June 3, 2025
Julian Lee
Interim City Manager
City of Lynwood
11330 Bullis Road
Lynwood, CA 90262
RE: Request for an Extension of the Professional Services Agreement with MuniEnvironmental, under the same terms and conditions, pursuant to Section 2. “Term of Agreement”.
Dear Mr. Lee:
MuniEnvironmental (“ MUNI”) is honored to have served as the municipal solid waste services technical advisor to the City of Lynwood (“City”) over the past approximately two and one half years (2 ½), and is sincerely grateful for this opportunity to discuss a possible extension of the Professional Services Agreement (“Agreement”), dated September 20, 2022, by and between the City and MUNI.
The original term of the Agreement was for a duration of three (3) years, commencing on October 1, 2022 and terminating on June 30, 2025, unless extended by mutual consent of the parties.
For the purpose of clarification, the actual term fell short of a full three (3) year period, as originally intended, due to the fact that the Agreement’s off-cycle commencement date did not coincide with the beginning of the City’s fiscal year/budget cycle (July 1
st); hence, to synchronize with the July 1 – June 30 budget cycle, the termination date was realigned with June 30th, thereby shortening the term’s duration.
Section 2 of the Agreement, states, in part, the following:
“On or before fifteen (15) days prior to the Termination Date, Consultant [MuniEnvironmental] and City shall meet to discuss this Agreement and its possible extension or modification.” Therefore, pursuant to Section 2 of the Agreement, MUNI respectfully request s that the City consider extending the Agreement , under the same terms and conditions , prior to June 30, 2025, so as to ensure continuity and prevent a lapse from occurring. Based on our understanding, the Extension would be for a term of one (1) year, commencing on July 1, 2025 and terminating on June 30, 2026; and the compensation woul d not exceed One Hundred Fifty Thousand ($150,000).
MUNI believes that this engagement is mutually beneficial to the parties, as it has delivered multiple successes critical for the City as it relates to compliance with CalRecycle’s regulatory mandates, concurrently upholding the structural integrity of the City’s municipal solid waste collection services, which are vital to the public health and safety.
High quality and reliable, yet cost effective, municipal solid waste collection and recycling service s for all residents and business operators in the city is inarguably a quality of life issue; ensuring the well-being of the citizens of Lynwood is paramount, and MUNI is proud to have joined with the City in this pursuit. 179
City of Lynwood
Request for an Extension of the
Agreement with MuniEnvironmental
June 3, 2025
The following few examples are emblematic of the positive results generated under MUNI’S engagement with the City from its 2019 inception, which predates the Agreement, to the present:
CalRecycle SB 619 Corrective Action Plan (“CAP”)
To assist cities in avoiding penalties for non-compliance with the waste reduction goals of SB 1383 that took effect on January 1, 2020, the Legislat ure adopted SB 619 to create a mechanism called a Notification of Intent to Comply (“NOIC”).
Under SB 619, a jurisdiction may secure relief from administrative/civil penalties for continuing violations of 2022 regulations and may qualify for a broader/longer-term regulatory compliance path, including suspended penalties through a Corrective Action Plan (“CAP”).
With the assistance of MUNI and its team, the City submitted its draft NOIC to CalRecycle on 2/17/22, and after a protracted review process spanning many months, CalRecycle issued a formal CAP for the City of Lynwood, thereby providing a path to compliance and essential relief from exposure to severe administrative/civil penalties from the State.
During the approximately twelve ( 12) month “oversight period” established by the CAP, the City participated in five (5) separate meetings with CalRecycle, held on a bimonthly basis, to review interim progress updates per the following schedule: Meeting 1: During April 2023; Mtg. 2/June; Mtg. 3/August; Mtg. 4/October; and Mtg. 5/December.
MUNI was charged with coordinating and/or overseeing the remedial actions, as well as the reporting thereof, required under the CAP, enumerated as seventy-seven (77) demonstrable, discrete tasks to be completed by the City within the oversight period.
With precision and diligence, on schedule and to the satisfaction of CalRecycle’s enforcement team , the City successfully completed all tasks outlined in the CAP.
OVERSIGHT PERIOD SUCCESSFULLY CONCLUDED
In a letter from Ashlee M. Yee, Branch Chief at CalRecycle’ s Jurisdiction and Agency Compliance and Enforcement Branch (“JACE”), dated 7/3/24, the City received formal notification that the oversight period has concluded, provisionally returning the City to compliance with SB 1383 regulations, subject to maintaining all programs and services documented and/or implemented during the oversight period.
In the same correspondence, the City was advised that within twelve (12) months thereof, JACE will initiate a compliance evaluation to ensure that ongoing performance standards have been met.
In a more recent letter from CalRecycle, dated 4/14/25, the City was formally notified of JACE’s intent to conduct this compliance evaluation in the very near future. On May 5th, the City received a follow- up letter, requesting the first tranche of data, on which the process would begin.
MUNI is now in the midst of compiling this data to guarantee a timely response by the City.
180
City of Lynwood
Request for an Extension of the
Agreement with MuniEnvironmental
June 3, 2025
CalRecycle Electronic Annual Report (“EAR”) Support
Pursuant to 14 CCR § 18994.2 – Jurisdiction Annual Reporting, on or before August 1 each year, a jurisdiction shall report for the period covering the entire previous calendar year.
The City is a member of the LARA (the Los Angeles Regional Agency), which is a consortium of eighteen large and small member cities in Los Angeles County that was formed for the primary purpose of preparing and submitting a single, joint EAR document on behalf of its member cities.
Under PRC § 40970 (Regional Agencies), jurisdictions may report jointly by pooling their data with adjacent jurisdictions within the confines of a CalRecycle approved Joint Powers Authority (“JPA”) to facilitate the reporting process and minimize redundancy.
While this collaborative effort may streamline the actual uploading of data into CalRecycle’s online database, the solid waste program and disposal data compilation process for each member jurisdiction is identical to that of any other jurisdiction reporting independently.
MUNI is pleased to perform the custodial task of maintaining current records of all solid waste program/disposal data, by which it formulates the City’s dataset for transfer to LARA.
SB 1383 Recordkeeping – MuniReporting, LLC
To accommodate CalRecycle’s recordkeeping requirements under 14 CCR § 18984.4, MUNI has engineered a cloud-based recordkeeping platform with readily accessible data storage housed within a digital ecosystem that offers valuable reporting and analytical tools for its client-agencies.
MUNI provides this proprietary system as a direct, no cost benefit, to track the citywide waste diversion program’s compliance with the mandates of SB 1383, based on current data and key metrics.
Lynwood had previously licensed the Minerva Reporting Software at an annual cost of approximately $12,000 (in addition to unspecified, ongoing data entry and program maintenance fees), for use by the City’s administrative Staff.
MUNI’S digital reporting platform that stores historical as well as current data by virtue o f regular database updates, effectively negates the need to license costly, retail reporting software, such as Minerva, thereby saving the City thousands of dollars annually.
SB 1383 Local Assistance Grant Program Application/Reporting Beginning with the initial funding cycle for FY 2021/2022 (OWR1), MUNI has been integral in assisting the City to secure grant funding under the SB 1383 Local Assistance Grant Program.
MUNI’s duties have included the preparation and submittal of the City’s grant applications, which were based on budget allocations unique to Lynwood, yet consistent with CalRecycle imperatives, such as SB 1383 program enforcement and education/outreach for Tier 1 and Tier 2 food waste generators.
181
City of Lynwood
Request for an Extension of the
Agreement with MuniEnvironmental
June 3, 2025
The SB 1383 Local Assistance Grant Program is now in its second funding cycle ; i.e., FY2022/2023 (OWR4), wherein the City was awarded $179,579. During each two (2) year grant cycle, bi-annual reporting is mandatory to account for expenditures incurred during the preceding six (6) month period.
The reporting Milestones for OWR4 are as follows:
MUNI is proud to have been entrusted by the City with the task of compiling , configuring, and submitting cost data and related back-up documentation according to the dataset parameters unique to the State’s online Grant Management System (“GMS” reporting platform).
Under grant cycles OWR1 and OWR4, MUNI’ s assistance has resulted in complete and timely submittals, inclusive of critical payment request filings, uploaded in accordance with GMS specifications, upholding the City’s good standing with the State, as an awardee of the program.
MUNI recently completed Progress Report 2, and will soon begin the process of filtering cost data in preparation for Progress Report 3, due on 10/1/25, as indicated above.
Franchise Compliance/Quality Control
MUNI’S scope-of-services include Franchisee performance monitoring as well as site inspections.
WRI’s Restated Franchise Agreement, implemented on 11/1/21, provides the framework by which rates and updated services are reviewed regularly, from both the field and desktop, to prevent service lapses, rate discrepancies, and/or administrative/financial shortfalls, such as those recounted below:
• Annual CPI Rate Adjustment Requests
Under § 24.4 of the Franchise Agreement, at least sixty (60) days prior to charging Customers any rate increases due to a change in the CPI, WRI must provide the City Manager notice of the pending rate change; within thirty (30) days thereof, City must disallow the rate increase based deficiencies identified in the request; or, by default, allow the rate increase to proceed, subject to a thirty (30) day advance notice to customers per GOV § 53756(d).
MUNI is pleased to have been entrusted with the responsibility of vetting such requests. For each of the last three (3) consecutive years, MUNI has identified a multitude of mathematical miscalculations and structural errors in WRI’s requests.
In WRI’s most recent increase request (FY2025/2026 rates ), albeit somewhat minor in dollar amounts, MUNI’s vetting process identified twenty-five (25) rate miscalculations that required immediate correction before the rate increase request can be considered for final approval; accordingly, WRI made these corrections and the City then authorized the rate increase to proceed.
Based on this unfortunate pattern of financial irregularity on the part of the Franchisee, this vetting process has become crucial to prevent the overcharging of Lynwood’s rate payers.
182
City of Lynwood
Request for an Extension of the
Agreement with MuniEnvironmental
June 3, 2025
• Potential Loss of WRI’s Annual Contribution [$100,000] to Community Programs
Pursuant to § 11.5 of the Restated Franchise Agreement, WRI is bound to remit an annual payment of $100,000 to the City for worthwhile programs and events benefiting the community.
While conducting its regular franchise compliance reviews to ensure the Franchisee is satisfactorily performing according to the terms and conditions of the Restated Franchise Agreement, MUNI uncovered that WRI had again defaulted on its financial obligations to fund an Annual Contribution to Community Programs, as stipulated in the new contract, which was adopted by the City Council in November of 2021, in part, to rectify, if not forgive, such lapses on the part of WRI.
Once the non-payment was verified by the City’s Finance Department, WRI’s liability to the City had exceeded $150,000. The City quickly seized the oversight and formalized a demand for full payment. Under the short term payment arrangement extended to WRI , the City recovered the entire sum it was owed—full satisfaction.
The Finance Department now actively enforces monetary aspects of the Restated Franchise Agreement; consequently, the systemic issue is resolved and WRI maintains current status.
We believe that the above examples lay a foundation for the ongoing success of Lynwood’s citywide solid waste program, as well as this partnership.
It is an honor to be of continued service to the City of Lynwood.
I wish to thank you again for your confidence in our firm, and for your confidence and trust in me, personally.
