT OF INTEREST:
Elected officials, City officers, employees and any other individual involved in the investment operations are prohibited from personal business activity that could conflict with proper execution of the investment program, or which could impair their ability to make impartial investment decisions, or which could give the appearance thereof. Furthermore, these same individuals shall disclose any material financial interest in financial institutions that conduct business within their jurisdiction, and they shall further disclose any large personal financial/investment positions that could be related to the performance of the City. The Treasurer shall immediately disclose any financial interest which is subject to disclosure under the California Political Reform Act or would constitute a conflict of interest under Government Code Section 1090 to the City Manager. All other City Investment Officials shall immediately disclose any financial interest which is subject to disclosure under the California Political Reform Act or would constitute a conflict of interest under Government Code Section 1090 to the City Manager.
7.0 AUTHORIZED DEALERS AND INSTITUTIONS:
The City may conduct investment transactions only with banks, savings and loans associations, and registered broker-dealers. Any investments other than those purchased directly from an issuer must be purchased from (i) an individual or entity licensed by the State as a broker-dealer, as defined in Section 25004 of the Corporations Code, and which is a member of the Financial Industry Regulatory Authority, (FINRA) or (ii) from a member of a federally-regulated securities 370
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5 exchange, or (iii) a national or state charted bank; or (iv) a federal or state association (as defined by Section 5102 of the Financial Code); or (v) a brokerage firm designated as a primary government dealer by the Federal Reserve Bank.
The City Treasurer, either directly or through an authorized party, must investigate and evaluate all financial institutions, on an annual basis, that desire to do business with the City in order to determine whether they are adequately capitalized and whether they make markets in securities that are appropriate to the City’s needs.
This may be accomplished by the following: a financial institution to complete and return an appropriate questionnaire, audited financial statements and proof of Financial Industry Regulatory Authority (FINRA) registration and good standing.
Nothing in this section precludes the City from engaging the services of a Registered Investment Advisory firm to assist the City, on a discretionary basis, with the investment of the City’s portfolio.
8.0 AUTHORIZED AND SUITABLE INVESTMENTS:
Investments must be made in accordance with the “Prudent Investor Rule” that is cited under the heading “Prudence.”
The City is subject to California Government Code, Sections 53600 et seq. within the context of these limitations, the following investments are authorized, subject to the restrictions noted below:
A. United States Treasury Obligations, Bills, Notes, and Bonds or similar instruments for which the full faith and credit of the United States is pledged for payment of principal and interest. There is no limitation on the percentage of the City’s surplus funds that can be invested in these instruments. The maximum maturity period may not exceed 5 years.
B. US Agency and/or Obligations, Securities that represent an obligation of several agencies or instrumentalities which administer selected lending programs of the U.S. Government. These agencies include, but are not limited to, obligations issued by banks for cooperatives, federal land banks, federal intermediate credit banks, the Federal Home Loan Board (FHLB), Federal Home Loan Mortgage Corporation (FHLMC), Federal Farm Credit Bank (FFCB), and the Federal National Mortgage Association (FNMA).
Although there is no percentage limitation on investments in these obligations, the “Prudent Investor Rule” applies to obligations issued by any of these agencies, because U.S. Government backing is implied rather than guaranteed. The maximum maturity period may not exceed 5 years.
C. Commercial Paper rated “P-1” by Moody’s Investor Services or “A-1” by Standard & Poor’s, and issued by a domestic corporation having assets in excess of $500,000,000 and has a long-term debt rating of “A2” or higher by Moody’s or “A” or higher rating by S&P. The purchase of eligible commercial paper may not exceed 270 days maturity nor represent more than 5% of the outstanding paper of an issuing corporation. No more than 2% of the market value of the portfolio may be invested in commercial paper issued by one corporation. Medium term corporate holdings must be 371
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6 included when calculating this 2% limitation. The Purchase of commercial paper not to exceed 25% of the City’s surplus funds.
D. FDIC Insured Certificates of Deposit issued by a nationally or state- chartered bank, or a state of federal savings and loan association, or by a state-licensed branch of a foreign bank. The invested amount per institution shall not exceed the current FDIC insured limit (currently $250,000). Purchases of eligible FDIC insured certificates of deposit shall not exceed five years to maturity.
E. Negotiable Certificates of Deposit issued by a national or state-charted bank or a state or federal saving and loan association. Negotiable certificates of deposit may not exceed 30% of the City’s total portfolio.
Certificates purchased from a bank may not exceed 30% of the City’s total portfolio. Certificates purchased from a bank may not exceed the shareholder’s equity in the bank. Certificates over $500,000 purchased from savings and loan associations may not exceed the net worth of the association. The maximum maturity period may not exceed 5 years.
F. State of California Local Agency Investment Fund (LAIF) Funds may be invested in LAIF; a State of California managed investment pool, up to the maximum dollar amounts per separate legal entity in conformance with the account balance limits authorized by the State Treasurer. Annual review of LAIF’s Pool Money Investment Board Annual Report will be conducted to continue to ensure LAIF’s investment policy, standards, and rate of return are compatible with the City’s risk tolerance. Maximum investment limits are dependent upon limits established under the Local Agency Investment Funds guidelines.
G. Funds held under the terms of a Trust Indenture or other contract or debt issuance agreement may be invested according to the provisions of those indentures’ agreements.
H. The City may invest in non-negotiable time deposits that are collateralized as required by the California Government Code, and that are maintained in banks and savings and loans associations that meet the requirement for accepting deposits of public funds. Because time deposits are not liquid, no more than 25% of the City’s temporarily idle funds may be invested in this category. A maximum maturity period may not exceed one year.
I. Medium term corporate notes with a maximum maturity of 5 years may be purchased. Securities eligible for investment must be rated “A2” or higher by Moody’s or “A” or higher rating by S&P. Medium term notes may not exceed 30% of the market value of the City’s portfolio, and not more than 2% of the market value of the portfolio may be invested in notes issued by any one corporation. Commercial paper holdings must be included when calculating this 2% limitation. The maximum maturity period may not exceed 5 years.
J. Shares of beneficial interest issued by diversified management companies, that are money market funds (MMFs) registered with the 372
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7 Securities and Exchange Commission under the Investment Advisory Company Act of 1940 (15 U.S.C. Sec 80a-1 et seq.). To be eligible for investment pursuant to this subdivision these companies shall either (I) attain the highest ranking letter or numerical rating provided by not less than two of the three largest nationally recognized rating services or (2) have an investment advisor registered or exempt from registration with the Securities and Exchange Commission with not less than five years’ experience investing in money market instruments with assets in excess of $500,000,000.
The purchase price of the MMF shares shall not exceed 20% of the City's surplus funds. No more than 10% of the City’s surplus funds may be invested in shares of any one MMF.
K. Supranational Debt Obligations. United States dollar-denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development of the World Bank (IBRD), International Finance Corporation (IFC), and Inter-American Development Bank (IABD), with maximum remaining maturity of five years or less, and eligible for purchase and sale within the United States. Investments must have a minimum rating of AA or better by at least two of the following NRSRO’s: Moody’s, S&P, or Fitch, and shall not exceed 30% of the City’s surplus funds, and not more than 5% of the market value of the portfolio may be invested in notes issued by any one supranational. The maximum maturity period may not exceed 5 years.
L. Joint Power Authority. Shares of beneficial interest issued by a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in subdivisions (a) to (r), inclusive. Each share shall represent an equal proportional interest in the underlying pool of securities owned by the joint powers authority. To be eligible under this section, the joint powers authority issuing the shares shall have retained an investment adviser that meets all of the following criteria
:
(1) The adviser is registered or exempt from registration with the Securities and Exchange Commission.
(2) The adviser has not less than five years of experience investing in the securities and obligations authorized in subdivisions (a) to (q), inclusive.
(3) The adviser has assets under management in excess of five hundred million dollars ($500,000,000).
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8 9.0 UNAUTHORIZED INVESTMENTS:
State and Federal laws notwithstanding, any investment not specifically described herein including, but not limited to, reverse repurchase agreements, derivatives, options, futures, zero coupon bonds, inverse floaters, range notes, first mortgages or trust deeds, collateralized mortgage obligations, (CMO’s), limited partnerships, real estate investments, trusts (REIT’s), open-end mutual funds with a weighted average maturity greater than 180 days, unregulated and/or uninsured investment pools, common stock, preferred stock, commodities, precious metals, securities with high price volatility, limited marketability (less than three active bidders), securities that may default on interest payments and any other speculative investment deemed inappropriate under the prudent investor standard are strictly prohibited.
In addition, any new investment or renewal and/or addition to existing investments in firms that are predominantly in the business of exploration, production, drilling and/or refining of coal, petroleum, oil, and/or natural gas are prohibited.
10.0 REVIEW OF INVESTMENT PORTFOLIO
The securities held by the City of Lynwood must be in compliance with Section 8.0 Authorized and Suitable Investments at the time of purchase. The Quarterly Investment report will identify any securities that do not comply. The Treasurer shall report any instances of noncompliance identified through the review of the portfolio to the City Council.
11.0 COLLATERAL REQUIREMENTS:
Collateral for Certificates of Deposit (CD) and Negotiated Certificates of Deposit (NCD) must comply with Government Code, Chapter 4, Bank Deposit law Section 16500 et seq. and the Savings and Loan and Credit Union Deposit Law Government Code Section 16600 et seq.
In order to reduce market risk and provide a level of security for all funds, the market value of securities that underlay Certificates of Deposit shall be valued at 110% of the market value of principal and accrued interest. Repurchase Agreements shall be valued at 102% of the market value of principal and accrued interest.
In conformity with the provisions of the Federal Bankruptcy Code that provide for the liquidation of securities held as collateral, the only securities acceptable as collateral are certificates of deposit, commercial paper, eligible bankers acceptances, and medium term notes or securities that are the direct obligation of, or are fully guaranteed as to principal and interest by the United States or any City of the United States.
An independent third party with whom the City has a current custodial agreement will always hold collateral.
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9 The right of collateral substitution is granted with prior approval of the City Treasurer.
12.0 SAFEKEEPING AND CUSTODY
All securities owned by the City shall be held in safekeeping by the City’s custodial bank or by a third-party bank trust department, acting as agent for the City under the terms of a custody agreement or master repurchase agreement. All security transactions, including collateral for repurchase agreements, entered into by the City shall be conducted on a Delivery-Versus-Payment (DVP) basis through the City’s safekeeping agent. Securities held in custody for the City shall be independently audited on an annual basis to verify investment holdings.
13.0 DIVERSIFICATION:
The Treasurer shall maintain a diversified portfolio to minimize the risk of loss resulting from over concentration of assets in a specific maturity, issuer, or security type. With the exception of U.S. Treasury securities, Federal agencies, and LAIF, no more than 50% of the City’s total investment portfolio will be invested in with a single institution. Additionally, no more than 2%, calculated at the time of purchase, of the portfolio shall be invested in one name or with one credit counterparty.
14.0 MAXIMUM MATURITIES:
To the extent possible the portfolio will attempt to match its investments with anticipated cash flow requirements. Matching maturities with cash flow dates will reduce the need to sell securities prior to maturity, thus reducing a potential realized loss. The portfolio will not directly invest in securities maturing more than five (5) years from the date of purchase pursuant to Government Code Section 53601. (Excluding LAIF). The weighted average maturity of the portfolio shall not exceed 3 years.
Reserve funds may be invested in securities exceeding one year if the maturity of such investments is made to coincide as nearly as practicable with the expected use of the funds. No portion of the portfolio may exceed five years.
15.0 INTERNAL CONTROL:
The Treasurer is responsible for establishing and maintaining an internal control structure designed to ensure that the City’s assets are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that those objectives are met. The concept of reasonable assurance recognizes that the cost of a control should not exceed the benefits to be derived and that the valuation of costs and benefits requires estimates and judgments by management. Internal control procedures shall address:
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10 Separation of duties
Control of collusion
Custodial safekeeping
Avoidance of physical delivery of securities
Written confirmation of transfers for investments and wire transfers Written procedures for placing investment transactions Delegation of authority to investment officials
16.0 PERFORMANCE STANDARDS:
The investment portfolio shall be designed with the objective of obtaining a market rate of return throughout budgetary and economic cycles, commensurate with investment risk constraints and cash flow needs:
a. Investment Strategy: The portfolio’s basic investment strategy is to buy and hold investments until maturity. However, the Treasurer may sell a security due to adverse changes in credit risk or, due to unexpected cash flow needs, or to improve the quality, yield, or target duration of the portfolio.
b. Market Yield (Benchmark): The City portfolio is managed with the objective of obtaining a market rate of return, commensurate with identified risk constraints and cash flow characteristics. The appropriate benchmarks will be periodically reviewed by the City Treasurer.
17.0 REPORTING:
In compliance with Government code Section 53607 and 53646, the Treasurer shall provide the City Council quarterly investment reports, which provide a clear picture of the status of the current investment portfolio.
The Quarterly Investment Report will include the following information: portfolio statistics, portfolio performance, compliance reporting requirements, and investment trading:
Portfolio Statistics
Classification of the investment, the percentage of the total portfolio which each type of investment represents, issuer, CUSIP, purchase date, rating of security, date of maturity, par and dollar amount invested on all securities and investments.
Current market value and the source of the market value. Weighted average maturity of the investment portfolio. Maturity aging by type of investment.
Unrealized gain or loss resulting from appreciation or depreciation in the market value of securities.
Compliance Reporting Requirements
Cash management projection: Statement denoting the ability of the City to meet its expected obligations over the next six months. 376
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11 Statement of compliance with the Policy: Reasons for and number of violations or exceptions to the investment policy during the quarter being reported on, as well as prior violations or exceptions which have not yet been corrected.
Investment Trading Activity
All investment transactions occurring during the quarter whether or not the transaction has been fully settled.
A description of any security purchased during the quarter with a maturity exceeding five years.
A description of any security downgraded below the minimum acceptable ratings level (below prime for short term ratings, or below investment grade for long term ratings).
18.0 INVESTMENT POLICY ADOPTION:
The Treasurer shall annually render to the City Council a Statement of Investment policy as required in Section 53646(a) of the Government Code. The City’s investment policy shall be adopted by resolution of the City Council and shall be reviewed annually; any modification made thereto must be approved by the legislative body.
19.0 GLOSSARY
Definitions of investment-related terms are listed on Exhibit A. 377
Revised January 16, 2024
EXHIBIT A
GLOSSARY
ACCRETION: Adjustment of the difference between the price of a bond bought at an original discount and the par value of the bond.
AGENCIES: Federal agency securities and/or Government-sponsored enterprises (GSEs), also known as U.S. Government instrumentalities. Securities issued by Government National Mortgage Association (GNMA) are considered true agency securities, backed by the full faith and credit of the U.S. Government. GSEs are financial intermediaries established by the federal government to fund loans to certain groups of borrowers, for example homeowners, farmers and students and are privately owned corporations with a public purpose. The most common GSEs are Federal Farm Credit System Banks, Federal Home Loan Banks, Federal Home Loan Mortgage Association, and Federal National Mortgage Association.
AMORTIZATION: Accounting procedure that gradually reduces the cost value of a limited life or intangible asset through periodic charges to income. For fixed assets, the term used is “depreciation”. It is common practice to amortize any premium over par value paid in the purchase of preferred stock or bond investments.
APPRECIATION: Increase in the value of an asset such as a stock bond, commodity or real estate.
ASKED PRICE: The price a broker/dealer offers to sell securities.
ASSET BACKED: A type of security that is secured by receivables, such as credit card and auto loans. These securities typically pay principal and interest monthly.
BANKERS' ACCEPTANCE (BA): A draft or bill or exchange accepted by a bank or trust company. The accepting institution guarantees payment of the bill, as well as the issuer.
This money market instrument is used to finance international trade.
BASIS POINT: One-hundredth of one percent (i.e., 0.01%).
BENCHMARK: A comparative base for measuring the performance or risk tolerance of the investment portfolio. A benchmark should represent a close correlation to the level of risk and the average duration of the portfolio’s investment.
BID PRICE: The price a broker/dealer offers to purchase securities.
BOND: A financial obligation for which the issuers promises to pay the bondholder a specified stream of future cash flows, including periodic interest payments and a principal repayment.
BOOK RATE OF RETURN: A measure of a portfolio’s performance over time. It is the internal rate of return which equates the beginning value of the portfolio with the ending value, and includes interest earnings and realized gains and losses on the portfolio. 378
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13 BOOK VALUE: The value at which a debt security is shown on the holder’s balance sheet. Book value is acquisition cost less amortization of premium or accretion of discount.
BROKER: A broker acts as an intermediary between a buyer and seller for a commission and does not trade for his/her own risk and account or inventory.
CALLABLE SECURITIES: A security that can be redeemed by the issuer before the scheduled maturity date.
CASH FLOW: An analysis of all changes that affect the cash account during a specified period.
CERTIFICATE OF DEPOSIT (CD): A time deposit with a specific maturity evidenced by a certificate. Large-denomination CD's are typically negotiable.
COLLATERAL: Securities, evidence of deposit or other property which a borrower pledges to secure repayment of a loan. Also refers to securities pledged by a bank to secure deposits of public monies.
COLLATERALIZED MORTGAGE OBLIGATION (CMO) : A type of mortgage-backed security that creates separate pools of pass-through rates for different classes of bondholders with varying maturities, called tranches. The repayments from the pool of pass-through securities are used to retire the bonds in the order specified by the bonds' prospectus.
COMMERCIAL PAPER: Short-term, unsecured, negotiable promissory notes of corporations.
COMMERCIAL RECEIVABLES: Business debt owed to a creditor which may be used as collateral for asset backed securities. These receivables include equipment leases, building leases, and other business loans.
COMPREHENSIVE ANNUAL FINANCIAL REPORT (CAFR): The official annual financial report for the City. It includes combined statements and basic financial statements for each individual fund and account group prepared in conformity with Generally Accepted Accounting Principles (GAAP).
CONDUIT FINANCING: A financing in which a governmental agency issues debt and the proceeds of the issue are loaned to a nongovernmental borrower who then applies the proceeds for a project financing or (if permitted by federal tax laws for a qualified 501(c)(3) bond) for working capital purposes.
CONSUMER RECEIVABLES: Consumer debt owed to a creditor which may be used as collateral for asset backed securities. These receivables include credit card, auto, and home equity loans.
CORPORATE NOTE: Debt instrument issued by a private corporation.
COUPON: The annual rate at which a bond pays interest. 379
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14 CREDIT ANALYSIS: An analysis of the economic and financial conditions to determine creditworthiness or the ability to meet debt obligations.
CREDIT RATINGS: A grade given to a debt instrument that indicates its credit quality.
Private independent rating services such as Standard & Poor's, Moody's and Fitch provide these evaluations of the issuer's financial strength, or its ability to pay principal and interest in a timely fashion. High graded credit ratings are as follows:
Moody's Standard & Poor’s Fitch
Long
Term
Short
Term
Long
Term
Short
Term
Long
Term
Short
Term
Aaa
P1
AAA
A1+
AAA
A1+
Aa1 AA+ AA+
Aa2 AA AA
Aa3 AA- AA-
A1 A+ A1 A+
A2 A A
A3 P2 A- A2 A- A2Baa1 BBB+ BBB+
CREDIT RISK: The risk that an obligation will not be paid and a loss will result due to a failure of the issuer of a security.
CUSIP: Stands for Committee on Uniform Securities Identification Procedures. A CUSIP number identifies most securities, including: stocks of all registered U.S. and Canadian companies, and U.S. government and municipal bonds. The CUSIP system—owned by the American Bankers Association and operated by Standard & Poor’s—facilitates the clearing and settlement process of securities. The number consists of nine characters (including letters and numbers) that uniquely identify a company or issuer and the type of security.
CURRENT YIELD: The annual interest on an investment divided by the current market value. Since the calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.
CUSTODIAN: A bank or other financial institution that keeps custody of stock certificates and other assets.
DEALER: A dealer, as opposed to a broker, acts as a principal in all transactions, buying and selling for his/her own risk and account or inventory.
DEBENTURES: A bond secured only by the general credit of the issuers.
DEFEASED BOND ISSUES: Issues that have sufficient money to retire outstanding debt when due, so that the agency is released from the contracts and covenants in the bond documents.
DELIVERY VERSUS PAYMENT (DVP): Delivery of securities with a simultaneous exchange of money for the securities.
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15 DERIVATIVE: A financial instrument that is based on, or derived from, some underlying asset, reference date, or index.
DIRECT ISSUER: Issuer markets its own paper directly to the investor without use of an intermediary.
DISCOUNT: The difference between the cost of a security and its value at maturity when quoted at lower than face value.
DIVERSIFICATION: Dividing investment funds among a variety of securities offering independent returns and risk profiles.
DURATION: A measure of the timing of the cash flows, such as the interest payments and the principal repayment, to be received from a given fixed-income security. This calculation is based on three variables: term to maturity, coupon rate, and yield to maturity. Duration measures the price sensitivity of a bond to changes in interest rates.
EARNED INCOME YIELD THIS PERIOD (annualized): The Total net Earnings this period divided by Average Daily Portfolio Balance and the number of days in the period, multiplied by 365 (or 360 depending on the profile setting), and then multiplied by 100.
FACE VALUE: The principal amount owed on a debt instrument. It is the amount on which interest is computed and represents the amount that the issuer promises to pay at maturity.
FAIR VALUE: The amount at which a security could be exchanged between willing parties, other than in a forced or liquidation sale. If a market price is available, the fair value is equal to the market value.
FANNIE MAE: Trade name for the Federal National Mortgage Association (FNMA), a U.S. Government sponsored enterprise.
FEDERAL DEPOSIT INSURANCE CORPORATION (FDIC): A federal agency that provides insurance on bank deposits, guaranteeing deposits to a set limit per account, currently $100,000.
FEDERAL FARM CREDIT BANK (FFCB): Government-sponsored enterprise that consolidates the financing activities of the Federal Land Banks, the Federal Intermediate Credit Banks and the Banks for Cooperatives. Its securities do not carry direct U.S. government guarantees.
FEDERAL FUNDS RATE: The rate of interest at which Federal funds are traded. This rate is considered to be the most sensitive indicator of the direction of interest rates, as it is currently pegged by the Federal Reserve through open-market operations.
FEDERAL GOVERNMENT AGENCY SECURITIES : Federal Agency or United States government-sponsored enterprise obligations, participations, or other instruments, including those issued by or fully guaranteed as to principal and interest by federal agencies or United States government-sponsored enterprises. 381
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16 FEDERAL HOME LOAN BANKS (FHLB): Government sponsored enterprise (currently made up of 12 regional banks) that regulates and lends funds and provides correspondent banking services to member commercial banks, thrift institutions, credit unions and insurance companies. Although the banks operate under federal charter with government supervision, the securities are not guaranteed by the U. S. Government.
