AGENDA
REGULAR MEETING OF THE MAYWOOD CITY COUNCIL AND THE
SUCCESSOR AGENCY TO THE MAYWOOD COMMUNITY
REDEVELOPMENT AGENCY
WEDNESDAY, MARCH 23, 2022 AT 7:00 PM
Maywood City Council Chambers
4319 E. Slauson Avenue, Maywood, CA 90270
www.cityofmaywood.com
I. CALL TO ORDER/ROLL CALL
CALL TO ORDER
ROLL CALL
II. CITY OFFICIALS
MAYOR
Heber Marquez
MAYOR PRO TEM
Frank Garcia
COUNCIL MEMBERS
Eduardo De La Riva
Ricardo Lara
Jessica Torres
CITY CLERK
Vacant
CITY TREASURER
Mary Mariscal
CITY MANAGER
Jennifer E. Vasquez
CITY ATTORNEY
Roxanne Diaz
III. COVID-19 MEETING PROCEDURES
PUBLIC ADVISORY: This meeting will be conducted pursuant to the provisions of Government Code Section 54953(e) (as amended by AB 361), which authorizes teleconferenced meetings under the Brown Act in compliance with Government Code Section 54953(e) during a proclaimed State of Emergency. For this regular meeting, members of the City Council and City Staff are permitted to attend the meeting by teleconference and such teleconference locations are not accessible to the public and are not subject to special posting requirements. Some members of the City Council and staff may attend the meeting at City Hall in the City Council Chambers located at 4319 E.
Slauson Avenue. The City Council Chambers, however, will not be open to the Public. The
meeting will be broadcast using the Zoom platform as well as broadcasted live on the City's Facebook page.
To maximize public health and safety while still maintaining transparency and public access, members of the public can observe and participate in the meeting virtually via Zoom or follow the meeting live via the City’s Facebook page. Public participation is highly encouraged using the virtual platform. Below is information on how the public may observe and participate in the meeting.
If you would like to speak on an agenda item, you can access the meeting remotely via zoom :
Join by phone 1-669-900-6833 Enter Meeting ID: 829 7770 3486 Passcode: 036379 OR
Please click the link below to join the webinar:
https://us02web.zoom.us/j/82977703486?pwd=YUs2YzgwQU80WnRzVzdLSTlaTnRVQT09 Passcode: 036379
To participate in the meeting by providing public comment via teleconference/video conference:
Live real-time verbal public comments may be made by members of the public joining the meeting via Zoom. Zoom access information is provided above. Use the “raise hand” feature (for those joining by phone, press *9 to “raise hand”) during the public participation period for agenda items or during the public participation period for non-agenda items. The Zoom Host will call on people to speak by name provided or last 4 digits of phone number.
Before the meeting: You can also submit your public comments for the record in advance by 4:30 pm the day of the meeting by email to [email protected]; or if you are unable to email, please call the City Clerk's Office at (323) 562-5714. Your comment will be made part of the written record but will NOT be read verbally at the meeting.
In compliance with the Americans with Disabilities Act, if you need special assistance to participate in the Council meeting, please contact the City Clerk’s Office, (323) 562-5714 within 48 hours of the meeting.
IV. MAYOR, COUNCILMEMBERS AND STAFF COMMENTS
V. PUBLIC PARTICIPATION (Agenda Items; Time allotted: 3 minutes) Speakers wishing to address the City Council on an item on the agenda may use the instructions provided in section III. COVID - 19 MEETING PROCEDURES on page 1 of this agenda.
VI. PRESENTATIONS
PROCLAMATION RECOGNIZING DEVELOPMENTAL DISABILITIES AWARENESS MONTH
CITY OF MAYWOOD WOMEN'S HISTORY MONTH HONOREES
VII. PUBLIC HEARING
VIII. CONSENT CALENDAR
All matters listed under CONSENT CALENDAR are considered to be routine and can be acted on by one roll call vote. There will be no separate discussion of these items unless members of the City Council request specific items to be removed from the Consent Calendar for separate discussion or action.
1. MINUTES OF MARCH 9, 2022 CITY COUNCIL MEETING
2. RESOLUTION NO. 6228 OF THE CITY COUNCIL OF THE CITY OF MAYWOOD
AND SUCCESSOR AGENCY TO THE MAYWOOD COMMUNITY
REDEVELOPMENT AGENCY APPROVING THE WARRANTS FOR PAYMENT
3. MONTHLY CASH AND INVESTMENT REPORT TO THE CITY COUNCIL FOR FEBRUARY 2022
4. REVENUE REPORT FROM JULY 2021 - FEBRUARY 2022
5. AUTHORIZATION TO SOLICIT BIDS FOR GRAFFITI REMOVAL SERVICES FOR
THE COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) GRAFFITI REMOVAL PROGRAM FOR FISCAL YEARS 2022-2025 WITH A TWO ADDITONAL ONEYEAR EXTENSION PERIOD.
6. AUTHORIZE THE ISSUANCE OF A REQUEST FOR PROPOSALS (RFP) FOR THE
MAYWOOD EXPRESS SHUTTLE TRANSIT AND THE PARATRANSIT DIAL-A-RIDE OPERATIONS FOR FISCAL YEARS 2022-2027
IX. DISCUSSION/ACTION ITEMS
7. ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2021
8. CONSIDERATION OF APPROVING RESOLUTION NO. 6229 OF THE CITY
COUNCIL OF THE CITY OF MAYWOOD APPROVING THE ALLOCATION OF
PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FUNDS AND
AUTHORIZING THE MAYOR TO EXECUTE THE CONTRACT FOR FUNDING
9. CONSIDERATION OF APPROVING A REIMBURSEMENT AGREEMENT WITH
THE CITY OF BELL FOR SHELTER BEDS WITHIN THE SALVATION ARMY, BELL
SHELTER
10. DISCUSSION OF ESTABLISHING A VOLUNTEER PROGRAM THAT WILL
RECOGNIZE COMMUNITY MEMBERS WHO VOLUNTEER THEIR TIME AT CITY
SPECIAL EVENTS AND PROGRAMS
11. CONSIDERATION OF APPROVING THE COMMUNITY BENEFIT FUND APPLICATION FROM WOLFPACK PTO IN THE AMOUNT OF $10,000.
X. CLOSED SESSION
Conference with Legal Counsel, Existing Litigation (Administrative Hearing), California Government Code Section 54956.9(d)(1); Ramirez v. City of Maywood; Los Angeles County Civil Service Commission Case No. 19-281
XI. PUBLIC PARTICIPATION (Non-Agenda Items; Time allotted: 3 minutes) Speakers wishing to address the City Council on a non- agenda item you may use the instructions provided in section III. COVID - 19 MEETING PROCEDURES on page 1 of this agenda.
XII. ADJOURNMENT - The Adjourned Meeting of the Maywood City Council is Thursday, April 7, 2022 at 5:00 p.m.
PUBLIC ACCESS TO MEETING AGENDA AND AGENDA PACKETS
I, _______________________________, Shirley Quinones, Deputy City Clerk, hereby certify that this agenda was duly posted by law at 4319 E.
Slauson Avenue, Maywood, CA 90270 and the City Website. Any public record, relating to an open session agenda item, that is distributed within 72 hours prior to the meeting is available for public inspection at the Maywood City Hall, 4319 E. Slauson Avenue, Maywood CA 90270.
If you challenge in court any discussion or action taken concerning an item on this Agenda, you may be limited to rising only those issues you or someone else raised during the meeting or in written correspondence delivered to the City at or prior to the City's consideration of the item at the meeting. In compliance with the ADA, if you need special assistance for the meeting, call (323) 562-5723 within 72 hours prior to the meeting so the City can make reasonable arrangements to ensure accessibility.
AGENDA 1
ITEM NO. _____
MINUTES
REGULAR MEETING OF THE MAYWOOD CITY COUNCIL AND THE
SUCCESSOR AGENCY TO THE MAYWOOD COMMUNITY
REDEVELOPMENT AGENCY
WEDNESDAY, MARCH 9, 2022 AT 7:00 PM
I. CALL TO ORDER/ROLL CALL
Mayor Marquez called to order at approximately 7:01 p.m.
II. CITY OFFICIALS
MAYOR CITY CLERK
Heber Marquez (present) Vacancy
MAYOR PRO TEM CITY TREASURER
Frank Garcia (teleconference) Mary Mariscal (teleconference)
COUNCIL MEMBERS CITY MANAGER
Eduardo De La Riva (present) Jennifer E. Vasquez (present) Ricardo Lara (present)
Jessica Torres (teleconference) CITY ATTORNEY
Roxanne Diaz (teleconference)
STAFF PRESENT:
Hrant Manuelian, Finance Director (present)
Steve Fowler, Director of Building and Planning (present) Shirley Quiñones, Deputy City Clerk (present)
III. COVID-19 MEETING PROCEDURES
PUBLIC ADVISORY: THE CITY COUNCIL CHAMBERS ARE NOT OPEN TO THE PUBLIC pursuant to the provisions of Government Code Section 54953(e) (as amended by AB 361), which authorizes teleconferenced meetings under the Brown Act in compliance with Government Code Section 54953(e) during a proclaimed State of Emergency.
OBSERVERS WERE ABLE TO VIEW THE MEETING LIVESTREAMED VIA THE CITY’S FACEBOOK AT:
https://www.facebook.com/cityofmaywood OR BY ZOOM AT:
Teleconference 1-669-900-6833 Meeting ID: 847 5410 8531 Passcode: 746025 or
https://us02web.zoom.us/j/84754108531?pwd=Y1U3RDFoempRZlVxeEhkTWcyU1Z0UT09 Passcode: 746025
Live real-time verbal public comments were made by members of the public joining the meeting via the Zoom platform.
IV. MAYOR, COUNCILMEMBERS AND STAFF COMMENTS
Mayor, Council Members and City Manager provided community updates.
V. PUBLIC PARTICIPATION (Agenda Items; Time allotted: 3 minutes) The following spoke on Agenda items:
1) David Perez (via teleconference)
2) People Exhibit One (via teleconference)
3) Gerry Mayagoitia (via teleconference)
VI. PRESENTATIONS
RECOGNITION OF SERVICE AND PRESENTATION TO FLOR AGUILUZ FOR SERVING
AS CITY CLERK
Mayor Marquez recognized Flor Aguiluz for her dedication and service while serving as City Clerk.
RECOGNITION OF ANA FIGUEROA, THANKING HER FOR HER SERVICE TO THE CITY
OF MAYWOOD AS THE DISTRICT CHIEF OF STAFF FOR CONGRESSWOMAN LUCILLE ROYBAL-ALLARD (CA-40)
Mayor Marquez recognized Ana Figueroa for her years of service to Maywood during her tenure as District Chief of Staff for Congresswoman Lucille Roybal-Allard (CA-40).
SHERIFF'S UPDATE
Deputy Aguayo presented crime trends and updates for the City of Maywood.
VII. PUBLIC HEARING
None
VIII. CONSENT CALENDAR
1. MINUTES OF FEBRUARY 23, 2022 CITY COUNCIL MEETING
Motion to approve Minutes of February 23, 2022 City Council Meeting by De La Riva. Second by Lara. AYES: De La Riva, Lara, Torres, Garcia, Marquez . PASSES
2. RESOLUTION NO. 6226 OF THE CITY COUNCIL OF THE CITY OF MAYWOOD AND
SUCCESSOR AGENCY TO THE MAYWOOD COMMUNITY REDEVELOPMENT AGENCY
APPROVING THE WARRANTS FOR PAYMENT
Motion to adopt Resolution No. 6226 of the City Council of the City of Maywood and Successor Agency to the Maywood Community Redevelopment Agency Approving the Warrants for Payment by De La Riva. Second by Lara. AYES: De La Riva, Lara, Torres, Garcia, Marquez . PASSES
IX. DISCUSSION/ACTION ITEMS
3. DISCUSSION OF THE CIRCUMSTANCES OF THE COVID-19 STATE OF EMERGENCY
TO DETERMINE WHETHER THE LEGISLATIVE BODIES OF THE CITY OF MAYWOOD
WILL CONTINUE TO HOLD MEETINGS VIA TELECONFERENCING AND MAKING FINDINGS PURSUANT TO GOVERNMENT CODE SECTION 54953(e)(3).
Motion to make the findings under the provision of the Government Code to meet in person will present imminent risk to the health and safety of the attendees and therefore, to continue the virtual format for an additional 30 days and continue to allow the City's Legislative Bodies to hold meetings via teleconference under 54953(e)(3) by Mayor Pro Tem Garcia. Second by De La Riva. AYES: De La Riva, Lara, Torres, Garcia, Marquez . PASSES
4. RESOLUTION NO. 6227 APPROVING THE TERMS OF A PRIVATE PLACEMENT,
APPROVING THE FORM OF AND AUTHORIZING THE EXECUTION AND DELIVERY OF A
SITE LEASE, A LEASE AGREEMENT, A TRUST AGREEMENT, AUTHORIZING CERTAIN
ACTIONS IN CONNECTION WITH THE EXECUTION AND DELIVERY OF CERTIFICATES
OF PARTICIPATION IN THE AGGREGATE PRINCIPAL AMOUNT NOT TO EXCEED $2,600,000, AUTHORIZING CERTAIN PROFESSIONALS, AND OTHER MATTERS
RELATING THERETO
Motion to adopt Resolution No. 6227 of the City Council of the City of Maywood Approving the Terms of a Private Placement, Approving the Form of and Authorizing the Execution and Delivery of a Site Lease, A Lease Agreement, A Trust Agreement, Authorizing Certain Actions in Connection with the Execution and Delivery of Certificates of Participation in the Aggregate Principal Amount not to Exceed $2,600,000, Authorizing Certain Professionals, and other matters relating thereto by De La Riva. Second by Lara. AYES: De La Riva, Lara, Torres, Garcia, Marquez . PASSES
5. DISCUSSION AND DIRECTION REGARDING FILLING THE CITY CLERK VACANCY PURSUANT TO GOVERNMENT CODE SECTION 36512 CAUSED BY A RESIGNATION Direction given to staff to announce the vacancy for the City Clerk position and solicit applications through April 1, 2022.
X. CLOSED SESSION
None
XI. PUBLIC PARTICIPATION (Non-Agenda Items; Time allotted: 3 minutes) The following spoke on Non-Agenda items:
1) People Exhibit One (via teleconference)
2) David Perez (via teleconference)
3) Gerry Mayagoitia (via teleconference)
XII. ADJOURNMENT
Meeting adjourned at approximately 8:48 p.m. to the next meeting of the Maywood City Council, Wednesday, March 23, 2022 at 7:00 p.m.
_______________________________________
Heber Marquez, Mayor
ATTEST:
________________________________
Shirley Quiñones, Deputy City Clerk
AGENDA ITEM No. 2.
RESOLUTION NO. 6228
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MAYWOOD AND SUCCESSOR AGENCY TO THE MAYWOOD
COMMUNITY REDEVELOPMENT AGENCY APPROVING THE
WARRANTS FOR PAYMENT
WHEREAS, the following listed demands have been reviewed by the Director of Finance, and WHEREAS, the Director of Finance has certified to the accuracy and availability of funds for payment thereof, and
WHEREAS, the register of audited demands is hereby submitted to the City Council of the City of Maywood and Successor Agency to the Maywood Community Redevelopment Agency for approval.
NOW, THEREFORE, BE IT RESOLVED, that the listed Warrants and Wire Transfers/Automated Clearing House (ACH) Transactions for $260,889.02 are hereby ratified:
Exhibit A – Summary of Warrants and Wire Transfers/ACH Transactions Exhibit B – Detail of Warrants
PASSED, APPROVED AND ADOPTED THIS 23rd day of March, 2022. _______________________
Heber Marquez, Mayor
ATTEST: APPROVED AS TO FORM:
_____________________________ ___________________________ Shirley Quiñones, Deputy City Clerk Roxanne Diaz, City Attorney
STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES )
CITY OF MAYWOOD )
I, Shirley Quiñones , Deputy City Clerk of the City Council of the City of Maywood, do hereby certify that foregoing Resolution No. 6228 was duly passed and adopted by the City Council of the City of Maywood, at a regular meeting of the City Council held on the 23rd day of March, 2022 by the following roll call vote, to wit:
AYES:
NAYES:
ABSENT:
ABSTAINED:
_____________________________
Shirley Quiñones , Deputy City Clerk
City of Maywood
Summary Warrants for Payment and Wire Transfers/ACH Transactions Council Meeting Date
Wednesday, March 23, 2022
Accounts Payable Amount
Accounts Payable prepaid warrants for payment: Checks No.
Accounts Payable regular warrants for payment: Checks No. 089415 - 089454 $ 155,044.56 Sub-total $ 155,044.56
Wire Transfers/ACH Transactions
03/03/22 Payroll Pay Period 2/13/22-2/26/22 $ 42,519.09 03/03/22 CalPERS Health Premium March 2022 $ 32,172.70
03/03/22 California Joint Powers Insurance Authority (CJPIA) repayment plan agreement - February 2022 $ 22,355.58 03/04/22 8x8 Inc - Monthly Phone Maintenance $ 446.36
03/09/22 CalPERS Employer Contribution 2/13/22 - 2/26/22 $ 7,031.82 03/14/22 US Bank - Analysis Service Charge $ 1,318.91
Sub-total $ 105,844.46
Total Demands $ 260,889.02
1 of 3
Detail Warrants for Payment
Warrants No. 089415 to 089454
Check No. Prepaids Date Vendor Name Check Amt Transaction Description Fund 089415 3/15/2022 Alta Environmental 5,214.50 Prof Services Feb 2022 Ms4 NPDES Permit General Fund - 01 089416 3/15/2022 Amazon Capital Services 26.93 Tools General Fund - 01 089417 3/15/2022 AT&T 25.17 Elevator Emergency Phone Line 02/01/22 to 02/28/22 General Fund - 01 089418 3/15/2022 Bordin Semmer LLP 4,684.62 Legal Services - August 2021 - January 2022 Mena Claim Legal Services - September 2021 - January 2022 Tarin Claim General Fund - 01
089419 3/15/2022 Bremer, Whyte, Brown & O'Meara, LLP 1,015.45 Legal Services - October 2021 - November 2021 Gonzalez Claim General Fund - 01 089420 3/15/2022 Brinks, Inc. 206.04 February 2022 Addiition Cash Handling Service March 2022 Cash Handling Service General Fund - 01
089421 3/15/2022 Colantuono, Highsmith & Whatley, PC 67.26 Under Collection of Utility User Taxes General Fund - 01 089422 3/15/2022 CoreLogic Solutions, LLC. 150.00 Property Finder for February 2022 General Fund - 01 089423 3/15/2022 Crosstown Electrical & Data, Inc. 1,937.92 Electrical Work Preventive Maintenance February 2022
Street Lighting - 62
089424 3/15/2022 Dewey Pest Control 137.00 March 2022 Pest Control General Fund - 01 089425 3/15/2022 DIANA CHO & ASSOCIATES 4,632.50 CDBG Consult Serv January 2022 CDBG Consulting Pavement Rehab January 2022
CDBG Consulting Pavement Rehab Proj February 2022
CDBG - 16
089426 3/15/2022 Division of the State Architect 491.50 DSA Fees Collected January 2021 - December 2021 General Fund - 01 089427 3/15/2022 George Hill Company 1,426.50 City Claims/Adjuster February 2022 General Fund - 01 089428 3/15/2022 Global Equipment Company, Inc. 3,287.64 Public Works General Fund - 01 089429 3/15/2022 Graffiti Protective Coatings 1,290.00 Graffiti Removal Bus Shelters - February 2022 General Fund - 01 089430 3/15/2022 Home Depot Commercial Acct Pro 60.98 Building Supplies General Fund - 01 089431 3/15/2022 Infinity Technologies 3,680.00 Monthly IT Fee for month of February 2022 General Fund - 01 089432 3/15/2022 Los Angeles Regional Food Bank 150.00 Mobile Food Pantry General Fund - 01 089433 3/15/2022 L.B. Johnson Hardware Co. 293.81 Maintenance Public Works Supplies
Supplies General Fund - 01
089434 3/15/2022 LGP Equipment Rentals 358.32 Charging Station Upgrades Street Maintenance
General Fund - 01
Gas Tax - 04
089435 3/15/2022 Maywood Car Wash 219.69 Car Wash February 2022 (Car) Car Wash February 2022 (Gas) General Fund - 01
City of Maywood
2 of 3
089436 3/15/2022 Maywood Mutual Water No.1 552.28 3530 E. Slauson Ave. 12/16/21 to 02/19/22 3630 E. Slauson Ave. 12/16/21 to 2/19/22
3728 E. Slauson Ave. 12/16/21 to 02/19/22
4400 E. Slauson Ave. 12/16/21 to 02/19/22
4400 E. Slauson Ave. 12/16/21 to 02/19/22
5921 Atlantic Ave. 12/16/21 to 02/19/22
5961 Atlantic Ave 12/16/21 to 02/19/22
6027 Atlantic Ave. 12/16/21 to 02/19/22
6135 Atlantic Ave. 12/16/21 to 02/19/22 General Fund - 01 089437 3/15/2022 Maywood Mutual Water Co. No.2 698.12 3409 E. Slauson Ave. 12/21/21 to 02/24/22 3626 E. 56th St/Pixley Pk 12/21/21 to 02/24/22
4301 E.Slauson Ave. 12/20/21 to 02/22/22
4323 E. Slauson Ave 12/20/21 to 02/22/22
5313 Pine Ave. 12/22/21 to 02/24/22
5515 Maywood Ave. 12/21/21 to 02/24/22
City Hall 12/20/21 to 02/22/22
General Fund - 01
089438 3/15/2022 Tri-City Mutual Water Company 1,436.45 5950 Walker Ave 02/01/22 to 02/28/22 General Fund - 01 089439 3/15/2022 Metro Transit Services 36,453.27 Public Transportation Services & Dial-a-ride Feb 2022 Prop A - 09 089440 3/15/2022 Susan Contreras dba Municipal Waste Solutions 6,317.50 Solid Waste Consulting Services February 2022 General Fund - 01
089441 3/15/2022 Nancy Rodriguez 619.26 Hotel Expense Reimbursement - PARMA Conference General Fund - 01 089442 3/15/2022 Nichols Consutling Engineers, CHTD dba NCE 643.75 Pavement Management Project Professional Svcs Gas Tax - 04
089443 3/15/2022 North Star Landcare 233.10 Landscape General Fund - 01 089444 3/15/2022 County of LA Dept of Public Works 4,165.88 Maywood Sewer Repairs Balance Atlantic & Slauson General Fund - 01 089445 3/15/2022 QDoxs 118.53 Copier Base Charge for February 2022 General Fund - 01 089446 3/15/2022 Richards, Watson & Gershon 42,178.98 Legal Services - adv. Bell Gardens, LLC. January 2022 Legal Services - NL Industries January 2022
Legal Services adv. Commercial Waste January 2022
Legal Services adv. Jose Mendoza January 2022
General Fund - 01
089447 3/15/2022 Ron's Maintenance, Inc 4,114.00 Storm Drain Maintenance Gas Tax - 04
089448 3/15/2022 Richards, Watson & Gershon 3,451.00 General Legal Services January 2022 General Fund - 01
089449 3/15/2022 Southern California Edison 22,618.27 Various Locatiions #700405141156 02/01/22 to 02/28/22 Various Locatiions #700405141156 02/01/22 to 02/28/22
Various Locations #700405260081 02/01/22 to 02/28/22
Various Locatiions #700405141156 02/01/22 to 02/28/22 Gas Tax - 04 Street Lighting - 62
089450 3/15/2022 Sparkletts Drinking Water Corp 114.05 City Hall Office Water February 2022 General Fund - 01 City of Maywood
Detail Warrants for Payment
Warrants No. 089415 to 089454
Check No. Prepaids Date Vendor Name Check Amt Transaction Description Fund
3 of 3
089451 3/15/2022 Time Warner Cable 634.10 Internet & Phone Service March 2022 General Fund - 01 089452 3/15/2022 Quadient Finance, USA, Inc. 860.19 Acct # 7900011002060328 Postage Machine General Fund - 01 089453 3/15/2022 Transtech Engineers, Inc 405.00 City Engineering Services thru 12/31/21 General Fund - 01 089454 3/15/2022 Xerox Financial Services 75.00 Lease Payment 02/15/22 to 03/14/22 General Fund - 01 TOTAL: $ 155,044.56
City of Maywood
Detail Warrants for Payment
Warrants No. 089415 to 089454
Check No. Prepaids Date Vendor Name Check Amt Transaction Description Fund
AGENDA REPORT
CITY OF MAYWOOD
AGENDA ITEM NO. 3.
DATE: March 23, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: HRANT MANUELIAN, FINANCE DIRECTOR
SUBJECT: MONTHLY CASH AND INVESTMENT REPORT TO THE CITY COUNCIL FOR FEBRUARY 2022
RECOMMENDATION:
Staff recommends that the City Council receive and file the cash and investment report for February 2022.
BACKGROUND:
To maintain transparency and provide information to the City Council, the City’s Finance Department prepares a monthly cash and investment report for the City Council’s review. The report will show the City’s cash position at month end as well as investments.
DISCUSSION:
The City has historically only invested its cash in the Local Agency Investment Fund (LAIF), which is a State fund with low risk and also low investment returns. As of February 28, 2022, the City has approximately $9.8M invested in LAIF. The current return as of 2/28/2022 is 0.29%. In the June 24, 2020 City Council meeting, the Maywood City Council approved the City to invest in the PERS section 115 trust accounts for both the PERS pension liability and the Other Post Employment Benefits (OPEB) liability.
On September 22, 2020, the City invested $250,000 into each of the section 115 trust accounts. The City transferred $250,000 into each of the accounts for a total of $500,000. The City has since increased its position in each of these funds by an additional $750,000 each. To date the City has invested $1,000,000 in each fund for a total of $2,000,000. The expected annual return on these accounts is 3%-5%. The funds used to invest in the accounts come from unrestricted general funds as the eventual expenditures are also general fund expenditures.
The attached report shows the cash and investments as of February 28, 2022. The cash and investment balances are across all funds of the City and includes restricted, unrestricted, and budgeted amounts. These balances do not represent the available balance for spending as most of these are either restricted or have already been appropriated for in the City budget. The purpose of this report is to show the cash and investment balances as of the reported on date only and does not represent the City’s available fund balance.
The investment program provides sufficient liquidity to meet six months of estimated expenditures. All investments are in compliance with California state code 503600 and the City of Maywood Investment Policy.
LEGAL REVIEW:
The City Attorney has reviewed this report.
FISCAL IMPACT:
There is no fiscal impact involved with this action.
ATTACHMENT(S)
1. Attachment No. 1 Cash and Investment Report
City of Maywood
Cash and Investments Report
As of February 28, 2022
Ending Balance
Description Type 2/28/2022
US Bank Cash 8,065,821.29
Local Agency Investment Fund LAIF 9,885,128.87
CalPers California Employers' Retiree Benefit Trust (CERBT) Section 115 Trust 1,062,283.60 CalPers California Employers' Pension Prefunding Trust (CEPPT) Section 115 Trust 1,003,137.61 20,016,371.37
AGENDA REPORT
CITY OF MAYWOOD
AGENDA ITEM NO. 4.
DATE: March 23, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: HRANT MANUELIAN, FINANCE DIRECTOR
SUBJECT: REVENUE REPORT FROM JULY 2021 - FEBRUARY 2022
RECOMMENDATION:
Staff recommends that the City Council receive and file the Revenue Report from July 2021 – February 2022.
BACKGROUND:
In an effort to maintain transparency, the City’s Finance Department prepares a monthly Revenue report for the City Council’s review. The Revenue Report is a tool used by the Council to monitor and oversee the financial health of the City.
DISCUSSION:
The attached analysis compares prior YTD and current YTD Revenue The total revenue received from July 2021 – February 2022 totaled $14,830,799.40, which is 23.51% higher than the same period last year.
GENERAL FUND - The total General Fund received totaled $7,583,324.10, which is 10.86% lower than the same period last year. This decrease is due to the CARES Act money that the City received last year, which were one time revenues from the federal government to offset the effect of the COVID pandemic. Additionally, there is a 40.69% decrease in Cannabis sales tax compared to last year.