Respectfully,
John A. Telesio
Senior Vice President | MuniEnvironmental, LLC
[email protected]
CC: Jeff A. Duhamel
President/CEO | MuniEnvironmental, LLC
[email protected]
183
1 RESOLUTION NO. ____
A RESOLUTION OF THE CI TY COUNCIL OF THE CI TY OF LYNWOOD
APPROVING A FIRST AMENDMENT TO THE AGREEMENT BETWEEN
THE CITY OF LYNWOOD AND MUNIENVIRONMENTAL TO PROVIDE
SOLID WASTE MANAGEMENT TECHINCAL SUPPORT SERVICES
WHEREAS, over the years, CalRecycle has imposed unfunded mandates onto cities and counties to divert waste from the landfill and to reduce GHG emissions; and
WHEREAS, in 2016, the Governor signed into law Senate Bill (SB) 1383 establishing methane emissions reduction targets in a statewide effort to reduce emissions of short-lived climate pollutants; and
WHEREAS, SB1383 impose d certain collection and processing, edible recovery, and procurement requirements onto cities and counties; and
WHEREAS, MuniEnvironmental has assisted the City with negotiations with the City’s hauler, coordinating the roll-out of the Assembly Bill (AB) 1826 commercial organic waste recycling, waste and recycling rate setting, SB 1383 grant submittal, and submittal of the capacity planning to the County to name a few; and
WHEREAS, MuniEnvironmental has the capacity and technical ability to provide services to continue compliance with SB 1383; and
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 that the above recitals are true and correct and incorporates them herein by this reference.
Section 2. The City Council of the City of Lynwood authorizes the Mayor to execute the First Amendment to the Professional Services A greement between the City of Lynwood and MuniEnvironmental in a form approved by the City Attorney in the amount of $150,000.
Section 3. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.
Section 4. The City Clerk shall attest and certify to the passage and adoption of this R esolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval.
Signatures on next page
184
2 185
3 PASSED, APPROVED and ADOPTED at a regular meeting of the City Council of the City of Lynwood, California, this 3rd day of June 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
186
4 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 3rd day of June 2025, and passed by the following votes:
AYES:
NOES:
ABSTAIN:
ABSENT:
Maria Quinonez, 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. XXX.XXX on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 3rd day of June 2025.
Maria Quinonez, City Clerk
187
FIRST AMENDMENT TO THE AGREEMENT BETWEEN
MUNIENVIRONMENTAL, INC AND THE CITY OF LYNWOOD
This First Amendment to the Agreement ("First Amendment") is made as of September 18, 2025 by and between the City of Lynwood, a California municipal corporation ("City"), and MuniEnviromental ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively referred to as the "Parties."
RECITALS
WHEREAS, the City of Lynwood and Consultant, have entered into an Agreement, dated October 1, 2022 (“Master Agreement”), which Master Agreement sets forth the terms and conditions for consulting services; and
WHEREAS, staff finds that the services provided are necessary for continued compliance to state mandates; and
WHEREAS, staff finds that the term of the Master Agreement needs to be extended to continue to provide the services; and
WHEREAS, the City and Contractor desire to enter this First Amendment to the Master Agreement.
NOW, THEREFORE in consideration of mutual covenants and agreements hereinafter contained, the parties hereto do hereby agree as follows:
1. Term of Agreement. The term of the Master Agreement shall be extended and shall remain in full force and effect until June 30, 2026.
2. Full Force and Effect . AlI other terms and conditions of said Master Agreement dated October 1, 2022 shall remain unchanged.
IN WITNESS WHEREOF, the parties hereto have executed this First Amendment to the Master Agreement as of the dates listed below.
SIGNATURES ON NEXT PAGE
188
CITY:
DATED: ____________________ BY: __________________________ Rita Soto, Mayor
City of Lynwood
DATED: ____________________ BY: __________________________ Noel Tapia, City Attorney
City of Lynwood
DATED: ____________________ BY: __________________________ Maria Quinonez, City Clerk
City of Lynwood
CONSULTANT:
DATED: ____________________ BY: _________________________ Jeff A. Duhamel
MuniEnviromental LLC.
189
AGENDA STAFF REPORT
DATE:
September 16, 2025
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Julian Lee, City Manager
PREPARED BY:
Rita Montalvo P.E., Director of Public Works
SUBJECT:
AWARD OF CONTRACT TO BLUE ANGEL INTERNATIONAL, LLC FOR
THE PURCHASE OF
NEW ADVANCED METERING INFRASTRUCTURE
(AMI) COMPATIBLE WATER METER BOXES AND LIDS AS PART OF
THE CITY’S AMI METER REPLACEMENT PROGRAM, CIP NO.
4011.68.093.
Agenda Item # 8.9.
Recommendation:
Staff recommends that the City Council adopt the attached resolution entitled: “A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AWARDING A
CONTRACT TO BLUE ANGEL INTERNATIONAL, LLC FOR THE PURCHASE OF NEW AMI COMPATIBLE WATER METER BOXES AND LIDS AS PART OF CITY’S AMI METER REPLACEMENT PROGRAM, CIP NO. 4011.68.093; AUTHORIZING THE MAYOR TO EXECUTE THE AGREEMENT.”
Background:
The Advanced Metering Infrastructure (AMI) project is a multi-phased and multi-year project with the goal of replacing the City’s older water meters with new “smart” water meters. Two (2) contracts were awarded to Aqua Metric in 2021 & 2022 to provide the new meters and smart points, as well as the Flex-Net Network and the meters have been delivered to the Public Works Yard.
Staff will shortly prepare bid documents for a separate contractor to install the new meters and City Council City Council Regular Meeting 190
connect them via the wireless communication to the Flex-Net Network. The contractor will be responsible for removal and replacement of the water meter at each location, which includes connecting to the existing public water service line and the private water service. The contractor will also notify each customer that their water supply will be out of service for about 30 minutes when the meters are changed out. Staff anticipates it will take about 10 – 12 months for the Water Meter Installation contractor to install the new water meters.
After the AMI system is fully integrated and installed, the smart water meters will be able to send water usage data to a cloud-based software platform that can assist customers with water usage and detecting unusually high-water usage, which will help staff to alert customers.
Discussion and Analysis:
On May 21, 2025, the request for quote (RFQ) was advertised on the City’s website (PlanetBids) and a bid addendum was issued on June 23, 2025, addressing questions from contractors. The proposal opening took place on the PlanetBids platform on Thursday, June 26, 2025, at 10:00 am.
The following bid proposals were submitted:
Bid Proposals
1 Blue Angel International, LLC
$301,034.01
2 B.L. Wallace Distributor, Inc.
$322,956.42
3 Technology International, Inc.
$371,500.65
An analysis of the proposals was conducted, including previous experience, availability of materials and required documents. Blue Angel International, LLC proposal aligns with the City’s needs for this project. Staff recommend that the City Council award the project to Blue Angel International LLC in the amount of $301,034.01. The engineer’s cost estimate for this project was $495,900. The contractor’s proposal was 39% below the estimated cost.
Once authorized, staff will distribute the contract documents, arrange a meeting, and schedule the delivery of materials. Staff anticipate the supplier to provide the meter lids and boxes by January 2026.
Staff anticipate that the meter lids will be delivered prior to the Water Meter Installation contractor begins their work.
Project Budget:
City Council City Council Regular Meeting 191
09-16-2025 AMI - Meter Lids Award Contract (Resolution) V1.docx AMI Meter Lid Bid Summary 071425.pdf
The estimated project expenditures are as follows:
Supplier’s Quote: $ 301,034 Contingency (10%) $ 30,103 Total Project Cost $ 331,137 Fiscal Impact:
The City’s adopted FY 26 CIP budget for AMI/AMR Phase 2 Project No. 4011.68.093 includes $375,000 from Water Direct Funds (6051), $613,000 from LUA-A Revenue Bond (6302) and $896,758 from LUA 202-A Revenue Bond (6305). No additional appropriation is needed.
Coordinated With:
City Manager’s Office
City Attorney’s Office
Department of Finance and Administration
ATTACHMENTS:
Description
City Council City Council Regular Meeting 192
RESOLUTION NO.__________
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD AWARDING
A CONTRACT TO BLUE ANGEL INTERNATIONAL, LLC FOR THE PURCHASE OF NEW AMI COMPATIBLE WATER METER BOXES AND LIDS AS PART OF CITY’S AMI METER REPLACEMENT PROGRAM, CIP NO. 4011.68.093.
WHEREAS, on May 21, 2025, a request for quote was advertised on the City’s website (PlanetBids) for the purchase of AMI ready meter boxes and lids; and WHEREAS, the City is completing the final phase of water meter replacement and upgrade to an Automated Meter Infrastructure (AMI) system; and WHEREAS, The City will be installing over 9,000 new smart water meters and smart points over the next year as the final step to completing the AMI Meter Replacement project.
WHEREAS, the request for quote opening took place on the PlanetBids Platform on Thursday, June 26, 2025, at 10:00 A.M: and
WHEREAS, an analysis of the quotes was conducted, including a review of required documents and staff determined that Blue Angel International, LLC meets all necessary qualifications; and
WHEREAS, staff recommends that the City Council award the project to Blue Angel International, LLC in the amount of $301,034.01; and WHEREAS, the proposed cost for the project, including construction cost and 10% contingency, is $331,137; and
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 that the above recitals are true and correct and incorporates them herein by this reference.
Section 2. The City Council authorizes the Mayor to execute the agre ement between the City of Lynwood and Blue Angel International, LLC in a form approved by the City Attorney in the amount of $301,034.01.
Section 3. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.
Section 4. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its approval.
193
2 PASSED, APPROVED and ADOPTED this 16th day of September 2025.
______________________________
Rita Soto
Mayor
ATTEST:
___________________________
María Quiñónez
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Noel Tapia Julian Lee
City Attorney City Manager
194
3 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 16th day of September 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 16th day of September 2025.
_______________________________
Maria Quiñónez, City Clerk
195
Title: AMI Compatible Meter Boxes & Lids BID LOCATION: PlanetBids Account No 4011.68.093 TIME: 10:00 AM
Engineer's Estimate: $495,900 DATE: 6/26/25
Project Manager: David Gould BY: Mike Brust
Item Meter Size Meter Box
Type Unit Amount Unit Amount Unit Amount Unit Amount
1 3/4" & 1" #3 3,700 EA 60.00$ $222,000.00 $31.73 $117,400.54 $33.96 $125,652.00 $37.20 $137,640.00 2 3/4" & 1" #33 30 EA 75.00$ $2,250.00 $50.61 $1,518.38 $72.05 $2,161.50 $87.20 $2,616.00 3 3/4" & 1" #36 250 EA 80.00$ $20,000.00 $38.13 $9,532.81 $36.11 $9,027.50 $69.80 $17,450.00 4 3/4" & 1" #37 1,600 EA 90.00$ $144,000.00 $52.91 $84,648.44 $49.99 $79,984.00 $73.25 $117,200.00 5 3/4" & 1" & 1-1/2" & 2" #38 275 EA 90.00$ $24,750.00 $80.57 $22,156.92 $88.44 $24,321.00 $98.85 $27,183.75 6 1-1/2" & 2" #65 35 EA 100.00$ $3,500.00 $111.67 $3,908.42 $98.67 $3,453.45 $146.55 $5,129.25 7 1-1/2" & 2" #66 190 EA 200.00$ $38,000.00 $128.69 $24,451.39 $207.96 $39,512.40 $153.55 $29,174.50 8 3/4" & 1" #38 55 EA 250.00$ $13,750.00 $205.77 $11,317.54 $188.90 $10,389.50 $174.25 $9,583.75 9 1-1/2" & 2" #66 70 EA 350.00$ $24,500.00 $279.82 $19,587.47 $329.33 $23,053.10 $254.95 $17,846.50 10 3", 4" & 6" #68 7 EA 450.00$ $3,150.00 $930.30 $6,512.10 $771.71 $5,401.97 $1,096.70 $7,676.90 EE $495,900.00 LOW $301,034.01 2ND $322,956.42 3RD $371,500.65
METER BOXES & LIDS
Quantity
METER LIDS ONLY
CITY OF LYNWOOD
Public Works Department - Water Division
Engineers Estimate Blue Angel International,
LLC
B.L. Wallace Distributor,
Inc.