FEDERAL HOME LOAN MORTGAGE CORPORATION (FHLMC): Government sponsored enterprise that helps maintain the availability of mortgage credit for residential housing. FHLMC finances these operations by marketing guaranteed mortgage certificates and mortgage participation certificates. Its discount notes and bonds do not carry direct U.S. government guarantees.
FEDERAL NATIONAL MORTGAGE ASSOCIATION (FNMA): Government sponsored enterprise that is the largest single provider of residential mortgage funds in the United States. FNMA is a private stockholder-owned corporation. The corporation's purchases include a variety of adjustable mortgages and second loans, in addition to fixed-rate mortgages. FNMA's securities are also highly liquid and are widely accepted. FNMA securities do not carry direct U.S. Government guarantees.
FEDERAL OPEN MARKET COMMITTEE (FOMC): A committee of the Federal Reserve Board, which establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.
FEDERAL RESERVE SYSTEM: The central bank of the U.S. which consists of a seven- member Board of Governors, 12 regional banks and about 5,700 commercial banks that are members.
FED WIRE: A wire transmission service established by the Federal Reserve Bank to facilitate the transfer of funds through debits and credits of funds between participants within the Fed system.
FREDDIE MAC: Trade name for the Federal Home Loan Mortgage Corporation (FHLMC), a U.S. government sponsored enterprise.
FITCH INDIVIUAL BANK RATINGS: Individual Ratings are assigned to banks that are legal entities. These ratings, which are internationally comparable, attempt to assess how a bank would be viewed if it were entirely independent and could not rely on external support. These ratings are designed to assess a bank's exposure to, appetite for, and management of risk, and thus represent the agency's view on the likelihood that it would run into significant financial difficulties such that it would require support. The ratings are as follows:
A. A very strong bank - Characteristics may include outstanding profitability and balance sheet integrity, franchise, management, operating environment or prospects.
B. A strong bank - There are no major concerns regarding the bank.
Characteristics may include strong profitability and balance sheet integrity, franchise, management, operating environment or prospects. 382
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17 C. An adequate bank, which, however, possesses one or more troublesome aspects. There may be some concerns regarding its profitability and balance sheet integrity, franchise, management, operating environment or prospects .
D. A bank that has weaknesses of internal and/or external origin. There are concerns regarding its profitability and balance sheet integrity, franchise, management, operating environment or prospects. Banks in emerging markets are necessarily faced with a greater number of potential deficiencies of external origin.
E. A bank with very serious problems, which either requires or is likely to require external support.
F. A bank that has either defaulted or, in Fitch Ratings' opinion, would have defaulted if it had not received external support. Examples of such support include state or local government support, (deposit) insurance funds, acquisition by some other corporate entity or an injection of new funds from its shareholders or equivalent.
Note: Gradations may be used among the ratings A to E: i.e. A/B, B/C, C/D, and D/E. No gradations apply to the F rating.
GINNIE MAE: Trade name for the Government National Mortgage Association (GNMA), a direct obligation bearing the full faith and credit of the U.S. Government.
GOVERNMENT ACCOUNTING STANDARDS BOARD (GASB): A standard-setting body, associated with the Financial Accounting Foundation, which prescribes standard accounting practices for governmental units.
GUARANTEED INVESTMENT CONTRACTS (GICS): An agreement acknowledging receipt of funds, for deposit, specifying terms for withdrawal, and guaranteeing a rate of interest to be paid.
INACTIVE DEPOSITS: Funds not immediately needed for disbursement.
INTEREST RATE: The annual yield earned on an investment, expressed as a percentage.
INTEREST RATE RISK: The risk of gain or loss in market values of securities due to changes in interest-rate levels. For example, rising interest rates will cause the market value of portfolio securities to decline.
INVESTMENT AGREEMENTS: A contract providing for the lending of issuer funds to a financial institution which agrees to repay the funds with interest under predetermined specifications.
INVESTMENT GRADE (LONG TERM RATINGS): The minimum, high quality ratings for long term debt such as corporate notes. Investment Grade ratings are as follows: A3 (Moody’s), A- (S&P), and A- (Fitch).
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18 INVESTMENT PORTFOLIO: A collection of securities held by a bank, individual, institution or government agency for investment purposes.
LIQUIDITY: A liquid asset is one that can be converted easily and rapidly into cash with minimum risk of principal.
LOCAL AGENCY INVESTMENT FUND (LAIF): An investment pool sponsored by the State of California and administered/managed by the State Treasurer. Local government units, with consent of the governing body of that agency, may voluntarily deposit surplus funds for the purpose of investment. Interest earned is distributed by the State Controller to the participating governmental agencies on a quarterly basis.
LOCAL AGENCY INVESTMENT POOL: A pooled investment vehicle sponsored by a local agency or a group of local agencies for use by other local agencies.
MARK TO MARKET: Current value of securities at today's market price.
MARKET RISK: The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates. Systematic risk of a security that is common to all securities of the same general class (stocks, bonds, notes, money market instruments) and cannot be eliminated by diversification (which may be used to eliminate non- systematic risk).
MARKET VALUE: The price at which a security is currently being sold in the market.
See FAIR VALUE.
MASTER REPURCHASE AGREEMENT: A written contract covering all future transactions between the parties to repurchase agreements and reverse repurchase agreements that establish each party's rights in the transactions. A master agreement will often specify, among other things, the right of the buyer-lender to liquidate the underlying securities in the event of default by the seller-borrower.
MATURITY: The date that the principal or stated value of a debt instrument becomes due and payable.
MEDIUM-TERM NOTES (MTNs): Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts either on a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.
MODIFIED DURATION: The percent change in price for a 100-basis point change in yields. This is a measure of a portfolio’s or security’s exposure to market risk.
MONEY MARKET: The market in which short term debt instruments (Treasury Bills, Discount Notes, Commercial Paper, Banker’s Acceptances and Negotiable Certificates of Deposit) are issued and traded.
MORTGAGED BACKED SECURITIES: A type of security that is secured by a mortgage or collection of mortgages. These securities typically pay principal and interest monthly. 384
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19 MUNICIPAL BONDS: Debt obligations issued by states and local governments and their agencies, including cities, counties, government retirement plans, school districts, state universities, sewer districts, municipally owned utilities and authorities running bridges, airports and other transportation facilities.
MUTUAL FUND: An entity that pools money and can invest in a variety of securities which are specifically defined in the fund’s prospectus.
NEGOTIABLE CERTIFICATE OF DEPOSIT: A large denomination certificate of deposit which can be sold in the open market prior to maturity.
NET PORTFOLIO YIELD: Calculation in which the 365-day basis equals the annualized percentage of the sum of all Net Earnings during the period divided by the sum of all Average Daily Portfolio Balances.
NEW ISSUE: Term used when a security is originally “brought” to market.
NOTE: A written promise to pay a specified amount to a certain entity on demand or on a specified date.
OPEN MARKET OPERATIONS: Purchases and sales of government and certain other securities in the open market by the New York Federal Reserve Bank as directed by the FOMC in order to influence the volume of money and credit in the economy. Purchases inject reserves into the bank system and stimulate growth of money and credit: Sales have the opposite effect. Open market operations are the Federal Reserve's most important and most flexible monetary policy tool.
PAR VALUE: The amount of principal which must be paid at maturity. Also referred to as the face amount of a bond. See FACE VALUE.
PORTFOLIO: The collection of securities held by an individual or institution.
PREMIUM: The difference between the par value of a bond and the cost of the bond, when the cost is above par.
PRIMARY DEALER: A group of government securities dealers who submit daily reports of market activity and positions and monthly financial statements to the Federal Reserve Bank of New York and are subject to its informal oversight. These dealers are authorized to buy and sell government securities in direct dealing with the Federal Reserve Bank of New York in its execution of market operations to carry out U.S. monetary policy. Such dealers must be qualified in terms of reputation, capacity, and adequacy of staff and facilities.
PRIME (SHORT TERM RATING): High quality ratings for short term debt such as commercial paper. Prime ratings are as follows: P1 (Moody’s), A1 (S&P), and F1 (Fitch).
PRINCIPAL: The face value or par value of a debt instrument, or the amount of capital invested in a given security.
PROSPECTUS: A legal document that must be provided to any prospective purchaser of a new securities offering registered with the Securities and Exchange Commission that typically includes information on the issuer, the issuer’s business, the proposed use of 385
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20 proceeds, the experience of the issuer’s management, and certain certified financial statements (also known as an “official statement”).
PRUDENT INVESTOR STANDARD: A standard of conduct for fiduciaries. Investments shall be made with judgment and care--under circumstances then prevailing, which persons of prudence, discretion and intelligence exercise in the management of their own affairs, not for speculation, but for investment, considering the probable safety of their capital as well as the probable income to be derived.
PUBLIC DEPOSITS: A bank that is qualified under California law to accept a deposit of public funds.
PURCHASE DATE: The date in which a security is purchased for settlement on that or a later date. Also known as the “trade date”.
RATE OF RETURN: 1) The yield, which can be attained on a security, based on its purchase price or its current market price. 2) Income earned on an investment, expressed as a percentage of the cost of the investment.
REALIZED GAIN (OR LOSS): Gain or loss resulting from the sale or disposal of a security.
REGIONAL DEALER: A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.
REPURCHASE AGREEMENT (RP or REPO): A transaction in which a counterparty or the holder of securities (e.g. investment dealer) sells these securities to an investor (e.g. the City) with a simultaneous agreement to repurchase them at a fixed date. The security "buyer" (e.g. the City) in effect lends the "seller" money for the period of the agreement, and the terms of the agreement are structured to compensate the “buyer” for this. Dealers use RP extensively to finance their positions. Exception: When the Fed is said to be doing RP, it is lending money, which is, increasing bank reserves.
REVERSE REPURCHASE AGREEMENT (REVERSE REPO): The opposite of a repurchase agreement. A reverse repo is a transaction in which the City sells securities to a counterparty (e.g. investment dealer) and agrees to repurchase the securities from the counterparty at a fixed date. The counterparty in effect lends the seller (e.g. the City) money for the period of the agreement with terms of the agreement structured to compensate the buyer.
RISK: Degree of uncertainty of return on an asset.
SAFEKEEPING: A service which banks offer to clients for a fee, where physical securities are held in the bank’s vault for protection and book-entry securities are on record with the Federal Reserve Bank or Depository Trust Company in the bank’s name for the benefit of the client. As agent for the client, the safekeeping bank settles securities transactions, collects coupon payments, and redeems securities at maturity or on call date, if called.
SECURITIES AND EXCHANGE COMMISSION (SEC): Agency created by Congress to protect investors in securities transactions by administering securities legislation. 386
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21 SEC RULE 15C3-1: See UNIFORM NET CAPITAL RULE.
SECONDARY MARKET: A market for the repurchase and resale of outstanding issues following the initial distribution.
SECURITIES: Investment instruments such as notes, bonds, stocks, money market instruments and other instruments of indebtedness or equity.
SETTLEMENT DATE: The date on which a trade is cleared by delivery of securities against funds.
SPREAD: The difference between two figures or percentages. It may be the difference between the bid (price at which a prospective buyer offers to pay) and asked (price at which an owner offers to sell) prices of a quote, or between the amount paid when bought and the amount received when sold.
STRUCTURED NOTE: A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities or indices. Examples include “inverse floating rate” notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising and “dual index floaters”, which pay interest based on the relationship between two other interest rates, for example, the yield on the ten-year Treasury note minus the Libor rate. Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.
STUDENT LOAN MARKET ASSOCIATION (SLMA): Government-sponsored enterprise that purchases student loans from originating financial institutions and provides financing to state student loan agencies. It provides a national secondary market for federally- sponsored student loans and credit to participants in the post-secondary education lending sector.
SUBORDINATED DEBT: Debt over which senior debt has priority. In the event of a bankruptcy, subordinated debt holders receive payment only after senior debt holders are paid in full.
TIME DEPOSIT: A deposit with a California bank or savings and loan association for a specific amount and with a specific maturity date and interest rate. Deposits of up to $100,000 are insured by FDIC. Deposits over $100,000 are collateralized above the insurance with either government securities (at 110% of par value), first trust deeds (at 150% of par value), or letters of credit (at 105% of par value).
TOTAL RATE OF RETURN: A measure of a portfolio’s performance over time. It is the internal rate of return which equates the beginning value of the portfolio with the ending value, and includes interest earnings and realized and unrealized gains and losses on the portfolio. For bonds held to maturity, total return is the yield to maturity.
TRUSTEE OR TRUST COMPANY OR TRUST DEPARTMENT OF A BANK: A financial institution with trust powers which acts in a fiduciary capacity for the benefit of the bondholders in enforcing the terms of the bond contract. 387
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22 UNDERWRITER: A dealer which purchases a new issue of municipal securities for resale.
UNIFORM NET CAPITAL RULE: Securities and Exchange Commission requirement that member firms as well as nonmember broker/dealers in securities maintain a maximum ratio of indebtedness to liquid capital of 15 to 1; also called net capital rule and net capital ratio. Indebtedness covers all money owed to a firm, including margin loans and commitments to purchase securities, one reason new public issues are spread among members of underwriting syndicates. Liquid capital includes cash and assets easily converted into cash.
U.S. GOVERNMENT AGENCY SECURITIES: Securities issued by U.S. government agencies, most of which are secured only by the credit worthiness of the particular agency.
See AGENCIES.
U.S. TREASURY OBLIGATIONS: Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are the benchmark for interest rates on all other securities in the U.S. The Treasury issues both discounted securities and fixed coupon notes and bonds. The income from Treasury securities is exempt from state and local, but not federal, taxes.
TREASURY BILLS: Securities issued at a discount with initial maturities of one year or less. The Treasury currently issues three-month and six-month Treasury bills at regular weekly auctions. It also issues very short-term “cash management” bills as needed to smooth out cash flows.
TREASURY NOTES: Intermediate-term coupon-bearing securities with initial maturities of one year to ten years.
TREASURY BOND: Long-term coupon-bearing securities with initial maturities of ten years or longer.
UNREALIZED GAIN (OR LOSS): Gain or loss that has not become actual. It becomes a realized gain (or loss) when the security in which there is a gain or loss is actually sold.
See REALIZED GAIN (OR LOSS).
VOLATILITY: Characteristic of a security, commodity or market to rise or fall sharply in price within a short-term period.
WEIGHTED AVERAGE MATURITY: The average maturity of all the securities that comprise a portfolio that is typically expressed in days or years.
WEIGHTED AVERAGE YIELD AT THE END OF PERIOD: The summation of each investment’s period-end scheduled book value multiplied by its ending sub-period yield and divided by the total scheduled book value. Investments maturing on or before the end date of the report period will not affect the weighted average yield.
WHEN ISSUED (WI): Short form of “when, as, and if issued.” WI refers to a transaction made conditionally because a security, although authorized, has not yet been issued with the exception of new Treasury, Agency, and Corporate issuances to settle within 21 days. 388
INVESTMENT POLICY
23 YIELD: The annual rate of return on an investment expressed as a percentage of the investment. See CURRENT YIELD; YIELD TO MATURITY.
YIELD CURVE: Graph showing the relationship at a given point in time between yields and maturity for bonds that are identical in every way except maturity.
YIELD TO MATURITY: Concept used to determine the rate of return if an investment is held to maturity. It takes into account purchase price, redemption value, time to maturity, coupon yield, and the time between interest payments. It is the rate of income return on an investment, minus any premium or plus any discount, with the adjustment spread over the period from the date of purchase to the date of maturity of the bond, expressed as a percentage.
389
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, APPROVING THE CITY’S ANNUAL STATEMENT OF INVESTMENT POLICY
WHEREAS, the City of Lynwood is required to have a Statement of Investment Policy that regulates the investment of public funds.
WHEREAS, pursuant to Government Code 53646(a), the City Treasurer may submit the Statement of Investment Policy to the City Council for its consideration at a public meeting.
WHEREAS, Section 53646 of the Government Code allows local agencies to annually approve the Statement of Investment Policy which has been prepared by the Treasurer its designated officer of such local agency; and
WHEREAS, the Policy was prepared with guidelines for a prudent investment policy.
WHEREAS, the Policy was amended to include Joint Powers Authority (JPA).
WHEREAS, the Policy was amended to include recommended changes from the Finance AD Hoc Committee.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as substantive part of this resolution.
Section 2. The City Council of the City of Lynwood adopts the Resolution approving the City’s Annual Statement of Investment Policy.
Section 3. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.
Section 4. This Resolution shall take effect immediately upon its adoption.
Section 5. The City Clerk shall certify as to the adoption of this Resolution and hereafter the same shall be in full force and effect.
390
PASSED, APPROVED and ADOPTED this ____ day of May 2025
________________________________
Rita Soto, Mayor
ATTEST: APPROVED AS TO CONTENT:
_____________________________ __________________________ Maria Quinonez, City Clerk Julian Lee, City Manager
APPROVED AS TO FORM:
______________________________
Noel Tapia, City Attorney
391
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, APPROVING THE CITY’S ANNUAL STATEMENT OF INVESTMENT POLICY
WHEREAS, the City of Lynwood is required to have a Statement of Investment Policy that regulates the investment of public funds.
WHEREAS, pursuant to Government Code 53646(a), the City Treasurer may submit the Statement of Investment Policy to the City Council for its consideration at a public meeting.
WHEREAS, Section 53646 of the Government Code allows local agencies to annually approve the Statement of Investment Policy which has been prepared by the Treasurer its designated officer of such local agency; and
WHEREAS, the Policy was prepared with guidelines for a prudent investment policy.
WHEREAS, the Policy was amended to include Joint Powers Authority (JPA).
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct and incorporates them herein as findings and as substantive part of this resolution.
Section 2. The City Council of the City of Lynwood adopts the Resolution approving the City’s Annual Statement of Investment Policy.
Section 3. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.
Section 4. This Resolution shall take effect immediately upon its adoption.
Section 5. The City Clerk shall certify as to the adoption of this Resolution and hereafter the same shall be in full force and effect.
PASSED, APPROVED and ADOPTED this ____ day of May 2025
392
________________________________
Rita Soto, Mayor
ATTEST: APPROVED AS TO CONTENT:
_____________________________ __________________________ Maria Quinonez, City Clerk Julian Lee, City Manager
APPROVED AS TO FORM:
______________________________
Noel Tapia, City Attorney
393
AGENDA STAFF REPORT
DATE:
May
6, 2025
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Julian Lee, Interim City Manager
PREPARED BY:
Liliana Delgadillo, City Treasurer
Sheila Harding, Deputy City Treasurer
SUBJECT:
EARMARK OIL & GAS INVESTMENT INCOME FOR EV STATIONS
Agenda Item # 9.2.
Recommendation:
Staff recommends that the City Council adopt the attached resolution entitled: ” A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, APPROVING TO
EARMARK OIL AND GAS INVESTMENT INCOME FOR ELECTRONIC VEHICLE STATIONS."
Background:
Based on communication between the City Council and staff, and as part of the City’s effort to “Go Green”, it was recommended by Council Member Luis Cuellar to earmark the income earned from Oil and Gas investments to EV stations.
Discussion and Analysis:
Some state and local governments are implementing strict Environmental, Social and Governance (ESG) standards, while others entities have banned ESG measures altogether.
The City Treasurer recognizes
the material risk that climate change poses to all of us but
believes it is a risk that we must address through investment practices such as advocacy and engagement. Therefore, rather than adding language to the portfolio that would restrict or ban carbon-intensive businesses altogether, the City Treasurer recommends Council to direct staff to earmark the interest earned from fossil fuel and create dedicated funds to receive and City Council City Council Regular Meeting 394
manage revenue from fossil fuel taxes or levies. This will ensure the funds are directed towards specifics provisions and allocate funds for designated projects that is geared towards low carbon alternatives or climate related infrastructures. It is also recommended that Council do not add additional restriction to the Investment Policy that could impact financial performance.
Prior to March 19, 2025, the City’s only fossil industry investment was Exxon Mobil with a $250,000 par value or about 0.4% of investment portfolio. Exxon Mobil corporate bonds, matured on March 19, 2025. If the City had sold the bond before maturity, the City would have recognized a $30K + loss. The recommendation from Meeder was to either wait until the bond could be sold at a gain or wait to maturity. We held the security until maturity and the City has not reinvested into the fossil industry since and currently holds no “Oil and Gas” investments. As of March 31, 2025, total year-to-date net investment income from Exxon Mobil was $3,740.00.
Senate Bill 252 (the fossil fuel divestment bill) passed in the Senate Judiciary Committee on April 19, 2023. but was amended to push back the divestment date to 2031. The Bill requires institutions, often including pension funds or university to sell off their investments to fossil fuel companies such as those producing coal, oil and gas.
When considering direct financial impacts and avoided emissions, divestment’s effectiveness has been less clear. Since the Paris Climate Agreement, global banks have provided over $3 trillion in fossil fuel funding.
Donald Trump signed an order to withdraw the US from the Paris Climate Agreement, an international climate change treaty in which nearly 200 countries agree to work together to limit global warning.
In a CalPERS meeting, they voted to oppose Senate Bill 252. The California Constitution requires CalPERS to put its members’ retirement benefits before all other obligations and to manage the pension fund with this responsibility first and foremost.
Reports reveal Banks
funneled 2.7 Trillion into fossil fuel since the Paris Climate Agreement. revealing that 35 global banks have not only been sustaining but expanding the fossil fuel sector with more than $2.7 trillion in the four years since the Paris Climate Agreement. The report finds that fossil fuel financing continues to be dominated by the big U.S. banks: JPMorgan Chase, Wells Fargo, Citi, and Bank of America. Together, these four banks account for a staggering 30% of all fossil fuel financing from the 35 major global banks since the Paris Agreement was adopted.
JPMorgan Chase, won the bid for the City’s banking services last year, are the most aggressive in leading the fossil fuel expansion. JPMorgan Chase has provided $269 billion — over a quarter of a trillion dollars — in fossil financing since the Paris Agreement. That figure City Council City Council Regular Meeting 395
20250506 CCM Earmark Oil
Gas Investment - Resolution.docx
not only places JPMorgan Chase as the #1 fossil fuel bank in the world but shows that Chase exceeds second place Wells Fargo by a 36% margin. JPMorgan Chase’s $269 billion also represents nearly 10% of the total fossil financing from all 35 banks studied in the report.
