Montebello City Council
August 23, 2023

CITY OF MONTEBELLO

CITY COUNCIL

REGULAR MEETING

WEDNESDAY, AUGUST 23, 2023 AT 6:00 PM

CITY HALL COUNCIL CHAMBERS
1600 WEST BEVERLY BOULEVARD

MONTEBELLO, CALIFORNIA

CITY COUNCIL
David N. Torres, Mayor
Scarlet Peralta, Mayor Pro Tem
Angie M. Jimenez, Councilmember
Salvador Melendez, Councilmember
Georgina Tamayo, Councilmember

ACTING CITY MANAGER
Arlene Salazar

CITY TREASURER
David Matanga

CITY ATTORNEY
Arnold M. Alvarez-Glasman

CITY CLERK
Christopher Jimenez

DEPARTMENT HEADS
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
Fernando Pelaez
Paul Espinosa
Michael Solorza
Nicholas Razo
Joseph Palombi
James Enriquez
David Sosnowski
Adrianna Kendricks

August 23, 2023: City Council Meeting Page 2 of 6

NOTICES
This City Council Meeting ("Council") 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.montebelloca.gov, and may also be viewed on Spectrum Public Access Channel 3 for all Spectrum cable subscribers.

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:

Pursuant to Section 54957.95 of the Government Code, the presiding member of the legislative body conducting a meeting, or their designee, is authorized to remove, or cause the removal of, an individual for disrupting the meeting.

Any such removal will be preceded by a warning to the disruptive individual by the presiding member of the legislative body or their designee that the individual’s behavior is disrupting the meeting and that the individual’s failure to promptly cease their disruptive behavior may result in their removal.

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 meetings, you may address the City Council in person only the day of the meeting.

Speakers will be required to fill out a speaker card provided at the door and submit it to City Clerk staff prior to each Public Comment announcement period. Staff will number and call each speaker card in the order received. Closed Session begins at 6:00 p.m. and Regular Session begins immediately thereafter; if there is no Closed Session, Regular Session will begin at 6:00 p.m.

AGENDA MATERIALS: The agenda and/or agenda packet are available for public inspection at City’s website at:

Agendas, Minutes, and Videos,

August 23, 2023: City Council Meeting Page 3 of 6

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

THANK YOU FOR YOUR COOPERATION

OPENING CEREMONIES

CALL TO ORDER - 6:00 P.M.

ROLL CALL

ANNOUNCEMENT OF CLOSED SESSION ITEMS

PUBLIC COMMENTS ON CLOSED SESSION ITEMS
At this time, the public may submit a speaker card to the City Clerk staff for Closed Session items, prior to the beginning of this statement. Speakers will be called in the order received. 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 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 and City Council.

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

1. CONFERENCE WITH LABOR NEGOTIATOR
Government Code Section 54957.6
Agency Negotiators: Arlene Salazar, Acting City Manager; Nicholas Razo, Director of Human Resources Employee Organization: SMART-TD

REGULAR SESSION - IMMEDIATELY FOLLOWING CLOSED SESSION

CLOSED SESSION REPORT

INVOCATION

PLEDGE OF ALLEGIANCE

CORRECTIONS TO THE AGENDA - ACTING CITY MANAGER

CEREMONIAL ITEMS/PRESENTATIONS

2. CHECK PRESENTATION TO COMMUNITY BENEFIT GROUPS

3. MONTEBELLO-ASHIYA SISTER ASSOCIATION PRESENTATION BY EMMA DELGADO - Presenting Montebello Student Ambassadors Alejandro Ruiz and Andrea Ruiz

PUBLIC COMMENTS ON NON-AGENDA ITEMS (30 MINUTES)
At this time, the public may submit speaker card(s) to the City Clerk staff, for both agenda and non-agenda items, prior to the beginning of this statement; Public Hearing items do not require a speaker card.