Technology International,
Inc.
Date: 7/14/2025
196
AGENDA STAFF REPORT
DATE:
September 16, 2025
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Julian Lee, City Manager
PREPARED BY:
Wayne Morrell, Interim Director of Community Development SUBJECT:
CONDUCT SECOND READING, READY BY TITLE ONLY AND
ADOPTION OF THE ATTACHED ORDINANCE ENTITLED, "
AN
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
GRANTING A NONEXCLUSIVE FRANCHISE TO TORRANCE PIPELINE
COMPANY TO OPERATE AND MAINTAIN A PIPELINE SYSTEM FOR
THE TRANSPORTATION OF OIL AND GAS UNDER CERTAIN PUBLIC
WAYS AND PUBLIC PLACES IN THE CITY OF LYNWOOD; SETTING
FORTH CONDITIONS ACCOMPANYING A GRANT OF NONEXCLUSIVE
FRANCHISE; PROVIDING FOR AMOUNT AND METHOD OF PAYMENT
BY FRANCHISEE FOR THE PRIVILEGE GRANTED, AND PROVIDING
FOR THE TERM OF THE NONEXCLUSIVE FRANCHISE."
Agenda Item # 9.1.
Recommendation:
Staff recommends that the City Council conduct a second reading and adopt the ordinance approving the franchise agreement.
Background:
Pursuant to Ordinance No. 1600 adopted by the City Council on March 18, 2008, the City granted ExxonMobil Oil Corporation the right, privilege and franchise to lay and use pipes and appurtenances for transmitting and distributing oil and petroleum products through, under and along City streets (see attached copy of Ordinance). The franchise succeeded a similar franchise between ExxonMobil and the County of Los Angeles that pre-dated City incorporation. On June 7, 2016, the City Council approved a transfer of the franchise to Torrance Pipeline Company, LLC (grantee), who is the successor in interest to the related pipeline assets and remains the current owner.
City Council City Council Regular Meeting 197
On June 7, 2016, the City Council approved the transfer of the franchise to Torrance Pipeline Company, LLC, who is the successor in interest to the related pipeline assets and remains the current owner.
The most recent franchise agreement expired on May 3, 2025. Prior to the expiration, Torrance Pipeline Company, LLC submitted a letter to the City on April 1, 2025, requesting renewal of the franchise. The city currently received an annual franchise fee of $22,903.21.
The physical pipeline is a twelve-inch (12") diameter M-145 pipeline, with a 6,525 linear foot segment running though the westerly portion of the City in a north-south alignment, continuing beyond City limits to the grantee's terminal facility in Vernon.
Public Utilities Code (PUC) Division 3, Chapter 2, authorizes local municipalities to grant franchises to private firms to lay pipes and appurtenances for transmitting oil under and along public streets in accordance with certain parameters outlined in the chapter. The two-step procedure for granting such franchises is outlined in Section 6232 et seq., which states that upon receiving an application, the legislative body shall pass a resolution declaring its intention to grant the franchise applied for, stating the character of the franchise, setting forth a notice of the day, hour, and place when and where all persons having any objection to the granting thereof may appear before the legislative body and be heard thereon, and directing the clerk of the legislative body to publish the notice at least once within fifteen (15) days after the passage of the
resolution in a newspaper of general circulation within the municipality. The time for the public hearing shall be not less than twenty (20) nor more than sixty (60) days after the date of the passage of the resolution.
Discussion and Analysis:
The proposed ordinance renews the franchise for 10 (ten) years and incorporated updates including:
Granting Fee: $8,000
Annual Compensation: $22,903.21 (based on $3.51 per linear foot of pipeline) Total Compensation Over 10 Years: $229,030
Insurance Requirements: $10 million liability coverage
The Torrance Pipeline has been operating safely for decades and continues to meet operational and maintenance compliance requirements.
No changes have been made to the ordinance since first reading. Adoption at this second reading will finalize the renewal of the franchise agreement.
Fiscal Impact:
The General Fund will receive annual revenue payments for the term of the lease. The City Council City Council Regular Meeting 198
Torrance_Pipeline_2025_extension_ordinance1.docx
projected payments will be $22,903.21 with a one-time granting fee of $8,000.
Coordinated With:
City Manager's Office
City Attorney's Office
City Clerk's Office
Department of Finance and Administrations
ATTACHMENTS:
Description
City Council City Council Regular Meeting 199
1 96973.1
ORDINANCE NO. _______
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF LYNWOOD GRANTING
A NONEXCLUSIVE FRANCHISE TO TORRANCE PIPELINE COMPANY TO
OPERATE AND MAINTAIN A PIPELINE SYSTEM FOR THE TRANSPORTATION OF
OIL AND GAS UNDER CERTAIN PUBLIC WAYS AND PUBLIC PLACES IN THE CITY OF LYNWOOD; SETTING FORTH CONDITIONS ACCOMPANYING A GRANT OF NONEXCLUSIVE FRANCHISE; PROVIDING FOR AMOUNT AND METHOD OF
PAYMENT BY FRANCHISEE FOR THE PRIVILEGE GRANTED, AND PROVIDING
FOR THE TERM OF THE NONEXCLUSIVE FRANCHISE
RECITALS
WHEREAS, the Public Utilities Code Sections 6234 authorizes City to grant nonexclusive franchises for oil and gas pipelines by ordinance;
WHEREAS, On March 18, 2008, the City Council of the City of Lynwood (“City Council”) adopted Ordinance No. 1600, which granted ExxonMobil Oil Corporation a non- exclusive fifteen (15) year franchise to operate and maintain a pipeline system for the transportation of oil and gas under certain public ways and public places within City boundaries (“Franchise”); and
WHEREAS, on June 7, 2016, the City Council approved the transfer of Pipeline Ordinance No. 1600 from the ExxonMobil Oil Corporation to Torrance Pipeline Company LLC; and
WHEREAS, on April 4, 2023, the City Council , pursuant to Ordinance No. 1757, granted the Torrance Pipeline Company LLC an additional two (2) year term for the Franchise; and
WHEREAS, the Franchise expire d on May 3, 2025 and Torrance Pipeline Company LLC desire to extend the Franchise for an additional ten (10) year term; and
WHEREAS, on June 3, 2025, the City Council adopted a resolution declaring its intent to consider granting a renewal of the Franchise and setting the time, date, and place for the public hearing in accordance with the California Public Utilities Code Section 6232; and
WHEREAS, notice of the public hearing was duly published in a newspaper of general circulation as required by law; and
WHEREAS, on July 15, 2025, the City Council conducted a duly noticed public hearing regarding the granting of the Franchise to Torrance Pipeline Company, LLC, and introduced the Ordinance for the first reading; and
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WHEREAS, the City Council now desires to approve the renewal of the Franchise for a new ten (10) year term, subject to the terms and conditions set forth in this ordinance.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY ORDAIN AS FOLLOWS:
Section 1. TITLE
This ordinance shall be known and may be cited as the " Torrance Pipeline Company LLC Franchise Ordinance."
Section 2. DEFINITIONS
For the purpose of this Ordinance, the following terms, phrases, words and their derivations have the meaning set forth below. When not inconsistent with the context, words used in the present tense include the future tense, words in the plural number include the singular number, and words in the singular number include the plural number.
The word "shall" is always mandatory and not merely directory.
a. City means the City of Lynwood.
b. Council means the City Council of the City of Lynwood.
c. Code means the Municipal Code of the City of Lynwood, as amended from time to time.
d. Department means the Department of Public Works of the City of Lynwood.
e. Director means Director of Public Works of the City of Lynwood.
f. Facilities or Appurtenances means all property of the Franchisee, including, but not limited to, pipelines, pump stations, and service connections to the Franchisee's Facilities, whether or not installed by the Franchisee, which are erected, constructed, laid, operated or maintained in, upon, over, under, along or across an y street in accordance with any right or privilege granted by the Franchise.
g. Franchise means the privilege granted by the City of Lynwood to construct, operate and maintain oil and gas pipelines under the streets, alleys, public ways and public places now laid out or dedicated, and all extensions thereof, and additions thereto, to the City of Lynwood.
h. Franchisee means Torrance Pipeline Company LLC.
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i. Franchise Payment Period means the time period between the effective date of the ordinance granting the franchise and June 30; and the period between July 1 and June 30, of each successive calendar year during the term of the franchise.
j. Main means any pipeline or conduit laid in, along, or approximately parallel with any street for the collection, transmission or distribution of any substance or commodity.
k. Major Street means any street or portion of a street designated as a major secondary highway in the Circulation Element of the General Plan.
l. Minor Street means any street or portion of a street other than one designated as a major secondary highway in the Circulation Element of the General Plan.
m. Person means any individual, firm, partnership, association, corporation, company, or organization of any kind.
n. Service Connection means the wire, pipes, or conduits which connect the building or place where the service or commodity supplied by the Franchisee is used or delivered, or is made available for use or delivery, with the supply line or supply main in the street or with the supply line or supply main on private property.
o. Street means any road, highway, alley, land, or court or other public easement or public place, and the space above and below it, which now or hereafter exists in the City and wit h respect to which the City has the authority to grant a Franchise.
Section 3. GRANT OF NON-EXCLUSIVE FRANCHISE
a. The privilege and Franchise is hereby granted to Franchisee, to operate and maintain oil and gas pipelines (Facilities) under the streets, alleys, public ways and public places now laid out or dedicated, and all extensions thereof, and additions thereto, to the City of Lynwood, and more particularly described as follows: A 12-inch pipeline beginning at the southerly boundary line of the City of Lynwood, said point being 225.12 feet northerly of Dixon Avenue and
9.3 feet westerly of centerline Alameda Street East; thence continuing northerly along Alameda Street East ±3,708.41 feet to a point on centerline of Fernwood Avenue North, said point 5.25 feet westerly of the centerline of Alameda Street East; thence continuing northerly along Alameda Street East ±360.48 feet to a point 11.11 feet westerly of the centerline of Alameda Street East and 35.47 feet northerly of the centerline of 112th Street; thence northerly along Alameda Street East ±1,610.23 feet to a point 11.5 feet westerly of centerline of Alameda Street East and 188.18 feet northerly of centerline of 108th Street; thence continuing northerly along Alameda Street 202
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East ±434.31 feet to a point being 10.15 feet westerly of centerline of Alameda Street East and 280.22 feet northerly of Martin Luther King Jr.
Boulevard and formally Century Boulevard; thence continuing northerly along Alameda Street East ±411.70 feet to the northerly boundary line of Lynwood, said point being and 9.3 feet westerly of centerline of Alameda Street East; a total distance within the City of Lynwood of ±6,525.13 more or less all of which is 12-inch pipeline.
b. The right to use and occupy said streets, alleys, public ways and public places of the purpose set forth, shall not be exclusive, and the City reserves the right to grant a similar use of such streets, alleys, public ways and public places, to any person at any time during the period of the Franchise.
c. The Franchise is granted subject to all of the terms and conditions contained in this Ordinance and the City of Lynwood Municipal Code. If this Ordinance specifies terms and conditions that augment, modify, or waive the terms and conditions set forth in the City of Lynwood Municipal Code, the provisions of this Ordinance will be deemed to be controlling.
Section 4. TERM
The term of the Franchise shall be for a period of ten (10) years commencing thirty (30) days after the adoption of this Ordinance.
Section 5. ACCEPTANCE OF FRANCHISE
Within thirty (30) days after the Council's adoption of this Ordinance granting the Franchise, the Franchisee must file with the Director, its written acceptance of the terms and conditions of this ordinance.
Section 6. MAPS
Within ninety (90) days after the date on which any Facilities or Appurtenances have been laid, removed or abandoned under the Franchise, the Franchisee must file with the Department a map or maps accurately showing the "as built" location, depth, and size of those Facilities or Appurtenances.