Fiscal Impact:
Revenue from Exxon Mobil in the amount of $3,740.00 will be set aside and earmarked from the General Fund for EV Station.
Coordinated With:
City Manager's Office
City Treasurer's Office
Department of Finance and Administration
ATTACHMENTS:
Description
City Council City Council Regular Meeting 396
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD, APPROVING
TO EARMARK OIL AND GAS INVESTMENT INCOME FOR ELECTRONIC VEHICLE
STATIONS
WHEREAS, the City of Lynwood recognizes the material risk that climate change poses; and
WHEREAS, it is the belief of the City that the risk must be addressed through investment practices; and
WHEREAS, earmarking revenue from environmental taxes for environmental measures will ensure that funds are used on dedicated projects geared toward low carbon alternatives or climate related infrastructure; and WHEREAS, City Council directed staff to earmark income earned from Oil and Gas Investments for electronic vehicle stations; and
WHEREAS, the City’s only fossil fuel investment is Exxon Mobil; and WHEREAS, revenue from Exxon Mobil will be set aside and earmarked from the general fund for EV stations.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER AND RESOLVE AS FOLLOWS:
Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct and incorporates said recitals fully into this resolution as substantive findings.
Section 2. That the City Council approves the earmarking of oil and gas investment income for EV stations.
Section 3. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.
Section 4. This resolution shall take effect immediately upon its adoption.
Section 5. The City Clerk shall certify as to the adoption of this Resolution and hereafter the same shall be in full force and effect.
397
PASSED, APPROVED and ADOPTED this 6th day of May 2025
________________________________
Rita Soto, Mayor
ATTEST: APPROVED AS TO CONTENT:
_____________________________ __________________________ Maria Quinonez, City Clerk Julian Lee, City Manager
398
STATE OF CALIFORNIA )
)
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the City Council of the City of Lynwood at a regular meeting held on the 6th day of May 2025, and passed by the following votes:
AYES:
NOES:
ABSTAIN:
ABSENT:
________________________
Maria Quiñónez, City Clerk
STATE OF CALIFORNIA )
)
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, and the Clerk of the City Council of said City, do hereby certify that the above foregoing is a full, true and correct copy of Resolution No. ____________ on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 6th day of May 2025. _______________________________
Maria Quiñónez, City Clerk
399
AGENDA STAFF REPORT
DATE:
May
6, 2025
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Julian Lee, Interim City Manager
PREPARED BY:
Mark Flores, Director of Recreation & Community Services Jose Trejo, Deputy Director of Recreation & Community Services SUBJECT:
APPROVAL OF HYDROSEEDING TURF PROJECT AT LYNWODO CITY
PARK SOCCER FIELDS
Agenda Item # 9.3.
Recommendation:
Staff recommends that the City Council consider and adopt the attached resolution entitled, " A
RESOLUTION
OF
THE
CITY
COUNCIL
OF
THE
CITY
OF
LYNWOOD
APPROVING A
CONTRACT WITH PROFESSIONAL TURF SPECIALTIES, INC FOR THE REHABILITATION
OF THE SOCCER FIELDS AT LYNWOOD CITY PARK AND AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT."
Background:
The soccer fields at Lynwood City Park are a highly-utilized athletic facility, serving as home to the City’s partner American Youth Soccer Organization (AYSO) program and several City- hosted and sponsored activities and special events throughout the year. The facility has recently faced maintenance challenges resulting from environmental factors, limited maintenance resources and demanding use schedules. The facility is in crucial need of turf repairs. Staff is presenting turf rehabilitation solution for City Council consideration and approval.
Discussion and Analysis:
In accordance with purchasing policies in LMC § 6-3.7, the Public Works and Recreation Departments requested quotes from multiple contractors that specialize in sports turf rehabilitation. Staff received three quotes from the following contractors:
1. North Star $350,000 (for sod installation)
2. Brightview $59,000 (not responsive)
3. Professional Turf Specialties, Inc. $89,534 (most responsive) City Council City Council Regular Meeting 400
Of these three possible providers, the quotes from North Star and Brightview did not meet the minimum requirements that staff needs to properly consider these quotes. Staff believes that the most qualified and responsive quote is from Professional Turf Specialties, Inc. for $89,534.
The quote is attached and the proposed work scope to rehabilitate the natural grass turf fields includes:
• Removal of the old existing grass/weeds
• Leveling
• Grading
• Hydroseeding
• Irrigation system improvements
Along with successful completion of previous athletic field repair projects at Lynwood City Park’s baseball fields, a reference check of the recommended firm’s past clients revealed that this contractor has the necessary experience and ability to successfully conduct the required turf repair work.
Staff is proposing to use available 2016 Measure “A” funds to fully pay for the proposed repairs of the Lynwood City Park soccer fields. If the City Council approves of this project, staff will work with the Los Angeles County Regional Park & Open Space District (RPOSD) to apply for the reimbursement of funds used for this one-time rehabilitation project. Staff has confirmed that this project is eligible under the program guidelines and that the funds are available to the City. Additionally, staff will submit for timely reimbursement of funds supporting this project. If Council approves this recommended action and the propose work is completed by end of June to early July 2025, reimbursement is expected in August 2025.
After this project is completed, staff estimates that the on-going annual turf maintenance of the three soccer fields (a total of approximately 195,000 sq. ft. of soccer fields and open space) will be in the range of $35,000 to $45,000/year for an industry standard level of turf care (irrigation system checks/repairs, quarterly aeration, top dressing, soil amenities and fertilizing) - which does not include extensive field repairs or replacement costs. These annual repairs will require “shut down” periods for the work to be completed properly and for the long-term benefit of proper field conditioning.
The AYSO season league play is schedule to start in the Fall (late September 2025). Staff wants to ensure the fields are ready for this upcoming Fall 2025 season. Additionally and beyond this year, the plan is to annually aerate, fertilize, apply weed control, over-seed and reduced usage in off-season periods in order to maintain a high-level of turf condition.
Fiscal Impact:
The one-time rehabilitation cost of the three (3) soccer fields is estimated to be $90,000.
Funds to cover the cost of this project are confirmed to be available from the City’s allocation of 2016 Measure “A” funding. Year-over-year maintenance costs to care for the soccer fields will be budgeted each year as part of the Public Works Department’s field maintenance operations considerations.
Grant fund number is: Fund 2455 Measure A- Open Space.
City Council City Council Regular Meeting 401
Exhibit A - Soccer Fields QUOTE PRO TURF.pdf
Resolution - Soccer_Fields Turf Repair.docx
Additional appropriation of expenditure for FY2024-25 is $90,000. Account is to be determined
Grant revenue account number: 2455.60.32157, and revenue estimate is $90,000 Coordinated With:
Department of Finance and Administration
Department of Public Works
ATTACHMENTS:
Description
City Council City Council Regular Meeting 402
EXHIBIT “A”
PROFESSIONAL TURF SPECIALTIES, INC
650 N. Rose Dr., # 607
Placentia, CA 92870 Bus. Office: 714 - 334-3783
LIC# C27 – 774269 EMAIL: [email protected] City of Lynwood April 10, 2025
11330 Bullis Rd.
Lynwood, CA 90262
Attn: Jose Trejo, Deputy Director <[email protected]> Diana Romero, Facility & Program Supervisor <[email protected]> PROJECT SITE: LYNWOOD CITY PARK – SOCCER FIELDS #1,2,3 11301 BULLIS RD, LYNWOOD, CA 90262
SCOPE OF WORK – FIELD #1 – APPROX. 85,000 SQ. FT.
o Field prep; Spray the field with an herbicide to kill the existing turf two weeks prior to the project start date.
o Lower all irrigation heads 12 inches.
o Grind field with an asphalt grinder, minimum of 6” depth. o Add amendments to be installed; 2 cu/yds per thousand sq. ft., lasergrade, roll and compact.
o Raise all irrigation heads to proper height of ½” above the final grade. o Hydroseed installation approx. 85,000 sq. ft. Cost: $ 42,900.00 SCOPE OF WORK – FIELD #2 – APPROX. 70,000 SQ. FT.
o Field prep; Spray the field with an herbicide to kill the existing turf two weeks prior to the project start date.
o Lower all irrigation heads 12 inches.
o Grind field with an asphalt grinder, minimum of 6” depth. o Add amendments to be installed; 2 cu/yds per thousand sq. ft., lasergrade, roll and compact.
o Raise all irrigation heads to proper height of ½” above the final grade. o Hydroseed installation approx. 70,000 sq. ft. Cost: $ 34,858.00 SCOPE OF WORK – FIELD #3 – APPROX. 40,000 SQ. FT.
o Field prep; Spray the field with an herbicide to kill the existing turf two weeks prior to the project start date.
o Lower all irrigation heads 12 inches.
o Grind field with an asphalt grinder, minimum of 6” depth. o Add amendments to be installed; 2 cu/yds per thousand sq. ft., lasergrade, roll and compact.
o Raise all irrigation heads to proper height of ½” above the final grade. o Hydroseed installation approx. 40,000 sq. ft. Cost: $ 20,776.00 Total Project Cost: $ 89,534.00
Note:
Water must be turned off two day preceding the project.
All electrical, irrigation, or subsurface hazards must be clearly marked.
If you have any questions please contact me at 714-350-9632.
Regards,
Luis A. Martinez
President/CEO
Prevailing Wage - DIR Registration # 1000003404
403
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING A
CONTRACT WITH PROFESSIONAL TURF SPECIALTIES, INC FOR THE
REHABILITATION OF THE SOCCER FIELDS LYNWOOD CITY PARK, AND
AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT
WHEREAS, the City intends to authorize the repair and improve the grass soccer fields at Lynwood City Park; and
WHEREAS, said project is funded with the Los Angeles County Regional Parks and Open Space District, Measure A funds; and
WHEREAS, the attached Exhibit A depicts the scope of work being done to the soccer fields ; and
WHEREAS, the City received quotes from multiple contractors but only one quote was received from Professional Turf Specialties, Inc., with the indicated and required type of grass application and desired tasks; and
WHEREAS, a reference check has revealed this contractor has the necessary experience for this type of project; and
WHEREAS, the City Council desires to authorize the Mayor to execute an agreement with Professional Turf Specialties, in the amount of $89,534.00, in a form approved by the City Attorney’s Office.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY RESOLVE AND DETERMINE AS FOLLOWS:
Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The City Council of the City of Lynwood authorizes the Mayor to execute an agreement with the City of Lynwood and Professional Turf Specialties, in a form approved by the City Attorney’s Office.
Section 3. The Mayor is authorized to execute this Resolution for and on behalf of the City of Lynwood.
404
Section 4. This Resolution shall go into effect immediately upon its adoption.
Section 5. The City Clerk shall certify as to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 6th day of May, 2025.
Rita Soto
Mayor
ATTEST:
Maria Quinonez
CITY CLERK
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Noel Tapia Julian Lee
City Attorney Interim City Manager
405
AGENDA STAFF REPORT
DATE:
May
6, 2025
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Julian Lee, Interim City Manager
PREPARED BY:
Mark Flores, Director of Recreation & Community Services Jose Trejo, Deputy Director of Recreation & Community Services SUBJECT:
SELECTION OF CONTRACTOR FOR SECURITY GUARD SERVICES
Agenda Item # 9.4.
Recommendation:
Staff recommends that the City Council consider the presented Staff Report and adopt the attached resolution entitled "A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
LYNWOOD AUTHORIZING THE CITY MANAGER TO NEGOTIATE TERMS AND EXECUTE
AN AGREEMENT AS APPROVED BY THE CITY ATTORNEY'S OFFICE WITH THE DESIGNATED SECURITY GUARD SERVICES PROVIDER."
Background:
At its deliberation of the selection of a security services firm conducted at the February 4, 2025 meeting, the Lynwood City Council directed staff to return with an analysis that included an expanded RFP “short-list” of security companies for consideration. Staff has now concluded its analysis of the top-ten firms and requests that the City Council review the presented information, select a security services contractor from the top-ten proposers and adopt the accompanying Resolution.
Discussion and Analysis:
At its February 4, 2025 meeting (
Attachment #3 – 2/4/25 Staff Report
), the City Council action
continued the consideration of the Security Guard Contractor Selection and requested that staff bring back the item with an expanded analysis of the top-ten ranked security companies.
The initial Staff Agenda Report considered on December 17, 2024 ( Attachment 2 – 12/17/15
Staff Report
), provided a recommendation based on findings by the Evaluation Committee from the original short-list of the top-six (6) ranked firms.
City Council City Council Regular Meeting 406
As requested by the City Council at its February 4, 2025 meeting, this Staff Report presents its analysis of the top-ten (10) highest ranked firms. These top-ten firms represent the ten highest-ranking firms from the original list of twenty-two (22) responders to the City’s RFP issued on 8/7/24. For City Council’s review and consideration, the analysis and information presented within this Staff Report and its attachments includes a detailed analysis of costs proposed by finalist firms.
The original evaluation committee (that conducted interviews of the first top-six firms) was comprised of subject-matter professionals representing the City’s various public safety agencies. Staff successfully reconvened the same panel members to interview the next four (4) of the top-rated firms (for a total of ten firms). The expanded review matched the evaluation process used with the original six (6) firms.
Here's the list of the top ten (10) firms:
Absolute International
American Global
American Guard
Citiguard
Garda World
Inter-Con Security Systems, Inc.
Quest National Security
Platinum Security
Professional Security Consultant
Southwest Patrol
The following Table #1 (
Summary of Cost Proposals
) and Attachment #4 (Table #1.B
Detail of
Proposed Service Rates
) capture (a) the proposed rates submitted by the top-ten firms and (b) the approximate annual cost to the City based on the current levels of service required:
224 hours (11,648 yearly) of regular patrol service per week 441 hours (yearly) of special event services
352 hours (holiday/overtime pay) yearly and
1,900 hours (yearly) for private party facility rentals
Table 1 – Summary of Cost Proposals
Listed in alphabetical order
City Council City Council Regular Meeting 407
Company
In Alphabetical Order
Approx. Annual
Contract Cost to City
Based on Proposed
Bill Rates
* True Cost to City
Est. Annual cost –
Pass Through
Revenues
Absolute International
$471,947
$415,042
American Global
$433,026
$377,945
American Guard
$555,992
$454,969
Citiguard
$429,776
$367,152
Garda World Security
$535,377
$465,305
Inter-Con Security
Systems, Inc.
$558,331
$456,890
Quest National
$512,542
$437,492
Platinum Security
$602,629
$507,629
Professional Security
Consultant
$686,342
$561,645
Southwest Patrol
$580,680
$504,680
* "True Cost to City” calculates the revenues from security service fees charged to private rental users (
pass-through fee).
Sites Visits and Reference Checks
Accompanied by members of the evaluation committee, staff conducted facility visits of each of the top-ten companies. The site visits served the purpose of allowing staff and the panel to verify facilities and as an opportunity to meet with the proposing management teams. All top- ten proposing firms confirmed their continued interest in the City’s RFP and were appreciative of the thorough process the City was undertaking for the selection of its next contractor.
There are no notable negative findings to report. No grades or points were assigned to this review element. The
Reference Checks and Site Visits
were part of staff’s vetting process
used to confirm information provided by each firm in their proposals.
City Council City Council Regular Meeting 408
In conclusion, staff’s analysis of written proposals, firm interviews, reference checks and site visits concludes that all ten of the finalist firms meet the baseline requirements needed to execute the City’s contract for security guard and patrol services.
Recommended Action
The City Council can choose to award the contract to any proposing firm or firms that it believes best serves the needs of the City. Following City Council’s selection and approval, staff will negotiate and draft a service contract for the delivery of security guard patrol services for the approval and signature of the City Manager.
Staff recommends that the City Council review and consider the provided Staff Report; select a services provider and, through adoption of the accompanying Resolution, authorize the City Manager to negotiate and finalize terms and execute a two-year agreement (with City options for three additional, one-year terms) with one of the ten presented security providers, in a form approved by the City Attorney’s Office. Assuming a final agreement with the selected contractor is reached and approved by June 12, 2025, the contractor is expected to begin services on July 1, 2025.
Fiscal Impact:
Staff recommends awarding the contract and coordinating its implementation in the next fiscal year (FY) 25-26. The total amount of payments to the successful contractor is estimated to range from $430,000 to $686,350 annually (depending on the selected firm). The associated costs will be incorporated into the FY 25-27 biennial budget, with any necessary adjustments being addressed during the budget development process currently in progress.
Coordinated With:
City Manager's Office
City Council City Council Regular Meeting 409
RESOLUTION Security_Service_2025 FINAL vcm.docx
ATTACHMENT 2 - ORIG AGENDA ITEM Selection of Security Firm 121724 cm.pdf ATTACHMENT 3 - AGENDA ITEM Council Direction Security Firm 020425 cm.pdf ATTACHMENT 4 - TABLE 1B Proposed Rates DETAIL FINAL 042425 ExB.pdf ATTACHMENT 5
- Original RFP for Security Services - JL 20240805 final ExE.pdf ATTACHMENT 6 - Top 10 Security Proposals
City Attorney's Office
Department of Finance and Administration
ATTACHMENTS:
Description
City Council City Council Regular Meeting 410
RESOLUTION NO.
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AUTHORIZING
THE CITY MANAGER TO NEGOTIATE TERMS AND EXECUTE AN AGREEMENT AS APPROVED BY THE CITY ATTORNEY’S OFFICE WITH THE DESIGNATED
SECURITY GUARD SERVICE PROVIDER
WHEREAS, the City of Lynwood is committed to obtaining a highly qualified professional security firm to provide security guard patrol services in its City parks and public facilities for its residents and visitors; and
WHEREAS, on August 7, 2024, the City of Lynwood issued a Request for Proposal (RFP) to solicit qualified security guard patrol firms to provide proposals for Security Guard Patrol Services for the City’s parks and public facilities; and WHEREAS, on September 25, 2024, City staff received proposals from twenty-two firms in response to the RFP; and
WHEREAS, the proposals were evaluated and interviews were conducted with the top-ranking firms by an Evaluation Committee comprised of subject matter experts representing the City’s various public safety agencies; and WHEREAS, on February 4, 2025, the City Council requested to have the top-ten highest rated security firms be reviewed and analyzed for City Council’s selection consideration; and
WHEREAS, these top-ten respondents demonstrated the ability and capacity to provide security guard patrol services for the City’s parks and public facilities as per the RFP requirements; and
WHEREAS, City management staff will review and approve the transition timeline proposed by any selected provider and ensure a smooth service transition, aiming to minimize disruption to City services; and
WHEREAS, the City Council desires to authorize the City Manager to negotiate and execute a two-year agreement with three, one-year options with one of the ten qualified security companies, in a form approved by the City Attorney’s Office.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY RESOLVE AND DETERMINE AS FOLLOWS:
411
Section 1. The City Council of the City of Lynwood hereby finds and declares that the foregoing recitals are true and correct, and incorporates them herein as findings and as a substantive part of this Resolution.
Section 2. The City Council of the City of Lynwood authorizes the City Manager to negotiate terms and execute a two-year agreement with three one-year options with one of the ten qualified security service providers, in a form approved by the City Attorney’s Office, to provide security guard services in City parks and public facilities.
Section 3. The Mayor is authorized to execute this Resolution for and on behalf of the City of Lynwood.
Section 4. This Resolution shall go into effect immediately upon its adoption.
Section 5. The City Clerk shall certify as to the adoption of this Resolution.
PASSED, APPROVED AND ADOPTED this 6th day of May, 2025.
Rita Soto
Mayor
ATTEST:
Maria Quinonez
CITY CLERK
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Noel Tapia Julian Lee
City Attorney City Manager
412
AGENDA STAFF REPORT
DATE: December 17, 2024
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Julian Lee, Interim City Manager
PREPARED BY: Mark Flores, Director of Recreation & Community Services Jose Trejo, Deputy Director of Recreation & Community Services SUBJECT: SELECTION AND APPROVAL OF SECURITY SERVICES PROVIDER
FOR THE CITY'S PARKS AND FACILITIES
Agenda Item # 9.2.
Recommendation:
Staff recommends that the City Council review the list of qualified security firms, consider the information provided within the staff report and:
1. Approve the award of a two-year contract for security services to American Guard Services, Inc. with options for three one-year terms, for an estimated annual cost of $556,000;
AND
2.Adopt the attached resolution entitled, “A RESOLUTION OF THE CITY COUNCIL OF THE
CITY OF LYNWOOD AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF LYNWOOD AND AMERICAN GUARD SERVICES , INC. TO PROVIDE SECURITY GUARD SERVICES FOR THE CITY OF LYNWOOD’S PARKS AND PUBLIC FACILITIES.”
Background:
On August 7, 2024 staff issued a Request for Proposals (RFP) to solicit qualified security firms to provide proposals for Security Guard Services for the City’s parks and public facilities. The City Council City Council Regular Meeting
1 ATTACHMENT #2 (5/6/25)413
RFP process has concluded, staff has prepared a list of ranked firms and is making a selection recommendation for City Council consideration.
Discussion and Analysis:
On August 7, 2024 the RFP was posted on the City of Lynwood’s Planet Bids vendor portal.
The RFP was advertised on August 13, 2024 in the Press Telegram and August 15, 2024 in the Lynwood Press Wave. The deadline to respond to the Security RFP was September 25, 2024.
In time for the submittal deadline, the City received twenty-three (23) proposals. One (1) of the 23 proposals was determined to be incomplete, as it did not include the required six (6) copies of the proposal and was disqualified from consideration. Attached is the list of the security firms that submitted a qualifying proposal to the City. Twenty-two (22) proposals were evaluated by city staff management. A short-list of firms was created based on the top six (6) highest scoring security firms.
The criteria used by the selection panel to evaluate the firms were developed to address the major consideration categories the City considers to be most relevant to the provision of cost- effective and high-quality security services including, but not limited to: Proposer’s operations approach; hiring and training programs; company experience; capacity and practical cost to the City.
On November 11, 2024, the interviews were held with the six (6) short-listed firms. At the conclusion of the interviews, the selection panel completed their individual scoring and discussed the advantages and disadvantages of each firm. Individual scores were tallied and averaged for a final panel score. A copy of the scoring criteria used by the selection panel and a summary of the panelist’s scores are attached. (Attachment A).
The selection panel scored each interview based on the following:
Evaluation Category
Possible Points
Structure and Operations 25 Size of Firm/Financial Capabilities 25 Experience and Technical ability 25 City Council City Council Regular Meeting 2414
Overall Responses 25
Total Possible Points:
100
The selection panel’s top three combined average scores for the interviewed firms:
1) American Guard Services 95 points average
2) Inter-Con Security Systems, Inc, 92 points average
3) Garda World Security 91 points average
The selection panel rated American Guard Services, Inc. (AGS) to be the best of the six (6) short-listed firms interviewed. Staff recommends that it be allowed to negotiate with AGS based on the results of the evaluation process and selection by the Committee panel.
