Montebello City Council
October 12, 2022

CITY OF MONTEBELLO

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY

JOINT REGULAR MEETING

WEDNESDAY, OCTOBER 12, 2022 AT 5:00 PM

CITY HALL COUNCIL CHAMBERS
1600 WEST BEVERLY BOULEVARD

MONTEBELLO, CALIFORNIA

CITY COUNCIL/PUBLIC FINANCING AUTHORITY
Kimberly A. Cobos-Cawthorne, Mayor/Chairperson
Angie M. Jimenez, Mayor Pro Tem/Vice Chairperson
Scarlet Peralta, Councilmember/Member
Salvador Melendez, Councilmember/Member
David N. Torres, Councilmember/Member

CITY MANAGER/EXECUTIVE

DIRECTOR
René Bobadilla, City Manager

CITY TREASURER
Rafael Gutierrez

CITY ATTORNEY/AUTHORITY

COUNSEL
Arnold M. Alvarez-Glasman

CITY CLERK/SECRETARY OF AUTHORITY
Christopher Jimenez

DEPARTMENT HEADS
Assistant City Manager
Fire Chief
Police Chief
Director of Finance
Director of Human Resources
Director of Planning/Community Development
Director of Public Works
Director of Recreation and Community Services
Director of Transportation
Director of Public Affairs and Technology
Arlene Salazar
Fernando Pelaez
Paul Espinosa
Michael Solorza
Nicholas Razo
Joseph Palombi
James Enriquez
David Sosnowski
Adrianna Kendricks
Michael Chee

October 12, 2022: City Council and Public Financing Authority Meeting

NOTICES
COVID-19 NOTICE: The City Council rescinded the Declaration of the Local Emergency and the continuation of teleconferencing open meetings pursuant to AB 361 by adopting Resolution No. 22-21 on Wednesday, April 13, 2022. This City Council/Public Financing Authority Joint Regular Meeting ("Council"/"PFA") will be held in person and will meet at City Hall – City Council Chambers, 1600 West Beverly Boulevard, Montebello, California. The meeting will be live streamed and can be watched on the City’s website and YouTube Channel via the following link:
https://www.cityofmontebelloca.gov, and may also be viewed on Spectrum Public Access Channel 3 for all Spectrum cable subscribers, and Youtube.

AMERICANS WITH DISABILITIES ACT: In compliance with the Americans with Disabilities Act (ADA) any person with a disability who requires special accommodations in order to participate in a meeting should contact the Administration Office at (323) 887-1437 Monday-Thursday from 7:30 a.m.-5:30 p.m. Please call 48 hours prior to the meeting to ensure that reasonable arrangements can be made to provide accessibility to this meeting (28 CFR 35.102-

35.104 ADA Title II 1203). If you require translation services, please contact the City Clerk’s office 72 hours before this meeting. Si necesita servicios de traducción, comuníquese con la Oficina del Secretario Municipal 72 horas antes de esta reunión. 如果您需要翻译服务，请在会议前 72 小时联系市书记员办公室

RULES OF DECORUM:

As Established by Ordinance 2443, adopted on October 27, 2021: Signs, placards, banners, horns, noise-making devices, or other similar items shall not be permitted in the audience during a Public Meeting if the presence of such item disturbs, disrupts or otherwise impedes the orderly conduct of the meeting. All persons attending a public meeting shall remain seated in the seats provided, unless addressing the body at the podium or entering or leaving the meeting.

No member of the audience shall willfully interrupt the orderly conduct at the meeting, this includes clapping or otherwise speaking from their seats. The presiding officer shall direct the removal of any individual whose willful interruption renders infeasible the orderly conduct of the meeting. In the event the removal of the individual or individuals willfully interrupting the meeting does not restore order, the presiding officer may order the meeting room cleared and continue in session. Speakers shall not engage in willful conduct which interrupts the meeting or interferes with the orderly conduct of the meeting. Any person who becomes boisterous while addressing the Council/PFA or who otherwise disrupts the orderly conduct of the Council/PFA’s business shall be subject to removal from the Chambers after being admonished by the presiding officer.

PUBLIC COMMENTS:

In-Person: For those interested in participating during the Public Comment period(s) or public testimony period for Public Hearings of the City Council/PFA meetings, you may address the City Council/PFA in person the day of the meeting. Speakers will be required to fill out a speaker card provided at the door and turn it into the Deputy City Clerk prior to each Public Comment announcement period. Staff will number and call each speaker card in the order received. Closed Session begins at 5:00 p.m. and Regular Session begins no later than 6:00 p.m.

Via Email: The public may also submit emailed comments via the City’s email address:
[email protected], up until the day of the meeting, Wednesday, October 12, 2022 by 3:00 p.m. These comments will be submitted to all members of the City Council/PFA and may not be read aloud but will be entered into the record of the proceedings to the extent they relate to matters listed on the posted agenda or otherwise address matters/issues within the subject matter jurisdiction of the City Council/PFA. Any requests to provide public comment which is submitted after the deadlines indicated above will not be submitted to the City Council/PFA, with the exception of non-agenda written item comments which will be held over for the next regularly scheduled meeting.

AGENDA MATERIALS: The agenda and/or agenda packet are available for public inspection at City’s website at: https://www.montebelloca.gov/cms/One.aspx?portalId=58756&pageId=77219.

October 12, 2022: City Council and Public Financing Authority Meeting

IN CONSIDERATION OF OTHERS, PLEASE TURN OFF, OR MUTE, ALL CELL PHONES AND PAGERS

THANK YOU FOR YOUR COOPERATION

OPENING CEREMONIES

CALL TO ORDER

ROLL CALL

PUBLIC COMMENTS FOR CLOSED SESSION ITEMS
At this time, the general public may address the City Council/PFA on Closed Session Items. Please be aware that the maximum time allotted for members of the public to speak on Closed Session Items shall not exceed three (3) minutes per person. State Law prohibits the City Council/PFA from taking action or entertaining extended discussion on a topic not listed on the agenda. Please show courtesy to others and direct all of your comments to the Mayor.

CLOSED SESSION 5:00 P.M.

The City Attorney shall provide a briefing on the item listed for Closed Session as follows:

1. THREAT TO PUBLIC SERVICES OR FACILITIES
Government Code Section 54957
Consultation with City Manager, Police Chief, City Attorney and other related City officials.

2. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Government Code Section 54956.8
Property: 112-132 S. 6th Street
Agency’s Negotiator: René Bobadilla, City Manager
Negotiating Party: Cesar Chavez Foundation
Under Negotiation: Price and Terms

3. CONFERENCE WITH REAL PROPERTY NEGOTIATORS
Government Code Section 54956.8
Property: 901 Via San Clemente
Agency’s Negotiator: René Bobadilla, City Manager
Negotiating Party: Quiet Cannon Management & Trend Sports II Under Negotiation: Price and Terms

4. CONFERENCE WITH LEGAL COUNSEL – ANTICIPATED LITIGATION Government Code Section 54956.9(d)(2): Three Matters
One matter related to Brown Act claim
One matter related to ACLU letter
One matter related to Infrastructure Engineers
REGULAR SESSION NO LATER THAN 6:00 P.M.

CLOSED SESSION REPORT

INVOCATION

PLEDGE OF ALLEGIANCE

CORRECTIONS TO THE AGENDA CITY MANAGER

October 12, 2022: City Council and Public Financing Authority Meeting

CEREMONIAL/PRESENTATIONS

5. BREAST CANCER AWARENESS MONTH

6. BULLYING PREVENTION MONTH

7. DOMESTIC VIOLENCE AWARENESS MONTH

8. DOWN SYNDROME AWARENESS MONTH

9. CITIZEN OF THE MONTH - GARY MENDIBLES
PUBLIC COMMENTS ON NON-AGENDA AND AGENDA ITEMS (30 MINUTES) At this time, the general public may address the City Council/PFA on both non-agenda and agenda items. Please be aware that the maximum time allotted for members of the public to speak shall not exceed three (3) minutes per speaker.

State Law prohibits the City Council/PFA from taking action or entertaining extended discussion on a topic not listed on the agenda. Please show courtesy to others and direct all of your comments to the Mayor.

STAFF COMMUNICATIONS ON ITEMS OF COMMUNITY INTEREST

PUBLIC HEARING

OLD BUSINESS

REGULAR BUSINESS

10. REVIEW THE PROPOSED CITY'S PERMANENT LOCAL HOUSING ALLOCATION PROGRAM FORMULA

FUNDING PLAN

It is recommended that the City Council:

1) Review and provide input on the Proposed City's Permanent Local Housing Allocation Program Formula Funding Plan to collect the City’s $1,900,548 five-year allocation; and

2) The Public Hearing for the consideration of approval of the City's Permanent Local Housing Allocation Program Funding Plan and Resolution will be heard at the City's Council Meeting on October 26, 2022; and

3) Take such additional, related, action that may be desirable.

CONSENT CALENDAR
All matters listed under the Consent Calendar are considered to be routine. Any items a Councilmember wishes to discuss should be designated at this time. All other items may be approved in a single motion. Such approval will also waive the reading of any ordinance.

11. AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS (RFP NO. 23-3) FOR EMPLOYEE BENEFITS

INSURANCE BROKER SERVICES

It is recommended that the City Council:

1) Approve issuing an Employee Benefits Insurance Broker Services Request for Proposal, No. 23- 3 (RFP No. 23-3); and

2) Take such additional, related, action that may be desirable.

12. APPROVAL OF A SOLE-SOURCE, PROFESSIONAL SERVICES AGREEMENT NO. 4031, WITH GOVERNMENTJOBS, INC., DBA NEOGOV, FOR ADD-ON PERFORM SOFTWARE SUBSCRIPTION AND

SETUP SERVICES

October 12, 2022: City Council and Public Financing Authority Meeting

It is recommended that the City Council:

1) Approve a Sole-Source, Professional Services Agreement, No. 4031, with Governmentjobs, Inc., dba NEOGOV (NEOGOV), for add-on Perform software subscription and setup services; and

2) Authorize the City Manager and/or his designee to execute an agreement on behalf of the City of Montebello (City); and

3) Amend the Fiscal Year 2022-23 budget by increasing appropriations by $16,083 in Account No. 100-25-250- 6040.95 (General Fund, Human Resources, Contract Services – Professional Services); and

4) Take such additional, related, action that may be desirable.

13. AWARD OF CONSTRUCTION CONTRACT - MONTEBELLO MUNICIPAL GOLF COURSE RENOVATION PROJECT, PHASE 1 (CP NO. 894-1)

It is recommended that the City Council:

1) Award a construction contract for the Montebello Municipal Golf Course Renovation Project Phase 1 (CP No. 894-1) in the amount of $5,094,000 to Los Angeles Engineering, Inc.; and

2) Authorize the Director of Public Works to review and approve change orders within a 10% contingency of the contract amount; and

3) Authorize the City Manager to execute the Contract Agreement, on behalf of the City; and

4) Award Task Order No. 4 via an Engagement Letter under Master Retainer Agreement No. 3919 with AIM Consulting Services for Construction Management and Inspection Services for the project for a not-to-exceed- fee of $1,283,543; and

5) Approve a reimbursement payment to Trend Sports, LLC in the amount of $494,705 for conceptual pre-design project development costs; and

6) Approve the Total Project Budget (Attachment A); and

7) Approve the Notice of Exemption (Attachment D) for the subject project and authorize the City Clerk to file the Notice of Exemption with Los Angeles Registrar-Recorder; and

8) Take such additional, related, action that may be desirable.

14. APPROVAL OF CHANGE ORDER NO. 1 TO THE CONSTRUCTION CONTRACT WITH DOUG MARTIN CONTRACTING COMPANY, INC. - ANNUAL SLURRY SEAL PROJECT FISCAL YEAR 2022-23 (C.P.

NO. 892)

It is recommended that the City Council:

1) Find that the requested “Changes in Work” for the project (Attachment A) have no significant effect on the environment and approve Change Order No. 1 in the aggregate amount of $300,000, increasing the total contract amount with Doug Martin Contracting Company, Inc. to $699,920; and

2) Take such additional, related, action that may be desirable.

15. AMEND THE FISCAL YEAR 2022-23 CAPITAL IMPROVEMENT PROGRAM BUDGET BY INCREASING

APPROPRIATIONS IN VARIOUS ACCOUNTS

It is recommended that the City Council:

1) Amend the adopted Fiscal Year 2022-23 Capital Improvement Program (CIP) budget by increasing appropriations in the various accounts as detailed in Attachment A; and

October 12, 2022: City Council and Public Financing Authority Meeting

2) Take such additional, related, action that may be desirable.

16. ADOPT RESOLUTION NO. 22-84 APPROVING PLANS AND SPECIFICATIONS FOR THE MONTEBELLO DRIVING RANGE PROJECT – TOPGOLF MONTEBELLO; APPROVING A CONTRACT WITH MCCARTHY

BUILDING COMPANIES FOR CONSTRUCTION AND CONSTRUCTION MANAGEMENT SERVICES FOR THE MONTEBELLO DRIVING RANGE PROJECT – TOPGOLF MONTEBELLO, AND MAKING CERTAIN

FINDINGS IN CONNECTION THEREWITH

It is recommended that the City Council:

1) Approve final plans and specifications for the Montebello Driving Range Project – Topgolf Montebello (“Project”) prepared by Aria Group Architects, Inc.; and

2) Approve the waiver of competitive bidding and find that McCarthy Building Companies is the only available and qualified contractor to provide the professional and construction services required to develop the Project; and

3) Approve and award a Guaranteed Maximum Price (GMP) Construction Contract to McCarthy Building Companies for construction and construction management services for the Project; and

4) Approve a Notice of Exemption for the subject project and authorize the City Clerk to file the Notice of Exemption with Los Angeles Registrar-Recorder, and

5) Authorize the City Manager to make necessary non-monetary changes to the Construction Contract within the Guaranteed Maximum Price (not-to-exceed the net proceeds of the bonds) before execution; and

6) Authorize the City Manager to execute the Construction Contract in a form approved by the City Attorney;

7) Take any other additional actions necessary.

17. AUTHORIZE DISPOSITION OF SURPLUS GOLF CARTS AND EQUIPMENT

It is recommended that the City Council:

1) Authorize Recreation and Community Services Department staff to sell, auction, donate, dispose of, or transfer golf carts and equipment per the established Capital Asset Policy, No. VI-C-3; and

2) Take such additional, related, action that may be desirable.

18. APPROVAL OF CALIFORNIA OFFICE OF TRAFFIC SAFETY (OTS), SELECTIVE TRAFFIC ENFORCEMENT

PROGRAM (STEP) GRANT FUNDS

It is recommended that the City Council:

1) Approve the use of grant funding awarded to the Montebello Police Department by the California Office of Traffic and Safety (OTS) through the Selective Traffic Enforcement Program (STEP), Grant number PT23048, in the amount of $122,000; and

2) Amend the Fiscal Year 2022-23 budget and increase expense appropriations by $122,000 in grant Account No. 265-8013-800-5010.10, 6010.40 and 6020, Grants, OTS-STEP Grant, (Overtime, Machinery ad Equipment and Travel and Meetings); and by $122,000 in revenue Account No. 265-99-4198.97 (Grants, Miscellaneous Grants – OTS Grants); and

3) Take such additional, related, action that may be desirable.

19. APPROVAL TO SUBMIT GRANT APPLICATION TO THE SAN GABRIEL VALLEY COUNCIL OF

GOVERNMENTS HOUSING LINKAGE WORKING GROUP

It is recommended that the City Council:

October 12, 2022: City Council and Public Financing Authority Meeting

1) Approve submission of the grant application to the San Gabriel Valley Council of Governments Housing Linkage Working Group; and

2) Take such additional, related, action that may be desirable.

20. APPROVE MEMORANDUM OF AGREEMENT NO. 22-23 BETWEEN THE CITY OF MONTEBELLO AND LOS

ANGELES COUNTY TO FUND OPERATION STAY SAFE WITH THE CITIES AND COUNCILS OF GOVERNMENTS INTERIM HOUSING SERVICES FUND AND AMEND THE FISCAL YEAR 22-23 BUDGET

TO APPROPRIATE FUNDS

It is recommended that the City Council:

1) Authorize the City Manager to execute a Memorandum of Agreement between the City of Montebello and Los Angeles County to receive $876,000 in funding from the Cities and Councils of Governments Interim Housing Services (“CCOGIHS”) Fund for the operation of Operation Stay Safe interim housing project; and,

2) Amend the Fiscal Year 2022-23 budget by increasing appropriations by $876,000 in expenditure Account No. 266-85-858-6040.10 (Interim Housing Services, Fire, Interim Housing Services , Other Contract Services) and $876,000 in revenue Account No. 266-99-4198.30 (Interim Housing Services, Misellaneous Grants - Interim Housing Services ); and

3) Take such additional, related, action that may be desirable.

21. AMEND THE TRANSPORTATION DEPARTMENT CAPITAL IMPROVEMENT PROGRAM BUDGET FOR FISCAL YEAR 2022-23

It is recommended that the City Council:

1) Adopt the Transportation Department Capital Improvement Program (CIP) budget for Fiscal Year 2022-23, for a total amount of $10,550,644; and

2) Authorize Staff to amend the adopted FY 2022-23 budget to include appropriations in the various accounts as detailed in Attachment “A”, “Transportation Capital Improvement Program;” and

3) Take such additional, related, action that may be desirable.

22. APPROVE PURCHASE AND/OR LEASE OF FLEET VEHICLES FOR POLICE, FIRE, PUBLIC WORKS,

PARKS AND RECREATION AND TRANSIT DEPARTMENTS

It is recommended that the City Council:

1) Approve the lease/purchase of twenty-one (21) vehicles and necessary equipment and installation services in the amount of $1,438,092; and

2) Authorize the City Manager to approve up to an additional ten (10) percent of the estimated total purchase price ($143,809), if needed, to account for uncertain market factors affecting the final price; and

3) Take any additional actions necessary to effectuate the procurement of the vehicles.

23. PAYMENT OF BILLS: ADOPT RESOLUTION NO. 22-83 APPROVING THE CITY WARRANT REGISTER OF DEMANDS DATED OCTOBER 12, 2022

It is recommended that the City Council:

1) Adopt Resolution No. 22-83 approving the Warrant Register dated OCTOBER 12, 2022.

24. APPROVAL OF MINUTES – JUNE 15, 2022 CITY COUNCIL SPECIAL MEETING; JUNE 22, 2022 CITY COUNCIL MEETING; AUGUST 1, 2022 CITY COUNCIL SPECIAL MEETING; AND AUGUST 10, 2022 CITY

COUNCIL AND PUBLIC FINANCING AUTHORITY JOINT MEETING

October 12, 2022: City Council and Public Financing Authority Meeting

It is recommended that the City Council:

1) Approve said minutes as written.

AB 1234 TRAVEL REPORTS
Members of the City Council will provide a brief report on meetings attended at the expense of the local agency as required by Government Code Section 53232.3(d).

COUNCIL ORALS
Council member announcements; requests for future agenda items; conference/meetings reports.

• Kimberly A. Cobos-Cawthorne, Mayor

• Angie M. Jimenez, Mayor Pro Tem

• David N. Torres, Councilmember

• Scarlet Peralta, Councilmember

• Salvador Melendez, Councilmember

ADJOURNMENT
The City of Montebello will adjourn to the next Regular Meeting on October 26, 2022 at 5:00 p.m. which can be live streamed at www.cityofmontebello.com (Click on Live Stream).

I, Alicia Fernandez, Senior Deputy City Clerk for the City of Montebello hereby certify that a copy of this agenda has been posted on or before Sunday, October 9, 2022 5:00 p.m.

Alicia Fernandez, Senior Deputy City Clerk

ITEM # 10

CITY OF MONTEBELLO

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA STAFF REPORT

TO:

Honorable Mayor and City Council Members
FROM:

René Bobadilla, P.E., City Manager
BY:

Fernando Pelaez, Fire Chief
SUBJECT: REVIEW THE PROPOSED CITY'S PERMANENT LOCAL HOUSING

ALLOCATION PROGRAM FORMULA FUNDING PLAN

DATE: October 12, 2022

RECOMMENDATION(S):

It is recommended that the City Council:

1) Review and provide input on the Proposed City's Permanent Local Housing Allocation Program Formula Funding Plan to collect the City’s $1,900,548 five-year allocation; and

2) The Public Hearing for the consideration of approval of the City's Permanent Local Housing Allocation Program Funding Plan and Resolution will be heard at the City's Council Meeting on October 26, 2022; and

3) Take such additional, related, action that may be desirable.

FISCAL IMPACT:

The City of Montebello is eligible to receive an allocation of an estimated $1,900,548 in formula (i.e., non-competitive) grant funding from the Permanent Local Housing Allocation (PLHA) program formula component. This amount represents the first five years of funding available for this program. This formula funding will be a on-going funding stream if the City continues to meet the eligibility. The funding opportunity is available to local governments for eligible housing and homelessness activities.

Jurisdictions must submit a grant application and plan and meet eligibility requirements to access PLHA formula funds. Once the grant application is approved by the State, Staff

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF OCTOBER 12, 2022

will return at a future City Council meeting with an action to appropriate the funding in Fiscal Year 2022-23.

BACKGROUND:

In 2017, Governor Jerry Brown signed a 15-bill housing package aimed at addressing the State’s housing shortage and high housing costs. The Building Homes and Jobs Act (SB 2, 2017), established a $75 recording fee on real estate documents to increase the supply of affordable homes. Seventy percent (70%) of the fees collected go towards funding the PLHA Program, which is administered by the California Department of Housing and Community Development (HCD).

PLHA’s formula component provides non-competitive funding to entitlement and non- entitlement cities. The current PLHA Notice of Funding Availability was released on August 17, 2022, and grant applications are due October 31, 2022. Staff received City Council approval at the August 1, 2022 City Council meeting to submit an application for the PLHA. Staff were aware that a NOFA would be released as HCD had communicated in advance that the City was now eligible.

The amount of PLHA funds allocated to each jurisdiction is directly proportionate to each jurisdiction’s share of the total 2017 CDBG allocation in California. The State estimates the City will receive approximately $1,900,548 over the program’s first five years. Of this amount, the City is eligible to receive an allocation of $316,758 from the 2019 allocation, $492,340 from the 2020 allocation, and $541,805 from the 2021 allocation. The remaining $549,645 from the 2022 and 2023 allocations will be disbursed in 2023 and 2024. Future allocations may fluctuate from year to year depending on recording fees from the number of real estate transactions. Jurisdictions must submit a grant application and meet eligibility requirements to access PLHA formula funds.

In order to be eligible to apply for this formula funding, local jurisdictions must have:

1. A state certified and compliant Housing Element. On June 22, 2022 the City Council adopted Resolution No. 22-52 approving the Housing Element Update for the 2021-2029 Planning Period (6th Cycle Regional Housing Needs Allocation); and

2. Annual Progress Reports (APR) submitted to HCD for Years 2019, 2020, and 2021. These reports have been submitted to HCD. APRs for 2022 and 2023 will need to be submitted to HCD to be eligible to collect future allocations.

The program guidelines require that the grant application include an adopted City Council resolution authorizing: 1) the request for allocation funding, 2) the proposed PLHA plan (i.e., how the City intends to spend its PLHA allocations), and 3) receipt of grant funds for the five-year period.

PLHA Eligible Activities

There are ten eligible activities under the PLHA grant:

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF OCTOBER 12, 2022

1. The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, or rental housing that is affordable for extremely low-, very low-, low-, or Moderate-income households (up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High-cost areas). Predevelopment and/or acquisition must result in the development, rehabilitation, or preservation of housing, as otherwise there is no actual housing outcome of the predevelopment or acquisition assistance.

2. The predevelopment, development, acquisition, rehabilitation, and preservation of affordable rental and ownership housing, including Accessory Dwelling Units (ADUs) that meet the needs of a growing workforce earning up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in high-cost areas.

Predevelopment and/or acquisition must result in the development, rehabilitation, or preservation of affordable rental and ownership housing, as otherwise there is no actual housing outcome of the predevelopment or acquisition assistance.

3. Matching portions of funds placed into local or Regional Housing Trust Funds.

Matching funds must be utilized as required by PLHA guidelines Section 301(a).

4. Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. Matching funds must be utilized as required by PLHA guidelines Section 301(a).

5. Capitalized Reserves for Services connected to the preservation and creation of new Permanent Supportive Housing (up to 30 percent of AMI).

6. Assisting persons who are experiencing or at risk of homelessness in conformance with 24 Code of Federal Regulations (CFR Section 578.3), (up to 30 percent of AMI), including:
o Rapid rehousing in conformance with federal rules contained in 24 CFR Section 576.104, except for legal services;
o Rental assistance with a term of at least six (6) months (rental arrears is not eligible);
o Street outreach, and other supportive/case management services in conformance with federal rules contained in 24 CFR Section 576.101 that allow people to obtain and retain housing;
o Operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.

This Activity may include subawards to administrative entities as defined in HSC Section 50490(a) (1-3) that were awarded California Emergency Solutions and Housing (CESH) Program or Homeless Emergency Aid Program (HEAP) funds for rental assistance to continue assistance to these households.

Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with Welfare Institutions Code (WIC) Section 8255(b)(8). An Applicant allocated funds for the new construction, rehabilitation,

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF OCTOBER 12, 2022

and preservation of permanent supportive housing shall incorporate the core components of Housing First, as provided in WIC Section 8255(b).

7. Accessibility modifications in lower-income owner-occupied housing (up to 80 percent of AMI).

8. Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments (up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High- cost areas).

9. Homeownership opportunities, including, but not limited to, down payment assistance to those earning up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in high-cost areas.

10. Fiscal incentives made by a county to a city within the county to incentivize approval of one or more affordable housing projects, or matching funds invested by a county in an affordable housing development project in a city within the county, provided that the city has made an equal or greater investment in the project.

ENVIRONMENTAL IMPACT:

There is no environmental impact.

ANALYSIS:

N/A

DISCUSSION:

The City outlined homeless prevention goals and objectives in the City’s Homelessness Plan, adopted in 2018, and the recently adopted Housing Element. The Homeless Prevention Program develops strategic preventative measures to support and engage higher risk members of the community from entering homelessness or connecting them with resources to exit homeless quickly by either retaining their housing or using other housing strategies to ensure people move into permanent and stable accommodations that are affordable, safe, and appropriate with the support they need to thrive. Without a dedicated funding source to provide housing for the City’s homeless households, the remaining goals and objectives of the strategy will be difficult to implement.

Assisting persons who are at risk of homelessness is an eligible activity under PLHA (see Item 6 in the list of eligible PLHA activities, above). To support and address homeless prevention, staff recommends that the City use its PLHA allocation on three eligible activities (Items 5 and 6):

1. Rental assistance for homeless persons and low-income older adults in Montebello (Item 6a); and

2. Operating Support for the Montebello Community Assistance Program (MCAP).

MCAP provides street outreach and supportive case management services (Item 6b); and

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF OCTOBER 12, 2022

3. Capitalized Reserves for Services connected to the preservation and creation of new Permanent Supportive Housing (up to 30 percent of AMI).

These activities are eligible under PLHA and are recommended in the newly adopted Housing Element. The City’s grant application must include a high-level five-year plan outlining how it will use the total of $1,900,548 over the five-year period. Attached are a narrative description of these proposed expenditures and a budget illustrating the expenditures over the five-year period.

PLHA funding is time-sensitive, applications for the formula allocation must be submitted within 48-months of the budget appropriation. If a local government does not submit a complete application within that time frame, the allocation will revert to the Housing Rehabilitation Loan Fund for the Multifamily Housing Program or for Department- administered technical assistance to local governments.

The delays associated with the State’s approval of the City's Housing Element prevented the City from meeting the eligibility criteria needed to apply for PLHA funding until now. This year (2022) is the final year that the 2019 allocation of $316,758 will be available to the City. If not claimed this year, the funding will revert back to the HCD programs noted above. The PLHA grant formula component is now open, and applications are due October 31, 2022. It is of the utmost importance that the City submit the application to capitalize on this important funding opportunity. The proposed Plan is currently available on the City's website and was presented at the Homeless Task Force meeting on September 13, 2022.

SUMMARY:

Staff recommends that the City Council review the submission of the application to the PLHA grant formula component for $1.9 million dollars in formula funding from the California Department of Housing and Community Development.