Section 7. INSURANCE
On or before the effective date of this Ordinance granting the Franchise, the Franchisee must provide satisfactory evidence of having obtained policies of comprehensive general liability and workers' compensation insurance from companies authorized to transact business as insurers in the State of California.
a. The policy of comprehensive general liability insurance must:
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1. Be issued to the Franchisee and name the City, its officers, agents, and employees, as additional insureds.
2. Indemnify the City against all liability for personal and bodily i njury, death, and damage to property arising from activities conducted pursuant to the Franchise and provide for the following:
i. Coverage for negligent acts or omissions of the Franchisee, its agents, servants and employees, committed in the conduct of F ranchise operations;
ii. A combined single-limit liability insurance coverage in the amount of ten million dollars ($10,000,000.00); and
iii. No cancellation without thirty (30) days' prior written notice of cancellation to the Director.
b. The policy of workers' compensation insurance must:
1. Be in a form and substance previously approved by the California Insurance Commissioner.
2. Cover all employees of Franchisee who will be employed or do work related to the Franchise operations.
3. Provide for every benefit and payment required by the California Labor Code, including, but not limited to, vocational rehabilitation and death benefits.
4. Be non -cancelable without thirty (30) days' prior written notice of cancellation to the Director.
c. Franchisee mus t file with the Director, prior to commencement of any Franchise operations, either:
1. Certified copies of the required insurance policies; or
2. A certificate of insurance for each of the required policies, executed by the insurer issuing the policy, and containing the following information with respect to each policy:
i. The policy number.
ii. The date upon which the policy will become effective and the date upon which it will expire.
iii. The name of the insured and of any additional insureds. iv. The type and limits of coverage provided by the policy. v. A description of all endorsements that form a part of the policy.
d. Environmental Pollution Coverage, including Contractors Pollution Liability with minimum limits of five million dollars ($5,000,000) per claim, or ten million dollars ($10,000,000) per claim if an aggregate policy is provided, insuring against all liabilities related to environmental pollution and damage, including, but not limited to, all such liabilities for which Franchisee would be liable pursuant to the Franchise.
e. Automobile liability insurance against claims and liability for personal injury, death, or property damage arising from the use, construction, or maintenance of the Franchise, providing protection in an amount no less than Two Million Dollars ($2,000,000.00) per 204
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occurrence for personal injury, death and property damage. Said policy shall be carried only by a financially sound insurance company admitted and licensed to do busi ness in the State of California and which is rated A.VII or better according to the most recent A.M.
Best Co. Rating Guide.
f. No Franchise operations may commence until Franchisee has complied with the provisions of this Section, and all Franchise operat ions will be suspended during any period that Franchisee fails to keep in effect the required insurance policies.
For commencement of the Franchise or any subsequent transfer of the Franchise or any portion thereof, Franchisee shall furnish City with orig inal endorsements, or copies of each required policy, effecting and evidencing the insurance coverage required by the Franchise. Notwithstanding the above, and subject to approval by City, Franchisee may provide a program of self -insurance. Any self -insurance program maintained by Franchisee shall comply with the provisions and the specified limits contained herein.
Franchisee may effect for its own account any insurance not required under this Ordinance. Franchisee shall provide each year for the duration of the Franchise, written notification to the City of its intent to self-insure.
Franchisee shall furnish evidence of all insurance policies required by this Ordinance.
City reserves the right to require Franchisee to deliver to City copies and endorsements of all insurance policies required by this Ordinance, together with evidence reasonably satisfactory to City of payment required for procurement and maintenance of the policy, with the following time limits:
For insurance required at the commencement of the Franchise or any subsequent transfer of the Franchise or any portion thereof, within ten (10) days after the Franchise or any subsequent transfer of the Franchise or any portion thereof becomes effective;
For insurance becoming required at a later date, at least (10) days before the requirement takes effect, or as soon thereafter as the requirement, if new, takes effect;
For any renewal or replacement of a policy already in existence, at least thirty (30) days before expiration or other termination of the existing policy.
If Franchisee fails or refuses to procure or maintain insurance as required by this Ordinance or fails or refuses to furnish City with required proof that the insurance has been procured and is in force and paid for, City shall have the right at City's election and on ten (10) days notice, to declare the Franchise as a forfeiture.
Section 8. FAITHFUL PERFORMANCE BOND
Franchisee must maintain on file with the Director, a corporate surety bond, approved as to form by the City Attorney, in the penal sum of one hundred thousand dollars ($100,000.00). This bond must be issued by an admitted surety insurer approved by the 205
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Director, and provide that Franchisee will perform ea ch condition of the Franchise and that, upon any breach of condition of the bond, the whole amount of the penal sum will be deemed to be liquidated damages and will be recoverable from the principal and sureties on the bond. If the bond, after it has been filed, becomes insufficient at any time during the term of the Franchise, the Franchisee must obtain a new bond, in a form approved by the City Attorney, within ten (10) days after written notice to do so is given by the Director.
Section 9. FORFEITURE
The Franchisee must comply with all conditions contained in this Ordinance, including those conditions contained in the City of Lynwood Municipal Code which are incorporated by reference in this Ordinance. Any neglect, failure or refusal by the Franchisee to comply with any conditions of this Ordinance will constitute grounds for suspension or forfeiture of the Franchise. Before any suspension or forfeiture of the Franchise, the City must give to the Franchisee not less than thirty (30) days' written notice o f any default. If the Franchisee does not, within the noticed period, commence the work of compliance or, after commencing, does not prosecute the work with due diligence to completion, the Council may hold a hearing. Notice of the hearing must be given to the Franchisee by certified mail not less than ten (10) days before the hearing. At that hearing the Franchisee has the right to appear and be heard, and the Council may then determine whether the conditions are material to the operation of the Franchise and whether the Franchisee is in default of those conditions. The Council may, in its discretion, declare the Franchise suspended or forfeited.
Section 10. STATE HIGHWAYS
a. If any street or portion of a street becomes a State highway, the State will succeed to all rights reserved to the City by the Franchise, except for the right to continue to collect the Franchise payments and such other rights as by law may remain with the City.
b. This Section applies to any street or portion of a street which become s a State highway and in which the Franchisee maintains its Facilities under the authorization of the Franchise at the time that street or portion of it becomes a State highway.
Section 11. EMINENT DOMAIN
No franchise granted by the City affects the right of the City or any successor in authority to acquire the property of the Franchisee by purchase or condemnation, and nothing contained in this Ordinance may be construed to contract away, modify, or abridge, either for a term or in perpetuity, the City's right of eminent domain in respect to any public utility.
Section 12. ADMINISTRATIVE COSTS
The Franchisee must pay to the City, within thirty (30) days after adoption of this ordinance, an Administrative Fee of Ten Thousand Dollars ($ 8,000) to cover all administrative and advertising costs associated with the preparation and advertising of this Ordinance.
Section 13. ASSIGNMENT
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The Franchisee may not transfer or assign the Franchise or any part of it, except with the consent of the Council. A transfer or assignment may be made only after filing with the Council a copy of the executed instrument of transfer or assignment and a written request for the consent of the Council to that transfer or assignment. If that executed instrument and written request are n ot filed with the Council within thirty (30) days prior to the effective date of the proposed transfer or assignment, then the Franchise is subject to forfeiture and the Council may, without notice, adopt an ordinance repealing this Ordinance. In consentin g to the proposed transfer or assignment, the Council may, by ordinance, impose any additional terms and conditions upon the Franchise, and upon the transferee or assignee, which the Council deems to be in the public interest. The Franchisee has no right to transfer or assign the Franchise, in whole or in part, except in the manner specified in this Section. This Section applies to any assignment, whether by operation of law, by voluntary act of the Franchisee, or otherwise.
Section 14. PRIOR FRANCHISES
All Facilities erected, constructed, laid, operated, or maintained by the Franchisee in the streets or other areas described in this Ordinance granting the Franchise, whether or not originally installed by the Franchisee, and which are in existence prior to the effective date of this Ordinance, are subject to all terms and conditions of this Ordinance upon its effective date. This Section does not apply to Facilities which have been constructed, laid, operated, or maintained under a prior right which did no t involve the issuance of a franchise.
Section 15. DELEGATION OF AUTHORITY/DUTIES
Wherever, in this Ordinance, a power is granted to or a duty is imposed upon a public officer or employee, the power may be exercised or the duty may be performed by a deputy of that officer or employee or by a person otherwise duly authorized pursuant to statute or ordinance.
Section 16. INDEMNITY AND HOLD HARMLESS
The Franchisee shall indemnify, defend, and hold harmless the City, its officers, agents, and employees, from and against all damages and liability arising from the use, operation, or possession of the Franchise, and from the use, operation, and maintenance of all Facilities erected, constructed, laid, operated or maintained under the Franchise.
Franchisee will not be liable to City for any damages resulting from or arising out of the negligent or willful acts, errors, or omissions of the City, its employees and/or authorized representatives.
Section 17. CONFLICTING IMPROVEMENTS
If the City or any other authorized public entity constructs or maintains any storm drain, sewer structure, or other facility or improvement under or across any Facility of the Franchisee which is maintained in accordance with this Ordinance, the Franchisee must provide, at no expense to th e City or other public entity, such support as is reasonably required for the support, maintenance and protection of that facility or improvement.
Section 18. RELOCATION
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In connection with any City work or improvement specified in Section 35 of this Ordinance, if the Franchisee, after reasonable notice, fails or refuses to relocate, permanently or temporarily, its Facilities that are located in, on, upon, along, under, over, across, or above any street, or to pave, surface, grade, repave, resurface, or re-grade a street as required under any provision of the Franchise, then the City may cause that work to be done. The City must keep an itemized account of the entire cost of that work, and the Franchisee must reimburse the City for that cost within thirty (30) days after its receipt of an itemized account of that cost. The Franchisee is obligated to indemnify, defend, and hold harmless the City, its officers, agents, and employees, in accord with Section 16 of this Ordinance, from any liability which arises or is claimed to arise from the moving, cutting, or alteration of any of the Franchisee's Facilities, or the turning on or off of water, oil, or other liquid, or of gas or electricity.
Section 19. DAMAGE CAUSED BY DEFECTIVE FACILITIES
If any portion of a street is damaged as a result of defective Facilities laid or constructed under the Franchise, the Franchisee must, at its sole expense, repair that damage and restore the street to the condition existing before the damage was incurred, all to the satisfaction of the City. If the Franchisee, within ten (10) days after receipt of written notice from the City instructing it to repair the damage, fails to commence compliance with those instructions, or, after commencing compliance, fails to prosecute diligently the work to completion, then the City may immediately undertake whatever work is necessary to carry out those instructions. That work will be at the cost and expense of the Franchisee. By the acceptance of the Franchise, the Franchisee agrees to pay that cost and expense upon demand after receiving an itemized statement of reasonable costs incurred by City in the performance of such repair . If the damage creates an immediate danger to the public health or safety requiring immediate repair, the City may, repair that damage, and the Franchisee must pay the reasonable cost of that repair upon demand, but only if City takes reasonable efforts to notify Franchise of such repair action.