However, the City is on track to reach the FY 2022 budget. This decrease has been partially offset by increases in General sales tax, business license, and Vehicle License Fee revenues. SPECIAL REVENUE FUND - The total Special Revenue Fund received totaled $7,247,565.30 which is 107.07% higher than the same period last year. The contributing factor for the difference in Special Revenue Fund is due to the payment received from the American Rescue Plan Act of 2021 (ARPA).
These Funds support cities in mitigating the fiscal effects stemming from the public health emergency caused by COVID-19. The first of two installments was received in the amount of $3,226,257, and the second and final installment is expected to be received around May 2022.
LEGAL REVIEW:
The City Attorney has reviewed this report.
FISCAL IMPACT:
There is no fiscal impact involved with this item.
ATTACHMENT(S)
1. July 2021 - February 2022 - City of Maywood FY2021-22
C - Prior Fiscal Year to
Date Revenue
B - Current Fiscal
Year to Date Revenue
D - Current YTD
versus Prior YTD $
Difference
E - Current YTD Prior
YTD % Difference
G - Adopted Budget FY
2021-22
H - % of FY 2021-2022
YTD Revenue
Received
(C minus B) (C divided by B minus 1) (C divided by G)
GENERAL FUND TAXES: A tax is a compulsory monetary contribution to the City’s revenue, assessed and imposed by the City on the activities, Taxes: expenditure, income, occupation, privilege, property, etc., of individuals and organizations.
Franchise & Collectors Fee $174,038.65 $172,673.39 ($1,365.26) -0.78% $325,000.00 53.13% Property Taxes $543,920.51 $556,098.23 $12,177.72 2.24% $778,480.00 71.43% Utility Users Tax $643,060.51 $684,123.13 $41,062.62 6.39% $900,000.00 76.01% Transfer Tax (Real Estate) $15,008.68 $11,973.50 ($3,035.18) -20.22% $20,000.00 59.87% Transient Occupancy Tax $39,969.05 $53,327.79 $13,358.74 33.42% $60,000.00 88.88% Cannabis Sales Tax $2,172,590.95 $1,288,607.23 ($883,983.72) -40.69% $3,000,000.00 42.95% Sales Tax Revenue $1,134,354.58 $1,389,738.08 $255,383.50 22.51% $2,355,904.00 58.99% Taxes Totals $4,722,942.93 $4,156,541.35 ($566,401.58) -11.99% $7,439,384.00 55.87% GENERAL FUND FEES: A fee is a charge imposed on an individual for a service that the person chooses to receive. A fee may not exceed the estimated reasonable cost of providing the particular service or product for which the fee is charged, plus overhead. Fees are charged for specific services, and fee revenue may fund only those services and related expenses. LICENSES and Licenses & Permits: PERMITS are types of fees allowing for the operation within the City.
Compliance Program Fee $0.00 0.00% $45,000.00 0.00%
Residential & Building Permits $15,659.46 $12,171.12 ($3,488.34) -22.28% $29,500.00 41.26% Public Works Permit Fees $101,254.90 $101,828.00 $573.10 0.57% $50,000.00 203.66% Other Fees & Permits $22,128.55 $20,084.74 ($2,043.81) -9.24% $27,100.00 74.11% Occupancy Permits $15,982.50 $11,290.90 ($4,691.60) -29.35% $13,000.00 86.85% Building Permits $37,489.82 $50,566.55 $13,076.73 34.88% $60,000.00 84.28% Compliance and Review Fees - Cannabis $0.00 0.00% $105,000.00 0.00% Commercial Cannabis Renewal $14,960.00 ($14,960.00) 0.00% $0.00 0.00% Parking Permits $48,821.09 $40,138.90 ($8,682.19) -17.78% $90,000.00 44.60% Apartment License $17,150.83 $15,091.97 ($2,058.86) -12.00% $20,000.00 75.46% Business License $172,081.94 $190,592.58 $18,510.64 10.76% $190,000.00 100.31% Vehicle License Fee - LA County $1,557,095.00 $1,626,683.69 $69,588.69 4.47% $3,173,048.00 51.27% Licenses and Permits Totals $2,002,624.09 $2,068,448.45 $65,824.36 3.29% $3,802,648.00 54.39% GENERAL FUND CHARGES FOR SERVICES: Charges to cover administrative costs for the provision of services. Charges for Services:
Rubbish Assessment $45,324.86 $4,692.14 ($40,632.72) -89.65% $15,000.00 31.28%
Plan Check Fees $26,547.39 $40,943.42 $14,396.03 54.23% $45,000.00 90.99% Rents & Concessions $15,876.00 $15,876.00 $0.00 0.00% $24,000.00 66.15% Charges for Services Totals $87,748.25 $61,511.56 ($26,236.69) -29.90% $84,000.00 73.23% GENERAL FUND FINES AND FORFEITURES: Penalties imposed by the City in the form of money or goods for a violation of an ordinance, law, regulation Fines and Forfeitures: or rule.
Penalties: Apt & Bus License $3,432.75 $728.10 ($2,704.65) -78.79% $2,500.00 29.12% SEMC: Court Collections (DMV) $59,741.90 $54,942.30 ($4,799.60) -8.03% $100,000.00 54.94% Administrative Citations $10,700.00 $2,300.00 ($8,400.00) -78.50% $15,000.00 15.33% Parking Fines $171,334.94 $168,258.66 ($3,076.28) -1.80% $150,000.00 112.17% Fines and Forfeitures Totals $245,209.59 $226,229.06 ($18,980.53) -7.74% $267,500.00 84.57% GENERAL FUND LEASES AND CONCESSIONS: A rent or lease or payment for the use of a the City's property. Leases and Concessions:
Leased Property Rental Income $31,274.57 $31,184.68 ($89.89) -0.29% $39,345.00 79.26% Leases and Concessions Totals $31,274.57 $31,184.68 ($89.89) -0.29% $39,345.00 79.26% GENERAL FUND MISCELLANEOUS: A General Fund revenue not covered in another revenue category. Miscellaneous:
Good Corporate Citizen Program $0.00 0.00% $40,000.00 0.00% Interest Income $20,927.72 $7,213.43 ($13,714.29) -65.53% $16,500.00 43.72% Miscellaneous Revenue $44,239.16 $32,161.23 ($12,077.93) -27.30% $17,000.00 189.18% CARES Act Reimbursement $344,534.00 ($344,534.00) 0.00% $0.00 0.00% Other (Recycle + ABx1 Reimbursement) $0.00 0.00% $0.00 0.00% Miscellaneous Revenue Totals $409,700.88 $39,374.66 ($370,326.22) -90.39% $73,500.00 53.57% GENERAL FUND RETIREE PENSION LEVY: An amount of revenue from the property tax levy approved by the voters for the purpose of paying the cost to Retiree Pension Levy: the City of the Public Employees Retirement System (PERS).
Retiree Pension Levy $1,008,029.37 $999,944.34 ($8,085.03) -0.80% $1,158,911.00 86.28% Retiree Pension Levy Totals $1,008,029.37 $999,944.34 ($8,085.03) -0.80% $1,158,911.00 86.28% General Fund Revenue Totals $8,507,529.68 $7,583,234.10 ($924,295.58) -10.86% $12,865,288.00 58.94% SPECIAL REVENUE FUND SPECIAL REVENUE FUND: Collections of revenues in special funds that must be used for the established purposes of the funds to provide an extra level of accountability and transparency.
Gas Tax $383,346.59 $399,982.99 $16,636.40 4.34% $672,770.00 59.45% Transportation Development Act (TDA)
Bikeway $0.00 0.00% $20,448.00 0.00%
Proposition A $368,686.03 $473,519.18 $104,833.15 28.43% $563,507.00 84.03% Proposition C $305,807.36 $393,247.63 $87,440.27 28.59% $467,414.00 84.13% Measure R $229,798.75 $294,582.01 $64,783.26 28.19% $350,561.00 84.03% Measure M $261,168.65 $333,154.33 $71,985.68 27.56% $397,302.00 83.85% Senate Bill 1 (SB 1) $259,279.03 $277,488.12 $18,209.09 7.02% $536,044.00 51.77% C - Prior Fiscal Year to
Date Revenue
B - Current Fiscal
Year to Date Revenue
D - Current YTD
versus Prior YTD $
Difference
E - Current YTD Prior
YTD % Difference
G - Adopted Budget FY
2021-22
H - % of FY 2021-2022
YTD Revenue
Received
(C minus B) (C divided by B minus 1) (C divided by G)
Community Development Block Grant
(CDBG) $69,076.00 $138,289.00 $69,213.00 100.20% $718,020.00 19.26% Air Quality Management District (AQMD)
Grant $9,324.63 $9,091.68 ($232.95) -2.50% $36,375.00 24.99% Supplemental Law Enforcement Services
Fund (SLESF) Grant $156,726.58 $161,284.85 $4,558.27 2.91% $155,000.00 104.05% Measure A $0.00 0.00% $353,000.00 0.00%
Lighting & Landscaping $103,719.00 $101,050.97 ($2,668.03) -2.57% $189,000.00 53.47% Successor Agency Trust Fund - City of
Maywood serves as the Successor Agency
to the Maywood Redevelopment Agency
$1,185,570.00 $1,226,567.00 $40,997.00 3.46% $1,226,567.00 100.00% Sewer Fund $167,544.38 $163,050.54 ($4,493.84) -2.68% $299,000.00 54.53% Grant/Reimb (Fed/State/County) $50,000.00 $50,000.00 0.00% $531,000.00 9.42% Local Fiscal Recovery Fund $3,226,257.00 $3,226,257.00 0.00% $0.00 0.00% Special Revenue Totals $3,500,047.00 $7,247,565.30 $3,747,518.30 107.07% $6,516,008.00 111.23% Total Revenues $12,007,576.68 $14,830,799.40 $2,823,222.72 23.51% $19,381,296.00 76.52% C - Prior Fiscal Year to
Date Revenue
B - Current Fiscal
Year to Date Revenue
D - Current YTD
versus Prior YTD $
Difference
E - Current YTD Prior
YTD % Difference
G - Adopted Budget FY
2021-22
H - % of FY 2021-2022
YTD Revenue
Received
(C minus B) (C divided by B minus 1) (C divided by G)
AGENDA REPORT
CITY OF MAYWOOD
AGENDA ITEM NO. 5.
DATE: March 23, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: KAREN INIGUEZ, COMMUNITY DEVELOPMENT ANALYST
SUBJECT: AUTHORIZATION TO SOLICIT BIDS FOR GRAFFITI REMOVAL SERVICES FOR THE
COMMUNITY DEVELOPMENT BLOCK GRANT (CDBG) GRAFFITI REMOVAL PROGRAM FOR FISCAL YEARS 2022-2025 WITH A TWO ADDITONAL ONE-YEAR EXTENSION PERIOD.
RECOMMENDATION:
Staff recommends that the City Council approve the request to solicit bids for graffiti removal services for the Community Development Block Grant (CDBG) Graffiti Removal Program (60141-22) for Fiscal Years (FY) 2022-2025 with two additional one-year extension periods.
BACKGROUND:
The City of Maywood receives approximately $421,488 annually in CDBG funds through a program established by the United States Department of Housing and Urban Development (HUD). These funds provide housing, economic and community development opportunities which primarily benefit persons of low-andmoderate-income levels and/or aid in the prevention or elimination of blighted conditions.
On January 26, 2022, the Maywood City Council approved the overall CDBG Program budget for FY 2022- 2023 including the Graffiti Removal Program with an anticipated budget of $84,298.
DISCUSSION:
The Graffiti Removal Program provides for the removal of graffiti from public areas and private property that is visible from the public right-of-way. CDBG funds pay for a portion of the graffiti removal contractor services.
The current graffiti removal services contract is with Graffiti Protective Coatings, Inc., (GPC), and will end on June 30, 2022.
A Request for Proposals will be issued to obtain proposals for graffiti removal services covering July 1, 2022, through June 30, 2025. The term of the contract may be extended upon request and approval by the City on an annual basis for an additional two (2) years until June 30, 2027.
The estimated procurement schedule is as follows:
03/25/2022: Release of Requests for Proposals
04/25/2022: Proposal Due Date
05/03/2022: Proposal Review/Evaluation
06/08/2022: Award of Contract (City Council Action)
LEGAL REVIEW:
The City Attorney has reviewed this report.
FISCAL IMPACT:
There is no fiscal impact involved with this authorization to solicit bids for graffiti removal services. Once a contract is awarded, budget appropriations will be made. Funding for the Graffiti Removal Program is provided by the CDBG Program and State Gas Tax Funds.
ATTACHMENT(S)
1. Professional Services Agreement Graffiti Removal
2. Request for Proposals for Graffiti Removal Services
1 CITY OF MAYWOOD
PROFESSIONAL SERVICES AGREEMENT
1. PARTIES AND DATE.
This Agreement is made and entered into this _ _ day of ____________, 2022 by and between the City of Maywood, a municipal organization organized under the laws of the State of California with its principal place of business at 4319 East Slauson Avenue, Maywood, California 90270 (“City”) and _________________________ , a graffiti removal company with its principal place of business at __________________________________________. (“Contractor”). City and Contractor are sometimes individually referred to herein as “Party” and collectively as “Parties.”
2. RECITALS.
2.1 Contractor.
Contractor desires to perform and assume responsibility for the provision of certain professional services required by the City on the terms and conditions set forth in this Agreement. Contractor represents that it is experienced in providing Graffiti Removal services to public clients, is licensed in the State of California, and is familiar with the plans of City.
2.2 Project.
City desires to engage Contractor to render such services for the CDBG Graffiti Removal Program, No. 601410-22 project (“Project”) as set forth in this Agreement.
3. TERMS.
3.1 Scope of Services and Term.
3.1.1 General Scope of Services. Contractor promises and agrees to furnish to the City all labor, materials, tools, equipment, services, and incidental and customary work necessary to fully and adequately supply the professional graffiti removal services necessary for the Project (“Services”). The Services are more particularly described in Exhibit “A” attached hereto and incorporated herein by reference. All Services shall be subject to, and performed in accordance with, this Agreement, the exhibits attached hereto and incorporated herein by reference, and all applicable local, state and federal laws, rules and regulations.
3.1.2 Term. The term of this Agreement shall be from July 1, 2022 to June 30, 2023, unless earlier terminated as provided herein. Contractor shall complete the Services within the term of this Agreement, and shall meet any other established schedules and deadlines.
Additionally, there shall be four (4) one-year options to renew the Agreement for FY 2023-2024, FY 2024-2025, FY 2025-2026, and FY 2026-2027 with the mutual written consent of both parties.
2 3.2 Responsibilities of Contractor.
3.2.1 Control and Payment of Subordinates; Independent Contractor. The Services shall be performed by Contractor or under its supervision. Contractor will determine the means, methods and details of performing the Services subject to the requirements of this Agreement. City retains Contractor on an independent contractor basis and not as an employee.
Contractor retains the right to perform similar or different services for others during the term of this Agreement. Any additional personnel performing the Services under this Agreement on behalf of Contractor shall also not be employees of City and shall at all times be under Contractor’s exclusive direction and control. Contractor shall pay all wages, salaries, and other amounts due such personnel in connection with their performance of Services under this Agreement and as required by law. Contractor shall be responsible for all reports and obligations respecting such additional personnel, including, but not limited to: social security taxes, income tax withholding, unemployment insurance, disability insurance, and workers’ compensation insurance.
3.2.2 Schedule of Services. Contractor shall perform the Services expeditiously, within the term of this Agreement, and in accordance with the Schedule of Services set forth in Exhibit “A” attached hereto and incorporated herein by reference.
Contractor represents that it has the professional and technical personnel required to perform the Services in conformance with such conditions. In order to facilitate Contractor’s conformance with the Schedule, City shall respond to Contractor’s submittals in a timely manner. Upon request of City, Contractor shall provide a more detailed schedule of anticipated performance to meet the Schedule of Services.
3.2.3 Conformance to Applicable Requirements. All work prepared by Contractor shall be subject to the approval of City.
3.2.4 Substitution of Key Personnel. Contractor has represented to City that certain key personnel will perform and coordinate the Services under this Agreement. Should one or more of such personnel become unavailable, Contractor may substitute other personnel of at least equal competence upon written approval of City. In the event that City and Contractor cannot agree as to the substitution of key personnel, City shall be entitled to terminate this Agreement for cause. As discussed below, any personnel who fail or refuse to perform the Services in a manner acceptable to the City, or who are determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project or a threat to the safety of persons or property, shall be promptly removed from the Project by the Contractor at the request of the City. The key personnel for performance of this Agreement are as follows: ______________.
3.2.5 City’s Representative. The City hereby designates Jennifer Vasquez, City Manager, or her designee, to act as its representative for the performance of this Agreement (“City’s Representative”). City’s Representative shall have the power to act on behalf of the City for all purposes under this Contract. Contractor shall not accept direction or orders from any person other than the City’s Representative or his or her designee.
3 3.2.6 Contractor’s Representative. Contractor hereby designates Barry Steinhart, General Manager, or his or her designee, to act as its representative for the performance of this Agreement (“Contractor’s Representative”). Contractor’s Representative shall have full authority to represent and act on behalf of the Contractor for all purposes under this Agreement. The Contractor’s Representative shall supervise and direct the Services, using his best skill and attention, and shall be responsible for all means, methods, techniques, sequences and procedures and for the satisfactory coordination of all portions of the Services under this Agreement.
3.2.7 Coordination of Services. Contractor agrees to work closely with City staff in the performance of Services and shall be available to City’s staff, contractors and other staff at all reasonable times.
3.2.8 Standard of Care; Performance of Employees. Contractor shall perform all Services under this Agreement in a skillful and competent manner, consistent with the standards generally recognized as being employed by professionals in the same discipline in the State of California. Contractor represents and maintains that it is skilled in the professional calling necessary to perform the Services. Contractor warrants that all employees and subcontractors shall have sufficient skill and experience to perform the Services assigned to them. Finally, Contractor represents that it, its employees and subcontractors have all licenses, permits, qualifications and approvals of whatever nature that are legally required to perform the Services, including a City Business License, and that such licenses and approvals shall be maintained throughout the term of this Agreement. As provided for in the indemnification provisions of this Agreement, Contractor shall perform, at its own cost and expense and without reimbursement from the City, any services necessary to correct errors or omissions which are caused by the Contractor’s failure to comply with the standard of care provided for herein. Any employee of the Contractor or its sub-contractors who is determined by the City to be uncooperative, incompetent, a threat to the adequate or timely completion of the Project, a threat to the safety of persons or property, or any employee who fails or refuses to perform the Services in a manner acceptable to the City, shall be promptly removed from the Project by the Contractor and shall not be re-employed to perform any of the Services or to work on the Project.
3.2.9 Laws and Regulations. Contractor shall keep itself fully informed of and in compliance with all local, state and federal laws, rules and regulations in any manner affecting the performance of the Project or the Services, including all Cal/OSHA requirements, and shall give all notices required by law. Contractor shall be liable for all violations of such laws and regulations in connection with Services. If the Contractor performs any work knowing it to be contrary to such laws, rules and regulations and without giving written notice to the City, Contractor shall be solely responsible for all costs arising therefrom. Contractor shall defend, indemnify and hold City, its officials, directors, officers, employees and agents free and harmless, pursuant to the indemnification provisions of this Agreement, from any claim or liability arising out of any failure or alleged failure to comply with such laws, rules or regulations.
4 3.2.10 Insurance.
3.2.10.1 Time for Compliance. Contractor shall not commence Work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section.
3.2.10.2 Minimum Requirements. Contractor shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Contractor, its agents, representatives, employees or subcontractors.
Contractor shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement. Such insurance shall meet at least the following minimum levels of coverage:
(A) Minimum Scope of Insurance. Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability:
Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. (B) Minimum Limits of Insurance. Contractor shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of $1,000,000 per accident for bodily injury or disease.
3.2.10.3 Professional Liability. Contractor shall procure and maintain, and require its sub-contractors to procure and maintain, for a period of five (5) years following completion of the Project, errors and omissions liability insurance appropriate to their profession. Such insurance shall be in an amount not less than $1,000,000 per claim, and shall be endorsed to include contractual liability.
3.2.10.4 Insurance Endorsements. The insurance policies shall contain the following provisions, or Contractor shall provide endorsements on forms supplied or approved by the City to add the following provisions to the insurance policies:
(A) General Liability. The general liability policy shall be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insured with respect to the Work or operations performed by or on behalf of the Contractor, including materials, parts or equipment furnished in
5 connection with such work; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor’s scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Contractor’s insurance and shall not be called upon to contribute with it in any way.
(B) Automobile Liability. The automobile liability policy shall be endorsed to state that: (1) the City, its directors, officials, officers, employees, agents and volunteers shall be covered as additional insureds with respect to the ownership, operation, maintenance, use, loading or unloading of any auto owned, leased, hired or borrowed by the Contractor or for which the Contractor is responsible; and (2) the insurance coverage shall be primary insurance as respects the City, its directors, officials, officers, employees, agents and volunteers, or if excess, shall stand in an unbroken chain of coverage excess of the Contractor’s scheduled underlying coverage. Any insurance or self-insurance maintained by the City, its directors, officials, officers, employees, agents and volunteers shall be excess of the Contractor’s insurance and shall not be called upon to contribute with it in any way. (C) Workers’ Compensation and Employers Liability
Coverage. The insurer shall agree to waive all rights of subrogation against the City, its directors, officials, officers, employees, agents and volunteers for losses paid under the terms of the insurance policy which arise from work performed by the Contractor. (D) All Coverages. Each insurance policy required by this Agreement shall be endorsed to state that: (A) coverage shall not be suspended, voided, reduced or canceled except after thirty (30) days prior written notice by certified mail, return receipt requested, has been given to the City; and (B) any failure to comply with reporting or other provisions of the policies, including breaches of warranties, shall not affect coverage provided to the City, its directors, officials, officers, employees, agents and volunteers.
3.2.10.5 Separation of Insureds; No Special Limitations. All insurance required by this Section shall contain standard separation of insureds provisions. In addition, such insurance shall not contain any special limitations on the scope of protection afforded to the City, its directors, officials, officers, employees, agents and volunteers.
3.2.10.6 Deductibles and Self-Insurance Retentions. Any deductibles or self-insured retentions must be declared to and approved by the City. Contractor shall guarantee that, at the option of the City, either: (1) the insurer shall reduce or eliminate such deductibles or self-insured retentions as respects the City, its directors, officials, officers, employees, agents and volunteers; or (2) the Contractor shall procure a bond guaranteeing payment of losses and related investigation costs, claims and administrative and defense expenses.
3.2.10.7 Acceptability of Insurers. Insurance is to be placed with insurers with a current A.M. Best’s rating no less than A:VIII, licensed to do business in California, and satisfactory to the City.
6 3.2.10.8 Verification of Coverage. Contractor shall furnish City with original certificates of insurance and endorsements effecting coverage required by this Agreement on forms satisfactory to the City. The certificates and endorsements for each insurance policy shall be signed by a person authorized by that insurer to bind coverage on its behalf, and shall be on forms provided by the City if requested. All certificates and endorsements must be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, at any time.
3.2.11 Safety. Contractor shall execute and maintain its work so as to avoid injury or damage to any person or property. In carrying out its Services, the Contractor shall at all times be in compliance with all applicable local, state and federal laws, rules and regulations, and shall exercise all necessary precautions for the safety of employees appropriate to the nature of the work and the conditions under which the work is to be performed. Safety precautions as applicable shall include, but shall not be limited to: (A) adequate life protection and life saving equipment and procedures; (B) instructions in accident prevention for all employees and subcontractors, such as safe walkways, scaffolds, fall protection ladders, bridges, gang planks, confined space procedures, trenching and shoring, equipment and other safety devices, equipment and wearing apparel as are necessary or lawfully required to prevent accidents or injuries; and (C) adequate facilities for the proper inspection and maintenance of all safety measures.
3.2.12 Water Quality Management and Compliance.
3.2.12.1 Water Quality Management and Compliance. Contractor shall keep itself and all subcontractors, staff, and employees fully informed of and in compliance with all local, state and federal laws, rules and regulations that may impact, or be implicated by the performance of the Project or the Services including, without limitation, all applicable provisions of the Federal Water Pollution Control Act (33 U.S.C. §§ 1300); the California Porter-Cologne Water Quality Control Act (Cal Water Code §§ 13000-14950); the City’s ordinances regulating discharges of storm water; and any and all regulations, policies, or permits issued pursuant to any such authority regulating the discharge of pollutants, as that term is used in the Porter-Cologne Water Quality Control Act, to any ground or surface water in the State.
3.2.12.2 Liability for Non-compliance. Failure to comply with the laws, regulations and policies described in paragraph 3.2.12.1 is a violation of law that may subject Contractor or City to penalties, fines, or additional regulatory requirements. Contractor hereby agrees to indemnify, hold harmless and defend (with counsel selected by the City) City, its officers, agents and employees from and against any and all fines, penalties, claims or other regulatory requirements imposed as a result of Contractor’s non-compliance with the laws, regulations and policies described in paragraph 3.2.12.1, unless such non-compliance is the result of the sole established negligence, willful misconduct or active negligence of the City, its officials, officers, agents, employees or authorized volunteers.
3.2.12.3 Training. In addition to the standard of care requirements set forth in paragraph 3.2.8, Contractor warrants that all employees and subcontractors shall have
7 sufficient skill and experience to perform the Services assigned to them without impacting water quality in violation of the laws, regulations and policies described in paragraph 3.2.12.1.
Contractor further warrants that it, its employees and subcontractors will receive adequate training, as determined by City, regarding the requirements of the laws, regulations and policies described in paragraph 3.2.12.1 as they may relate to the Services provided under this Agreement. Upon request, City will provide Contractor with a list of training programs that meet the requirements of this paragraph.
3.3 Fees and Payments.
3.3.1 Compensation. Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under this Agreement at the rates set forth in Exhibit ”B” attached hereto and incorporated herein by reference. The total compensation shall not exceed __________________________________ dollars. ($__________) without written approval of the City Council. Extra Work may be authorized, as described below, and if authorized, will be compensated at the rates and manner set forth in this Agreement.
3.3.2 Payment of Compensation. Contractor shall submit to City a monthly itemized statement which indicates work completed and hours of Services rendered by Contractor. The statement shall describe the amount of Services and supplies provided since the initial commencement date, or since the start of the subsequent billing periods, as appropriate, through the date of the statement. City shall, within thirty (30) days of receiving such statement, review the statement and pay all approved charges thereon.
3.3.3 Reimbursement for Expenses. Contractor shall not be reimbursed for any expenses unless authorized in writing by City and based upon the approved rates of Los Angeles County Auditor-Controller.
3.3.4 Extra Work. At any time during the term of this Agreement, City may request that Contractor perform Extra Work. As used herein, “Extra Work” means any work which is determined by City to be necessary for the proper completion of the Project, but which the parties did not reasonably anticipate would be necessary at the execution of this Agreement.
Contractor shall not perform, nor be compensated for, Extra Work without written authorization from City’s Representative.
3.3.5 Prevailing Wages. Contractor is aware of the requirements of California Labor Code Section 1720, et seq., and 1770, et seq., as well as California Code of Regulations, Title 8, Section 1600, et seq., (“Prevailing Wage Laws”), which require the payment of prevailing wage rates and the performance of other requirements on “public works” and “maintenance” projects. If the Services are being performed as part of an applicable “public works” or “maintenance” project, as defined by the Prevailing Wage Laws, and if the total compensation is $1,000 or more, Contractor agrees to fully comply with such Prevailing Wage Laws. City shall provide Contractor with a copy of the prevailing rates of per diem wages in effect at the commencement of this Agreement. Contractor shall make copies of the prevailing rates of per diem wages for each craft, classification or type of worker needed to execute the Services available to interested parties upon request, and shall post copies at the Contractor’s principal place of business and at the project site. Contractor shall defend, indemnify and hold
8 the City, its elected officials, officers, employees and agents free and harmless from any claim or liability arising out of any failure or alleged failure to comply with the Prevailing Wage Laws.
3.3.6 Benefits. Contractor will not be eligible for any paid benefits for federal, social security, state workers’ compensation, unemployment insurance, professional insurance, medical/dental, or fringe benefits offered to others by the City.