The City Council will address non-agenda items during this section and speakers will be called in the order received. Those persons not accommodated during this 30-minute period will have an opportunity to speak under “Public Comments – Continued”, after all scheduled matters have been considered. Public Hearing, Regular Business and/or Consent Calendar items will be addressed at the time that matter of business is heard, in the order received.

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 from taking action or entertaining extended discussion

August 23, 2023: City Council Meeting Page 4 of 6

on a topic not listed on the agenda. Please show courtesy to others and direct all of your comments to the Mayor and City Council.

STAFF COMMUNICATIONS ON ITEMS OF COMMUNITY INTEREST

4. CONSIDERATION OF THE REQUEST FROM SENATOR BOB ARCHULETA TO DECLARE THE ARMENIAN

MONUMENT AS A HISTORICAL LANDMARK

PUBLIC HEARING

5. ADOPT RESOLUTION NO. 23-63 APPROVING A ZONE CODE AMENDMENT (“ZCA”) MODIFYING THE MONTEBELLO MUNICIPAL CODE (“MMC”) TO ESTABLISH AN ART IN PUBLIC PLACES PROGRAM, MODIFICATION TO SECTION 17.62.050 OF THE MONTEBELLO MUNICIPAL CODE TO REMOVE “MURALS” FROM THE LIST OF PROHIBITED SIGNS, AND ADOPTION OF A CEQA EXEMPTION UNDER § 15061(B)(3)

RECOMMENDATION: It is recommended that the City Council:

1. Approve the Zone Code Amendment (ZCA) No. PC-2021-0005-ZCA to establish an Art in Public Places Program; and

2. Approve Ordinance No. 2465 establishing an Art in Public Places Program; and amending Section

17.62.050 of the Montebello Municipal Code (“MMC”) to remove “murals” from the list of prohibited signs; and

3. Approve ENV-105-21-CE Notice of Common Sense Exemption (State California Environmental Quality Act (CEQA) Guidelines Section § 15061(b)(3)) - exemption for the proposed project; and

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

6. ADOPT RESOLUTION NO. 23-63 APPROVING THE FISCAL YEAR 2022-23 CONSOLIDATED ANNUAL

PERFORMANCE AND EVALUATION REPORT (CAPER)

RECOMMENDATION: It is recommended that the City Council:

1. Adopt Resolution No. 23-63 approving the Fiscal Year 2022-23 draft Consolidated Annual Performance and Evaluation Report (CAPER) and authorizing the City Manager, or their designee to submit the report to HUD; and

2. 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 member wishes to discuss, including any items the public submitted speaker cards for, 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.

7. MONTEBELLO MUNICIPAL GOLF COURSE RENOVATION PROJECT PHASE 3 (CP NO. 894-3) – AWARD

OF CONSTRUCTION CONTRACT

RECOMMENDATION: It is recommended that the City Council:

1. Find that the bid received from J-Squared General Contractors, Inc. is non-responsive and reject the bid; and

2. Award a construction contract for the Montebello Municipal Golf Course Renovation Project Phase 3 (CP No. 894-3) in the amount of $10,144,000 to Robert Clapper Construction Services, Inc. dba R.C.

Construction Services; and

3. Authorize the Director of Public Works to review and approve change orders within a five percent (5%) contingency of the contract amount; and

4. Authorize the City Manager to execute the Contract Agreement (Attachment A) with R.C. Construction Services, on behalf of the City; and

August 23, 2023: City Council Meeting Page 5 of 6

5. Find that the requested “Changes in Work” for Phase 1 (CP No. 894-1) (Attachment B) have no significant effect on the environment and approve the changes in the aggregate amount of $819,500. The adjusted contract amount with Los Angeles Engineering, Inc. is $5,913,500; and

6. Find that the requested “Changes in Work” for Phase 2 (CP No. 894-2) (Attachment C) have no significant effect on the environment and approve the changes in the aggregate amount of $1,823,850. The adjusted contract amount with American Landscape, Inc. is $11,488,508; and