Section 20. HAZARDOUS SUBSTANCES
Prior to the issuance of any excavation permit for the construction or installation of a new pipeline for the transportation of a hazardous substance in a gaseous state, or for the transportation of hazardous liquid substances or highly volatile liquid substances, the following conditions must be satisfied, as applicable:
a. With regard to pipelines for the transportation of a hazardous substance in a gaseous state, approval must be obtained from the Los Angeles County Fire Department — Petrochemical Unit. This approval will be based upon a deter mination that no undue fire hazard will threaten life or property in any areas of the City where the proposed pipeline will be located. In making this determination, the Los Angeles County Fire Department — Petrochemical Unit must consider and report upon the following:
1. The type of substance in a gaseous state that is to be transported in the pipeline.
2. The density of population or structural development in the areas of the City where the pipeline will be located.
3. The adequacy of water supplies for fire suppression purposes.
4. The availability of public fire protection facilities.
5. The number and location. of shut-off valves in the pipeline. 208
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b. With regard to pipelines for the transportation of hazardous liquid substances or highly volatile subst ances, including hydrocarbon substances, the Franchisee must, unless preempted by paramount State or Federal law, submit to the Director copies of documents previously submitted to the State Fire Marshal evidencing the following:
1. That the new pipeline i s designed to accommodate the passage of instrumented inspection devices, and has leak mitigation and emergency response plans and equipment as may be required by the State Fire Marshal, as provided for in section 51013(b) of the California Government Code.
2. That the newly constructed pipeline will be tested in accordance with subpart E (commencing with section 195.300) of part 195 of title 49 of the Code of Federal Regulations, as provided for in section 51013.5(a) of the California Government Code.
3. That the Franchisee will notify the State Fire Marshal and the Los Angeles County Fire Department — Petrochemical Unit at least three (3) working days prior to conducting a hydrostatic test required by the Elder California Pipeline Safety Act of 1981 (Government Code §51010 et seq.), as provided for in section 51014.3 of the California Government Code.
4. That the Franchisee will provide to the Los Angeles County Fire Department — Petrochemical Unit, a map or suitable diagram showing the location of the pipe line, a description of all products to be transported within the pipeline, and a contingency plan for pipeline emergencies that includes, without limitation, any reasonable information that the State Fire Marshal may require, as provided for in section 510 15(a) of the California Government Code.
5. That the Franchisee will be available to meet with the Los Angeles County Fire Department — Petrochemical Unit, at least once each calendar year to discuss and review contingency plans for pipeline emergencies, a s provided for in section 51015( e) of the California Government Code.
6. That, with regard to any portion of the proposed pipeline that is within five hundred feet (500') of any rail line in the City, the Franchisee will be in compliance with all applicable regulations adopted by the State Fire Marshal governing the construction, testing, operations, periodic inspect ion, and emergency operations of intrastate hazardous liquid pipelines, as provided for in section 51015.2 of the California Government Code.
7. That the Franchisee will comply with all applicable regulations of the State Fire Marshal that establish procedures for maintaining, testing, and inspecting mainline valves and check valves on the intrastate hazardous liquid pipeline, as provided for in section 51015.4 of the California Government Code.
8. That the Franchises will be in compliance with all applicable guidelines and regulations of the State Fire Marshal relating to the spacing of valves on new pipelines so as to limit spillage from surrounding higher ground into standard metropolitan statistical areas and environmentally sensitive areas, as provided for in section 51016 of the California Government Code.
9. That the Franchisee will immediately report to the Los Angeles County Fire Department — Petrochemical Unit, as well as the office of Emergency Services, every rupture, explosion, or fire involving the pipeline, including the testing of such pipeline, as provided for in section 51018(a) of the California Government Code. 209
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Section 21. COUNCIL APPROVAL OF LOCATION OF FACILITIES
With the exception of existing Facilities and on -going maintenance and operations associated with such assets, t he Franchisee may not install or operate any Facilities in any public street, alley, public way, or public place without first obtaining the prior approval of the Council.
PART B. COMPENSATION
Section 22. DAMAGE TO PUBLIC PROPERTY GENERALLY
Any damage caused directly or indirectly to any public property by the Franchisee, while exercising any right, power, or privilege under the Franchise, or while performing any duty under the provisions of this Ordinance, must be promptly repaired by Franchisee at its sole cost and expense.
Section 23. COMPLIANCE WITH APPLICABLE LAWS
The Franchisee shall, at all times during the term of the Franchise, comply with all Applicable State, Federal and Local laws, ordinances, codes, rules and regulations.
Section 24. NOTICES
All notices, bills, payments, reports, or other material required to be delivered under the terms of the Franchise shall be delivered to:
City
City of Lynwood
Public Works Director
11330 Bullis Road
Lynwood, California 90262
Franchisee
Torrance Pipeline Company LLC
Manager Right of Way
12851 E. 166th Street
Cerritos, California 90703
Any notices, bills, payments, reports, or other material required by this Ordinance shall be deemed received on (a) the day of delivery if delivered by hand during Franchisee's regular business hours or by email, facsimile before or during Franchisee's reg ular business hours; or b) on the third business day following deposit in the United States mail, postage prepaid, to the addresses heretofore set in this Ordinance, or to such other addresses as the parties may, from time to time, designate in writing.
Section 25. FEES
The Franchisee must pay to the City an annual Base Franchise Fee, for nonpublic utility pipeline franchises for gas or oil products , of $3.51per lineal ft. of pipeline for a 12 inch pipeline for each for Franchise Pay Period for the Term of this Franchise. 210
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Section 26. PRORATION OF PAYMENTS
If Facilities are abandoned by the Franchisee with the approval of the City as elsewhere provided in this Ordinance, or if Facilities are removed by the Franchisee, the annual Base Franchise Fee will be prorated for that calendar year, as of the end of the calendar month in which that abandonment or removal occurs.
Section 27. RECORDS AND INSPECTIONS
a. Franchisee must preserve for a period of five (5) years all records necessary to determine the amount of any fee which is payable to the City under the provisions of this Ordinance.
b. At all reasonable times, the Franchisee must permit the City to inspect all property of the Franchisee that is erected, constructed, laid, operated , or maintained under the Franchise, and to examine and make copies of all non -proprietary books, accounts, papers, maps, and other records maintained by the Franchisee, or under its control, which concern the operations, transactions, property or financial cond ition of the Franchisee pertaining to the Franchise. These records must be made available to the City at a location in the County of Los Angeles.
PART C. CONSTRUCTION
Section 28. CONSTRUCTION REQUIREMENTS
Pipelines and appurtenances must be constructed and maintained in a good and workmanlike manner and in conformity with all applicable State, Federal and Local laws, ordinances, codes, rules and regulations.
Section 29. NEW INSTALLATION OR REPLACEMENT
The installation or replacement of pipelines, Appur tenances, and all other Facilities necessary for the operation, maintenance, and safety of pipelines and conduits must be in accordance with permits issued by the Department. All proposed installations or replacements must be reviewed and approved, if approved, by the Director as to the most acceptable location in the City's streets.
Section 30. PERMITS
Where the provisions of any law, ordinance, code, or regulation require the issuance of an excavation, encroachment or similar type of permit, the Franchisee may not commence any excavation or encroachment work under the Franchise until it has obtained that permit from the appropriate agency and/or the Department, except in cases of emergency affecting the public health, safety or welfare, or the pre servation of life or property, in which case the Franchisee must apply for a permit not later than the next business day after work has commenced.
The Franchisee's application for the permit issued by the Department must include a map showing the length and proposed location of the pipeline or Appurtenance intended to be 211
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used, and such other information as the Department may require. The Franchisee must pay to the Department all permit fees including, but not limited to, permit inspection fees.
The Franchisee shall notify Underground Service Alert of Southern California at 1-800- 422-4133 and obtain an inquiry identification number (USA Ticket) a minimum of two (2) working days not including day of submission , but not more than fourteen (14) calendar days, prior to any excavation in the vicinity of any potentially existing underground facilities in order to verify the location of all utilities prior to the commencement of any excavation.
The Franchisee shall be responsible for coordinating its work with all utility companies.
Section 31. WORK ON AND RESTORATION OF STREETS
a. The work of constructing, laying, replacing, maintaining, repairing or removing those pipelines and Appurtenances authorized under the provisions of this Ordinance in, over, under, alon g or across any street must be conducted so as to cause the least possible interference with pedestrian and vehicular travel on the street. As soon as the work is completed, all portions of the street which have been excavated or otherwise damaged must be promptly repaired, replaced or restored and placed in as good condition as before the commencement of such work. The restoration, repair or replacement work may, as determined by the Director, require the resurfacing, slurry sealing or other treatment of a street to a minimum of one driving lane, and all work must be done to the satisfaction of the Director and at the expense of the Franchisee.
b. If a Franchisee fails or neglects to undertake or complete the repair, replacement, or restoration work on any street, within ten (10) days after written notice has been given to Franchisee by the Director, the City may repair, replace or restore that street at the expense of Franchisee. Franchisee must pay to the City all costs incurred in performing that work. The amount chargeable is the direct cost of that work, plus the current rate of overhead then charged by the City for reimbursable work.
Section 32. FAILURE TO TIMELY COMPLY
a. If the Franchisee fails to complete any work within the time specified in a per mit, the City may require the Franchisee to pay to the City Five Hundred Dollars ($500.00) per day as liquidated damages for each day that construction extends bey ond the time specified in the permit if the Franchisee fails to make a good faith effo rt to complete the work within the time frame specified in the permit. The amount specified per day as liquidated damages will be adjusted annually by the percentage change in CPI commencing one year from the effective date of this Ordinance.
b. If the Franchisee fails to complete any work required by the terms and conditions of the Franchise, or any related permits, within the required time limits, the City ma y complete or cause to be completed that work at the expense of the Franchisee if the Franchisee fails to make a good faith effort to complete the work with on the time frame specified in the permit. The Franchisee must pay to the City the cost of performing that work after receiving an itemized statement of reasonable costs incurred by City in the 212
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performance of such repair. The amount chargeable to Franchisee is the di rect cost of that work, plus the current rate of overhead then charged by the City for reimbursable work.
c. Franchisee shall not be liable or responsible to City, nor be deemed to have defaulted under or breached this Agreement, for any failure or delay in fulfilling or performing any term of this Agreement, with the exception of any obligation to pay any fees required by this Agreement, when and to the extent such failure or delay is caused by or results from acts beyond the Franchisee’s reasonable control and cannot be reasonably mitigated by Franchisee , including, without limitation, the following force majeure events (“ Force Maj eure Event(s)”) that frustrates the purpose of this agreement: (a) acts of God; (b) flood, fire, earthquake or explosion; (c) war, invasion, hostilities (whether war is declared or not), terrorist threats or acts, riot or other civil unrest; (d) government order or law; (e) actions, embargoes or blockades in effect on or after the date of this agreement; (f) action by any governmental authority; (g) national or regional emergency; (h) strikes, labor stoppages or slowdowns or other industrial disturbances; (i) epidemic, pandemic or similar influenza or bacterial infection (which is defined by the United States Center for Disease Control as virulent human influenza or infection that may cause global outbreak, or pandemic, or serious illness); (j) emergency state; (k) shortage of adequate medical supplies and equipment; (l) shortage of power or transportation facilities; and (m) other similar events beyond the reasonable control of Franchisee.
Section 33. COMPLETION STATEMENT
Upon the completion of the construction of any pipelines or appurtenances authorized by the Franchise, the Franchisee must submit to the Director a statement which identifies the permit or permits issued by the Department, the total length of pipeline authorized to be constructed un der the permit or permits, and the total length of pipelines or Appurtenances actually laid.
Section 34. APPURTENANCES
The Franchisee has the right to construct, maintain and repair all traps, manholes, conduits, valves, appliances, attachments, and Appurtenances (collectively referred to as "Appurtenances") as may be necessary for the proper maintenance and operation of the pipelines under the Franchise. Those Appurtenances must be kept flush with the surface of the street and be located so as to conform to all applicable State, Federal and local laws, ordinances, codes, rules and regulations, and to all permits issued by the Department, and must not interfere with the use of the street for travel. The Fra nchisee has the right, subject to all applicable State, Federal and Local laws, ordinances, codes, rules and regulations, to make all necessary excavations in the streets for the construction, maintenance and repair of those Appurtenances; but the Franc hisee must first obtain an excavation permit from the Department to undertake that work.