3.4 Accounting Records.
3.4.1 Maintenance and Inspection. Contractor shall maintain complete, accurate and clearly identifiable records with respect to all costs and expenses incurred under this Agreement. Contractor shall maintain all such records and make them accessible for audit or examination for a period of five (5) years after final payments are issued and other pending matters are closed. Contractor shall allow a representative of City during normal business hours to examine, audit, and make transcripts or copies of such records and any other documents created pursuant to this Agreement. Contractor shall allow inspection of all work, data, documents, proceedings, and activities related to the Agreement for a period of five (5) years from the date of final payment under this Agreement.
3.5 General Provisions.
3.5.1 Termination of Agreement.
3.5.1.1 Grounds for Termination. This Agreement, or any part thereof, may be terminated by mutual consent of the Parties in writing or by either Party upon thirty (30) days written notice and delivery by certified mail or by personal delivery. Upon termination, Contractor shall be compensated only for those services which have been adequately rendered to City, and Contractor shall be entitled to no further compensation. Contractor may not terminate this Agreement except for cause. City may terminate this Agreement, or any part thereof, without cause.
3.5.1.2 Effect of Termination. If this Agreement is terminated as provided herein, City may require Contractor to provide all finished or unfinished Documents and Data and other information of any kind prepared by Contractor in connection with the performance of Services under this Agreement. Contractor shall be required to provide such document and other information within fifteen (15) days of the request.
3.5.1.3 Additional Services. In the event this Agreement is terminated in whole or in part as provided herein, City may procure, upon such terms and in such manner as it may determine appropriate, services similar to those terminated.
3.5.2 Delivery of Notices. All notices permitted or required under this Agreement shall be given to the respective parties at the following address, or at such other address as the respective parties may provide in writing for this purpose:
9 Contractor:
City:
City of Maywood
4319 E. Slauson Avenue
Maywood, CA 90270
Attn: Jennifer Vasquez, City Manager
Such notice shall be deemed made when personally delivered or when mailed, forty-eight (48) hours after deposit in the U.S. Mail, first class postage prepaid and addressed to the party at its applicable address. Actual notice shall be deemed adequate notice on the date actual notice occurred, regardless of the method of service.
3.5.3 Ownership of Materials and Confidentiality.
3.5.3.1 Documents & Data; Licensing of Intellectual Property. This Agreement creates a non-exclusive and perpetual license for City to copy, use, modify, reuse, or sublicense any and all copyrights, designs, and other intellectual property embodied in plans, specifications, studies, drawings, estimates, and other documents or works of authorship fixed in any tangible medium of expression, including but not limited to, physical drawings or data magnetically or otherwise recorded on computer diskettes, which are prepared or caused to be prepared by Contractor under this Agreement (“Documents & Data”). Contractor shall require all subcontractors to agree in writing that City is granted a non-exclusive and perpetual license for any Documents & Data the subcontractor prepares under this Agreement. Contractor represents and warrants that Contractor has the legal right to license any and all Documents & Data. Contractor makes no such representation and warranty in regard to Documents & Data which were prepared by design professionals other than Contractor or provided to Contractor by the City. City shall not be limited in any way in its use of the Documents and Data at any time, provided that any such use not within the purposes intended by this Agreement shall be at City’s sole risk.
3.5.3.2 Confidentiality. All ideas, memoranda, specifications, plans, procedures, drawings, descriptions, computer program data, input record data, written information, and other Documents and Data either created by or provided to Contractor in connection with the performance of this Agreement shall be held confidential by Contractor.
Such materials shall not, without the prior written consent of City, be used by Contractor for any purposes other than the performance of the Services. Nor shall such materials be disclosed to any person or entity not connected with the performance of the Services or the Project. Nothing furnished to Contractor which is otherwise known to Contractor or is generally known, or has
10 become known, to the related industry shall be deemed confidential. Contractor shall not use City’s name or insignia, photographs of the Project, or any publicity pertaining to the Services or the Project in any magazine, trade paper, newspaper, television or radio production or other similar medium without the prior written consent of City.
3.5.4 Cooperation; Further Acts. The Parties shall fully cooperate with one another, and shall take any additional acts or sign any additional documents as may be necessary, appropriate or convenient to attain the purposes of this Agreement.
3.5.5 Attorney’s Fees. If either party commences an action against the other party, either legal, administrative or otherwise, arising out of or in connection with this Agreement, the prevailing party in such litigation shall be entitled to have and recover from the losing party reasonable attorney’s fees and all other costs of such action.
3.5.6 Indemnification. Contractor shall defend, indemnify and hold the City, its officials, officers, employees, volunteers and agents free and harmless from any and all claims, demands, causes of action, costs, expenses, liability, loss, damage or injury, in law or equity, to property or persons, including wrongful death, in any manner arising out of or incident to any alleged acts, omissions or willful misconduct of Contractor, its officials, officers, employees, agents, contractors and contractors arising out of or in connection with the performance of the Services, the Project or this Agreement, including without limitation the payment of all consequential damages and attorneys fees and other related costs and expenses. Contractor shall defend, at Contractor’s own cost, expense and risk, any and all such aforesaid suits, actions or other legal proceedings of every kind that may be brought or instituted against City, its directors, officials, officers, employees, agents or volunteers. Contractor shall pay and satisfy any judgment, award or decree that may be rendered against City or its directors, officials, officers, employees, agents or volunteers, in any such suit, action or other legal proceeding. Contractor shall reimburse City and its directors, officials, officers, employees, agents and/or volunteers, for any and all legal expenses and costs incurred by each of them in connection therewith or in enforcing the indemnity herein provided. Contractor’s obligation to indemnify shall not be restricted to insurance proceeds, if any, received by the City, its directors, officials, officers, employees, agents or volunteers.
3.5.7 Entire Agreement. This Agreement contains the entire Agreement of the parties with respect to the subject matter hereof, and supersedes all prior negotiations, understandings or agreements. This Agreement may only be modified by a writing signed by both parties.
3.5.8 Governing Law. This Agreement shall be governed by the laws of the State of California. Venue shall be in Los Angeles County.
3.5.9 Time of Essence. Time is of the essence for each and every provision of this Agreement.
3.5.10 City’s Right to Employ Other Contractors. City reserves right to employ other contractors in connection with this Project.
11 3.5.11 Successors and Assigns. This Agreement shall be binding on the successors and assigns of the parties.
3.5.12 Assignment or Transfer. Contractor shall not assign, hypothecate, or transfer, either directly or by operation of law, this Agreement or any interest herein without the prior written consent of the City. Any attempt to do so shall be null and void, and any assignees, hypothecates or transferees shall acquire no right or interest by reason of such attempted assignment, hypothecation or transfer.
3.5.13 Construction; References; Captions. Since the Parties or their agents have participated fully in the preparation of this Agreement, the language of this Agreement shall be construed simply, according to its fair meaning, and not strictly for or against any Party. Any term referencing time, days or period for performance shall be deemed calendar days and not work days. All references to Contractor include all personnel, employees, agents, and subcontractors of Contractor, except as otherwise specified in this Agreement. All references to City include its elected officials, officers, employees, agents, and volunteers except as otherwise specified in this Agreement. The captions of the various articles and paragraphs are for convenience and ease of reference only, and do not define, limit, augment, or describe the scope, content, or intent of this Agreement.
3.5.14 Amendment; Modification. No supplement, modification, or amendment of this Agreement shall be binding unless executed in writing and signed by both Parties.
3.5.15 Waiver. No waiver of any default shall constitute a waiver of any other default or breach, whether of the same or other covenant or condition. No waiver, benefit, privilege, or service voluntarily given or performed by a Party shall give the other Party any contractual rights by custom, estoppel, or otherwise.
3.5.16 No Third Party Beneficiaries. There are no intended third party beneficiaries of any right or obligation assumed by the Parties.
3.5.17 Invalidity; Severability. If any portion of this Agreement is declared invalid, illegal, or otherwise unenforceable by a court of competent jurisdiction, the remaining provisions shall continue in full force and effect.
3.5.18 Prohibited Interests. Contractor maintains and warrants that it has not employed nor retained any company or person, other than a bona fide employee working solely for Contractor, to solicit or secure this Agreement. Further, Contractor warrants that it has not paid nor has it agreed to pay any company or person, other than a bona fide employee working solely for Contractor, any fee, commission, percentage, brokerage fee, gift or other consideration contingent upon or resulting from the award or making of this Agreement. Contractor further agrees to file, or shall cause its employees or subcontractors to file, a Statement of Economic Interest with the City’s Filing Officer as required under state law in the performance of the Services. For breach or violation of this warranty, City shall have the right to rescind this Agreement without liability. For the term of this Agreement, no member, officer or employee of City, during the term of his or her service with City, shall have any direct interest in this Agreement, or obtain any present or anticipated material benefit arising therefrom.
12 3.5.19 Equal Opportunity Employment. Contractor represents that it is an equal opportunity employer and it shall not discriminate against any subcontractor, employee or applicant for employment because of race, religion, color, national origin, handicap, ancestry, sex or age. Such non-discrimination shall include, but not be limited to, all activities related to initial employment, upgrading, demotion, transfer, recruitment or recruitment advertising, layoff or termination. Contractor shall also comply with all relevant provisions of City’s Minority Business Enterprise program, Affirmative Action Plan or other related programs or guidelines currently in effect or hereinafter enacted.
3.5.20 Labor Certification. By its signature hereunder, Contractor certifies that it is aware of the provisions of Section 3700 of the California Labor Code which require every employer to be insured against liability for Worker’s Compensation or to undertake selfinsurance in accordance with the provisions of that Code, and agrees to comply with such provisions before commencing the performance of the Services.
3.5.21 Authority to Enter Agreement. Contractor has all requisite power and authority to conduct its business and to execute, deliver, and perform the Agreement. Each Party warrants that the individuals who have signed this Agreement have the legal power, right, and authority to make this Agreement and bind each respective Party.
3.5.22 Counterparts. This Agreement may be signed in counterparts, each of which shall constitute an original.
3.6 Subcontracting.
3.6.1 Prior Approval Required. Contractor shall not subcontract any portion of the work required by this Agreement, except as expressly stated herein, without prior written approval of City. Subcontracts, if any, shall contain a provision making them subject to all provisions stipulated in this Agreement.
3.7 Conflicts of Interest.
3.7.1. Disclosure and Compliance. Contractor agrees that any conflict or potential conflict of interest shall be full disclosed prior to execution of contract and contractor shall comply with all applicable federal, sate and county laws and regulations governing conflict of interest in accordance with 24 CFR Part 84 Sec. 84.42.
3.8 Political Activity/Lobbying Certification.
3.8.1. Contractor may not conduct any activity, including any payment to any person, officer, or employee of any agency or member of Congress in connection with the awarding of any federal contract, grant, or loan, intended to influence legislation, administrative rule-making or the election of candidates for public office during time compensated for under representation that such activity is being performed as a part of the contract responsibility.
13 3.9 County Lobby Certification.
3.9.1. It is understood that each person/entity/firm who applies for a Community Development Commission contract, and as part of that process, shall certify that they are familiar with the requirements of the Los Angeles County Code Chapter 2.160, (Los Angeles County Ordinance 93-0031) and; that all persons/entity/firms acting on behalf of the above named firm have and will comply with the County Code, and; that any person/entity/firm who seeks a contract with the Community Development Commission shall be disqualified there from and denied the contract and, shall be liable in civil action, if any lobbyist, lobbying firm, lobbyist employer or any other person or entity acting on behalf of the above named firm fails to comply with the provisions of the County Code.
4. Federal and County Contract Provisions
4.1 Equal Employment Opportunity: During the performance of this Agreement, the Contractor agrees as follows The Contractor will not discriminate against any employee or applicant for employment because of age, race, creed, sex, color or national origin. The CONTRACTOR will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their age, race, creed, sex color or national origin. Such action shall include, but not be limited to the following:
employment, upgrading, demotion, or transfer; rates of pay of other forms of compensation; and selection for training, including apprenticeship. The CONTRACTOR agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by the CITY setting forth the provisions of this non-discrimination clause.
4.2 The CONTRACTOR will, in all solicitation of advertisements for employees placed by or on behalf of the CONTRACTOR, state that all qualified applicants will receive consideration for employment without regard to age, race, creed, color, sex or national origin.
4.3 The CONTRACTOR will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement so that such provisions will be binding upon each subcontractor, provided that the foregoing provisions shall not apply to contracts or subcontracts for standard commercial supplies or raw materials.
4.4 The CONTRACTOR will comply with all provisions of Executive Order 11246 of September 24, 1965 and of the rules, regulations, and relevant orders of Secretary of Labor.
4.5 The CONTRACTOR will furnish all information and reports required by Executive Order 11246 of September 24, 1965, and by the rules, regulations and orders of the Secretary of Labor, or pursuant thereto, and will permit access to his books, records and
14 accounts by the CITY and the Secretary of Labor for purposes of investigation to ascertain compliance with such rules, regulations and orders.
4.6 In the event of the CONTRACTOR’S non-compliance with the equal opportunity clauses of the Agreement or with any such rules, regulations or orders, this Agreement may be canceled, terminated, or suspended in whole or in part and the CONTRACTOR may be declared ineligible for further government contracts in accordance with procedures authorized in Executive Order 11246 of September 24, 1965, or by rule, regulation, or order of the Secretary of Labor, or as otherwise provided by law.
4.7 The CONTRACTOR will include the provisions of paragraphs (a) through (f) in every subcontract or purchase order unless exempted by rules, regulations, or orders of the Secretary of Labor issued pursuant to Section 204 of Executive Order 11246 of September 24, 1965, so that such provisions will be binding upon each subcontractor or vendor. The CONTRACTOR will take such action with respect to any subcontract or purchase order as the CITY may direct as a means of enforcing such provisions including sanctions for non-compliance; provided, however, that in the event the CONTRACTOR becomes involved in, or is threatened with, litigation with a subcontractor or vendor as a result of such directions by the CITY, the CONTRACTOR may request the United States to enter into such litigation to protect the interests of the United States.
5.0 Non-Discrimination.
5.1 Executive Order 11246. During the performance of this Agreement, Contractor agrees not to discriminate against any employee or applicant for employment because of race, religion, sex, color, or national origin. Contractor will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, religion, sex, color, or national origin. Such action shall include, but not limited to, the following: employment upgrading, demotion or transfer: recruitment or recruitment advertising: layoff or termination: rates of pay or other forms of compensation: and selection for training, including apprenticeship. Contractor agrees to post in conspicuous places, available to employees and applicants for employment, notices to be provided by Contractor setting forth the provisions of this nondiscrimination clause.
5.2 Civil Rights Act of 1964. Title VI of the Civil Rights Act of 1964 provides that no person shall, on the ground of race, color, or national origin, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity receiving Federal financial assistance. Both Parties agree to abide by this provision of the Civil Rights Act in carrying out this Agreement.
5.3 Age Discrimination. The prohibition against discrimination on the basis of age under The Age Discrimination Act of 1975, or with respect to an otherwise qualified
15 handicapped individual, as provided in Section 504 of the Rehabilitation Act of 1973, shall also apply to this Agreement.
5.4 Housing and Community Development. Section 109, Title I of the Housing and Community Development Act of 1974, provides that no person shall, on the ground race, color, national origin, or sex, be excluded from participation in, be denied the benefits of, or be subjected to discrimination under any program or activity funded in whole or in part with funds made available under this Title.
6.0 Section 3 Requirements.
6.1 Low-Income Opportunities. Section 3 of the Housing and Urban Development Act of 1968, as amended, 12 U.S.C. 1701 et. Seq., requires that to the greatest extent feasible, opportunities for training and employment be given to lower-income residents of the project area and contracts for work in connection with the project be awarded to business concerns, which are located in, or owned in substantial part, by persons residing in the area of the project.
7.0 Other CDBG Requirements.
7.1 Contractor agrees to abide by all applicable federal laws and regulations applicable to projects involving CDBG funding.
8.0 Contractor’s Warranty of Compliance with County’s Defaulted Property Tax Reduction Program
8.1 Contractor acknowledges that the County has established a goal of ensuring that all individuals and businesses that benefit financially from the County through contract are current in paying their personal and real property tax obligations (secured and unsecured roll) in order to mitigate the economic burden otherwise imposed upon the County and its taxpayers. Unless the Contractor qualifies for an exemption or exclusion, the Contractor warrants and certifies that to the best of its knowledge it is now in compliance, and during the term of this Contract will maintain compliance, with the County’s Defaulted Tax Program, found at Los Angeles County Ordinance No. 2009-0026 and codified at Los Angeles County code, Chapter 2.206.
9.0 Other CDBG Requirements.
9.1 Contractor agrees to abide by all applicable federal laws and regulations applicable to projects involving CDBG funding.
[Signatures on Next Page]
16 CITY OF MAYWOOD [INSERT NAME OF CONTRACTOR]
By: By:______________________________
Heber Marquez, Mayor
Attest:
Flor Aguiluz, City Clerk
Approved as to Form:
______________________________
Roxanne Diaz, City Attorney
EXHIBIT “A”
SCOPE AND SCHEDULE OF SERVICES
EXHIBIT “B”
COMPENSATION
City of Maywood
Request for Proposals
for
Graffiti Removal Services
Date of Issuance: March 25, 2022
RESPONSES MUST BE RECEIVED NO LATER THAN
4:00 PM, April 25, 2022
DELIVER OR MAIL TO:
City of Maywood
City Clerk’s Office
4319 E. Slauson Avenue
Maywood, CA 90270
1 TABLE OF CONTENTS
I. PURPOSE............................................................................................................ 1 II. BACKGROUND.................................................................................................... 1 III. GENERAL REQUIREMENTS............................................................................... 1 IV. SCOPE OF SERVICES........................................................................................ 3 V. SCHEDULE.......................................................................................................... 7 VI. LIST OF INTERESTED PROPOSERS................................................................. 7 VII. QUESTIONS ........................................................................................................ 7 VIII. SUBMITTAL PROCEDURES ............................................................................... 7 IX. SUBMITTAL FORMAT ......................................................................................... 8 X. AGREEMENT FOR PROFESSIONAL SERVICES ............................................ 12 XI. GENERAL ADMINISTRATIVE INFORMATION ................................................. 12 XII. SUBMITTAL DUE DATE .................................................................................... 13 XIII. SELECTION PROCESS..................................................................................... 13 XIV. INSURANCE………………………………………………………...…………………16
XV. AUTHORITY TO WITHDRAW............................................................................ 16 XVI. AWARD OF CONTRACT ................................................................................... 17 XVII. ATTACHMENTS................................................................................................. 17
1 I. PURPOSE
The purpose of this Request for Proposals (RFP) is to select the most-qualified Consultant to Provide qualified contractors to provide graffiti removal services on private and public property within City limits. The City wishes to obtain the removal of graffiti from various surfaces on private residential, commercial, and industrial structures and City structures throughout the City under a Professional Services Agreement. The City will award no more than one contract on a not-to-exceed basis.
II. BACKGROUND
The City of Maywood is a General Law City, with a Council/Manager form of government.
Founded in 1924, the City has a land area of approximately 1.18 square miles and is the third-smallest incorporated city in Los Angeles County. Maywood is bordered by the cities of Bell on the south, Vernon on the north and west, Huntington Park on the southwest, and Commerce on the east.
The City of Maywood receives Committee Development Block Grant (CDBG) funds through a program established by the United Stated Department of Housing and Urban Development (HUD). These funds provide housing, economic and community development opportunities which primarily benefit persons of low- and moderate-income levels and/or aid in the prevention or elimination of blighted conditions.
III. GENERAL REQUIREMENTS
A. Respondents shall have at least five (5) years of consecutive experience in the Graffiti removal services industry.
B. The proposed term of the contract under this RFP shall be for three years with the option to renew for two additional one-year periods at the discretion of the City.
C. Respondent shall comply with the insurance requirements set forth in the form professional services agreement.
D. In accordance with Labor Code Section 1770 et seq., the services to be provided by the successful proposer is a “public work” and thus required to pay and comply with the prevailing wage requirements of the California Labor Code as described in Attachment 2. Said attachment shall be incorporated into the awarded contract. In addition, the successful proposer shall be required to submit a payment bond in the form approved by the City Attorney concurrently with the signing of the contract. The surety who provides the bond must be authorized by the Insurance Commissioner to transact business of insurance in the State of California. Wage decisions can be found https://www.dir.ca.gov/oprl/DPreWageDetermination.htm E. The selected individual/Contractor will have previous graffiti removal experience that shows the Contractor can provide professional, first-class
2 workmanship. This individual/Contractor should have knowledge of the proper preparation of all stucco, masonry, metal, wood, or other exterior surfaces that would result in the bonding of the applied paint and obstruct the visibility of graffiti. Contractor is required to have experience within the last 3 years in graffiti removal or related industrial clearing work or service contract. At the time of the proposal submittal, the Contractor shall provide, in writing, references from individuals who will be able to confirm this. Five years of graffiti removal experience is preferred.
F. The City shall select an Individual/Contractor based on a combination of factors, such as: responsiveness and comprehensiveness of the Proposer with respect to this Request for Proposals (RFP); technical background and experience; the number and nature of exceptions taken to the agreement (Attachment 1); previous work performed for other public agencies; information obtained from references; and cost.
1. In addition, the following factors will be considered:
a. Completeness of the proposal and ability of the Proposer to comply with the mandatory requirements proposed under this RFP.
b. Whether the Contractor has the financial resources and facilities to perform or provide the required services promptly, or within the time specified without delay or interference. c. Experience implementing similar programs.
d. Proven knowledge of and Compliance with Federal
Community Development Block Grant (CDBG) Program
requirements.
e. Recommendations from prior clients and record of
performance on previous contracts or services.
f. Ability to communicate effectively with diverse population, particularly English and Spanish language speakers; and g. Cost reasonableness
G. LIST HERE ANY OTHER MINIMUM GENERAL REQUIREMENTS
1. The submittal should be typed and as brief as possible while adequately describing the qualifications of the Contractor.
2. Proposals are to be submitted in the same envelope, clearly marked with the Contractor’s name, address and phone number. Only one proposal per Contractor will be considered.
3. The proposing Contractor shall submit the following information with the package, including the same information on subcontractors.
3 IV. SCOPE OF SERVICES
A. The selected Respondent shall provide the following scope of services including any tasks to be performed by subcontractors and as follows:
General Description of Scope of Work
The City of Maywood is seeking an individual/Contractor qualified to provide graffiti removal services within the City. Services to be provided under this Proposal include, but not necessarily limited to, the following:
Graffiti Removal
Contractor shall furnish at his/her own expense, all labor, equipment and materials necessary for the satisfactory performance of graffiti removal as set forth herein.
Contractor shall remove graffiti from all private residential, commercial, and industrial structures. Contractor shall inspect all referrals to determine the method to be used for the graffiti removal. Methods of removal may include chemical removal, water blasting or other pressurized removal systems, matching existing painted surfaces or other eradication procedures as approved by the City. Contractor shall determine the most effective method(s) for removal of the graffiti at each location. The method(s) of removal will vary depending upon the type of graffiti and condition of the surface. Contractor must use care to avoid damages to existing improvements (e.g., buildings, windows, doors, walls, etc.). Existing improvements damaged by the Contractor shall be repaired at the Contractors sole expense to the satisfaction of the City.
Materials and Equipment
1. Preparation - The Contractor shall properly prepare all stucco, masonry, metal, wood, or other exterior surfaces in a manner that will result in an acceptable bonding of the applied paint and deter the visibility of graffiti. (No lead-based paints shall be used.)
2. Application Quality - The materials shall be applied in such a manner as will ensure smooth, even, uniform coats free of dirt, drips, ridges, waves, drops, runs, brush marks, sags, and laps. If any of these existed before, they shall be properly corrected and prepared before painting. When completed, the painting shall represent a first class, workmanlike appearance.
3. Application Process - Paint shall be applied under dry, dust-free conditions and shall not be applied when the temperature is below forty (40) degrees Fahrenheit. All primer and intermediate coasts of paint shall be unscarred and completely integral as well as completely dry at the time of the application of each succeeding coat.
4. Equipment - The Contractor shall have an aerosol spray unit (minimum 2500 p.s.i.), and a standard extension ladder on the Contractor vehicle and such other equipment as may be necessary to perform graffiti removal (e.g. brushes, etc.). The Contractor shall have the ability to remove graffiti from
4 difficult locations. The Contractor must have extension ladders on every vehicle and twenty-four (24) hour a day seven (7) days a week access to a bucket truck with a minimum extension height of forty (40) feet.
5. Manufacturer Directions - Manufacturer’s recommendations for mixing, thinning, applying, type of exposure, surface to be covered, and type of surface wear to which the paint will be subjected shall be explicitly followed.
6. Paint Match - The Contractor shall verify, to the satisfaction of the City, its method for matching paint. All repainted surfaces shall reasonably match wall color to the satisfaction of the Director of Building and Planning or designee.
Response and Removal Time
The Contractor shall provide a 24-hour turnaround from time of notification and/or survey and shall provide “emergency” services (removal of vulgar, racial, or pornographic images, etc.) within approximately one hour of notification. A 48-hour turnaround time may be acceptable, at the City’s discretion, to provide color-matching if necessary. • Contractor shall also survey the City for graffiti as specified by the City.
Contractor Responsibility
The Contractor is to assume the responsibility for all work including tenant and property owner relations.
Right of Entry
1. Private Property - Authorization shall be secured from the property owner or authorized agent to enter onto private property and perform graffiti removal services. The Contractor and/or City must obtain written approval to enter and release of liability prior to starting the graffiti removal.
2. Public Right-of-Way Property - Authorization shall be given by the Building and Planning Department for the removal of graffiti on public property.
3. Commercial Signage - Graffiti found on commercial signage shall only be removed with the owner’s/occupant’s specific, written approval and with the owner’s/occupant’s understanding that the Contractor is not responsible, under this contract, for replacing any original lettering, pictures, etc., on commercial sign. With the owner’s/occupant’s approval, the Contractor shall proceed with diligence to remove the graffiti with as little damage to the commercial sign as possible.
Cleanup
All finished surfaces of the building shall be left clean and reasonably dust free. At completion of work, Contractor shall clean all exposed surfaces soiled by the work; repair all damaged caused by the work at no extra cost to the property owner of the City of
5 Maywood; remove all debris of the work from the job site; and leave the entire installation ready for use.
Air and Water Pollution
The Contractor shall be required to conform to all current regulations of the South Coast Air Quality Management District (AQMD). The Contractor is also required to adhere to the provisions of the Federal Clean Water Act as regulated by the U.S. Environmental Protection Agency (EPA) in Code 40, Code of Federal Regulations (CFR) Parts 122, 123, 124, the Porter-Cologne Act (California Water Act), and the National Pollutant Discharge Elimination System (NPDES) requirements. Suitable Best Management Practices (BMPs) shall be applied to prevent any chemical, debris, or any non-storm water discharges from being entering the storm drain system (storm drains and gutters).
Compliance with Laws
The services requested in this Proposal will be funded in part under the Community Development Block Grant Program (CDBG). Contractor, its agents, and employees shall comply with all laws, ordinances, rules, and regulations of the Federal, State, the County of Los Angeles, the City of Maywood and all governing bodies having jurisdiction applying to work done under the agreement. This shall include Federal Regulations related to Equal Opportunity Employer.
Retention of Financial Records
Contractor agrees to maintain financial records and accounts to assure proper accounting for all CDBG Program funds and to support all program expenditures for a period of five (5) years. These records and accounts shall include, but not be limited to, the following:
1. A double-entry General Ledger that supports the costs charged to the CDBG Program;
2. Records documenting procurement of goods and services;
3. Lease of Rental Agreements;
4. Invoices;
5. Billing Statements;
6. Cancelled Checks;
7. Timecards signed by employees and supervisors;
8. Personnel Authorized Records;
9. Payrolls Registers;
10.Payroll Tax Records;
11.Bank Statements;
12.Bank Reconciliations; and
13.Documentation to support the allocation of costs.
6 Public Relations and Safety
The Contractor shall at all times conduct services with the utmost courtesy to the public.
All employees of the Contractor shall wear clean clothing in the performance of duties, and equipment shall be clean and maintained in a safe operating manner. All equipment shall be subject to inspection by the Director of Building and Planning or his/her designee.
Photographic Documentation
Before removing graffiti, the Contractor shall photograph graffiti for documentation purposes. Upon removal of the graffiti, the Contractor shall take an additional photograph of the same area (before and after photos). Digital photos of the abated sites and an accompanying photo disk are to be provided along with the monthly billing statement.