Fees:
Firms were required to provide the Rate Per Hour they propose to charge the City for each hour of unarmed guard service. The following table summarizes the rates submitted by the firms and the approximate annual cost to the City based on the current levels of service required for 224 hours (11,648 yearly) of regular patrol service per week, 441 hours (yearly) of special event services, 352 hours (holiday/overtime pay) yearly and 1,900 hours (yearly) for private party facility renters:
Company
Bill Rate
Regular Patrol
11,648
Yearly/Hrs.
Bill Rate
Special Event
441
Yearly/Hrs.
Bill Rate
Holiday
352
Yearly/Hrs.
Bill Rate
Private Rentals
1,900
Yearly/Hrs.
Approximate
Annual Cost
to City
Approximate
True Cost to
City
(minus
revenue received
from fees
collected from
rental users)
American
Guard
Services
$35.44/Hrly
(unarmed)
$412,805
$53.17/Hrly
(unarmed)
$23,448
53.17/Hrly
(unarmed)
$18,716
$53.17/Hrly
(unarmed)
*$101,023
$555,992
$454,969
City Council City Council Regular Meeting 3415
Inter-Con
Security
Systems,
Inc.
$35.59/Hrly
(unarmed)
$414,552
$53.39/Hrly
(unarmed)
$23,545
$53.39/Hrly
(unarmed)
$18,793
$53.39/Hrly
(unarmed)
*$101,441
$558,331
$456,890
Garda World
Security
$36.88/Hrly
(unarmed)
$429,578
$36.88/Hrly
(unarmed)
$16,265
$55.29/Hrly
(unarmed)
$19,462
$36.88/Hrly
(unarmed)
*$70,072
$535,377
$465,305
*Revenue and expenditures for Bateman Hall, Senior Center, and other Recreation facilities as they apply to Hall renters for security services.
The proposed AGS rate of $35.44 per hour per unarmed guard service is the lowest of the top 3 ranked firms. The City budgeted $425,794 for the current FY for security guard services for its park patrol, special events and private rentals. The portion that the City spends on private facility renters is fully recovered and paid by the user of the facility. The City requires that the renters of recreation facilities pay the City for required security services. The City spent approximately $35,000 the previous FY for security service for private facility renters.
AGS contract and scope of work would remain essentially the same as the current level of service. Security services are currently contracted 365 days/year, Monday through Sunday from 6:30 a.m. to 10:30 p.m. AGS will provide 224 hours of security guard services weekly.
The estimated payment to American Guard Services, Inc. would be $555,992 for the first year of the contract.
If the City Council awards the contract to AGS as recommended, staff will negotiate a two-year agreement with an additional three, one-year options for a total possible contract term not to exceed five (5) years. Timing for final contract and start-up is anticipated as follows:
Executed agreement by January 16, 2025
Service begins under new contract February 1, 2025
The agreement with the City’s current provider, Professional Security Consultants (PSC), expires on January 31, 2025.
Staff Recommendation
City Council City Council Regular Meeting 4416
Based on a combination of the evaluation of the proposals and interviews of the top six firms, staff recommends that the Lynwood City Council approve the selection of American Guard Services as the City’s next provider of security services for protection of its parks and facilities.
Among the six top firms, AGS ranked the highest in the interview and third in the proposal evaluations. The AGS submitted a consistently strong proposal primarily because of their operational abilities; experience, training, technological capabilities and overall average ranking in the review process. However, staff believes that any of top three (3) firms are capable of successfully providing the security services as specified in the RFP and have demonstrated their competence through their proposal and interview processes.
Fiscal Impact:
The new contract would be for a two-year term, with options for three (3) one-year terms contingent upon Council approval of funding for Security Services. Based on the level of service, AGS would be paid an amount not-to-exceed $555,992 annually for its services for the first year of the agreement. The new contract commences on February 1, 2025. Under the terms of the new agreement included in the RFP, the firm would receive an annual rate increase equivalent to the increase in the Consumer Price Index, if the service contract is extended in years 3, 4, and 5.
Funds are budgeted and available in the following accounts for security services for Fiscal Year (FY) 2024/2025:
Description: Unarmed Security Guard Services (Regular Patrol, Special Events, Hall Renters
Account Number
Department
Activity
Allocation
1011.60.701.62016
Recreation
Regular Patrol
$255,470
1011.60.701.62015
Recreation
Special Events
$17,364
1011.60.740.62016
Recreation
Hall Renters
$25,040
1011.45.450.62016
Public Works
Regular Patrol
$19,680
1011.30.275.62016
Finance
Regular Patrol
$39,360
1011.25.205.62016
City Manager
Regular Patrol
$9,840
1011.65.290.62016
Technology
Regular Patrol
$9,840
1011.60.740.62016
Com. Dev
Regular Patrol
$9,840
1011.10.101.62016
City Council
Regular Patrol
$9,840
1011.35.330.62016
Human Resource
Regular Patrol
$9,840
City Council City Council Regular Meeting 5417
ATTACHMENT A Scoring Evaluation Criteria Security RFP 2024037.pdf ATTACHMENT B Evaluation Panel Scoring
Security 1024.pdf
Exhibit A Security Shortlist Firms List 2024.pdf
RESOLUTION - Security_Firm_Selection.docx
1011.15.105.62016
City Clerk
Regular Patrol
$9,840
1011.20.110.62016
City Treasurer
Regular Patrol
$9,840
Totals:
$425,794
Staff normally appropriates the estimated budget for security services through the yearly budget process. The new agreement with AGS would increase the annual cost from $425,794 to $556,000 without any change to current service levels. A budget revision is necessary to account for the increased cost for the remainder of the current FY 24-25. Staff estimates a budget shortfall for this contract of approximately $50,000 to finish this fiscal year. Funding is available from FY 24/25 Departmental savings in expected labor and operations costs across the Department.
Staff will work with the Finance Department to execute FY 24/25 budget reclassifications/adjustments of appropriate funds and accounts that are to be determined.
Funds for the remainder of the contract will be requested during the FY 2025-2027 Biennial Budget preparation.
Coordinated With:
City Manager's Office
City Attorney's Office
Department of Finance and Administration
ATTACHMENTS:
Description
City Council City Council Regular Meeting 6418
Exhibit A-2
SECURITY SERVICES FOR
CITY PARK AND PUBLIC FACILITIES PROPOSALS
EVALUATION FORM
Reviewer: Date:
Firm Evaluated:
Criterion Score Your Score Maximum
Score
1 ) Management/ Operations/Training (0-30) 30
2) Size of Firm/Financial Capabilities (0-25) 25
3) Regular Unarmed
Bill Rate ($35 or less);
20 points ($35.01 -$40); 15 points (0-20) 20
($40.01 -$45); 10 points; ($45.01& up) 5 pts
4) Experience in operating similar types of
Security services (0-15) 15
5 ) Suggested Timeline/Logistics (0-10) 10
6) Adherence to the requirements called
under Attachment C “RFP Submittal Inst.” (0-10) 10
7) Overall quality/presentation of proposal (0-5) 5
Total Score: 115
Reviewer’s Initials:
7419
Lynwood Security Service Proposal Evaluation Criteria
Proposals are rated utilizing the following criteria, which are presented below in order of relative importance. (115 total points possible in scoring).
1. Management and Operations (30 points possible)
a. Qualifications of proposed on- site manager and other critical management personnel.
b. Training and safety programs.
c. Operations approach - organization of the security system's operation, handling of patrons, method of service quality monitoring, number of employees, customer service, supervisory positions.
d. Understanding of requirements as reflected by proposal.
2. Size of Firm/Financial Capabilities (25 points possible) a. Other services available to the City.
b. Financial stability.
c. Manpower Capability (number of officers that firm is able to deploy)
3. Cost Proposal (20 points possible)
a. Company's proposed rates.
b. Proposed wage and benefit levels for employees.
4. Experience in Operating Similar Types of Security Service (15 points possible) a. Company experience with security services of similar size and complexity, references.
5. Suggested Timeline/Logistics/Overall quality of proposal (10 points possible) a. Transition plan and procedures demonstrating the ability to transition smoothly from existing contract to new one, continuity of system operations knowledge to ensure minimal City staff effort during transition.
b. Overall presentation of the proposal in terms of how thorough and organized.
6. Adherence to the requirements (10 points)
a. Company conform with the submittal instructions and complete forms required
7. Overall quality of proposal (5 points)
a. Is the proposal easy to follow and well organized, and does company provide the right balance of information to demonstrate understanding of the City’s needs for security services?
8420
PROPOSAL EVALUATION
DATE OF REVIEW: October 22, 2024
TOTAL COMBINE SCORES / SHORTLIST
Incumbent
COMPANY Southwest
Patrol Citiguard
Professional
Security
Consultants
Espirit
DeSecurity
Services Inc.
Code 4
Private
Security
Cornerstone
Protective
Services
Inter-Con Security
Systems, Inc
Quest National
Security
M4 Security
Guard
Services
Brapga
Security
System
Garda World Absolute
International
Security, Inc
Peralta
Associates &
Defense
NEP-G
Private
Security
Platinum
Security
Amercian
Global
Security, Inc.
Security
Services
Northwest,
Inc.
Kappia
Security
Amercian
Guard
Services, Inc.
National
Eagle
Security,
Inc.
Golden West
Security, Inc.
Assertive
Security
Treston
Security
Services
REGULAR PATROL (UNARMED RATE) $40.00 $28.96 $43.75 $26.00 $30.96 $31.50 $35.59 $34.50 $29.95 $38.07 $36.88 $32.92 $34.00 $39.00 $39.88 $29.99 $65.00
$35.44
$30.10 $29.95 $30.75 $30.55
REGUALAR PATROL (UNARMED OVERTIME RATE)
$60.00 $43.44 $65.63 $35.00 $45.94 $47.25 $53.39 $51.75 $44.93 $57.10 $55.29 $49.38 $51.00 $58.50 $59.82 $44.99 $97.50
$53.17
$45.15 $38.93 $46.12 $45.83
SPECIAL EVENTS/PRIVATE RENTALS (UNARMED RATE) $40.00 $32.96 $65.63 $28.00 $38.00 $35.00 $53.39 $39.50 $29.95 $29.30 $36.88 $29.95 $42.50 $39.00 $50.00 $28.99 $65.00
$53.17
$30.10 $25.95 $30.75 $30.95
ADDITIONAL SECURITY SERVICE (UNAMRED RATE)
$40.00 $32.96 $65.63 $28.00 $45.94 $31.50 $53.39 $34.50 $29.95 $38.07 $36.88 $30.88 $42.50 $39.00 $39.88 $39.99 $65.00
$38.99
$30.10 $29.95 $30.75 $30.55
OPTIONAL SECURITY SERVICES (UNARMED RATE) $40.00 $32.96 $43.75 $28.00 $30.96 $31.50 $35.59 $39.50 $29.95 $38.07 $36.88 $31.80 $34.00 $39.00 $39.88 $34.99 $65.00
$38.99
$30.10 $25.95 $30.75 $30.55
FORMAT AND CONTENT (CHECKLIST) Incomplete
Cover Letter Table of Contents Incomplete Company Experience Management and Operations Company References Training Capability and Competency Suggested Timeline and Logistics Addendum #1 None None None None None None None None None None None Attachment D (Security Firm's Certification) Attachment E (Proposal Fee Schedule) Attachment F (Sample Certificate if Proposer is Co.) Missing Form None Attachment G (Non-Collusion Affidavit) Not Notarized Not Notarized None Not Notarized Attachment H (Organizational Chart) No Chart No Chart
TECHNICAL EVALUATION
Management/Operations/Training (0 to 30 points) 90 55 57 70 38 40 43 83 64 45 39 73 79 45 34 70 73 52 78 47 49 23 36 Management and Operations
Training
Capability and Competency (Homeless Outreach Matters)
Financial and Manpower Capability (0 to 25 Points) 75 39 53 60 33 33 28 69 45 40 30 67 65 52 20 57 58 46 60 27 33 30 33 Regular Patrol Unarmed Bill Rate (0-20 Points) - $35 & LESS (20 POINTS); $35.01- 40 (15 POINTS); $40.01-$45 (10 Points); $45.01 and up (5 Points) 60 45 60 30 60 60 60 45 60 60 45 45 60 60 45 45 60 15 45 60 60 60 60 Experience in operating a similar type security services (0 to 15 points) 45 34 26 45 15 11 24 42 25 20 9 21 38 19 10 25 35 22 39 19 17 19 18 Timeline/Logistics (0 to 10 points) 30 19 18 21 8 12 9 28 12 3 13 19 25 19 17 23 23 9 25 14 10 12 21 Adherence to the requirements of this RFP (0 to 10 Points) 30 25 23 23 26 14 14 30 30 21 13 23 30 16 21 24 28 15 30 30 28 23 17 Overall quality/presentation of propsal (0 to 5 Points) 15 10 10 8 6 4 4 15 9 8 5 10 14 9 5 11 12 5 13 6 6 3 7 TOTAL POINTS POSSIBLE 345 227 247 257 186 174 182 312 245 197 154 258 311 220 152 255 289 164 290 203 203 170 192 AVG. SCORE 75 82 85.6 62 58 60 104 81 65 51 86 103 73 50 85 96 54 97 67 67 56 64 PRELIMININARY SHORTLIST RANKING AVG. 6 1 5 2 4 3
Only
submitted
one(1) copy
9421
Average
Rate
$773.74 $35.17
$1,150.11 $52.77
$854.97 $38.86
$854.41 $38.86
$788.17 $35.82
10422
SECURITY GUARD SERVICES RFP
SHORTLISTED CANIDIDATES
Exhibit “A”
Interview Maximum Total Points: 300
Firm
Los Angeles
County Sheriff
Sergeant
Lynwood Unified
School District
Campus Officer
City of
Lynwood
Community
Development
Safety Officer
Total
Combined
Points
Interview
Average
Score
Order by
Interview
Ranking
American Guard Services 94 96 96 286 95 1
Inter-Con Security
Systems,Inc.
93 93 92 278 92 2
Garda World Security 91 90 87 268 89 3
Absolute International Security 89 82 80 251 83 4
American Global Security, Inc. 83 82 82 247 82 5
Professional Security
Consultants 60 58 62 180 60 6
11423
RESOLUTION NO.____________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
AUTHORIZING THE MAYOR TO EXECUTE AN AGREEMENT BETWEEN THE CITY OF LYNWOOD AND AMERICAN GUARD SERVICES, INC. TO PROVIDE SECURITY GUARD SERVICES FOR THE CITY OF LYNWOOD’S PARKS AND PUBLIC
FACILITIES
WHEREAS, the City is interested in obtaining a highly qualified professional security firm to provide security guard services in City parks and public facilities; and WHEREAS, the security service provider must effectively and efficiently serve the City and citizens of Lynwood; and
WHEREAS, a competitive proposal solicitation was held; and WHEREAS, the proposals were evaluated by city staff management; and WHEREAS, the criteria used to evaluate proposals addressed all of the issues staff considered to be relevant to the provision of cost-effective high-quality security service and is included this agenda report; and
WHEREAS, the interview panel ranked American Guard Services, Inc. to be the best of the six (6) top shortlisted interviewed; and
WHEREAS, staff recommends that based on the selection by the panel, and a favorable review of qualifications, references, capabilities, and concluded that the proposal of American Guard Services, Inc. is the proposal that best meets the City’s needs; and
WHEREAS, funds are budgeted and available in the following accounts for security services for FY 24/25:
Description: Unarmed Security Guard Services (Regular Patrol, Special Events, Hall Renters
Account Number Department Activity Allocation
1011.60.701.62016 Recreation Regular Patrol $255,470
1011.60.701.62015 Recreation Special Events $17,364
1011.60.740.62016 Recreation Hall Renters $25,040
1011.45.450.62016 Public Works Regular Patrol $19,680
1011.30.275.62016 Finance Regular Patrol $39,360
1011.25.205.62016 City Manager Regular Patrol $9,840
1011.65.290.62016 Technology Regular Patrol $9,840
1011.60.740.62016 Com. Dev Regular Patrol $9,840
1011.10.101.62016 City Council Regular Patrol $9,840
1011.35.330.62016 Human Resource Regular Patrol $9,840
12424
1011.15.105.62016 City Clerk Regular Patrol $9,840
1011.20.110.62016 City Treasurer Regular Patrol $9,840
NOW, THEREFORE, THE CITY OF LYNWOOD DOES HEREBY FIND, ORDER, AND RESOLVE AS FOLLOWS:
Section 1. That the City Council approves the selection of American Guard Services, Inc. to provide Security Services for the City of Lynwood’s parks and facilities.
Section 2. That the Council authorizes the Finance Department to allow budget transfers totaling $50,000 within various recreation accounts to the security service account in order to pay for security services for the balance of the FY 24/25.
Section 3. That the City Council directs staff to negotiate an agreement with American Guard Security, Inc. with the terms and conditions included in the RFP, including have the City Attorney review and approve as to form.
Section 4. That the Mayor is authorized to execute a two-year agreement with American Guard Services, Inc. from February 1, 2025 through February 1, 2027, with options for three (3) one-year terms, in a form approved by the City Attorney.
Section 5. A record signature copy of said agreement and any amendments is to be on file in the Office of the City Clerk.
Section 6. The Mayor is authorized to execute this Resolution for and on behalf of the City of Lynwood.
Section 6. This Resolution shall become effective immediately upon adoption.
PASSED, APPROVED AND ADOPTED this 17th day of December, 2024. _________________________
Rita Soto
Mayor
ATTEST:
_______________________ __________________________
Maria Quinonez Julian Lee
City Clerk Interim City Manager
13425
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
________________________ __________________________
Noel Tapia, Mark Flores, Director
City Attorney Recreation & Community Services
STATE OF CALIFORNIA }
} SS.
COUNTY OF LOS ANGELES }
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the foregoing Resolution was passed and adopted by the Lynwood City Council 14426
at a regularly scheduled meeting held on the 17th day of December 17, 2024.
AYES:
NOES:
ABSENT:
ABSTAIN:
__________________________
Maria Quinonez, City Clerk
STATE OF CALIFORNIA }
} SS.
COUNTY OF LOS ANGELES }
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing is a full, true and correct copy of Resolution No. ______ on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 17th day of December, 2024.
__________________________
Maria Quinonez, City Clerk
15427
AGENDA STAFF REPORT
DATE: February 4, 2025
TO: Honorable Mayor and Members of the City Council
APPROVED BY: Julian Lee, Interim City Manager
PREPARED BY: Mark Flores, Director of Recreation & Community Services SUBJECT: REQUEST FOR CITY COUNCIL DIRECTION ON CONTINUING WITH THE SELECTION PROCESS FOR THE CITY’S NEXT PROVIDER OF
SECURITY PATROL SERVICES TO THE CITY'S PARKS AND
FACILITIES
Agenda Item # 9.5.
Recommendation:
Staff recommends that the City Council provide direction on how to continue with the process to select the City’s next provider of Security Patrol Services to the City’s Parks and Facilities by selecting one of the following options:
Options:
1. Staff to return to the City Council an expanded short-list of final ranked vendors. City Council to determine the specific number of ranked firms for staff to expand to from the original top six firms interviewed.
2. Reject all bids and issue a new Request For Proposals (RFP) reflecting a revised scope of services and proposed new fee schedules.
3. Other Direction as Provided by the City Council.
Background:
City Council City Council Regular Meeting
242
ATTACHMENT #3 (05/06/25)428
During its formal consideration of the selection of a new professional security services provider held on December 17, 2024, the City Council expressed its desire to continue the selection deliberations to a meeting in February 2025. After receiving additional input from the City Council, staff is respectfully requesting the City Council provide direction on proceeding with the selection process by approving one of the presented options.
Discussion and Analysis:
At its meeting held on December 17, 2024, the City Council decided to continue consideration of the selection of a new security services provider to a regular meeting in February 2025. (Attachment "A” – Original Staff Report from 12/17/24 meeting) It was the intent of the City Council to have more time to fully consider a selection and to consider potentially amending the original requested duties to best serve the City’s needs. After receiving input from the City Council, staff is now requesting that the City Council provide its direction on how to proceed by selecting one of the presented options.
OPTION #1
Staff to return to the City Council an expanded short-list of ranked vendors. City Council to determine the specific number of ranked firms for staff to expand to from the original top six firms interviewed.
Description and Option Notes:
Should the City Council wish to consider this option, staff requests that the City Council identify
a specific number of
additional
firms to be ranked and interviewed. For example, the
original short list consisted of the top six (6) interviewed firms and a then the “Top Three” presented to the City Council for consideration. Should the City Council wish to direct that a “Top Ten” be presented to the City Council, this would require the next four firms
(from the
original December 2024 rankings be interviewed and ranked to complete a “top ten” of firms (Original Top Six plus the next four in the rankings) for consideration.
Staff estimates that it would take approximately three to four additional weeks to properly notice the additional firms and also secure and convene a new professional review panel. It will then take approximately another week to analyze the interview results and produce a Staff Report for consideration at the next available regular meeting.
City Council City Council Regular Meeting 243429
OPTION #2
Reject all bids and issue a new Request For Proposals (RFP) reflecting a revised scope of services and proposed new fee schedules.
Description and Option #2 Notes:
Should the City Council wish to consider this option, the original RFP will be rejected and all proposers will be advised. A new RFP will then be issued that reflects a change to the Scope of Work including working hour schedule. Staff estimates that a new RFP process will take approximately 4-5 months before returning a recommendation to the City Council for consideration.
OPTION #3
Other Direction as Provided by the City Council
Description and Option #3 Notes:
This provides the City Council the option to direct staff to proceed with a customized option at the City Council’s discretion.
Staff is requesting that the City Council provide staff its direction via approval of one of the presented options and then return its findings and recommendation back to the City Council for its approval at a future date.
Fiscal Impact:
The requested action does not have a fiscal impact.
City Council City Council Regular Meeting 244430
ATTACHMENT A AGENDA ITEM Selection of New Security Firm 121724.pdf Coordinated With:
City Manager's Office
City Attorney's Office
ATTACHMENTS:
Description
City Council City Council Regular Meeting 245431
ATTACHMENT #4
TABLE 1.B – Detail of Proposed Service Rates
Summary of proposed r ates by finalist firms and the approximate annual cost to the City based on the current ly contracted service levels: 224 hours /week or 11,648 hours/year of regular patrol service; plus 441 hours/year of special event services ; plus 352 hours/year of holiday/overtime pay; and plus 1,900 hours/year for private party facility rentals:
*Estimated “True Cost to the City” reflects the security service contract costs MINUS “pass-through” revenue from private rental users.