Section 35. ORDINARY REPAIR
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The Franchisee may excavate in the street for pipeline repair for the number of days agreed upon by the Franchisee and the Department; but the Franchisee must first obtain an excavation permit from the Department to undertake that work.
Section 36. RELOCATION OF PIPELINES AND APPURTENANCES
a. The City reserves the right to change the grade, alignment, or width, of any public street, way, alley, or place over which the Franchise is granted, including the construction of any subway or viaduct. If any pipelines, Facilities or Appurtenances constructed, installed, or maintained by the Franchisee are located in a manner which prevents or interferes with the change of grade, traffic needs, operation, maintenance, improvements, repair, construction, reconstruction, widening, alteration or relocation of a street, the Franchisee must permanently or temporarily relocate that Facility, at no expense to the City, upon receipt of a written request from the D irector to do so. The Franchisee must commence that work on or before the date specified in the written request, which date may be not less than ninety (90) days from receipt of the written request. Franchisee must then diligently prosecute that work to completion.
b. The City reserves the right for itself, and all other public entities which are now or may later be so authorized, to lay, construct, repair, alter, relocate , and maintain subsurface or other facilities or improvements of any type or description within the streets over which the Franchise is granted. If the City or other public entity determines that the location or relocation of those facilities or improvements conflicts with the Facilities laid, constructed or maintained under the Franchise, whether those Facilities were laid before or after the facilities of the City or other public entity were laid, the Franchisee must relocate those Facilities or improvements, at no expense to the City or other public entity.
The Franchisee must, on or before the date specified in a written request from the Director, which date may not be less than ninety (90) days after receipt of the notice and request to do so, commence work to permanently or temporarily change the location of all Facilities which conflict with those improvements to another location which is approved by the Director. Franchisee must then diligently prosecute the work to completion. If the street is later designated as a State highway, the rights of the State of California will be as provided in California section 680 of the Streets and Highways Code while it remains a State highway.
Section 37. BREAKS OR LEAKS
If any portion of a street is damaged by reason of breaks or leaks in any pipeline, conduit, or Appurtenance constructed or maintained under the Franchise, the Franchisee must, at its sole expense and immediately following written or oral notification from the Director, promptly repair that damage and put the street in as good condition as existed before that damage or leak, all to the satisfaction of the Department. The Franchisee must obtain an excavation permit from the Department to undertake that work.
Section 38. EMERGENCY EQUIPMENT
At all times during the term of the Franchise, the Franchisee must maintain or arrange for, on a twenty four (24) hour basis, an emergency telephone number provided to the Los Angeles County Fire Department Station 147, adequate emergency equipment, and 214
16 96973.1
a properly trained emergency crew. The emergency equipment and crew must be available within a radius of twenty five (25) miles from any Facilities installed or maintained under the Franchise for the following purpose: shutting off the pressure and the flow of substances in those Facilities in the event of an emergency resulting from an earthquake, act of war, civil disturbance, fire, flood, or any other cause.
Section 39. REMOVAL OR ABANDONMENT OF FACILITIES
a. Upon the expiration, revocation or termination of the Franchise, or upon the permanent discontinuance of the use of all or a portion of its Facilities, Franchisee must, within the following thirty (30) days, make written application to the Director for authority, as determined by the Franchisee, either: 1) to abandon all or a portion of those Facilities in place; or 2) to remove all or a portion of those Facilities. The application must describe the Facilities desired to be abandoned or removed by reference to the map or maps required by Section 6 of this Ordinance and must describe with reasonable accuracy the physical condition of those Facilities.
b. The Director must determine whether the abandonment or removal proposed by the Franchisee may be performed without detriment to the public interest and under what conditions the proposed abandonment or removal may be safely completed. The Director must then notify the Franchisee of that determination. The Franchisee must pay to the City the cost of all tests and studies required to determine the disposition of the application for abandonment or removal.
c. Within thirty (30) days after rece ipt of the notice, the Franchisee must apply for a permit from the Department to abandon or remove all or any portion of the Facilities and must pay all applicable fees and costs. The permit must set forth any conditions of abandonment or removal that may be prescribed by the Director . Any abandonment of the Facilities must be conditioned, in part, upon Franchisee's future compliance with the provisions of Section 35 of this Ordinance.
d. Within ninety (90) days after obtaining the permit, the Franchisee must commence and diligently prosecute to completion the work authorized by the permit.
e. If the Franchisee applies for authority to abandon in place all or a portion of its Facilities, and the Director determines, in his or her sole discretion, that such abandonment in place may be effected without detriment to the public interest, and the Director accepts such abandonment in place of all or a portion of the Facilities, the Franchisee must pay to the City an abandonment fee as follows:
Pipelines with an Internal Diameter of: Amount per Lineal Foot 0-12 inches $15.00
13-18 inches $22.00
19-30 inches $28.00
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Section 40. FAILURE TO COMPLY
a. If any Facilities proposed to be abandoned "in place" and subject to prescribed conditions are not abandoned in accordance with those conditions, the Director may issue additional orders, including an order that the Franchisee remove any or all of those Facilities. The Franchisee must comply with these additional orders.
b. If the Franchisee fails to comply with the terms and conditions of abandonment or removal as required by this Ordinance and within the time prescribed by the Director, then the City may remove or cause to be removed those Facilities at the Franchisee's expense.
The Franchisee must pay to the City the cost of that work, plus the current rate of overhead then charged by the City for reimbursable work after receiving an itemized statement of reasonable costs incurred by City in the performance of such repair.
c. If, upon the expiration, revocation or termination of the Franchise, or the permanent discontinuance of the use of all or a portion of its Facilities, the Franchisee, within thirty (30) days thereafter, fails or refuses to make written application for the authority referenced above, the Director will make the determination as to whether the Facilities are to be abandoned in place or removed. The Director must then notify the Franchi see of that determination. The Franchisee must then comply with the provisions of Section 39 of this Ordinance.
Section 41. ABANDONMENT "IN PLACE" CONDITIONS:
Facilities abandoned "in place" are subject to the condition that, if at any time after the effective date of the abandonment, the Director determines that any Facility interferes with a public project, Franchisee or its successor in interest must remove that Facility at its expense when requested to do so by the City, or pay the City for the cost of that removal.
PART D. SPECIAL PROVISIONS
Section 42. RIGHTS GRANTED
Franchisee has the right, during the term of that Franchise, to transport petroleum, oil, gas, gasoline, and like substances through the pipelines maintained under the Franchise.
Section 43. MATERIALS USED
All pipelines used for the transportation of petroleum, oil, gas, gasoline, and like substances, or other flammable liquids must be of standard material and in conformity with current American Petroleum Institute pipeline specifications.
Section 44. APPROVALS
No excavation permit for a pipeline to be constructed or installed in accordance with the Franchise may be issued unless the Franchisee has complied with all applicable provisions of Subsection 20b of this Ordinance relating to pipelines for the transportation of hazardous liquid substances or highly volatile liquid substances. This requirement does not apply to emergency situations, such as those involving the mitigation of pipeline ruptures, spills or leaks.
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Section 45. REPORTS
During the term of the Franchise, and within thirty (30) days after the expiration of each Franchise Payment Period, the Franchisee must:
a. File with the Director two (2) copies of a report, verified under penalty of perjury by a duly authorized representative of the Franchisee, showing for the immediately preceding Franchise Payment Period: 1) the length of all lines in streets; 2) the internal diameter of those lines; 3) the rate per foot per year; and 4) the total amount due the City.
b. File with the Director a report in triplicate, showing the number of each permit obtained for the installation of new mains during the immediately preceding Franchise Payment Period, together with the length and size of those mains. The Franchisee must show on this report any change in pipeline footage since the last Franchise Payment Period, segregating that footage as to new mains laid, old mains removed, old mains abandoned in place, and the footage of mains in any territory annexed or incorporated since the last Franchise Payment Period.
Section 46. PAYMENTS DUE
The Franchisee's payments are due annually in accordance with the Franchise Payment Period indicated in Section 2 of this Ordinance.
Section 47. SEVERABILITY
If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance. The City Council h ereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
Section 48. PUBLISHING ORDINANCE
The City Clerk is directed to certify to the passage and adoption of this Ordinance and to cause it to be posted or published as required by law and said Ordinance shall become effective 30 days after its passage.
PASSED, APPROVED AND ADOPTED this ____ day of ________ 2025.
________________________________
Rita Soto, Mayor
ATTEST:
217
19 96973.1
_______________________________
Maria Quiñonez, City Clerk
APPROVED AS TO FORM APPROVED AT TO CONTENT
_______________________________ ________________________________ Noel Tapia, City Attorney Julian Lee, City Manager
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20 96973.1
STATE OF CALIFORNIA )
) §
COUNTY OF LOS ANGELES )
I, the undersigned, City Clerk of the City of Lynwood, do hereby certify that the above and foregoing Ordinance was duly adopted by the City Council of the City of Lynwood at a regular meeting held in the City Hall of said City on the _______ day of __________, 2025, and passed by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
Maria Quiñonez, City Clerk
219
AGENDA STAFF REPORT
DATE:
September 16, 2025
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Julian Lee, City Manager
PREPARED BY:
Rita Montalvo, P.E., Director of Public Works
SUBJECT:
PROJECT ACCEPTANCE FOR THE SLURRY SEAL IMPROVEMENTS
AND THORSON AVENUE ALLEY DRAINAGE PROJECT, FY 2024-2025 (CIP NO. 2121|2357|2352|9053|9056.68.141)
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 ACCEPTING THE
SLURRY SEAL IMPROVEMENTS AND THORSON AVENUE ALLEY DRAINAGE PROJECT FY 2024-2025 CIP NO. 2121|2357|2352|9053|9056.68.141 AS COMPLETE; AUTHORIZING
THE FILING OF THE NOTICE OF COMPLETION WITH THE LOS ANGELES COUNTY RECORDER’S OFFICE AND THE RELEASE OF THE 5% RETENTION 35 DAYS AFTER THE ACCEPTANCE.”
Background:
The City’s capital projects are long-term infrastructure investments outlined in the Annual Capital Improvement Projects (CIP) Plan, which includes water, sewer, streets, parks, recreational amenities, and facilities. Slurry Seal projects play a key role in the City’s pavement management program. This treatment creates a new road surface, protecting it from sun and water damage. Slurry seal is a cost-effective maintenance solution that extends the lifespan of asphalt at a fraction of the cost of full pavement repair. On November 19, 2024, the City Council approved the plans and specifications, as well as authorized the solicitation of bids. The project has since been put out for bid to be awarded.
City Council City Council Regular Meeting 220
On November 20, 2024, Staff uploaded to the City website (Planetbids) soliciting proposals for the Slurry Seal Improvements and Thorson Avenue Alley Drainage Project FY 2024-2025. On December 17, 2024, the proposal opening took place and staff received six (6) proposals.
Discussion and Analysis:
Cali State Paving, Inc. was initially identified as the apparent lowest bidder with a base bid of $664,875.00. On December 19, 2024, All American Asphalt submitted a Bid Protest with the findings that line items #1 and #1A (mobilization/demobilization) submitted by the current apparent low bidder exceeded the 3% of the total of bid amount. Under Technical Provisions pages 71 and 72, the amount of mobilization/demobilization shall not exceed 3% of all bid items and the staff confirmed that the line items #1 and #1A submitted by Cali State Paving, Inc. did exceed the 3% of the total of bid amount.
Upon further review of apparent lowest bid, staff also found that Cali State Paving Inc.’s subcontracted work amounted to 60% of total bid amount, exceeding the 50% limit specified in the "Information Required of Bidder 1.3.3 List of Subcontractors" form in the bid packet. The form states, "The Contractor shall perform, with its own organization, Contract work amounting to at least 50 percent of the Total Bid Price, except that any designated 'Specialty Items' may be performed by subcontract." Findings from both the bid protest on the mobilization/demobilization limitation and subcontracted work amount, resulted in Cali State Paving, Inc. being deemed a non-responsive bidder and has been disqualified.