ATTACHMENT(S)

1. Attachment A- Notice of Funding Opportunity

2. Attachment B- MFD PLHA Draft Working Budget

3. Attachment C- Montebello PLHA Plan

NEXT STEPS:

Staff will prepare the Proposed City's Permanent Local Housing Allocation Program Formula Funding Plan Application with Resolution for Public Hearing on October 26, 2022; staff will include any feedback for final approval on October 26, 2022, and submit the application on October 29, 2022.

STATE OF CALIFORNIA - BUSINESS, CONSUMER SERVICES AND HOUSING AGENCY GAVIN NEWSOM, Governor

DEPARTMENT OF HOUSING AND COMMUNITY DEVELOPMENT

DIVISION OF STATE FINANCIAL ASSISTANCE
2020 W. El Camino Avenue, Suite 670
Sacramento, CA 95833
(916)263-2771
www.hcd.ca.gov
August 17, 2022
MEMORANDUM FOR: All Potential Applicants
FROM: Jennifer Seeger, Deputy Director
Division of State Financial Assistance
SUBJECT: 2022 Permanent Local Housing Allocation
Program Entitlement and Non-Entitlement Local
Government Formula Component – Notice of
Funding Availability
The California Department of Housing and Community Development (Department) is pleased to announce the release of the 2022 Entitlement and Non-Entitlement Local government formula component Notice of Funding Availability (NOFA) for approximately $335 million in calendar year 2021 funds in addition to the $131 million in remaining calendar year 2019 and calendar year 2020 funds for the Permanent Local Housing Allocation (PLHA) formula allocation program. Appendix A details the total funds available to each eligible locality under this NOFA for housing-related projects and programs that assist in addressing unmet housing needs of their local communities.

First Time Applicants: This will be the last year for Applicants to apply for their 2019 calendar year allocation. Jurisdictions that have not previously applied must meet all threshold requirements as outlined in Part II, Section F, of the attached NOFA.

Second- or Third-Year Applicants: Jurisdictions that have previously applied and received an award of 2019 and/or 2020 funds are not required to resubmit all threshold documents but must demonstrate all threshold requirements continue to be met as noted in Part II, Section G, of this NOFA.
*** PLEASE NOTE ***
Any 2019 calendar year funds remaining after the close of the NOFA application period will revert to the Housing Rehabilitation Loan Fund established to be used for the Multifamily Housing Program (Chapter 6.7 commencing with Section 50675) pursuant to Health and Safety Code Section 50470 (b)((2)(B)(ii)(VI) to be made available through a future Multifamily Housing Program Notice of Funding Availability.

2022 Permanent Local Housing Allocation Program
Entitlement and Non-Entitlement Local Government NOFA

The application submittal portal will be available and open for applications beginning August 17, 2022.

Personal deliveries will not be accepted. No facsimiles, incomplete applications, application revisions, or walk-in application packages will be accepted. Applications will be accepted through October 31, 2022 and must be submitted electronically through the Department’s website. Requirements for uploading the Application Workbook and required supporting documentation, including naming conventions, are described in the application instructions available at http://www.hcd.ca.gov/grants- funding/active-funding/plha.shtml.

The PLHA application forms, workshop details, and Guidelines are posted on the Department’s website. To receive information on workshops and other updates, please subscribe to the PLHA listserv by clicking on “Email Sign-Up” on the Department’s website. If you have any further questions, please contact [email protected].

Attachment

Permanent Local Housing Allocation Program
Entitlement and Non-Entitlement Local
Government Formula Component
2022 Notice of Funding Availability

Gavin Newsom, Governor
State of California
Lourdes M. Castro Ramírez, Secretary
Business, Consumer Services and Housing Agency
Gustavo Velasquez, Director
California Department of Housing and Community Development 2020 West El Camino Avenue, Suite 500, Sacramento, CA 95833 Telephone: (916) 263-2771
Website: http://www.hcd.ca.gov/grants-funding/active-funding/plha.shtml Email: [email protected]

August 17, 2022

Table of Contents

I. Overview ........................................................................................................................... 5 A. Notice of Funding Availability .................................................................................. 5 B. Timeline .................................................................................................................. 6 C. Authorizing Legislation and Regulations ................................................................. 6 II. Program Requirements ...................................................................................................... 6 A. Eligible Applicants ................................................................................................... 7 B. Eligible Activities ..................................................................................................... 7 C. Allocation of funding and award limits ..................................................................... 9 D. Program Administrative, Activity Delivery Costs, and Reimbursement of Costs .... 11 E. Application review ................................................................................................ . 11 F. Threshold requirements for Previous Awardees .................................................... 11 G. Threshold requirements for First-Time Applicants ................................................. 13 H. Administration and reporting requirements ............................................................ 15 III. Application submission and review procedures ............................................................... 15 A. Application submission process ............................................................................ 15 B. Application Workshops .......................................................................................... 16 IV. Appeals ........................................................................................................................... 16 A. Basis of appeals .................................................................................................... 16 B. Appeal process and deadlines .............................................................................. 16 C. Decisions .............................................................................................................. 17 D. Award announcements and contracts ................................................................... 17 V. Other state requirements ................................................................................................ . 17 A. Pet Friendly Housing Act of 2017 .......................................................................... 17 B. Accessibility and non-discrimination ...................................................................... 17 IV. Other terms and conditions .............................................................................................. 18 A. Right to modify or suspend .................................................................................... 18 B. Disclosure of application ....................................................................................... 18 C. Conflicts ................................................................................................................ 18 APPENDICES ............................................................................................................................ 19

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 5 I. Overview

A. Notice of Funding Availability

The California Department of Housing and Community Development (Department or HCD) is announcing the release of the 2022 Permanent Local Housing Allocation (PLHA) Program’s Formula Component Notice of Funding Availability (NOFA) for approximately $335 million in calendar year 2021 funds in addition to the $131 million in calendar year 2019 and calendar year 2020 funds for Entitlement and Non-Entitlement Local governments. This NOFA is funded from moneys deposited in the Building Homes and Jobs Trust Fund (Fund) in calendar year 2021 and includes any remaining unawarded funds not requested for calendar years 2019 and 2020.

Funding for this NOFA is provided pursuant to Senate Bill 2 (SB 2) (Chapter 364, Statutes of 2017). SB 2 established the Fund and authorizes the Department to allocate 70 percent of moneys collected and deposited in the Fund, beginning in calendar year 2019, to Local governments for eligible housing and homelessness activities. The intent of the bill is to provide a permanent, on-going source of funding to Local governments for housing-related projects and programs that assist in addressing the unmet housing needs of their local communities.

In 2022, the Department will issue two separate NOFAs to award the PLHA funds:

x Formula Component NOFA for Entitlement and Non-Entitlement Local governments

x Non-Entitlement Local Government Competitive NOFA (anticipated in June 2022)

This NOFA outlines threshold and application requirements for Entitlement Local governments and Non-Entitlement Local governments as defined in Guidelines Section 101. Entitlement Local governments are metropolitan cities and urban counties that received a Community Development Block Grant (CDBG) for fiscal year 2017 pursuant to the federal formula specified in 42 U.S. Code, Section 5306.

Please note that this NOFA has two separate threshold requirements sections:
x Local governments that received an award under the 2020 or 2021 Formula Component NOFA are subject to the threshold requirements outlined in Part II, Section F
x Local governments that have not previously applied for and received a PLHA award must meet the threshold requirements outlined in Part II, Section G

*** PLEASE NOTE ***
Any 2019 calendar year funds remaining after the close of the NOFA application period will revert to the Housing Rehabilitation Loan Fund established to be used for the Multifamily Housing Program (Chapter 6.7 commencing with Section 50675) pursuant to Health and Safety Code Section 50470 (b)((2)(B)(ii)(VI) to be made available through a future Multifamily Housing Program Notice of Funding Availability.

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 6 B. Timeline

C. Authorizing Legislation and Regulations

Senate Bill 2 (Chapter 364, Statutes of 2017) established the PLHA Program. The program operates under the requirements of Health and Safety Code (HSC), Part 2 of Division 31, Chapter 2.5 (commencing with Section 50470).

Section 50470 (b)(2)(B)(i) of the HSC authorizes the Department to allocate 70 percent of the moneys collected and deposited in the Fund, beginning in calendar year 2019, to Local governments.

Section 50470 (b)(2)(B)(i)(I) of the HSC requires the Department to allocate 90 percent of PLHA funds available to Local governments based on the federal CDBG formula specified in 42 U.S. Code, Section 5306, except that the portion allocated to Non-Entitlement Local governments is required to be distributed through a competitive grant program for Non-Entitlement Local governments.

Section 50470 (b)(2)(B)(i)(II) of the HSC requires the Department to allocate the remaining 10 percent of PLHA funds available to Local governments equitably to Non-Entitlement Local governments.

Section 50470 (d) authorizes the Department to adopt Guidelines to implement the PLHA program, not subject to the rulemaking provisions of the California Administrative Procedure Act.

This NOFA governs the administration of funding from the Fund (created by Section 50470, subdivision (a)(1) and appropriated by item 2240-103-3317 in the Budget Act of 2019) and made available under the PLHA program.

Capitalized terms not otherwise defined in this NOFA shall have the meanings set forth in Guidelines Section 101.

II. Program Requirements

The following is provided as a summary for the allocation of the PLHA funds to Entitlement Non-Entitlement Local governments and is not to be considered a complete representation of the eligibility, threshold, or other requirements, terms, and conditions.

NOFA Release Date August 17, 2022
Application Submittal August 17, 2022 –
October 31, 2022
Award Announcement Ongoing through February 2023

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 7 This 2022 NOFA represents the third year of funding under the PLHA program for the Entitlement and Non-Entitlement Local Government Formula Component as detailed below:

Revenue Collection period NOFA Issuance
2019 CY 2020
2020 CY 2021
2021 CY 2022
A. Eligible Applicants
An Applicant must be an Entitlement Local government, a Non-Entitlement Local government, or a Local or Regional Housing Trust Fund delegated by the Local government pursuant to Guidelines Section 300. Appendix A of the NOFA contains the list of eligible Applicants.

1. Delegation of Formula Allocation
An eligible Applicant may delegate their entire formula allocation to either another Local government or to a Local or Regional Housing Trust Fund. A Local government that delegates their formula allocation to another Local government or to a Housing Trust Fund must enter into a legally binding agreement with the other Local government or Housing Trust Fund. The delegate must submit the PLHA application on behalf of the recipient of the PLHA Formula Allocation and wholly administer the entire formula component of PLHA funds on behalf of the delegator for the full term of the PLHA Plan, as set forth in Guidelines Section 300(c). Both the delegating Local government and the Applicant must meet the housing element compliance threshold requirement as outlined in Section II, Part F of this NOFA.

Upon delegating its entire formula allocation to another Local government or to a Local or Regional Housing Trust Fund, the Local government that delegated their allocation is no longer involved in the PLHA application or administration of the PLHA grant for the full term of the PLHA Plan, which extends through 2023. The delegated Local government or Trust Fund assumes full responsibility for compliance with statute and for meeting all the Department’s requirements, including any penalties for non-compliance.

A partial funding delegation is not permitted under the delegation authority.

However, a Local government can subgrant a portion of its allocation to another entity, as permitted by Guidelines Section 302(c)(3). When a Local government subgrants a portion of its allocation to another entity, the Local government remains fully accountable and responsible for compliance with statute and for meeting all of the Department’s requirements, including any penalties for non- compliance.

B. Eligible Activities
Pursuant to Guidelines Section 301(a), the PLHA funds allocated to eligible

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 8 Applicants must be used to carry out one or more of the eligible activities listed below. All services must be provided within the county containing the Local government recipient.

1. The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live-work, or rental housing that is Affordable to extremely low-, very low-, low-, or Moderate-income households (up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High-cost areas, see appendix B for a list of High-cost areas, including necessary Operating subsidies). Note: Predevelopment and/or acquisition must result in the development, rehabilitation, or preservation of housing, as otherwise there is no actual housing outcome of the predevelopment or acquisition assistance.

2. The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days. See Appendix B for a list of High-cost areas in California.

Note: Predevelopment and/or acquisition must result in the development, rehabilitation, or preservation of Affordable rental and ownership housing, as otherwise there is no actual housing outcome of the predevelopment or acquisition assistance.

3. Matching portions of funds placed into Local or Regional Housing Trust Funds.

Matching funds must be utilized as required by PLHA guidelines Section 301(a).

4. Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176.

Matching funds must be utilized as required by PLHA guidelines Section 301(a).

5. Capitalized Reserves for Services connected to the preservation and creation of new Permanent Supportive Housing (up to 30 percent of AMI).

6. Assisting persons who are experiencing or At risk of homelessness in conformance with 24 Code of Federal Regulations (CFR Section 578.3), (up to 30 percent of AMI), including

a. Rapid rehousing in conformance with federal rules contained in 24 CFR Section 576.104, except for legal services;
b. Rental assistance with a term of at least six (6) months (rental arrears is not eligible);
c. Street outreach, and other supportive/case management services in conformance with federal rules contained in 24 CFR Section 576.101 that allow people to obtain and retain housing;
d. Operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 9 transitional housing.

This Activity may include subawards to administrative entities as defined in HSC Section 50490(a) (1-3) that were awarded California Emergency Solutions and Housing (CESH) Program or Homeless Emergency Aid Program (HEAP) funds for rental assistance to continue assistance to these households.

Applicants must provide rapid rehousing, rental assistance, navigation centers, emergency shelter, and transitional housing activities in a manner consistent with the Housing First practices described in 25 CCR, Section 8409, subdivision (b)(1)-(6) and in compliance with Welfare Institutions Code (WIC) Section 8255(b)(8). An Applicant allocated funds for the new construction, rehabilitation, and preservation of Permanent supportive housing shall incorporate the core components of Housing First, as provided in WIC Section 8255(b).

7. Accessibility modifications in Lower-income Owner- occupied housing (up to 80 percent of AMI).

8. Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments (up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High- cost areas).

9. Homeownership opportunities, including, but not limited to, down payment assistance to those earning up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High-cost areas.

10. Fiscal incentives made by a county to a city within the county to incentivize approval of one or more Affordable housing projects, or matching funds invested by a county in an Affordable housing development project in a city within the county, provided that the city has made an equal or greater investment in the project. The county fiscal incentives shall be in the form of a grant or low-interest loan to an Affordable housing project. Matching funds investments by both the county and the city also shall be a grant or low-interest deferred loan to the Affordable housing project earning up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High-cost areas.

Twenty percent of the moneys in the Fund are required by statute to be expended for Affordable Owner Occupied
Workforce Housing (AOWH). If funding proposed in Local
government Plans for AOWH activities is lower than 20 percent of the moneys available in the Fund, the Department may require Local governments to use a specific percentage of their annual formula allocations in some future year for AOWH activities as part of the annual funding process.

C. Allocation of funding and award limits

Appendix A lists the dollar amount of the allocation of PLHA funds. There is a

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 10 column indicating allocations for calendar years 2021, 2020 and 2019. If a Local government applied for and received their 2010 or 2020 allocations, there is a blank in those columns. If a Local government HAS NOT applied before this NOFA, there will be an amount listed in each of the 2019, 2020, and 2021 columns.

The PLHA funds allocated to each Entitlement Local government is directly proportionate to each Entitlement Local Government’s share of the total 2017 Community Development Block Grant Fund Allocation in California.

The PLHA funds allocated to each Non-Entitlement Local Government is based on the sum of:

1. Fifty percent of the funding available for the Non-Entitlement formula component divided by the number of Local governments eligible for the Non-Entitlement formula component; and

2. Fifty percent of the funding available for the Non-Entitlement formula component allocated in proportion to each Non-Entitlement Local government’s share of the total most severe housing need in California’s Non-Entitlement Local governments, based upon the most recent U.S. Department of Housing and Urban Development (HUD) Comprehensive Housing Affordability Strategy (CHAS) data.

Two or more Local governments may expend PLHA funds on an eligible jointly funded project, provided the project is an eligible Activity pursuant to Guidelines Section 301(a), and will be located within the boundaries of one of the Local governments.

An Applicant eligible for an allocation of PLHA funds must comply with the Deadline and Funding Requirements set forth in Guidelines Section 304.

In order to avoid amending the Department Standard Agreement each year, and to expedite the disbursement of PLHA funds, the Department Standard Agreement and the Applicant’s PLHA resolution shall include a five-year estimate of PLHA formula allocations, as stated in Appendix C, as the maximum funding amount. The actual amounts may be lower, and the disbursements will be based on the actual allocation amounts.

Please be advised that no funding from any subsequent year will be disbursed if the Local government is not in compliance with the housing element requirement and the Housing Element Annual Progress Report (APR) requirement stated in Guidelines Section 302(a) and (b), or in the event that the Local government has not submitted its annual PLHA report, as required by Guidelines Section 503. Please refer to Appendix D for more information on verifying housing element and APR status. In addition, the grantee must be in compliance with commitment requirements stated in Guidelines Sections 300(e) and must not incur penalties stated in Guidelines Section 502.

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 11 D. Program Administrative, Activity Delivery Costs, and Reimbursement of Costs

A Local government that receives an award under this NOFA shall not use more than 5 percent (5%) of the award for administrative costs related to the execution of eligible activities.

Staff and overhead costs directly related to carrying out the eligible activities described in Guidelines Section 301(a) are “activity costs” and not subject to the cap on administrative costs. A Local government may share any funds available for administrative costs with entities to which it provides funding.

Predevelopment expenses for construction projects funded by PLHA funds and costs to develop and prepare the PLHA application and Plan may be paid from the PLHA funds regardless of when the costs were incurred. Reimbursement of expenses to prepare the PLHA application and Plan are subject to the cap on administrative costs. Other costs incurred more than one year prior to commitment by the Local government may not be paid from the PLHA funds.

E. Application review

An Applicant must submit a complete application and other documents by the deadline stated in this NOFA. Applications submitted in response to this NOFA must meet the threshold requirements set forth in this section and in the Guidelines Section 302.

F. Threshold requirements for Previous Awardees

Applicants that received awards from the 2021 Formula Allocation NOFA must meet all of the following threshold requirements:

1. Housing Element Compliance: The Applicant and delegating Local government, if applicable, must be a locality with an adopted housing element that has been found by the Department to be in substantial compliance with the requirements of Article 10.6 (commencing with section 65580) of Chapter 3 of Division 1 of Title 7 of the Government Code, pursuant to Government Code section 65585 at time of application. If the application is submitted within 120 days of the housing element due date, the Department may refer to the jurisdiction’s compliance from the prior cycle.

2. The Applicant must have submitted to the Department the Annual Progress Report on the Housing Element for the 2021 calendar year reporting period by the submittal date.

3. Applicant must have submitted to the Department the Annual PLHA Report if the application is submitted on or after July 31, 2022, which is the deadline for the Annual Report.

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 12 4. Applicant must have met the commitment requirements stated in PLHA Guidelines Section 300(e).

5. The application must request an allocation pursuant to Section 200 of the PLHA Guidelines. Previous awardees have already received Department approval for their five-year PLHA Plan, which lists the activities that the Local government plans to provide using the five years of funding contained in the Standard Agreement. The PLHA Plan continues in force and effect unless the Local government amends the Plan to provide different activities that are eligible under PLHA statute and Guidelines. If the Plan is amended so that more than 10 percent of funds are moved to a different activity, the Plan must be formally amended, including discussion and approval at a publicly noticed meeting of the Local government’s governing board, and the Plan must be submitted to the Department for approval. Activities must be carried out in the jurisdiction of the Applicant’s Local government. Jointly funded projects may be carried out as described in Section 301(c).

6. Submission of the application must be authorized by the governing board of the Applicant by Resolution, and this Resolution must be submitted as part of the application. The Resolution should use the five-year estimate of funding, as listed in Appendix C.

7. If the Local government proposes to allocate funds for any Activity to another entity, the Resolution must certify that the Local government’s selection process shall avoid conflicts of interest and shall be accessible to the public. See PLHA Guidelines Section 302 (c)(3).

8. If the Local government proposes to use funds for the acquisition, construction, or rehabilitation of for-sale housing projects or units within for-sale housing projects, the Resolution must certify that the grantee shall record a deed restriction against the property that will ensure compliance with one of the requirements stated in Guidelines Section 302(c)(6)(A), (B) or (C).

9. The resolution shall certify that, if funds are used for the development of an Affordable Rental Housing Development, the Local government shall make the PLHA assistance in the form of a low-interest, deferred loan to the Sponsor of the Project. The loan shall be evidenced through a Promissory Note secured by a Deed of Trust, and a Regulatory Agreement shall restrict occupancy and rents in accordance with the Local government-approved underwriting of the Project for a term of at least 55 years.

10. If any activity in the five-year Plan consists of loans being made to a homebuyer, homeowner, developer, or owner of a project, a Program income reuse plan describing how repaid loans will be used for eligible activities specified in Section 301 must be included in the application. This reuse plan must also describe how interest earned from PLHA funds deposited in a Local government interest- bearing account will be used for eligible PLHA activities.

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 13 G. Threshold requirements for First-Time Applicants

First-time Applicants who have not previously received an award under a prior Formula Allocation NOFA must meet the following threshold requirements:

1. Housing Element Compliance: The Applicant and delegating Local government, if applicable, must have a housing element that has been adopted by the jurisdiction’s governing body and subsequently determined to be in substantial compliance with state Housing Element Law pursuant to GC Section 65585 by the application date. If the application is submitted within 120 days of the housing element due date, the Department may refer to the jurisdiction’s compliance from the prior cycle.

2. The Applicant must have submitted to the Department the Annual Progress Report on the housing element for the corresponding calendar year based on the allocations for which the Applicant is applying by the application submittal date as follows:

Allocation Requested: APR Reporting Period:
2019 allocation 2019 CY APR
2020 allocation 2020 CY APR
2021 allocation 2021 CY APR

3. Application requests an allocation pursuant to Section 200 of the PLHA Guidelines and identifies the eligible activities to be undertaken. Activities must be carried out in the jurisdiction of the Applicant’s Local government. Jointly funded projects may be carried out as described in Section 301(c).

4. Submission of the application must be authorized by the governing board of the Applicant by Resolution, and this Resolution must be submitted as part of the application. The Resolution should use the five-year estimate of funding, as listed in Appendix C.

5. If the Local government proposes to allocate funds for any Activity to another entity, the Resolution must certify that the Local government’s selection process shall avoid conflicts of interest and shall be accessible to the public. See PLHA Guidelines Section 302 (c)(3).

6. If the Local government proposes to use funds for the acquisition, construction, or rehabilitation of for-sale housing projects, or units within for-sale housing projects, the Resolution must certify that the grantee shall record a deed restriction against the property that will ensure compliance with one of the requirements stated in Guidelines Section 302(c)(6)(A),(B) or (C).

7. The Resolution shall certify that, if funds are used for the development of an Affordable Rental Housing Development, the Local government shall make the

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 14 PLHA assistance in the form of a low-interest, deferred loan to the Sponsor of the Project. The loan shall be evidenced through a Promissory Note secured by a Deed of Trust, and a Regulatory Agreement shall restrict occupancy and rents in accordance with the Local government-approved underwriting of the Project for a term of at least 55 years.

8. The application must include a Plan which details:
a. The manner in which the allocated funds will be used for eligible Activities. b. A detailed description of the way the Local government will prioritize investments that increase the supply of housing for household with incomes at or below 60 percent of the AMI.
c. A detailed description of how the Plan is consistent with the programs set forth in the Local government’s housing element.
d. Evidence that the Plan was authorized and adopted by Resolution by the Local government and that the public had an adequate opportunity to review and comment on the Plan’s contents prior to the Plan Resolution adoption.

The plan must be provided to the public for a public comment period, culminating with a public hearing at which the governing board may approve it. The draft Plan should be published for public review on the Applicant’s website.
e. The Resolution adopting the Plan should specifically identify the activities the Local government plans to engage in. The Resolution is required to be submitted as part of the application. The Resolution must specifically state the eligible activities from the Plan application.
f. The following information is required for each proposed Activity:
i. A detailed description of each Activity, pursuant to Section 301 and the percentage of funding being allocated to it. The description must include the percentage, if any, directed to Affordable Owner-Occupied Workforce Housing (AOWH).
ii. The projected number of households to be served at each income level and a comparison to the unmet share of the Regional Housing Needs Allocation at each income level.
iii. A description of major steps/actions and a proposed schedule required for the implementation and completion of the Activity. iv. The period of affordability for each Activity. Rental Projects are required to have an affordability period of at least 55 years.

9. The Plan shall be for a term of five years, illustrating how the allocations from 2019, 2020, 2021, 2022, and 2023 will be used. Refer to instructions in the Plan tab of the PLHA Application form.

10. If funds are used for acquisition, construction, or rehabilitation of for-sale housing projects or units within for-sale housing projects, then a deed restriction shall be recorded against the property as described in Section 302(c)(6)(A-C).

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 15 11. If funds are proposed to be used for development of an Affordable Rental Housing Development, a certification is required that the Local government shall make the PLHA assistance in the form of a low-interest, deferred loan to the Sponsor of the Project. The loan must be evidenced through a Promissory Note secured by a Deed of Trust, and a Regulatory Agreement is required to restrict occupancy and rents in accordance with the Local government’s approved underwriting of the Project for a term of at least 55 years.

12. If any activity in the five-year Plan consists of loans being made to a homebuyer, homeowner, developer or owner of a project, a Program income reuse plan describing how repaid PLHA loans will be used for eligible activities specified in Section 301 must be included in the application. This reuse plan must also describe how interest earned from PLHA funds deposited in a Local government interest-bearing account will be used for eligible PLHA activities.

H. Administration and reporting requirements

A grantee of PLHA funds must meet the administration requirements set forth in Guidelines Sections 500 and 501 and reporting requirements in Section 503.

III. Application submission and review procedures

Applications must be on the Department’s forms and cannot be altered or modified by the Applicant. Excel forms must be in Excel format and 'saved as' .xls or .xlsx. Do not 'save as'.xlsm or .pdf format. Applications that do not meet the program requirements stated in this NOFA will not be eligible for funding. Application forms are available for download on the PLHA webpage.

A. Application submission process

Applications must be submitted electronically to the Department’s website.

Requirements for uploading the Application Workbook and required supporting documentation, including naming conventions, are described in the application instructions available at https://www.hcd.ca.gov/grants-funding/active- funding/plha.shtml. The submittal portal will be available beginning August 17, 2022.

Applicants must upload all application materials to the Department’s website. The application portal is open beginning on August 17, 2022 through 4:00 p.m. Pacific Standard Time on October 31, 2022. Please note that the on-line support and technical assistance closes at 4:00 p.m. Pacific Standard Time on October 31, 2022.

Personal deliveries will not be accepted. No facsimiles, incomplete applications, application revisions, or walk-in application packages will be accepted. Applications that do not meet the filing deadline requirements will not be eligible for funding.

It is the Applicant’s responsibility to ensure that the application is clear, complete, and accurate. The Department may request additional clarifying information and/or

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 16 inquire as to where in the application specific information is located. However, missing or forgotten application information or documentation may cause the application not to pass threshold.

Those Applicants that are notified they did not pass threshold requirements will have the opportunity to submit the necessary documentation prior to the NOFA closing date.

B. Application Workshops

Applicants are strongly encouraged to attend a PLHA webinar to gain information critical for preparing the application, which will be discussed at the webinar. PLHA webinar dates and times are located on the Department’s PLHA webpage.

IV. Appeals

A. Basis of appeals

1. Upon receipt of the Department’s notice that an application has been determined to be incomplete, ineligible, or fail threshold review, Applicants may appeal such decision(s) to the Director of the Department or their designee pursuant to this section.

2. No Applicant shall have the right to appeal a decision of the Department relating to another Applicant’s eligibility, point score, award, denial of award, or any other matter related thereto.

3. The appeal process provided herein applies solely to decisions of the Director of the Department or their designee made in this NOFA and does not apply to any decisions made with respect to any previously issued NOFAs or decisions to be made pursuant to future NOFAs.

B. Appeal process and deadlines

1. Process. In order to file an appeal, an Applicant must submit to the Director of the Department or their designee a written appeal, which states all relevant facts, arguments, and evidence upon which the appeal is based. Furthermore, the Applicant must provide a detailed description of how the application is complete, eligible or meets threshold requirements, as applicable, or provide additional information to resolve the Department’s determination. Appeals are to be submitted to the Department at [email protected] according to the deadline set forth in Department review letters.