Company
In Alphabetical Order
Bill Rate
Regular Patrol
11,648 hrs.
Bill Rate
Special Event
441 hrs.
Bill Rate
Holiday/OT
352 hrs.
*Bill Rate
Private Rentals
REVENUE
1,900 hrs.
Approx.
Annual Cost
to City
* True Cost to City
Est. Annual Contract cost
MINUS Pass-Through
Revs.
A Absolute International $32.92
$384,452
$29.95
$13,208
$49.38
$17,382
$29.95
*$56,905 $471,947 $415,042
B American Global $29.99
$349,324
$28.99
$12,785
$44.99
$15,836
$28.99
*$55,081 $433,026 $377,945
C American Guard
$35.44/Hrly
$412,805
$53.17/Hrly
$23,448
53.17/Hrly
$18,716
$53.17/Hrly
*$101,023
$555,992
$454,969
D Citiguard $28.96
$337,326
$32.96
$14,535
$43.44
$15,291
$32.96
$62,624 $429,776 $367,152
E Garda World Security
$36.88/Hrly
$429,578
$36.88/Hrly
$16,265
$55.29/Hrly
$19,462
$36.88/Hrly
*$70,072
$535,377 $465,305
F Inter-Con Security Systems,
Inc.
$35.59/Hrly
$414,552
$53.39/Hrly
$23,545
$53.39/Hrly
$18,793
$53.39/Hrly
*$101,441 $558,331 $456,890
G Quest National $34.50
$401,856
$39.50
$17,420
$51.75
$18,216
$39.50
$75,050 $512,542 $437,492
H Platinum Security $39.88
$464,522
$50
$22,050
$59.82
$21,057
$50.00
$95,000 $602,629 $507,629
I Professional Security
Consultants
$43.75
$509,600
$65.63
$28,943
$65.63
$23,102
$65.63
$124,697 $686,342 $561,645
J Southwest Patrol $40
$465,920
$40
$17,640
$60
$21,120
$40
$76,000 $580,680 $504,680
AVR. $536,614 $454,875
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1 City of Lynwood RFP Resolution No. 2024.037
August 7, 2024
NOTICE OF REQUEST FOR PROPOSALS
BY CITY OF LYNWOOD FOR
SECURITY SERVICES FOR THE CITY’S
PARKS AND PUBLIC FACILITIES
NOTICE INVITING REQUEST FOR PROPOSALS
FOR
Proposals due by: W ednesday, September 25, 2024
CITY OF LYNWOOD
RECREATION AND COMMUNITY SERVICES DEPARTMENT
11330 Bullis Road, Lynwood, CA 90262
ATTACHMENT#5
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2 City of Lynwood RFP Resolution No. 2024.037
August 7, 2024
SECURITY SERVICES FOR THE
CITY’S PARKS AND PUBLIC FACILITIES
The City of Lynwood (“City”), California solicits offers from qualified security firms to provide Security Guard Services (Non-armed/Armed) to patrol a large range of City facilities including parks, office buildings, parking lots, athletic fields, community centers, and a public works yard facility. The City views the contracted security services as an extension of the City’s public safety services with the intent to enhance security presence in the City’s major parks and improve the experience of visitors at the City facilities.
The services provided shall be in accordance with the Standard Provisions and Scope of Work set forth in this request.
All proposals must be received in the City Clerk’s Office before the time of 3:00 p.m.
Wednesday, September 25, 2024. Submit one (1) original and six (6) copies in a sealed envelope titled “RFP FOR SECURITY SERVICES TO THE CITY’S PARKS AND PUBLIC FACILITIES” to the address below:
MARIA QUINONEZ, CITY CLERK
CITY CLERK’S OFFICE
CITY OF LYNWOOD
11330 BULLIS ROAD
LYNWOOD, CA 90262
There will be a Pre-Proposal Meeting held on Wednesday, August 28, 2024 at 10:00 a.m. at Bateman Hall, 11331 Bullis Road, Lynwood, CA, 90262. It is highly recommended that bidders have a representative attend the meeting. This will be your only opportunity for an onsite review. The attendance of Company’s representative is not a prerequisite to submitting a proposal.
Proposals shall be signed by proposer’s authorized representative and enclosed in their sealed envelope. Proposals received after the submittal time will be automatically disqualified and rejected.
The City is not responsible for any liability claims or costs incurred by the proposer in the preparation, transportation, and submission of proposals. All proposals become the property of the City once they are submitted.
The City of Lynwood reserves the right to reject any and all proposals, to waive any irregularity in a proposal, and to make an award as may best serve the interests of the City.
Companies interested in obtaining a copy of this Request for Proposals, may do so by visiting the City’s webpage at www.lynwoodca.gov. From there, view the drop -down list for “City Services” and click on “Bids and RFP’S.” The web address used to register as a vendor and to view and download the RFP is:
https://vendors.planetbids.com/portal/39486/portal-home
All correspondences, communications and contact in regard to any aspect of this solicitation or offers shall be only directed to: Mark Flores, Director of Recreation and Community Services Department, by electronic mail [email protected]
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No interpretation of the meaning of the descriptions, specifications, or other pre- proposal documents will be made to any proposer orally. Every request for such interpretations shall be in writing addressed to the above person by electronic mail.
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TABLE OF CONTENTS
PAGE (S)
SECTION I INTRODUCTION 6
SECTION II GENERAL DESCPRITION 6
SECTION III ABOUT THE CITY 6
SECTION IV ABOUT THE PROJECT 7
SECTION V GENERAL SCOPE OF WORK 7
SECTION VI SERVICE LOCATIONS 8
SECTION VII REQUIRED DUTIES 10
SECTION VIII CONTRACTOR PERSONNEL REQUIREMENTS 12
SECTION IX CONTRACTOR SUPERVISION REQUIREMENTS 17
SECTION X CONTRACTOR TRAINING REQUIREMENTS 18
SECTION XI CONTRACTOR COMPLAINT PROCEDURE 18
SECTION XII EQUIPMENT AND UNIFORMS 19
SECTION XIII SPECIAL PROVISON 20
SECTION XIV GENERAL CONTRACT REQUIREMENTS 21
SECTION XV PROPOSAL INQUIRIES 27
SECTION XVI ADDENDA 27
SECTION XVII SUBMITTAL INSTRUCTIONS 27
SECTION XVIII EVALUATION AND SELECTION 28
SECTION XX RFP TIMELINE 30
ATTACHMENT A RFP SUBMITTAL INSTRUCTIONS 32
ATTACHMENT B SAMPLE AGREEMENT 34
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ATTACHMENTS REQUIRED FORMS 43-50
Attachment C - Checklist Form
Attachment D - Security Firm’s Certification
Attachment E - Vendor Hourly Rate Quote Sheet
Attachment F - Sample Certification if the Proposer is a Corporation Attachment G - Non-Collusion Affidavit
Attachment H - Organizational Chart
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6 City of Lynwood RFP Resolution No. 2024.037
August 7, 2024
REQUEST FOR PROPOSAL
FOR SECURITY SERVICES TO THE CITY’S PARKS AND PUBLIC FACILITIES
I. INTRODUCTION
The City of Lynwood (“City”), California solicits offers from qualified security firms to provide (Non-armed/Armed) Security Guard Services to patrol a large range of City facilities including parks, office buildings, parking lots, athletic fields, community centers, and a public works yard facility.
II. GENERAL DESCRIPTION
The City is seeking a Contractor through this Request for Proposals (RFP) with the ability to provide management, staffing and equipment for armed and non- armed Security Guard Services as described in this RFP.
Security Guards are needed to provide security presence at the City’s major parks, enhance park services (in the form of responsive attention to customer complaints and homeless situations), and positively add to the experience of visitors at City facilities. The contracted services require high visibility, significant public relations skills, effective communication, alertness and strong problem -solving abilities. It is imperative that the individual security guards be able to engage vulnerable patrons with mental health issues and/or experiencing homelessness.
The selected Contractor shall be responsible for the following:
a) Management: On and off-site management as required to plan, schedule, perform, and manage security personnel deployments; and
b) Staffing Levels: Staffing levels required to support the services in this RFP; and c) Equipment: Supplying all equipment required by this RFP; and d) Compliance: Adhering to all laws, rules, regulations, and procedures applicable to the services to be provided under this Contract.
The RFP establishes minimum mandatory requirements that the Contractor must meet in order to be eligible for consideration. This RFP also specifies the information to be included in each proposal.
III. ABOUT THE CITY
Located in the industrial heartland of Los Angeles County, the City is nestled less than 20 miles between two of the busiest ports in the world, Port of Long Beach and Port of Los Angeles.
Major transportation corridors bound the City of Lynwood: I -710 Long Beach Freeway to the east, I-105 running east and west, and the Alameda Corridor to the west.
The City consists of 4.9 square miles. The City is a general law city operating under a Council- Manager form of government. The City’s policymakers are comprised of five (5) members elected at large in overlapping terms. It has an annual operating budget of $152. 5 million dollars and 154 employees. The City contracts with the Los Angeles County Sheriff Department to provide law enforcement. Arrest and citations are issued by the Los Angeles County Sheriff deputies . The City’s parking and code enforcement officers’ issue 438
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Administrative Citations intended to be used for violations of the municipal code that are more transient in nature such as parking and vendors without permit.
IV. ABOUT THE PROJECT
The City of Lynwood welcomes approximately 1,000,000 patrons annually to its parks system and City facilities. The City’s mission is to provide attractive and safe facilities for the community. Patrons of city facilities should expect to consistently experience an enjoyable, welcoming, entertaining, and safe visit each and every time.
Currently, a private security company through contractual services is patrolling at several City locations. The locations include, but are not limited to the following: City Hall, City Hall North, City Hall Annex, Bateman Hall, Robert Henning Youth Center, Lucy Avalos Community Center, Senior Center, Community/Transit Center, Natatorium and Public Works Yard, Lynwood City Park, Burke-Ham Park, Medina Park, Lara Linear Park, Fernwood Avenue Park, and Lynwood Urban Bike Trail. The contract expires November 17, 2024.
V. GENERAL SCOPE OF WORK
The successful Contractor shall be required to provide all labor, equipment, and supplies for the assigned Security Officers to properly perform all security services under this contract as specified below.
Various City Facilities or locations (Regular Patrol Services)
The City will require services of unarmed security officers to provide coverage (to patrol City main locations as described in Section VI) for 2 different time shifts, 6:00 a.m. - 2:30 p.m. and 2:00 p.m. – 10:30 p.m. The services will take place each day, 365 days per year, including holidays;
Rentals & Events – Hosted and permitted by the City
The City will require security services for special events and private facility rentals and the Contractor must be able to provide services at various days and times within the City limits.
Additional Security Guard Services as assigned by the City
The City may request additional Security Services, over and above the regular patrol services per week coverage. These services are on an as needed basis and may require armed or non-armed guard services be performed at a location separate from the regular patrol services.
Officer Total Hours Per Shift Shift
(2) Unarmed 80 Mon. - Fri. 6:00 a.m. - 2:30 p.m.
(2) Unarmed 80 Mon. - Fri. 2:00 p.m. - 10:30 p.m.
(2) Unarmed 32 Sat. and Sun. 6:00 a.m. - 2:30 p.m.
(2) Unarmed 32 Sat. and Sun. 2:00 p.m. - 10:30 p.m.
Total Hrs. Per Wk. 224/ hrs.
Note: the quantities (# of Hours) are
approx. only and City may adjust or
delete.
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Optional Security Services:
Security Officer (s) to have the ability to provide basic homeless services agency contacts to homeless individuals. This includes:
• Security Officers to engage with homeless patrons at City facilities and direct them to agencies providing homeless services (For example: Handouts that have “Homeless Services” providers contact information).
• Security Officers to be knowledgeable of the local homeless services providers that they can connect homeless individuals to for access to appropriate homeless services (For example: LAHSA, PATH Homeless Services, LAC Department of Public Social Services, LAC “Dial 2-1-1”, etc.). General types of homeless issues that Security Officers should have resource contacts for:
a. Homeless street outreach programming/efforts;
b. Substance abuse programs and services directed at homeless individuals; c. Medical and/or mental health services directed at homeless individuals; d. Crisis housing and rapid re-housing assistance;
e. Homeless prevention services and programs including those serving survivors of domestic violence;
f. Coordinated Entry System services
g. Case management services for homeless individuals;
h. Services to the vehicular homeless; and
i. Other miscellaneous services to homeless individuals or related to the prevention of homelessness.
• On a Monthly Report basis, provide the City with basic documentation of interactions with homeless persons that Security Officers engage at City facilities. (i.e. Name, Date, facility location; general contact description, resources provided)
VI. SERVICE LOCATIONS
List of the parks and facilities and a description of the property requiring security guard services:
City Hall and Base Facilities:
No. Buildings Amenities
1 City Hall
11330 Bullis Road
Building 1 ( Finance and Human Resources
offices and parking lot)
2 North City Hall
(next to City Hall)
Building 2 (offices and enclosed employee
parking lot)
3 Senior Citizen Center
11329 Ernestine Avenue
Building 3 (meeting hall, offices and parking
lot)
4 Bateman Hall
11331Ernestine Avenue
Building 4 (auditorium, banquet rooms,
kitchens, offices, parking lots)
5 City Hall Annex/Council Chambers
Building 5 (City Manager office, City Council
offices, Council Chambers, and parking lot)
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6 Armory Parking Lot City vehicle fleet lot
The Lynwood City Park Sports Complex:
No. Facilities Amenities
7 Lynwood City Park
11301 Bullis Road
3 baseball fields, 3 soccer Fields, skate
park, tennis courts, 2 playground areas, 5
picnic shelters
8 Lynwood Community/Transit Center)
11301 Bullis Road
Building 6 (gym, meeting rooms, offices and
parking lot)
9 Natatorium Facility
3770 Martin Luther King Boulevard
Building 7 (indoor pool, locker rooms and
parking lot)
10 Lynwood Youth Center
11409 Birch Street
Building 8 (game room, kitchen, computer
lab, and parking lot)
Yvonne Burke- John Ham Park and facility:
11 Yvonne- Burke Ham Park
11832 Atlantic Avenue
Mobile trailer building and parking lot,
baseball field, playground area, outdoor
exercise stations, picnic tables and BBQ
grills.
12 Avalos Community Center
Building 9 (offices, meeting rooms,
concession stand, kitchen, courtyard and
parking lot)
Satellite Parks and Public Yard Building:
No. Parks Amenities
13 Adolfo Medina Community Park
11915 State Street
Playground equipment, basketball court,
restrooms and picnic shelters
14 Los Amigos Community Park (West)
Approx. Address: 3171 El Segundo
Boulevard
Playground equipment and picnic tables
15 Los Amigos Community Park (East)
Approx. Address: 3217 El Segundo
Boulevard
Playground Equipment and Picnic Tables
16 Senator Lara Linear Park
One mile walk trail spanning 5 blocks,
consists of playground, community garden,
2 dog parks, pavilion and exercise stations
17 Mark Twain Park
4142 Carlin Avenue
Small Pocket Park, concrete walkway,
picnic table, benches, and bike rack
18 Camphor Tree Park
4015 Louise Street
Small Pocket Park, concrete walkway,
picnic table, benches, and bike rack
19 Wilson School Park
3655 Lynwood Road
Small Pocket Park, concrete walkway,
picnic table, benches, and bike rack
20 Carnation Community Park
Los Flores Boulevard and State Street Open space, circular walkway 441
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21 Rose Park Community Park
Flower Street and State Street
Open space, circular walkway, lighting,
picnic tables and benches
22 Public Works Water Yard
11750 South Alameda Street
Building 10 (offices, city vehicle fleet,
storage, and gated yard)
23 Fernwood Avenue Park
Approximately 0.2 mile walk path along
Fernwood Avenue, the one- block park
consists of children’s play area, bioswales
and benches.
24 Lynwood Urban Bike Trail
Approximately 1.2 mile stretch of bike trail
along Interstate 105 in Lynwood , from
Wright Road to Fir Street.
VII. REQUIRED DUTIES
The following are tasks and general minimum work and services that the security personnel will perform, that are specific to each City facility/site location for which the City requires security services:
a. Lynwood City Park- Sports Complex and Facilities:
Golf cart or vehicle patrol is required.
Security Officer(s) are responsible for continuous patrol of the park, securing gates, regular inspection of restrooms, concession building, and park perimeters; report items requiring repair to City staff in a timely manner (burned lights, graffiti, and damages or broken equipment). During patrol, the security officer (s) are expected to approach individuals who may be illegally loitering or disturbing the public or engaging in vandalism or unwanted behavior. If the party not comply, security officer shall report the incident to the Sheriff Department.
Miscellaneous duties may include opening and closing restrooms, athletic fields, and turning field lights off and on.
b. City Hall Complex and Base Facilities:
Golf cart or vehicle patrol is required.
Security Officer(s) are responsible for continually patrolling and walking through the exterior and/or interior of the complex. Security Officer(s) may need to pick up City Council Agendas, City mail, and make deliveries. Additionally, security officers may need to assist Sheriff Deputies assigned to the Council Chamber during City Council and City Board meetings when needed. This is done as backup to the deputies on any issues that may arise during these meetings.
Specific Duties: Security officer (s) will be assigned to check City Hall in the morning and evening hours, to monitor activity, and escort staff to parking areas and assist with lock down of City Hall on an as needed basis.
c. Lynwood Community /Transit Center:
Golf cart or vehicle patrol is required.
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Security officer(s) shall be responsible for continually patrolling and walking through the exterior and interior of the Center. Security Officer(s) may need to pick up city mail and make special deliveries. Security guards will assist patrons at the Community Center and may need to advise patrons regarding rules and/or restrictions for the use of the facility.
Specific Duties: The Transit Center is the hub of the city’s local fixed route transportation system (Trolley). Security presence at the Transit site is required to deter criminal activity and disorder when students from the nearby Middle School utilize public transportation to and from school.
Security Officer(s) for the Transit Site patrols will be: Two Security Officers from 7:30 a.m. to 9:00 a.m. and 2:00 p.m. to 3:30 p.m., dur ing the school -year calendar September to June. Security presence has reduced the number of rider and vandalism incidents previously experienced.
d. Community Neighborhood/Pocket Parks: Adolfo Medina Park, Burke Ham Park, Senator Lara Linear Park, Fernwood Avenue Park, Lynwood Urban Bike Trail, Los Amigos Park, Mark Twain School Park, Camphor Park, Wilson School Park, Rose Park and Carnation Park:
Roving Patrol (in marked security patrol vehicle).
Security Officer(s) shall be required to conduct “pass through” patrols through the exterior of these parks. Security Officer (s) may need to open/lock park restrooms at locations required as needed. Security will be required to report items requiring repair to City staff in a timely manner (burned out lights , graffiti, any damages or broken equipment), and are to call for Sheriff or other emergency response as circumstances warrant.
Security guards may need to advise park patrons regarding rules and/or restrictions for the use of the parks or park facilities . Security guard hours for the community park patrols will be at random: 7 days a week, including holidays
e. City Facility Parking Lots:
Roving Patrol (in marked security patrol vehicle).
Security Officer(s) shall be required to conduct continuous rounds and inspections of parking lots for building customers and employees, and any vehicle or person found to be suspicious should be investigated, and if determined to be a threat, the Los Angeles County Sheriff Department should be notified.
f. Robert Henning Youth Center, Senior Center, Natatorium and the Community Center:
Roving Patrol (in marked security patrol vehicle).
Security Officer(s) shall randomly patrol these Centers to deter criminal activity.
Security Officers may need to advise Center patrons regarding rules and/or restrictions 443
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for the use of the city facilities. Graffiti at patrolled locations will be documented and referred to City staff for cleanup.
At times the City may require Security office to respond immediately to the theft alarm sounding at city facilities.
g. Special Events (hosted by the City):
Requesting a Uniformed Guard.
The City will occasionally require security guard service for special events. These events may require up to 20 uniformed, licensed, armed and unarmed security guards.
The City will provide a minimum of 15 days advance notice for such events.
Approximate required hours/month: 30 - 50 hrs.
h. Bateman Hall and Multiple Locations Private Rentals (permitted by the City):
Requesting a Uniformed Non-Armed Guard.
The Bateman Hall facility and various Facilities are rented to the public for private events held primarily evenings and weekends. Security is required and Contractor is provided with a monthly schedule of approved rentals are billed to the City separate from the regular patrol services.
Specific duties required: Continue patrol of facility event or rental, both inside and outside of facilities, including parking lots; monitor restrooms and other rooms of the facilities to discourage graffiti or damage to facilities; establish regular communications with City staff members on duty; encourage orderly behavior among patrons; report any incidents immediately to City staff; be prepared to notify Sheriff Deputies should need arise.
The City’s Facility Manager determines the number of security guards needed, depending on the type and size of the event. Security service of unarmed guards is required to provide coverage for these events to help ensure public safety. Typically, these services are requested in 5 to 8– hour shifts and the number of guards can vary by specific assignment from one (1) or two (2) security guards. Security guard hours are on an as needed basis separate from the regular patrol.
Approximately required hours/month: Approximately 96 or more depending on rentals.