A subsequent analysis of the second-lowest bidder, All American Asphalt, was conducted, including a review of their bid schedule, license, references, and required documents. All American Asphalt was found to be lowest responsive bidder and is eligible to proceed with the award of the Slurry Seal Improvements and Thorson Avenue Alley Drainage Project. Staff now recommends that the City Council award the project to All American Asphalt in the amount of $691,681.00.
On January 21, 2025, the City awarded the contract to All American Asphalt., in the amount of $691,681.00. A Notice to Proceed was issued, marking the start of construction on April 7, 2025. Throughout the life of the project, there were discrepancies in working conditions that required additional materials and working days. These had to be addressed through one (1) change order issued. The final date of construction was June 30, 2025.
Scope of Work:
City Council City Council Regular Meeting 221
Street resurfacing, and partial replacement of concrete sidewalks, curb and gutters, driveways approaches, and curb ramps, traffic signing, striping improvements at the following locations:
Segment From To Abbott Road Martin Luther King Jr Boulevard San Juan Avenue Abbott Road Alexander Avenue Hunt Avenue Abbott Road Standard Avenue Sampson Avenue Abbott Road San Juan Avenue San Miguel Avenue Abbott Road Sampson Avenue Pine Avenue Abbott Road Pine Avenue Atlantic Avenue Abbott Road San Miguel Avenue Otis Street Abbott Road Otis Street Alexander Avenue Abbott Road Atlantic Avenue City Limit Louise Avenue EOP Lavinia Avenue Louise Avenue Lavinia Avenue Clark Street Atlantic Avenue Josephine Street Agnes Avenue
Atlantic Avenue Agnes Avenue Lavinia Avenue Atlantic Avenue Lavinia Avenue Carlin Avenue Atlantic Avenue Carlin Avenue Arlington Avenue Atlantic Ave Arlington Avenue City Limit
In addition, this project will include the construction of a new stormwater drainage system located along the Thorson Avenue Alley between Carlin Avenue and Orchard Street.
Approved Budget:
The original contract amount with All American Asphalt. was $691,681.00. During construction, staff made several field adjustments to address discrepancies in working conditions, resulting in one (1) change orders totaling $20,896.80 for a revised contract amount of $712,577.80.
Additionally, $69,319.00 was allocated for construction management/Inspection while $69.000.00 was used for project management, labor compliance tasks performed by Avant City Council City Council Regular Meeting 222
ATTACHMENT A - FY25 SLURRY PROJECT CCO.docx
Resolution - Slurry_Seal_Project_Acceptance.docx
Garde Inc and other cost.
The overall cost of the project came to $850,896.80, which is below the approved budget of $900,000.00.
Original Contract Amount
$691,681.00
1 Change Order
$20,896.80
Project Management, Labor Compliance & other costs
$69,000.00
Construction Management/Inspection
$69,319.00
Total Cost of Project
$850,896.80
The project is now ready for acceptance by the City Council. Once accepted, staff will record the Notice of Completion at the County Recorder’s Office. Retention will be released 35 days following the project’s acceptance.
Fiscal Impact:
The CIP Project No. 2121|2357|2352|9053|9056.68.141 had an adopted FY 24-25 budget of $900,000.00, $312,537.11 from 2020 Lease Revenue Bond (9056), $187,462.89 from SB1 (2121), $9,029.51 from Measure M Bond (2357), $200,000 from Measure R (2352) and $190,970 from 2017 Lease Revenue Bonds (9053).
No additional appropriation was needed.
Coordinated With:
City Manager’s Office
City Attorney's Office
Department of Finance and Administration
ATTACHMENTS:
Description
City Council City Council Regular Meeting 223
ATTACHMENT A – CHANGE ORDERS
FY25 SLURRY PROJECT
CONTRACT CHANGE ORDERS DESCRIPTION AMOUNT
CCO#01 Additional work performed on
Louise Street $20,896.80
ORIGINAL AMOUNT $691,681
CHANGE ORDER TOTAL $20,896.80
TOTAL NEW CONTRACT $712,577.80
224
1 RESOLUTION NO. XXXX-XXX
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
ACCEPTING THE SLURRY SEAL IMPROVEMENTS AND THORSON
AVENUE ALLEY DRAINAGE PROJECT CIP NO.
2121|2357|2352|9053|9056.68.141 AS COMPLETE; AUTHORIZING THE
FILING OF THE NOTICE OF COMPLETION WITH THE LOS ANGELES COUNTY RECORDER’S OFFICE AND THE RELEASE OF THE 5%
RETENTION 35 DAYS AFTER THE ACCEPTANCE.
WHEREAS, on November 20, 2024, the City of Lynwood issued a formal Request for Proposals on the City’s website (Planetbids) for the Slurry Seal Improvements and Thorson Avenue Alley Drainage Project; and
WHEREAS, the proposal opening occurred on December 17, 2024, with a total of six (6) proposals received from various qualified companies; and
WHEREAS, On November 5, 2024, the City awarded the contract to Ace Electric, Inc., in the amount of $1,075,600; and
WHEREAS, the work performed consisted of street resurfacing, and partial replacement of concrete sidewalks, curb and gutters, driveways approaches, and curb ramps, traffic signing, striping improvements. In addition, this project will include the construction of a new stormwater drainage system located along Thorson Avenue Alley between Carlin Avenue and Orchard Street; and
WHEREAS, the Notice to Proceed was issued and construction of the Project started on April 7, 2025; and
WHEREAS, there were one (01) contract change orders to address discrepancies in working conditions totaling a revised contract amount of $712,577.80; and
WHEREAS, the final date of construction was June 30, 2025, and all work was completed in accordance with the project plans and specifications; and
WHEREAS, the total construction cost including project management, construction support, and labor compliance is $850,896.80; and
WHEREAS, the total construction budget was $ 900,000.00 from 2020 Lease Revenue Bond (9056), SB1 (2121), Measure M Bond (2357), Measure R (2352) and 2017 Lease Revenue Bonds (9053); and
WHEREAS, no additional appropriation is needed.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF LYNWOOD DOES HEREBY FIND, PROCLAIM, ORDER, AND RESOLVE AS FOLLOWS:
225
2 Section 1. The City Council of the City of Lynwood hereby finds that the above recitals are true and correct and incorporates them herein by this reference.
Section 2. The City Council of the City of Lynwood accepts the Slurry Seal Improvements and Thorson Avenue Alley Drainage Project FY 2024 -2025, CIP No. 2121|2357|2352|9053|9056.68.141. as complete in accordance with contract documents.
Section 3. The City Council authorizes the Director of Public Works or h er designee to process the recordation and filing of the Notice of Completion with the Los Angeles County Recorder’s Office
Section 4. The City Council authorizes the release of the 5% retention 35 days after acceptance.
Section 5. Authorize the Mayor to execute the Resolution for and on behalf of the City of Lynwood.
Section 6. The City Clerk shall attest and certify to the passage and adoption of this Resolution and enter it into the book of original resolutions, and it shall become effective immediately upon its adoption.
(Signatures on Next Page)
226
3 PASSED, APPROVED and ADOPTED this 16th day of September 2025.
Rita Soto
Mayor
ATTEST:
Maria Quiñónez
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Noel Tapia Julian Lee
City Attorney City Manager
227
4 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 16th day of September 2025, and passed by the following votes:
AYES:
NOES:
ABSTAIN:
ABSENT:
Maria Quinonez, 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. XXX on file in my office and that said Resolution was adopted on the date and by the vote therein stated. Dated this 16th day of September 2025.
Maria Quinonez, City Clerk
228
AGENDA STAFF REPORT
DATE:
September 16, 2025
TO:
Honorable Mayor and Members of the City Council
APPROVED BY:
Julian Lee, City Manager
PREPARED BY:
Noel Tapia, City Attorney
SUBJECT:
CONSIDERATION OF APPROVAL OF A PROFESSIONAL SERVICES
AGREEMENT FOR INTERIM CITY MANAGER
Agenda Item # 9.3.
Recommendation:
Staff recommends that the City Council adopt the attached resolution entitled, " A
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD APPROVING A
PROFESSIONAL SERVICES AGREEMENT WITH GABRIEL GONZALEZ TO PROVIDE
INTERIM CITY MANAGER SERVICES
Background:
The City Manager, Julian Lee, has submitted notice of his resignation effective close of business on September 18, 2025. As a result, the position of City Manager will become vacant beginning September 19, 2025. In order to ensure the continued efficient operation of the City, it is necessary for the City Council to consider approving a professional services agreement for Mr. Gabriel Gonzalez to serve as the Interim City Manager and to assume the duties and responsibilities of the office effective September 19, 2025 Discussion and Analysis:
State law requires that the position of City Manager remain filled, and CalPERS regulations require that an interim appointment only be made when the position is vacant. To maintain compliance, the appointment of the Interim City Manager must be effective on September 19, 2025, following the resignation of the current City Manager.
Staff recommends that the City Council consider approving the professional services agreement for Mr. Gonzalez to provide Interim City Manager services effective September 19, 2025. Mr. Gonzalez’s appointment and approval of the professional services agreement will City Council City Council Regular Meeting 229
LYNWOOD RETIRED ANNUITANT CONTRACT - Final.pdf
Resolution - Interim City Mngr Agreement.pdf
allow for a seamless transition of executive leadership and ensure that the City continues to operate without interruption. Mr. Gonzalez will serve at the pleasure of the City Council until such time as a permanent City Manager is appointed or the Council takes further action for a limited duration and in accordance with CalPERS
requirements for a retired annuitant.
Provided Mr. Gonzalez is appointed as the Interim City Manager, Mr. Gonzalez will assume the duties of Interim City Manager beginning September 19, 2025, immediately following the vacancy of the position and for a limited duration. Mr. Gonzalez’s appointment and the approval of his professional services agreement will provide continuity of executive management and comply with all legal and regulatory requirements governing interim appointments, including CalPERS requirements for retired annuitants.
Fiscal Impact:
The fiscal impact of appointing an Interim City Manager will be limited to the temporary salary and benefits authorized under Government Code section 7522.56, and will not create long- term pension liabilities for the City. This ensures continuity of operations while maintaining compliance with CalPERS post-retirement employment restrictions.
Coordinated With:
City Attorney’s Office
ATTACHMENTS:
Description
City Council City Council Regular Meeting 230
PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF LYNWOOD AND
GABRIEL GONZALEZ FOR INTERIM CITY MANAGER SERVICES
This PROFESSIONAL SERVICES AGREEMENT (hereinafter referred to as "Agreement') is made and entered into between GABRIEL A. GONZALEZ (hereinafter referred to as "Gonzalez") and the CITY OF LYNWOOD, a municipal corporation organized under the laws of the State of California (hereinafter referred to as "City").