2. Filing deadline. Appeals must be received by the Department no later than five (5) business days from the date of the Department’s threshold review letter representing the Department’s decision made in response to the application.

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 17 C. Decisions

Any request to appeal the Department’s decision regarding an application shall be reviewed for compliance with the Guidelines and this NOFA. All decisions rendered shall be final, binding, and conclusive, and shall constitute the final action of the Department.

D. Award announcements and contracts

The Department will review applications as they are received and will make awards as follows:

1. Previous Awardees: For Local governments that have previously received an award and are applying for a new allocation of calendar year 2021 funds, awards will be made within 60 days of receipt.

2. First Time Awardees: For Local governments that have not previously received an award, those applications will be reviewed, and awards made at the end of each quarter beginning in July 2022 with subsequent awards made in October 2022 and January 2023. Award recommendations will be posted on the PLHA webpage.

V. Other state requirements

A. Pet Friendly Housing Act of 2017

Housing funded through this program is subject to the Pet Friendly Housing Act of 2017 (HSC Section 50466). Each awardee will be required to submit a signed and dated certification that residents of the program-funded Housing development will be authorized to own or otherwise maintain one or more common household pets as required by HSC Section 50466. Pursuant to this statute, “common household pet” means a domesticated animal, such as a dog or cat, commonly kept in the home for pleasure rather than for commercial purposes.

B. Accessibility and non-discrimination

All projects or programs shall adhere to the accessibility requirements set forth in California Building Code Chapter 11A and 11B and the Americans with Disabilities Act (ADA), Title II. In addition, projects or programs shall adhere to either the Uniform Federal Accessibility Standards, 24 CFR Part 8, or HUD's modified version of the 2010 ADA Standards for Accessible Design (Alternative 2010 ADAS), HUD- 2014-0042-0001, 79 F.R. 29671 (5/27/14) (commonly referred to as "the Alternative Standards" or "HUD Deeming Memo"). Accessible units shall, to the maximum extent feasible and subject to reasonable health and safety requirements, be distributed throughout the project and be available in a sufficient range of sizes and amenities consistent with 24 CFR Section 8.26.

Recipients shall adopt a written non-discrimination policy requiring that no person shall, on the grounds of race, color, religion, sex, gender, gender identity, gender

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA 18 expression, sexual orientation, marital status, national origin, ancestry, familial status, source of income, disability, age, medical condition, genetic information, citizenship, primary language, immigration status (except where explicitly prohibited by federal law), arbitrary characteristics, and all other classes of individuals protected from discrimination under state or federal fair housing laws, individuals perceived to be a member of any of the preceding classes, or any individual or person associated with any of the preceding classes 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 program funds made available pursuant to this NOFA.

Recipients shall comply with the requirements contained in the ADA, the Fair Housing Amendments Act, the California Fair Employment and Housing Act, the Unruh Act, GC Section 11135, Section 504 of the Rehabilitation Act, and regulations promulgated pursuant to those statutes, including 24 CFR Part 100, 24 CFR Part 8, and 28 CFR Part 35, in all of the Sponsor's activities.

IV. Other terms and conditions

A. Right to modify or suspend

The Department reserves the right, at its sole discretion, to suspend, amend, or modify the provisions of this NOFA at any time, including, without limitation, the amount of funds available hereunder. If such an action occurs, the Department will notify all interested parties and will post the revisions to the Department’s website.

B. Disclosure of application

Information provided in the application will become a public record and available for review by the public, pursuant to the California Public Records Act (GC Section 6250 et seq.). As such, any materials provided will be disclosed to any person making a request under this Act. The Department cautions Applicants to use discretion in providing information not specifically requested, including, but not limited to, bank account numbers, personal phone numbers, and home addresses.

By providing this information to the Department, the Applicant is waiving any claim of confidentiality and consents to the disclosure of submitted material upon request.

C. Conflicts

In the event of any conflict between the terms of this NOFA and either applicable state or federal law or regulation, the terms of the applicable state or federal law or regulation shall control. Applicants are deemed to have fully read and understand all applicable state and federal laws, and regulations pertaining to PLHA, and understand and agree that the Department shall not be responsible for any errors or omissions in the preparation of this NOFA.

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

19 APPENDICES

Appendix A
Entitlement and Non-Entitlement Local Government Formula Allocation for Calendar years 2019, 2020, and 2021.

Please refer to Section II.A. Eligible Applicants for a discussion of the definition of Entitlement and Non-Entitlement Local Governments.

Entitlement Local Government Non-Entitlement Local Government Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
Alameda $868,493 $955,750
Alpine
County $68,065 $106,216 $116,768
Alameda
County $1,451,516 $1,597,349 Alturas $79,305 $123,577 $128,224 Alhambra $796,443 Amador City $65,861 $100,869 $112,445 Aliso Viejo $119,177 $185,238 $203,849
Amador
County $134,185 $203,299 $275,316
Anaheim $3,686,550
American
Canyon $117,435 $178,785 $199,555
Antioch $612,764 $674,328 Anderson $103,770 $163,160 $178,480 Apple Valley $446,959 $491,865 Angels $81,289 $127,049 $128,764 Bakersfield $2,960,656 Arcata $176,062 $284,687 $208,201 Baldwin Park $758,781 $835,015 Artesia $135,728 $204,479 $213,605 Bellflower $878,539 Arvin $220,799 $217,928
Berkeley $2,212,637 Atwater $158,209 $247,535 $269,804 Buena Park $573,917 $631,578 Auburn $119,859 $185,382 $203,337 Burbank $816,205 Avenal $104,652 $168,021 $177,939
Camarillo $231,519 Benicia $141,459 $222,187 $229,276 Carlsbad $272,582 $423,678 $466,244 Biggs $70,710 $109,341 $121,739 Carson $709,383 Bishop $83,713 $132,952 $146,057
Cathedral
City $484,445 Blue Lake $68,285 $105,521 $117,957
Cerritos $109,213 $169,751 $186,806 Brawley $151,156 $240,243 $234,139 Chico $390,348 $606,721 $667,678 Butte County $333,428 $494,061 $610,245 Chino $249,365 $387,590 $426,531
Calaveras
County $429,217
Chino Hills $303,241 Calexico $203,832 $307,951 $284,935 Chula Vista $1,646,765 $1,812,214 Calimesa $88,783 $138,507 $156,324 Citrus
Heights $486,125 $534,966 Calipatria $77,101 $120,452 $122,280 Clovis City $625,364 Calistoga $85,256 $133,646 $134,709 Compton $769,720 $1,196,383 $1,316,582 Capitola $105,092 $180,868 $195,772 Concord $836,053
Carmel-by-
the-Sea $81,950 $130,174 $140,653
Contra Costa
County $3,712,024 Chowchilla $164,970

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

20 Entitlement Local Government Non-Entitlement Local Government Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
Corona $995,498 Clearlake $145,867 $208,993 $232,518 Costa Mesa $904,122 Coalinga $165,243 $170,374
Cupertino
City $283,100 Colfax $72,032 $113,855 $125,522
Daly City $875,455 Colusa $85,917 $135,035 $161,187 Davis $470,837 $518,142
Colusa
County $83,493 $136,077 $152,541
Delano City $556,115 Corcoran $113,908 $178,438 $179,560 Downey $889,923 Corning $92,529 $143,368 $150,380
El Cajon $645,382 $1,003,123 $1,103,906 Crescent City $80,848 $125,660 $142,274 El Centro
(Colonia
Only) $245,998 $382,358 $420,773
Del Norte
County $140,797 $210,729 $214,685
El Monte $1,449,267 Dinuba $230,897
Elk Grove $439,787 $683,565 $752,243 Dixon $115,451 $189,896 $194,691 Encinitas $156,044 $242,541 $266,909 Dorris $66,522 $103,785 $116,876 Escondido $842,911 $1,310,146 $1,441,775 Dos Palos $82,832 $120,799 $143,355 Fairfield $668,640 Dunsmuir $72,032 $111,424 $124,441 Fontana $1,678,180
El Centro
(Colonia
Only) $216,175 $311,076 $283,314
Fountain
Valley $247,348
El Dorado
County $973,923
Fremont $1,096,685 Etna $67,183 $105,521 $114,714
Fresno $5,828,601 Eureka $346,539
Fresno
County $2,810,897 Exeter $164,970
Fullerton $1,177,577 Farmersville $176,858
Garden
Grove $1,700,794 Ferndale $71,150 $108,994 $121,739 Gardena $329,877 $512,732 $564,246 Firebaugh $95,395 $144,410 $159,566 Gilroy City $417,798 Fort Bragg $106,856 $163,507 $142,814 Glendale $867,025 $1,347,626 $1,483,020 Fort Jones $69,167 $106,910 $115,795 Glendora
City $130,258 $202,461 $222,802 Fortuna $108,619 $171,840 $171,995 Goleta $160,810 Fowler $81,069 $126,355 $139,032
Hanford $505,389
Glenn
County $201,716
Hawthorne $1,048,208 Grass Valley $225,493
Hayward $1,012,998 $1,114,773 Greenfield $139,916 $211,076 $213,605 Hemet $688,525 Gridley $92,529 $144,410 $143,895
Hesperia $505,777 $786,135 $865,117
Grover
Beach $181,182
Huntington
Beach $938,184 Guadalupe $101,125 $160,035 $166,051

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

21 Entitlement Local Government Non-Entitlement Local Government Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
Huntington
Park $651,678 $1,012,910 $1,114,676 Gustine $73,575 $118,021 $150,920 Indio City $779,909 Hidden Hills $71,371 $111,077 $124,982 Inglewood $735,776 $1,143,625 $1,258,523 Hollister $180,249 $280,173 $290,339 Irvine $1,296,497 Holtville $82,611 $131,563 $121,739 Kern County $3,695,204
Humboldt
County $595,871
La Habra $604,420 $665,145 Huron $153,438 $143,355 La Mesa $293,468 $322,953 Imperial $91,427 $147,535 $169,834 Laguna
Niguel $262,411
Imperial
County $173,858 $260,034 $311,954
Lake
Elsinore $425,098 Indian Wells $88,783 $135,730 $163,889 Lake Forest $221,070 $343,611 $378,133 Industry $65,596 $101,632 $110,824 Lakewood $270,847 $420,981 $463,277 Inyo County $103,770 $166,285 $220,630 Lancaster $1,188,528 Ione $75,338 $118,716 $141,734 Livermore $356,702 Jackson $87,460 $133,299 $143,355 Lodi $575,172 King City $205,868 $173,616
Lompoc $227,027 $352,871 $388,324 Kings County $163,499 $249,965 $304,389 Long Beach $5,006,175 Lake County $241,741 $360,728 $401,658 Los Angeles $44,847,783 Lakeport $79,305 $126,702 $163,889 Los Angeles
County $18,858,143
Lassen
County $102,007 $155,868 $187,666
Lynwood $981,371 $1,079,969 Lemoore $145,205 $217,326 $237,381 Madera $422,319 $656,414 $722,364 Lincoln $203,171 $314,201 $344,377 Marin County $1,241,068 Lindsay $189,201 $197,393 Menifee $1,079,969 Live Oak $89,664 $132,952 $156,324 Merced $722,364 Livingston $108,839 $172,882 $179,560 Milpitas City $238,595 $370,850 $408,109 Loomis $81,730 $123,577 $147,678 Mission Viejo $353,526 Los Banos $188,184 $292,326 $289,258 Modesto $1,658,723 Loyalton $67,624 $105,521 $116,336 Montebello $316,758 $492,340 $541,805
Madera
County $484,877
Monterey $180,952 $199,132
Mammoth
Lakes $81,730 $123,924 $154,162
Monterey
County $1,109,035 Maricopa $66,742 $105,869 $116,336 Monterey
Park $318,871 $495,625 $545,420 Marina $157,548 $235,382 $234,139 Moreno
Valley $1,761,457
Mariposa
County $235,220
Mountain
View $256,551 $398,761 $438,824 Marysville $169,063 $183,883 Napa City $544,289 McFarland $112,806 $174,618 $177,939

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

22 Entitlement Local Government Non-Entitlement Local Government Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
National City $672,542
Mendocino
County $578,903
Newport
Beach $290,118
Merced
County $625,917
Norwalk $592,762 $921,336 $1,013,902
Modoc
County $76,440 $120,105 $146,597
Oakland $5,757,902 $6,336,392 Mono County $77,101 $113,855 $136,870 Oceanside $1,008,982 $1,110,353 Montague $68,726 $105,174 $116,876 Ontario $1,573,664
Mount
Shasta $89,885 $141,285 $153,082
Orange $1,039,081 Napa County $220,451 $261,158
Orange
County $2,175,998 Nevada City $136,870
Oxnard $1,981,457
Nevada
County $566,474
Palm Desert $293,014 Orange Cove $101,345 $156,563 $149,299 Palm Springs $328,816 Orland $143,355
Palmdale $1,332,565 Oroville $224,412
Palo Alto $231,496 $359,817 $395,967 Pacific Grove $188,207 Paradise $93,596 $145,477 $160,093
Palos Verdes
Estates $96,717 $157,257 $170,914
Paramount
City $438,197 $681,094 $749,523 Parlier $199,965 $208,741 Pasadena $1,454,952 $1,601,129 Pismo Beach $99,582 $157,604 $184,964 Perris City $725,136 $797,990
Placer
County $813,970
Petaluma $315,338 Placerville $110,823 $173,924 $181,182 Pico Rivera $338,973 $526,870 $579,804
Plumas
County $187,118 $217,387
Pittsburg $543,387 Plymouth $67,404 $104,757 $116,876 Placentia $333,825 $367,364 Point Arena $67,404 $103,785 $114,174 Pleasanton
City $151,089 $234,839 $258,433 Portola $75,338 $119,757 $120,659 Pomona $1,827,543
Rancho
Mirage $172,094 $282,257 $335,191
Porterville $586,270 Red Bluff $124,047 $189,201 $200,095 Rancho
Cordova City $285,366 $443,548 $488,110 Rio Dell $79,085 $118,716 $141,193 Rancho
Cucamonga $450,476 $700,179 $770,526 Rio Vista $96,276 $149,271 $157,945 Rancho
Santa
Margarita $173,436 Riverbank $193,021 $206,039
Redding $576,110
San Benito
County $121,182 $175,313 $213,064
Redondo
Beach $130,830 $203,351 $223,781 San Joaquin $78,644 $123,924 $128,764

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

23 Entitlement Local Government Non-Entitlement Local Government Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
Redwood
City $594,763
San Juan
Bautista $75,999 $114,549 $122,280
Rialto $597,786 $929,145 $1,022,495
San Juan
Capistrano $236,452 $359,687 $335,191
Riverside $2,521,285 $2,774,596 Sand City $67,139 $104,063 $112,445 Riverside
County $6,835,329
Santa Cruz
County $895,101 $916,102
Rocklin City $230,295 Scotts Valley $103,770 $166,979 $171,995 Rosemead $343,238 $533,498 $587,099
Shasta
County $578,903
Roseville $536,004 Shasta Lake $174,157
Sacramento $4,031,691
Sierra
County $124,441
Sacramento
County $4,229,006 $4,653,890
Siskiyou
County $260,618
Salinas $1,722,182
Solano
County $201,701 $240,083
San
Bernardino $2,521,132 $2,774,428 Soledad $120,961 $188,160 $188,207 San
Bernardino
County $5,916,756 Sonora $91,427 $138,507 $143,895
San
Buenaventur
a $555,571 $611,389
South Lake
Tahoe $299,525
San
Clemente $323,348 St. Helena $89,003 $137,118 $149,299 San Diego $9,903,933 Suisun City $154,683 $222,187 $257,916 San Diego
County $3,077,481 $3,386,672 Susanville $93,191 $141,632 $146,597 San
Francisco $13,550,527 $14,911,935
Sutter
County $181,910 $211,983
San Joaquin
County $2,241,046 Sutter Creek $78,644 $121,841 $128,764 San Jose $7,438,226 Taft $90,546 $140,591 $136,330
San Leandro $543,946 $598,596 Tehama $65,596 $101,632 $111,256 San Luis
Obispo
County $1,492,388
Tehama
County $186,685 $318,784 $414,843
San Marcos
City $319,178 $496,102 $545,945 Trinidad $66,081 $101,702 $111,256 San Mateo $584,800
Trinity
County $121,622 $186,424 $219,008
San Mateo
County $2,068,899 Truckee $181,722
Santa Ana $4,795,654
Tulare
County $969,060
Santa
Barbara $775,030 Tulelake $68,506 $106,563 $115,795

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

24 Entitlement Local Government Non-Entitlement Local Government Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
Santa
Barbara
County $974,603
Tuolumne
County $242,182 $368,367 $476,771
Santa Clara $820,156 Ukiah $129,777 $199,618 $187,666 Santa Clara
County $1,260,160 Vernon $65,376 $100,591 $111,472
Santa Clarita $588,259 $914,338 $1,006,200 Wasco $135,508 $205,174 $244,947 Santa Cruz $452,837 Weed $76,661 $120,105 $131,466
Santa Maria $1,254,581 Westmorland $72,693 $113,507 $117,957 Santa
Monica $936,510 Wheatland $72,032 $110,035 $123,361 Santa Rosa $1,187,622 Williams $80,848 $126,355 $135,249 Santee $134,374 $208,859 $229,843 Willits $92,309 $137,813 $141,734 Seaside $193,124 $300,175 $330,334 Willows $138,491 Simi Valley $451,305 $496,647 Winters $136,077 $177,399 Sonoma
County $1,538,385 Woodlake $136,424 $150,380
South Gate $1,233,796 Yolo County $222,882 $234,679 South San
Francisco $372,849 Yountville $81,069 $127,049 $133,087 Stanislaus
County $1,975,561 Yreka $102,007 $154,827 $162,268
Stockton $2,660,093 $2,927,349 Yuba County $483,256 Sunnyvale $533,023 $828,483 $911,720
Temecula $467,631
Thousand
Oaks $506,368
Torrance $760,089
Tulare $494,944 $544,671
Turlock $309,854 $481,610 $529,997
Tustin $659,464
Union City $394,694 $434,349
Upland $431,845 $475,232
Vacaville $240,500 $373,812 $411,368
Vallejo $864,418
Ventura
County $1,470,575
Victorville $1,082,334
Visalia $1,078,990
Vista $635,530 $699,381
Walnut
Creek $236,813
Watsonville $362,515 $563,461 $620,071
West Covina $388,763 $604,258 $664,967

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

25 Entitlement Local Government Non-Entitlement Local Government Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021
Local Gov
Funding
Amount
2019
Funding
Amount
2020
Funding
Amount
2021

West
Sacramento

$236,679

$367,872

$404,832
Westminster $873,327
Whittier $595,595 $655,434
Woodland $387,006 $425,889
Yorba Linda $182,215
Yuba City $483,607 $532,195

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

26 Appendix B
List of High-cost Areas in California

High-cost Area by
County
High-cost Area pursuant to Federal
Housing Finance Agency’s Maximum
Loan Limits for Mortgages Acquired
in Calendar Year 2020
High-cost Area pursuant to
Department of Housing and Urban
Development Very Low-Income
Adjustments due to High-Housing
Cost for Fiscal Year 2020-21
Alameda x
Contra Costa x
El Dorado x
Imperial x
Los Angeles x
Madera x
Marin x
Merced x
Monterey x
Napa x
Orange x
Placer x
Sacramento x
San Benito x
San Diego x
San Francisco x
San Luis Obispo x
San Mateo x
Santa Barbara x
Santa Clara x
Santa Cruz x
Solano x
Sonoma x
Tulare x
Ventura x
Yolo x

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

27 Appendix C
Estimate of Five-Year PLHA Allocation for Entitlement and Non-Entitlement Local government

Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year
Funding Amount Local government Estimate 5-Year
Funding Amount
Alameda $3,352,590 Alpine County $408,390
Alhambra $2,793,768 Alturas $475,835
Aliso Viejo $715,062 Amador City $395,168
Anaheim $12,931,710 Amador County $805,115
Antioch $2,365,410 American Canyon $704,612
Apple Valley $1,725,366 Anderson $622,622
Bakersfield $10,385,412 Angels $487,737
Baldwin Park $2,929,068 Arcata $1,056,372
Bellflower $3,081,744 Artesia $814,372
Berkeley $7,761,504 Arvin $831,563
Buena Park $2,215,452 Atwater $949,257
Burbank $2,863,092 Auburn $719,158
Camarillo $812,124 Avenal $627,912
Carlsbad $1,635,492 Benicia $848,754
Carson $2,488,380 Biggs $424,261
Cathedral City $1,699,338 Bishop $502,283
Cerritos $655,278 Blue Lake $409,715
Chico $2,342,088 Brawley $906,940
Chino $1,496,190 Butte County $2,000,572
Chino Hills $1,063,710 Calaveras County $1,238,865
Chula Vista $6,356,898 Calexico $1,222,996
Citrus Heights $1,876,554 Calimesa $532,699
Clovis City $2,193,654 Calipatria $462,611
Compton $4,618,320 Calistoga $511,540
Concord $2,932,710 Capitola $630,557
Corona $3,492,018 Carmel-by-the-Sea $491,704
Costa Mesa $3,171,486 Chowchilla $662,295
Cupertino City $993,060 Clearlake $875,203
Daly City $3,070,926 Coalinga $618,655
Davis $1,817,544 Colfax $432,196
Delano City $1,950,744 Colusa $515,507
Downey $3,121,674 Colusa County $500,961
El Cajon $3,872,292 Corcoran $683,453
El Centro $1,475,988 Corning $555,180
Elk Grove $2,638,722 Crescent City $485,092
El Monte $5,083,752 Del Norte County $844,787

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

28 Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year
Funding Amount Local government Estimate 5-Year
Funding Amount
Encinitas $936,264 Dinuba $889,749
Escondido $5,057,466 Dixon $692,710
Fairfield $2,345,460 Dorris $399,135
Fontana $5,886,732 Dos Palos $496,994
Fountain Valley $867,648 Dunsmuir $432,196
Fremont $3,846,960 El Centro $1,297,051
Fresno $20,445,618 El Dorado County $2,879,974
Fullerton $4,130,712 Etna $403,103
Gardena $1,979,262 Eureka $1,125,138
Garden Grove $5,966,058 Exeter $586,917
Gilroy City $1,465,554 Farmersville $589,562
Glendale $5,202,150 Ferndale $426,906
Glendora City $781,548 Firebaugh $572,371
Goleta $564,090 Fort Bragg $641,136
Hanford $1,772,808 Fort Jones $415,004
Hawthorne $3,676,914 Fortuna $651,715
Hayward $3,910,410 Fowler $486,414
Hemet $2,415,216 Glenn County $641,136
Hesperia $3,034,662 Grass Valley $813,049
Huntington Beach $3,290,970 Greenfield $839,497
Huntington Park $3,910,068 Gridley $555,180
Indio City $2,735,772 Grover Beach $727,093
Inglewood $4,414,656 Guadalupe $606,754
Irvine $4,547,862 Gustine $441,452
Laguna Niguel $920,484 Hidden Hills $428,228
La Habra $2,333,202 Hollister $1,081,498
Lake Forest $1,326,420 Holtville $495,671
Lake Elsinore $1,491,162 Humboldt County $2,066,693
Lakewood $1,625,082 Huron $597,497
La Mesa $1,132,854 Imperial $548,568
Lancaster $4,169,130 Imperial County $1,043,148
Livermore $1,251,240 Indian Wells $532,699
Lodi $2,017,590 Industry $393,581
Lompoc $1,362,162 Inyo County $622,622
Long Beach $17,560,704 Ione $452,032
Los Angeles $157,317,438 Jackson $524,764
Lynwood $3,788,322 King City $805,115
Madera $2,533,914 Kings County $980,995
Menifee $1,509,624 Lake County $1,450,450
Merced $3,112,314 Lakeport $475,835
Milpitas City $1,431,570 Lassen County $612,043
Mission Viejo $1,240,098 Lemoore $871,235

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

29 Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year
Funding Amount Local government Estimate 5-Year
Funding Amount
Modesto $5,818,482 Lincoln $1,219,029
Montebello $1,900,548 Lindsay $703,289
Monterey $698,514 Live Oak $537,988
Monterey Park $1,913,226 Livingston $653,038
Moreno Valley $6,178,854 Loomis $490,382
Mountain View $1,539,306 Los Banos $1,129,105
Napa City $1,909,260 Loyalton $405,747
National City $2,359,146 Madera County $1,643,522
Newport Beach $1,017,678 Mammoth Lakes $490,382
Norwalk $3,556,572 Maricopa $400,458
Oakland $22,226,850 Marina $945,290
Oceanside $3,894,906 Mariposa County $770,732
Ontario $5,520,108 Marysville $662,295
Orange $3,644,898 McFarland $676,841
Oxnard $6,950,574 Mendocino County $2,099,753
Palmdale $4,674,384 Merced County $1,865,687
Palm Desert $1,027,836 Modoc County $458,644
Palm Springs $1,153,422 Mono County $462,611
Palo Alto $1,388,976 Montague $412,359
Paradise $561,576 Mount Shasta $539,311
Paramount City $2,629,182 Napa County $859,334
Pasadena $5,616,456 Nevada City $473,190
Perris City $2,799,192 Nevada County $1,837,916
Petaluma $1,106,142 Orange Cove $608,076
Pico Rivera $2,033,838 Orland $555,180
Pittsburg $1,906,098 Oroville $822,306
Placentia $1,288,644 Pacific Grove $712,546
Pleasanton City $906,534 Palos Verdes Estates $580,305
Pomona $6,410,670 Parlier $801,148
Porterville $2,056,524 Pismo Beach $597,497
Rancho Cordova City $1,712,196 Placer County $2,730,542 Rancho Cucamonga $2,702,856 Placerville $664,940
Rancho Santa Margarita $608,376 Plumas County $727,093
Redding $2,020,884 Plymouth $404,425
Redondo Beach $784,980 Point Arena $404,425
Redwood City $2,086,314 Portola $452,032
Rialto $3,586,716 Rancho Mirage $1,032,569
Riverside $9,732,750 Red Bluff $744,284
Rocklin City $807,828 Rio Dell $474,513
Rosemead $2,059,428 Rio Vista $577,661
Roseville $1,880,196 Riverbank $732,382
Sacramento $14,142,402 San Benito County $727,093

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

30 Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year
Funding Amount Local government Estimate 5-Year
Funding Amount
Salinas $6,041,082 San Joaquin $471,868
San Bernardino $9,732,162 San Juan Bautista $455,999
San Clemente $1,134,240 San Juan Capistrano $1,418,712
San Diego $34,741,098 Sand City $402,838
San Francisco $52,308,210 Santa Cruz County $3,395,713
San Jose $26,091,876 Scotts Valley $622,622
San Leandro $2,099,760 Shasta County $1,721,544
San Marcos City $1,915,068 Shasta Lake $613,366
San Mateo $2,051,364 Sierra County $405,747
Santa Ana $16,822,236 Siskiyou County $852,722
Santa Barbara $2,718,654 Solano County $769,410
Santa Clara $2,876,946 Soledad $725,770
Santa Clarita $3,529,554 Sonora $548,568
Santa Cruz $1,588,464 South Lake Tahoe $994,219
Santa Maria $4,400,826 St. Helena $534,021
Santa Monica $3,285,096 Suisun City $928,099
Santa Rosa $4,165,950 Susanville $559,147
Santee $806,244 Sutter County $698,000
Seaside $1,158,744 Sutter Creek $471,868
Simi Valley $1,742,142 Taft $543,278
South Gate $4,327,920 Tehama $393,581
South San Francisco $1,307,880 Tehama County $1,120,113 Stockton $10,268,580 Trinidad $396,491
Sunnyvale $3,198,138 Trinity County $729,738
Temecula $1,640,358 Truckee $627,912
Thousand Oaks $1,776,240 Tulare County $3,501,506
Torrance $2,666,244 Tulelake $411,037
Tulare $1,910,598 Tuolumne County $1,453,095
Turlock $1,859,124 Ukiah $778,667
Tustin $2,313,270 Vernon $392,259
Union City $1,523,610 Wasco $813,049
Upland $1,667,022 Weed $459,966
Vacaville $1,443,000 Westmorland $436,163
Vallejo $3,032,214 Wheatland $432,196
San Buenaventura $2,144,634 Williams $485,092
Victorville $3,796,620 Willits $553,857
Visalia $3,784,890 Willows $561,792
Vista $2,453,292 Winters $532,699
Walnut Creek $830,694 Woodlake $539,311
Watsonville $2,175,090 Yolo County $819,661
West Covina $2,332,578 Yountville $486,414
Westminster $3,063,462 Yreka $612,043

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

31 Entitlement Local government Non-Entitlement Local government Local government Estimate 5-Year
Funding Amount Local government Estimate 5-Year
Funding Amount
West Sacramento $1,420,074 Yuba County $1,634,265
Whittier $2,299,140
Woodland $1,493,934
Yorba Linda $639,174
Yuba City $1,866,840
Alameda County $5,603,190
Contra Costa County $13,021,068
Fresno County $9,860,088
Kern County $12,962,064
Los Angeles County $66,150,756
Marin County $4,353,426
Monterey County $3,890,280
Orange County $7,632,984
Riverside County $23,977,026
Sacramento County $16,324,956
San Bernardino County $20,754,846
San Diego County $11,879,796
San Joaquin County $7,861,158
San Luis Obispo County $5,235,012
San Mateo County $7,257,300
Santa Barbara County $3,418,722
Santa Clara County $4,420,398
Sonoma County $5,396,358
Stanislaus County $6,929,892
Ventura County $5,158,494

Department of Housing and Community Development
2022 PLHA Entitlement and Non-Entitlement Local Government Formula Allocation NOFA

32 Appendix D
Housing Element and Annual Progress Report (APR) Submittal Status Requirement stated in Guidelines Section 302(a) and (b)

To be eligible to apply, jurisdictions are required to have a housing element that has been adopted by the jurisdiction’s governing body and subsequently determined to be in substantial compliance with state Housing Element Law pursuant to GC Section 65585 by the application date. If the application is submitted within 120 days of the housing element due date, the Department may refer to the jurisdiction’s compliance from the prior cycle.