VIII. CONTRACTOR PERSONNEL REQUIREMENTS
Security Officers provided pursuant to the aforementioned Scope of Work and contract is for both unarmed and armed classifications, the security officer(s) will be assigned to respective City site/facility locations.
a. Contractor Security Service
The Contractor, at its sole expense, shall provide and furnish all labor, equipment, vehicles, and supplies for the assigned Security Officers for their performance of security services as specified. The Contractor shall supply the City with security service 444
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personnel who are properly trained, qualified and certified, and who meet the minimum requirements and qualifications called for in the contract. The costs for said labor; equipment, vehicles and supplies are included in the hourly fees charged by the Contractor for the various services. Contractor is responsible for payment of their employees’ wages, salaries, overtime, benefits, taxes, insurance, and other required costs associated with employment. At no time are they considered employees of the City of Lynwood. Security Guards assigned to duties with the City of Lynwood will not work in excess of 12 hours per day with a turnaround time of less than 12 hours, or 52 hours per week on all assignments combined.
b. Personnel Standards
Contractor must insure that each security officer assigned to the City of Lynwood meet the following criteria:
o Must be authorized to maintain employment in the United States according to current U.S. Immigration Department rules and regulations, and must have the ability to read, write and speak the English language.
o Must be at least 21 years of age and possess either a high school diploma or a G.E.D.
o Must possess a valid California driver license.
o Must be able to perform the physical duties of the job. Security officer duties require moderate to arduous physical exertion, including (but not limited to) such activities as:
i. Standing or walking for an entire shift.
ii. Climbing stairs.
iii. Lifting and carrying objects weighting up to 50 pounds. iv. Running for short distances.
v. Must be free from narcotics, marijuana and dangerous drugs as evidenced by an approved testing process. It is the contractor s responsibility to ensure that all security officers assigned to the City are drug free.
o All security officers working on the City properties must be able to pass a background check.
o All on-duty security officers shall be trained and qualified for the work assigned to them.
c. Activity and Incident Reports
Security officer personnel shall keep legible, current and accurate daily activity reports that shall begin and end with the security guard’ s shift. Occurrences or incidents that are serious in nature or of concern to the City shall be reported on an individual basis by a full, written report, a copy of which shall be delivered to the Recreation and Community Services Director’s office the following City work day.
d. Criminal Background Check
The Contractor shall complete a criminal background check of all Security Officers, and Operations Manager prior to assignment under the contract, and prior to assigning Security Officer to a City facility, site, and/or post. Thereafter, Contractor shall conduct an annual check, or as deemed necessary for security reasons. The criminal background check shall be for felony, misdemeanor and traffic violations in all United States or countries that the individual has resided in the last five (5) years. Any Security 445
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Officer found failing to divulge a felony or misdemeanor conviction should not be assigned to the City's security services contract. All costs of thes e checks shall be at the Contractor's expense.
1) Security Officers/Guards and Operations Managers who have been involved in any of the following will not be accepted nor assigned to City security service:
Felony Conviction
Violent Misdemeanor Conviction
Sex Crime Conviction
2) Verification for above violations, military conduct, and crime will be done through California Department of Justice, DMV, and/or FBI
e. Licenses
The contractor shall secure or maintain in force during the period covered by any contract resulting from this specification all licenses and permits required by law for the operation of their business, including a Lynwood Business License.
f. Literacy
All Security Officers shall have the ability to read, write, speak and understand English.
This includes having the ability to read regulations, written orders, instructions, and training instructions in English. The Security Officers shall also have the ability to prepare and compose reports, which convey complete information and are presentable for management and/or potential litigation review, in English.
g. Bilingual Skills
At some City facilities/site locations bilingual skills may be required. Bilingual skills for the specification are English and Spanish. Communication requirements for Spanish include the ability to have basic conversations with members of the public and the ability to relay basic directions and regulatory information to members of the public.
h. Regulations Regarding Weapon Safety
If requested and permitted to carry a f irearm while performing security duties. Any armed guard provided must be authorized to carry any weapons in which they have been certified by the Bureau of Security and Investigation Services. Additional weapon qualification requirements may be required by the City. A copy of weapon permit shall be provided to the City upon request . All weapon permits should be current and maintained in accordance with the contract.
1) Firearms – Firearms must be carried in an appropriate side holster at all times except when legally necessary or an emergency circumstances exits. One (1) handgun only shall be carried by assigned security officer and shall be carried only in a typical police-type uniform outward display or manner and in a holster, which secures the weapon.
2) No additional handgun shall be carried on person or in vehicle. 3) At No time will security weapons (i.e. firearm including belt and ammunition), 446
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be stored at City sites where security services are being provided. 4) Security Officers shall not clean any weapon during work assignment in or on City facility/site locations.
5) Training in use of the Firearm
a. Contractor shall insure its security officer personnel are trained on how to use and shoot the firearm by a State of California certified instructor. b. Written records of this training shall be kept updated and maintained by Contractor at all times throughout the term of this Agreement. 6) When to Un-holster and When to Use the Firearm
a. Contractor shall insure its security officer personnel are trained on when to un-holster the firearm and when to use it by a State of California certified qualified instructor.
b. Contractor shall insure its security officer personnel maintain continued competency to work as an armed guard , the firearm permitholder will need to requalify twice each year during the initial and renewal terms of this Agreement.
c. Written records of this training shall be kept updated and maintained by Contractor at all times throughout the term of this Agreement. 7) Side-Handle Baton
a. Contractor shall observe safeguards regarding the use of the batons at any and all work sites.
b. The security officer will have satisfactorily completed a course of instruction certified by the State of California Department of Consumer Affairs Bureau of Security and Investigativ e Services Permit, in the carrying and use of the baton by a bureau-certified baton instructor.
i. Conduct
Contractor's Security Officers will be working in City facility/site locations, and as such, they must be polite, courteous, helpful, and interested in serving the public well.
Professional standards are expected at all times while on a City post. The City Manager’s designated representative will routinely conduct surprise inspections to ensure the quality of contract officers assigned to City facilities. If it is determined that assigned officers do not meet standards of courtesy, ethics, appearance, alertness, and preparedness, they will be removed from post immediately at the expense of the Contractor.
k. Public and News Media Contacts
City of Lynwood facilities will occasionally become involved in newsworthy projects or events. Situations in which general interest leads to direct news media contacts must be dealt with carefully. All media inquiries must be referred to the Office of the Lynwood City Manager. Unless otherwise directed in writing by the Office of the Lynwood City Manager, no Security Officer or Security Company representative is to issue any statement to the media. To ensure the accurate representation and communication of City policy in any statements, all media responses must be reviewed and approved by the Office of the Lynwood City Manager before dissemination.
All requests for statement of City policy regarding any matter under the control of or of direct interest to the City must be referred to the Office of the Lynwood City Manager at (310) 603-0220, Ext. 200.
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All requests for information other than previously prepared written and approved information shall be referred to the Office of the Lynwood City Manager.
l. Telephone Calls
The City’s policy regarding use of City telephones for personal use, making and/or receiving personal telephone calls shall not exceed three (3) minutes in duration.
Personal calls are considered a privilege. The Contractor’s Security Officers are to use the telephone to call in to the Contractor’s dispatcher or report an incident to corresponding Emergency Departments. If any calls are found to be non- business related, the Security Officer(s) will be requested to be removed and not be allowed to work at any City facilities or locations, and the City will request the Contractor to reimburse the City, regardless of the cost of the call. In addition the City will not pay for the services or productivity lost during such call(s). The Contractor is advised that repeat behavior could result in removal of an account and/or replacement by another Contractor.
m. Soliciting
Soliciting by the Contractor and its Security Officers is prohibited on City premises. The Contractor shall inform Security Officers of this policy prior to commencing work under this Contract.
n. Personal Appearance
1) Hair Standards: Security officers shall keep their hair neat, clean, and well groomed, and shall not interfere with the proper wearing of a uniform hat.
2) Mustaches: A short and neatly trimmed mustache of natural color may be worn.
3) Beards: Security Officers shall be clean- shaven when reporting for duty.
Growth of whiskers shall be permitted only for medical reasons. Security Officers with a medical condition, which precludes the security officer shaving, shall be assigned duties requiring the least possible public exposure.
4) Fingernails: Security Officers’ nails shall not extend more than ¼ inch from the tip of the finger or interfere in any way in the performance of the primary duties/task or with safe drawing of the firearm. Security Officers wearing fingernail polish shall use a conservative shade, without decals or ornamentation, and shall not detract from uniform appearance.
5) Identification: the Contractor shall furnish Identification insignia badges, shoulder patches, and nameplate.
6) Tattoos and other Body Art: The image we present to the community must be one of professionalism. Our appearance is of utmost importance. Security personnel assigned to the City may not have tattoos on the hands, face, neck and scalp. Regardless of their location, tattoos that are potentially offensive to the community, as determined by the City, are prohibited. Examples of offensive tattoos would include, but not be limited to, those which depict racial, sexual, 448
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discriminatory, gang related, or obscene language.
IX. CONTRACTOR SUPERVISION REQUIREMENTS
a. Operations Manager
The Contractor will assign Operations Manager to provide the required field supervision and training to the Security Officers and Guards under his/her supervision during the performance of their duties as required by the contract and post orders. The Oper ations Manager need not be present at all times but should ensure that Security Officers and Guards assigned to the City are well trained and effective in carrying out their assigned duties. This person will be the liaison to the City. The Operations Manager shall become the City’s primary contact person and be available as needed for the administration and effective functioning of the requested security services required in the Contract. City staff will have direct access to a manager or shift supervisor , on duty, 24- hours a day, seven days per week. Contract security company will provide phone numbers to City staff.
b. Duties:
The Contractor’s Operations Manager will conduct field supervision of security services and patrol coverage of all area sites and posts as specified and as needed. As a licensed and qualified Security Officer, the Operations Manager is responsible for the work assignments; training and performance of Security Officers assigned under his/her supervision to City facility/site locatio ns. Contractor will provide adequate supervision of Security Officers to ensure the guards are attentive at all times while on duty, and guards do not sleep or perform any other distracting task while on duty. Contractor will ensure their guards are properly uniformed, neat and professional in appearance, and courteous and professional in demeanor at all times while on duty.
c. City and Contractor Staff Meetings
Meetings between the City Manager or her/his designee and Contractor’s Operations Manager shall be scheduled on a bi -monthly basis, or as often as necessary, to discuss problems, discrepancy reports, and status of contract services. The Operations Manager shall meet regularly with the City Manager or her/his designee at least once a month or as often as necessary and as determined by the circumstances in the administration of the Contract.
The meetings will cover all matters regarding the Contract and related to operations, quality of services, contract compliance, changes in the scope of work, solutions to problems and discrepancies in the billing, invoices, charges, and other matters regarding the scope of work.
The Operations Manager shall address all contract matters on behalf of the Contractor.
But not limited to, the following : payroll, invoicing, assignments of personnel, disciplinary actions, contract performance, and non-performance, corrective actions, assessments and appeals for contract non- compliance, special assignments, quality assurances and controls, changes of scope of work and other matters of mutual interest or concern to the City and the Contractor.
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X. CONTRACTOR TRAINING REQUIREMENTS
a. Training Requirements
1) Security Officers: The Security officers shall be trained in security services.
The Security Officer should have in their possession the required permits, as listed in the License section of this Contract, during working hours and be properly licensed.
2) Operations Manager: The operations manager shall be trained in security services, guard personnel supervision and patrolling procedures of all assigned City facilities/sites and locations, and be properly licensed.
b. On-the-Job Training
Each Contractor’s Security Officer assigned to a City facility/site location shall receive: A minimum of eight (8) hours of on -the-job (OJT) training/orientation. Additional training beyond the 8 hours of OJT shall be provided at the assigned post by the Contractor as needed and at the Contractor’s expense. The Contractor’s Security Supervisor(s) shall attend the training, at the Contractor’s expense, to become aware and familiarized with the various City facilities, sites, and post orders.
The Contractor, when assigning new Security Officer(s) for assignment to City facilities/sites locations, shall also provide and assign an Operations Manager for training purposes. The Contractor’s Operations Manager shall remain for the time necessary for each job site assignment in order to train and test the new Contract Security Officer(s).
Training and testing will cover the knowledge of and compliance with the job site/facility’s work orders and the job requirements set forth as the minimum work and security service in accordance with the scope of work in the Contract.
c. Training Record
The contractor shall maintain a training record for each Security officer assigned to a City facility. The training record shall show, as a minimum, the employee’s name, date of employment, and the different ty pes of training provided. Such records shall be made available to the City Manager or his designee upon his request. The City Manager or her/his designee may, from time-to-time, monitor the conduct of such training.
XI . CONTRACTOR COMPLAINT PROCEDURE
a. Customer Complaints and Notifications
All complaints against contract security officers shall be directed in writing to the City Manager or her/his designee and notifications made to the Contractor. Generally, all complaints shall be resolved within twenty -four (24) hours upon receipt of the complaint.
However, the City Manager or his designee reserves the right to extend the length of time needed to investigate the complaint. Complaints include any report of dissatisfaction or poor service against a Contractor’s employee (received via telephone, letter, e -mail, fax, or in person), violation of policy/procedure, violation of law, or reported misconduct. The party initially receiving the complaint shall forward a memorandum, detailing the basis for the complaint to the City Manager or her/his designee, including all related official 450
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documents. When a complaint is received on the day preceding a holiday or weekend, it shall be processed on the next working day.
b. Documenting Complaints and Incidents
The Contractor shall complete a written memorandum, providing the names, addresses, and telephone numbers of all involved persons, including the complainant, witnesses, and the subject employee(s). The narrative portion of the memo shall include a description of events that led to the complaint, including date and time of occurrence, a list of all involved persons, location of occurrence, nature of the complaint allegation(s), and statements (written, tape- recorded, or other) made by involved persons including the subject employee(s).
c. Complaints Reported to the City
The City Manager or her/his designee shall notify the Contractor by telephone and/or written notification new complaints received and work in cooperation with the Contractor to resolve the complaint. The Contractor will notify the City Manager or her/his designee of the complaint disposition within sixteen (16) hours of receiving the complaint, unless an extension has been granted by the City Manager or his designee. Failure to respond to a complaint or comply with the provisions of this agreement shall be considered a violation of contract requirements.
d. Complaint Log
The City Manager shall designate the department who will serve as the primary contact for the security services personnel. The City assigned department shall maintain a log of all reported complaints and disposition.
e. Contract Personnel Complaint Investigation and Interview
The City Manager or her/his designee reserves the exclusive right to immediately interview and investigate any employees under the control or direction of the C ontractor, upon receiving any reported complaint or allegation of misconduct. Any employee who declines or refuses to participate in an interview or cooperate with an investigation conducted by the City Manager or her/his designee shall be ordered by the Contractor to cooperate with the City Manager or his designee. Failure of the Contractor to cooperate with the investigation and interview conducted by the City Manager or her/his designee is considered as non-complying with this contract requirement.
XII. EQUIPMENT AND UNIFORMS
a. Cell Phones
The Contractor shall furnish its Security Officers with cell phones, “direct connect” type capable system is preferable. Security officers will work with City of Lynwood Recreation and Community Services Depart ment to report park issues, violations, and maintenance problems and they are to respond to calls for assistance, and are to call for Sheriff or other emergency response as circumstances warrant.
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b. Related Equipment and Supplies
Contractor shall provide each security officer with flashlights, pens, pencils, contractor forms, and other related supplies and equipment necessary to perform their duties.
c. Vehicle (s) and Drivers
Contractor shall furnish a vehicle at all times for the on -duty security officer performing rover patrol that meets the following criteria:
1) Be clearly marked as a security patrol vehicle on the front, back, and both sides with the Contractor’s company name and/or logo.
2) Be equipped with emergency lighting systems, in accordance with California Highway Patrol, emergency road flares, and first aid kit. 3) Be cleaned and well-maintained in safe operating condition. 4) Vehicle shall be no more than six (6) years old and/or have a maximum mileage of 100,000 at any time during the agreement.
5) Contractor shall be responsible for all costs relating to the furnishing, operating and maintenance of the vehicle (s) designated for use by the on -duty security offices at the City of Lynwood.
6) Contractor will maintain vehicle maintenance and inspection records for all vehicles used to provide security services to the City of Lynwood, vehicles must also be properly licensed with current registration, and insured in accordance with State law.
d. Golf Carts
Golf carts used by the Contractor must comply with the following:
7) Be clearly marked as a security patrol cart with Contractor’s company name and/or logo.
8) Be equipped with a lighting system and first aid kit. 9) Be clean and well maintained in safe operating conditions.
e. Uniforms
The Contractor’s security service personnel shall wear Company issued uniforms at all times. These uniforms must clearly identify the name of the security Company and the name of the individual security guard. These uniforms must be cleaned and pressed. No rips or tears shall be allowed. Security officer (s) shall come equipped with proper clothing and footwear for outdoor conditions. Uniforms must fit properly. All uniforms shall be approved by the City. The City specifically reserves the right to remove any individual due to unsatisfactory appearance.
X III. SPECIAL PROVISION
a. Emergency Services
The Contractor shall provide guard services on an emergency basis at the request of the City Manager or his designee.
1) Emergency Personnel
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Emergency of both Unarmed/Armed services shall be considered and defined as the non-scheduled augmentation of security personnel from the basic complement of Security officers assigned to a post of City facility/site location.
Emergency Security Services officers assigned to City facilities, sites, and/or posts shall meet all the training qualifications and requirements specified in this RFP.
2) Emergency Coverage
In case of a need for emergency services, coverage shall be provided and scheduled in accordance with the terms and conditions as requested for non- scheduled needs and augmentation of Security Services Officers to meet emergency City security needs.
It will be the Contractor's duty and responsibility to provide security services for emergency coverage as required by the circumstances, in accordance with the set rates of the contract, for work approved and authorized by the City Manager or his designee only.
b. Contractor Transition and Cooperation
During Contract implementation, and during the Contract term, all contractors involved in any location coverage transition, shall fully cooperate and assist each other to facilitate a smooth changeover. Disputes, disagreements, and/or differences of opinions between the Contractors will be reviewed and resolved by the City Manager or her/his designee. Such decision is final and shall not be subject to further review.
XIV. GENERAL CONTRACT REQUIREMENTS
It is expressly understood that the contractor named in any contract entered into by the City is acting as an independent contractor and not as an agent or employee of the City of Lynwood.
a. Non-Exclusive Contract
The City does not warrant to contract exclusively with a single contractor to perform the services described herein.
b. No Guarantee of Usage
Any quantities listed in this RFP are estimated or projected and are provided for tabulation and information purpose only. No guarantee of quantities is given or implied by the City.
Contractor must furnish the City’s needs as they arise.
c. Default of Contract
The City of Lynwood shall hold the contractor responsible for any damage which may be sustained because of the failure or neglect of the contractor to comply with any term or condition listed herein. The City may, upon written notice to the contractor, cancel or rescind any or all items affected by such default and may procure the required services elsewhere without notice to the contractor. The prices paid by the City at the time such services are procured shall be considered the prevailing market prices. Any extra costs incurred by such default may be collected by the City from the contractor.
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d. Insurance
During the term of the Contract, the Contractor shall, at its own cost and expense, procure and maintain insurance as specified in the insurance requirements and acceptable to the City. Insurance “Acceptable to the City” shall be defined as a company admitted (licensed) to write insurance in California and having a Best’s Guide rating of A: VII or better.
1. Workers’ Compensation as required by the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit no less than $1,000,000 per accident for bodily injury or disease
2. General Liability Insurance - $2,000,000 per occurrence for bodily injury, personal injury, and property damage. If Commercial General Liability Insurance or other form with a general limit is used, either the general aggregate limit shall apply separate to this project/location or the general aggregate limit shall be twice the required occurrence limit.
3. Automotive Liability - $1,000,000 per accident for bodily injury and property damage.
Deductibles and Self -insured Retentions, or Similar Forms of Coverage Limitations or Modifications, must be declared by the policy and approved by the City of Lynwood.
All insurance policies required shall name as additional insured the City, its elected officials, officers, employees, attorneys and agents, and any other parties, including subcontractors, specified by City to be included.
The Contractor is encouraged to review details of insurance requirements as noted in the sample agreement, “Consulting Services Agreement”, General Terms and Conditions, Section 4 and contact its insurance carriers during the proposal stage to ensure t hat the insurance requirements can be met if selected for negotiation of a contract agreement.
e. Contract Payment
The Contractor shall invoice the Department or City on a bi -monthly basis. The City shall remit payment within forty (45) days of receipt and approval of each invoice. Contractor shall present the invoice to the designated department assigned by the City Manager:
( Recreation and Community Services Department)
City of Lynwood
11301 Bullis Road
Lynwood, CA 90262
1) Statements and Invoices
The Contractor shall prepare and submit to the City Manager or her/his designee, a bi- monthly invoice for work performed. Said invoice shall provide current charges and total year -to-date charges. Invoices shall be submitted with appropriate billing information including Purchase Order Number, the date of service, number of hours for each site and total hours assigned by the Contractor. Those invoices not acceptable to the City Manager or her/his designee shall be returned to the Contractor for correction and subsequent re-submittal for payment.
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a) Security Officer
The Contractor is required to provide as part of the invoice a breakdown list by location or City facility with the following information. A list of hours performed by the Security Officers (Armed and Unarmed) by date, day, and hours of coverage (starting time and ending time), total hours for the day, total hours for the month, and the name of the Security Officers providing the services.
b) Supporting Document
The Contractor is required to submit the Field Supervisor’s Daily Field Activity Reports (DFARs) along with invoices which identifies what locations were provided field supervision coverage.
f. General Conditions
The following are applicable Contract terms and conditions:
1) Contract Period
The City intends to award a professional service agreement for a term of two (2) years beginning November 2024, with the option to extend the Agreement for up to an additional three (3) one-year periods. The City reserves that right to negotiate the term of the Agreement once Contractor is selected.
2) Written Approvals with Post Orders
The Contractor shall only schedule, provide, or render any security services to any City Department, after necessary authorization in writing with post orders by the City Manager or his designee.
3) Contact with Contractor for Services
If the Contractor is contacted and receives a request for security services from any City Department, the Contractor shall not render any security services without receiving written approval with post orders from the City Manager or her/his designee and shall refer said City Department back to the City Manager or her/his designee.
*Contractor will not be paid for security services to any City site without prior written authorization, including post orders, by the City Manager or his designee.
4) Compensation
The pricing structure submitted with the written proposal shall be firm. However, the City reserves the right to negotiate a "best and final" price with the finalist(s).
5) Termination for Convenience
The City may terminate its agreement with the contractor at any time by giving at least fifteen (15) days notice in writing. If the agreement is terminated by the City, the 455
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contractor will be paid for the time provided and expenses incurred up to the termination date. No additional liability shall be assumed by the City.
6) Liability, Rights and Remedies
The City and/or User Department shall have no liability and vendor shall have no claim for any other loss, expense, or damages for such Contract discontinuance or termination. The provisions of the Contract shall be in addition to all other rights and remedies available to the City and/or User Department under law. The rights and remedies of the City set forth herein shall not be exclusive and are in addition to any other rights and remedies provided by law and under the Contract.
7) Conflict of Interests
Contractor covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Contractor under this Agreement, or which would conflict in any manner with the performance of its services hereunder. Contractor further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Contractor shall avoid the appearance of having any interest, which would conflict in any manner with the performance of its services pursuant to this Agreement. Contractor covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to City as a result of the performance of this Agreement. Contractor covenant under this section shall survive the termination of this Agreement.
8) Accounting and Financial Records
Accounting and financial records shall be maintained in accordance with generally accepted accounting principles and practices. All records shall be maintained, access shall be provided to the City during the entire term of the Contract, and for three (3) years after final payment by the City under the Contract. Unless the City gives written permission to the Contractor to dispose of said record prior to the three years.