Daily Logs
Daily logs shall be maintained identifying graffiti removal sites by census tract and block group. Monthly program reports shall be submitted within five (5) days of the end of the month. Information on total graffiti removal in square feet and number of sites shall be provided. Should accomplishment target not be met for the reporting period, steps to remedy the situation shall be provided by the Contractor along with an implementation schedule.
Term
The term of this contract shall be for a period of three fiscal years, July 1, 2022, through June 30, 2025. This Agreement may be extended upon request and approval by the City on an annual basis for two additional one-year periods until June 30, 2027.
Compensation
Contractor shall receive compensation, including authorized reimbursements, for all Services rendered under the executed Agreement. Contractor shall submit to City a monthly itemized statement of Services rendered by Contractor. The statement shall describe the Services provided, the percent of work complete by item, together with such other reasonable detail and supporting documentation as may be required by the City Manager, or his/her designee. City will review the statement and pay, with the exception of any charges for work performed or expenses incurred by Contractor which are disputed by City, within 30 days of receiving such statement, all approved charges thereon.
Payment to Contractor for work performed pursuant to this Agreement shall not be deemed to waive any defect in work performed by Contractor.
Prior to contract award, at the discretion of the City, Proposer must demonstrate graffiti removal to City Staff at a designated location, at no cost to the City.
7 V. SCHEDULE
Deadlines
Release of Requests for Proposals March 25, 2022
Submittal of Questions April 1, 2022, by 3:00 pm
Response to Questions April 8, 2022, by 5:00 pm
Proposal Due Date April 25, 2022 by 4:00 pm
Proposal Review/Evaluation May 3, 2022
Optional Interview (if required) May 9, 2022
Tentative award of contract June 2022
Tentative Start date July 1, 2022
* These dates are anticipated and may change.
VI. LIST OF INTERESTED PROPOSERS
The full content of the RFP is available through the City website at www.cityofmaywood.org. If addendums are necessary, they will be posted onto the previously mentioned websites as well. All respondents interested in proposing on this RFP are encouraged to sign-up on the "List of Interested Proposers" for the project. This list will be used to email any project updates, addendums, changes, or responses to written inquires and will be distributed to all interested contractors. To get on the list please email [email protected] or call, (323) 562-5700.
VII. QUESTIONS
All questions regarding this RFP shall be submitted in writing by email to: Steve Fowler at [email protected]. The date and time when questions must be submitted are shown in “Section V-Schedule” of this RFP. Questions with their answers will be posted on the City website by the date and time set forth in this RFP.
VIII. SUBMITTAL PROCEDURES
Submittals shall comply with all conditions, requirements and specifications contained herein, with any departure rendering the proposal non-responsive and may serve as grounds for rejection of the proposal at the City’s sole discretion. The submittal shall contain the name of this RFP and Respondents shall provide four (4) copies of the of the proposal (three bound and one unbound), single sided.
All proposal submittals shall be mailed or delivered and received by the City no later than April 25, 2022, at 4:00 p.m. addressed as follows:
City of Maywood
8 City Clerk’s Office
4319 Slauson Avenue
Maywood, CA 90270
For delivery purposes, the City Clerk’s phone number for the City is (323) 562-5714. In addition to the submission of the hard copies of the proposal, Respondents shall also submit one electronic copy (searchable PDF format) by the same date and time to NAME AND EMAIL ADDRESS.
IX. SUBMITTAL FORMAT
All Respondents must submit qualifications according to the specifications set forth below.
Proposals should be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Responses should emphasize the Respondent’s demonstrated capability to perform work of this type.
Proposals shall be valid for a minimum of 90 days following submission. Expensive bindings, colored displays, promotional materials, etc., are not necessary or desired.
EMPHASIS SHOULD BE ON COMPLETENESS AND CLARITY OF CONTENT. The City reserves the right to request additional information that, in the City’s opinion, is necessary to ensure that the Proposer’s competence, qualified employees, business organization and financial resources are adequate for the performance of the services under this RFP.
A. WORK PROPOSAL
1. Cover Letter
a. Provide a cover letter including the Respondent’s name, address and telephone number of the contact person(s) who is authorized to submit the proposal on behalf of the
Respondent. The cover letter shall include a brief general statement of intent to perform the services and correspondent that all elements of the RFP have been reviewed and
understood. The letter should include a brief description of the Respondent’s Respondent. It must also have any qualifying statements or comments regarding the proposal and
identification of any sub consultants and their responsibilities.
The letter should be signed by an individual who can bind the Respondent contractually. The signed letter should also include a paragraph stating that the Contractor is unaware of any conflict of interest in performing the proposed work. b. There shall be one person from the Respondent identified in the proposal who shall be the Respondent’s designated
representative and who is responsible for the services listed in "Section IV - Scope of Services" of this RFP (“Point of Contact”).
c. If applicable, Respondent shall acknowledge receipt of any addendum to the RFP.
2. Table of Contents
9 a. Include a table of content identifying the contents of the proposal in a format consistent with the proposal
requirements and format set forth herein.
3. Experience and Qualifications
a. Describe the Respondent, its size and organization, the number and location of offices, and general operational structure, as well as its management and key personnel.
Provide a description of the Respondent’s Respondent, its size and organization, the number and location of offices and general operational structure. Include a discussion
demonstrating that the Respondent has the resources
(financial, equipment, labor and capacity) available to provide services under this RFP from the first day at the start of the work.
b. At a minimum, Respondent should have at least five (5) years of consecutive experience
c. Provide at least three references that received similar services from your Respondent at a minimum over the last five years. Include name of organization, contact name, telephone number and email address.
d. Demonstrate the qualifications of all personnel to be assigned to the City, including key personnel, by providing resumes and/or relative experience summaries describing their
education, credentials, licensing, training and related experience and their proposed roles for this contract.
e. Provide an organization chart of the proposed team, including a contingency plan should a member of the proposed team be unable to fulfill their responsibilities.
f. Respondent shall hold the required license(s) to perform the work and provide proof of required license for itself and its personnel.
4. Approach to Scope of Services
a. This section should set forth a comprehensive description of the approach to providing the Scope of Services and should clearly demonstrate an understanding of the City’s
requirements, the work to be done and the objectives to be accomplished. .
b. Provide a description of the work plan for the services describing how each task under the Scope of Services will be accomplished. This may be used as an Exhibit for the Scope of Services to the agreement.
c. Provide any other information or tasks that Respondent believes necessary to complete the Scope of Services.
B. COST PROPOSAL
1. Detailed Cost Proposal
10 a. Respondent shall submit a detailed cost proposal that shall include all tasks required to perform the Scope of Services.
The cost proposal shall indicate how the City will be charged for services (i.e. unit, hourly or flat rate basis as appropriate) for the term of the contract, including any extensions. Costs should include all services and materials if any, needed to perform the Scope of Services, and a “not to exceed” amount for reimbursables.
b. As it relates to the services under this RFP, if Respondent is proposing to provide the services on an hourly basis, the cost proposal shall identify the hourly rate for the personnel needed to complete the Scope of Services.
c. In addition, Respondent shall also submit the
rates/compensation for any “additional services” that
Respondent can provide.
COST PROPOSAL
Please complete the following:
REMOVAL OF GRAFFITI FROM PRIVATE AND PUBLIC PROPERTY:
Using the Contractor’s complete schedule of graffiti removal fees, enter the cost per location for each of the following removal methods.
Type Minimum Cost Additional Cost Over Minimum
Cost
Sandblasting $_______________
For_______ sq.ft
$_______________________/sq.ft.
Water blasting $_______________
For_______ sq.ft
Water blasting with
baking soda
$_______________
For_______ sq.ft
Painting – “matching
paint”
Chemical/Solvents
$_______________
For_______ sq.ft
Other (describe):
11 Please complete the following schedule of fees:
Cost
per sq.
ft.
Charged in
increments
of
Minimum Charge per
location
A. Non-Porous
Surface
B. Painted
Surface
C. Porous
Surface
D. Emergency
Call Out
Definitions of the terms used above:
Non-Porous Surface Glass windows, mirrors, metal, street signs, poles, baked enamel, traffic control boxes, etc.
Painted Surface Previously painted surfaces such as stucco, block walls, tilt ups, fences, etc.
Porous Surface Natural unpainted surfaces such as block walls, concrete walls, curbs, sidewalks, etc.
Emergency Call Out Sending a work crew out of schedule
I hereby certify that I have the authority to offer this cost proposal to the City of Maywood for the services identified in this RFP. I further certify that I have the authority to bind myself/this company in an agreement should I be successful in my Proposal.
_____________________________________________________
NAME OF PROPOSER
_____________________________________________________
SIGNATURE
_____________________________________________________
PRINT NAME
12 X. AGREEMENT FOR PROFESSIONAL SERVICES
The City of Maywood’s Agreement for Professional Services (Attachment 2) is included for review and comment. The Respondent’s submission of a proposal indicates Respondent’s compliance of such terms, unless the proposal indicates that compliance is not possible. Proposed revisions should be addressed in the cover letter, however, the City maintains discretion to accept or reject the Respondent’s request for revisions. The City reserves the right to make any revisions to the proposed professional services agreement.
XI. GENERAL ADMINISTRATIVE INFORMATION
All respondents are advised to become familiar with all conditions, instructions and specifications of this RFP. By submitting a proposal, Respondent represents that it has thoroughly examined and become familiar with the work required under this RFP and that the Respondent has conducted such additional investigation as it deems necessary and convenient (i.e. visiting the locations), that Respondent is capable of providing the equipment, goods and services necessary to furnish landscape maintenance in a manner that meets the City’s objectives in this RFP. Once the contract has been made, a failure to have read the conditions or conduct any investigations of the properties shall not be cause to alter the contract or for Respondent to request additional compensation.
Each Respondent understands and agrees that the City, its departments, its officers, employees or agents are not responsible for:
• Any costs incurred by a Respondent in the preparation, delivery or presentation of a proposal.
• Any costs incurred by a Respondent in meeting the criteria as a result of making or submitting a proposal or subsequently in entering into a formal agreement with the City; and
• Any errors, inaccuracies or misstatements related to the information or data supplied to any contractor by the City. The use of such information or data provided by the City, its officers, employees or agents is intended to be used at the sole discretion and risk of the Respondent in the preparation of a proposal pursuant to this Request for Proposals only.
The selected Respondent shall comply with any and all Federal and State laws applicable to the services. All proposals submitted to the City of Maywood in response to this RFP shall become the property of the City and will not be returned and such proposals, after the agreement is awarded, are subject to the California Public Records Act.
The City reserves the right to accept, reject, modify or cancel in whole or in part, this RFP.
The City reserves the right to accept or reject any or all proposals, negotiate modifications to proposals that it deems acceptable, to request and consider additional information from any proposer, and to waive irregularities and technical defects in the proposal process, all in its sole discretion. The City has no obligation, express or implied, to make an award.
The City may reject proposals from Respondents who cannot satisfactorily provide the experience and qualifications required by this RFP and/or provides the scope of services
13 required herein. The City reserves the right to seek new proposals when it determines that it is in the best interest to do so.
XII. SUBMITTAL DUE DATE
The submittal package must be received prior to the submittal date specified in "Section V - Schedule" of this RFP. Respondents mailing a proposal must allow sufficient delivery time to ensure timely receipt of the proposal by the date and time specified. Submittals arriving after the deadline will not be considered.
XIII. SELECTION PROCESS
All proposals timely received shall be reviewed to verify that the proposal meets the minimum requirements and qualifications. Proposals that have not complied with requirements, do not meet minimum content and quality standards, or take unacceptable exceptions to the professional services agreement, may be eliminated from further consideration at the discretion of the City. Proposals will be reviewed and evaluated by an evaluation committee comprised of City of Maywood personnel.
The City will be the sole and exclusive judge of quality and compliance with proposal specifications in any of the matters pertaining to this RFP. The City’s final selection will not be dictated on any single factor or criteria including price. The City reserves the right to award the contract(s) in any manner it deems to be in the best interest of the City and make the selection based on its sole discretion, notwithstanding the criteria set forth herein, including negotiating with one or more of the Respondents for the same services.
City will evaluate the proposals provided in response to this RFP based on the following criteria:
1. The City will evaluate Respondents based on meeting all of the City’s requirements and who offers the most advantageous combination of cost and high quality service. In addition to cost, however, the City will consider the quality of services proposed, the financial qualification of, and the work experience of the proposer in determining the best value to the City.
2. Other criteria shall include, but not be limited to:
a. Quality and completeness of proposal:
Principal - The account manager, or contact person, assigned to the City will be a consideration in the selection. Qualifications and prior experience in similar programs and activities must be demonstrated in the proposal. Once selected, the account manager, or contact person, assigned to the project or contract shall not be changed without prior written consent of the City. An organizational chart, if applicable, shall be submitted with the proposal.
Proposal Review - Each proposal will be reviewed to determine if it meets the RFP requirements. Failure to meet the requirements of
14 the RFP will be cause for rejection. The City will consider the following in selecting a contractor.
b. Qualifications and experience of proposer, including experience and qualifications of key personnel and staff:
Qualifications - This portion should include a description of the qualifications of the assigned staff and sub-contractors, relevant technical experience, and the availability of the staff for the services provided. After selection of a Contractor by the City, no substitution of key staff or subcontractors may occur without the written approval of the City. A list of related projects should be included with the name of the contract person and the telephone number for which the Contractor has recently or currently provides services as outlined under the Scope of Work.
Safety and Equipment Operating Procedures Manual - A copy of the Safety and Equipment Operating Procedures Manual shall be submitted with the proposal. Summarize training provided to employees who are responsible for graffiti abatement.
Bi-lingual speaking Capacity - The ability to effectively community in English and Spanish is desirable.
Preference for hiring local residents - Should the selected individual/Contractor require the hire of new employees as a result of a graffiti removal services contract with the City, the selected individual/Contractor agrees to conduct outreach in the City and give preference for qualified applicants residing in the City. The selected individual/Contractor will provide evidence of job recruitment efforts. c. Similar experience and expertise in the type of work required, with the City or with other public agencies:
Experience - The selected individual/Contractor will have previous graffiti removal experience that shows the Contractor can provide professional, first-class workmanship. This individual/Contractor should have knowledge of the proper preparation of all stucco, masonry, metal, wood, or other exterior surfaces that would result in the bonding of the applied paint and obstruct the visibility of graffiti.
Contractor is required to have experience within the last 3 years in graffiti removal or related industrial clearing work or service contract.
At the time of the proposal submittal, the Contractor shall provide, in writing, references from individuals who will be able to confirm this.
Five years of graffiti removal experience is preferred.
Compliance with Federal CDBG Program Requirements -
Demonstrated experience in administering CDBG Program funded activities for a period of five (5) years. Compliance with applicable
15 Federal Requirements including, but not limited to, financial record keeping, and reporting.
d. Demonstrated understanding of the scope of services
requested as well as capacity of respondent
e. References
f. Financial stability of proposer
g. Cost to the City
h. Oral interviews, if applicable.
i. Any other factors determined by the City to be relevant to the performance of these services.
Appropriate Licenses or certifications - Contractor is required to have in full force and affect all licenses and permits required by the applicable laws to perform graffiti removal services within the City of Maywood. Contractor must possess and maintain a valid State of California C-33 Painting License during the term of the contract. The employer ID number and Contractor License number shall be submitted with the proposal. The individual or Contractor must obtain all required City of Maywood licenses.
1. Response to requested Scope of Services and this RFP;
2. Type and amount of equipment;
3. Number and experience of personnel;
4. Professional Services Agreement - The Director of Building and Planning will request a professional services agreement subject to negotiation of precise work program, terms of payment and other City requirements from the Contractor found most qualified. Nothing in this RFP should imply a contractual obligation for employment.
5. Contract Approval and Execution - The agreement will be presented to the City Council for approval and execution by the City Manager as outlined in Chapter 4 of Title 3 of the Maywood Municipal Code.
6. Acceptance of Conditions - This section will be a statement offering the Contractor’s acceptance of all conditions listed in the Request for Proposal document. Any exceptions or
suggested changes to the RFP or any contractual obligations, including the suggested change, the reasons therefore and the impact it may have on cost or other considerations on the Contractor’s behalf must be stated in the proposal. Unless specifically noted by the Contractor, the City will assume that the proposal is in compliance with all aspects of the RFP.
16 XIV. INSURANCE
The following are the legal and insurance requirements of the City of Maywood for the selected Contractor:
A. Time for Compliance - Contractor shall not commence work under this Agreement until it has provided evidence satisfactory to the City that it has secured all insurance required under this section. In addition, Contractor shall not allow any subcontractor to commence work on any subcontract until it has provided evidence satisfactory to the City that the subcontractor has secured all insurance required under this section.
B. Minimum Requirements - Contractor shall, at its expense, procure and maintain for the duration of the Agreement insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the Agreement by the Contractor, its agents, representatives, employees or subcontractors. Contractor shall also require all of its subcontractors to procure and maintain the same insurance for the duration of the Agreement.
Such insurance shall meet at least the following minimum levels of coverage:
a. Minimum Scope of Insurance - Coverage shall be at least as broad as the latest version of the following: (1) General Liability: Insurance Services Office Commercial General Liability coverage (occurrence form CG 0001); (2) Automobile Liability: Insurance Services Office Business Auto Coverage form number CA 0001, code 1 (any auto); and (3) Workers’ Compensation and Employer’s Liability: Workers’ Compensation insurance as required by the State of California and Employer’s Liability Insurance. b. Minimum Limits of Insurance - Contractor shall maintain limits no less than: (1) General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with general aggregate limit is used, either the general aggregate limit shall apply separately to this Agreement/location or the general aggregate limit shall be twice the required occurrence limit; (2) Automobile Liability: $1,000,000 per accident for bodily injury and property damage; and (3) Workers’ Compensation and Employer’s Liability:
Workers’ Compensation limits as required by the Labor Code of the State of California. Employer’s Liability limits of $1,000,000 per accident for bodily injury or disease.
XV. AUTHORITY TO WITHDRAW
The City of Maywood reserves the right to withdraw this Request for Proposals without prior notice. The City of Maywood makes no representation that any agreement will be awarded to any Respondent as a result of having responded to this request. All proposals
17 submitted to the City of Maywood in response to this RFP shall become the property of the City and will not be returned.
XVI. AWARD OF CONTRACT
Based on the outcome of the evaluation committee’s evaluation of the proposals, a recommendation will be submitted to the City Council for consideration of award. An award of a contract occurs when the contract is approved by the Maywood City Council.
Selection of a respondent with whom the City enters into contract negotiations with or a recommendation of an award by the evaluation committee or any other party, does not constitute an award of a contract. The contract shall be in accordance with the attached Agreement.
XVII. ATTACHMENTS
Attachment 1. Form Professional Services Agreement
ATTACHMENT 1
Form Professional Services Agreement
AGENDA REPORT
CITY OF MAYWOOD
AGENDA ITEM NO. 6.
DATE: March 23, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: MIGUEL LEON, ADMINISTRATIVE ANALYST
SUBJECT: AUTHORIZE THE ISSUANCE OF A REQUEST FOR PROPOSALS (RFP) FOR THE
MAYWOOD EXPRESS SHUTTLE TRANSIT AND THE PARATRANSIT DIAL-A-RIDE OPERATIONS FOR FISCAL YEARS 2022-2027
RECOMMENDATION:
Staff recommends that the City Council authorize the issuance of a request for proposals for the Maywood Express Shuttle transit and the paratransit Dial-A-Ride service.
BACKGROUND:
The City of Maywood's Dial-A-Ride program provides its senior residents who are sixty-two (62) years of age and disabled residents with a curb-to-curb paratransit transportation service. The program was developed to assist the Senior and Disabled population with a one-way trip service consisting of the pickup and transportation of eligible residents from all locations within the City limits of Maywood and sites within a (2) twomile radius of the City’s boundaries with the exclusion of non-essential retail uses. In addition, qualified residents can be picked up and transported to the following locations:
Brian Crest Nursing center in Bell Gardens
Downey Dialysis in Downey
East Los Angeles Doctors Hospital in Los Angeles
Health Care Partners in Downey
Kaiser Permanente Hospitals and medical offices in Bellflower and Cudahy Martin Luther King Hospital in Los Angeles
Medical offices in Bellflower and Downey
PIH medical offices in Downey
Rancho Los Amigos in Downey
St. Francis Medical offices in Lynwood
US Veterans Center in Commerce
Locations in Maywood within the geographical boundaries are west of Maywood Avenue, east of Slauson Avenue, south of Atlantic Avenue, and north of Atlantic Avenue.
The Dial-A-Ride service operates a total of twenty-two (22) locations outside the City Limits of Maywood.
The City of Maywood also provides the Maywood Express Shuttle, a no-cost local transit program offered to its residents that have been in operation since November of 2013 and have been an essential part of the community, transporting residents of Maywood and adjacent communities. The fixed-route shuttle consists of a city-wide single route system currently maintained and operated by Metro Transit Service LLC.
The single fixed-route system makes stops at twenty-one (21) local locations within the city boundaries. The Maywood Express shuttle operates six days a week, Monday through Friday, between the hours of 7:00 am and 5:00 pm, and Saturdays from 7:00 am and 5:00 pm, excluding holidays.
DISCUSSION:
In June 2017, the City entered into a five-year agreement operation contract with no options to extend yearly with the current transit contractor, Metro Transit Service, LLC. The terms of the original agreement specified that the contractor would perform an assortment of operations such as providing vehicles, a driver, fuel, administrative services, and maintenance services required to operate the paratransit and transit services. The original agreement included a monthly rate fee of $32,083.33 and four pre-authorized annual compensation increases of 1% of the contractor's prior-year non-wage/operation cost and California minimum wage.
In April 2020, the City exercised its option to amend the service agreement with Metro Transit Service, LLC to cover additional operational costs. Further, the City agreed to a yearly 4% increase and a monthly flat-fee compensation of $33,703.10 until the end of the contract. The increase was effective January 2021, and the City transit services increased from their monthly base fee by 4% on January 1, 2022. The Dial-A-Ride and the Express Shuttle transit services represent an 8% increase over the last two years of service.
Although the quality of the current transportation services provided by Metro Transit Service, LLC has been satisfactory for the last 5-years, it is prudent the City explores competitive bidders. Issuing a request for proposal (RFP) for the City’s transit operations verifies reasonable cost and service levels for contracts requiring such a high level of funding.
LEGAL REVIEW:
The City Attorney has review this report.
FISCAL IMPACT:
There is no fiscal impact in authorizing the Request for Proposal for the Maywood Express Shuttle Transit and the Dial-A-Ride operations. The City utilizes its LA Metro, Proposition A Local Return funds for this program.
ATTACHMENT(S)
1. RFP FOR MAYWOOD EXPRESS TRANSIT AND PARATRANSIT DIAL A RIDE
City of Maywood
Request for Proposals
Maywood Express Shuttle Transit and
Paratransit (“Dial-A-Ride”)
Operations
Date of Issuance: March 31, 2022
RESPONSES MUST BE RECEIVED NO LATER THAN
5:00 PM, April 21, 2022
DELIVER OR MAIL TO:
City of Maywood
City Clerk’s Office
Attn: Shirley Quinones
4319 E. Slauson Avenue
Maywood, CA 90270
1 TABLE OF CONTENTS
I. PURPOSE .............................................................................................................1 II. BACKGROUND .....................................................................................................1 III. GENERAL REQUIREMENTS................................................................................3 IV. SCOPE OF SERVICES .......................................................................................11 V. SCHEDULE .........................................................................................................24 VI. LIST OF INTERESTED PROPOSERS................................................................24 VII. QUESTIONS........................................................................................................24 VIII. SUBMITTAL PROCEDURES ..............................................................................25 IX. SUBMITTAL FORMAT.........................................................................................25 X. AGREEMENT FOR PROFESSIONAL SERVICES .............................................27 XI. GENERAL ADMINISTRATIVE INFORMATION ..................................................27 XII. SUBMITTAL DUE DATE......................................................................................28 XIII. SELECTION PROCESS ......................................................................................28 XIV. AUTHORITY TO WITHDRAW .............................................................................29 XV. AWARD OF CONTRACT.....................................................................................29 XVI. ATTACHMENTS ..................................................................................................29
1 I. PURPOSE
The purpose of this Request for Proposal (RFP) is to select a contractor with an excellent record of accessible service delivery and demonstration of innovations and added-value service approach to this contract, over and above the specified requirements specified herein. As such, each proposer must recognize these specifications to be the minimum necessary for successful service delivery of the Maywood Express Shuttle Fixed Route Transit and Paratransit (“Dial-A-Ride”) operations.
The City of Maywood requests to attain a Monday - Saturday Fixed-Route Transit (FRT) and Monday – Sunday Paratransit Dial-A-Ride (DAR) services under a Professional Services Agreement. The City will award no more than one contract on a not-to-exceed basis.
The Request for Proposal (RFP) is requesting a separate cost proposal for Maywood Express fixed-route transit and paratransit Dial-A-Ride Services for a period of a five (5) year service contract with two (2) one-year options to extend.
Proposers may respond to this RFP in the following way:
Proposals submitted by one Contractor to provide both fixed-route transit and paratransit services within their company
Proposals submitted by partnerships between multiple Contractors to jointly provide the fixed-route transit and paratransit services. Under this scenario, only one prime Contractor with Subcontractor(s) will provide a portion of the work.
II. BACKGROUND
The City of Maywood is a General Law City with a Council and City Manager form of government. At 1.18 square miles, Maywood is the third-smallest incorporated city in Los Angeles County, which lies by the major (I-710) freeway and is located next to the east of Los Angeles. Incorporated in 1924, Maywood is a small Gateway City in Los Angeles County with a residential community population of approximately 27,000.
The City of Maywood transit services needs is met by local services provided by the Los Angeles County Metropolitan Transportation Authority (Metro), local fixed-route service, and Contracted paratransit Dial-A-Ride services contracted by the City of Maywood.
The Request for Proposal (RFP) is for contractual Fixed-Route Transit and Paratransit (Dial-A-Ride) services.
FIXED ROUTE SERVICE DESCRIPTION
2 In the year 2016, the Maywood Community Transit, formerly known as the “Maywood Express,” began its Monday – Saturday fixed-route transit operations with a route system servicing in the following stop sections:
1. Slauson Ave At Loma Vista (in front of Jack in the Box)
2. Slauson Ave at Fishburn Ave
3. Atlantic Blvd at Slauson Ave (in front of Food 4 Less Market)
4. 61st St at Clarkson Ave (near Vista Adult Day Care Center)
5. Slauson Ave at Mayflower Ave
6. Heliotrope Ave near Slauson Ave (Iglesia Del Nazareno)
7. 60th St at Woodlawn Ave
8. 60th St at Walker Ave
9. Alamo Ave at Slauson Ave (next to Riverfront Park)
10.58th St at Heliotrope Ave (Maywood YMCA)
11.57th St at Atlantic Blvd
12.57th St and King Ave
13.57th St at Fishburn Ave
14.57th St at Corona Ave
15.Corona Ave at 55th St
16.52nd St at Corona Ave (in front of a convenience store)
17.52nd St at Loma Vista Ave
18.Maywood Ave at 53rd St
19.Maywood Ave at 56th St (at Benito Juarez Park)
20.56th St at Pixley "Bunny" Park
21.57th St at Carmelita Ave
DIAL-A-RIDE - PARATRANSIT SERVICE DESCRIPTION
The City of Maywood has operated a paratransit Dial-A-Ride service since 2016. Dial-ARide is a Seniors and Americans with Disabilities Act (ADA) paratransit service.
Maywood’s Dial-A-Ride is currently a paratransit service serving the residents of the City of Maywood with curb-to-curb transportation service. Service is available to Maywood residents who are at least 62 years of age or disabled residents of any age. Wheelchairaccessible vans and paratransit vehicles are used to meet program needs.
The services will commence starting on July 16, 2022, with the original term of the contract valid through June 30, 2027. The City will reserve the right to discontinue the program without cause on thirty (30) days’ notice.
3 III. GENERAL REQUIREMENTS
A. PROPOSALS
In addition to addressing the Scope of Services section, proposals must also include all required information, policies, procedures, manuals, forms, etc., as outlined in the RFP.
Background and Experience of the Contractor
Discuss the overall capabilities of the company. Include a brief description of the company’s history, key personnel, staff responsibilities, organizational chart, and recent relevant experience as it applies to the Scope of Services.
This section should establish Proposer's experience and experience of personnel that will properly perform the scope of work. Identify key personnel to be assigned and their experience (detailed).