To verify current status and eligibility for PLHA funds, please consult the following resources:

Housing Element Compliance: Housing Element Review and Compliance Report | California Department of Housing and Community Development

Annual Progress Report Submittal: Annual Progress Reports - Data Dashboard and Downloads | California Department of Housing and Community Development

Please note that PLHA is an over-the-counter program, allowing Applicants to apply at any point during the OTC application window of August 17 to October 31. If a jurisdiction is currently out of compliance, that jurisdiction, once it reaches compliance with the housing element and APR requirements, will be eligible for these funds.

For questions about Housing Element Compliance, please email [email protected]. For inquiries on status of APR submittal, please email [email protected].

Update: 09/28/22
City of Montbello PLHA Formula - Working Draft Budget
PLHA Allocation Years
2019
Allocation
2020
Allocation
2021
Allocation
TBD 2022
Allocation
TBD 2023
Allocation Total Total 5-Yr Allocation $1,900,548
Formula Allocation $ 316,758 $ 492,340 $ 541,805 $ 274,823 $ 274,822 $ 1,900,548 First 3 Yrs Allocation $1,350,903 Award Deadline Apr-23 Apr-24 Apr-25 Apr-26 Apr-27 *** Remainder for Yrs 4-5 $549,645 Expenditure Deadline 4/30/2024 4/30/2025 4/30/2026 4/30/2027 4/30/2028 *** Split for Years 4 and 5 $274,823 1) Rental Assistance (Eligible Activity 6b)
Rental Assistance for Up to 12 months for
homeless and older adults for households
up to 30 percent AMI* $ 30,200 $ 125,308 $ 126,065 $ - $ - $ 281,573 2) Homeless Assistance Program (Eligible
Activity 6c)
MCAP Team: Street outreach and
supportive case management to assist
homeless persons of up to 30% AMI (see
annual budget for costs) $ 270,720 $ 342,415 $ 388,650 $ - $ - $ 1,001,785 3) Capital Reserves for Permanent
Supportive Housing Services (Eligible
Activity 5)
Funds to services connected to
permanent supportive housing (new or
preserve existing) for households up to
30% of AMI $ - $ - $ - $ 261,082 $ 261,081 $ 522,163
Local Admin (5%) $ 15,838 $ 24,617 $ 27,090 $ 13,741 $ 13,741 $ 95,027 Total Costs $ 316,758 $ 492,340 $ 541,805 $ 274,823 $ 274,822 $ 1,900,548 Remaining PLHA Funds to be Allocated 0 0 0 0 0 0

MCAP COVERAGE BY PLHA
(ANNUALLY):

Percent of MCAP Covered by PLHA in Each Year
MCAP Annual Cost = $409, 453 (see next
sheet for breakdown of annual costs) 66% 84% 95% 0% 0%
NUMBER OF PERSONS SERVED BY PLHA:

1. Rental Assistance: RA for 1 person for
up to 6 months = $15,000 (per AP and LC
for $2K plus deposits)
Total
Budgeted
amount for
RA = $ 281,573
TOTAL

PERSONS
PROVIDED RA 18.77

2. MCAP Team
Annual #
persons
served by
MCAP Year 1 Year 2 Year 3 Year 4 Year 5
TOTAL

SERVED BY
MCAP
(see list of annual expenses in next sheet) 100 66.12 83.63 94.92 0.00 0.00 244.66

3. Capital Reserves for Permanent
Supportive Housing (PSH) Services
Persons
served Year 1 Year 2 Year 3 Year 4 Year 5
TOTAL

SERVED BY
PSH
by PSH 0.00 0.00 0.00 60.00 60.00 120.00
60

MCAP Annual Budget (from Montebello FD) - 9/26/22
Personnel FTE Budget
Social Worker 1 $ 79,722.00
Field Case Coordinator 1 $ 59,225.00
Housing Navaigator 1 $ 103,000.00
Senior Management Analyst 0.25 $ 22,484.00
Salaries Subtotal $ 264,431.00
Employee Benefits @ 26% $ 68,752
Subtotal Salaries & Employee Benefits $ 333,183.06
Operating Costs
Direct Client Assistance $ 5,000.00
Hotel Vouchers $ 25,000.00
Program Supplies (hygiene kits) $ 2,500.00
Office Supplies, Postage, Printing $ 500.00
Uniforms $ 2,500.00
Telephone/Communications $ 1,200.00
Transportation $ 6,000.00
Case Management Software $ 24,720.00
GIS Software Subsciption $ 6,350.00
Client Transportation $ 2,500.00
Operating Costs Subtotal $ 76,270.00
Total Cost $ 409,453.06

CA HCD Permanent Local Housing Allocation (PLHA) Grant Program – Formula Funding Component
CITY OF MONTEBELLO’S PLHA EXPENDITURE PLAN FOR THE
2019-2023 ALLOCATIONS

4. MONTEBELLO’S PLAN TO SPEND PLHA FORMULA FUNDS: (See list on next page of eligible PLHA formula activities; source: 2022 Notice of Funding Opportunity, pp. 7-9) 1) Rental assistance for up to six months for homeless persons and low-income older adults in Montebello (i.e., persons below 30% of Area Median Income – below $21,407).  The City estimates it will be able to provide rental assistance to 19 persons during Years 1-3. (see Eligible Activity 6b, next page).
2) Operating Support for the Montebello Community Assistance Program (MCAP). MCAP provides street outreach and supportive case management services to assist homeless persons in acquiring employment, housing, and other needed services.
 The City estimates that MCAP will provide services for 245 homeless persons during Years 1-3 (see Eligible Activity 6c, next page).
3) Capital Reserves for Services Related to Permanent Supportive Housing. PSH is long-term leasing or rental assistance and supportive services for the chronically homeless and persons with disabilities (i.e., persons below 30% of Area Median Income).  The City estimates that funding for PSH will serve 120 households during Years 4-5 (see Eligible Activity 5, next page).

3. MONTEBELLO’S PLHA FORMULA ALLOCATIONS: TOTAL (Estimated): $1,900,548 • 2019 allocation: $316,758 (can be claimed now) • 2020 allocation: $492,340 (can be claimed now) • 2021 allocation: $541,805 (can be claimed now) • 2022 and 2023 allocations: $549,645 (can be claimed in FUTURE call for projects)

1. BACKGROUND: In 2017, Governor Jerry Brown signed a 15-bill housing package aimed at addressing the state’s housing shortage and high housing costs. TheBuilding Homes and Jobs Act (SB 2, 2017), established a $75 recording fee on real estate documents to increase the supply of affordable homes. 70% of the fees collected fund the PLHA Program, which is administered by the California Department of Housing and Community Development (CA HCD) See: https://www.hcd.ca.gov/grants-funding/active-funding/plha.shtml

2. PURPOSE OF PLHA FORMULA FUNDS: Provide a permanent source of funding to all local governments to:
• Increase the supply of housing for households at or below 60% of area median income • Increase assistance to affordable owner-occupied workforce housing • Assist persons experiencing or at risk of homelessness • Facilitate housing affordability, particularly for lower-and moderate-income households • Promote projects and programs to meet the local government’s unmet share of regional housing needs allocation
• Ensure geographic equity in the distribution of the funds Update 9/27/22 Page 1

5. ELIGIBLE ACTIVITIES: PLHA funds allocated to eligible Applicants must be used to carry out one or more of the eligible activities listed below. All activities must be provided within the county containing the Local government recipient and must be consistent with the Housing Element. (See 2022 Notice of Funding Opportunity, p. 7-9)

1. The predevelopment, development, acquisition, rehabilitation, and preservation of multifamily, residential live- work, or rental housing that is Affordable to extremely low-, very low-, low-, or Moderate-income households (up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High-cost areas, see appendix B fora list of High- cost areas, including necessary Operating subsidies). Note: Predevelopment and/or acquisition must result in the development, rehabilitation, or preservation of housing, as otherwise there is no actual housing outcome of the predevelopment or acquisition assistance.

2. The predevelopment, development, acquisition, rehabilitation, and preservation of Affordable rental and ownership housing, including Accessory Dwelling Units (ADUs), that meets the needs of a growing workforce earning up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High-cost areas. ADUs shall be available for occupancy for a term of no less than 30 days. See Appendix B for a list of High-cost areas in California. Note:

Predevelopment and/or acquisition must result in the development, rehabilitation, or preservation of Affordable rental and ownership housing, as otherwise there is no actual housing outcome of the predevelopment or acquisition assistance.

3. Matching portions of funds placed into Local or Regional Housing Trust Funds. Matching funds must be utilized as required by PLHA guidelines Section 301(a).

4. Matching portions of funds available through the Low- and Moderate-Income Housing Asset Fund pursuant to subdivision (d) of HSC Section 34176. Matching funds must be utilized as required by PLHA guidelines Section 301(a).

5. Capitalized Reserves for Services connected to the preservation and creation of new Permanent Supportive Housing (up to 30 percent of AMI).

6. Assisting persons who are experiencing or At risk of homelessness in conformance with 24 Code of Federal
Regulations (CFR Section 578.3), (up to 30 percent of AMI), including a. Rapid rehousing in conformance with federal rules contained in 24 CFR Section 576.104, except for legal services; b. Rental assistance with a term of at least six (6) months (rental arrears is not eligible); c. Street outreach, and other supportive/case management services in conformance with federal rules contained in 24 CFR Section 576.101 that allow people to obtain and retain housing; d. Operating and capital costs for navigation centers and emergency shelters, and the new construction, rehabilitation, and preservation of permanent and transitional housing.

7. Accessibility modifications in Lower-income Owner-occupied housing (up to 80 percent of AMI).

8. Efforts to acquire and rehabilitate foreclosed or vacant homes and apartments (up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High- cost areas).

9. Homeownership opportunities, including, but not limited to, down payment assistance to those earning up to 120 percent of Area Median Income (AMI), or 150 percent of AMI in High-cost areas.

10. Fiscal incentives made by a county to a city within the county to incentivize approval of one or more Affordable housing projects, or matching funds invested by a county in an Affordable housing development project in a city within the county, provided that the city has made an equal or greater investment in the project.

Update 9/27/22 Page 2

ITEM # 11

CITY OF MONTEBELLO

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA STAFF REPORT

TO:

Honorable Mayor and City Council Members
FROM:

René Bobadilla, P.E., City Manager
BY:

Nick Razo, Director of Human Resources
SUBJECT: AUTHORIZATION TO ISSUE A REQUEST FOR PROPOSALS (RFP NO. 23-3) FOR EMPLOYEE BENEFITS INSURANCE BROKER SERVICES

DATE: October 12, 2022

RECOMMENDATION(S):

It is recommended that the City Council:

1) Approve issuing an Employee Benefits Insurance Broker Services Request for Proposal, No. 23- 3 (RFP No. 23-3); and

2) Take such additional, related, action that may be desirable.

FISCAL IMPACT:

There is no fiscal impact related to issuing RFP No. 23-3 for Employee Benefits Insurance Broker Services (see Attachment “A”). Once a Broker is selected for award, the City Council will be requested to approve an agreement and amend the Fiscal Year 2022-23 Budget if needed.

BACKGROUND:

The City of Montebello, Human Resources Department, is soliciting proposals from highly qualified insurance brokerage firms (Broker) to provide employee benefits broker and consulting services. The City currently has approximately 400 active employees and 200 retirees enrolled in multiple group benefit plans. The City is particularly interested in a broker who can offer creative and innovative approaches to benefit plans, with a proven

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF OCTOBER 12, 2022

track record that allows the City to maintain quality programs and contain or reduce costs.

The selected Broker will perform a full range of benefit program services related to the acquisition, implementation, maintenance, communication, and improvement of the City's employee insurance benefits – to active employees and retirees.

The selected Broker shall provide services including, but not limited to:

 Partnering with the City to design and develop a short and long-range benefits strategy plan.
 Provide subject matter expertise and support related to current programs including dental and vision insurance plans, short and long-term disability, and Employee Assistance Program (EAP) benefits.
 Research and present considerations for other programs, such as voluntary/ancillary benefits.
 Review employee cost sharing annually and recommend changes based on strategies that drive value and maintain a competitive position.  Review and report claims activity and provide recommendations for managing costs.
 Negotiate annual renewals with all insurance vendors.  As needed, prepare bid specifications and solicit proposals from insurance markets that specialize in group insurance plans. Evaluate bids and bidders, including administration, claim payment procedures, customer service, network, reserve establishment policies, financial soundness, and identify the most cost- beneficial package from among the various bidders.
 Review all plan contracts and summary plan descriptions.  Assist with the creation of customized enrollment guides, plan summaries, and materials for open enrollment, new hires, and recruiting.  Assist with the development of benefits presentations and announcements and conducting open enrollment meetings.

Once RFP No. 23-3 is approved, the notice inviting proposals will be published using Planetbids.com, Montebelloca.gov, and the Wave Newspaper, beginning October 13, 2022. All bids will be submitted through the Planetbids.com platform. The due date for all proposals will be November 17, 2022. It is anticipated that a Broker will be selected in December, with an award of a professional services agreement brought before the City Council for consideration shortly thereafter.

ENVIRONMENTAL IMPACT:

There is no environmental impact.

ANALYSIS:

The Human Resources Department requests authority to issue RFP No. 23-3, to provide employee benefits broker and consulting services.

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF OCTOBER 12, 2022

A selection process will be used to evaluate proposals based on various qualitative components and award an agreement based on a combination of price and qualitative considerations. Qualitative considerations include a management plan, quality of proposed personnel, qualifications and experience, and technical approach.

Proposals will be evaluated based on the basis of the following qualitative and quantitative factors with the weighted value set forth below:

DISCUSSION:

N/A

SUMMARY:

Staff recommends that the City Council approve issuing RFP No. 23-3, attached hereto in substantial form, for Employee Benefits Insurance Broker Services; and direct staff to take such additional related, action that may be desirable.

ATTACHMENT(S)

1. Attachment A - Request for Proposal (RFP) No. 23-3

NEXT STEPS:

N/A

City of Montebello
REQUEST FOR PROPOSAL (RFP) No. 23-3

EMPLOYEE BENEFITS INSURANCE BROKER SERVICES
October 13th, 2022

ONLINE PROPOSAL SUBMITTAL ONLY THROUGH PLANET BIDS
NOTE: Updates, changes, or addendums to the RFP are posted at:
https://www.planetbids.com

RFP No. 23-3
2 City of Montebello

TABLE OF CONTENT
Section Page(s)
INTRODUCTION 4
COVER LETTER 5
TIMETABLE & SCHEDULE OF EVENTS 6
PROPOSAL SUBMISSION CHECKLIST 7
SECTION 1 - INSTRUCTIONS TO PROPOSERS 8
Proposal Format and Submittal
Examination of Proposal Documents
SECTION 2 - GENERAL TERMS AND CONDITIONS 9-16 Addenda
Clarifications
Discrepancies and Misunderstandings
Withdrawals of Proposal
References
Proposal Signatures
Pre Contractual Expenses
City of Montebello Rights
Licensing, Permits, and Taxes
Responsibility for Compliance with Legal Requirements
Confidentiality and Public Record
Joint Offers
Company Personnel
Single Proposal Response
Protest Procedures
Incorporation of Proposal into Agreement
Time of Completion
Payment
Contract Documents
Scope of Contract
Performance of Work
Award of Contract
Point of Contact
Evaluation of Proposals
Proposal Evaluation Criteria
SECTION 3 - QUALIFICATIONS 17 SECTION 4 - SCOPE OF WORK 18-19 SECTION 5 - FORM OF CONTRACT (SAMPLE) 20- 30

RFP No. 23-3
3 City of Montebello
SECTION 6 - FORMS AND CERTIFICATIONS 31-40 Letter of Transmittal
Exhibit A - Indemnification and Hold Harmless Agreement and Waiver of Subrogation and Contribution
Exhibit B – References
Exhibit C – Insurance
Exhibit D – Cost Proposal Sheet
Exhibit E – Bidder’s List of Subcontractor (DBE and Non- DBE)

RFP No. 23-3
4 City of Montebello

INTRODUCTION
The City of Montebello (City) is soliciting proposals from highly qualified insurance brokerage firms (Broker) to provide employee benefits broker and consulting services.

The City currently has approximately 400 active employees and 200 retirees enrolled in group benefit plans.

The City is particularly interested in a Broker that can provide creative and innovative approaches, with a proven track record, that enable the City to maintain quality programs and contain or reduce costs. The selected Broker will perform a full range of benefit program services related to the acquisition, implementation, maintenance, communication, and improvement of the City's employee insurance benefits.

The selected Broker shall provide services including, but not limited to:
Partnering with the City to design and develop a short and long-range benefits strategy plan. Provide subject matter expertise and support to current programs including dental and vision insurance plans, short and long-term disability, and Employee Assistance Program (EAP) benefits. Research and present considerations for other programs, such as voluntary/ancillary benefits. Review employee cost sharing annually and recommend changes based on strategies that drive value and maintain a competitive position.
Review and report claims activity and provide recommendations for managing costs. Negotiate annual renewals with all insurance vendors.
As needed, prepare bid specifications and solicit proposals from insurance markets that specialize in group insurance plans. Evaluate bids and bidders, including administration, claim payment procedures, customer service, network, reserve establishment policies, financial soundness, and identify the most cost-beneficial package from among the various bidders. Review all plan contracts and summary plan descriptions. Assist with creating customized enrollment guides, plan summaries, and materials for open enrollment, new hires, and recruiting.
Assist with developing benefits presentations and announcements, and conducting open enrollment meetings.

RFP No. 23-3
5 City of Montebello
DATE: October 13, 2022
ATTENTION:PROSPECTIVE PROPOSERS
SUBJECT:REQUEST FOR PROPOSAL NO. 23-3
TITLE: CITY OF MONTEBELLO

BENEFIT INSURANCE BROKER SERVICES
The City of Montebello (City) is soliciting proposals from highly qualified insurance brokerage firms (Broker) to provide employee benefits broker and consulting services.

All correspondence, communications, and contact concerning any aspect of this solicitation or offers shall be with the following person [or his designated representative if applicable] only.

Name: Rohan Anderson
Title: Senior Procurement Analyst
Address: 400 S. Taylor Ave.

Montebello, CA 90640
Telephone: (323) 558-1625 ext.104
E-mail: [email protected]
Only substantive inquiries will receive a response. All substantive questions submitted in writing as outlined below will receive a response in accordance with the guidelines contained herein. Responses will be provided in writing to all prospective proposers and posted on the City’s website. Responses to questions or comments regarding Request For Proposal, No. 23-3 (RFP No. 23-3), provided by any other department or employee, other than the contact person set forth above shall not be considered valid and the City will not be bound by any such comments or responses. Inquiries received via telephone or orally in person will not receive a response.

Proposals must be received by Thursday, November 17, 2022, 3:00 PM Pacific Standard Time and submitted in accordance with the instructions contained in RFP No. 23-3. No exceptions will be granted regardless of reason or circumstances.

All proposals must contain an original signature by an authorized officer of the company.

The successful proposer will be required to comply with all applicable Equal Opportunity Laws and Regulations. The City hereby notifies all prospective proposers that the City will require that each proposer affirmatively demonstrate that Disadvantaged Business Enterprises are afforded full opportunity to participate in the performance of contracts and subcontracts financed in part or whole under RFP No. 23- 3, and will not be discriminated against on the grounds of race, color, gender, age, or national origin in consideration for an award.

The City reserves the right to reject any or all proposals, to accept all or any part of any proposal, to waive any informality or minor irregularities in any proposal received to the extent permitted by law and where such action best serves the interest of the City, and to be the sole judge of the merits of the respective proposal received.

RFP No. 23-3
6 City of Montebello
The City is committed to ensuring that no person is excluded from participation in, or denied the benefits of its programs and/or services based on race, color, or national origin in accordance with Title VI of the Civil Rights Act of 1964, as amended ("Title VI").

Any person who believes he or she has been subjected to discrimination under Title VI can file a complaint with the City. For more information on City’s Civil Rights Program, and the procedures to file a complaint, contact:

Name: Nicholas Razo
Title: Director of Human Resources
Address: 1600 W. Beverly Blvd
Montebello, CA 90640
Telephone: (323) 887-1200
You may also contact the Federal Coordination and Compliance Office, Civil Rights Division at the Title VI Hotline: 888-TITLE-06 (888-848-5306) or send a letter to:

U.S. Department of Justice
Civil Rights Division
Federal Coordination and Compliance Section, NWB
950 Pennsylvania Avenue, N.W. Washington, D.C. 20530
More information on Title VI is available from the Justice Department online at www.justice.gov

TIMETABLE & SCHEDULE OF EVENTS
Scheduled Tasks Scheduled Date
Issuance of RFP Thursday October 13, 2022
Deadline to Submit Questions Thursday October 27, 2022 at 3:00 PM PST Responses to Questions Provided Tuesday November 1, 2022 Deadline to Submit Proposals Thursday November 17, 2022 at 3:00 PM PST Presentations & Intent to Award Week of December 11, 2022

RFP No. 23-3
7 City of Montebello

PROPOSAL SUBMISSION CHECKLIST
This checklist must be completed and returned with the proposal. Failure to return this checklist may be cause for considering the proposal non-responsive.

Description Section/
Page
Proposer shall
initial here
1 Proposal Page # 8
2 Letter of Transmittal Page # 31
3 Licensing, Permits, Certificates, and Taxes Page # 11 4 Indemnification and Hold Harmless Agreement and Waiver of Subrogation and Contribution
Exhibit A
5 References Exhibit B
6 Insurance Exhibit C
7 Cost Proposal Sheet Exhibit D
8 Bidder’s List of Subcontractor (DBE and Non-DBE) Exhibit E

OPTIONAL ITEMS
9 Requests for exceptions or deviations. Page # 8
Company Name:

Name of Proposer initialing document (print):

The email address of Company Contact:

Signature:

Title:

Date:

RFP No. 23-3
8 City of Montebello
SECTION 1 - INSTRUCTIONS TO PROPOSERS

PROPOSAL FORMAT AND SUBMITTAL
Proposals can be submitted via the PlanetBids.com Portal (accessed through the official City website at http://www.cityofmontebello.com/rfp-bids/bid-opportunities.html) up to the hour of 3:00 p.m. on Thursday, November 17, 2022.

All proposals must contain an original signature by an authorized officer of the company. Proposals received after the above-listed date and time will not be considered.

Proposals shall not include a photocopy of the following:
· INSTRUCTIONS TO PROPOSERS
· QUALIFICATIONS
· SCOPE OF WORK
Proposals shall be typed, single-spaced, and submitted on 8 1/2“x11” paper. Proposals shall not include any unnecessarily elaborate or promotional material. Proposals may not be modified or corrected after being opened unless an addendum is issued requesting resubmissions. Proposals will not be valid until all information has been verified and the proposers references have been checked. All proposals shall be accompanied by a completed and signed Letter of Transmittal provided as a part of this Request for Proposal (RFP).

All requests for exceptions or deviations as a result of this RFP shall be identifiable by a separate section of the proposer’s submitted proposal for review by the City. It shall be the City’s right to accept or reject any portion of the submitted requests.

Proposals shall be submitted in accordance with the form prescribed herein. Failure to respond in this manner may render the proposal non-responsive. Unauthorized conditions, limitations, or provisions attached to a proposal will render the proposal non-conforming and non-responsive and may cause its rejection. The completed proposal shall be without interlineations, alterations, or erasures. A proposer submitting a basic conforming proposal may choose to submit alternate proposals as complete and separate offers if the alternate proposal offers technical or other improvements or modifications, which are to the overall benefit to the City. All alternate proposals must be submitted in writing and included with the original proposal, conforming to the requirements as stated herein. No verbal modifications will be accepted.

Proposal documents shall be deemed to include by reference each one of the following:

1. Request for Proposal (RFP)

2. Addenda to RFP

3. Supplements to RFP

4. All other required forms

EXAMINATION OF PROPOSAL DOCUMENTS
By submitting a proposal, the proposer represents that: (1) Proposer has thoroughly examined and become familiar with the Scope of Work required under RFP No. 23-3, (2) Proposer comprehends all conditions that may impact the proposal, (3) Proposer has reviewed all addenda, and (3) Proposer is

RFP No. 23-3
9 City of Montebello
capable of providing the equipment, goods, and services necessary to perform the Scope of Work and/or meet the specifications outlined in RFP No. 23-3, in a manner that meets the City’s objectives. Failure to examine the documents and inform itself shall be at the proposers’ own risk. A proposer shall have no claim against the City based upon ignorance of or misunderstanding of the RFP documents. Once the award has been made, failure of a proposer to have read all of the conditions, instructions and the agreement shall not be cause to alter any term of the agreement nor shall such failure provide valid grounds for a proposer to withdraw its proposal or to seek additional compensation.

SECTION 2 – GENERAL TERMS AND CONDITIONS

ADDENDA
Any changes made by the City to the requirements in RFP No. 23-3 will be made by written addenda. Any written addenda issued to this RFP shall be incorporated into the terms and conditions of any resulting Agreement. The City will not be bound by any modifications to or deviations from the requirements outlined in this RFP as the result of oral instructions. The City reserves the right to revise or withdraw this RFP at any time and for any reason.

CLARIFICATIONS
Should a proposer require clarifications of this RFP, the proposer shall notify the contact person identified in this RFP in writing. Should the City, in its sole discretion, determine that the point in question is not clearly and fully set forth; the City will issue a written addendum clarifying the matter. The aforesaid addendum shall be posted on the www.PlanetBids.com web page.

All questions, clarifications, or comments must be submitted to or no later than 3:00 pm, Thursday, October 27, 2022. No questions will be answered individually by the City or the Human Resources Department.

Requests for clarification, questions, and comments must be posted on the PlanetBids.com Q & A section.

The City is not responsible for failure to respond to a request that has not been submitted in accordance with this section.

Responses by the City to the clarifications, comments, and questions will be communicated via PlanetBids.com. Every attempt will be made to respond to all proposers in accordance with the procurement schedule for RFP No. 23-3. Inquiries received after the deadline will not be accepted and will be returned to the sender without a response.