9) Audits and Inspection of Records
After receipt of reasonable notice and during the Contractor's regular business hours, the City representatives or its agents can perform, as necessary; audits and inspection of records relative to the work performed under the Contract. The Contractor shall provide the City; its authorized representative(s) or agent(s); such access to the Contractor's records and facilities housing the records. As the City deems necessary to examine, audit, inspect, excerpt, photocopy or transcribe the Contractor's records relative to work performed, payroll, employee wages, benefits, contract expenses, and other documents relative to the contract requirements, terms and conditions performed under the Contract.
10) Changes
The City reserves the right to monitor and review the City-wide security service needs.
When necessary, the City Manager or her/his designee will contact the Contractor's Operations Manager to make any changes as required to amend, modify or delete specific Contract and post orders when such amendment, modifications or deletion is 456
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determined by the City Manager or her/his designee to be in the best interest of the City.
11) Holidays
The City shall have the right to request security services coverage on and during all holidays observed by the City. City holidays are as follows:
New Year's Day January 1
Dr. Martin L. King Jr. Day Third Monday in January
President’s Day Third Monday in February
Cesar Chavez Day March 31
Memorial Day Last Monday in May
Independence Day July 4
Labor Day First Monday in September
Veteran’s Day November 11
Thanksgiving (2 days) Fourth Thursday & Friday in November Christmas Day December 25
12) Binding Communication
Communication and information given by the City Manager or his designee or by his/her designated representative to the Contractor's Operations Manager shall be as binding as though given to the Contractor in person.
13) Contractor's Address and Legal Service
The address given in the proposal shall be considered the Contractor's mailing and legal address for certified mail delivery. This address shall be changed only by written notice to the City. The delivery of mail or communication documents addressed to the Contractor, or authorized representative, mailed to such address, depositing it in the United States Mail by regular, registered or certified mail with postage prepaid, shall constitute legal service thereof.
14) Occupational Safety and Health Act
The Contractor agrees that, for the purpose of being in compliance with the requirements of the Occupational Safety and Health Act of 1970, services performed for the City shall be deemed entirely within the Contractor's responsibility. The contractor shall take all necessary precautions for the safety of employees on the job and of the City's employees.
The Contractor will notify the City Manager or her/his designee promptly, in writing, if a charge of non- compliance with above Act has been filed against the Contractor in connection with contract security services.
15) Permits, Laws, Taxes and Regulations
The Contractor shall procure all permits and licenses including a Lynwood Business License: paying all charges, taxes and fees; and give all notices necessary and 457
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incidental, be they due and lawful. All costs thereof shall be deemed to be included in the prices proposed for the work under this Contract.
16) City's Responsibilities
The following are the City's responsibilities under the Contract:
a) Authority and Duties of City Manager or his designee
The City Manager or her/his designee shall represent the City in the operation and management of any contract resulting from this RFP. The City Manager or her/his designee may make temporary changes in assignments, tasks, task frequencies, or methods.
b) Authority and Duties of the Contract Coordinator
The City Manager or her/his designee may appoint an individual or individuals as City Contract Coordinator (Coordinator) to monitor and inspect the performance contracted of the security services work. The Coordinator is not authorized to revoke any requirements of the Contract. The Coordinator is authorized to call to the attention of the Contractor any non- performance of security services personnel for the work called under the Contract.
The Coordinator shall in no case act as a Foreman or perform any or other duties for the Contractor, nor interfere with the management of the work under Contract by the letter. Any advice given to the Contractor shall in no way be construed as Contract changes and binding to the City, or releasing the Contractor from fulfilling all requirements of the Contract.
c) Contractor’s Business Office
The City will provide, at no expense to the Contractor, assigned work areas/station, storage space and utilities, as reasonably necessary for the duties performed by the Contractor's security services personnel.
d) Change in Hours Assigned:
The City Manager or her/his designee will have the right to change the number of weekly routine security hours required at any site(s) by notifying the Contractor.
e) Changes, Additions, And Deletions to Work Schedule
As City security needs change or develop, the City, by written change order, may make changes, additions, and deletions in the Scope and Schedule of Work. Should any changes be made, the Contractor shall perform the work as changed and shall be paid for the actual quantity of work performed by such changes, whether increased or decreased.
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f) Labor Activity
If any strike, boycott, picketing, work stoppage, slowdown or other labor activity is directed against the Contractor by its employees or similar labor activity conditions are directed against the City by City employees, which result in the curtailment or discontinuation of services performed hereunder, the City shal l have the right, during said period to employ any means legally permissible under law to have the work performed.
g) City Sample Services Agreement
A copy of the City Sample Services Agreement is attached as “Attachment B.” Provisions listed above will be incorporated or added to the final Services Agreement.
XV. PROPOSAL INQUIRIES
The City understands that the proposers may have questions. All questions must be in written form and received by e-mail at [email protected] by 12:00 p.m. on Friday, August 30, 2024 addressed to Mr. Mark Flores, Director of Recreation and Community Services.
XVI. ADDENDA
Substantive changes to the requirements will be made by written addendum to this RFP. Any written addenda issued pertaining to this RFP shall be incorporated into the terms and conditions of any resulting Purchase Order and/or Agreement. The CITY shall not be bound to any modifications to or deviations from the requirements set forth in this RFP as the result of oral instructions.
XVII. SUBMITTAL INSTRUCTIONS
All proposals regarding this RFP are to be submitted to the City Clerk’s Office on or before the time of 3:00 p.m. Wednesday, September 25, 2024. F axed or e-mailed proposals or alternatives will not be accepted. NO EXCEPTIONS. Submit one (1) original and six (6) hard copies in a sealed envelope titled “RFP FOR SECURITY SERVICES TO THE CITY’S PARKS AND PUBLIC FACILITIES” to the address below:
MARIA QUINONEZ, CITY CLERK
CITY CLERK’S OFFICE
CITY OF LYNWOOD
11330 BULLIS ROAD
LYNWOOD, CA 90262
The proposal title must read ““RFP FOR SECURITY SERVICES TO THE CITY PARKS AND PUBLIC FACILITIES ”.”. NOTE: The current submittal date represents a tentative schedule of events. The CITY reserves the right to modify the date at any time, with appropriate notice to prospective Companies.
1. RFPs are to be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Emphasis should be concentrated on conformance to the RFP instructions, responsiveness to the RFP requirements, and on completeness and clarity of content. 459
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2. The proposal must be signed by the individual(s) legally authorized to bind the Companies.
3. If complete responses cannot be provided without referencing supporting documentation, such documentation must be provided with the proposal and specific references mad e to the tab, page, section and/or paragraph where the supplemental information can be found.
4. The CITY reserves the right to reject any or all proposals, or any item or part thereof.
The CITY shall not be liable for nor pay any cost incurred by respondin g firms relating to the preparation of proposals, submission of the proposal to the CITY, negotiating with the CITY any matter related to the proposer’s proposal, the making of presentations, and any other expenses incurred by the proposer prior to the date of award and execution of the contract. An explicit provision of the RFP is that any oral communication is not binding on the CITY’s proposal process or award of the contract.
5. The CITY reserves the right to withdraw this RFP at any time without prior notice, and the CITY makes no representations that any contract will be awarded to any proposer responding to this RFP.
6. RFP Tentative Schedule – All times are Pacific Standard Time.
7. Information in proposals shall become public property and subject to disc losure laws including but not limited to the California Public Records Act (Government Code Section 6250 et seq.). All proposals shall become property of the CITY. The CITY reserves the right to make use of any information or ideas not clearly designated as “proprietary”, “confidential” , or “trade secrets” as defined in Civil Code Section 3426.1(d). The CITY will use its best efforts to inform proposer of any request for disclosure of any such document. The CITY, shall not in any way, be liable or responsible for the disclosure of any such records including without limitation: those so marked if disclosure is deemed to be required by law or by an order of the Court.
8. No proposals received after the Deadline for Submission will be considered.
9. By submitting a proposal, the proposer represents that it has thoroughly examined and become familiar with the work required under the RFP and that it is capable of providing and performing quality work to achieve the CITY’s objectives.
10. The CITY reserves the right to negotiate modifications with any proposer as necessary to serve the best interest of the CITY. Further, the CITY reserves the right to waive, at its own discretion, any procedural irregularity, immaterial defects or other im proprieties, which the CITY deems reasonably correctable or that otherwise do not warrant rejection of the proposal. Though it is noted that any waiver will not excuse a proponent from fully complying with the requirements set forth in this RFP.
XVIII. EVALUATION AND SELECTION
Proposals will be evaluated by a committee comprised of representatives of the CITY 460
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established to review proposals after formal receipt. To receive proper consideration, the proposal must meet the requirements of this RFP. The evaluation process will provide credit only for those capabilities and advantages, which are clearly stated in the proposal. In other words, advantages, which are not stated, will not be considered in the evaluation process.
Companies whose submittals include a significant failure to comply with these qualification requirements will be dropped from the evaluation process.
Proposals shall be consistently evaluated based upon the following criteria:
• Adherence to the requirements called for under Attachment A “RFP Submittal Instructions” in the submittal of proposals; and completion and submittal of the following forms:
o ATTACHMENT C, Checklist
o ATTACHMENT D, Security Firm’s Certification
o ATTACHMENT E, Proposed Fee Schedule
o ATTACHEMNT F, Sample Certification if the Proposer is a Corporation o ATTACHEMNT G, Non-Collusion Affidavit
o ATTACHEMNT H, Organizational Chart
• Financial and manpower capability
• Experience in operating a similar type of security services • Management/Operations/Training/References
• Hourly Rates Sheet
• Suggested Timeline and Logistics
In addition to evaluation of written proposals offered, oral interviews and site visits may be requested. Proposers should note that the execution of any contract pursuant to this RFP is dependent upon approval of the Lynwood City Council at its sole discretion.
The City shall not be liable in any way for any cost incurred by an offer or in the preparation of its proposal in response to this RFP, nor for obtaining any Insurance Certificate and /or surety Bond.
The City reserves the right to reject any and all proposals, to waive any technicalities, informalities and irregularities, to accept or reject all parts of this proposal, to be the sole judge of the suitability of the proposals offered, to negotiate directly with one or more companies, award a contract to more than one company, to vary the terms of the approved proposal, and to award a contract to a qualified vendor, irrespective of whether such company provides the lowest bid.
XIX: BUSINESS LICENSE
1. The City of Lynwood Municipal Code (CLMC) requires all businesses operating within the CITY limits, including all contractors, to obtain a business license and pay business license tax prior to commencing business operations. If your business is based in the CITY, an Occupational Use Permit must be approved prior to obtaining a business license.
2. The CLMC requires that businesses obtain a license when they conduct any business activity with the CITY even if the business is located outside the CITY limits or you have a business license from another city.
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3. For the purposes of this RFP, a business license is required at the time the contract is awarded.
XX. RFP TIMELINE
The RFP will be released on Wednesday, August 7, 2024. It is the proposer’s responsibility to ensure that the most complete and current version of solicitation, including addenda, has been downloaded by the RFP deadline of Wednesday, September 25, 2024 by 3:00 p.m.
RFPs received after this deadline will not be accepted.
NOTE: The following dates represent a tentative schedule of events. The CITY reserves the right to modify these dates at any time, with appropriate notice to prospective Contractors.
TASK DATE/TIME
1) Release of RFP Wednesday, August 7, 2024
2) Pre-Proposal Meeting Wednesday, August 28, 2024 @ 10:00 a.m. 3) Deadline for Submitting Questions Friday, August 30, 2024 by 12:00 p.m. 4) Answers to All Questions Available Tuesday, September 3, 2024 5) Deadline for Submission of Proposals Wednesday, September 25, 2024 by 3:00 pm 6) Evaluation Period October 7 - 10, 2024
7) Selection of Contractor(s) On or about November 5, 2024 8) Anticipated Start Date Monday, November 18, 2024
XIX: ACRONYMS/DEFINITIONS
For purposes of this RFP, the following acronyms/definitions will be used:
Authorized Signature
Awarded Contractor
The individual(s) legally authorized to bind the Contractor.
The organization or individual that is awarded and has an approved contract with the City of Lynwood, California for the services identified in this RFP.
City The City of Lynwood and any department or agency identified herein.
Contractor/Firm/
Company
Organization or individual submitting a proposal in response to this RFP.
Department/Division City o f Lynwood Recreation and Community Services Department.
Evaluation Committee A committee comprised of representatives of the City of Lynwood established to review proposals submitted in response to the RFP, score the proposals, and select a Contractor.
May Indicates something that is not mandatory but permissible.
RFP Request for Proposal.
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Shall/Must Indicates a mandatory requirement. Failure to meet a mandatory requirement may result in the rejection of a proposal as non - responsive.
Should Indicates something that is recommended but not mandatory. If the Contractor fails to provide recommended information, the City of Lynwood may, at its sole option, ask the Contractor to provide the information or evaluate the proposal without the information.
Subcontractor Third party not directly employed by the Contractor who will provide services identified in this RFP.
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ATTACHMENT A
RFP SUBMITTAL INSTRUCTIONS
In order to facilitate review of the proposals, each proposer must follow the general format, outlined below, with respect to the proposal. Proposal packet binders are to be submitted in the order listed below. Proposal sections must be clearly labeled for easy review and reference.
Deviation from this format may be cause for rejection of a proposal.
A. Cover Letter: Include the specific person(s) or entity(ies), with contact names including addresses, telephone numbers and social security number or federal tax identification responding to the Request for Proposal. The letter is to be signed by an individual having proper authority to make the proposal.
B. Table of Contents: List all sections and corresponding page numbers.
C. Company Experience: Provide a narrative on the general overview of the proposer’s relevant experience in providing the scope of services being requested and of project(s) similar to this project in scope or size.
D. Management and Operations: Provide a narrative for management and operation of security services, including but not limited to supervising, scheduling, quality control, resolving conflicts, public relations, etc.
E. Company References: Provide a list of five clients and client contact persons and telephone numbers where past work performed by you on projects of a similar nature to this RFP. Provide a brief description of the work performed on each of the projects.
F. Training: Provide a narrative on the proposer’s new hire training requirements, the methods for instructing new officers, the subject areas or topics covered in the training and the contractor’s training philosophy. Also, include a narrative on training efforts in the areas of report writing, public speaking, customer focus, parking and traffic control, powers of arrest, legal powers and limitations, first aid, driver safety training, accident, fire protection and prevention, appearance and grooming standards.
G. Capability and Competency: Provide a narrative of the proposer’s financial and manpower capabilities to manage and operate security services pursuant to the Scope of Work. Prior to entering into an agreement with the City the selected security service firm will be required to submit documentation acceptable to the City Manager, establishing that it is financially solvent, such that it can reasonably be expected to perform the services required by this Agreement.
H. Proposal Fee Schedule: Complete copy of Attachment E, Proposal Fee Schedule. On a separate sheet of paper, provide an outline of the benefits package provided to employees of Contractor along with a detailed breakdown of every cost element included within each individual pricing on the Schedule. The prices are all inclusive; there are no reimbursable expenses. Finalist’s fee structure may be subject to negotiation.
I. Suggested Timeline and Logistics: This section shall include a brief narrative of the proposer’s timeline in assuming the security services responsibility upon award of the 464
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agreement and a brief narrative of the logistics involved in the transition.
J. Required Forms: Attach and complete all corresponding documents listed on the check list “Attachment C”.
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ATTACHMENT B
SAMPLE AGREEMENT
PROFESSIONAL SERVICES AGREEMENT
This agreement (“Agreement”) is made as of [Insert month and date] ____, [Insert Year] by and between the City of Lynwood, a municipal corporation ("City") and_______________ (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as a “Party” and collectively referred to as the “Parties.”
R E C I T A L S
WHEREAS, City desires to utilize the services of Consultant as an independent contractor to [insert brief description of work] as set forth in the Scope of Services attached hereto as Exhibit A; and
WHEREAS, Consultant represents that it is fully qualifi ed to perform such consulting services by virtue of its experience and the training, education and expertise of its principals and employees.
NOW, THEREFORE, in consideration of performance by the parties of the covenants and conditions herein contained, the parties hereto agree as follows:
1. Company's Scope of Services. The nature and scope of the specific services to be performed by Consultant are as described in Exhibit A.
2. Term of Agreement. This Agreement shall commence on [Insert month and date], [Insert year] (the “Commencement Date”) and shall remain and continue in effect until tasks described in Exhibit A are completed, but in no event later than [Insert Date], unless sooner terminated pursuant to the provisions of this Agreement.
3. Compensation.
A. City agrees to compensate Consultant for services under this Agreement in compliance with the schedule set forth in Exhibit A. Consultant shall submit proper monthly invoices in the form and manner specified by City. Each invoice shall include a monthly breakdown of all monthly services performed together with the hours spent on each service.
Consultant shall maintain appropriate and necessary documentation supporting the monthly invoices detailing the type of service provided. It shall be available for review by the City at all reasonable times upon request.
B. Total payment to Consultant pursuant to this Agreement shall not exceed ______________________________.
C. If at the request of the City, Consultant is required to incu r out of pocket expenses (including but not limited to, out-of-town travel and lodging) which are above and beyond the ordinary expenses associated with performance of this Agreement, Consultant shall be entitled to reimbursement of such expenses. Consultant shall only be reimbursed for those expenses which: (I) appear on Consultant’s monthly invoices; (II) are accompanied by a copy of the City’s 466
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written authorization for Consultant to incur such expenses; and (III) receipts documenting such expenses.
4. General Terms and Conditions. The General Terms and Conditions set forth in Exhibit B are incorporated as part of this Agreement. In the event of any inconsistency between the General Terms and Conditions and any other exhibit to this Agreement, the General Terms and Conditions shall control unless it is clear from the context that both parties intend the provisions of the other exhibit(s) to control.
5. Addresses.
City of Lynwood
City of Lynwood
11330 Bullis Road
Lynwood, CA 90262
Attn: Julian Lee, Interim City Manager
Company
[Insert Selected Consulting Firm]
Attn: [Insert Contact Name]
6. Exhibits. All exhibits referred to in this Agreement are listed here and are incorporated and made part of this Agreement by this reference.
Exhibit A – Scope of Services and Compensation Schedule Exhibit B – General Terms and Conditions
SIGNATURES ON FOLLOWING PAGE
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IN WITNESS WHEREOF, the parties have executed this Agreement as of the dates written below.
CITY
CITY OF LYNWOOD
By: ______________________________ ______________________ Jose Luis Solache, Mayor Date
CONSULTANT
[Insert Consultant Name]
By: _______________________________ ________________________ [Insert Consultant Name] Date
ATTEST:
By: ______________________________ ________________________ Maria Quinonez, City Clerk Date
APPROVED AS TO FORM:
By: ______________________________ ________________________ Noel Tapia, City Attorney Date
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EXHIBIT A
SCOPE OF WORK
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GENERAL TERMS AND CONDITIONS
1. Status as Independent Contractor.
A. Consultant is, and shall at all times remain as to City, a wholly independent contractor.
Consultant shall have no power to incur any debt, obligation, or li ability on behalf of the City of Lynwood or otherwise act on behalf of Lynwood as an agent. Neither the City of Lynwood nor any of its agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not, at any time, or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City of Lynwood.
B. Consultant agrees to pay all required taxes on amounts paid to Consultant under this Agreement, and to indemnify and hold City harmless from any and all taxes, assessments, penalties, and interests asserted against City by reason of the independent Consultant relationship created by this Agreement. In the event that City is audited by any Federal or State agency regarding the independent status of Consultant and the audit in any way fails to sustain the validity of a wholly independent Consultant relationship between City and Consultant, then Consultant agrees to reimburse City for all costs, including accounting and attorney's fees, arising out of such audit and any appeals relating thereto.
C. Consultant shall fully comply with the workers' compensation law regarding Consultant and Consultant’s employees. Consultant further agrees to indemnify and hold City harmless from any failure of Consultant to comply with applicable worker's compensation laws. City shall have the right to offset against the amount of any fees due to Consultant under this Agreement any amount due t o City from Consultant as a result of Consultant’s failure to promptly pay to City any reimbursement or indemnification arising under this Section 1.
D. Consultant represents to the City, and City relies on Consultant’s representations, that Consultant shall serve solely in the capacity of an independent contractor to the City. Neither the City nor any of its agents will have control over the conduct of Consultant or any of Consultant’s employees, except as otherwise set forth in the Agreement. Consultant may not, at any time or in any manner, represent that it or any of its agents or employees are in any manner agents or employees of the City. The City has no duty, obligation, or responsibility to the Consultant’s agents or employees, including the Affo rdable Care Act coverage requirements. Consultant is solely responsible for any tax penalties associated with the failure to offer affordable coverage to its agents and employees under the Affordable Care Act with respect to Consultant’s agents and employees. Consultant warrants and represents that the City will not be responsible and will not be held liable for issues related to Consultant’s status as an independent contractor, including Consultant’s failure to comply with Consultant’s duties, obligations, and responsibilities under the Affordable Care Act. Consultant further agrees to defend, indemnify, and hold the City harmless for any and all taxes, claims, and penalties against the City related to Consultant’s obligations under the Affordable Care Act.
2. Standard of Performance
Consultant shall perform all work to the highest professional standards and in a manner reasonably satisfactory to the City Manager or his/her designee. No additional or different tasks or services shall be performed by Consultant other than those specified in Exhibit A.
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3. Indemnification.
A. Consultant is skilled in the professional calling necessary to perform the services and duties agreed to be performed under this Agreement, and City is relying upon the skill and knowledge of Consultant to perform said services and duties.
B. City and its respective elected and appointed boards, officials, officers, agents, employees and volunteers (individually and collectively, "Indemnities") shall have no liability to Consultant or any other person for, and Consultant shall indemnify, defend, protect and hold harmless Indemnities from and against, any and all liabilities, claims, actions, causes of action, proceedings, suits, damages, judgments, liens, levies, costs and expenses of whatever nature, including reasonable attorneys' fees and disbursements (collectively "Claims"), which Indemnities may suffer or incur or to which Indemnities may become subject by reason of or arising out of any injury to or death of any person(s), damage to property, loss of use of property, economic loss or other loss occurring as a result of or allegedly caused by Consultant’s performance of or failure to perform any services under this Agreement or by the negligent or willful acts or om issions of Consultant, its agents, officers, directors, subcontractor, sub consultant or employees, committed in performing any of the services under this Agreement. Notwithstanding the foregoing, the provisions of this subsection shall not apply to Claims occurring as a result of the City’s sole negligence or willful acts or omissions.
C. Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth in this Section from each and every subcontractor, sub consultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required in this Section, Consultant agrees to be full y responsible according to the terms of this Section. Failure of the City to monitor compliance with these requirements imposes no additional obligations on City and will in no way serve as a waiver of any rights hereunder. This obligation to indemnify and defend Indemnities as set forth herein shall survive the termination of this Agreement and is in addition to any rights which City may have under the law. This indemnity is effective without reference to the existence or applicability of any insurance coverage which may have been required under this Agreement or any additional insured endorsements which may extend to City.
4. Insurance.
A. Without limiting Consultant’s indemnification of Indemnities pursuant to Section 3 of this Agreement, Consultant shall obtain and provide and maintain at its own expense during the term of this Agreement the types and amounts of insurance as described below:
(I) Consultant shall maintain Commercial General Liability Insurance with coverage at least as broad as Insurance Services Office Commercial General Liability Form CG 00 01 in an amount not less than $2,000,000 per occurrence, $4,000,000 general aggregate, for bodily injury, personal injury, and property damage. Defense costs must be paid in addition to limits. There shall be no cross- liability exclusion for claims or suits by one insured against another. The policy must include contractual liability that has not been amended. Any endorsement restricting standard ISO “insured contract” language will not be accepted.
(II) Consultant shall maintain Business Auto Coverage on ISO Business Auto Coverage Form CA 00 01 covering bodily injury and property damage for all activities of the Consultant 471
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arising out of or in connection with Work to be performed under this Agreement, including coverage for any owned, hired, non-owned or rented vehicles, in an amount not less than $1,000,000 combined single limit for each accident.
(III) Consultant shall maintain Workers’ Compensation Insurance (Statutory Limits) and Employer’s Liability Insurance with on a state approved policy form providing statutory benefits as required by law with employer’s liability limits no less than $1,000,000 per accident for all covered losses;
(IV) Consultant shall maintain Professional Liability or Errors and Omissions Insurance that covers the services to be performed in connection with this Agreement, in the minimum amount of $1,000,000 per claim and in the aggregate. Any policy inception date, continuity date, or retroactive date must be before the effective date of this Agreement and Consultant agrees to maintain continuous coverage through a period no less than three (3) years after completion of the services required by this Agreement.
B. City, its officers, officials, employees and volunteers shall be named as additional insureds on the policy(ies) as to commercial general liability and automotive liability.
C. All insurance policies shall be issued by an insurance company currently authorized by the Insurance Commissioner to transact business of insurance or is on the List of Approved Surplus Line Insurers in the State of California, with an assigned policyholders’ Rating of A- (or higher) and Financial Size Category Class VI (or larger) in accordance with the latest edition of Best’s Key Rating Guide, unless otherwise approved by the City’s Risk Manager.
D. All insurance policies shall provide that the insurance coverage shall not be non-renewed, canceled, reduced, or otherwise modified (except through the addition of additional insureds to the policy) by the insurance carrier without the insurance carrier giving City thirty (30) days' prior written notice thereof. Any such thirty (30) day notice shall be submitted to CITY via certified mail, return receipt requested, address ed to “Director of Human Resources & Risk Management,” City of Lynwood, 11330 Bullis Road, Lynwood, California, 90262. Consultant agrees that it will not cancel, reduce or otherwise modify said insurance coverage.
E. Consultant shall submit to City (I) insurance certificates indicating compliance with the minimum worker's compensation insurance requirements above, and (II) insurance policy endorsements indicating compliance with all other minimum insurance requirements above, not less than one (1) day pr ior to beginning of performance under this Agreement. Endorsements shall be executed on City’s appropriate standard forms entitled "Additional Insured Endorsement".
F. Consultant’s insurance shall be primary as respects the City, its officers, officials , employees and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees and volunteers shall be excess of Consultant’s insurance and shall not contribute with it.
G. Consultant agrees that if it does not keep the aforesaid insurance in full force and effect, and such insurance is available at a reasonable cost. City may take out the necessary insurance and pay the premium thereon, and the repayment thereof shall be deemed an obligation of Consultant’s and the cost of such insurance may be deducted, at the option of City, from payments due Consultant.
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5. Release of Information/Confidentiality.
A. Consultant in the course of its duties may have access to confidential data of City, private individuals, or employees of the City. Consultant covenants that all data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without written authorization by City. City shall grant such authorization if disclosure is required by law. All City data shall be returned to City upon the termination of this Agreement. Consultant, its officers, employees, agents, or subconsultants, shall not without written authorization from the City Manager, voluntarily provide declarations, letters of support, testimony at depositions, response to interrogatories, or other information concerning the work performed under this Agreement or relating to a ny project or property located within the City. Response to a subpoena or court order shall not be considered "voluntary" provided Consultant gives City notice of such court order or subpoena. Consultant’s covenant under this section shall survive the termination of this Agreement.
B. Consultant shall promptly notify City should Consultant, its officers, employees, agents, or subconsultants be served with any summons, complaint, subpoena, notice of deposition, request for documents, interrogatories, request for admissions, or other discovery request, court order, or subpoena from any person or party regarding this Agreement and the work performed thereunder. City retains the right, but has no obligation, to represent Consultant and/or be present at any deposition, hearing, or similar proceeding. Consultant agrees to cooperate fully with City and to provide the opportunity to review any response to discovery requests provided by Consultant.
However, City's right to review any such response does not imply or mean the right by City to control, direct, or rewrite said response
6. Ownership of Work Product.
A. Consultant shall maintain complete and accurate records with respect to sales, costs, expenses, receipts, and other such information required by the City that relate to the performance of services under this Agreement. Consultant shall maintain adequate records of services provided in sufficient detail to permit an evaluation of services. All such records shall be maintained in accordance with generally accepted accounting principles and shall be clearly identified and readily accessible. Consultant shall provide free access to the representatives of the City or its designees at reasonable times to such books and records; shall give the City the right to examine and audit said books and records; shall permit the City to make transcripts therefrom as necessary; and shall allow inspection of all work, data, documents, proceedings, and activities related to this Agreement.
Such records, together with supporting documents, shall be maintained for a period of three (3) years after receipt of final payment.
B. Upon completion of, or in the event of termination or suspension of this Agreement, all original documents, designs, drawings, maps, models, comput er files, surveys, notes, and other documents prepared in the course of providing the services to be performed pursuant to this Agreement shall become the sole property of the City and may be used, reused, or otherwise disposed of by the City without the permission of the Consultant. With respect to computer files, Consultant shall make available to the City, at the Consultant's office and upon reasonable written request by the City, the necessary computer software and hardware for purposes of accessing, compiling, transferring, and printing computer files.
7. Conflict of Interest.
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A. Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder.
Consultant further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, Consultant shall avoid the appearance of having any interest which would conflict in any manner with the performance of its services pursuant to this Agreement.
B. Consultant covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to City as a result of the performance of this Agreement, or the services that may be procured by the City as a result of the recommendations made by Consultant’s covenants under this section shall survive the termination of this Agreement.
8. Termination. Notwithstanding any other provision, this Agreement may be duly terminated at any time by the City at its sole discretion with or without cause by serving upon the consultant at least ten (10) days prior wr itten notice (“Notice of Termination”). Upon receipt of said notice, the Consultant shall immediately cease all work under this Agreement, unless the notice provides otherwise. Unless expressly agreed upon in writing by the City, the City shall not be obligated to pay for any services rendered nor any costs or expenses paid or incurred after the date of termination.
The effective date of termination shall be upon the date specified in the written Notice of Termination.
Consultant agrees that in the event of such termination, Consultant must refund the City its prorated share, except for services satisfactorily rendered prior to the effective date of termination.
Immediately upon receiving written Notice of Termination, Consultant shall discontinue performing services, preserve the product of the services and upon payment for services, turn over to City the product of the services in accordance with written instructions of City.
In the event this Agreement is terminated pursuant to this Section, the City shall pay to Consultant the actual value of the work performed up to the time of termination, provided that the work performed is of value to the City. Upon termination of the Agreement pursuant to this Section, the Consultant will submit an invoice to the City.
9. Personnel. Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services under this Agreement. All of the services required under this Agreement will be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant’s services under this Agreement, but City reserves the right, for good cause, to require Consultant to exclude any employee from performing services on City's premises.
10. Non-Discrimination and Equal Employment Opportunity.
A. Consultant shall not discriminate as to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation, in the performance of its services and duties pursuant to this Agreement, and will comply with all rules and regulations of City relating thereto. Such nondiscrimination shall include but not be limited to the following: employment, upgrading, demotion, transfers, recruitment or recruitment advertising; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
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B. Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition, or sexual orientation.
C. Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials.
11. Assignment. Consultant shall not assign or transfer any interest in this Agreement nor the performance of any of Consultant obligations hereunder, without the prior written consent of City, and any attempt by Consultant to assign this Agreement or any rights, duties, or obligations arising hereunder shall be void and of no effect.
12. Performance Evaluation. For any Agreement in effect for twelve months or longer, the City Manager may require a written annual administrative performance evaluation within ninety (90) days of the first anniversary of the effective date of this Agreement, and each year thereafter throughout the term of this Agreement. The work product required by this Agreement shall be utilized as the basis for review, and any comments or complaints received by City during the review period, either orally or in writing, shall be considered. City shall meet with Consultant prior to preparing the written report. If any noncompliance with the Agreement is found, City may direct Consultant to correct the inadequacies, or, in the alternative, may terminate this Agreement as provided herein.
13. Compliance with Laws. Consultant shall keep itself informed of State, Federal and Local laws, ordinances, codes and regulations which in any manner affect those employed by it or in any way affect the performance of its service pursuant to this Agreement. Consultant shall at all times comply with such laws, ordinances, codes and regulations. The City, its officers and employees shall not be liable at law or in equity occasioned by failure of Consultant to comply with this Section.
14. Licenses. At all times during the term of this Agreement, Consultant shall have in full force and effect all licenses (including a City business license) required of it by law for performance of the services hereunder.
15. Non-Waiver of Terms, Rights and Remedies. Waiver by either party of any one or more of the conditions of performance under this Agreement shall not be a waiver of any other condition of performance under this Agreement. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default.
16. Attorney's Fees. In the event that either party to this Agreement shall commence any legal or equitable action or proceeding to enforce or interpret the provisions of this Agreement, the prevailing party in such action or proceeding shall be entitled to recover its costs of suit, including reasonable attorney's fees and costs, including costs of expert witnesses and Consultant.
17. Notices. Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on (a) the day of delivery if delivered by hand during Consultant regular business hours or by facsimile before or during Consultant regular business hours; or (b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set forth in 475
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the Agreement, or to such other addresses as the parties may, from time to time, designate in writing pursuant to the provisions of this section.
18. Governing Law. This Agreement shall be construed and interpreted both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Los Angeles, State of California. However, the Parties may agree to submit any dispute to non-binding arbitration.
19. Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed to be the original, and all of which together shall constitute one and the same instrument.
20. Severability. If any provision or any part of any provision of this Agreement is found to be invalid or unenforceable, the balance of this Agreement shall remain in full force and effect.
21. Entire Agreement. This Agreement, and any other documents incorporated herein by specific reference, represents the entire and integrated agreement between Consultant and City.
This Agreement supersedes all prior oral or written negotiations, representations or agreements.
This Agreement may not be amended, nor any provision or breach hereof waived, except in a writing signed by the Parties which expressly refers to this Agreement. Amendments on behalf of the City will only be valid if signed by the Mayor and attested by the City Clerk.
22. Authority. The person or persons executing this Agreement on behalf of Consultant warrants and represents that he/she has the authority to execute this Agreement on behalf of Consultant and has the authority to bind Consultant to the performance of its obligations hereunder.
23. Force Majeure. A Party’s performance of any obligation under this Agreement shall be suspended if, and to the extent that, the Party is unable to perform because of any event of Force Maj eure. In any such event, the Party unable to perform shall be required to resume performance of its obligations under this Agreement upon the termination of the event or cause that excused performance hereunder. “Force Majeure” herein means an event which is beyond the reasonable control of a Party, including without limitation, (a) acts of God including flood, fire, earthquake, hurricane or explosion, pandemic; (b) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (c) government order or law that prevents either Party from performing its obligations as set forth in this Agreement; (d) actions, embargoes or blockades in effect on or after the date of this Agreement; (e) action by any governmental authority that prevents either Party from performing its obligations as set forth in this Agreement; (f) national or regional emergency; (g) strikes, labor stoppages or slowdowns or other industrial disturbances, other than those involving the affected parties employees; (h) shortage of adequate power or transportation facilities.
Neither Party shall be liable for any delay or default in, or failure of, performance resulting from or arising out of any Force Majeure event, and no such delay, default i n, or failure of performance shall constitute a breach by either Party hereunder. Where a Force Majeure event gives rise to a failure or delay in either Party performing its obligations under this Agreement (other than obligations to make payment), those obligations will be suspended for the duration of the Force Majeure event. A Party who becomes aware of a Force Majeure event which gives rise to, or which is likely to give rise to, any failure or delay in performing its obligations under this Agreement, will forthwith notify the other and inform the other of the period for which it is estimated 476
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that such failure or delay will continue. The affected Party shall take reasonable steps to mitigate the effects of the Force Majeure event.
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ATTACHMENT C
CHECKLIST
REQUEST FOR PROPOSALS FOR
SECURITY SERVICES TO THE CITY PARKS AND PUBLIC FACILITIES
SUBMIT THIS PROPOSER’S CHECKLIST WITH YOUR PROPOSAL DOCUMENTS.
Proposer shall complete and submit all documents marked with an “Υ” in the “REQUIRED” column for bids to be responsive. Documents required on the checklist but not included may render your proposal nonresponsive.
REQUIRED DOCUMENTS
Υ 1. PROPOSAL (SEE ATTACHMENT B, RFP SUBMITTAL INSTRUCTIONS) 1) Cover Letter
2) Table of Contents
3) Company Experience
4) Management and Operations
5) Company References
6) Training
7) Capability & Competency
8) Proposed Fee Schedule
9) Suggested Timeline and Logistics
Υ 2. “ATTACHMENT D” SECURITY FIRM’S CERTFICATE
Υ 3. “ATTACHMENT E” PROPOSAL FEE SCHEDULE
Υ 4. “ATTACHMENT F” SAMPLE CERTIFICATION IF THE PROPOSER IS A
CORPORATION
Y 5 “ATTACHMENT G” NON-COLLUSION AFFIDAVIT
Y 6. “ATTACHMENT H” ORGANIZATIONAL CHART
SUBMITTED BY:
Name of Company__________________ Contact Name
Address
Phone No._______________________ E-Mail_
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ATTACHMENT D
SECURITY FIRM’S CERTIFICATION
By my signature on this proposal I certify, under penalty of perjury, that the foregoing statements, pages ______ and those contained herein are true and correct.
REQUEST FOR PROPOSAL SUBMITTED BY:
Please follow instructions for each line, as explained
Line (1)
( )
( )
Bidding Firm Phone Fax
Line (2)
Character of Name in Line 1
Line (3)
Address
Line (4)
Name of Person Authorized to Sign Proposal/Signature
INSTRUCTIONS FOR SIGNATURE PAGE
CORPORATIONS: INCLUDE ACKNOWLEDGEMENT OF SIGNATURE BY NOTARY IN CORPORATE FORM (See Line 4(a), of next page)
INDIVIDUALS, PARTNERSHIPS OR JOINT VENTURES: INCLUDE ACKNOWLEDGEMENT OF SIGNATURE BY NOTARY.
LINE1: The name of the Proposal must be the same as that under which a license is issued, if a license is required. If the Proposer is a corporation, enter the exact name of the corporation under which it is incorporated; If Proposer is an individual, enter name; If Proposer is an individual operating under a trade name, enter name and dba (trade name in full); if a partnership, enter the correct trade style of the partnership; if a joint venture, enter exact name of entities joining in the venture.
LINE 2: Identify here the character of the name shown under (1) i.e., corporation (including state of incorporation), individual, partnership, or joint venture.
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LINE 3: Enter the address to which all communications and notices regarding the proposal and any contract awarded hereunder are to be addressed.
LINE 4: See selections below:
a) If the Proposer is a corporation, the proposal must be signed by an officer or employee authorized to sign contracts on behalf of the corporation evidenced by inclusion of one of the following certified by the secretary of the corporation (same certification attached): a copy of the secretary of the corporation (same certification attached): a copy of the Articles of Incorporation, a copy of the Bylaws, a copy of the Board Resolution or Minutes authorizing the officer or employee to sign contracts. A notary must acknowledge the signature of the officer or employee who signs the proposal in the corporate form.
b) If the Proposer is an individua l, he/she must sign the proposal, or if the Proposal is signed by an employee or agent on behalf of the Proposer, a copy of power of attorney must be on file with the City of Lynwood prior to the time sent for the opening of the bids or must be submitted with the proposal. Any signature must be acknowledged by a notary.
c) If the Proposer is a partnership, the proposal must be signed by all general partners; or by a general partner(s) authorized to sign contracts on behalf of the partnership; or by a general partner(s) authorized to sign contracts on behalf of the partnership evidenced by inclusion of either a copy of the Partnership Agreement or a recor ded Statement of Partnership. All signature(s) must be acknowledged by a notary.
d) If the Proposer is a joint venture, the proposal must be signed by all joint venturer(s); or by a joint venturer(s) authorized to sign contracts on behalf of the joint venture evidenced by inclusion of either a copy of the Joint Venture Agreement or a recorded Statement of Joint Venture; and if the joint venturer(s) is a corporation or a partnership signing on behalf of the Joint Venture, then Paragraphs (a) and (c) above apply respectively. All signature(s) must be acknowledged by a notary.
e) Where Proposer is a partnership or a corporation, the names of all other general partners, or the names of the president and secretary of the corporation, and their business addresses must be typewritten below:
NAMES ADDRESS
1)
2)
3)
4)
NOTE: All addresses must be complete with street number, City, State and Zip Code.
480
46 City of Lynwood RFP Resolution No. 2024.037
August 7, 2024
ATTACHMENT E
PROPOSAL FEE SCHEDULE
Provide your pricing in the appropriate space in the tables below to perform the Work as described in the Scope of Work in this RFP. The hourly rates provided would be for Year 1 and 2 of this contract. In the renewal years of the contract, the Security Guard hourly rates shall be adjusted by the percentage change between November 2026 and November 2030. Average Hourly Earnings for Production Workers in "Services" as published by the Bureau of Labor statistics of the U.S. Department of Labor.
On a separate sheet of paper, provide an outline of the benefits package provided to employees of Contractor along with a detailed breakdown of every cost element included within each individual pricing on this Schedule.
Lynwood City Park and Facilities (Regular Patrol Services):
This is the agreed -to rate for work required for normal regular patrol coverage, including holidays, and extra coverage requirements.
Year 1
Billable
Hourly Rate
Year 2
Billable
Hourly Rate
Hourly Billing Rate (Unarmed)
Hourly Billing Rate (Armed)
Overtime/Holiday Services Billing Rate (Unarmed)
Overtime/Holiday Services Billing Rate (Armed)
Special Events and Private Rentals:
This is the agreed-to rate for work as required for special events and private facility rentals.
Year 1
Hourly Rate
Year 2
Hourly Rate
Hourly Billing Rate (Unarmed)
Hourly Billing Rate (Armed)
Additional Security Guard Services as assigned by the City:
This is the agreed -to rate for work beyond the normal regular scope of hours, and for emergencies and for services
performed at a location separate from the regular service locations on an as needed basis.
Year 1
Hourly Rate
Year 2
Hourly Rate
Hourly Billing Rate (Unarmed)
Hourly Billing Rate (Armed)
Overtime/Holiday Services Billing Rate (Unarmed)
Overtime/Holiday Services Billing Rate (Armed)
481
47 City of Lynwood RFP Resolution No. 2024.037
August 7, 2024
Optional Security Services:
This is the agreed -to rate for work as required for Security Officer responsible for responding to all gener al duties and responsibilities as contained in this RFP and additionally have a liaison relationship with local emergency response agencies and local Homeless Service Agencies.
Year 1
Hourly Rate
Year 2
Hourly Rate
Hourly Billing Rate (Unarmed)
Hourly Billing Rate (Armed)
Overtime/Holiday Services Billing Rate (Unarmed)
Overtime/Holiday Services Billing Rate (Armed)
The person signing this Proposal Fee Schedule must be a legal representative of the firm authorized to bind the firm to an agreement in the event of the award.
Representative Signature:
Representative Name
Representative Title:
Dated:
ALL QUOTATIONS MUST BE SIGNED
482
48 City of Lynwood RFP Resolution No. 2024.037
August 7, 2024
ATTACHMENT F
SAMPLE CERTIFICATION IF THE PROPOSER IS A CORPORATION
I, certify that I am the secretary of the corporation named (Name)
herein; that who signed this proposal on behalf of the (Name)
corporation, was then within the of the
(Title)
said corporation; that said proposal is scope of its corporate powers and was duly signed
for and on behalf of said corporation by authority of its governing body, as evidenced by
the true and correct copy of the , which is
(Name of Corporate)
attached.
(Document)
By: __________________________________________
Name: _______________________________________
Title: _______________________________________
Secretary: ____________________________________
Date: ________________________________________
483
49 City of Lynwood RFP Resolution No. 2024.037
August 7, 2024
ATTACHMENT G
NON-COLLUSION AFFIDAVIT
NON-COLLUSION AFFIDAVIT
(Security Consultant Services RFP)
During the period immediately following the issuance of eth RFP, continuing through the deadline to submit the RFP, and further until a recommendation has been submitted to the City Council, consultants are not to contact City staff outside of the identifi ed staff contact, Mark Flores, Director of Recreation regarding this RFP. Consultants are expressly prohibited from speaking with the City Council on this specific matter. Any such contact will result in the immediate disqualification of any respondent from consideration.
All questions or request for clarification or additional information shall be submitted to [email protected]
Dated: ___________________________
Proposer: ________________________
Authorized Signature: ______________
NOTARY
Subscribed and sworn before me this_______ of______________, 2024
My commission expired ____________________________, 2024
484
50 City of Lynwood RFP Resolution No. 2024.037
August 7, 2024
ATTACHMENT H
ORGANIZATIONAL CHART
PROPOSER’S ORGANIZATIONAL CHART
Number of Employees and Average Years of Experience in Security Services
Number of
Employees
Average Years of Experience
Management
Supervisory
Officers
Others (describe)
AND
ATTACH COPY OF PROPOSER’S
ORGANIZATIONAL CHART
485
51 City of Lynwood RFP Resolution No. 2024.037
August 7, 2024
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