Proposed Personnel and Project Team
The Contractor shall include an organizational chart showing the names of all proposed management staff. This shall include a “Project Manager/Administrator” who may be the City’s central contact person on day-to-day operations for both the fixed-route and paratransit services. The Fixed Route transit and Paratransit Manager(s) or “Project Manager/Administrator” shall be fully and solely dedicated to this contract for the term of the contract.
Employee Training
Describe all employee training programs including the driver, maintenance, management, reservationist, dispatch, road supervisor, and safety training. The proposal must include one complete copy of the driver training program and safety program.
Maintenance Program/Strategy
In this section, Contractors should discuss their Five-Year Maintenance Plan and strategy including:
Responding to road calls;
Warranty coverage/inventory management;
Recruitment of vehicle maintenance staff; and
Provide written maintenance procedures and ability to ensure compliance throughout the contract
4 Describe vehicle servicing and cleaning procedures, requirements, and schedule. Provide a sample schedule and checklist of vehicle servicing and detailing
Maintenance of Equipment
Describe how vehicle maintenance will be performed at the Contractor’s facility during the contract’s first two years. Outline which works will be in-house and which work will be performed in another manner. Provide descriptions for the type of equipment to be used for maintenance.
Backup Transit Shuttle
Indicate the make and model of a backup transit shuttle, if any, the Contractor proposes to use to ensure uninterrupted fixed-route transit services while maintenance is performed on City shuttles. The City is to approve the proposed transit shuttle and verify insurance coverage before placement into service.
Paratransit Operation Plan
Overall Operation Plan:
Please provide a detailed description of how your company proposes to provide the City’s Dial-A-Ride service.
Dispatching/Software:
Describe how vehicles will be dispatched. List any software/hardware to be used for dispatching. If the system uses Global Positioning System (GPS), please mention the type of GPS technology used and whether real-time GPS data can be provided to the City.
Facility/Fueling Description
The Proposer shall provide a detailed description of their proposed facility(s) where all vehicles are to be maintained, fueled, and stored during the term of the contract.
Include the facility's address and describe the facility's size and features, maintenance capabilities, storage capacity and the number of vehicles to be stored there, administrative office space, security, and any other significant features.
Implementation/Transition Plan
The Proposers shall submit an implementation/transition and operational plan and schedule. These step-by-step plans shall include, at minimum, the following:
staffing, personnel training, vehicle maintenance and storage, fueling, cleaning, and washing, uniforms, farebox collection, licensing and permits, insurance, road calls, accidents/incidents, documentation, and reporting. Also include any
5 procedures relating to the collection, recording, depositing, and reporting of all cash receipts.
B. STATEMENT OF COMPLIANCE/ SUGGESTED CHANGES
Contractors must submit a Statement of Compliance with the RFP, the Draft Agreement terms and conditions, and if any, a listing of exceptions and suggested changes. A description of any cost implication for suggested changes must also be included. The Statement of Compliance must declare either:
1. This proposal is in strict compliance with the Request for Proposal and Draft Agreement and no exceptions to either are proposed; or
2. This proposal is in strict compliance with the Request for Proposal and Draft Agreement except for the items listed.
For each exception or suggested change, the contractor must include:
o Reasons for submitting the proposed exception or change. o Any impact the change or exception may have on contract costs, scheduling, or other considerations.
C. LATE SUBMITTALS
It is strongly recommended that proposals be delivered in-person or via personal courier by or before the submission deadline. Proposals received after the specified submission deadline will be disqualified and not considered. Proposals postmarked before the applicable deadline date but received after the deadline will also be disqualified and not considered. Proposers are responsible to ensure the timely submission of their proposals. Proposals may not be submitted by facsimile or electronic mail.
D. RESPONSIVENESS
All submittals will be reviewed by the City to determine compliance with all requirements and instructions as specified in the RFP. Firms are notified that failure to comply with any part of the RFP issued by the City may reject the submittal as non-responsive. The City also reserves the right, at its sole and absolute discretion to waive minor administrative errors.
E. LEGAL AUTHORIZATION
6 All forms and documentation included in this RFP must be signed and dated by a person authorized to legally bind the Proposer to a contractual relationship with the City.
F. INSURANCE COVERAGE
If a Proposer is selected, all insurance documentation will be provided to the City before the execution of a contract at the expense of the Proposer. All insurance requirements are included as a provision of the contract.
G. SUB-CONTRACTORS
Proposer shall identify any sub-contractors and describe the responsibilities that will be assigned to them about this service. The same level of references and background information required for Proposers shall be required of any subcontractors.
H. ACCEPTANCE OF CONDITIONS
Proposer shall include a statement offering the acceptance of all conditions listed in the RFP document (including, but not limited to, all the conditions reflected in the Sample Contract Services Agreement, which shall be submitted with the proposal.
I. PUBLIC RECORD
All proposals submitted in response to this RFP will become the property of the City upon submission and a matter of public record pursuant to applicable law. City reserves the right to make copies of all proposals available for inspection and copying by interested members of the public as records of the City and the City shall be under no obligation to the Proposer to withhold such records. Insofar as a proposal contains information that the Proposer regards as proprietary and confidential, it shall be the responsibility of the Proposer (and not the City) to specifically identify which items of information are proprietary and identify in writing which specific pieces of information are proprietary. It shall be insufficient for the Proposer to merely identify the entire proposal or an entire page or set of pages as proprietary. Concerning information deemed proprietary, the procedures set forth under subsection (T) below shall be observed. Not-to-exceed sums, hourly rates, and the like that may be outlined in a proposal shall not constitute proprietary information nor shall any information readily available to the public or any other information not regarded as proprietary and confidential under federal or state law.
J. RIGHT TO REQUEST ADDITIONAL INFORMATION
7 During the evaluation process, the City reserves the right, where it may serve the City's best interest, to request additional information or clarifications from Proposers, or to allow corrections of errors or omissions. At the discretion of the City, firms submitting proposals may be requested to make oral presentations as part of the evaluation process.
K. ADDITIONAL SERVICES
The Scope of Work describes the minimum baseline level of services required for the services contemplated under this RFP; however, cost-effective proposals that exceed the minimum levels of service are welcome. Upon final selection of the firm, the Scope of Work may be modified and refined during negotiations with the City to account for the performance of services that exceed the baseline level called for under this RFP.
L. CONFLICT OF INTEREST
By signing the Agreement, the successful Proposer declares and warrants that no elected or appointed official, officer, or employee of the City has been or shall be compensated, directly or indirectly, in connection with the award of the Agreement or any work for the proposed project. For the term of the Agreement, no elected or appointed official, officer, or employee of tile City, during the time of his/her service with the City and for two (2) years following his/her termination of office or employment with the City, shall have any direct interest in the Agreement, or obtain any present, anticipated, or future material benefit arising therefrom.
M. ADDITIONAL SERVICES
The Scope of Work describes the minimum baseline level of services required for the services contemplated under this RFP; however, cost-effective proposals that exceed the minimum levels of service are welcome. Upon final selection of the firm, the Scope of Work may be modified and refined during negotiations with the City to account for the performance of services that exceed the baseline level called for under this RFP.
N. COMPLIANCE WITH LEGAL AND REGULATORY REQUIREMENTS
Confidential Information
City reserves the right to make copies of a Proposer's proposal available for inspection and copying by members of the public (including proposals which may contain information the Proposer regards as proprietary in nature), unless the City's legal counsel determines that the information which the Proposer regards as proprietary may be withheld pursuant to applicable provisions of the California
8 Public Records Act (Gov. Code section 6250 et seq.) or other applicable state or federal law. In the event City proposes to disclose records containing information the Proposer has specifically identified as being proprietary and confidential, City shall notify the Proposer in writing of its intent to release such information and the Proposer shall have five (5) working days after City's issuance of its notice to give City written notice of Proposer's objection to the City's release of proprietary information. The city will not release the proprietary information after receipt of the objection notice from the Proposer unless: (i) the objection notice is not received by the City until after the close of business on the 5th day following the City's issuance of the notice of intent to disclose; {ii) the City is ordered to release the information by a court of competent jurisdiction; or (iii) Proposer's objection notice fails to include a fully executed indemnification agreement wherein the Proposer agrees to indemnify, defend, and hold harmless the City, and its elected and appointed officials, officers, directors, employees, and agents from and against all liability, loss, cost or expense (including attorneys' fees) arising out of any legal action brought to compel the release of records containing the proprietary information which the Proposer wishes to withhold. Again, the Proposer must specifically identify the information it deems proprietary.
Clarification
Should discrepancies or omissions be found in this RFP or should there be a need to clarify this RFP, questions or comments should be emailed to the City's representative regarding this RFP process. The City shall not be responsible for, nor be bound by any oral instructions, interpretations, or explanations issued by the City.
Certification
By submitting a proposal, Proposer certifies that it has fully read and understands this RFP and has full knowledge of the nature, scope, and scale of services and tasks that are to be performed under this RFP. Proposer also certifies that its proposal was prepared without prior understanding, agreement, or connection with any other Proposer submitting a proposal for this RFP and is in all respects fair and without collusion or fraud so that all proposals will result from free, open, and competitive proposing among all Proposers.
Assignment and Guarantee
No assignment by the Proposer of the contract or any part thereof, or of funds to be received hereunder, is binding unless the City has given written consent before such assignment. There is also no guarantee of a minimal amount of work or compensation for any Proposer selected for contract negotiations.
9 Financial Responsibility for Proposal Cost
The City accepts no financial responsibility for any costs incurred by the Proposer in responding to this RFP. Proposals will become the property of the City and may be used by the City in any way deemed appropriate. Received proposals will not be returned to the Proposer.
Reserving Rights
The City reserves the right to reject any proposals received as a result of this RFP.
The city's potential award of a contract will not be based on any single factor, nor will it be based solely or exclusively on the lowest cost proposal. If a contract is awarded, it will be awarded to the Proposer who in the judgment of the City has presented an optimal balance of relevant experience, technical expertise, technological innovation, quality of service, work history, and other factors which the City may consider relevant and important in determining which proposal is best for the City.
Discrimination
The Proposer or Contractor and all Sub-Contractors must not discriminate, nor permit discrimination against any person on the grounds of race, national origin, sex, handicap, sexual orientation, or veteran status in their employment practices, in any of their contractual arrangements, in all services and accommodations they offer the public or in their business operations.
Equal Opportunity
During the performance of the contract, Proposer agrees to the following:
Proposer shall comply with all the requirements, where applicable, of the California Fair Employment Practice Commission and provisions of, when applicable, all federal, State of California, County of Los Angeles, and City of Maywood laws and ordinances related to employment practices. Proposer shall not discriminate against any employee or applicant for employment based on race, religion, color, gender, age, handicap, national origin, or ancestry, except when such a condition is a bona fide occupational qualification reasonably necessary for the normal operations of the Proposer.
1. The Proposer agrees to post in conspicuous places, visible to both employees and applicants for employment, notices setting forth the provisions of this nondiscrimination clause.
2. Proposer, in all solicitations or advertisements for employees, placed by, or on behalf of the Proposer, shall state that Proposer is an Equal Opportunity Employer.
10 Indemnification
Proposer, at its own expense and without exception, shall indemnify, defend, and pay all damages, costs, expenses, including attorneys' fees, and otherwise hold harmless the City, its employees, and agents from any liability of any nature or kind concerning the preparation or presentation of a proposal in response to this RFP.
Gratuity Prohibition
Proposer shall not offer any gratuities, favors, or anything of monetary value to any official, employee, or agent of the City to influence consideration of this proposal.
11 IV. SCOPE OF SERVICES
The selected Respondent shall provide the following scope of services as follows:
1. DEFINITIONS
For this Request, the following words are defined as follows:
i. Fare - Shall mean the fare paid by the customers to the Fixed Route Transit/Paratransit Service driver for the trip. The program is currently free to the riders. The city will set the fares.
ii. Trip - Shall mean the transport of a customer or customers from origin to destination, where the destination is defined as the point at which the customer or customers exit the vehicle
2. FIXED TRANSIT ROUTE OPERATIONS
The Contractor shall provide all facilities, equipment, supplies, services, and personnel necessary to operate the Maywood Express Fixed Route transit services unless specifically identified in this document.
Schedules
The fixed-route transit service operates per the printed schedule provided by the City. Schedules are printed with departure times at “time points” along the route. Schedules/Maps are attached. (Exhibit A)
Adjustments
Adjustments may include (but are not limited to) expanding or decreasing service hours, days of service, increasing or decreasing service areas, adjusting fares, and/or requiring reservations.
The contractor is required to make changes as requested within thirty (30) calendar days of the receipt of the notice. If the contractor cannot or elects not to make the changes requested, or costs cannot be agreed on, the City shall have the option of canceling the contract.
Hours of Operation
Fixed-route transit service operates IN THE CITY during the following hours:
Monday - Friday: 7:00 a.m. - 5:00 p.m.
Saturday: 7:00 a.m. - 3:00 p.m.
Sunday: The Maywood Express Shuttle does not operate on these days.
12 *The fixed-route transit service shall operate fifty-two weeks per year, excluding all holidays.
Service Holidays
Fixed-route transit services do not operate on the following holidays:
New Year’s Day (first day of January)
Labor Day (first Monday in September)
Thanksgiving Day (fourth Thursday in November)
Christmas Day (twenty-fifth day of December)
Required Driver Services (Fixed Route Transit)
In addition to operating the vehicle and performing a pre-trip inspection of the vehicle prior to operation, including cycling of the wheelchair ramp, fixedroute drivers are required to perform the following functions:
Operate wheelchair lift and secure wheelchair passengers; Accurately input and maintain detailed passenger and trip information using daily run/trips sheet;
When one or more individuals are standing at a City shuttle stop, drivers are to stop and announce the stop location and route – Passengers are not required to flag the driver down;
Change destination sign information as needed;
Hand out and collect on-board passenger surveys;
Hand out service notifications and promotional gifts; Fill schedule holders daily before pullout; and
Other data collection as necessary.
Charter Service
The contractor may, from time to time, be requested to provide special transportation services in addition to those described in this RFP. The Contractor shall provide this service under the same terms and conditions of the contract unless agreed to otherwise. The Contractor will not be allowed to use any vehicles for charter service unless directed to do so by the City. Examples of the City’s possible approved charter services are:
13 Transporting residents or employees during a declared emergency City of Maywood sponsored events
3. DIAL-A-RIDE - PARATRANSIT OPERATIONS
The Contractor shall provide all facilities, equipment, supplies, services, and personnel necessary to operate Dial-A-Ride service unless specifically identified in this document. (Approved Satellite Points) are attached. (Exhibit B) Hours of Operation
Fixed-route transit service operates IN THE CITY during the following hours:
Monday - Friday: 7:00 a.m. - 5:00 p.m.
Saturday: 10:00 a.m. - 5:00 p.m.
Sunday: 6:00 a.m. – 3:00 p.m.
*The Dial-A-Ride service shall operate fifty-two weeks per year, including all holidays.
Required Driver Services (Paratransit)
In addition to taking the passenger to and from their destination and performing a pre-trip safety inspection of vehicles, Dial-A-Ride drivers are required to perform the following functions:
Help passengers with disabilities in and out of the vehicle Secure mobility devices, air tanks, and other disability-related equipment
Ensure riders’ safety belts are secure
Operate wheelchair lift and secure wheelchair passengers Collect fares
Input and maintain an accurate trip log(s)
Submit timely “Unusual Occurrence Reports” to the City, after each out-of-ordinary incident occurring while in-service
Hand out service notifications, passenger surveys, and promotional gifts
Other data collection as needed
4) UNIVERSAL SERVICE CONDITIONS FOR PARATRANSIT AND
TRANSIT
Eligible Users
The dial-a-ride service shall be available to City of Maywood residents who are: (a) At least sixty-two (62) years of age; or (b) disabled or (c) already
14 enrolled in the Maywood Transportation Services Program as of June 2016.
The term disabled is intended to include all who are unable to use public transit because of illness, injury, age, or other certified permanent disability.
The shuttle service shall be available to all Maywood residents. (Trips to and from the YMCA are free to residents). Each participant is entitled to a maximum of 20 trips per month.
Maywood Express shuttle provides transportation services to all Maywood residents regardless of age and transit services for visitors from adjacent cities.
Identification
Each eligible resident who signs up to use the Dial-A-Ride service shall have a uniquely numbered identification card bearing his/her name.
Swipe Cards
The contractor will propose a swipe card system or conventional voucher Program. The cost of the swipe card system and/or administrator; the voucher program shall be built into the contractor's administrative charge, price per trip, and/or revenue hour service rate.
Dedicated Telephone Number
The contractor will maintain a dedicated telephone number for the exclusive use of the City of Maywood Fixed Route Transit/Paratransit Service. The contractor will have its dispatchers and other staff answer the line with the words "Maywood Dial-A-Ride" or (Program Name).
Calling for a Ride
When a resident embarks on a Transit/Paratransit Transportation Service trip, he or she must telephone for a ride and report their identification number to the dispatcher. When the traveler begins the ride, the resident must show the driver their identification card to confirm their eligibility. Failure to identify himself or herself as an eligible user of the Transit/Paratransit Service will cancel the trip.
Response Time
A Fixed Route Transit/Paratransit Service vehicle will arrive sometime during a thirty-minute "response window" that starts ten minutes after the client calls. Most trips shall arrive within 30-40 minutes.
Pick-Up and Drop-Off Standards
Vehicles will offer curb-to-curb service for ambulatory senior rides and doorto-door service for the disabled. In curb-to-curb cases, vehicles will arrive
15 during a thirty-minute response window. In instances where riders cannot walk out to the curb but can walk as far as a driveway that is accessible to a vehicle, the driver will pull into the driveway to pick them up. In door-to-door instances, drivers will, if necessary, help disabled riders negotiate their exit from their dwellings by taking such actions as holding open a door, stepping a short way inside the dwelling to help with a wheelchair, or carrying a small package or handbag. Drivers are not expected to carry groceries into a dwelling.
Reservation Service
Patrons may reserve a trip up to a day in advance, specifying the time of pick-up and destination for a one-time-only trip. Recurring trips must be called in and confirmed the day before needed
Subscription Service
Patrons may schedule a standing pick-up for the same time daily or weekly.
The contractor shall maintain a list of said appointments at its dispatch facility. In the event of contract termination, said list shall be provided to the City.
Aides for the Senior/Disabled
An aide may accompany each senior/disabled rider and shall not pay a fare.
When reporting service data, the contractor shall report aides separately from eligible registered users.
Service Area
Eligible City residents may be picked up and transported within all incorporated areas of the City of Maywood and sites within a 2-mile radius of the City's borders with the exception of sites outside the city primarily used for non-essential retail uses. In addition, residents may be picked up from or transported to:
1) Kaiser Medical, 9333 Rosecrans Ave., Bellflower
2) Kaiser Medical, 7825 Atlantic Ave, Cudahy, CA 90201
3) Medical Offices, 9400 Rosecrans Ave., Bellflower
4) Briar Crest Nursing Center, 5648 E. Gotham St., Bell Gardens 5) US Veterans Center, 5400 E. Olympic Blvd., Commerce
6) Medical Offices, 8043 2nd Street, #105, Downey
7) PIH Medical Offices, 11411 Brookshire Ave., Downey
8) PIH Medical Offices, 11480 Brookshire Ave., Downey
9) PIH Health Hospital, 11500 Brookshire Ave., Downey
10)Medical Offices, 11525 Brookshire Blvd., Downey
16 11)Medical Offices, 8317 Davis St., Downey
12)Health Care Partners, 8311 Florence Ave., Downey
13)Downey Dialysis Center, 8630 Florence Ave., Downey
14)Kaiser Medical, 9333 E. Imperial Hwy., Downey
15)Kaiser Medical, 9449 Imperial Hwy., Downey
16)Care More Medical Group, 9040 Telegraph Rd, Downey
17)East Los Angeles Doctors Hospital, 4060 Whittier Blvd., LA 18)Martin Luther King Hospital, 1670 E. 120th St. L.A.
19)St. Francis Medical Center, 3630 E. Imperial Hwy., Lynwood 20)St. Francis Medical, 3621 Martin Luther King Blvd., Lynwood 21)Rancho Los Amigos, 7601 E. Imperial Hwy, Downey, Ca
22)Lynwood Medical, 3737 Martin Luther King Blvd, Lynwood NOTE: The City may add/delete Satellite Facilities or Disallowed Sites at its discretion from time to time.
Maywood Express Transit and Paratransit Fares
The Dial-A-Ride charges a $1.00 fee for the trip. The Maywood Express is a no-cost program for its residents and adjacent cities. The City may change the fares at its discretion as needed.
Billing
The contractor will charge as proposed within the cost proposal. The contractor will invoice the City in detail and the City will have 30 days to pay any undisputed cost.
Shared Rides
The contractor will make every reasonable effort to create shared rides to minimize congestion and other costs to the City.
Management Reports
The contractor shall furnish a report with each month's billing giving standard boarding, trip, revenue, and cost statistics. The number of trips shall be reported separately from the number of riders transported. Additionally, any operational problems, accidents, incidents, passenger complaints, and any actions taken regarding the events. The contractor shall furnish additional reports regarding the service at the City's request.
The Contractor shall notify the City of all accidents, both by telephone (within one hour) and in writing (by the close of the next business day). A fully investigated incident report outlining the details of each incident or accident including photos of any damage and cost
17 estimates for all necessary repairs shall be provided within 72 hours of the accident.
FTA Required Reporting
Contractor shall conduct Fixed Route Transit/Paratransit services each year as directed by the Federal Transit Administration (FTA} National Transit Database (NTD), to statistically compute valid passenger mile data including generating NTD reports as required. The contractor shall ensure that all reported NTD data meets FTA requirements and definitions. The contractor shall adhere to the most recent NTD data collection procedures.
Complaint/Customer Service Program
Contractor employees must treat all customers with courtesy; avoid any argument and exercise patience, forbearance, and self-control under all conditions. Details regarding Customer/Complaint Programs are as followed:
All complaints must be responded to by the Contractor within five (5) days of the time the complaint is received. The response shall be a form, which specifically addresses the complaint and explains the reason for the events, which caused the complaint.
Contractor must investigate customer complaints, determine their validity, and respond to the customer. To adequately investigate customer complaints, the Contractor must provide sufficient resources to investigate each complaint, to determine whether the complaint is valid or not, and to respond to the customer appropriately within five (5) days.
A copy of each letter sent by the Contractor responding to complaints, or complaint form used to respond by telephone, shall be sent to the City of Maywood.
Responsibility of Contractor
The contractor shall provide all management and operational functions necessary for the success of the Maywood Fixed Route Transit/Paratransit Service. The contractor must provide all vehicles, dispatch, drivers, insurance, fuel, and vehicle maintenance.
Records and Audits
18 The City, or any of its duly authorized representatives, upon reasonable written notice, shall have access, for audit and investigation, to any original books, documents, papers, and records of the Contractor which pertain to the service contract. The following record-keeping and audit control must be met:
o Contractor shall maintain financial records and reports relating to funds received during the contract
o Contractor shall maintain books, records, documents, and other accounting procedures and practices which reflect all costs of any nature expended in the performance during the contract
o Records shall be subject to audit or inspection by duly authorized City, County, State, or Federal personnel
o All financial records directly related to the work performed in this contract shall be made available to the City upon request The retention of records by the contractor, as mentioned in the Southern California Region, is for four (4) years after the final payment under the contract.
Flag Downs
Flag downs by passengers are not allowed at any time.
5) QUALIFICATIONS OF CONTRACTOR
A contractor must meet the minimum qualifications set forth to be considered eligible to provide the proposed service.
The contractor must:
1. Be a transportation organization experienced in the provision of transit, shuttle, or social service transportation services.
2. List the major relevant projects in which your firm has participated in either a lead or a support role; state the degree of involvement.
A minimum of three (3) references from current clients or clients served within the last three years is required for review.
3. Furnish brief resumes of the designated project manager and key project personnel.
4. Be a privately owned transportation company.
5. Be financially sound.
6. Provide two years of financial statements.
7. Be able to commit enough vehicles to the Maywood Fixed Route Transit /Paratransit Service to be able to handle the highs and
19 lows of the demand without subcontracting. The contractor can propose to sub-contract wheelchair van trips.
6) LIAISON
The contractor shall coordinate closely with the City and relevant municipalities, agencies, and interest groups on all city transportation program matters and operation status. Under no circumstances shall Contractor represent or speak on behalf of the City. The contractor shall attend meetings with the City as requested. A contractor may be required to make presentations at community or service club-type meetings. 7) DRIVER QUALIFICATIONS
Vehicle operators must be trained in all operational procedures relating to the system. Training must include techniques for dealing with the public helpfully and courteously, bilingual in Spanish, basic information about the route and the City of Maywood, and sensitivity and empathy training directed towards the needs of elderly and disabled passengers, in compliance with the Americans with Disabilities Act.
Vehicle operators shall be trained to operate all types of vehicles, wheelchair lifts, ramps, and securement systems, as well as other equipment which they may be expected to use in Fixed-Route and Dial-A-Ride Services.
Vehicle operators may not request or in any way solicit tips from customers. Tips may be accepted if offered; however, any operator receiving more than one complaint about solicitation of tips will be removed from the program.
All drivers performing the Fixed Route Transit and Paratransit Service shall meet the following minimum qualifications:
1. Be legally licensed to operate in Maywood per requirements listed in the Maywood Municipal Code.
2. Not have been convicted of driving while intoxicated or under the influence of controlled substances within the preceding five years, or not have criminal charges pending for an offense for driving while intoxicated or under the influence of controlled substances.
3. Be alert, clean, careful, courteous, sober, drug-free, and competent in driving skills.
4. Able to handle complaints and problems as required.
20 5. Be dressed in an acceptable professional uniform, clean and neat appearances (i.e., white shirt, long dark pants, no opentoed sandals, and no tank tops).
6. Meet all City, County, State, and Federal requirements. 8) DRUG TESTING
The Contractor shall conduct an ongoing drug and alcohol testing program which shall meet state and federal standards and is consistent with the requirements in the Maywood Municipal Code and may include a driving test, test on incident or accident, test on reasonable suspicion, random testing, and training of supervisors to recognize drug and alcohol symptoms.
A list of testing laboratories shall be provided to the city and all employees tested.
9) SAFETY
The contractor shall have an ongoing safety program that promotes and rewards safe driving. Please attach a description of a comprehensive safety plan that the proposer has adopted and that demonstrates the proposer's commitment to safe transportation. The Contractor shall provide the name of a person trained and designated as the safety coordinator who shall report to the City as requested on safety issues and accident statistics as requested.
10) VEHICLE CLEANING MANAGEMENT
The contractor is required to maintain the inside and outside appearance of vehicles in a neat, safe, and operable condition. Such cleaning shall include the removal of dirt, debris, and graffiti. All vehicles used in revenue service must be cleaned daily. The interior shall be swept, dusted, and wiped down.
Any damage to seat upholstery shall be repaired as soon as possible. Any bodily “releases” must be thoroughly cleaned and sanitized before vehicles can be returned to revenue service. Contractor is also to adhere to federal, state, and local health orders as well as Centers for Disease Control and Prevention (CDC) guidelines regarding health and safety threats. The City of Maywood may, at its discretion, perform with or without prior notice to Contractor inspections of vehicles to ensure proper cleaning and vehicle maintenance procedures are being employed. 11) VEHICLE MAINTENANCE AND EQUIPMENT
All vehicles and vehicle equipment shall be maintained by the Contractor in good repair and a condition satisfactory to the City. The contractor shall assume all responsibility for the proper maintenance of the vehicles. It shall be the expressed responsibility of the Contractor to assume all coordination
21 with the original manufacturer of the vehicles if necessary to keep the vehicles in safe and good operating condition.
The Contractor, at its sole cost and expense, shall provide lubricants, parts, repairs, paint, supplies, labor, road-call services, and all other necessary equipment required for the maintenance and operation of the vehicles and equipment utilized in providing contracted transit and paratransit services.
The following Maintenance and Equipment conditions are as followed:
a) Vehicles shall be easily recognized and marked as the Maywood Dial-A-Service and Maywood Express name.
b) Vehicles shall be maintained on preventative maintenance inspections and regular preventative maintenance inspections.