Requests for clarifications and questions should be formatted in the following manner:

1. Section

2. Paragraph number

3. Page number

4. Text of passage being questioned

5. Question

RFP No. 23-3
10 City of Montebello

DISCREPANCIES AND MISUNDERSTANDINGS
Proposing Brokers must satisfy themselves by personal examination of any worksite, drawings, Scopes of Work, and by any other means as they may believe necessary, as to the actual physical conditions, requirements, and difficulties under which the work must be performed. No proposing Broker shall at any time after submission of the proposal, make any claim or assertion that there was any misunderstanding or lack of information regarding the nature or amount of work necessary for the satisfactory completion of the job. Any errors, omissions, or discrepancies found in any plans, specifications, or other documents provided, shall be called to the attention of the Broker and clarified before the submission of proposals.

WITHDRAWAL OF PROPOSALS
Proposers may withdraw their proposals in writing, provided that such requests are received by the City before the scheduled deadline for proposal submission or within six months following the scheduled deadline for proposal submission when no contract has been awarded.

REFERENCES
All reference information requested in this RFP and specified in the form included in this RFP must be submitted with the proposal. Refer to Exhibit B.

At the discretion of the Evaluation Committee, the City may elect to perform site visits at the proposer’s customer locations. These optional site visits will be in addition to any presentations and/or technical demonstrations. Some or all RFP Evaluation Committee members would travel, at City expense, to sites at which finalist proposers are performing like services. The purpose of such visits shall be to provide the evaluation team with an increased understanding of the process and assess the proposer’s implementation and performance.

PROPOSAL SIGNATURES
If an individual makes the proposal it shall be signed and the full name and address of the proposer shall be given.

If a partnership makes the proposal, it shall be signed with the partnership name, by a member of the partnership who shall sign by name and the name and address of each partner shall be given.

If a corporation prepares the proposal, the name of the corporation shall be provided and signed by two (2) duly authorized officers and, if available, stamped with the corporate seal, and the names and titles of all officers of the corporation shall be given. If a corporation provides a certified letter stating that one (1) duly authorized officer signature is binding for the corporation, this will suffice to omit the second signature requirement in the proposal. A certified letter is to be included in the proposal accompanied by the Letter of Transmittal.

PRE-CONTRACTUAL EXPENSES
The City will be under no obligation for payment of pre-contractual expenses. Pre-contractual expenses are defined as expenses incurred by proposer in:
· Preparing the Proposal in response to this request
· Submitting that Proposal to the City

RFP No. 23-3
11 City of Montebello
· Negotiating with the City any matter related to this Proposal, and/or · Any other expenses incurred by the Proposer before the date of the award

CITY OF MONTEBELLO RIGHTS
In its discretion, the City reserves the right to:

1. Reject any and/or all proposals for no reason or any reason including, but not limited to the following:
a. The Proposal is incomplete, non-responsive, obscure, irregular, or lacking necessary detail and specificity.
b. The Proposer, in the sole judgment of the City, lacks the qualifications, experience, and/or responsibility necessary to provide the services.
c. The Proposer failed or neglected to complete and submit any information within the time specified by the City, and as may be otherwise required herein.

2. Reject any proposal that, in the City’s opinion, is so unbalanced in comparison to other proposals received and/or to the City’s internal estimates that it does not accurately reflect the cost to perform.

3. Accept all or any part of a proposal.

4. Cancel the entire RFP;

5. Issue subsequent RFPs;

6. Waive any errors or informalities in any proposal, to the extent permitted by law.

LICENSING, PERMITS, AND TAXES
The proposer shall be appropriately licensed in accordance with the laws of the State of California for the work to be performed. The cost for any required licenses and/or permits shall be the responsibility of the successful Proposer. The successful proposer is liable for all taxes due as a result of the contract.

RESPONSIBILITY FOR COMPLIANCE WITH LEGAL REQUIREMENTS
The proposer’s products, services, and facilities shall be in full compliance with all applicable Federal, State, and local regulations, standards, and ordinances, regardless of whether or not they are referred to in the RFP.

CONFIDENTIALITY AND PUBLIC RECORD
All proposers are hereby put on notice that each proposal received shall become the exclusive property of the City and, unless the City’s prior written agreement to maintain all or part of a proposal confidential as a trade secret is first obtained, each proposal shall be subject to disclosure according to the California Public Records Act and/or the Federal Freedom of Information Act. The City shall not in any way be liable or responsible for the disclosure of any proposals or portions thereof absent such agreement; nor shall such agreement preclude the City from disclosing any proposal or portion thereof where such disclosure is required by law.

JOINT OFFERS
Where two or more proposers desire to submit in response to this RFP, they shall do so on a prime-sub consultant basis rather than as a joint venture. The City intends to contract with a single firm and not with multiple firms doing business as a joint venture. Any proposal submitted on behalf of any form of a joint

RFP No. 23-3
12 City of Montebello
venture or partnership between two (2) existing proposers may be considered collusive and may be rejected as non-responsive.

COMPANY PERSONNEL
It shall be the burden of the successful proposer to ensure all personnel possesses qualifications and/or experience. All personnel required in performing the services herein shall be secured at the expense of the successful proposer. Personnel shall not be employees of or have any contractual relationship with the City. Successful proposer’s personnel shall conduct themselves in a professional manner to all City employees at all times. Rude or discourteous behavior by the successful proposer will not be tolerated and the offense can be justification for termination of the contract. All sub-consultants of successful proposer shall abide by all the requirements outlined in this section.

SINGLE PROPOSAL RESPONSE
If only one proposal is received in response to this RFP, a detailed cost/price proposal may be requested of the proposer. A cost or cost and price analysis and evaluation and/or audit of the cost may be performed to determine if the price is fair and reasonable. If the City determines a cost analysis is required, the proposer must be prepared to provide, upon request, cost summaries of estimated costs (i.e. labor, equipment, supplies, overhead costs, etc.) and documentation supporting all cost elements.

PROTEST PROCEDURES
All protests must be filed in accordance with the following:

1. The protest must be in writing and identify the solicitation number (RFP).

2. The protest must be submitted by some return receipt method or guarantee of delivery that ensures that the protest was received promptly. The City is not responsible for lost or delayed deliverables.

3. The party’s standing to protest must be identified.

4. Identification of the specific provision, law, regulation, specification, procedure, or policy violated.

5. A statement of the relief requested.

Protests related to the content of the RFP shall be received no later than ten (10) days before the proposal due date; or within five (5) days after proposal opening. If the protest does not comply with the preceding requirements it may not be evaluated and may be returned to the protestor.

All protests shall be submitted to the contact person identified in this solicitation.

INCORPORATION OF PROPOSAL INTO AGREEMENT
This RFP and the proposer’s response, including all promises, warranties, commitments, and representations made in the successful proposal, shall be binding and incorporated by reference in the City’s contract with the successful proposer.

TIME OF COMPLETION
The Broker time shall commence from the date provided on the Notice to Proceed (NTP) as authorized in writing by the City. The services shall be completed within the period specified in the RFP. In case the services under the terms of these provisions and related purchase contract shall be necessarily delayed

RFP No. 23-3
13 City of Montebello
because of a strike, injunctions, government controls, or by reasons of any cause or circumstances beyond the control of the Broker, the time of completion shall be extended by a number of days to be determined in each instance by mutual agreement between the Broker and the City.

PAYMENT
A separate invoice, referencing the respective purchase order number, shall be issued in duplicate for each invoice shown in the payment schedule, and addressed to the City of Montebello, Attn: Accounts Payable, 1600 West Beverly Boulevard, Montebello, California, 90640.

Payment will be made within thirty (30) days after acceptance and approval of the invoice.

Payment Schedule: Monthly
Provide (1) One invoice monthly.

CONTRACT DOCUMENTS: ORAL CHANGES / CONTRACT TERMINATION Oral Changes: Oral changes and oral change orders are not permitted. All proposed changes must be submitted in writing to, and approved by, the City prior to becoming a Contract modification.

Contract Termination: The City may terminate any resulting agreement for convenience at any time by giving the Broker written notice thereof. Upon termination, the City shall pay the Broker the allowable cost incurred to the date of termination, and those costs deemed reasonably necessary by the City to effect such termination, determined in accordance with Part 1-8.705-1 of the Federal Procurement Regulations (41CFR 1-8) or other applicable portion(s) of said Regulations. In addition, the City shall pay the Broker a percentage of the project, which relates to work accomplished to date of termination in accordance with the agreement. The effective date of termination shall be the date of Notice of Termination.

In the event the Broker breaches the terms or violates the conditions of the Contract, and does not within ten days, thereafter, cure such breach of violation, the City may immediately terminate the agreement for default. The Broker shall be liable for any and all costs incurred by the City as a result of such default.

SCOPE OF CONTRACT
The Broker shall provide all services necessary as per the Scope of Work described in this RFP.

PERFORMANCE OF WORK
It is the intent of these specifications to provide only services of the highest quality. The cost to be quoted and submitted shall include all items of service and any other costs necessary to fully complete the work according to the provisions. It is the aim of these specifications that the Broker provides complete services of the type prescribed. Any items omitted from such specifications that are necessary for the completion of such services shall be considered a portion of such services, although not directly specified or called for in these specifications. No advantage shall be taken by the Broker in the omission of any detail which goes to make the services complete, even though such detail is not mentioned in these specifications.

RFP No. 23-3
14 City of Montebello

AWARD OF CONTRACT
The agreement resulting from this RFP will be awarded to the responsive and responsible proposer whose proposal, conforming to the requirements of RFP No. 23-3, is determined to be the most advantageous (“Best Value”) to the City, based on the Evaluation Criteria. No agreement shall exist until the City Council or the City Manager has awarded the agreement and it has been mutually executed. The City reserves the right to:
(a) Accept all or any part of a proposal;
(b) Reject any or all proposals for any reason;
(c) Waive any informality or minor errors to the extent permitted by law; (d) Award the Agreement as the interest of the City may require; (e) Cancel the entire RFP; or
(f) Issue subsequent RFP’s.

An Evaluation Committee comprised of City staff in accordance with the Proposal Evaluation Criteria set forth in the Evaluation Criteria section of this RFP, will evaluate all the proposals. During the evaluation period, the City may interview some or all the proposing firms. Proposers should be aware; however, that award may be made without interviews or further discussions.

The City may negotiate contract terms with the selected proposer prior to award, and expressly reserves the right to negotiate with several proposers simultaneously and, thereafter, to award an agreement to the proposer offering the most favorable terms to the City. However, negotiations may or may not be conducted with proposers; therefore, the proposal submitted should contain the most favorable terms and conditions, since the selection and award may be made without discussion with any proposer.

No agreement shall exist until the City Council or City Manager has awarded the agreement and it has been mutually executed. The City reserves the right to reject any and all proposals for any reason, to waive any informality or minor errors as determined by the City in any proposal and to award the agreement as the best interests of the City may require. The award, if any, may be made by the City within ninety (90) calendar days after the opening of the proposals.

Point of Contact
This RFP is issued by the City, and the Senior Procurement Analyst will be the sole point of contact (“Point of Contact”) during the RFP submission and procurement process. Communications initiated by respondents to this RFP with members of the City Council, or officers, personnel or employees of the City, other than as coordinated by the Point of Contact, may be grounds for disqualification. Any inquiries or requests during this submission or procurement process shall be submitted in writing to the following Point of Contact:

City of Montebello
Attention: Rohan Anderson,
Senior Procurement Analyst
400 South Taylor Ave.

Montebello, CA 90640
(323) 558-1625 ext. 104
Email: [email protected]

RFP No. 23-3
15 City of Montebello
If the Point of Contact determines a response to any such inquiry is warranted, said response will be issued to all prospective proposers via www.PlanetBids.com.

EVALUATION OF PROPOSALS
The City uses a selection process in which proposals contain both price and qualitative components, and award is based upon a combination of price and qualitative considerations. Qualitative considerations may include experience and qualifications, technical approach, quality of proposed personnel, and/or management plan. The award selection is based upon consideration of a combination of technical and price factors to determine the offer deemed most advantageous to the City.

An Evaluation Committee will be appointed to review all proposals. The committee will be comprised of City staff. Committee members will initially evaluate each proposal using the pass or fail criteria identified herein. Proposers who pass this first stage of testing will progress to the next step in the evaluation.

The City will evaluate the offers based on the following criteria: Pass/Fail Criteria Proposer has demonstrated the ability to meet the insurance requirements described in the Agreement. Proof of ability, for example a sample certificate with another agency, or a statement that proposer can meet the insurance requirements in the RFP should be attached to proposal. Proposer has demonstrated evidence of good standing. If the Proposer is a corporation or limited liability company, provide evidence that it is in good standing in the state of its incorporation/organization and qualified to do business in California. If the proposer is a partnership or joint venture, provide such evidence for all partners or members. Evidence provided must be in the form of (i) an official certificate of good standing issued by the state of incorporation/organization and (ii) qualification to do business issued by the California Secretary of State. If the proposer is operating under a fictitious name or trade name, provide evidence that the proposer has filed for and/or registered the fictitious name with the county where the proposer’s business is located.

On the completion of the initial Pass/Fail review, the committee will evaluate proposals using the two- step process. Qualitative considerations will be reviewed and scored first without attention to the price.

The committee will then open the cost and price proposals and evaluate and score them accordingly.

During the qualitative evaluation, the committee, at its sole discretion may contact any or all the Proposers with specific questions or requests for clarification. After both the qualitative and cost/price proposals have been evaluated and scored, the committee will arrive at a “comprehensive proposal score” for each proposal. A list of top-ranked proposals within a competitive range will be developed based upon the total comprehensive scores provided by committee members. At this time, the committee may decide that the evaluation process is complete and submit a final recommendation to the Director of Human Resources.

The committee may ask the proposers to consider the dialog of negotiations and revise their proposals. A deadline will be set for the submission of the revised proposals. If a proposer is unable to meet the deadline or chooses not to revise its proposal, its existing proposal will be rescored along with revised proposals in the same manner as the original proposals.

RFP No. 23-3
16 City of Montebello

EVALUATION CRITERIA
Award will be made to the proposer whose proposal offers the best value to the City. Proposals that meet the pass/ fail criteria now will be evaluated in accordance with the following criteria:

Qualitative Considerations
The Broker’s qualitative proposal will be evaluated on the basis of the following factors, each having the weighted value set forth below:
1 Project Management Plan
The proposal shall contain a detailed explanation of the project and not a reiteration of the RFP itself. The information offered should be a compendium of the proposer’s knowledge of the standards outlined in the Scope of Work. 10 points
2 Proposed Project Team
Qualifications and experience of management and staff and other personnel; comprehensiveness of plan and team’s familiarity with the provision of employee benefits and insurance programs; evidence of the ability to provide service in a prompt, thorough, innovative, and professional manner; and adequacy of labor commitment.
15 points
3 Qualifications and Experience
Demonstrate experience completing employee benefits broker and consulting services projects of the same or similar magnitude; experience with creative cost containment methods; experience, reputation, and ability to reach a wide array of insurance markets and provide innovative services; record of completing work on schedule; strength and stability of the firm; presentation of a catalog of employee benefit broker experience and expertise most advantageous to the City. 25 points
4 Technical Approach
Understanding of the RFP requirements and illustrating the ability to meet performance objectives, compliance with all technical and administrative requirements, financial viability, accounting, and reporting. 30 points
TOTAL 80 points
Price Considerations
The Price proposals will be evaluated as follows:
5 Price
The proposer’s price proposal will be compared to the proposal with the best value to the City. The best value responsive price will receive the total weighted value for this criterion.
20 points
TOTAL 20 points
All other price proposals will be scored as follows:

Proposer Price Score = Best Price proposal x 20 (Total Points Available for Price Evaluation).

RFP No. 23-3
17 City of Montebello
SECTION 3 – QUALIFICATIONS

DESIRED QUALIFICATION
The proposer shall possess the capability and expertise required to complete the following tasks:

A. The proposer shall have experienced management staff, possessing comprehensive knowledge of benefits administration pertaining to public employers.

B. The proposer shall have at least three (3) consecutive years of experience in California providing broker and benefits consulting services to public or private entities. The firm shall have provided such services to jurisdictions whose service populations are similar in size and complexity to the City's.

C. The proposer shall have experience working with labor unions and advisory committees.

D. Utilize subject matter experts and deep industry knowledge to edit, create, execute, and/or update long and short-range plans designed to improve the effectiveness of employee benefits and insurance programs.

E. Demonstrate the ability to design traditional and multimedia content including surveys, presentations, spreadsheets, handouts, pamphlets, web content, audio recordings, and videos for internal and external stakeholders.

F. The proposer shall possess knowledge of applicable laws, regulations, and codes and shall be familiar with local conditions and trends relating to group insurance in California.

G. Provide accurate and professional cost estimates and expense projections for a variety of goods and services associated with the employee benefits insurance broker services.

H. Demonstrate strong communication and coordination skills with City staff and outside parties in a constructive solution-focused style.

To be considered responsive to the RFP, firms must demonstrate that they meet the following minimum qualifications by providing a thorough response and verifiable evidence of compliance. Non-compliance with these requirements may disqualify your proposal from further consideration.

A. List and describe a minimum of three (3) projects or experiences, similar in nature to the project contemplated in this RFP, which the proposer is currently performing or has performed within the last thirty-six (36) months.

B. The firm has not defaulted on a contract within the past five (5) years or declared bankruptcy or been placed in receivership or been denied credit within the past three (3) years.

C. The firm has not been assessed any penalties for non-compliance with any federal, state, local, city, or county labor laws and/or regulations within the past five (5) years.

D. The firm is currently not under investigation for any charge or claim for noncompliance with any federal, state, local, city, or county labor laws and/or regulations including, without limitation prevailing wage laws and apprenticeship laws.

E. Licensed to do business in the State of California. The firm can provide applicable Certifications (if required).

F. The firm possesses a professional staff with (5) years of knowledge and expertise to provide the Employee Benefits Broker and Consulting Services Project.

G. Financial capacity.

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18 City of Montebello
SECTION 4 – SCOPE OF WORK
The City is soliciting proposals from highly qualified Brokers to provide employee benefits broker and consulting services. The City is seeking a Broker to perform services related to the design, implementation, maintenance, communication, and improvement of employee benefits and insurance programs.

The Broker shall provide the services outlined in the Scope of Work, for a three-year (3-year) term with the option for renewal of up to two (2) additional one-year (1-year) terms.

The selected Broker shall provide services including, but not limited to:

Broker Services and Strategy:
· Health care benefits program development and management (i.e., Medical, Pharmacy, Dental, Vision, Life, Disability, Supplemental/Voluntary Benefits, Absence and Leave, FSA/HRA/HSA, COBRA)
· Semi-annual strategic planning meeting and development of multiyear approach · Annual budget renewal meeting, vendor scorecard, and stewardship · 48-point Service Calendar
· Carrier renewals, RFP’s and negotiation
· Benefit plan design and cost modeling
· Claims and utilization analysis
· Underwriting and actuarial services (IBNR)
· Alternative funding analysis
· Employee contribution modeling
· Wellness planning, and onsite clinic feasibility analysis · Benchmarking
Open Enrollment Support and Employee Communications:
· Establish a strategy for benefits, both annually and three to five years in the future. Consider trends, union negotiations, prospective legislations, and new delivery systems to make long- term projections
· Review and make cost-saving recommendations regarding the modification of plan design, benefit levels, premiums, communications, and quality of current employee and retiree benefit plans
· Recommend appropriate premium rates and reserves to maintain the viability of the plans to ensure that quality and cost-effective benefits are provided by the plans. · Annual estimates of renewal rates and cost trends and assist City staff in preparation of budget figures
· Conduct thorough and applicable market research in preparation for contract renewals. · Representation at Insurance Committee meetings on various topics, including, but not limited to, premiums, benefit levels and plan design, performance measures and guarantees, contractual terms and conditions, and quality assurance standards · Make recommendations for items of negotiation with providers, including, but not limited to, benefit levels and plan design, premiums, quality of service, performance measures and guarantees, and return on investment, where applicable

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19 City of Montebello
· Prepare specifications and compile data, obtain quotes and proposals, negotiate rates and analyze and compare proposals
· Review rate proposals to ensure underlying assumptions are appropriate and accurate to the City
· Provide communication development and support for the annual open enrollment period, new benefit offerings, and/or changes to the existing benefits offerings · Attendance at, and assistance with, coordination of Open Enrollment meetings Compliance:
· Assist the City to ensure that programs are in compliance with State and Federal regulations · Review and disseminate information to staff on new or revised State and Federal legislation that impacts benefits programs
· Provide on-site training to City staff, as needed, regarding regulatory updates and/or Best Practice seminars for the effective administration of benefits plan; non-discrimination testing · Annual Form 5500 data collection and filing
· Wrap Plan Document and Summary Plan Description
· Annual Legal Notices and Disclosure
· Assist City staff with annual audit to ensure compliance with all mandated reporting and posting/notice requirements for benefit plans
· Guided HR compliance via Mineral Platform
Technology and Tools:
· Online Decision support
· White glove concierge Navigation & Advocacy 24/7 support · Enrollment Mobile Application
· Benefits Search Engine
Other Service Requirements:
· Assist in the development and implementation of an employee wellness program to improve employee health and reduce employee health-care costs, both in the short-term and in the long-term
· Recommend and help develop enhancements and improvements for communications specific to the needs of the City's employees, including, but not limited to, brochures, pamphlets, matrices, comparison charts, summaries, electronic communications, forms, employee handbooks and employee orientation
· Provide timely research and responses to technical questions posed by City staff · Provide regular and timely communications needed for the effective administration of benefit plans
· Provide guidance and recommendations on items such as, but not limited to, trends in benefits plans, methods for improving cost containment, financial arrangements and administration
· Assist with the presentation content for labor and management benefits meetings and/or City Council meetings

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20 City of Montebello
· Provide access to published benefit-related survey information · Develop additional benefits communications specific to the needs of the City's employees. · Attendance at, and assistance with, meetings with the City Council, City staff and labor groups · Recommend that City staff attend particular broker-sponsored seminars, benefit events and educational forums that would be beneficial to the City · Develop and/or assist in developing and evaluating employee needs and satisfaction surveys SECTION 5 – FORM OF CONTRACT (SAMPLE)

PROFESSIONAL SERVICES AGREEMENT FOR

EMPLOYEE BENEFITS INSURANCE BROKER SERVICES
THIS AGREEMENT (“Agreement”) is made and entered into on …………………….., 2022, by the CITY OF MONTEBELLO, a municipal corporation (hereinafter referred to as “CITY”) and …………………………….. (Hereinafter referred to as “CONSULTANT”). CITY and CONSULTANT are sometimes referred to herein individual as a “Party,” and jointly as the “Parties.”

RECITALS
WHEREAS, CITY desires to retain a qualified professional consultant to provide Employee Benefit Broker and Consulting Services (“Project”); and
WHEREAS, CONSULTANT represents the degree of specialized expertise contemplated within California Government Code, Section 37103, and is qualified to perform such services by virtue of its experience and the training, education, and expertise of its principals and employees; and WHEREAS, no official or employee of CITY has a financial interest, within the provisions of Sections 1090 – 1092 of the California Government Code, in the subject matter of this Agreement; and WHEREAS, CONSULTANT responded to CITY’s Request for Proposal dated October 13, 2022 (RFP No. [23-3]), as such is set forth fully in Exhibit “A” hereto and incorporated fully herein by this reference (hereinafter “Consultant Proposal”).

NOW THEREFORE, in consideration of performance by the Parties of the covenants and conditions herein contained, the Parties hereto agree as follows:

SECTION 1. SERVICES / COMPENSATION.

A. CONSULTANT shall provide to CITY those services that are set forth fully in the Scope of Services, as such is set forth fully in Exhibit “A” hereto and incorporated fully herein by this reference (hereinafter “Professional Services”).

B. CONSULTANT shall complete the Scope of Services within the time set forth in the Schedule of Performance, as such is set forth in Exhibit “B” hereto and incorporated fully herein by this reference.

C. CONSULTANT shall be compensated a sum not-to-exceed $………………(the “Maximum Compensation”) for performance of the Professional Services as set forth in the

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21 City of Montebello
Schedule of Compensation attached hereto as Exhibit “C” and incorporated fully herein by this reference (“Compensation”). CONSULTANT shall provide an itemized billing statement to CITY each month for Professional Services performed. CONSULTANT shall not incur fees or costs which exceed the Maximum Compensation without the prior written consent of CITY.

D. CITY will be invoiced at the end of the first billing period following commencement of work and at the end of each billing period thereafter. Payment in full of an invoice must be received by CONSULTANT within thirty (30) days of the date of such invoice.

E. Work performed shall be deemed approved and accepted by CITY as and when invoiced unless CITY objects within fifteen (15) days of invoice date by written notice specifically stating the details in which CITY believes such work is incomplete or defective, and the invoice amount(s) in dispute. CITY shall pay undisputed amounts as provided for in the preceding paragraph.

F. Failure of CITY to submit full payment of an invoice within thirty (30) days of the date thereof subjects this agreement and the work herein contemplated to suspension or termination at CONSULTANT's discretion.

SECTION 2. TERM.

This Agreement shall commence on ………………, 2022 , and shall terminate upon completion of the Scope of Services set forth herein, unless terminated sooner as provided in Section 8 herein.

The Parties agree that Sections 4(B), 9, 10, 11, 13, 16, 17, 18, and 19 shall survive for three (3) years following the expiration or termination of this Agreement.

SECTION 3. CONTRACT DOCUMENTS.

For purpose of this Agreement, the contract documents for the aforesaid Project shall consist of (and are outlined in the following order of preference):

A. RFP No. 23-3;
B. Proposer’s [DATE] Proposal for the Citywide Employee Benefits Insurance Broker Services and all referenced specifications, details, and appendices (Exhibit “A” – “C”); C. All required bonds, insurance certificates, permits, notices, schedules, forms, certifications and affidavits; and
D. Any and all addenda or supplemental agreements clarifying, or extending the work contemplated as may be required to insure its completion in acceptable manner.

All of the provisions of said Contract Documents constitute a material part hereof and shall be hereby incorporated by reference as though fully set forth herein.

SECTION 4. PERFORMANCE.

A. CONSULTANT shall at all times, faithfully, competently, and to the best of its ability, experience and talent, perform all tasks described herein.

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22 City of Montebello
B. CONSULTANT shall employ, at a minimum, generally accepted standards and practices utilized by companies engaged in providing similar services, as are required of CONSULTANT hereunder, in meeting its obligations under this Agreement.

C. CONSULTANT shall be knowledgeable of and subject to all CITY ordinances, rules and regulations, standard operating procedures, and the supervisory chain of command.

D. CONSULTANT shall have the right to retain, subject to CITY's written approval, additional individuals, Consultants, or sub-Consultants to assist in the completion of services as herein defined. Compensation for additional individuals, Consultants, or sub-Consultants shall be the sole and exclusive responsibility of the CONSULTANT.

E. CONSULTANT shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three (3) years unless otherwise provided for in Exhibit “A.” Upon CITY providing twenty-four (24) hours advanced prior notice, CONSULTANT shall make all records, invoices, time cards, cost control sheets and other records maintained by CONSULTANT in connection with this Agreement available during CONSULTANT regular working hours to CITY for review and audit by CITY.

F. All reports, documents, or other written material developed by CONSULTANT in the performance of this Agreement shall be and remain the property of CITY without restriction or limitation upon its use or dissemination by CITY. Such material shall not be the subject of a copyright application by CONTRACTOR. Any alteration or reuse by CITY of any such materials on any project other than the Project shall be at CITY’s sole risk unless CITY compensates CONSULTANT for such reuse.

SECTION 5. WORK PRODUCT.

A. All data, documents, discussion, or other information developed or received by CONSULTANT or provided for performance of this Agreement are deemed confidential and shall not be disclosed by CONSULTANT without prior written consent by CITY. CITY shall grant such consent if disclosure is legally required. All such written products shall be returned to CITY upon the termination or expiration of this Agreement. CONSULTANT agrees that the covenants contained in this Article shall survive the expiration or termination of this Agreement.

B. Documents are provided in CONSULTANT’s standard software formats. CITY recognizes that electronic or magnetic data and its transmission can be easily damaged, may not be compatible with CITY’s software formats and systems, may develop inaccuracies during conversion or use, and may contain viruses or other destructive programs, and that software and hardware operating systems may become obsolete. As a condition of delivery of electronic or magnetic data, CITY agrees to defend indemnify and hold CONSULTANT, its sub-contractors, agents and employees harmless from and against all claims, loss, damages, expense and liability arising from or connected with its use, reuse, misuse, modification or misinterpretation. In no event shall CONSULTANT be liable for any loss of use, profit or any other damage.