WHEREAS, Gonzalez was employed by the City of Shafter, a California Public Employees’ Retirement System (“CalPERS”) employer, having previously served as the Shafter City Manager from 2020-2024; and
WHEREAS, Gonzalez retired from public service effective December 31, 2024 and began collecting a retirement pension from the CalPERS; and WHEREAS, as a result of the former City Manager tendering his resignation and vacancies in key senior and mid-level department staff positions, there is an immediate need to create stability and engage an experienced professional to serve as Interim City Manager on an as-needed, temporary, and interim basis to perform the duties of the City Manager until the City appoints a permanent City Manager or otherwise determines that interim services are no longer required; and
WHEREAS, the City Council of the City of Lynwood (“City Council”) desires to retain a qualified professional for a limited duration to provide immediate and critical stability for City operations and perform necessary duties and responsibilities as an Interim City Manager, as stated above; and
WHEREAS, concurrently, a vacancy in the position of City Manager will commence on September 18, 2025, a regular position for which the City has already commenced steps to recruit a permanent appointment; and WHEREAS, the City desires to retain Gonzalez who possesses prior professional experience and is knowledgeable as a City Manager and can assist the City in performing those duties caused by the staff shortages and to advise and assist the City during the organizational transition for a limited duration. Gonzalez will provide the requisite managerial skills and expertise to the City Council on items such as, but not limited to: the City budget and City finances, provide direction to and manage City departments and assist with employee recruitments; and assist the City with managing its City operations to insure the orderly conduct of City business; and WHEREAS, the City Council has determined that Gonzalez possesses the specialized skills that are needed by City for a limited duration and upon the City hiring 1 231
of a new permanent City Manager, Gonzalez will cease providing services set forth in this Agreement; and
WHEREAS, Gonzalez, by virtue of having previously been employed as a City Manager, and having 27 years of professional experience in various municipal capacities, is uniquely qualified and has the requisite specialized skills, training and experience to serve as Interim City Manager for the City; and WHEREAS, Gonzalez represents that he is a retired annuitant of the CaIPERS within the meaning of Government Code section 7522.56 (c) as of the effective date of this Agreement and subject to CalPERS post-retirement rules as set forth in Government Code section 21220, et seq. and other applicable Government Code provisions. Gonzalez acknowledges that he is restricted to working no more than a combined 960 hours for the City, a state agency, or other CaIPERS contracting agencies (collectively "CaIPERS Agencies") during any fiscal year; and WHEREAS, Gonzalez’ employment is authorized by Government Code section 21221(h), which permits the City to appoint a CalPERS retired annuitant to a vacant position requiring specialized skills during recruitment for a permanent replacement; and WHEREAS, this employment agreement is intended to identify the expectations of the parties only during the limited duration of service by Gonzalez to the City.
NOW, THEREFORE, the Parties hereto agree as follows:
1. Term
City agrees to retain Gonzalez as a retired annuitant on an hourly basis, commencing on September 19, 2025. Gonzalez’s hours of service shall not exceed 960 hours in any fiscal year in compliance with Government Code sections 21221(h) and 21224.
Gonzalez agrees and does accept retention upon the terms and conditions set forth herein.
Gonzalez shall perform the duties of Interim City Manager as assigned by the City Council. The City Council shall determine the scope of duties and the general work schedule necessary to meet the operational needs of the City. Gonzalez acknowledges that this appointment is temporary, at-will, and does not provide for any benefits, tenure, or rights other than hourly compensation for services actually rendered.
Nothing in this Agreement shall prevent, limit or otherwise interfere with the right of the City Council to terminate the services of Gonzalez at any time, with or without a reason or cause consistent with the terms set forth in Section 8 of this Agreement. 2 232
Nothing in the Section shall or is intended to prevent, limit or otherwise interfere with the right of the City or Gonzalez to terminate the services provided herein prior to the expiration of this Agreement or any extension thereof.
2. Duties and Obligations of Gonzalez
Gonzalez agrees to serve as the City's Interim City Manager. Gonzalez agrees to perform the functions and duties of the position of Interim City Manager consistent with the duties and responsibilities of the City Manager as described by state law, the municipal code of the City of Lynwood, the job description of the position of City Manager, and other duties and functions as the City Council may assign.
Gonzalez agrees to perform such duties to the best of his ability in an efficient and competent manner. In addition, Gonzalez agrees that he will not engage in any activity that may be competitive with City's business or pose a conflict of interest with that business and that he will not misuse, nor improperly disclose, any confidential or other proprietary information of City.
3. Work Schedule
Gonzalez shall work an hourly schedule subject to the limitations required under Government Code sections 7522.56 and 21220, et seq. Gonzalez will work between thirty to forty hours (30-40) per week, not to exceed 960 hours.
4. Compensation
Effective upon the commencement of this Agreement, the City shall pay to Gonzalez the hourly rate of one hundred thirteen dollars and fifty-eight cents ($113.58) per hour.
Payments from City to Gonzalez shall be made during the normal payroll cycles of other City employees. Gonzalez shall keep track of his work hours via the City’s time management system. Gonzalez shall provide the City with a monthly statement of any reasonable and necessary expenses, as set forth below in Section 5.
Gonzalez shall not receive any benefit, incentive, compensation in lieu of benefits, or other form of compensation in addition to the hourly pay rate.
Gonzalez will comply with all applicable CaIPERS rules and regulations governing employment after retirement, including the recordation and reporting of all hours worked for the City to CaIPERS as may be required. The City shall assist in any such reporting obligation to CaIPERS.
In the event Gonzalez determines that additional independent contractor services may be required to complete the requested services of the City, Gonzalez may recommend to the City the types of services and costs thereof for consideration by the City Council. 3 233
However, no additional contractors or services shall be provided or performed unless approved in writing by the City Council in advance.
5. Expenses related to Official City Business
Gonzalez will be entitled to the use of City equipment and supplies to provide service to the City. The City also agrees to pay for any reasonable and necessary business-related expenses incurred in the performance of his duties, including travel expenses, mileage reimbursement for use of personal vehicle for City business, and costs as requested by the City, when provided in writing as described in Section 4 above.
6. Indemnification
Employer shall defend, save harmless and indemnify Gonzalez against any tort, professional liability claim or demand or other legal action, whether groundless or otherwise, arising out of an alleged act or omission occurring in the performance of Gonzalez's duties as Interim City Manager. Gonzalez agrees to cooperate in any and all litigation matters, which may be filed in the future. Employer shall pay all costs incurred by Gonzalez in connection therewith, including travel fees and costs. This provision shall survive termination of this Agreement.
7. Retiree Annuitant
Nothing in this Agreement shall be construed to create a fixed-term or regular employment relationship between the City and Gonzalez. Gonzalez is appointed as a retired annuitant employee pursuant to Government Code §§ 21221(h) and 21224 solely for purposes of CalPERS post-retirement employment. This appointment is temporary and at-will, and does not provide Gonzalez with any right to continued employment or tenure.
Gonzalez acknowledges and agrees that, as a retired annuitant, he shall receive no benefits, incentives, or compensation other than the hourly rate specified herein.
Specifically, Gonzalez shall not accrue or receive vacation, sick leave, holiday pay, retirement service credit, health insurance, or any other fringe benefits available to regular City employees.
The City shall treat Gonzalez as a retired annuitant employee for payroll purposes.
Accordingly, the City shall withhold all required federal and state income taxes and Medicare contributions from the compensation paid to Gonzalez, and shall make the employer’s matching Medicare contribution as required by law. No deductions shall be made for Social Security (OASDI) or CalPERS retirement contributions, and Gonzalez shall not accrue or receive any retirement service credit in connection with this 4 234
appointment. City shall have no responsibility to provide Gonzalez, his employees or subcontractors with workers’ compensation insurance or any other insurance.
8. Termination of Agreement
The City and Gonzalez agree that the retention created by this agreement is subject to the termination provisions of this Agreement and either City or Gonzalez may terminate the relationship for any reason, with or without cause, with ten (10) days prior written notice.
Gonzalez shall only be entitled to the amounts then due and owing him through the last day actually worked. Gonzalez shall not be entitled to any severance or any other benefits under the Agreement.
9. Modification
Any modification of this Agreement will be effective only if it is in writing and signed by both Parties.
In the event that the California Public Employees Retirement Systems (PERS) requests a change to the terms of the Agreement in order to maintain Gonzalez as a qualified retired annuitant, the City agrees to negotiate and make any reasonable changes to this Agreement as required by PERS.
10. Entire Agreement
This Agreement contains all of the covenants and agreements between the City and Gonzalez with respect to Gonzalez's employment by City. City and Gonzalez acknowledges that no representations, inducements, promises, or agreements, oral or otherwise, have been made by either party, or anyone acting on behalf of either party, which are not embodied herein, and that no other agreement, statement or promise not contained in this Agreement shall be valid or binding on either party.
11. Laws Governing Agreement
This Agreement shall be governed by and construed in accordance with the laws of the State of California. Venue shall be in Los Angeles County, California.
12. Notices
Any notice to be given hereunder by either the City or Gonzalez shall be in writing and be transmitted by personal delivery, or certified mail, with return receipt requested.
Mailed notices shall he addressed to the following respective addresses:
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City of LYNWOOD: Gabriel A. Gonzalez:
Attn. Mayor and Members of the City Council 852 Avenida Ricardo #130 11330 Buillis Road San Marcos, CA 92069
Lynwood, California 90262
Notices delivered personally shall be deemed communicated as of the date of actual receipt. Mailed notices shall be deemed communicated as of the date imprinted on the return receipt
13. Legal Action
In the event either party commences an action, either by arbitration or judicial proceedings, against the other arising out of or in connection with the enforcement of the terms of this employment agreement, the prevailing party shall be entitled to have and recover from the losing party, in addition to any award at law or equity, reasonable attorney's fees, court costs, and costs of suit or arbitration, including costs of appeal, if any, in such amount as the court or arbitrator may award.
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 City Clerk, and Gabriel A. Gonzalez has signed and executed this Agreement, both in duplicate, this ________day of September 2025.
“City” “Gonzalez”
___________________________ _______________________________ Rita Soto, Mayor Gabriel A. Gonzalez
Attest: Approved as to Form:
____________________________ _______________________________ Maria Quinonez, City Clerk Noel Tapia,
City Attorney
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RESOLUTION NO. _____
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF LYNWOOD
APPROVING A PROFESSIONAL SERVICES AGREEMENT WITH GABRIEL
GONZALEZ
TO PROVIDE INTERIM CITY MANAGER SERVICES
WHEREAS, the City Manager of the City of Lynwood, Julian Lee, has submitted notice of resignation effective September 18, 2025; and WHEREAS, the City Manager position will become vacant as of 12:00 a.m. on September 19, 2025; and
WHEREAS, the City Council has determined that it is in the best interests of the City to appoint an Interim City Manager to serve beginning on the effective date of the vacancy and until a permanent City Manager is appointed; and WHEREAS, the City Council desires to approve a professional services agreement with Mr. Gabriel Gonzalez to provide Interim City Manager services, effective September 19, 2025, consistent with the requirements of the California Public Employees’ Retirement System (CalPERS).
NOW, THEREFORE THE CITY COUNCIL OF THE CITY OF LYNWOOD,
CALIFORNIA DOES HEREBY FIND, DETERMINE, 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 a substantive part of this Resolution.
Section 2. The City Council hereby approves the professional services agreement with Mr. Gabriel Gonzalez to provide Interim City Manager services in a form approved by the City Attorney, effective September 19, 2025.
Section 3. The Interim City Manager shall serve at the pleasure of the City Council and shall have the full authority and responsibility of the City Manager as set forth in the services agreement between Mr. Gonzalez and the City for a limited duration and in accordance with CalPERS requirements, until such time as a permanent City Manager is appointed or further action is taken by the City Council.
Section 4. The Mayor is authorized to execute the professional services agreement for and on behalf of the City of Lynwood. The Mayor is also authorized to execute this Resolution for and on behalf of the City of Lynwood.
Section 5. This Resolution shall take full force and effect immediately upon adoption by the City Council.
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Section 6. The City Clerk shall certify as to the adoption of this Resolution.
PASSED, APPROVED, AND ADOPTED THIS 16th DAY OF SEPTEMBER 2025.
Rita Soto
Mayor
ATTEST:
Maria Quiñonez
City Clerk
APPROVED AS TO FORM: APPROVED AS TO CONTENT:
Noel A. Tapia Julian Lee
City Attorney City Manager
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