Servicing shall occur at a minimum of every 5,000 miles. c) Inspection of all service vehicles shall be completed after its daily service to ensure all lights are functioning, all seating is secure, and that all tires, wheels, lugs, air brake systems.
d) The contractor should specify its preventative maintenance program for all its service vehicles. (i.e., Wheelchair lift, mechanical, electrical.
Hydraulic or other operating systems)
e) Vehicle maintenance records shall be kept for at least one (1) year and/or as required by the California Highway Patrol. The contractor shall provide copies of the completed preventative maintenance checklists to the City.
1) Wheelchair-accessible vehicles shall be available
within the same service parameters as regular shuttle
service. The wheelchair-accessible vehicles shall
meet all requirements of the 1990 Americans with
Disabilities Act (ADA) and all applicable amendments
thereto. (Contractor shall be responsible for the proper operation and maintenance of all wheelchair lifts)
2) Each vehicle shall be equipped with a mobile data
terminal or tablet for receiving rider information.
3) The proposer shall submit sample design layouts of
typical vehicles to be used in the proposed service.
4) Maintenance records shall be made available to the
City upon request.
22 12) DISPATCHING
The contractor shall provide a dedicated telephone number, which shall be answered with the words "Maywood Dial-A-Ride" or (Name of FixedRoute Transit and Paratransit Service)". The contractor shall provide dispatching twenty-four (24) hours per day. The dispatchers will be courteous and patient with all customers.
13) DESIGNATED PROJECT MANAGER
The contractor commits to maintaining throughout the term of the contract a project manager. Should the Contractor s project manager no longer be available to administer the contract, the City of Maywood reserves the right to terminate the contract immediately. 14) PAYMENT
The contractor shall invoice the City monthly, submitting all management reports along with its invoice. The City shall pay the contractor within a reasonable time from receipt of invoice, in a manner consistent with the City's normal accounts payable practices.
15) PLANNING AND MARKETING
The successful proposer shall participate with the City in the design and implementation of changes in the service's operating characteristics.
Recognizing the Proposer's expertise, the successful proposer shall be requested to inform the City of any observations regarding modifications to the service routing, scheduling, marketing, etc. for purposes of improving the service.
It is noted that marketing costs should be included in the proposer's cost for this contract. The City will not address marketing efforts separately and no additional compensation will be allowed.
16)FEES PERMITS TAXES AND CERTIFICATES
The Contractor shall have the sole. obligation to pay all, license fees, assessments, and taxes, including but not limited to use, sales, property, or other taxes, plus penalties and interest which may be imposed on the contractor as a result of the work under the contract.
The Contractor must obtain a business license from the city. The Contractor must obtain any adjoining City that requires a license within the service parameters
17) INSURANCE REQUIREMENTS
With respect to performing work under this agreement. The insurance shall be satisfactory to the City Attorney and shall be evidenced by delivery to the
23 City Clerk’s office of a certificate of insurance executed by the insurers listing coverage and limits, expiration dates and terms of policies, all endorsements whether or not required by the City, and a certified copy of each policy, including all endorsements.
Contractor shall maintain insurance from a company acceptable to City as described below:
A. Worker's Compensation insurance with State of California statutory limits and employer's liability insurance with limits of not less than $1,000,000.00 per accident and $1,000,00.00 per disease.
B. Comprehensive general liability insurance with a combined single limit of no less than $1,000,000.00 per occurrence.
C. Comprehensive auto liability insurance with a combined single limit of no less than $1,000,00.00 per occurrence. Such insurance shall:
o Include coverage of all vehicles used in this service. o Name the City, its elected and appointed officials, officers, employees, and agents as additional insured.
o Be primary for all purposes.
o Contain standard cross-liability provisions.
The proposer or contractor shall:
1. Furnish a statement of insurance with the proposal describing to what extent they meet these requirements by types and amounts of coverage or provide copies of certificates of insurance already in place which meet the minimum requirements;
2. Furnish properly executed certificates of insurance to City prior to the start of work under this agreement such certificates shall evidence all coverage required above and provide that such insurance shall not be materially changed, terminated, or allowed to expire except thirty (30) days prior written notice to City; and
3. Maintain such insurance from the time work first starts until completion of the work under this agreement.
18) REQUIRED FORMS
The proposal shall be valid for ninety (90) calendar days from the submittal date. If this offer is accepted within that period, the Proposer agrees to furnish all services and items as stipulated in the Request for Proposal (RFP) and any accompanying addenda.
The Maywood Fixed Route Transit and Paratransit passengers shall pay a set fare per trip. The proposer would invoice the City for each trip at the municipally approved cab meter rate in effect at that time plus the administration charge.
24 Failure to submit all required forms and certifications duly executed by an authorized officer of the Proposer's firm may render the proposal incomplete and unresponsive and may cause its rejection.
V. SCHEDULE
Deadlines
Release of Requests for Proposals March 31, 2022
Submittal of Questions April 08, 2022, by 3:00 pm
Response to Questions April 14, 2022, by 5:00 pm
Proposal Due Date April 21, 2022, by 5:00 pm
Proposal Review/Evaluation Week of April 25, 2022
Optional Interview (if required) Week of May 02, 2022
Tentative award of contract May 2022
Tentative Start date July/August 2022
* These dates are anticipated and may change.
VI. LIST OF INTERESTED PROPOSERS
The full content of the RFP is available through the City website at www.cityofmaywood.org. If addendums are necessary, they will be posted onto the previously mentioned websites as well. All respondents interested in proposing on this RFP are encouraged to sign-up on the "List of Interested Proposers" for the project. This list will be used to email any project updates, addendums, changes or responses to written inquires and will be distributed to all interested contractors. To get on the list please email [email protected].
VII. QUESTIONS
All questions regarding this RFP shall be submitted in writing by email to: Administrative Analyst, Miguel Leon, [email protected]. The date and time when questions must be submitted are shown in “Section V-Schedule” of this RFP. Questions with their answers will be posted on the City website by the date and time set forth in this RFP.F
25 VIII. SUBMITTAL PROCEDURES
Submittals shall comply with all conditions, requirements, and specifications contained herein, with any departure rendering the proposal non-responsive and may serve as grounds for rejection of the proposal at the City’s sole discretion. The submittal shall contain the name of this RFP and Respondents shall provide one electronic copy and (3) three copies of the proposal (two bound and one unbound), single-sided.
All proposal submittals shall be mailed or delivered and received by the City no later than April 21, 2022, at 5:00 p.m. addressed as follows:
City of Maywood
City Clerk’s Office
Attention: Shirley Quinones
4319 Slauson Avenue
Maywood, CA 90270
For delivery purposes, the City Clerk’s phone number for the City is (323) 562-5714. In addition to the submission of the hard copies of the proposal, Respondents shall also submit one electronic copy (searchable PDF format) by the same date and time to NAME AND EMAIL ADDRESS.
IX. SUBMITTAL FORMAT
All Respondents must submit qualifications according to the specifications set forth below.
Proposals should be prepared in such a way as to provide a straightforward, concise delineation of capabilities to satisfy the requirements of this RFP. Responses should emphasize the Respondent’s demonstrated capability to perform work of this type.
Proposals shall be valid for a minimum of 90 days following submission. Expensive bindings, colored displays, promotional materials, etc., are not necessary or desired.
EMPHASIS SHOULD BE ON COMPLETENESS AND CLARITY OF CONTENT. The City reserves the right to request additional information that, in the City’s opinion, is necessary to ensure that the Proposer’s competence, qualified employees, business organization, and financial resources are adequate for the performance of the services under this RFP.
A. WORK PROPOSAL
1. Cover Letter
a. Provide a cover letter including the Respondent’s name, address, and telephone number of the contact person(s) who is authorized to submit the proposal on behalf of the
Respondent. The cover letter shall include a brief general statement of intent to perform the services and correspondent that all elements of the RFP have been reviewed and
understood. The letter should include a brief description of the Respondent’s Respondent. The letter should be signed by an individual who can bind the Respondent contractually. b. There shall be one person from the Respondent identified in the proposal who shall be the Respondent’s designated
26 representative and who is responsible for the services listed in "Section IV - Scope of Services" of this RFP (“Point of Contact”).
c. If applicable, Respondent shall acknowledge receipt of any addendum to the RFP.
2. Table of Contents
a. Include a table of content identifying the contents of the proposal in a format consistent with the proposal
requirements and format set forth herein.
3. Experience and Qualifications
a. Describe the Respondent, its size and organization, the number and location of offices, and general operational structure, as well as its management and key personnel.
Provide a description of the Respondent’s Respondent, its size and organization, the number and location of offices and general operational structure. Include a discussion
demonstrating that the Respondent has the resources
(financial, equipment, labor, and capacity) available to provide services under this RFP from the first day at the start of the work.
b. Provide a summary of Respondent’s qualification and
experience with providing the requested service for a
municipality. At a minimum, Respondent should have at least three (3) years of consecutive experience.
c. Provide at least three references that received similar services from your Respondent at a minimum over the last five years. Include the name of the organization, contact name, telephone number, and email address.
d. Demonstrate the qualifications of all personnel to be assigned to the City, including key personnel, by providing resumes and/or relative experience summaries describing their
education, credentials, licensing, training, and related experience and their proposed roles for this contract.
e. Provide an organization chart of the proposed team, including a contingency plan should a member of the proposed team be unable to fulfill their responsibilities.
f. Respondent shall hold the required license(s) to perform the work and provide proof of required license for itself and its personnel.
4. Approach to Scope of Services
a. This section should set forth a comprehensive description of the approach to providing the Scope of Services and should clearly demonstrate an understanding of the City’s
requirements, the work to be done and the objectives to be accomplished.
27 b. Provide a description of the work plan for the services describing how each task under the Scope of Services will be accomplished. This may be used as an Exhibit for the Scope of Services to the agreement.
c. Provide any other information or tasks that Respondent believes necessary to complete the Scope of Services.
B. COST PROPOSAL
1. Detailed Cost Proposal
a. Respondent shall submit a detailed cost proposal that shall include all tasks required to perform the Scope of Services.
The cost proposal shall indicate how the City will be charged for services (i.e., unit, hourly or flat rate basis as appropriate) for the term of the contract, including any extensions. Costs should include all services and materials if any, needed to perform the Scope of Services.
b. As it relates to the services under this RFP, if Respondent is proposing to provide the services on an hourly basis, the cost proposal shall identify the hourly rate for the personnel needed to complete the Scope of Services.
c. In addition, Respondent shall also submit the
rates/compensation for any “additional services” that
Respondent can provide.
X. AGREEMENT FOR PROFESSIONAL SERVICES
The City of Maywood’s Agreement for Professional Services (Attachment 2) is included for review and comment. The Respondent’s submission of a proposal indicates Respondent’s compliance with such terms unless the proposal indicates that compliance is not possible. Proposed revisions should be addressed in the cover letter; however, the City maintains discretion to accept or reject the Respondent’s request for revisions. The City reserves the right to make any revisions to the proposed professional services agreement.
XI. GENERAL ADMINISTRATIVE INFORMATION
All respondents are advised to become familiar with all conditions, instructions and specifications of this RFP. By submitting a proposal, Respondent represents that it has thoroughly examined and become familiar with the work required under this RFP and that the Respondent has conducted such additional investigation as it deems necessary and convenient (i.e., visiting the locations), that Respondent is capable of providing the equipment, goods and services necessary to furnish landscape maintenance in a manner that meets the City’s objectives in this RFP. Once the contract has been made, a failure to have read the conditions or conduct any investigations of the properties shall not be caused to alter the contract or for Respondent to request additional compensation.
Each Respondent understands and agrees that the city, its departments, its officers, employees, or agents are not responsible for:
28 Any costs incurred by a Respondent in the preparation, delivery, or presentation of a proposal.
Any costs incurred by a Respondent in meeting the criteria as a result of making or submitting a proposal or subsequently in entering into a formal agreement with the City; and
Any errors, inaccuracies or misstatements related to the information or data supplied to any contractor by the City. The use of such information or data provided by the City, its officers, employees or agents is intended to be used at the sole discretion and risk of the Respondent in the preparation of a proposal pursuant to this Request for Proposals only.
The selected Respondent shall comply with any and all Federal and State laws applicable to the services. All proposals submitted to the City of Maywood in response to this RFP shall become the property of the City and will not be returned and such proposals, after the agreement is awarded, are subject to the California Public Records Act.
The City reserves the right to accept, reject, modify or cancel in whole or in part, this RFP.
The City reserves the right to accept or reject any or all proposals, negotiate modifications to proposals that it deems acceptable, request and consider additional information from any proposer, and waive irregularities and technical defects in the proposal process, all in its sole discretion. The City has no obligation, express or implied, to make an award.
The City may reject proposals from Respondents who cannot satisfactorily provide the experience and qualifications required by this RFP and/or provide the scope of services required herein. The City reserves the right to seek new proposals when it determines that it is in the best interest to do so.
XII. SUBMITTAL DUE DATE
The submittal package must be received prior to the submittal date specified in "Section V - Schedule" of this RFP. Respondents mailing a proposal must allow sufficient delivery time to ensure timely receipt of the proposal by the date and time specified. Submittals arriving after the deadline will not be considered.
XIII. SELECTION PROCESS
All proposals timely received shall be reviewed to verify that the proposal meets the minimum requirements and qualifications. Proposals that have not complied with requirements, do not meet minimum content and quality standards, or take unacceptable exceptions to the professional services agreement, may be eliminated from further consideration at the discretion of the City. Proposals will be reviewed and evaluated by an evaluation committee comprised of City of Maywood personnel.
The City will be the sole and exclusive judge of quality and compliance with proposal specifications in any of the matters pertaining to this RFP. The City’s final selection will not be dictated by any single factor or criteria including price. The City reserves the right to award the contract(s) in any manner it deems to be in the best interest of the City and
29 make the selection based on its sole discretion, notwithstanding the criteria set forth herein, including negotiating with one or more of the Respondents for the same services.
City will evaluate the proposals provided in response to this RFP based on the following criteria:
1. The City will evaluate Respondents based on meeting all of the City’s requirements and who offers the most advantageous combination of cost and high-quality service. In addition to cost, however, the City will consider the quality of services proposed, the financial qualification, and the work experience of the proposer in determining the best value to the City.
2. Other criteria shall include, but not be limited to:
a. Quality and completeness of proposal
b. Qualifications and experience of the proposer, including experience and qualifications of key personnel and staff
c. Similar experience and expertise in the type of work required, with the City or with other public agencies
d. Demonstrated understanding of the scope of services requested as well as the capacity of respondent
e. References
f. Financial stability of proposer
g. Cost to the City
h. Oral interviews, if applicable.
i. Any other factors determined by the City to be relevant to the performance of these services.
XIV. AUTHORITY TO WITHDRAW
The City of Maywood reserves the right to withdraw this Request for Proposals without prior notice. The City of Maywood makes no representation that any agreement will be awarded to any Respondent as a result of having responded to this request. All proposals submitted to the City of Maywood in response to this RFP shall become the property of the City and will not be returned.
XV. AWARD OF CONTRACT
Based on the outcome of the evaluation committee’s evaluation of the proposals, a recommendation will be submitted to the City Council for consideration of award. An award of a contract occurs when the contract is approved by the Maywood City Council.
Selection of a respondent with whom the City enters into contract negotiations or a recommendation of an award by the evaluation committee or any other party does not constitute an award of a contract. The contract shall be in accordance with the attached Agreement.
XVI. ATTACHMENTS
Attachment 1. Maywood Express Transit Route Map
Attachment 2. Dial- A-Ride Approved Satellite Points
ATTACHMENT 1
Maywood Express Transit Route Map
Maywood Express fixed-route transit system servicing in the following stop sections:
1. Slauson Ave At Loma Vista (in front of Jack in the Box)
2. Slauson Ave at Fishburn Ave
3. Atlantic Blvd at Slauson Ave (in front of Food 4 Less Market)
4. 61st St at Clarkson Ave (near Vista Adult Day Care Center)
5. Slauson Ave at Mayflower Ave
6. Heliotrope Ave near Slauson Ave (Iglesia Del Nazareno)
7. 60th St at Woodlawn Ave
8. 60th St at Walker Ave
9. Alamo Ave at Slauson Ave (next to Riverfront Park)
10. 58th St at Heliotrope Ave (Maywood YMCA)
11. 57th St at Atlantic Blvd
12. 57th St and King Ave
13. 57th St at Fishburn Ave
14. 57th St at Corona Ave
15. Corona Ave at 55th St
16. 52nd St at Corona Ave (in front of a convenience store)
17. 52nd St at Loma Vista Ave
18. Maywood Ave at 53rd St
19. Maywood Ave at 56th St (at Benito Juarez Park)
20. 56th St at Pixley "Bunny" Park
21. 57th St at Carmelita Ave
ATTACHMENT 2
Dial-A-Ride Approved Satellite Points
1) Kaiser Medical, 9333 Rosecrans Ave., Bellflower
2) Kaiser Medical, 7825 Atlantic Ave, Cudahy, CA 90201
3) Medical Offices, 9400 Rosecrans Ave., Bellflower
4) Briar Crest Nursing Center, 5648 E. Gotham St., Bell Gardens 5) US Veterans Center, 5400 E. Olympic Blvd., Commerce
6) Medical Offices, 8043 2nd Street, #105, Downey
7) PIH Medical Offices, 11411 Brookshire Ave., Downey
8) PIH Medical Offices, 11480 Brookshire Ave., Downey
9) PIH Health Hospital, 11500 Brookshire Ave., Downey
10)Medical Offices, 11525 Brookshire Blvd., Downey
11)Medical Offices, 8317 Davis St., Downey
12)Health Care Partners, 8311 Florence Ave., Downey
13)Downey Dialysis Center, 8630 Florence Ave., Downey
14)Kaiser Medical, 9333 E. Imperial Hwy., Downey
15)Kaiser Medical, 9449 Imperial Hwy., Downey
16)Care More Medical Group, 9040 Telegraph Rd, Downey
17)East Los Angeles Doctors Hospital, 4060 Whittier Blvd., LA 18)Martin Luther King Hospital, 1670 E. 120th St. L.A.
19)St. Francis Medical Center, 3630 E. Imperial Hwy., Lynwood 20)St. Francis Medical, 3621 Martin Luther King Blvd., Lynwood 21)Rancho Los Amigos, 7601 E. Imperial Hwy, Downey, Ca
22)Lynwood Medical, 3737 Martin Luther King Blvd, Lynwood
AGENDA REPORT
CITY OF MAYWOOD
AGENDA ITEM NO. 7.
DATE: March 23, 2022
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: JENNIFER VASQUEZ, CITY MANAGER
BY: HRANT MANUELIAN, FINANCE DIRECTOR
SUBJECT: ANNUAL FINANCIAL REPORT FOR FISCAL YEAR ENDED JUNE 30, 2021 RECOMMENDATION:
Staff recommends that the City Council receive and file the Annual Financial Report and Single Audit Report for the fiscal year ended June 30, 2021.
BACKGROUND:
The City retained Van Lant & Fankhanel, LLP, an independent Certified Public Accounting firm to perform the financial statement audit for fiscal year ended June 30, 2021. The auditor has issued an “unqualified” or clean opinion that the financial statements present fairly, in all material respects, the financial position and activities of the City.
The Annual Financial Report for the fiscal year ended June 30, 2021 and was issued on February 4, 2022.
The Annual Financial Report includes the audited financial statements, the independent auditors’ opinion, and detailed financial information along with the accompanying notes. The General Fund is the primary operating fund of the City. The following is a summary of FY 20-21 budget vs. actuals.
Actual revenues were $4,448,435 more than budgeted. The increase in revenues is primarily due to increased sales tax revenues as a result of a strong cannabis sales tax collected by the City. Operating
expenditures were $2,051,585 more than budgeted primarily due to investments in the Section 115 trust funds for both the Other Post Employment Benefits and CalPERS liabilities. These are treated as expenditures due to special accounting rules. The City put $1 million in each fund during Fy 20/21.
The actual fund balance for the General Fund was better than budgeted for by $1,809,850.
DISCUSSION:
Other Auditor Reports
Independent Auditor’s Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards
The auditor identified 1 deficiency that is considered to be a material weakness and 2 findings that are considered to be significant deficiencies. A significant deficiency is considered to be less severe than a material weakness.
Material Weakness
1. Parking Citations and Permit Collections - The auditor noted that the City had not collected all revenues from its third-party vendor relating to parking permits and citations. City management has since worked with the vendor and also reviews receipts collected on a monthly basis for reasonableness.
Significant Defiencies
1. Accuracy of Accounting Records – The auditors noted several material adjusting entries to the City’s accounting records, mainly the item noted above. The finance staff is working to create a review process for the year-end close to ensure that all entries and adjustments are properly posted.
2. Issuance of Building Permits – This is a continuation of the findings from the prior year. The Auditor has noted that there is no reconciliation between the City’s building permit system and the general ledger since they are two separate systems. The finance staff is working with the building department to create a reconciliation between the two systems. There is a new software system being used by the building department and finance staff will work with the building department to create a reconciliation between the two systems.
The finance team is committed to addressing these findings to ensure that they are corrected for the next audit.
Audit Conclusion
This letter is addressed to the City Council and includes the following comments; Management's estimates were reasonable, and the auditor had no disagreements with management. The auditor did not encounter significant difficulties in dealing with management in performing and completing the audit.
Material misstatements detected by the audit were corrected by management.
LEGAL REVIEW:
The City Attorney has reviewed this report.
FISCAL IMPACT:
There is no fiscal impact associated with this staff report.
ATTACHMENT(S)
1. Maywood Financial Statements FY 2021
2. Maywood Internal Control Report FY 2021
3. Maywood Audit Conclusion Letter FY 2021
CITY OF MAYWOOD
ANNUAL FINANCIAL REPORT
Year Ended June 30, 2021
City of Maywood
Annual Financial Report
Year Ended June 30, 2021
Table of Contents
Independent Auditor’s Report 1 - 3
Basic Financial Statements:
Government-wide Financial Statements
Statement of Net Position 4
Statement of Activities 5
Fund Financial Statements
Balance Sheet - Governmental Funds 6
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 7
Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 8
Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 9 Fiduciary Fund Statements
Statement of Net Position 10
Statement of Changes in Net Position 11
Notes to Financial Statements 12 - 36
Required Supplementary Information:
Schedule of Changes in Total OPEB Liability 37
Schedule of the City’s Proportionate Share of the Net Pension Liability 38 Schedule of Pension Plan Contributions 39
Schedule of Revenues, Expenditures, and Changes in Fund Balance - Budget and Actual:
General Fund 40
Gas Tax Special Revenue Fund 41
Notes to Required Supplementary Information 42
Supplementary Information:
Non-Major Governmental Funds: 43
Combining Balance Sheet – Nonmajor Funds 44 – 46
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances 47 – 49
Independent Auditor’s Report
The Honorable City Council
City of Maywood, California
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Maywood (City), as of and for the year ended June 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
1
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, each major fund, and the aggregate remaining fund information of the City of Maywood, as of June 30, 2021, and the respective changes in financial position thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.
Change in Accounting Principle
As reported in the financial statements, in fiscal year 2020-21, the City adopted new accounting guidance, GASBS No. 84, Fiduciary Activities. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Management has omitted management’s discussion and analysis that accounting principles generally accepted in the United States of America require to be presented in the basic financial statements. Such information, although not a required part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, and historical context.
Accounting principles generally accepted in the United States of America require that the required supplementary information, as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management’s responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming an opinion on the financial statements that collectively comprise the City’s basic financial statements. The schedules listed in the Supplementary Information section of the table of contents are presented for purposes of additional analysis and are not a required part of the basic financial statements.
The schedules listed in the Supplementary Information section of the table of contents are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, 2
including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the schedules listed in the Supplementary Information section of the table of contents are fairly stated in all material respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued a report dated February 4, 2022, on our consideration of the City’s internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance.
February 4, 2022
3
BASIC FINANCIAL STATEMENTS
Governmental
Activities
ASSETS
Cash and Investments 12,354,707 $
Receivables:
Accounts 560,542
Due from Other Governments 100,414
Interest Receivable 4,196
Taxes Receivable 2,359,987
Due from Successor Agency 30,973
Prepaid Costs 29,299
Restricted Cash and Investments 1,029,890
Cash and Investments with Fiscal Agent 266,074
Capital Assets, Not Depreciated 5,700,983
Capital Assets, Depreciable, Net 25,786,655
Total Assets 48,223,720
DEFERRED OUTFLOWS OF RESOURCES
Deferred Outflows Related to OPEB 1,892,316
Deferred Outflows Related to Pensions 3,840,359
Total Deferred Outflows of Resources 5,732,675
LIABILITIES
Accounts Payable and Accrued Liabilities 1,566,610
Deposits Payable 3,697
Interest Payable 60,433
Unearned Revenue 174,723
Payable to Successor Agency 2,600,000
Noncurrent Liabilities:
Due Within One Year 705,588
Due in More Than One Year 31,067,881
Total Liabilities 36,178,932
DEFERRED INFLOWS OF RESOURCES
Deferred Inflows Related to OPEB 807,245
Deferred Inflows Related to Pensions 1,105,807
Total Deferred Inflows of Resources 1,913,052
NET POSITION
Net Investment in Capital Assets 28,897,638
Restricted For:
Public Works 3,267,189
Community Development 4,171
Street Lighting 331,728
Debt Service 266,074
Unrestricted (16,902,389)
Total Net Position $ 15,864,411
City of Maywood
Statement of Net Position
June 30, 2021
The accompanying notes are an integral part of this statement. 4
Net (Expenses)
Revenues and
Changes in
Net Position
Charges Operating Capital
for Grants and Contributions Governmental
Functions/Programs Expenses Services Contributions and Grants Activities Governmental Activities:
General Government 3,041,319 $ 255,126 $ 299,811 $ - $ (2,486,382) $ Public Safety 6,334,921 471,798 156,727 - (5,706,396)
Community Development 1,867,199 - 200,560 - (1,666,639) Parks and Recreation 583,359 1,012 - - (582,347)
Public Works 4,164,147 512,016 900,473 2,041,856 (709,802) Interest and Fiscal Charges 180,979 - - - (180,979)
Total Governmental
Activities 16,171,924 $ 1,239,952 $ 1,557,571 $ 2,041,856 $ (11,332,545) General Revenues:
Taxes:
Property taxes, Levied for General Purposes 2,220,347
Transient Occupancy Taxes 77,468
Sales Taxes 7,253,909
Franchise Taxes 480,117
Utility User Taxes 1,118,937
Motor Vehicle in Lieu, Unrestricted 3,134,656
Use of Money and Property 124,305
Forgiveness of Long-term Debt 1,922,627
Other 130,794
Total General Revenues 16,463,160
Change in Net Position 5,130,615
Net Position - Beginning of Year 10,733,796
Net Position - End of Year 15,864,411 $
City of Maywood
Statement of Activities
Year Ended June 30, 2021
Program Revenues
The accompanying notes are an integral part of this statement. 5
Special Other
Revenue Nonmajor Total
General Governmental Governmental
Fund Gas Tax Funds Funds
ASSETS
Cash and Investments $ 6,474,256 $ 2,045,008 $ 3,835,443 $ 12,354,707 Restricted Cash 1,029,890 - 1,029,890 -
Cash with Fiscal Agents 266,074 - 266,074 -
Receivables:
Accounts 466,275 94,267 560,542 -
Due from Other Governments - 100,414 - 100,414
Interest 1,952 532 1,712 4,196
Taxes Receivable 2,359,987 - 2,359,987 -
Due from Other Funds 36,328 - - 36,328
Due from Successor Agency 30,973 - - 30,973
Prepaid Costs 27,799 - 1,500 29,299
Total Assets $ 10,693,534 $ 2,139,807 $ 3,939,069 $ 16,772,410
LIABILITIES
Accounts Payable $ 1,155,917 $ 210,733 $ 113,050 $ 1,479,700 Accrued Liabilities 37,746 6,300 42,864 86,910
Due to Other Funds - - 36,328 36,328
Deposits 3,697 - - 3,697
Unearned Revenue 174,723 - 174,723 -
Payable to Successor Agency 2,600,000 - 2,600,000 -
Total Liabilities 3,972,083 217,033 192,242 4,381,358
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues - Taxes 549,028 - 549,028 -
Total Deferred Inflows of Resources 549,028 - 549,028 -
FUND BALANCES
Nonspendable 27,799 - 1,500 29,299
Restricted 266,074 1,922,774 3,745,327 5,934,175
Unassigned 5,878,550 - 5,878,550 -
Total Fund Balances 6,172,423 1,922,774 3,746,827 11,842,024 Total Liabilities, Deferred Inflows of
Resources and Fund Balances $ 10,693,534 $ 2,139,807 $ 3,939,069 $ 16,772,410 City of Maywood
Balance Sheet
Governmental Funds
June 30, 2021
The accompanying notes are an integral part of this statement. 6
Fund Balances of Governmental Funds $ 11,842,024
Amounts reported for governmental activities in the Statement of Net Position are different because:
Capital assets of governmental activities are not financial resources and, therefore, are not reported in governmental funds.