SECTION 6. EXTRA SERVICES.

No extra services over and above the Compensation shall be rendered by CONSULTANT under this

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23 City of Montebello
Agreement unless such extra services first shall have been duly authorized in writing by CITY’s City Manager (“City Manager”).

SECTION 7. CITY SUPERVISION.

The Human Resources Director shall have the right of general supervision of all work performed by CONSULTANT and shall be CITY’s agent with respect to obtaining CONSULTANT’s compliance hereunder. No payment for services rendered under this Agreement shall be made without the prior approval of the City Manager.

SECTION 8. TERMINATION.

In the event that either Party hereto fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, the non-defaulting party shall give the defaulting party written notice of the default, the nature of the default, and of the steps necessary to cure the default.

A.Termination for Cause. In the event that any of the provisions of the Agreement are violated by either party, the non-defaulting Party may terminate the Agreement by serving written notice upon the other Party, listing the violation(s) and its intent to terminate such Agreement unless within ten (10) days after the serving of such notice, such violation shall cease or be rectified, the contract shall upon the expiration of an additional thirty (30) days cease and terminate. Violations by CONSULTANT which cannot be corrected within ten (10) days, said contract shall at the option of CITY cease and terminate upon the giving of like notice. In the event of any such termination for default by CONSULTANT, CITY may take over the work and prosecute the same to completion by contract or otherwise for the account and at the expense of CONSULTANT. CONSULTANT and his sureties shall be liable to CITY for any excess cost occasioned in the event of any such termination. This change shall not be construed to prevent the termination, for other causes authorized by law or other provisions of this contract. In the event of a termination for cause, CONSULTANT shall only be entitled to the Compensation for those Professional Services satisfactory performed on or before the effective date of termination.

B.Termination for Convenience. CITY shall have the option, at its sole discretion and without cause, to terminate this Agreement in whole, or in part, after giving written notice to CONSULTANT at least five (5) business days before the termination is to be effective. Upon the termination of this Agreement as provided herein, CITY shall provide to CONSULTANT the part of Compensation which would otherwise be payable to CONSULTANT for services CONSULTANT had completed as of the date of termination, less the amount of all previous payment with respect to the Compensation. Further, upon such a termination for convenience by CITY, the Parties agree that CONSULTANT shall be reimbursed for any “non-refundable” costs that CONSULTANT has incurred for its services under this Agreement, provided that: (1) such “non- refundable” costs were incurred by CONSULTANT prior to the date of termination; (2) that CONSULTANT provides CITY with adequate proof that CONSULTANT incurred the costs, and is unable to be seek a refund for such costs; and (3) such costs were within the SOW or services to be performed under this Agreement. Such “non-refundable” costs may include, but are not limited to, travel reservations incurred by CONSULTANT for its performance of services under this Agreement. CONSULTANT agrees to cease all work under this Agreement on or before the effective date of any notice of termination.

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24 City of Montebello
SECTION 9. EMPLOYMENT OF CITY EMPLOYEES.

No regular employee of CITY shall be employed by CONSULTANT during the Term of this Agreement.

SECTION 10. NON-LIABILITY OF CITY OFFICIALS AND EMPLOYEES.

No official or employee of CITY shall be personally liable to CONSULTANT in the event of any default or breach by CITY, or for any amount which may become due to CONSULTANT.

SECTION 11. INDEPENDENT CONSULTANT.

A. CONSULTANT is and shall, at all times, remain as to CITY a wholly independent contractor.

Neither CITY nor any of its elected officials, officers, employees or agents shall have control over the conduct of CONSULTANT except as expressly set forth in this Agreement. CONSULTANT shall not at any time or in any manner represent that he is in any manner an elected official, officer, employee or agent of CITY. No employee benefits shall be available to CONTRACTOR in connection with the performance of this Agreement. Except as provided in this Agreement, CITY shall not pay salary, wages, or other compensation to CONSULTANT for performance hereunder for CITY. CITY shall not be liable for compensation to CONSULTANT, CONSULTANT’s employees or CONSULTANT’s sub-Consultant for injury or sickness arising out of performing services hereunder.

B. The parties further acknowledge and agree that nothing in this Agreement shall create or be construed to create a partnership, joint venture, employment relationship or any other relationship except as set forth in this Agreement.

C. CITY shall not deduct from the Compensation paid to CONSULTANT any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to CONSULTANT. CITY shall have no responsibility to provide CONSULTANT, its employees or sub-Consultant with workers’ compensation insurance or any other insurance.

SECTION 12. PERS ELIGIBILITY INDEMNITY.

A. In the event that CONSULTANT or any employee, agent, or sub-Consultant of CONSULTANT providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of CITY, CONSULTANT shall indemnify, defend, and hold harmless CITY for the payment of any employee and/or employer contributions for PERS benefits on behalf of CONSULTANT or its employees, agents, or sub-Contractors, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of CITY.

B. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, CONSULTANT and any of its employees, agents, and sub-Consultant providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by CITY, including but not limited to eligibility to enroll in PERS as an employee of CITY and entitlement to any contribution to be paid by CITY for employer contribution and/or employee contributions for PERS benefits.

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25 City of Montebello
SECTION 13. LEGAL RESPONSIBILITIES.

CONSULTANT shall at all times observe and comply with all applicable laws, ordinances, codes and regulations of the federal, state and local governments including, but not limited to the Montebello Municipal Code. CITY, and its appointed or elected officers, employees, or agents, shall not be liable at law or in equity occasioned by failure of CONSULTANT to comply with this section.

SECTION 14. INDEMNIFICATION.

CONSULTANT agrees to, and shall defend, indemnify, protect and hold harmless, CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers from and against any and all claims, demands, lawsuits, defense costs, civil, penalties, expenses, causes of action, and judgments at law or in equity, or liability of any kind or nature which CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers may sustain or incur or which may be imposed upon them for injuries or deaths of persons, or damage to property arising out of CONSULTANT’s negligent or wrongful act, or omission under the terms of this Agreement, except only liability arising out of the sole negligence of CITY.

SECTION 15. INSURANCE COVERAGE.

During the Term of this Agreement, CONSULTANT shall carry, maintain, and keep in full force and effect all of the following minimum scope of insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with CONSULTANT’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:

Commercial General Liability (CGL): Broad-form, Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis for bodily injury and property damage, including premise-operations, products- completed operations, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury, and advertising injury, with limits no less than One Million Dollars and Zero Cents ($1,000,000), combined single limits, per occurrence. If a general aggregate limit applies, the limit shall be twice the required occurrence limit.

Business Automobile Liability Insurance: For owned vehicles, hired, and non-owned vehicles, Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if CONSULTANT has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than One Million Dollars and Zero Cents ($1,000,000.00) per accident for bodily injury and property damage.

Worker’s Compensation insurance as required by the laws of the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than One Million Dollars and Zero Cents ($1,000,000.00) per accident for bodily injury or disease. CONSULTANT agrees to waive, and to obtain endorsements from its workers’ compensation insurer waiving subrogation rights under its workers’ compensation insurance policy against CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers for losses arising from work performed by CONTRACTOR for CITY and to require each of its sub-Consultants, if any, to do likewise under their workers’ compensation insurance policies.

By executing this Agreement, CONSULTANT further certifies as follows:

I am aware of, and will comply with, Section 3700 of the Labor Code, requiring every employer to be insured against liability of Workers’ Compensation or to undertake

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26 City of Montebello
self-insurance before commencing any of the work contemplated herein.

Professional Errors and Omissions (E&O) Liability insurance appropriate to the CONSULTANT’s profession, with limit no less than Two Million Dollars and Zero Cents ($2,000,000.00) per occurrence or claim, Two Million Dollars and Zero Cents ($2,000,000.00) aggregate. Architects’ and engineers’ coverage shall be endorsed to include contractual liability. If the policy is written as a “claims made” policy, the retroactivity date shall be prior to the start of work set forth herein, CONSULTANT shall obtain and maintain said E&O liability insurance during the Term of this Agreement and for five (5) years after completion of work hereunder. If coverage is canceled or non-renewed, and not replaced with another claims-made policy form with a retroactive date prior to the effective date of this Agreement, CONSULTANT shall purchase “extended reporting” coverage for a minimum of five (5) years after completion of the work.

If CONSULTANT maintains higher limits than the minimums shown above, CITY requires and shall be entitled to coverage for the higher limits maintained by CONSULTANT. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to CITY.

CONTACTOR shall require each of its sub-Consultants, if any, to maintain insurance coverage that meets all of the requirements of this Agreement.

The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California, with a current rating of at least a: VII in the latest edition of Best's Insurance Guide, and approved by CITY.

Each insurance policy required herein shall state that coverage shall not be canceled, except after providing CITY thirty (30) days’ (or ten [10] calendar days’ for non-payment) prior written notice.

CONSULTANT agrees that if it does not keep the aforesaid insurance in full force and effect CITY may either: (i) immediately terminate this Agreement for Cause; or (ii) take out the necessary insurance and pay, at CONSULTANT’s expense, the premium thereon.

At all times during the Term of this Agreement, CONSULTANT shall maintain on file with CITY’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and naming CITY, its officers, agents, employees and volunteers as an additional insured. CONSULTANT shall, prior to commencement of work under this Agreement, file with CITY’s Risk Manager such certificate(s).

CONSULTANT shall provide proof that policies of insurance required herein expiring during the Term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages.

The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers as additional insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty (30) days’ prior written notice to CITY. CONSULTANT agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.

Except for professional liability and workers’ compensation policies, the policies herein are

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27 City of Montebello
primary and non-contributing with any insurance that may be carried by CITY. Any insurance or self- insurance maintained by CITY, its officers, employees, agents or volunteers, shall be in excess of CONSULTANT’s insurance and shall not contribute with it.

All insurance coverage provided pursuant to this Agreement shall not prohibit CONSULTANT, and CONSULTANT’s employees, agents or sub-Consultant, from waiving the right of subrogation prior to a loss.

CONSULTANT hereby waives all rights of subrogation against CITY. CONSULTANT agrees to obtain any endorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not CITY has received a waiver if subrogation endorsement from the insurer.

Coverage not affected. Any failure to comply with the reporting provisions of the policies contemplated herein, shall not affect coverage provided to CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers.

Coverage applies separately. CONSULTANT’s insurance shall apply separately to each insured against whom claim is made or suit is brought, except with respect to the limits of the insurer’s liability.

Any deductibles or self-insured retentions must be declared to and approved by CITY. At the option of CITY, CONSULTANT shall either reduce or eliminate the deductibles or self-insured retentions with respect to CITY, or CONSULTANT shall procure a bond guaranteeing payment of losses and expenses.

Procurement of insurance by CONSULTANT shall not be construed as a limitation of CONSULTANT's liability or as fall performance of CONSULTANT’s duties to indemnify, hold harmless and defend under Section 9 of this Agreement.

CITY, its officers and employees shall not be responsible for any claims in law or in equity occasioned by failure of CONSULTANT to comply with this section.

SECTION 16. SUBCONTRACT, ASSIGNMENT OR DELEGATION.

CONSULTANT shall not subcontract, delegate or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of CITY. Any proposed subcontract, delegation, or assignment shall provide a description of the services to be covered, identification of the proposed sub- Consultant, delegee, or assignee, and an explanation of why and how the same was selected, including the degree of competition involved.

Any subcontract, delegation or assignment shall be made in the name of CONSULTANT and shall not bind or purport to bind CITY and shall not release CONSULTANT from any obligations under this Agreement including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegees or sub-Consultants. No such subcontract, delegation or assignment shall result in any increase in the amount of total compensation payable to CONSULTANT under the Agreement.

SECTION 17. NO WAIVER.

Waiver by any party hereto of any term, condition or covenant of this Agreement shall not constitute the waiver of any other term, condition or covenant hereof.

SECTION 18. DISPUTE RESOLUTION; GOVERNING LAW.

Disputes regarding the interpretation or application of any provision(s) of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the Parties. If any

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28 City of Montebello
action at law or in equity is brought to enforce this Agreement or because of alleged dispute, breach, default or misrepresentation in connection with the provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney’s fees, expert fees, costs and necessary disbursements incurred in that action or proceeding, in addition to such other relief as may be sought and awarded. The venue for any litigation shall be County of Los Angeles, California. The Parties agree that the covenants contained in this Article shall survive the expiration or termination of this Agreement.

SECTION 19. ATTORNEY’S FEES AND COSTS.

If litigation is reasonably required to enforce or interpret the provisions of this Agreement, the prevailing party in such litigation shall be entitled to an award of reasonable attorney's fees and costs in addition to any other relief to which it may be entitled.

SECTION 20. WARRANTIES.

Each of the parties represents and warrants to one another as follows:

A. It has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement;
B. In executing this Agreement, it has carefully read this Agreement, knows the contents thereof, and has relied solely on the statements expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or promise of any other party, or any other person or entity, not expressly set forth herein, nor upon the failure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever; and C. It is agreed that each party has the full right and authority to enter into this Agreement, and that the person executing this Agreement on behalf of either party has the full right and authority to fully commit and bind such party to the provisions of this Agreement.

SECTION 21. MISCELLANEOUS.

A. The descriptive paragraph headings of this Agreement are included for purposes of convenience only and shall not control or affect the construction of interpretation of any of its provisions.

B. Whenever the context hereof shall so require, the singular shall include the plural, the male gender shall include the female gender, and the neuter and vice versa.

C. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained herein.

D. The representations and warranties made by the parties to this Agreement shall survive the consummation of the transaction herein described.

E. This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile transmission, shall for all purposes be treated as if it were delivered containing an original manual

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29 City of Montebello
signature of the party whose signature appears in the facsimile and shall be binding upon such party in the same manner as though an originally signed copy had been delivered.

F. Each of the parties acknowledges that it has been represented by independent counsel of its own choosing, or if it has not been so represented, it has been admonished to obtain independent counsel and has freely and voluntarily waived and relinquished the right to counsel. Each party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such party’s failure to perform under this Agreement or any agreement referred to in this Agreement.

G. To the extent of a conflict between the terms of this Agreement and those set forth in any exhibits or attachments hereto, the terms of this Agreement shall govern.

SECTION 22. NOTICE.

All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered personally or on the second business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals hereunder shall be given to the following addresses or such other addresses as the Parties may designate by written notice:

CITY MANAGER
City of Montebello
1600 West Beverly Boulevard
Montebello, California 90640

CONSULTANT
________________________
________________________
________________________
________________________
SECTION 23. NON-DISCRIMINATION AND EQUAL OPPORTUNITY EMPLOYER.

In the performance of this Agreement, CONSULTANT shall not discriminate against any employee, sub-Consultant, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, mental condition or sexual orientation.

CONSULTANT will take affirmative action to ensure that sub-Consultant and applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.

SECTION 24. CONFLICT OF INTEREST.

CONSULTANT and its officers, employees, associates and sub-Consultant, if any, shall comply with all California conflict of interest statutes applicable to Consultant’s Services under this Agreement, including, but not limited to, the Political Reform Act (Gov. Code, § 81000 et seq.) and Government Code Section 1090. CONSULTANT further covenants that it presently has no interest and shall not acquire any

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30 City of Montebello
interest, direct or indirect, which may be affected by the services to be performed by CONSULTANT under this Agreement, or which would conflict in any manner with the performance of its services hereunder.

CONSULTANT further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, CONSULTANT shall avoid the appearance of having any interest that would conflict in any manner with the performance of its services pursuant to this Agreement.

CONSULTANT covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to CITY as a result of the performance of this Agreement, or the services that may be procured by CITY as a result of the recommendations made by CONSULTANT.

CONSULTANT's covenant under this section shall survive the termination of this Agreement.

SECTION 25. ENTIRE AGREEMENT.

This Agreement contains the entire understanding between CITY and CONSULTANT. Any prior agreements, promises, negotiations or representations not expressly set forth herein are of no force or effect. Subsequent modifications to this Agreement shall be effective only if in writing and signed by each party. If any term, condition or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions of this Agreement shall be valid and binding.

CITY OF MONTEBELLO CONSULTANT
René Bobadilla Name and Title
City Manager
Dated: Dated:

ATTEST:

Christopher Jimenez
City Clerk

APPROVED AS TO FORM
Arnold M. Alvarez-Glasman
City Attorney

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31 City of Montebello
SECTION 6 - FORMS AND CERTIFICATIONS

LETTER OF TRANSMITTAL

CITY OF MONTEBELLO

HUMAN RESOURCES DEPARTMENT
SUBJECT: REQUEST FOR PROPOSAL (RFP) NO. 23-3

EMPLOYEE BENEFITS INSURANCE BROKER SERVICES
In response to the subject Request for Proposal (RFP) and in accordance with the accompanying Instructions to Proposers, the Proposer hereby commits to the City of Montebello to perform the work in accordance with the provisions in the Proposal Level Contract Documents and any addenda thereto and at the prices stated in the Revenue Price Sheet, which will be included and made a part of any subsequent Contract.

The Proposer agrees that the Proposal constitutes a firm offer that cannot be withdrawn for ninety (90) calendar days from the Proposal opening or until the Contract for the work is fully executed between the City and a third party, whichever is earlier.

If awarded a contract, the Proposer agrees to execute the Agreement and deliver it to the City of Montebello within seven (7) calendar days after receiving a Letter of Award together with the necessary certificates of insurance and any applicable performance or payment bonds. The Contractor shall proceed with the work upon receipt of a Notice to Proceed.

The Proposer certifies that it has:

1. Examined and is fully familiar with all the provisions of the RFP Documents and any addenda thereto:

2. Satisfied itself as to the requirements of the Contract, the nature and location of the work, the general and local conditions to be encountered in performance of the work, and all other matters that can in any way affect the Work and/or the cost thereof.

3. Examined the experience, skill and certification requirements in Scope of Services and that the entities performing the work can fulfill the specified requirements; and

4. Carefully reviewed the accuracy of all statements and figures shown in the Proposal and attachment hereto.

Therefore, the undersigned hereby agrees that the City of Montebello will not be responsible for any errors or omissions in the Proposal.

The Proposer further certifies that:

1. The only persons, firms, corporations, joint ventures/partnerships, and/or other parties interested in the Proposal as principals are those listed as such in the Proposal Forms and that,

2. The Proposal has been prepared without collusion with any other person, firm, corporation, joint venture/partnership, and/or other party.

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The undersigned acknowledges receipt, understanding and full consideration of the following addenda to the Proposal Documents:

Addenda No(s)
Dated Dated
Dated Dated
Dated Dated
Failure to acknowledge receipt of all addenda may cause the Proposal to be considered non-responsive to the solicitation. Acknowledged receipt of each addendum must be clearly established and included with the Proposal /offer.

Proposer’s Name
Business Address

Contact Person
Email Address
Phone
Fax
Signature of Authorized Official Signature of Authorized Official

Typed or Printed Name Typed or Printed Name
Title Title

Date Date

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33 City of Montebello
(Joint ventures/partnerships are to provide a signed copy of their agreement with their Proposal.) For Proposals requiring licenses the following information is required:

Consultant’s License No.

Expiration Date:

License Classification:

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34 City of Montebello

EXHIBIT A

INDEMNIFICATION AND HOLD HARMLESS AGREEMENT AND WAIVER OF SUBROGATION AND CONTRIBUTION Contract/Agreement/License/Permit No. or description: RFP Employee Benefits Insurance Broker Services Indemnitor(s): __________________________________________________ (List all names)
To the fullest extent permitted by law, Indemnitor hereby agrees, at its sole cost and expense, to protect, indemnify, and hold harmless the City of Montebello and its elected officials, officers, attorneys, agents, employees, designated volunteers, successors, and assigns (collectively “Indemnitees”) from and against any and all damages, costs, expenses, liabilities, claims, demands, causes of action, proceedings, expenses, judgments, penalties, liens, and losses of any nature whatsoever, including fees of accountants, attorneys, or other professionals and all costs associated therewith (collectively “Liabilities”), resulting from any wrongful or negligent act, failure to act, error, or omission of Indemnitor or any of its officers, agents, servants, employees, subcontractors, material men, suppliers or their officers, agents, servants or employees, arising or claimed to arise, directly or indirectly, out of, in connection with, resulting from, or related to the above-referenced contract, agreement, license, or permit (the “Agreement”) or the performance or failure to perform any term, provision, covenant, or condition of the Agreement, including this indemnity provision. This indemnity provision is effective regardless of any prior, concurrent, or subsequent passive negligence by Indemnitees and shall operate to fully indemnify Indemnitees against any such negligence.

This indemnity provision shall survive the termination of the Agreement and is in addition to any other rights or remedies which Indemnitees may have under the law. Payment is not required as a condition precedent to an Indemnitee’s right to recover under this indemnity provision, and an entry of judgment against the Indemnitor shall be conclusive in favor of the Indemnitee’s right to recover under this indemnity provision. Indemnitor shall pay Indemnitees for any attorney’s fees and costs incurred in enforcing this indemnification provision. Notwithstanding the foregoing, nothing in this instrument shall be construed to encompass (a) Indemnitees’ active negligence or willful misconduct to the limited extent that the underlying Agreement is subject to Civil Code § 2782(a), or (b) the contracting public agency’s active negligence to the limited extent that the underlying Agreement is subject to Civil Code § 2782(b). This indemnity is effective without reference to the existence or applicability of any insurance coverages which may have been required under the Agreement or any additional insured endorsements which may extend to Indemnitees.

City agrees to promptly inform Indemnitor in writing of any claim that City believes to be subject to this Indemnification and Hold Harmless Agreement.

Indemnitor, on behalf of itself and all parties claiming under or through it, hereby waives all rights of subrogation and contribution against the Indemnitees, while acting within the scope of their duties, from all claims, losses and liabilities arising out of or incident to activities or operations performed by or on behalf of the Indemnitor regardless of any prior, concurrent, or subsequent non-active negligence by the Indemnitees.

In the event there is more than one person or entity named in the Agreement as an Indemnitor, then all obligations, liabilities, covenants and conditions under this instrument shall be joint and several. “Indemnitor”
Name: __________________________________________________Name: ________________________ (Print) (Print)
By: _________________________________________________By: _________________________________________ (Signature) (Signature)
Title: ______________________________________________Title: _______________________________________ Date: ________________________________________________Date: ________________________________________

RFP No. 23-3
35 City of Montebello

EXHIBIT B

REFERENCES
List at Least Three (3) Professional References:
1 Project City/Agency/Other:

Person of Contact:

Phone Number:

E-mail Address:

Address:

City, State, Zip Code:

Description of Contract (Please
include contract value, award
date, term of contract, and
description of work):

Contract Value: $
Award Date:

Term of Contract:

Description of Work:
2 Project City/Agency/Other:

Person of Contact:

Phone Number:

E-mail Address:

Address:

City, State, Zip Code:

Description of Contract (Please
include contract value, award
date, term of contract, and
description of work):

Contract Value: $
Award Date:

Term of Contract:

Description of Work:
3 Project City/Agency/Other:

Person of Contact:

Phone Number:

E-mail Address:

Address:

City, State, Zip Code:

Description of Contract (Please
include contract value, award
date, term of contract, and
description of work):

Contract Value: $
Award Date:

Term of Contract:

Description of Work:

RFP No. 23-3
36 City of Montebello

EXHIBIT C

INSURANCE
The proposal shall include a statement that the insurance requirements set forth in the contract documents can be obtained and will be carried without reservation or exclusion should Proposer be awarded a contract pursuant to this RFP.

Successful Proposer shall at all times during the term of the awarded Agreement, carry, maintain, and keep in force and effect, with an insurance company admitted to do business in California, rated “A” or better in the most recent A.M. Best’s Insurance Rating Guide, and approved by the CITY, a policy or policies of:

A. Commercial General Liability Insurance using Insurance Services Office Commercial General Liability form CG 00 O1 or the exact equivalent. Defense costs must be paid in addition to limits.

There shall be no cross liability exclusion for claims or suits by one insured against another. Limits shall be no less than $1,000,000 per occurrence for all covered losses and no less than $2,000,000 general aggregate.

B. Business Auto Coverage on ISO Business Auto Coverage form CA 00 O1 including symbol 1 (Any Auto) or the exact equivalent. Limits shall be no less than $1,000,000 per accident, combined single limit. If Consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described in the preceding subsection. If Consultant or Consultant’s employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person.

C. Workers' Compensation insurance on a state approved policy form providing statutory benefits as required by law with employer's liability limits no less than $1,000,000 per accident for all covered losses.

D. Professional Liability or Errors and Omissions Insurance as appropriate to the profession, written on a policy form coverage specifically designed to protect against acts, errors or omissions of the Consultant and "Covered Professional Services" as designated in the policy must specifically include work performed under this Agreement. The policy limit shall be not less than $2,000,000 per claim and in the aggregate. The policy must "pay on behalf of” the insured and must include a provision establishing the insurer's duty to defend. The policy retroactive date shall be on or before the effective date of this Agreement. City, it’s officers, employees, attorneys, and designated volunteers shall be named as additional insured on the policy, or policies, as to commercial general liability bodily injury and property damage coverage’s and automobile coverage’s with respect to liability arising out of successful Proposer’s work under this Agreement.

E. All insurance policies shall provide that the insurance coverage shall not be non-renewed, canceled, reduced, or otherwise modified (except through the addition of additional insureds to the policy) by the insurance carrier without the insurance carrier giving the City thirty (30) days' prior written notice thereof. Any such thirty (30) day notice shall be submitted to City via certified mail, return receipt requested, addressed to "Risk Manager," City of Montebello, 1600 West

RFP No. 23-3
37 City of Montebello
Beverly Boulevard, Montebello, California, 90640. Contractor agrees that it will not cancel, reduce or otherwise modify said insurance coverage.

F. Consultant shall submit to City (i) insurance certificates indicating compliance with the minimum worker's compensation insurance requirements above, and (ii) insurance policy endorsements indicating compliance with all other minimum insurance requirements above, not less than one (1) day prior to the beginning of performance under this Agreement. Endorsements shall be executed on City's appropriate standard forms entitled "Additional Insured Endorsement".

RFP No. 23-3
38 City of Montebello

EXHIBIT D

PRICE SUMMARY SHEET
In accordance with the Request for Proposal issued by the City of Montebello (hereinafter referred to as Broker/Consultant), the undersigned proposing company hereby agrees to furnish all necessary labor, materials and incidentals required for the above stated contract as set forth in the Scope of Work and any addenda thereto, and to perform all work in the manner and time prescribed therein.

DESCRIPTION FIXED ANNUAL RATE
A CONTRACT YEAR 1 $
B CONTRACT YEAR 2 $
C CONTRACT YEAR 3 $
Total for initial 3 year contract period $

OPTIONAL RENEWAL PERIODS
D CONTRACT YEAR 4 $
E CONTRACT YEAR 5 $
The above amounts include salary cost, fringe benefits, overhead, operating margin and profit, and all direct and indirect expenses.

Please include above any other potential additional services that may be required and associated costs. (Attach your hourly and expense schedule for any additional work outside of scope of services.)

COMPANY NAME

ADDRESS

TELEPHONE & FAX

EMAIL ADDRESS

AUTHORIZED SIGNATURE

SIGNATURE'S NAME AND TITLE

DATE SIGNED

RFP No. 23-3
39 Montebello Bus Lines

EXHIBIT E
Bidder’s List of Subcontractors (DBE and Non-DBE)
Part I
The bidder shall list all subcontractors (both DBE and non-DBE) in accordance with Section 2-1.054 the Standard Specification and per Title 49, Section 26.11 of the Code of Federal Regulations. This listing is required in addition to listing DBE Subcontractors elsewhere in the proposal. Photocopy this form for additional firms.

Firm Name/
Address/
City, State, ZIP
Phone/
Fax Annual Gross
Receipts
Description of Portion of Work to be
Performed
Local Agency Use Only
(Certified DBE?)
< $1 million YESName
< $5 million NO
Phone
< $10 million If YES list DBE #:Address
< $15 million
> $15 million Age of Firm (Yrs.)City State ZIP
Fax
< $1 million YESName
< $5 million NO
Phone
< $10 million If YES list DBE #:Address
< $15 million
> $15 million Age of Firm (Yrs.)City State ZIP
Fax
< $1 million YESName
< $5 million NO
Phone
< $10 million If YES list DBE #:Address
< $15 million
> $15 million Age of Firm (Yrs.)City State ZIP
Fax

RFP No. 23-3
40 City of Montebello
Part II
The bidder shall list all subcontractors who provided a quote or bid but were not selected to participate as a subcontractor on this project. This is required for compliance with Title 49, Section 26 of the Code of Federal Regulations. Photocopy this form for additional firms.

Firm Name/
Address/
City, State, ZIP
Phone/
Fax Annual Gross Receipts Description of Portion of Work to be Performed
Local Agency
Use Only
(Certified
DBE?)
< $1 million YESName
< $5 million NO
Phone
< $10 million If YES list DBE
#:

Address
< $15 million
> $15 million Age of Firm
(Yrs.)
City State ZIP
Fax
< $1 million YESName
< $5 million NO
Phone
< $10 million If YES list DBE
#:

Address
< $15 million
> $15 million Age of Firm
(Yrs.)
City State ZIP
Fax

RFP No. 23-3
41 City of Montebello
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ITEM # 12

CITY OF MONTEBELLO

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA STAFF REPORT

TO:

Honorable Mayor and City Council Members
FROM:

René Bobadilla, P.E., City Manager
BY:

Nick Razo, Director of Human Resources
SUBJECT: APPROVAL OF A SOLE-SOURCE, PROFESSIONAL SERVICES AGREEMENT NO. 4031, WITH GOVERNMENTJOBS, INC., DBA

NEOGOV, FOR ADD-ON PERFORM SOFTWARE SUBSCRIPTION AND

SETUP SERVICES

DATE: October 12, 2022

RECOMMENDATION(S):

It is recommended that the City Council:

1) Approve a Sole-Source, Professional Services Agreement, No. 4031, with Governmentjobs, Inc., dba NEOGOV (NEOGOV), for add-on Perform software subscription and setup services; and

2) Authorize the City Manager and/or his designee to execute an agreement on behalf of the City of Montebello (City); and

3) Amend the Fiscal Year 2022-23 budget by increasing appropriations by $16,083 in Account No. 100-25-250-6040.95 (General Fund, Human Resources, Contract Services – Professional Services); and

4) Take such additional, related, action that may be desirable.

FISCAL IMPACT:

The cost to add-on the online applicant management system and recruitment process services over a two-year (2-year) term is for a total not-to-exceed amount of $36,249.

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF OCTOBER 12, 2022

The payment schedule is as follows:

Year 1 Year 2 Total 2-Year
Agreement
$16,083

$20,166 $36,249

Funding for this service was not originally included in the Human Resources Department’s Fiscal Year 2022-23 adopted operating budget. Therefore, a budget amendment is required, increasing appropriations by $16,083 in Account No. 100-25- 250-6040.95 (Human Resources, Contract Services – Professional Services). Funding for the second year of this agreement will be included in the FY 2023-24 budget.

BACKGROUND:

In September 2021, the City contracted with NEOGOV (see Attachment A) to provide an onboarding subscription and new hire integration license for the Human Resources Department. The software solution assists staff attract, retain, develop, and manage City employees. In addition, the NEOGOV online platform enables Human Resources to engage in transparent and simplified processes, improve the efficiency of data entry, and provide analytical reports for management to evaluate the results of all recruitment opportunities.

Since Human Resources currently utilizes the NEOGOV software and service to recruit and onboard new City employees, adding the Perform subscription to evaluate employees' performance is a reasonable choice. The add-on Perform software solution automates annual and probationary employee evaluations, allowing Human Resources to identify skills gaps and areas of improvement for City employees. In addition, the software allows for continuous communication with employees by providing manager feedback and goal tracking through email notifications, mobile or desktop journals, and scheduled and recurring check-ins. Human Resources and the respective department managers can complete entries throughout the year to document performance for reference during performance reviews.

Since NEOGOV is a proprietary software, Human Resources requests approval to sole- source the add-on software subscription and setup services to maintain and increase the efficiency of City departments. The procurement of this software will be obtained in accordance with the procedures outlined in the Montebello Municipal Code, Section

3.20.050 (B) – when the supplies and equipment needed can be obtained from one source only, as authorized under California Government Code section 54202.

ENVIRONMENTAL IMPACT:

There is no environmental impact.

ANALYSIS:

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF OCTOBER 12, 2022

N/A

DISCUSSION:

N/A

SUMMARY:

Staff recommends that the City Council approve a sole-source, Professional Services Agreement (see Attachment B), attached hereto in substantial form, with NEOGOV to provide the add-on Perform software solution to increase the efficiency of the employee performance evaluation system, for a total not-to-exceed amount $36,249 over the two- year term; authorize the City Manager and/or his designee, to execute an agreement on behalf of the City; amend the FY 2022-23 budget by $16,083 in Account No. 100-25-250- 6040.95 (Human Resources, Contract Services – Professional Services); and take such additional, related, action that may be desirable.

ATTACHMENT(S)

1. Attachment A - Original Agreement with NEOGOV

2. Attachment B - Agreement No. 4031

NEXT STEPS:

N/A

Mike Burns
9/20/21

CITY OF MONTEBELLO

PROFESSIONAL SERVICES AGREEMENT NO. 4031
WITH GOVERNMENTJOBS, INC. dba NEOGOV

THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into on October 12, 2022 (“Effective Date”), by and between the CITY OF MONTEBELLO, a California municipal corporation ( the “CITY”) and GOVERNMENTJOBS, INC. dba NEOGOV , a California corporation (the “CONTRACTOR”). The CITY and the CONTRACTOR are sometimes referred to herein individual as the “Party,” and jointly as the “Parties.”

RECITALS

WHEREAS, the CITY desires to retain a qualified professional Contractor to assist CITY by providing add-on Perform software subscription and setup services ; and

WHEREAS, the CONTRACTOR represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees; and

WHEREAS, the CONTRACTOR represents the degree of specialized expertise contemplated within California Government Code, Section 37103, and is qualified t o perform such services by virtue of its experience and the training, education, and expertise of its principals and employees; and

WHEREAS, no official or employee of the CITY has a financial interest, within the provisions of Sections 1090 – 1092 of the California Government Code, in the subject matter of this Agreement.

NOW THEREFORE, in consideration of performance by the Parties of the covenants and conditions herein contained, the Parties hereto agree as follows:

SECTION 1. INCORPORATION OF RECIT ALS AND OTHER CONTRACT

DOCUMENTS

A. The above-referenced Recitals constitute a material part hereof and shall hereby be incorporated by reference. Moreover, this Agreement consists of the following documents, in order of precedence, all of which are incorpo rated herein and made part of this Agreement, as though fully set forth herein:

a. This Agreement and its Exhibits.
b. CONTRACTOR’S Scope of Services and Associated Cost
Proposal dated September 14, 2022, attached hereto as Exhibit “A”.
c. All other documents, including but not limited to all applicable bonds, insurance certificates, permits, notices, schedules, forms, certifications, and affidavits.

B. These documents shall be collectively referred to herein as the “Contract Documents.” In the event of a confli ct among the Contract Documents, the order of precedence list above shall apply.

PROFESSIONAL SERVICES AGREEMENT NO. 4031

SECTION 2. SERVICES / COMPENSATION.

A. The CONTRACTOR shall provide to the CITY those services that are set forth fully in CONTRACTOR’s “ Scope of Services and Associated Cost Proposal” attached hereto as Exhibit “A” and incorporated fully herein by this reference (the “Professional Services”).

B. The CONTRACTOR shall complete the Scope of Services in a timely manner, and in accordance with an agreed -upon work schedule to be determined by the Parties.

C. The CONTRACTOR shall be compensated at a sum not -to-exceed Thirty-Six Thousand, Two Hundred and Forty-Nine Dollars ($36,249) over the two-year (2-year) term (the “Maximum Compensation”) for the performance of the Scope of Services as set forth in Exhibit “A”. The CONTRACTOR shall provide an itemized billing statement to CITY for the Scope of Services performed. The CONTRACTOR shall not incur fees or costs which exceed the Maximum Compensation without the prior written consent of the CITY.

D. The CITY will be invoiced upon completion of the Scope of Services set forth herein. Payment in full of an invoice must be received by the CONTRACTOR within thirty (30) days of the date of such invoice.

E. Work performed shall be deemed approved and accepted by the CITY as and when invoiced unless the CITY objects within fifteen (15) days of invoice date by written notice specifically stating the details in which the CITY believes such work is incomplete or defective, and the invoice amount(s) in dispute.

The CITY shall pay undisputed amounts as provided for in the preceding paragraph.

SECTION 3. TERM.

This Agreement shall commence on October 12, 2022 and shall terminate on October 11, 2024 , unless such deadline is extended in writing by a further agreement between the Parties or the Agreement is terminated sooner as provided in Section 8 herein.

SECTION 4. PERFORMANCE.

a. The CONTRACTOR shall at all times, faithfully, competently, and to the best of its ability, experience, and talent, perform all tasks described herein.

b. The CONTRACTOR shall employ, at a minimum, generally accepted standards a nd practices utilized by companies engaged in providing similar services, as a re required of CONTRACTOR hereunder, in meeting its obligations under this Agreement.

c. The CONTRACTOR shall be knowledgeable of a nd su bject to a ll CITY ordinances, rules and regulations, standard operating procedures, and the supervisory chain of command.

PROFESSIONAL SERVICES AGREEMENT NO. 4031

d. The CONTRACTOR shall have the right to retain, subject to t h e CITY's approval, a dditional individuals, contractors or subcontractors to assist in the comp letion of services as herein defined. Compensation for additional individuals, contractors or subcontractors shall be the sole and exclusive responsibility of the CONTRACTOR.

e. The CONTRACTOR shall retain all original reports, field and office notes, correspondence, calculations, maps, and other documents specifically related to the services provided by the CONTRACTOR pursuant to this Agreement for a minimum period of three (3) years , other than documents which are exempt from disclosure p ursuant to the attorney-client privilege or any other law. Said documents shall be made available for inspection by the CITY upon request.

f. All non-proprietary reports, documents or other written material developed by CONTRACTOR in the performance of this Agreement shall be and remain the property of CITY without restriction or limitation upon its use or dissemination by CITY. Such material shall not be the subject of a copyright application by CONTRACTOR. Any alteration or reuse by CITY of any such materials on any project other than the Project shall be at CITY’s sole risk, unless CITY compensates CONTRACTOR for such reuse.

SECTION 5. WORK PRODUCT.

a. The CONTRACTOR hereby agrees that all non -pr opr iet ar y/ non - copyr ig ht work product produced pursuant to this Agreement, and provided to the CITY during and upon completion of this Agreement, shall be the property of the CITY, and ownership of said work product shall be retained by the CITY. The CONTRACTOR may take and retain copies of such written p roducts as desired, but no such written products shall be the subject of a copyright application by the CONTRACTOR.

b. All data, documents, discussion, or other information developed or received by the CONTRACTOR or provided for performance of this Agreement are deemed confidential and shall not be disclosed by the CONTRACTOR without prior written consent by the CITY. The CITY shall grant such consent if disclosure is legally required. All such w ritten products shall be returned to the CITY upon the termination or expiration of this Agreement. The CONTRACTOR agrees that the covenants contained in this Section shall survive the expiration or termination of this Agreement.

c. Documents shall be provided in CITY’s standard software formats.

SECTION 6. EXTRA SERVICES.

No e xtra ser vices over and above the Compensation shall be rendered by the CONTRACTOR under this Agreement unless such extra services first shall have been duly authorized in writing by the CITY’s City Manager (the “City Manager”).

SECTION 7. CITY SUPERVISION.

The City Manager shall have the right of general supervision of all work performed by the CONTRACTOR and shall be the CITY’s agent with respect to obtaining the CONTRACTOR’s compliance hereunder.

PROFESSIONAL SERVICES AGREEMENT NO. 4031

SECTION 8. TERMINATION.

In the event that either Party hereto fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, the non-defaulting party shall give the defaulting party written notice of the default, the nature of the default, and of the steps necessary to cure the default.

a. Termination for Cause . In the event that any of the provisions of the Agreement are violated by ei ther party, the non -defaulting Party may terminate the Agreement by serving written notice upon the other Party, listing the violation(s) and its intent to terminate such Agreement unless within ten (10) days after the serving of such notice, such violation shall cease or be rectified, the contract shall upon the expiration of an additional thirty (30) days cease and terminate. Violations by the CONTRACTOR which cannot be corrected within ten (10) days, said contract shall at the option of the C ITY cease and terminate upon the giving of like notice. In the event of any such termination for default by the CONTRACTOR, the CITY may take over the work and prosecute the same to completion by contract or otherwise for the account and at the expense of the CONTRACTOR. The CONTRACTOR and his sureties shall be liable to the C ITY for any excess cost occasioned in the event of any such termination. This change shall not be construed to prevent the termination, for other causes authorized by law or other provisions of this contract.

In the event of a termination for cause, the CONTRACTOR shall only be entitled to the Compensation for those Professional Services satisfactory performed on or before the effective date of termination.

b. Termination for Convenience . T he CITY shall have the option, at its sole discretion and without cause, to terminate this Agreement in whole, or in part, by giving ten (10) business days’ written n otice to the CONTRACTOR. Upon the termination of this Agreement as pro vided herein, the CITY shall provide to the CONTRACTOR the part of Compensation which would otherwise be payable to the CONTRACTOR for services the CONTRACTOR had completed as of the date of termination, less the amount of all pre vious payment with respect to the Compensation. Further, upon such a termination for convenience by the CITY, the Parties agree that the CONTRACTOR shall be reimbursed for any “non- refundable” costs that the CONTRACTOR has incurred for its services under this Agreement, provided that: (1) such “non- refundable” costs were incurred by the CONTRACTOR prior to the d ate of termination, and (2) that t h e CONTRACTOR provides the CITY with adequate proof that the CONTRACTOR incurred the costs, and is unable to be seek a refund for such costs. Such “non- refundable” costs may include, but are not limited to, travel reservations incurred by the CONTRACTOR for its performance of services under this Agreement. The CONTRACTOR agrees to ce ase all work under this Agreement on or b efore the effective date of any notice of termination.

SECTION 9. EMPLOYMENT OF CITY EMPLOYEES.

No regular employee of the CITY shall be employed by the CONTRACTOR during the term of this Agreement.

SECTION 10. NON-LIABILITY OF CITY OFFICIALS AND EMPLOYEES.

No official or employee of the CITY shall be personally liable to the CONTRACTOR in the event of any default or breach by the CITY, or for any amount which may become due to the CONTRACTOR.

PROFESSIONAL SERVICES AGREEMENT NO. 4031

SECTION 11. INDEPENDENT CONTRACTOR.

a. The CONTRACTOR is and sha ll, at all times, remain as to the CITY a wholly independent contractor. Neither the CITY nor any of its elected officials, officers, employees, or a gents shall h ave control o ver the conduct of the CONTRACTOR except as expressly set forth in this Agreement. The CONTRACTOR shall not at any time or in any manner represent that he or she is in any manner an elected official, officer, employee, or agent of the CITY. No employee benefits shall be available to the CONTRACTOR in connection with the performance of this Agreement. Except as provided in this Agreement, the CITY shall not pay salary, wages, or other compensation to the CONTRACTOR for performance hereunder for the CITY, the CITY shall not be liable for compensation to the CONTRACTOR, the CONTRACTOR’s employees or the CONTRACTOR’s subcontractors for injury or sickness arising out of p erforming services hereunder.

b. The parties further acknowledge and agree that nothing in this Agreement sh all create or be construed to create a p artnership, joint venture, employment relationship or a ny other relationship e xcept as set forth in this Agreement.

c. The CITY shall not deduct from the Compensation paid to the CONTRACTOR any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may n ot be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to the CONTRACTOR. The CITY shall have no responsibility to p rovide the CONTRACTOR, its employees or subcontractors with workers’ compensation insurance or any other insurance.

SECTION 12. CalPERS ANNUITANTS AND ELIGIBILITY INDEMNITY.

a. If the CONTRACTOR is a California Public Employees’ Retirement System (“CalPERS”) annuitant, the CONTRACTOR must provide the City with written notification of such fact a minimum of 14 calendar days prior to commencement of services under this Agreement. Failure to provide such notification may result in termination of the Agreement, and any penalties or other costs relating thereto shall be borne by the CONTRACTOR. If this Agreement remains in place, the CONTRACTOR shall execute any amendment(s) to this Agreement requested by the City in order to comply with all laws and regulations applicable to CalPERS annuitants.

b. In the event that the CONTRACTOR or any employee, agent, or subcontractor of the CONTRACTOR providing services under this Agreement claims or is d etermined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the CITY, the CONTRACTOR shall indemnify, defend, and hold harmless the CITY for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of t h e CONTRACTOR or its employees, agents, or subcontractors, as well as for the payment of any p enalties and interest on such contributions, which would otherwise be the responsibility of the CITY.

c. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the co ntrary, the CONTRACTOR and any of its

PROFESSIONAL SERVICES AGREEMENT NO. 4031

employees, a gents, a nd subcontractors providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by t h e CITY, including but not limited to eligibility to enroll in PERS as an employee of the CITY and entitlement to any contribution to be paid by t h e CITY for employer contribution and/or employee contributions for PERS benefits.

SECTION 13. LEGAL RESPONSIBILITIES.

The CONTRACTOR shall at all times observe and comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local g overnments including, but not limited to the Montebello Municipal Code. The CITY, and its appointed or elected officers, employees, or agents, shall not be liable at law or in equity occasioned by failure of the CONTRACTOR to comply with this section.

SECTION 14. INDEMNIFICATION.

The CONTRACTOR agrees to, and shall d efend, indemnify, protect a nd hold harmless, the CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers from and against any a nd all claims, demands, lawsuits, defense costs, civil, penalties, expenses, causes of action, and judgments at law or in equity, or liability of any kind or nature which the CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers may sustain or incur or which may be imposed upon them for injuries or deaths of persons, or damage to property arising out of t h e CONTRACTOR’s negligent or wrongful act, or omission under the terms of this Agreement, except only liability arising out of the sole negligence of the CITY.

SECTION 15. INSURANCE COVERAGE.

a. During the term of this Agreement, the CONTRACTOR shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with CONTRACTOR’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:

  Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis for bodily injury and property d amage, including products-completed o perations, personal injury, and advertising injury, with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, the limit shall be twice the required occurrence limit.

  Business Automobile Liability Insurance: If applicable, Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if the CONTRACTOR has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.

  Worker's Compensation insurance as required by the laws of the State of California, with Statutory L imits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.

  Professional Liability insurance appropriate to the

PROFESSIONAL SERVICES AGREEMENT NO. 4031

CONTRACTOR’S profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.

b. If the CONTRACTOR maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR.

c. The CONTACTOR shall require each of its subcontractors, if any, to maintain insurance coverage that meets all of the requirements of this Agreement.

d. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a current rating of at least A:VII in the latest edition of Best's Insurance Guide.

e. Each insurance policy required above shall state that coverage shall not be canceled, except after thirty (30) days’ prior written notice (ten [10] days for non-payment) has been given to the CITY. The CONTRACTOR agrees that if it does not keep the aforesaid insurance in full force and effect the CITY may either (i) immediately terminate this Agreement for Cause; or (ii) take out the necessary insurance and pay, at the CONTRACTOR’s expense, the premium thereon.

f. Evidence of Insurance prior to commencement . The Contractor shall provide to the CITY Certificate(s) of Insurance evidencing such coverage together with copies of the required policy endorsements no later than five (5) business days prior to commencement of service and at least fifteen (15) business days prior to the expiration of any policy. Unreasonable failure to provide such evidence may be cause for term ination of the Agreement as provided herein or delay the services’ commencement date. The evidence of insurance shall be U.S. mail or email to:

City of Montebello
Attn: Risk Manager
1600 West Beverly Boulevard
Montebello, CA 90640
Email: [email protected]

g. Coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits, non -renewed, or materially changed for any reason, without thirty (30) days prior written notice thereof given by the insurer to the CITY by U.S. mail, or by personal delivery, except for nonpayment of premiums, in which case ten (10) days prior notice shall be provided.

Evidence of Insurance during the entire term of the Agreement. At all times during the term of this Agreement, the CONTRACTOR shall maintain on file with the CITY’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and naming the CITY as an additional insured. The CONTRACTOR shall, prior to commencement of work under this Agreement, file with the CITY’s Risk Manager such certificate(s).

h. The CONTRACTOR shall provide proof that p olicies of insurance required herein e xpiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages.

PROFESSIONAL SERVICES AGREEMENT NO. 4031

i. The general l i a b i l i t y and a u t o m o b i l e p o l i c i e s o f insurance required by this Agreement shall contain an endorsement naming the CITY, its officers, employees, agents and volunteers as additional insureds. All of the policies required u nder this Agreement shall co ntain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to the CITY. The CONTRACTOR agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.

j. The insurance provided by the CONTRACTOR shall be primary to any coverage a vailable to the CITY. Any insurance or self-insurance maintained by the CITY, its officers, emp loyees, agents, or volunteers, shall be in excess of CONTRACTOR’s insurance and shall not contribute with it.

k. All insurance coverage pro vided pursuant to this Agreement shall not prohibit the CONTRACTOR, and CONTRACTOR’s employees, agents or subcontractors, from waiving the right of subrogation prior to a loss. The CONTRACTOR hereby waives all rights of subrogation against the CITY.

l. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, the CONTRACTOR shall either reduce or eliminate the deductibles or self-insured retentions with respect to the CITY, or the CONTRACTOR shall procure a bond guaranteeing payment of losses and expenses.

m. Procurement of insurance by the CONTRACTOR shall not be construed as a limitation of the CONTRACTOR'S liability or as full performance of CONTRACTOR’s duties to indemnify, h old ha rmless and d efend und er the indemnity covenants of this Agreement.

SECTION 16. SUBCONTRACT, ASSIGNMENT OR DELEGATION.

The CONTRACTOR shall not subcontract, delegate, or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of the CITY.

Any proposed subcontract, delegation, or assignment shall provide a description of the services to be covered, identification of the proposed sub-contractor, delegee, or assignee, and an explanation of why and how the same was selected, including the degree of competition involved.

Any su bcontract, delegation or assignment shall be made in the name of the CONTRACTOR and shall not bind or purport to bind the CITY and shall not release the CONTRACTOR from any obligations und er this Agreement including, but n ot limited to, the duty to properly supervise and coordinate the work of employees, assignees, d elegees or sub-contractors. No such subcontract, delegation or assignment shall result in any increase in the amount of total compensation payable to the CONTRACTOR under the Agreement.

SECTION 17. NO WAIVER.

Waiver by any party hereto of any term, condition or covenant of this Agreement shall not constitute the waiver of any other term, condition, or covenant hereof.

PROFESSIONAL SERVICES AGREEMENT NO. 4031

SECTION 18. DISPUTE RESOLUTION; GOVERNING LAW.

Disputes regarding the interpretation or application of any p rovision(s) of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the Parties. If any action at law or in equity is brought to enforce this Agreement or b ecause of alleged dispute, breach, default or misrepresentation in connection with the provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney’s fees, expert fees, costs a nd necessary d isbursements incurred in that action or proceeding, in addition to such other relief as may be sought and awarded. The venue for any litigation shall be County of Los Angeles, California. The Parties agree that the covenants contained in this Section shall survive the expiration or termination of this Agreement.

SECTION 19. ATTORNEY’S FEES AND COSTS.

If litigation is reasonably required to enforce or interpret the provisions of this Agreement, the prevailing party in such litigation shall be entitled to an a ward of reasonable attorney's fees and costs in addition to any other relief to which it may be entitled.

SECTION 20. WARRANTIES.

Each of the parties represents and warrants to one another as follows:

a. It has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement;

b. In executing this Agreement, it has carefully read this Agreement, knows the contents thereof, and h as relied solely on the stateme nts expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or promise of any other party, or any other person or entity, not expressly set forth herein, nor upon the failure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever; and

c. It is a greed that each party has the full right and authority to enter into this Agreement, and that the person executing this Agreement on behalf of either party has the full right and authority to fully commit and bind such party to the provisions of this Agreement.

SECTION 21. MISCELLANEOUS.

a. The descriptive paragraph headings of this Agreement are included for purposes of convenience only and shall not control or affect the construction of interpretation of any of its provisions.

b. Whenever the context hereof shall so require, the singular shall include the plural, the male gender shall include the female gender, and the neuter and vice versa.

c. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invali d, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained herein.

PROFESSIONAL SERVICES AGREEMENT NO. 4031

d. The representations and warranties made by the parties to this Agreement shall survive the consummation of the transaction herein described.

e. This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile transmission, shall for all purposes be treated as if it were delivered conta ining an original manual signature of the party whose signature appears in the facsimile and shall be binding upon such party in the same manner as though an originally signed copy had been delivered.

f. Each of the parties acknowledges that it has been represented by independent counsel of its own choosing, or if it has not been so represented, it has been admonished to obtain independent counsel and has freely and voluntarily waived and relinquished the right to counsel. Each party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such party’s failure to perform under this Agreement or any agreement referred to in this Agreement.

SECTION 22. NOTICE.

All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered via e- mail (an “Electronic Notice” as further defined below), personally or on the second (2nd) business day af ter the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as h ereinafter pro vided. All notices, demands, requests, or approvals hereunder shall be given to the following addresses or such other addresses as the Parties may designate by written notice:

If to CITY: City of Montebello
Attn: René Bobadilla, City Manager
1600 W Beverly Blvd
Montebello, CA 90640
(323) 887 -1200

With a copy to: City of Montebello – Human Resources Department Attn: Nicholas Razo, Director of Human Resources
1600 W Beverly Blvd
Montebello, CA 90640
(323) 887 -1200 x 419
[email protected]

If to Contractor: Governmentjobs, Inc. dba NEOGOV.

Attn: Kim Goerlitz, Sales Representative
2122 Park Pl, Suite 100
El Segundo, CA 90245
(888) 636-4681
[email protected]

An electronic communication (“ Electronic Notice ”) shall be deemed written notice for purposes of this section if sent to the electronic mail address specified above. Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives verification of receipt by the receiving party. Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form.

PROFESSIONAL SERVICES AGREEMENT NO. 4031

SECTION 23. NON-DISCRIMINATION AND EQUAL OPPORTUNITY
EMPLOYER.

In the performance of this Agreement, the CONTRACTOR shall not discriminate against any employee, sub-contractor, or applicant for employment because of race, color, creed, religion, sex, marital status, national or igin, ancestry, age, p hysical or mental h andicap, mental co ndition or sexual orientation. The CONTRACTOR will take affirmative action to e nsure that sub- contractor and a pplicants are employed, a nd that employees are treated d uring employment, without regard to their race, color, creed, religion, sex, marital status, national ori gin, a ncestry, age, physical or mental h andicap, medical co ndition or sexual orientation.

SECTION 24. CONFLICT OF INTEREST.

The CONTRACTOR covenants that it presently has no intere st and shall not acquire any interest, direct or indirect, which may be affected by the services to be p erformed by the CONTRACTOR under this Agreement, or which would conflict in any manner with the p erformance of its services h ereunder. The CONTRACTOR further co venants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, the CONTRACTOR shall a void the a ppearance of having any interest that would conflict in any manner with the p erformance of its services pu rsuant to this Agreement.

The CONTRACTOR covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to t h e CITY as a result of the p erformance of this Agreement, or the services that may be procured by the CITY as a result of the recommendations made by the CONTRACTOR. The CONTRACTOR's co venant under this section sh all sur vive the termination of this Agreement.

SECTION 25. ENTIRE AGREEMENT.

This Agreement contains the entire u nderstanding between the CITY a nd the CONTRACTOR. Any prior agreements, promises, negotiations or representations not expressly set forth herein are of no force or effect. Subsequent modifications to this Agreement shall be effective only if in writing and signed by each party. If any term, condition, or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall be valid and binding.

[SIGNATURE PAGE TO FOLLOW]

PROFESSIONAL SERVICES AGREEMENT NO. 4031

IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Agreement as of the date first written above.

(“CITY”) (“CONTRACTOR”)
CITY OF MONTEBELLO GOVERNMENTJOBS, INC. dba
NEOGOV.