Capital Assets 74,126,764
Accumulated Depreciation (42,639,126)
Revenues not received soon enough after year-end to be considered available are deferred in the funds. The availability criteria does not apply to the government-wide financial statements. 549,028
Interest expenditures are recognized when due, and therefore, interest payable is not recorded in the governmental funds. (60,433)
Amounts for deferred inflows and deferred outflows related to the City's Net Pension and OPEB Liabilities are not reported in the funds:
Deferred Outflows Related to Pensions 3,840,359
Deferred Inflows Related to Pensions (1,105,807)
Deferred Outflows Related to OPEB 1,892,316
Deferred Inflows Related to OPEB (807,245)
Long-term liabilities are not due and payable in the current period and are not reported in the funds.
2008 Refunding Bonds (2,590,000)
Compensated Absences (67,539)
Total OPEB Liability (2,802,308)
Net Pension Liability (18,863,114)
CJPIA Payable (7,450,508)
Net Position of Governmental Activities $ 15,864,411
City of Maywood
Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position
June 30, 2021
The accompanying notes are an integral part of this statement. 7
Special Other
Revenue Nonmajor Total
General Governmental Governmental
Fund Gas Tax Funds Funds
REVENUES
Taxes $ 10,310,638 $ 1,128,487 $ 1,670,237 $ 13,109,362 Licenses and Permits 507,837 - 507,837 -
Intergovernmental 3,304,467 853,148 - 4,157,615
Charges for Services 213,203 215,145 - 428,348
Use of Money and Property 107,442 3,781 13,081 124,304
Fines and Forfeitures 471,798 - 471,798 -
Miscellaneous 130,250 - 130,250 -
Total Revenues 15,045,635 1,132,268 2,751,611 18,929,514
EXPENDITURES
Current:
General Government 4,118,530 - 4,118,530 -
Public Safety 6,164,813 156,727 - 6,321,540
Community Development 1,539,078 328,121 - 1,867,199
Parks and Recreation 341,971 - 341,971 -
Public Works 1,875,937 - 659,278 2,535,215
Capital Outlay 201,470 536,088 - 737,558
Debt Service:
Principal 70,000 - - 70,000
Interest and Fiscal Charges 181,796 - 181,796 -
Total Expenditures 12,617,658 1,875,937 1,680,214 16,173,809 Excess (Deficiency) of Revenues
Over Expenditures 2,427,977 (743,669) 1,071,397 2,755,705
OTHER FINANCING SOURCES (USES)
Transfers In - - - -
Transfers Out - - - -
Total Other Financing Sources (Uses) - - - -
Change in Fund Balances 2,427,977 (743,669) 1,071,397 2,755,705 Fund Balances - Beginning of Year 3,744,446 2,666,443 2,675,430 9,086,319 Fund Balances - End of Year $ 6,172,423 $ 1,922,774 $ 3,746,827 $ 11,842,024 City of Maywood
Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds
Year Ended June 30, 2021
The accompanying notes are an integral part of this statement. 8
Net Change in Fund Balances - Total Governmental Funds $ 2,755,705 Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlay as expenditures. However, in the statement of activities, the cost of those assets is allocated over their estimated useful lives as depreciation expense or are allocated to the appropriate functional expense when the cost is below the capitalization threshold. The activity is reconciled as follows:
Cost of assets capitalized 397,125
Depreciation expense (1,603,272)
Revenues not received soon enough after year-end to be considered available are deferred in the funds. The availability criteria does not apply to the government-wide financial statements. 450,398
The issuance of long-term debt provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net position. Also, governmental funds report the effect of premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. 70,000 The amounts below included in the Statement of Activities do not provide (require) the use of current financial resources and, therefore, are not reported as revenues or expenditures in governmental funds (net change):
Net Pension Liability (739,645)
Compensated Absences (8,958)
Total OPEB Liability 78,025
CJPIA Liability (7,450,508)
Amounts for deferred inflows and deferred outflows related to the City's Net Pension and OPEB Liabilities are not reported in the funds. This is the net change in deferred inflows and outflows related to these liabilities:
Deferred Outflows Related to Pensions 429,031
Deferred Inflows Related to Pensions 226,963
Deferred Outflows Related to OPEB 1,611,058
Deferred Inflows Related to OPEB (576,942)
Accrued interest on bonds is not recorded in the governmental funds. This is the net change in accrued interest for the current period. 817 Claims payable expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. The following represents the net change: 9,490,818 Change in Net Position of Governmental Activities $ 5,130,615 City of Maywood
Reconciliation of the Statement of Revenues, Expenditures and Changes in Fund Balances of Governmental Funds to the Statement of Activities Year Ended June 30, 2021
The accompanying notes are an integral part of this statement. 9
Successor
Agency
Private-purpose Custodial
Trust Fund Funds
ASSETS
Cash and Investments - $ 109,699 $
Interest Receivable 20,892 -
Land Held for Resale 1,780,000 -
Total Assets 1,800,892 109,699
LIABILITIES
Accounts Payable - -
Accrued Liabilities 2,092 -
Due to the City of Maywood 30,973 -
Deposits Payable - -
Pass-through Payable - -
Interest Payable 227,302 -
Bonds Payable 13,833,637 -
Total Liabilities 14,094,004 -
NET POSITION
Held in Trust for Successor Agency (12,293,112) -
Held for Other Organizations - 109,699
$ 109,699 (12,293,112) $
City of Maywood
Statement of Net Position
Fiduciary Funds
June 30, 2021
The accompanying notes are an integral part of this statement. 10
Successor
Agency
Private-purpose Custodial
Trust Fund Funds
ADDITIONS
Taxes 1,238,357 $ - $
Contributions from City 67,243 -
Investment Income 1,359 5
Total Additions 1,306,959 5
DEDUCTIONS
Administrative Costs 52,896 -
Interest on Bonds 537,832 -
Total Deductions 590,728 -
Change in Net Position 716,231 5
Net Position - Beginning of Year, restated (13,009,343) 109,694 Net Position - End of Year (12,293,112) $ 109,699 $
City of Maywood
Statement of Changes in Net Position
Fiduciary Funds
Year Ended June 30, 2021
The accompanying notes are an integral part of this statement. 11
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The basic financial statements of the City of Maywood, California (City) have been prepared in conformity with Generally Accepted Accounting Principles (GAAP) as applied to government units. The GASB is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The City's more significant accounting policies are described below.
A) Reporting Entity
The City of Maywood was incorporated on September 2, 1924, under the laws of the State of California and enjoys all the rights and privileges applicable to a General Law City. It is governed by an elected fivemember board.
As required by generally accepted accounting principles, these financial statements present the City and its component units, entities for which the City is considered to be financially accountable. The City is considered to be financially accountable for an organization if the City appoints a voting majority of that organization's governing body and the organization is able to provide specific financial benefits to or impose specific financial burdens on the City. The City is also considered to be financially accountable if that organization is fiscally dependent (i.e., it is unable to adopt its budget, levy taxes, set rates or charges, or issue bonded debt without approval from the City). In certain cases, other organizations are included as component units if the nature and significance of their relationship with the City are such that their exclusion would cause the City’s financial statements to be misleading or incomplete.
All of the City’s component units are considered to be blended component units. Blended component units, although legally separate entities, are, in substance, part of the City’s operations and so data from these units are reported with the interfund data of the City. The following organizations are considered to be component units of the City:
Maywood Financing Authority
The Maywood Financing Authority ("Authority") is a joint exercise of powers authority organized and existing under and by virtue of the Joint Exercise of Powers Act. The City and the Commission formed the Authority by the execution of a joint exercise of powers agreement dated as of October 25, 1988. Pursuant to the Joint Exercise of Powers Act, the Authority is authorized to issue revenue bonds to provide funds to make loans to public entities; such revenue bonds are to be repaid from the repayments of such loans. The Authority is governed by a five-member Board which consists of all members of the City Council. The Mayor of the City is the Chairperson of the Authority. The City's Chief Administrative Officer (CAO) acts as the Executive Director, the City Clerk acts as the Secretary and the Finance Director of the City acts as the Treasurer of the Authority. Separate financial statements of the Authority are not prepared.
B) Measurement Focus and Basis of Accounting
The financial statements of the City are composed of the following:
Government-wide financial statements
Fund financial statements
Notes to financial statements
12
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Government-wide Financial Statements: The government-wide financial statements display information about the reporting government as a whole, except for its fiduciary activities. These statements include the governmental activities of the primary government (including its blended component units). For the most part, the effect of interfund activity has been removed from these statements.
Government-wide financial statements are presented using the economic resources measurement focus and accrual basis of accounting. Under the economic resources measurement focus, all (both current and long-term) economic resources and obligations of the reporting government are reported in the governmentwide financial statements. The basis of accounting refers to when revenues and expenses are recognized in the accounts and reported in the financial statements. Under the accrual basis of accounting, revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange-like transactions are recognized when the exchange takes place. Revenues, expenses, gains, losses, assets, and liabilities resulting from nonexchange transactions are recognized in accordance with the requirements of GASB Statement No. 33.
Program revenues include charges for services and payments made by parties outside the reporting government's citizenry if that money is restricted to a particular program. Program revenues are netted with program expenses in the statement of activities to present the net cost of each program.
Amounts paid to acquire capital assets are capitalized as assets in the government-wide financial statements, rather than reported as an expenditure. Proceeds of long-term debt are recorded as a liability in the government-wide financial statements, rather than as another financing source. Amounts paid to reduce long-term indebtedness of the reporting government are reported as a reduction of the related liability, rather than as an expenditure.
Fund Financial Statements: The underlying accounting system of the City is organized and operated on the basis of separate funds, each of which is considered to be a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund equity, revenues and expenditures or expenses, as appropriate. Governmental resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled.
Fund financial statements for the primary government's governmental and fiduciary funds are presented after the government-wide financial statements. These statements display information about major funds individually and nonmajor funds in the aggregate for governmental funds. Fiduciary statements include financial information for fiduciary funds and similar component units. Fiduciary funds of the City primarily represent assets held by the City in a custodial capacity for other individuals or organizations.
Governmental Funds: Governmental funds are presented using the modified-accrual basis of accounting in the fund financial statements. Revenues are recognized when they become measurable and available as net current assets. Measurable means that the amounts can be estimated, or otherwise determined.
Available means that the amounts were collected during the reporting period or soon enough thereafter to be available to finance the expenditures accrued for the reporting period. The City uses an availability period of 60 days.
13
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Sales taxes, property taxes, franchise taxes, gas taxes, motor vehicle in lieu, transient occupancy taxes, grants and interest associated with the current fiscal period are all considered to be susceptible to accrual and have been recognized as revenues of the current fiscal period to the extent normally collected within the availability period. Other revenue items are considered to be measurable and available when cash is received by the government.
Revenue recognition is subject to the measurable and available criteria for the governmental funds in the fund financial statements. Exchange transactions are recognized as revenues in the period in which they are earned (i.e., the related goods or services are provided). Locally imposed derived tax revenues (special assessments) are recognized as revenues in the period in which the underlying exchange transaction upon which they are based takes place. Imposed nonexchange (special fees) transactions are recognized as revenues in the period for which they were imposed. If the period of use is not specified, they are recognized as revenues when an enforceable legal claim to the revenues arises or when they are received, whichever occurs first. Government-mandated and voluntary nonexchange transactions are recognized as revenues when all applicable eligibility requirements have been met.
Governmental funds are presented using the current financial resources measurement focus in the fund financial statements. This means that only current assets and current liabilities are generally included on their balance sheets. The reported fund balance (net current assets) is considered to be a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets.
Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period.
Non-current portions of long-term receivables due to governmental funds are reported on their balance sheets in spite of their spending measurement focus. Special reporting treatments are used to indicate, however, that they should not be considered "available spendable resources," since they do not represent net current assets.
Due to the nature of their spending measurement focus, expenditure recognition for governmental fund types excludes amounts represented by noncurrent liabilities. Since they do not affect current assets, such long-term amounts are not recognized as governmental fund type expenditures or fund liabilities.
Amounts expended to acquire capital assets are recorded as expenditures in the year that resources were expended, rather than as fund assets. The proceeds of long-term debt are recorded as other financing sources rather than as a fund liability. Amounts paid to reduce long-term indebtedness are reported as fund expenditures.
When both restricted and unrestricted resources are combined in a fund, expenses are considered to be paid first from restricted resources, and then from unrestricted resources.
C) Fund Classifications
The funds designated as major funds are determined by a mathematical calculation consistent with GASB
34. The City reports the following major governmental funds:
14
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued General Fund
This fund is used to account for resources traditionally associated with governments, which are not legally required, or by sound financial management, to be accounted for in another fund.
Gas Tax Special Revenue Fund
This fund is used to account for the revenues and expenditures of the City’s proportionate share of gas tax monies collected by the State of California which are used for street construction and maintenance.
Additionally, the City reports the following fund types:
Fiduciary Fund Financial Statements
Fiduciary Fund Financial Statements include a Statement of Net Position and Statement of Changes in Fiduciary Net Position. The fiduciary fund is used to report assets held in a trustee or agency capacity for others and therefore are not available to support City programs. Since these assets are being held for the benefit of a third party, these funds are not incorporated into the government-wide statements.
The City’s fiduciary funds include a custodial fund and private-purpose trust fund. The custodial fund uses the accrual basis of accounting to account for developer deposits. The private-purpose trust fund accounts for the wind-down activities of the Maywood Community Development Commission.
D) Investments
Investments are reported in the accompanying balance sheet at fair value, except for nonparticipating certificates of deposit and investment contracts that would be reported at cost because they are not transferable and they have terms that are not affected by changes in market interest rates.
Changes in fair value that occur during a fiscal year are recognized as investment income reported for that fiscal year. Investment income includes interest earnings, changes in fair value, and any gains or losses realized upon the liquidation, maturity, or sale of investments.
The City pools cash and investments of all funds, except for assets held by fiscal agents. Each fund’s share in this pool is displayed in the accompanying financial statements as cash and investments. Investment income earned by the pooled investments is allocated to the various funds based on each fund’s average cash and investment balance.
E) Interfund Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end of the fiscal year are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans), or "advances to/from funds" (i.e., the non-current portion of interfund loans). All other outstanding balances between funds are reported as “"due to/from other funds." F) Prepaid Costs
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. Nonspendable fund balances are reported in the governmental funds for amounts equal to the prepaid items since these amounts are not available for appropriation.
15
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued G) Capital Assets
Capital assets are recorded at cost where historical records are available and at an estimated historical cost where no historical records exist. Donated capital assets received prior to the implementation of GASB Statement No. 72 were recorded at fair value on the date of donation. Donated capital assets received subsequent to the implementation of GASB 72 are recorded at acquisition value as of the date received.
Capital assets, other than infrastructure assets, in excess of $5,000 are capitalized if they have an expected useful life of one year or more. Infrastructure assets have a capitalization threshold of $100,000.
The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend assets' lives are not capitalized. Major capital outlays for capital assets and improvements are capitalized as projects are constructed.
The following schedule summarizes the useful lives of capital assets:
Buildings 50 years
Land Improvements 50 years
Machinery and Equipment 5-15 years
Vehicles 8-15 years
Infrastructure
Sewer, Curbs and Sidewalks 50 years
Roadways 35 years
Traffic Lights 25 years
Depreciation is calculated using the straight-line method over the estimated useful life of the asset in the government-wide financial statements.
H) Long-Term Obligations
Long-term debt and other long-term obligations are reported as liabilities in the governmental activities column of the statement of net position in the government-wide financial statements. Bond premiums and discounts are deferred and amortized over the life of the bonds using the effective interest method. Bonds payable are reported net of applicable bond premium or discount.
Governmental funds recognize bond premiums and discounts during the current period in the fund financial statements. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts on debt issuances are reported as other financing uses.
I) Classification of Net Position and Fund Balance
1) Net Position
In the Government-wide financial statements, net position is classified in the following categories:
16
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Net Investment in Capital Assets
This category groups all capital assets, including infrastructure, into one component of net position which is represented by the current net book value, less the outstanding balance of any debt issued to finance these assets.
Restricted Net Position
This category presents external restrictions imposed by creditors, grantors, contributors, or laws and regulations of other governments and restrictions imposed by law through constitutional provisions or enabling legislation.
Unrestricted Net Position
This category represents the net position of the City that is not externally restricted for any project or other purpose.
2) Fund Balance
Fund balances in governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the City is bound to honor constraints on the specific purposes for which amounts in those funds can be spent. Sometimes the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements a flow assumption must be made about the order in which the resources are considered to be applied. It is the government’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance.
Unassigned fund balance is applied last.
The following classifications describe the relative strength of the spending constraints placed on the purposes for which resources can be used:
Nonspendable Fund Balance - Amounts that cannot be spent either because they are in nonspendable form or are required to be maintained intact.
Restricted Fund Balance - Amounts that are constrained to specific purposes by state or federal laws, or externally imposed conditions by grantors or creditors.
Committed Fund Balance - Amounts that may be specified by the City Council by ordinance or resolution to formally commit part of the City’s fund balances or future revenues for a specific purpose(s) or program. To change or repeal any such commitment will require an additional formal City Council’s action utilizing the same type of action that was originally used.
17
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued Assigned Fund Balance - Amounts that are constrained by the Council's intent to use specified financial resources for specific purposes, but are neither restricted nor committed.
Unassigned Fund Balance - These are either residual positive net resources of fund balance in excess of what can properly be classified in one of the other four categories, or negative balances.
The City’s governmental fund balances at June 30, 2021, are presented below:
J) Property Taxes
Under California law, property taxes are assessed and collected by the counties up to 1% of assessed value, plus other increases approved by the voters. The property tax calendar is as follows:
Lien Date January 1st
Levy Date July 1st
Due Date First Installment – November 1st Second Installment – March 1st Delinquent Date First Installment – December 11th Second Installment – April 11th Taxes are collected by Los Angeles County and are remitted to the City periodically. Dates and percentages are as follows:
December 10th 30% Advance May 15th Collection No. 2
January 16th Collection No. 1 July 31st Collection No. 3 April 10th 10% Advance
Nonmajor Total
General Gas Tax Governmental Governmental
Fund Fund Funds Funds
Nonspendable:
Prepaid Items 27,799 $ - $ 1,500 $ 29,299 $
Restricted:
Community Development - - 4,171 4,171
Debt Service 266,074 - - 266,074
Street Lighting - - 331,273 331,273
Public Works - 1, 3, 922,774 5, 409,883 332,657
Committed: - - - -
Assigned: - - - -
Unassigned 6,053,273 - - 6, 053,273
Total Fund Balance 6,347,146 $ 1,922,774 $ 3,746,827 $ 12,016,747 $ 18
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued K) Use of Estimates
The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures.
Accordingly, actual results could differ from those estimates.
L) Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position and balance sheet for the governmental funds will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents consumption of net position that applies to future period(s) and so will not be recognized as an outflow of resources (expense) until then. The City currently reports deferred outflows as a result of the City’s implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions. See Notes 8 and 9 for more information.
In addition to liabilities, the statement of financial position and balance sheet for the governmental funds will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City currently reports deferred inflows as a result of the City’s implementation of GASB Statement No. 68, Accounting and Financial Reporting for Pensions, and GASB Statement No. 75, Accounting and Financial Reporting for Postemployment Benefits Other Than Pensions.
M) Net Position Flow Assumption
Sometimes the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the statement of net position, a flow assumption must be made about the order in which the resources are considered to be applied.
It is the City’s policy to consider restricted – net position to have been depleted before unrestricted – net position.
N) Implementation of Governmental Accounting Standards Board (GASB) Pronouncements The Governmental Accounting Standards Board has issued the following Statements, which may affect the City’s financial reporting requirements in the future:
GASB 87 – Leases: This Statement requires recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021.
19
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
1) SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – Continued GASB 91 – Conduit Debt Obligations: The primary objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers and eliminate diversity in practice. The requirements of this Statement are effective for reporting periods beginning after December 15, 2021.
O) Pensions
For purposes of measuring the net pension liability and deferred outflows/inflows of resources related to pensions, and pension expense, information about the fiduciary net position of the City of Maywood’s California Public Employees’ Retirement System (CalPERS) plans (Plans) and additions to/deductions from the Plans’ fiduciary net position have been determined on the same basis as they are reported by CalPERS.
For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.
P) Other Postemployment Benefits (OPEB)
For purposes of measuring the net OPEB liability, deferred outflows of resources and deferred inflows of resources related to OPEB, and OPEB expense, information about the fiduciary net position of the City’s plan (OPEB Plan) and additions to/deductions from the OPEB Plan’s fiduciary net position have been determined on the same basis. For this purpose, benefit payments are recognized when currently due and payable in accordance with the benefit terms. Investments are reported at fair value. Generally accepted accounting principles require that the reported results must pertain to liability and asset information within certain defined timeframes. For this report, the following timeframes are used:
Valuation Date June 30, 2020
Measurement Date June 30, 2020
Measurement Period July 1, 2019 to June 30, 2020
2) CASH AND INVESTMENTS
Cash and investments as of June 30, 2021 are classified in the accompanying financial statements as follows:
Cash and Investments consist of the following:
Statement of Net Position:
Cash and Investments 12,354,707 $
Restricted Cash 1,029,890
Cash and Investments Held by Bond Trustee 266,074
Statement of Fiduciary Net Position:
Cash and Investments 109,699
Total Cash and Investments 13,760,370 $
Petty Cash $ 500
Deposits with Financial Institutions 7,090,389
Investments 6,669,481
Total Cash and Investments $ 13,760,370
20
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
2) CASH AND INVESTMENTS – Continued
Investments Authorized by the California Government Code and the City’s Investment Policy The table below identifies the investment types that are authorized for the City by the California Government Code and the City's investment policy. The table also identifies certain provisions of the California Government Code (or the City's investment policy, if more restrictive) that address interest rate risk, credit risk, and concentration of credit risk.
Authorized by Maximum Maximum
Authorized Investment Maximum Percentage Investment
Investment Type Policy Maturity* of Portfolio* In One Issuer* Local Agency Bonds No 5 years None None
U.S. Treasury Obligations Yes 2 years None None
U.S. Agency Securities Yes 5 years None None
Banker’s Acceptances Yes 180 days 40% 30%
Commercial Paper Yes 270 days 15% 10%
Certificates of Deposit Yes 2 years 30% None
Repurchase Agreements Yes 1 year None None
Reverse Repurchase Agreements No 92 days 20% of base value None Medium-Term Notes No 5 years 30% None
Mutual Funds No N/A 20% 10%
Money Market Mutual Funds Yes N/A 20% 10%
Mortgage Pass-Through Securities No 5 years 20% None
County Pooled Investment Funds No N/A None None
Local Agency Investment Fund (LAIF) Yes N/A None None
JPA Pools (other investment pools) No N/A None None
*Based on state law requirements or investment policy requirements, whichever is more restrictive.
Investments Authorized by Debt Agreements
Investment of debt proceeds held by bond trustee are governed by provisions of the debt agreements, rather than the general provisions of the California Government Code or the City’s investment policy. The table below identifies the investment types that are authorized for investments held by bond trustee. The table also identifies certain provisions of these debt agreements that address interest rate risk, credit risk, and concentration of credit risk.
Maximum Maximum
Authorized Maximum Percentage Investment
Investment Type Maturity Allowed In One Issuer
U.S. Treasury Obligations None None None
U.S. Agency Securities None None None
Banker’s Acceptances 180 days None None
Commercial Paper 270 days None None
Money Market Mutual Funds N/A None None
Repurchase Agreements 270 days None None
Investment Contracts 30 years None None
Municipal Obligations None None None
21
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
2) CASH AND INVESTMENTS – Continued
Disclosures Relating to Interest Rate Risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. One of the ways that the City manages its exposure to interest rate risk is by purchasing a combination of shorter term and longer-term investments and by timing cash flows from maturities so that a portion of the portfolio is maturing or coming close to maturity evenly over time as necessary to provide the cash flow and liquidity needed for operations.
Information about the sensitivity of the fair values of the City’s investments (including investments held by bond trustees) to market interest rate fluctuations is provided by the following table that shows the distribution of the City’s investments by maturity:
Disclosures Relating to Credit Risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical rating organization. Presented below is the minimum rating required by (where applicable) the California Government Code or the City’s investment policy, or debt agreements, and the actual rating as of year-end for each investment type.
Carrying 12 Months 13 to 36 36 to 60 More than
Investment Type Amount or Less Months Months 60 Months
LAIF 5,373,528 $ 5,373,528 $ - $ - $ - $
CEPPT 1,029,879 1,029,879 - - -
Held by Fiscal Agent:
Money Market Funds 266,074 266,074 - - -
Total 6,669,481 $ 6,669,481 $ - $ - $ - $
Remaining Maturity (in Months)
Rating as of Year End
Minimum
Total Legal Not
Investment Type Investment Rating AAA/AA Aa Rated
LAIF 5,373,528 $ N/A - $ - $ 5, $ 373,528
CEPPT 1,029,879 1, - 029,879 -
Held by Fiscal Agent:
Money Market Funds 266,074 N/A - 266,074 -
Total 6,669,481 $ 1,295,953 $ - $ 5, $ 373,528
22
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
2) CASH AND INVESTMENTS – Continued
Custodial Credit Risk
Custodial credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a government will not be able to recover its deposits or will not be able to recover collateral securities that are in the possession of an outside party. The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g. broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The California Government Code and the City’s investment policy do not contain legal or policy requirements that would limit the exposure to custodial credit risk for deposits or investments, other than the following provision for deposits:
The California Government Code requires that a financial institution secure deposits made by state or local government units by pledging securities in an undivided collateral pool held by a depository regulated under state law (unless so waived by the governmental unit). The market value of the pledged securities in the collateral pool must equal at least 110% of the total amount deposited by the public agencies. California law also allows financial institutions to secure City deposits by pledging first trust deed mortgage notes having a value of 150% of the secured public deposits. As of June 30, 2019, no deposits with financial institutions in excess of federal depository insurance limits were held in uncollateralized accounts.
For investments identified herein as held by bond trustee, the bond trustee selects the investment under the terms of the applicable trust agreement, acquires the investment, and holds the investment on behalf of the reporting government.
Investment in State Investment Pool
The City is a voluntary participant in the Local Agency Investment Fund (LAIF) that is regulated by the California Government Code under the oversight of the Treasurer of the State of California. The fair value of the City’s investment in this pool is reported in the accompanying financial statements at amounts based on the City’s pro-rata share of the fair value provided by LAIF for the entire LAIF portfolio (in relation to the amortized cost of that portfolio). The balance available for withdrawal is based on the accounting records maintained by LAIF, which are recorded on an amortized cost basis.
Fair Value
The City categorizes its fair value measurements within the fair value hierarchy established by generally accepted accounting principles. The hierarchy is based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets; Level 2 inputs are significant other observable inputs; Level 3 inputs are significant unobservable inputs. LAIF, CEPPT and money market funds are not subject to the fair value hierarchy and therefore, the City has no investments that are subject to the recurring fair value measurements.
23
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
3) INTERFUND RECEIVABLES, PAYABLES AND TRANSFERS
Current interfund receivables and payables as of June 30, 2021 are as follows:
The purpose of these short-term interfund borrowings was to cover cash deficits at June 30, 2021.
Payable to Successor Agency
The payable to the Successor Agency of $2,600,000 in the General Fund and the Statement of Net Position is a result of repayments made by the Successor Agency to the City of Maywood. The California State Controller’s Office reviewed asset transfers by the former Community Development Commission and Successor Agency and determined these repayments were not eligible under state law and are subject to repayment by the City to the Successor Agency. Therefore, a liability has been recorded in the General Fund and Statement of Net Position. Given the City’s current financial condition, the City does not have the ability to repay the Successor Agency at this time. As a result, the receivable in the Successor Agency Private-purpose Trust Fund of $2,600,000 is offset with an allowance for doubtful accounts of $2,600,000.