René Bobadilla, City Manager Kim Goerlitz, Sales Representative Date: ___________ Date: ____________

ATTEST:

Christopher Jimenez, City Clerk

APPROVED AS TO FORM:

Arnold M. Alvarez-Glasman, City Attorney

EXHIBITS
 Exhibit A – Contractor’s Scope of Services and Associated Cost

Exhibit “A”
CONTRACTOR’S SCOPE OF SERVICES

ITEM # 13

CITY OF MONTEBELLO

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA STAFF REPORT

TO:

Honorable Mayor and City Council Members
FROM:

René Bobadilla, P.E., City Manager
BY:

James Enriquez, Director of Public Works
SUBJECT: AWARD OF CONSTRUCTION CONTRACT - MONTEBELLO
MUNICIPAL GOLF COURSE RENOVATION PROJECT, PHASE 1 (CP
NO. 894-1)

DATE: October 12, 2022

RECOMMENDATION(S):

It is recommended that the City Council:

1) Award a construction contract for the Montebello Municipal Golf Course Renovation Project Phase 1 (CP No. 894-1) in the amount of $5,094,000 to Los Angeles Engineering, Inc.; and

2) Authorize the Director of Public Works to review and approve change orders within a 10% contingency of the contract amount; and

3) Authorize the City Manager to execute the Contract Agreement, on behalf of the City; and

4) Award Task Order No. 4 via an Engagement Letter under Master Retainer Agreement No. 3919 with AIM Consulting Services for Construction Management and Inspection Services for the project for a not-to-exceed-fee of $1,283,543; and

5) Approve a reimbursement payment to Trend Sports, LLC in the amount of $494,705 for conceptual pre-design project development costs; and

6) Approve the Total Project Budget (Attachment A); and

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF OCTOBER 12, 2022

7) Approve the Notice of Exemption (Attachment D) for the subject project and authorize the City Clerk to file the Notice of Exemption with Los Angeles Registrar-Recorder; and

8) Take such additional, related, action that may be desirable.

FISCAL IMPACT:

On September 14, 2022, the City Council authorized the sale of lease revenue bonds (Series 2022A) in an amount not-to-exceed $16.5 million to fund the design and construction of the Golf Course Renovation Project. The recommended agreements and reimbursement are project expenses and will be paid from bond proceeds.

Staff will create a separate capital project fund to track related design and construction costs related to the Golf Course Renovation Project, as well as the bond proceeds recognized as revenue. Once bonds are issued (approximately mid-October), proceeds will be used to reimburse the City for all related design and construction costs for this project.

In addition, the City has available Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) that will be utilized to fund the gap between bond proceeds and total project budget. Per Federal Final Rule guidelines (April 2022), the City utilized the "revenue loss" category of the American Rescue Plan Act (ARPA) to utilize the $16.59 million in CSLFRF revenue. A portion of the funds have already been recognized in the General Fund to mediate the lost revenue from the pandemic, with additional funds reserved for the citywide information technology backbone and upgrade project. The Interim Final Rule and Final Rule provided clear guidance to cities utilizing the flexibility of the "revenue loss" category of ARPA. Since the City's total revenue loss calculation exceeded the award amount, the entire $16.59 million is being utilized per the guidelines of the "revenue loss" category.

Subsequent actions will be presented to the City Council to appropriate funds for this capital project in a newly created capital project fund. No budget amendment is necessary at this time.

BACKGROUND:

The City Council approved a Sublessee Development and Participation Agreement with TopGolf on March 24, 2021 for the Driving Range Relocation Project (“DRR Project”).

The DRR Project is adjacent to the Montebello Municipal Golf Course Renovation Project (“GCR Project”) and is located along the Via Campo frontage of the golf course campus.

The GCR Project proposes to renovate a portion of the existing Montebello Municipal Golf Course property located immediately south of the DRR Project and northwest of the Quiet Cannon event center. The GCR project area is approximately 72.5 acres of the entire 118 acre golf course campus. The proposed project will replace the existing 18- hole golf course with a new and modern first-class championship golf course complex

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF OCTOBER 12, 2022

that will complement the adjacent TopGolf facility and existing hotels and Quiet Cannon event center. The project will include a new 9-hole championship golf course with a new club house and putting green complex and a new 6-hole (10-hole at night) Par 3 golf course with lights.

The construction of the Golf Course Renovation Project will be phased as follows:

Phase 1 – Golf course rough site work construction (Civil Contractor) including rough grading, underground and utilities construction, pavement and concrete flatwork;

Phase 2 – Golf course construction (Golf Course Contractor) including finished grading, construction of golf course features (i.e. tee boxes, fairways, greens and sand traps), turf and landscaping; and

Phase 3 – Clubhouse construction.

On August 1, 2022, the City Council authorized the publishing of the Notice Inviting Bids for all three phases.

The Notice Inviting Bids was published on August 25, 2022, in the local newspaper and the Green Sheet in accordance with the California Public Contract Code. The notice, plans and specifications were also posted on Planet Bids through the City of Montebello’s Website, per the City’s municipal code, Chapter 3.20 et al.

On September 22, 2022 at 10:00 AM, four(4) bids were received and opened publicly, as follows:

Los Angeles Engineering, Inc. $ 5,094,000 Griffith Company $ 5,968,869 Mehta Mechanical Company, Inc. $ 7,754,000 Mike Bubalo Construction Co., Inc. $10,894,079

The bids were analyzed and Los Angeles Engineering, Inc., was determined to be the lowest responsive and responsible bidder. Award of a construction contract to Los Angeles Engineering, Inc. in the amount of $5,094,000 is recommended.

The anticipated project schedule is as follows:

Award of Contract October 12, 2022 Start Construction November 2022 Complete Construction November 2023

The Notice Inviting Bids for Phase 2 was published on September 27, 2022. The publishing for the Phase 3 Notice Inviting Bids is anticipated in the next 30 days.

Construction management and inspection for all phases will be performed by AIM Consulting Services, one of the City’s as-needed construction management/inspection

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF OCTOBER 12, 2022

consultants.

ENVIRONMENTAL IMPACT:

Pursuant to the California Environmental Quality Act (CEQA) Guidelines Section 15301, the recommended improvements are categorically exempt under Class 1(c) for existing facilities. Under CEQA, a project is exempt if the scope of work is limited to the repair, maintenance, and minor alterations of an existing facility and involves negligible or no expansion of the existing or former use. The project does not change the existing use as a golf course and, furthermore, that use is actually reduced since the project will replace an 18-hole golf course with a 9-hole golf course and a smaller 6-hole par 3 golf course.

ANALYSIS:

The Total Project Budget (TPB) is included in Attachment A. The total amount budgeted for this project -- all phases, hard and soft costs -- is $20,300,000. A summary of the projected cost is included in the TPB (Attachment A) and there are sufficient project funds available for all of the recommended agreements/reimbursements recommended in this staff report, utilizing Lease Revenue Bond Series 2022B proceeds plus available CSLFRF revenue.

Construction Management and Inspection Services
AIM Consulting Services (ACS) was selected for the City’s On-call Construction Management / Inspection Bench List in response to RFP No. 21-32, a qualification based selection. Master Retainer Agreement No. 3919 with ACS was approved by the City Council on October 13, 2021. The recommended Engagement Letter is Task No. 4 for ASC. The fee proposed by ACS is based on the contractual hourly rate, per the Master Retainer Agreement, for the staff that will be working on the project. Hours will be tracked monthly. It is estimated that the work for the duration of construction will require 7,200 hours at a total cost of $1,283,543; including soil/material testing and labor compliance subconsultant services and construction management software fees.

Reimbursement to Trend Sports LLC
Staff reviewed invoices submitted by Trend Sports for various engineering, architectural and other project development services that were required in the conceptual development of the project. These services include aerial surveying, geotechnical investigation, golf course routing layout, building programming and conceptual layouts and renderings for the clubhouse, preliminary grading and drainage analysis, and traffic impact analysis. The work produced by these various consultants was instrumental in marketing the proposed project to potential tenants and ultimately in gaining the interest of Topgolf. The aggregate cost of these services was $494,705.

DISCUSSION:

N/A

SUMMARY:

CITY COUNCIL AND PUBLIC FINANCING AUTHORITY AGENDA REPORT - MEETING OF OCTOBER 12, 2022

Upon approval of the recommended actions, staff will execute the contract agreements with Los Angeles Engineering, Inc. and AIM Consulting Services and coordinate the completion of the Project.

ATTACHMENT(S)

1. Attachment A - Total Project Budget

2. Attachment B - Agreement No. 4006

3. Attachment C - Letter of Engagement (ACS Task No. 4)

4. Attachment D - Notice of Exemption

NEXT STEPS:

N/A

ATTACHMENT A

MONTEBELLO MUNICIPAL GOLF COURSE RENOVATION PROJECT
(PHASE 1)

C.P. No. 894-1

TOTAL PROJECT BUDGET

Project Expenses
Estimated
Cost
Conceptual Pre-Design Project Development (Trend Sports, LLC) (Recommended) $494,705
Program Management Service (AIM CS – Auth 11/10/21) $382,720 Additional Services (Auth7/27/22 ) $188,841
Architectural/Engineering Design Service (Sportfive – Auth 11/10/21) $1,238,290 Additional Services (Auth 5/11/22) $188,790
Additional Services (Auth 7/27/22) $149,980
Additional Services (Administrative Auth 10/3/22) $7,928 Construction Management / Inspection – (AIM CS) (Recommended) $1,283,543 Phase 1 – Grading and Utilities Construction
(Los Angeles Engineering, Inc.) – (Recommended) $5,094,000 Phase 1 Construction Contingency (10%) $509,400
Phase 2 – Golf Course Construction (Estimated) $8,000,000 Irrigation Pump Station Purchase (MCI-Flowtronex – Auth 9/28/22) $295,000 Phase 3 – Clubhouse Construction (Budget) $2,466,803
Total Projected Cost: $20,300,000

Project Funding
Estimated
Budget
Lease Revenue Bonds (Series 2022A) $15,300,000
Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) $5,000,000 Total Projected Budget: $20,300,000

CITY OF MONTEBELLO

STANDARD PUBLIC WORKS AGREEMENT NO. 4006

THIS STANDARD PUBLIC WORKS AGREEMENT (“AGREEMENT”) is made and entered into on October 13, 2022 (“Effective Date”) by and between the CITY OF MONTEBELLO, a California municipal corporation (the “CITY”) and LOS ANGELES ENGINEERING, INC., a California corporation (“CONTRACTOR”). The CITY and CONTRACTOR are sometimes referred to herein individual as the “Party,” and jointly as the “Parties.”

RECITALS

WHEREAS, the CITY desires to retain a qualified professional contractor to provide work consisting of the construction of rough site work, utilities and pavement for the Montebello Municipal Golf Course Renovation Project (Phase 1) (C.P. No. 894-1) (“PROJECT”); and

WHEREAS, on October 12, 2022, the City Council accepted the bid of CONTRACTOR as the lowest r esponsible, responsive bid received and directed that a written contract be entered into with CONTRACTOR for the PROJECT; and

WHEREAS, CONTRACTOR represents that it is fully qualified to perform such services by virtue of its experience and the training , education and expertise of its principals and employees.

NOW, THEREFORE , in consideration of the promises and the mutual covenants and agreements herein contained, the parties do hereby agree as follows:

SECTION 1. INCORPORATION OF RECITALS AND CONTRACT DOCUMENTS

a. The above-referenced Recitals constitute a material part hereof and shall hereby be incorporated by reference. Moreover, the CONTRACT DOCUMENTS for the PROJECT shall consist of the Notice Inviting Sealed Bids, the Instructions to Bid ders, Bidders Proposal, Project Manual and Special Provisions, Addendums, CONTRACTOR’s Bid for the PROJECT, Scope of Work, general specifications and all referenced specifications, details, standard drawings, and appendices, together with this Agreement and all required bonds, and insurance certificates. All of the “ Agreement Documents” are intended to complement the other documents so that any work called for in one, and not mentioned in the others, or vice versa, is to be executed the same as if mentione d in all of said documents. The CONTRACT DOCUMENTS are incorporated herein by this reference and made part hereof as though they were fully set forth herein.

b. In case any of the CONTRACT DOCUMENTS conflict with each other, the order of preference for the CONTRACT DOCUMENTS is:

STANDARD PUBLIC WORKS AGREEMENT NO. 4006

1. This AGREEMENT and its Exhibits and or Attachments, including any and all addenda or supplemental agreements.

2. CONTRACTOR’S September 22, 2022 electronic bid

3. Standard drawings

4. Details

5. Special provisions, if any

6. General specifications and all referenced specifications

SECTION 2. THE WORK

For and in consideration of the payments and agreements to be made and performed by the CITY, CONTRACTOR agrees to furnish all materials and perform all work required for the PROJECT and to fulfill all other obligations as set forth in the CONTRACT DOCUMENTS.

SECTION 3. TERM; AND TIME FOR COMPLETION

a. The work shall commence upon issuance of a written “Notice to Proceed” (as further defined below) by the CITY. Work for the PROJECT shall be completed within thirty-five (35) working days from the issuance of the Notice to Proceed. This Agreement shall expire three (3) months from the Effective Date, unless terminated earlier as hereinafter provided. This Agreement may be extended for a n additional three (3) months upon such terms and conditions mutually agreed upon by the Parties in writing.

b. Notice to Proceed. Any work or service contemplated under this Agreement shall not commence until the CITY has issued a written Notice to Proceed issued by the CITY’s applicable, department head.

SECTION 4. COMPENSATION

CONTRACTOR hereby agrees to receive and accept the total lump sum amount of Five Million Ninety-four Thousand Dollars ($5,094,000), which is based on performing all of the work shown on Bidders Proposal as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder. Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the CONTRACT DOCUMENTS, and also including those arising from actions of the elements, unf oreseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work. CITY shall herein retain five percent (5%) of said price until said time as the provisions of SEC. 18 herein have been met.

4.1. Progress Payments

Progress Payments shall be made in accordance with section the General Provisions and the provisions of this Section 4.1. Upon receipt of a properly presented payment request,

STANDARD PUBLIC WORKS AGREEMENT NO. 4006

the CITY shall process the payment request in accordance with Public Contract Code Section 20104.50. The CITY shall review the payment request as soon as possible. If the CITY rejects the payment request, it shall be returned to the CONTRACTOR within seven (7) days of its receipt by the CITY with an explanation for the reasons of its rejection. If the payment request is approved in writing by the CITY, payment shall be made in thirty (30) days of receipt of an undisputed and properly presented payment request. Late payments shall bear interest at the legal rate of interest in accordance with Code of Civil Procedure 685.010. The CITY shall pay CONTRACTOR a sum based upon ninety five percent (95%) of the Agreement price apportionment of the labor and materials incorporated into the work under the Agreement during the period covered by said statement. The remaining five percent (5%) thereof shall be retained as performance security. Refer to Section 4.2 of this Agreement for retention of funds.

4.2. Retention of Funds

Progress payments shall be made in accordance with the provisi ons of Section 4.1 of this Agreement. In accordance with said section, the CITY shall pay CONTRACTOR a sum based upon ninety five percent (95%) of the Agreement price in proportion to the labor and materials incorporated into the work under the Agreement during the month covered by said statement. The remaining five percent (5%) thereof shall be retained as performance security to be paid to the CONTRACTOR within sixty (60) days after final acceptance of the work by the City Council of the CITY (“City Cou ncil”), after CONTRACTOR shall have furnished the CITY with a release of all undisputed Agreement amounts, if required by the CITY. In the event there are any claims specifically excluded by CONTRACTOR from the operation of the release, the CITY may retai n proceeds (per Public Contract Code 7107) of up to 150% of the amount in dispute. CITY’s failure to deduct or withhold shall not affect CONTRACTOR’s obligations hereunder.

4.3. Substitution of Securities

Pursuant to Public Contract Code Sec. 22300, CONTRACTOR shall be allowed to substitute securities for any moneys withheld by the CITY to ensure performance under an Agreement, unless, federal regulations or policies, or both, do not allow the substitution of securities. At the request and expense of CO NTRACTOR, securities equivalent to the amount withheld shall be deposited with the CITY, or with a state or federally chartered bank in this state as the escrow agent, who shall then pay those moneys to CONTRACTOR. Upon satisfactory completion of the Agreement, the securities shall be returned to CONTRACTOR.

SECTION 5. UNDOCUMENTED WORKERS

CONTRACTOR hereby promises and agrees to comply with all of the provisions of Federal and/or State law as the same shall apply to this PROJECT pertaining to the employment of unauthorized aliens as defined therein. Should CONTRACTOR so employ unauthorized aliens for the performance of work and/or services covered by this Agreement, and should the Federal Government impose sanctions against the CITY for use of unauthorized aliens, CONTRACTOR hereby agrees to, and shall, hold harmless, indemnify and defend C ITY for

STANDARD PUBLIC WORKS AGREEMENT NO. 4006

the cost of all such sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by the CITY in connection therewith.

SECTION 6. NOTICE TO PROCEED

CONTRACTOR shall commence work on the date specified in th e Notice to Proceed to be issued in writing to CONTRACTOR by the CITY and shall complete work on the PROJECT within 60 Working Days from the commencement thereof.

SECTION 7. DISCOVERY OF HAZARDOUS OR LATENT CONDITIONS

a. CONTRACTOR shall, without disturbing the condition, notify the CITY in writing as soon as CONTRACTOR, or any SUB -CONTRACTOR, agent or employees have knowledge and reporting is possible, of the discovery of any of the following conditions:

1. The presence of any material that the CONT RACTOR believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code;

2. Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or,

3. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement.

b. Pending a determination by the CITY of appropriate action to be taken, CONTRACTOR shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person.

c. The CITY shall promptly investigate the reported conditions. If the CITY, through the City Engineer or his/h er designee, and in the exercise of its sole discretion, determines that the conditions do materially differ, or do involve hazardous waste, and will cause a decrease or increase in CONTRACTOR’s cost of or time required for performance of any part of the work, then the CITY shall issue a change order.

d. In the event of a dispute between the CITY and CONTRACTOR as to whether the conditions materially differ or involve hazardous waste or cause a decrease or increase in CONTRACTOR’s cost of, or time required for performance of any part of the work, CONTRACTOR shall not be excused from any schedule completion date, and shall proceed with all work to be performed under the Agreement. CONTRACTOR shall retain any and all rights which pertain to the resolution of disputes and protests between the parties.

SECTION 8. MISCELLANEOUS STATUTORY REQUIREMENTS

8.1. CONTRACTOR License.

STANDARD PUBLIC WORKS AGREEMENT NO. 4006

CONTRACTOR shall possess a california CONTRACTOR’s license type Class A for the performance of the Project.

8.2. Ineligible CONTRACTOR Prohibited.

Any CONTRACTOR or SUB -CONTRACTOR who is ineligible to perform work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code is prohibited from performing work under this Agreement.

8.3. Compliance with SB 854 Registration.

This PROJECT is subject to compliance monitoring and enforcement by the Department of Industrial Relations. No prime CONTRACTOR or SUBCONTRACTOR may be awarded an Agreement for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. CONTRACTOR will be required to post job site notices as described in 8 California Code of Regulation section 16451(d).

8.4. Trench and Pipeline Safety.

If this Agreement is for more than $25,000 and involves excavation of any trench five feet or more in depth, CONTRACTOR shall submit a detailed plan of shoring, bracing, sloping or other provisions to be made for worker protection in accorda nce with Labor Code Section 6705. Such plan shall be approved by a qualified representative of the CITY.

8.5. Utility Relocation.

The CITY is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications.

The CITY shall reimburse CONTRACTOR for any costs incurred in locating, repairing damage not caused by CONTRACTOR and removing or relocating such unidentified utility facilities, including equipment idled during such work. CONTRACTOR shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.

8.6. Third Party Claims Notification.

The CITY shall timely notify CONTRACTOR in writing of any third party claims relating to the Agreement.

8.7. Unfair Business Practices Claims.

The CONTRACTOR or SUB -CONTRACTOR offers and agrees to assign to the CITY all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising

STANDARD PUBLIC WORKS AGREEMENT NO. 4006

from purchases of goods, services or material s pursuant to the public works Agreement or the sub-Agreement. This assignment shall be made and become effective at the time the CITY renders final payment to CONTRACTOR without further acknowledgment by the parties. (Section 7103.5, California Public Contract Code.).

8.8. Day’s Work.

CONTRACTOR acknowledges that under California Labor Code sections 1810 and following, eight (8) hours of labor constitutes a legal day’s work. CONTRACTOR will forfeit as a penalty to CITY the sum of $25.00 for each work er employed in the execution of this Agreement by CONTRACTOR or any SUB -CONTRACTOR for each calendar day during which such worker is required or permitted to work more than eight (8) hours in any one calendar day and 40 hours in any one calendar week in vi olation of the provisions of Labor Code section 1810. (Labor Code § 1813).

8.9. Payroll Records.

CONTRACTOR shall maintain the certified payroll records required by Labor Codes Sec. 1776 and shall report such records directly to the California Labor Commissioner as required by Labor Code Sec. 1771.4. CONTRACTOR shall inform the CITY of the location of the records enumerated under Labor Code Sec. 1776, including the street address, city, and county, and shall, within five working days, provide a notic e of a change of location and address.

8.10. Employment of Apprentices.

Nothing in this Agreement prevents CONTRACTOR or any SUB -CONTRACTOR from employing properly registered apprentices in the execution of the Agreement.

CONTRACTOR is responsible for compliance with Labor Code section 1777.5 for all apprenticeable occupations. This statute requires that CONTRACTORs and SUBCONTRACTORs must submit Agreement award information to the applicable joint apprenticeship committee, must employ apprentices in apprenticeable occupations in a ratio of not less than one hour of apprentice’s work for every five hours of labor performed by a journeyman (unless an exception is granted under §1777.5), must contribute to the fund or funds in each craft or trade or a like amount to the California Apprenticeship Council, and that CONTRACTORs and SUB -CONTRACTORs must not discriminate among otherwise qualified employees as apprentices solely on the ground of sex, race, religion, creed, national origin, ancestry or color. Onl y apprentices defined in Labor Code section 3077, who are in training under apprenticeship standards and who have written apprentice Agreements, may be employed on public works in apprenticeable occupations.

8.11. Records Audit

In accordance with Govern ment Code, Section 8546.7, records of both the CITY and CONTRACTOR shall be subject to examination and audit by the Auditor General for a period of three (3) years after final payment.

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SECTION 9. PREVAILING WAGES

a. CONTRACTOR shall pay prevailing Wage rates for this Project in accordance with the “General Wage Determination Made by the Director of Industrial Relations (“DIR”) Pursuant To California Labor Code, Part 7, Chapter 1, Article 2, Sections 1770, 1773 and 1773.1", for Los Angeles County. Wage rates shall conform with those posted at the DIR website and the Project site.

b. The following Labor Code sections are hereby referenced and made a part of this Agreement:

1. Section 1775 - Penalty for Failure to Comply with Prevailing Wage Rates.

2. Section 1777.4 - Apprenticeship Requirements.

3. Section 1777.5 - Apprenticeship Requirements.

4. Section 1813 - Penalty for Failure to Pay Overtime.

5. Sections 1810 and 1811 - Working Hour Restrictions.

6. Section 1775 - Payroll Records.

7. Section 1773.8 - Travel and Subsistence Pay.

SECTION 10. INDEMNITY, DEFENSE AND HOLD HARMLESS

a. CONTRACTOR shall indemnify, defend with legal counsel approved by the CITY, and hold harmless the CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with CONTRACTOR's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by t he sole or active negligence or willful misconduct of the CITY. Should conflict of interest principles preclude a single legal counsel from representing both the CITY and CONTRACTOR, or should the CITY otherwise find CONTRACTOR’s legal counsel unacceptable , then CONTRACTOR shall reimburse the CITY its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. CONTRACTOR shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of CONTRACTOR’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provi sions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.

b. CONTRACTOR obligations under this section apply regardless of whether such claim, charge, damage, dem and, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee.

However, without affecting the rights of the CITY under any provision of this agreement, CONTRACTOR shall not be required to indemnify and hold harmless the CITY for liability attributable to the active negligence of CITY, provided such active negligence is determined

STANDARD PUBLIC WORKS AGREEMENT NO. 4006

by agreement between the parties or by the findings of a court of competent jurisdi ction. In instances where the CITY is shown to have been actively negligent and where the CITY’S active negligence accounts for only a percentage of the liability involved, the obligation of CONTRACTOR will be for that entire portion or percentage of liabi lity not attributable to the active negligence of the CITY.

SECTION 11. BONDS

a. CONTRACTOR, before commencing said PROJECT, shall furnish and file with the CITY, a Performance Bond, or bonds in the sum of one hundred percent (100%) of the Agreement price thereof conditioned upon the faithful performance of this Agreement in the form attached hereto as Exhibit “B.”.

b. CONTRACTOR, before commencing said PROJECT, shall furnish and file with CITY, a Payment Bond in the sum of 100% of the Agreement price, conditioned upon the payment of all labor and materials furnished in connection with this Agreement in the form attached hereto as Exhibit “C.”

c. CONTRACTOR, before commencing said PROJECT, shall furnish and file with CITY, a Warranty Bond in the amount o f 50% of the Agreement price, conditioned upon the guaranty and warranty of the work and labor and materials in connection with the work performed on the Project pursuant to this Agreement in the form attached hereto as Exhibit “D.”

SECTION 12. INSURANCE REQUIREMENTS

a. Prior to commencing work hereunder, CONRACTOR shall provide the CITY with proof of insurance naming the CITY and each of its directors, officers, agents, and employees as additional-named insureds on a policy or policies of insurance providing and maintaining the coverages set forth in the Insurance Schedule attached hereto as Exhibit A. The CITY shall have the right to hold the policies and policy renewals, and CONTRACTOR shall promptly furnish to CITY all renewal notices and all receipts of paid premiums. CITY may make proof of loss if not made promptly by CONTRACTOR.

b. Evidence of Insurance prior to commencement. CONTRACTOR shall provide to the CITY Certificate(s) of Insurance evidencing such coverage together with copies of the required policy endorsements no later than five (5) business days prior to commencement of service and at least fifteen (15) business days prior to the expiration of any policy. Unreasonable failure to provide such evidence may be cause for termination of the Agreement as provided herein or delay the services’ commencement date. The evidence of insurance shall be U.S. mail or email to:

City of Montebello
Attn: Risk Manager
1600 West Beverly Boulevard
Montebello, CA 90640

STANDARD PUBLIC WORKS AGREEMENT NO. 4006

Email: [email protected]

SECTION 13. LIQUIDATED DAMAGES

In addition, pursuant to the authority of California Public Contract Code Section 7102, the CITY and CONTRAC TOR agree that the determination of actual damages for any unreasonable delay in performance of this Agreement caused by CITY would be extremely difficult or impractical to determine in the event of a breach of this Agreement by the CITY.

Therefore, if the CITY is determined to be liable for such unreasonable delays, the CITY and its sureties shall be liable to the CONTRACTOR for the sum of Two Thousand dollars ($2,000) as liquidated damages for each working day of delay in the performance of any service required hereunder.

SECTION 14. DISPUTE RESOLUTION

14.1. Claims of $375,000 or Less

a. A claim by the CONTRACTOR for a time extension, for money damages for work, or a payment disputed by the CITY must be submitted to a resolution process in accordance with Public Contract Code Sections 20104-20104.4. A summary of Sections 20104-20104.4 are as follows:

(1) Informal negotiation between the CITY and CONTRACTOR. (2) Mediation with CONTRACTOR.
(3) Court mandated Arbitration.
(4) Court trial. If the party requesting the court trial does not prevail, then that party must pay all court costs and attorney's fees.

14.2 Public Contract Code 9204 Claims

CONTRACTOR shall comply with the procedure set forth in Public Contract Code section 9204 for any claim, as that term is defined therein, for one or more of the following: 1) a time extension, including, without limitation, for relief from damages or penalties for delay, 2) payment of money or damages arising from work done pursuant to this Agreement, and/ or 3) payment of an amount disputed by the CITY under this Agreement. A summary of the provisions of Public Contract Code Section 9204 is as follows:

1. CONTRACTOR must send a claim to the CITY for a time extension, payment for work not in the Agreement, or payments disputed by the CITY by registered mail or certified mail with return receipt requested.

2. The CITY must respond within 45 days as to which claims are disputed and undisputed.

3. If claim remains in dispute, CONTRACTOR may request informal meet and confer meeting with the CITY.

4. After meet and confer, an disputed claim remaining shall be submitted to non-binding mediation.