Payable to the City of Maywood
The payable to the City of Maywood of $30,973 reported in the Successor Agency is related to short-term borrowing to cover the cash deficit in the Successor Agency.
DUE
FROM
Non-major
Governmental
Funds Total
DUE TO General Fund 36,928 $ 36,928$
Total $ 36,928 36,928$
24
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
4) CAPITAL ASSETS
Capital assets activity for the year ended June 30, 2021 is as follows:
Depreciation expense was charged in the following functions in the Statement of Activities:
5) LONG-TERM LIABILITIES
Changes in long-term liabilities for the year ended June 30, 2021 were as follows:
Beginning Ending
Governmental Activities: Balance Increases Decreases Balance Capital Assets, Not Being Depreciated:
Land $ 5,247,570 $ - $ 5, - $ 247,570
Construction in Progress 56,288 397,125 - 453,413
Total Capital Assets, Not Depreciated: 5,303,858 397,125 5, - 700,983 Capital Assets Being Depreciated:
Buildings 13,035,914 - 13, - 035,914
Land Improvements 617,026 - - 617,026
Machinery and Equipment 735,574 - - 735,574
Vehicles 206,686 - - 206,686
Infrastructure 53,830,581 - 53, - 830,581
Total Capital Assets, Depreciated: 68,425,781 - 68, - 425,781 Less Accumulated Depreciation:
Buildings (4,317,728) (257,868) (4, - 575,596)
Land Improvements (90,077) (29,366) ( - 119,443)
Machinery and Equipment (710,869) (10,465) ( - 721,334) Vehicles (100,716) (20,172) ( - 120,888)
Infrastructure (35,816,464) (1,285,401) (37, - 101,865) Total Accumulated Depreciation (41,035,854) (1,603,272) (42, - 639,126) Net Capital Assets, Depreciated 27,389,927 (1,603,272) 25, - 786,655 Total Capital Assets, Net $ 32,693,785 $ (1,206,147) $ 31, - $ 487,638 General Government $ 60,004
Public Works 1,288,499
Public Safety 13,381
Parks and Recreation 241,388
Total $ 1,603,272
Beginning Ending Due Within
Governmental Activities Balance Additions Deletions Balance One Year 2008 Refunding Bonds 2,660,000 $ $ 70,000 - $ $ 2,590,000 $ 75,000 Net Pension Liability 18,123,469 739,645 18, - 863,114 - Total OPEB Liability 2,880,333 89,000 167,025 2,802,308 - Compensated Absences 58,581 32,195 23,237 67,539 31,000 CJPIA Liability 7,450,508 - 7, - 450,508 599,588
Claims Liability 9,490,818 26,317 9,517,135 - -
Total $ 33,213,201 $ 8,337,665 $ 9,777,397 $ 31,773,469 $ 705,588 25
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
5) LONG-TERM LIABILITIES - Continued
2008 Lease Revenue Refunding Bonds, Series A
On November 18, 2008, the Maywood Public Financing Authority of the City of Maywood issued $3,185,000 in Lease Revenue Refunding Bonds, Series A. The 2008 series was used to advance refund the Authority's 1999 Certificates of Participation of $2,540,000. The 2008 Lease Revenue Refunding Bonds, Series A will mature September 1, 2038. Interest on the 2008 Lease Revenue Refunding Bonds is payable on March 1 and September 1 of each year. The bonds accrue interest at rates that range from 6.50% to 7.00% annually. Future principal and interest payments on the 2008 Refunding Bonds are as follows:
CJPIA Liability
In November 2021, the City settled the former claims liability with the California Joint Powers Insurance Authority (CJPIA) and entered into an agreement to repay the liability over a 30-year period. In accordance with the terms of the agreement, the City paid $500,000 in January 2022, subsequent to the end of the fiscal year and began making monthly principal and interest payments of $22,356 per month. The monthly payments will continue through December 1, 2051. The future payments on the liability are as follows:
Fiscal Year Ending
June 30, Principal Interest Total
2022 75,000 $ 178,675 $ $ 253,675
2023 80,000 173,250 253,250
2024 85,000 167,475 252,475
2025 90,000 161,350 251,350
2026 100,000 154,700 254,700
2027 - 2031 610,000 655,200 1, 265,200
2032 - 2036 865,000 399,875 1, 264,875
2037 - 2039 685,000 74,375 759,375
Totals 2,590,000 $ 1,964,900 $ 4,554,900 $
Fiscal Year Ending
June 30, Principal Interest Total
2022 599,588 $ 34,545 $ $ 634,133
2023 200,676 67,591 268,267
2024 202,692 65,575 268,267
2025 204,728 63,539 268,267
2026 206,785 61,482 268,267
2027 - 2031 1,065,505 1, 275,830 341,335
2032 - 2036 1,120,111 1, 221,224 341,335
2037 - 2041 1,177,516 1, 163,819 341,335
2042 - 2046 1,237,862 1, 103,472 341,334
2047 - 2051 1,301,302 40,033 1, 341,335
2052 133,743 390 134,133
Totals 7,450,508 $ 1,097,500 $ 8,548,008 $
26
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
6) FIDUCIARY FUND LONG-TERM DEBT
2017A-1, 2017A-2, and 2017B Tax Allocation Refunding Bonds In October 2017, the Successor Agency issued the 2017A-1, 2017A-2, and 2017B Tax Allocation Refunding Bonds in the amounts of $13,698,439, $174,073 and $1,528,071, respectively, totaling $15,400,583. The purpose of the bonds was to advance refund the 2007 Tax Allocation Bonds. The 2007 Tax Allocation Bonds were used to refund the former Community Development Commission’s Variable Rate Demand Tax Allocation Bonds that were issued to fund certain redevelopment projects within the project area including property acquisitions, sewer improvements, street improvements, and recreational improvements. The 2017 bonds mature on August 1, 2037. Interest on the bonds is payable semi-annually on February 1 and August 1 of each year. The long-term debt is reported in the Successor Agency Private-purpose Trust Fund in the Statement of Fiduciary Net Position.
7) RISK MANAGEMENT
The City is exposed to various risks of loss related to torts: theft of, damage to, and destruction of assets; errors and omissions; and natural disasters. The City uses the General Fund to account for and finance the related risks.
As of June 30, 2010, the City of Maywood was a member of the California Joint Powers Insurance Agency (Authority). The Authority is composed of various California Public Entities and is organized under a joint powers agreement pursuant to California Government Code 6500 et seq.
The purpose of the Authority is to arrange and administer programs for the pooling of self-insured losses, to purchase excess insurance or reinsurance, and to arrange for group purchased insurance for property and other lines of coverage. The California JPIA began covering claims of its members in 1978. Each member government has an elected official as its representative on the Board of Directors. The Board operates through a nine-member Executive Committee. A significant portion of the claims liability listed below is a result of the City's previous participation in the Authority's programs.
Fiscal Year Ending
June 30, Principal Interest Total
2022 586,333 $ 533,734 $ 1, $ 120,067
2023 609,914 509,928 1, 119,842
2024 633,944 485,424 1, 119,368
2025 658,922 459,955 1, 118,877
2026 684,883 433,482 1, 118,365
2027 - 2031 3,851,083 1,732,337 5, 583,420
2032 - 2036 4,671,931 895,318 5, 567,249
2037 - 2038 2,136,627 84,996 2, 221,623
Totals 13,833,637 $ 5,135,174 $ 18,968,811 $
27
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
7) RISK MANAGEMENT - Continued
Subsequent to June 30, 2010, for workers' compensation the City has purchased coverage through the State Compensation Insurance Fund. In addition, the City has purchased insurance policies for the following exposures with the deductible or the amount of risk retention indicated in parenthesis: public employee dishonesty, etc. ($25,000 deductible); general liability insurance policy (City retains risks up to $500,000); property loss or damage ($10,000 deductible/$25,000 deductible for flood).
Liabilities are reported in the Statement of Net position when it is probable that a loss has occurred and the amount of the loss can be reasonably estimated. Liabilities include an amount for claims that have been incurred but not reported (IBNRs). The result of the process to estimate the claims liability is not an exact amount as it depends on many complex factors, such as, inflation, changes in legal doctrines, and damage awards.
Accordingly, claims are reevaluated periodically to consider the effects of inflation, recent claim settlement trends, and other economic and social factors.
During the past three fiscal (claims) years, none of the above programs of protection have had settlements or judgments that exceeded pooled or insured coverage. There have been no significant reductions in pooled or insured liability coverage from coverage in the prior year. Changes in the balance of claims liabilities during the past two years are as follows:
Fiscal Claims Payable Claims Payable
Year Beginning of Year Additions Deletions End of Year
6/30/20 $ 9,893,757 $ - $ (402,939) $ 9,490,818
6/30/21 9,490,818 26,317 (144,000) 9,373,135
8) CITY EMPLOYEE RETIREMENT PLAN
General Information about the Defined Benefit Pension Plan Plan Descriptions – All qualified permanent and probationary employees are eligible to participate in the Public Agency Cost-Sharing Multiple-Employer Defined Benefit Pension Plan (Plan) administered by the California Public Employees’ Retirement System (CalPERS.) The Plan consists of individual rate plans (benefit tiers) within a safety risk pool (police) and a miscellaneous risk pool. Plan assets may be used to pay benefits for any employer rate plan of the safety and miscellaneous pools. Accordingly, rate plans within the safety or miscellaneous pools are not separate plans under GASB Statement No. 68. Individual employers may sponsor more than one rate plan in the miscellaneous or safety risk pools.
The City sponsors three rate plans (two miscellaneous and one safety-inactive). Benefit provisions under the Plan are established by State statute and City resolution. CalPERS issues publicly available reports that include a full description of the pension plan regarding benefit provisions, assumptions and membership information that can be found on the CalPERS website.
28
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
8) CITY EMPLOYEE RETIREMENT PLAN – Continued
Benefits Provided – The Plan is a cost-sharing multiple-employer defined benefit pension plan administered by the California Public Employees’ Retirement System (CalPERS). A full description of the pension plan benefit provisions, assumptions for funding purposes but not accounting purposes, and membership information is listed in the June 30, 2019 Annual Actuarial Valuation Report. Details of the benefits provided can be obtained in Appendix B of the June 30, 2019 actuarial valuation report. This report is a publicly available valuation report that can be obtained at CalPERS’ website under Forms and Publications.
The Plan’s provisions and benefits in effect at June 30, 2021, are summarized as follows:
Contributions – Section 20814(c) of the California Public Employees’ Retirement Law requires that the employer contribution rates for all public employers be determined on an annual basis by the actuary and shall be effective on the July 1 following notice of a change in the rate. Funding contributions for the Plan are determined annually on an actuarial basis as of June 30 by CalPERS. The actuarially determined rate is the estimated amount necessary to finance the costs of benefits earned by employees during the year, with an additional amount to finance any unfunded accrued liability. The City is required to contribute the difference between the actuarially determined rate and the contribution rate of employees.
Beginning in fiscal year 2016, CalPERS collects employer contributions for the Plan as a percentage of payroll for the normal cost portion as noted in the rates above and as a dollar amount for contributions toward the unfunded liability. The dollar amounts are billed on a monthly basis. The City’s required contribution for the unfunded liability was $1,416,130 in fiscal year 2021. The City’s contributions to the Plan for the year ended June 30, 2021 were $1,531,749.
Pension Liabilities, Pension Expenses and Deferred Outflows/Inflows of Resources Related to Pensions As of June 30, 2021, the City reported a liability of $18,863,114 for its proportionate share of the net pension liability. The City’s net pension liability for the Plan is measured as of June 30, 2020, and the total pension liability for the Plan used to calculate the net pension liability was determined by an actuarial valuation as of June 30, 2019 rolled forward to June 30, 2020 using standard update procedures. The City’s proportion of the net pension liability was based on a projection of the City’s long-term share of contributions to the pension plans relative to the projected contributions of all participating employers, actuarially determined.
Miscellaneous
Miscellaneous PEPRA Safety
Prior to On or after Prior to
Hire date January 1, 2013 January 1, 2013 June 1, 2007
Benefit formula 2% @ 55 2% @ 62 3% @ 50
Benefit vesting schedule 5 years service 5 years service 5 years service Benefit payments monthly for life monthly for life monthly for life Retirement age 55 62 50
Monthly benefits, as a % of eligible compensation 2% 2% 3% Required employee contribution rates 7% 6.75% n/a
Required employer contribution rates 11.031% + $237,434 7.732% + $809 n/a + $1,177,887 29
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
8) CITY EMPLOYEE RETIREMENT PLAN – Continued
The City’s proportionate share of the net pension liability as of June 30, 2019 and 2020 was as follows:
For the year ended June 30, 2021, the City recognized pension expense of $1,615,401. At June 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
The $1,531,749 reported as deferred outflows of resources related to contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ended June 30, 2022.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as pension expense as follows:
Actuarial Assumptions – The total pension liabilities in the June 30, 2019 actuarial valuations were determined using the following actuarial assumptions:
Proportion - June 30, 2019 0.17687%
Proportion - June 30, 2020 0.17337%
Change - Increase (Decrease) -0.00350%
Deferred Outflows Deferred Inflows
of Resources of Resources
Pension contributions subsequent to measurement date 1,531,749 $ - $ Differences between actual and expected experience 1,354,999 - Changes in assumptions - 78,579
Change in employer's proportion and differences 149,928 740,795 Differences between the employer's contributions and
the employer's proportionate share of contributions 360,687 286,433 Net differences between projected and actual
earnings on plan investments 442,996 -
Total $ 3,840,359 $ 1,105,807
Year Ending
June 30,
2022 28,129 $
2023 540,630
2024 414,715
2025 219,329
2026 -
Thereafter -
30
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
8) CITY EMPLOYEE RETIREMENT PLAN – Continued
The mortality table used was developed based on CalPERS-specific data. The table includes 15 years of mortality improvements using Society of Actuaries Scale 90% of scale MP 2016. For more details on this table, please refer to the December 2017 experience study report (based on CalPERS demographic data from 1997 to 2015) that can be found on the CalPERS website.
Long-term Expected Rate of Return - The long-term expected rate of return on pension plan investments was determined using a building-block method in which best-estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. In determining the long-term expected rate of return, CalPERS took into account both short-term and long-term market return expectations as well as the expected pension fund cash flows. Using historical returns of all the funds’ asset classes, expected compound returns were calculated over the short-term (first 10 years) and the long-term (11-60 years) using a building-block approach. Using the expected nominal returns for both short-term and long-term, the present value of benefits was calculated for each fund.
The expected rate of return was set by calculating the rounded single equivalent expected return that arrived at the same present value of benefits for cash flows as the one calculated using both short-term and long-term returns. The expected rate of return was then set equal to the single equivalent rate calculated above and adjusted to account for assumed administrative expenses. The expected real rates of return by asset class are as follows:
Valuation date June 30, 2019
Measurement date June 30, 2020
Actuarial cost method entry-age normal
Actuarial assumptions:
Discount rate 7.15%
Inflation 2.50%
Payroll growth 3.00%
Projected salary increase (1)
Investment rate of return 7.15%
Mortality (2)
(1) Depends on entry age, service and type of employment (2) Derived using CalPERS’ Membership Data for all Funds. 31
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
8) CITY EMPLOYEE RETIREMENT PLAN – Continued
Discount Rate – The discount rate used to measure the total pension liability for PERF C was 7.15%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current member contribution rates and that contributions from employers will be made at statutorily required rates, actuarially determined. Based on those assumptions, the Plan’s fiduciary net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on plan investments was applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of the Proportionate Share of the Net Pension Liability to Changes in the Discount Rate – The following presents the City’s proportionate share of the net pension liability for the Plan, calculated using the discount rate for the Plan, as well as what the City’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage point lower or 1-percentage point higher than the current rate:
Pension Plan Fiduciary Net Position – Detailed information about each pension plan’s fiduciary net position is available in the separately issued CalPERS financial reports. 9) OTHER POST EMPLOYMENT BENEFITS
Plan Description – The City provides the same medical plans to retirees and surviving spouses as to its active employees, with the exception that once a retiree becomes eligible for Medicare, he or she must join a Medicare HMO or a Medicare Supplement plan, with Medicare becoming the primary payer. The plan is an agent multiple-employer defined benefit post-employment healthcare benefits plan.
New Strategic Real Return Real Return
Asset Class Allocation Years 1 - 10 (1) Years 11+ (2)
Global Equity 50% 4.80% 5.98%
Fixed Income 28% 1.00% 2.62%
Inflation Assets - 0.77% 1.81%
Private Equity 8% 6.30% 7.23%
Real Assets 13% 3.75% 4.93%
Liquidity 1% - -0.92%
(1) An expected inflation of 2.0% used for this period. (2) An expected inflation of 2.92% used for this period. 1% Decrease 6.15%
Net Pension Liability 25,127,997 $
Current Discount Rate 7.15%
Net Pension Liability 18,863,114 $
1% Increase 8.15%
Net Pension Liability 13,710,929 $
32
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
9) OTHER POST EMPLOYMENT BENEFITS – Continued
Benefits Provided - Employees are eligible for retiree health benefits if they retire from the City on or after age 50 and 5 years of service (age 52 for Miscellaneous PEPRA employees), and continue health insurance through a City-sponsored health insurance plan, the City will contribute the minimum monthly amount (as required by CalPERS) of the health insurance premium ($136 for both calendar years 2019 and 2020). In addition, there are currently 19 retirees receiving OPEB, benefits end at the age of 65 for 5 of them and 4 of them are receiving lifetime benefits. The City’s health plan does not issue a publicly available financial report.
Employees Covered by Benefit Terms – As of the June 30, 2020 actuarial valuation, the following current and former employees were covered by the benefit terms under the Plan:
Contributions – The Plan and its contribution requirements are established by Memoranda of Understanding with the applicable employees and may be amended by agreements between the City and the bargaining units.
The annual contributions to the Plan are based on the costs to provide the benefits as described above on a pay as you go basis. For the fiscal year ended June 30, 2021, the City’s pay-as-you-go costs were $186,146.
In addition, the City contributed $1,000,000 to a trust account established with the California Public Employers’ Retiree Benefit Trust (CERBT). The CERBT issues a publicly available report that can be found on the CalPERS website.
Total OPEB Liability - The City’s total OPEB liability was measured as of June 30, 2020 and the total OPEB liability used to calculate the OPEB liability was determined by an actuarial valuation dated June 30, 2020, based on the following actuarial methods and assumptions:
Valuation Date June 30, 2020
Actuarial Cost Method Entry Age Actuarial Cost
Mortality CalPERS 1997-2015 Experience Study; Scale MP-2020 for postretirement mortality Health Care Trend Rate Non-Medicare 7.0% initial, 4.0% ultimate, Medicare 6.1% initial, 4.0% ultimate
Inflation Rate 2.75%
Participation at Retirement 50% of eligible actives will elect coverage at retirement Salary Changes 3.00%
Discount Rate 6.25% at June 30, 2020
3.50% at June 30, 2019
Medical CPI 4.25% - used to project PERS statutory minimum benefit The long-term expected rate of return on OPEB plan investments was determined using a building-block method in which expected future real rates of return (expected returns, net of OPEB plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. The target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table:
Retirees or spouses of retirees currently receiving benefits 19 Active employees 23
42 33
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
9) OTHER POST EMPLOYMENT BENEFITS – Continued
Discount Rate – The discount rate used to measure the total OPEB liability was 6.25% and is based on the expected long-term rate of return of the CERBT- Strategy 2.
Changes in the Total OPEB Liability
Sensitivity of the Total OPEB Liability to changes in the Discount Rate - The following presents the total OPEB liability of the City if it were calculated using a discount rate that is 1-percentage-point lower or 1- percentage-point higher than the current discount rate:
Sensitivity of the Total OPEB Liability to changes in the Healthcare Cost Trend Rates - The following presents the Total OPEB liability of the City, as well as what the City’s Total OPEB Liability would be if it were calculated using a healthcare cost trend rate that is 1-percentage-point lower or 1-percentage-point higher than the current healthcare cost trend rate:
Target Long-Term
Asset Class Allocation Rate of Return
All Equities 40% 4.820%
All Fixed Income 43% 1.470%
Real Estate Invesment Trusts 8% 3.760%
All Commodities 4% 0.840%
Treasury Inflation Protected Securities (TIPS) 5% 1.290% Total 100.00%
Total OPEB Plan Fiduciary Net OPEB
Liability (TOL) Net Position Liability/(Asset)
Balance at June 30, 2019 $ 2,880,333 $ - $ 2,880,333
Changes in the year:
Service cost 28,221 - 28,221
Interest on the total OPEB liability 98,877 - 98,877
Changes of benefit terms - - -
Employer Contributions - 167,556 (167,556)
Employee Contributions - - -
Actual vs. Expected Experience 721,279 - 721,279
Assumption Changes (759,372) - (759,372)
Administrative Expense - (526) 526
Benefit payments, including refunds (167,030) (167,030) - Experience (Gains)/Losses - - -
Net changes (78,025) - (78,025)
Balance at June 30, 2020 $ 2,802,308 $ - $ 2,802,308
Increase (Decrease)
1% Decrease Discount Rate 1% Increase
(5.25%) (6.25%) (7.25%)
Net OPEB liability (asset) 3,173,885 $ 2, $ 2, 802,308 $ 500,439 34
City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
9) OTHER POST EMPLOYMENT BENEFITS – Continued
OPEB Plan Fiduciary Net Position
CERBT issues a publicly available financial report that may be obtained from the California Public Employers’ Retirement System (CalPERS) website.
OPEB Expense and Deferred Outflows/Inflows of Resources Related to OPEB Gains and losses related to changes in total OPEB liability and fiduciary net position are recognized in OPEB expense systematically over time. Amounts are first recognized in OPEB expense for the year the gain or loss occurs. The remaining amounts are categorized as deferred outflows and deferred inflows of resources related to OPEB and are to be recognized in future OPEB expense.
The recognition period differs depending on the source of the gain or loss:
Net difference between projected and actual
earnings on OPEB plan investments: 5 years
All other amounts: Expected average remaining service lifetime (EARSL) (6.8 years at June 30, 2020)
For the year ended June 30, 2021, the City recognized OPEB expense of $74,005. The City reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources:
The $1,186,146 reported as deferred outflows of resources related to contributions subsequent to the June 30, 2020 measurement date will be recognized as a reduction of the total OPEB liability during the fiscal year ended June 30, 2022. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized as OPEB expense as follows:
Current
Healthcare
1% Decrease Trend 1% Increase
Net OPEB liability (asset) $ 2,501,942 $ 2,802,308 $ 3,167,059 Deferred Outflows Deferred Inflows
of Resources of Resources
OPEB Contributions Subsequent to the Measurement Date $ 1,186,146 $ - Differences between actual and expected experience 615,209 - Changes in assumptions 90,961 807,245
Net differences between projected and actual
earnings on plan investments - -
Total $ 1,892,316 $ 807,245
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City of Maywood
Notes to Financial Statements
Year Ended June 30, 2021
9) OTHER POST EMPLOYMENT BENEFITS – Continued
10) CJPIA LIABILITY
The City of Maywood has a liability for claims due to the California Joint Powers Insurance Authority (CJPIA) of approximately $9.4 million (see Note 7 Risk Management). The liability is the result of significant claims against the Maywood Police Department, which was disbanded in June 2010. The City is actively working with CJPIA to develop a repayment plan. The City currently makes payments totaling $144,000 each year to the CJPIA to pay down this liability.
11) SUBSEQUENT EVENTS
In December 2021, subsequent to the end of the fiscal year, the City issued $18,550,000 in taxable Pension Obligation Bonds. The bonds were issued for the purpose providing funding to payoff the City’s unfunded liability with CalPERS.
Beginning in July 1, 2021, the City is now insured under the Municipal Insurance Cooperative.
In November 2021, the City entered into an agreement with the California Joint Powers Insurance Authority (CJPIA) to payoff the remaining liability in equal annual installments of $268,267, which includes principal and interest. See Note 5 for more information.
12) RESTATEMENT OF FIDUCIARY NET POSITION
The City implemented Governmental Accounting Standards Board (GASB) Statement No. 84, Fiduciary Activities. As a result, a restatement to reflect net position was made in the Custodial Funds of $109,694 fiscal year ended June 30, 2021
Year Ending
June 30,
2022 (53,619) $
2023 (53,617)
2024 (892)
2025 17,136
2026 (5,602)
Thereafter (4,481)
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REQUIRED SUPPLEMENTARY INFORMATION
City of Maywood
Required Supplementary Information
Year Ended June 30, 2021
Schedule of Changes in Net OPEB Liability
And Related Ratios – Last Ten Fiscal Years*
*Fiscal year 2018 was the first year of implementation; therefore, 10 years of information are not yet available.
Notes to Schedule:
No assets are accumulated in a trust that meets the criteria in GASBS No. 75, paragraph 4, to pay related benefits.
Benefit Changes: None
Changes in Assumptions: Discount rate was updated based on municipal bond rate as of the measurement date.
Subsequent Events: The City began prefunding the OPEB liability in trust on September 18, 2020. This will reduce the net OPEB liability reported in future years.
2020 2019 2018 2017
Total OPEB Liability
Service cost $ 28,221 $ 25,273 $ 26,137 $ 29,886
Interest on total OPEB liability 98,877 105,057 101,554 90,247 Changes in Assumptions (759,372) 136,443 (108,191) (316,354) Actual v. Expected Experience 721,279 - - -
Benefit payments, including refunds (167,030) (151,602) (129,748) (130,038) Net change in total OPEB liability (78,025) 115,171 (110,248) (326,259) Total OPEB liability - beginning 2,880,333 2,765,162 2,875,410 3,201,669 Total OPEB liability - ending (a) $ 2,802,308 $ 2,880,333 $ 2,765,162 $ 2,875,410 Plan Fiduciary Net Position
Contributions - employer $ 167,030 $ 151,602 $ 129,748 $ 130,038 Expected Investment Income Investment Income - - - -
Invesment Gains/Losses - - - -
Benefit payments (167,030) (151,602) (129,748) (130,038) Administrative Expense - - - -
Other - - - -
Net change in plan fiduciary net position - - - -
Plan fiduciary net position - beginning - - - -
Plan fiduciary net position - ending (b) $ - $ - $ - $ - Net OPEB liability - ending (a) - (b) $ 2,802,308 $ 2,880,333 $ 2,765,162 $ 2,875,410 Plan fiduciary net position as a percentage
of the total OPEB liability 0.00% 0.00% 0.00% 0.00%
Covered-employee payroll $ 1,106,050 $ 1,109,167 $ 928,283 $ 799,045 Net OPEB liability as a percentage of
covered-employee payroll 253.36% 259.68% 297.88% 359.86% Measurement Period
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City of Maywood
Required Supplementary Information
Year Ended June 30, 2021
Notes to the Schedule of the City’s Proportionate Share of the Net Pension Liability Benefit Changes: The figures above do not include any liability impact that may have resulted from plan changes which occurred after the June 30, 2015 valuation date. This applies for voluntary benefit changes as well as any offers of Two Years Additional Service Credit (a.k.a. Golden Handshakes).
Changes in Assumptions: The discount rate for the 6/30/14 Valuation was changed from 7.5 percent (net of administrative expense) to 7.65 percent to correct for an adjustment to exclude administrative expense. None for 6/30/15 Valuation. In 2017, the accounting discount rate changed from 7.65% to 7.15%. *Fiscal year 2015 was the first year of implementation, therefore, 10 years of information are not yet available.
Proportionate Plan Fiduciary
Proportion of Proportionate Share of the Net Net Position as the Net Pension Share of Net Covered Pension Liability a % of the Total Measurement Date Liability Pension Liability Payroll as a % of Payroll Pension Liability 2020 0.17337% 18,863,114 $ $ 1,106,050 1705.45% 59.37%
2019 0.17687% 18,123,469 997,883 1816.19% 60.30%
2018 0.18044% 17,387,200 924,757 1880.19% 61.28%
2017 0.17579% 17,433,755 799,045 2181.82% 59.04%
2016 0.18271% 15,810,172 475,533 3324.73% 62.63%
2015 0.20124% 13,812,475 472,905 2920.77% 78.40%
2014 0.20141% 12,702,310 531,386 2390.41% 79.82%
Schedule of the City's Proportionate Share of the Net Pension Liability Last 10 Years*
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