7. Approve Amendment No. 3 to Agreement No. 3937 with SPORTFIVE Golf, LLC (Attachment D) for additional architectural and engineering design services in the amount not-to-exceed $362,487; and

8. Award Task Order No. 5 via an Engagement Letter (Attachment E) under Master Retainer Agreement No. 3919 with AIM Consulting Services for additional Construction Management/Inspection Services for Phase 1 and 2 for a not-to-exceed-fee of $171,248; and

9. Award Task Order No. 6 via an Engagement Letter (Attachment F) under Master Retainer Agreement No. 3919 with AIM Consulting Services for Construction Management/Inspection Services for the clubhouse construction (Phase 3) for a not-to-exceed-fee of $562,011; and

10. Approve the updated Total Project Budget (Attachment G); and

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

12. Take such additional, related action that may be desirable.

8. AWARD PROFESSIONAL SERVICES AGREEMENT NO. 4125, TO TENNANT SALES AND SERVICE COMPANY, FOR SCRUBBER AND SWEEPER REPLACEMENT REQUEST FOR QUOTE NO. Q-23-1

RECOMMENDATION: It is recommended that the City Council:

1. Award Professional Services AgreementNo. 4125 to Tennant Sales and Service Company, for a total not-to-exceed amount of Two Hundred Eighteen Thousand, Six Hundred and Fifteen Dollars ($218,615), for the Scrubber and Sweeper Replacement Request for Quote No. Q-23-1 (RFQ No. Q-23-1); and

2. Authorize the Acting City Manager, and/or designee, to take action necessary to execute and finalize the agreement on behalf of the City of Montebello; and

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

9. REPORT OF EMERGENCY REPAIRS TO THE POLICE DEPARTMENT BUILDING AND APPROVAL OF

CONTRACTS FOR REQUIRED REPAIR AND REMEDIATION WORK

RECOMMENDATION: It is recommended that the City Council:

1. Receive and file the City Manager’s report of emergency repairs to the Montebello Police Department headquarters building pursuant to Montebello Municipal Code Section 3.20.140 and Public Contracts Code Section 22035; and

2. Determine and find that the repairs and remediation are of an emergency nature and required to prevent further water intrusion which, if left unattended, will continue to create toxic mold, officer safety concerns, and liability in regards to proper storage and handling of criminal evidence; and

3. Authorize the Acting City Manager to execute professional service agreements with ATI Restoration LLC., Mr. Rooter Plumbing, and Custom Craft Flooring for the repair of the Montebello Police Department to remediate the damage caused by water intrusion, in a total aggregate amount of $300,000; and

4. Amend the Fiscal Year 2023-24 budget by increasing appropriations by $300,000 in Account No.100- 30-510-6040.60 (General Fund, Public Works, Facilities Maintenance, Other Contract Services-Building Maintenance/ Repairs); and

5. Take such additional, related, action that may be desirable.

10. PAYMENT OF BILLS: ADOPT RESOLUTION NO. 23-65 APPROVING THE CITY WARRANT REGISTER OF DEMANDS DATED AUGUST 23, 2023

RECOMMENDATION: It is recommended that the City Council:

1. Adopt Resolution No. 23-65 approving the Warrant Register dated August 23, 2023.

August 23, 2023: City Council Meeting Page 6 of 6

PUBLIC COMMENTS - CONTINUED

AB 1234 TRAVEL REPORTS
Members 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/AGENCY ORALS
Announcements and requests for future agenda items.
• Angie M. Jimenez, Councilmember

• Salvador Melendez, Councilmember

• Georgina Tamayo, Councilmember

• Scarlet Peralta, Mayor Pro Tem

• David N. Torres, Mayor

1. Appointment of Danielle Cardona to the Traffic and Safety Commission.

CLOSED SESSION - CONTINUED

ADJOURNMENT
The City of Montebello will adjourn to the next Regular Meeting on September 13, 2023, at 6:00 p.m., which can be live- streamed at https://www.montebelloca.gov (Click on Live Stream).

I, Kimberly Guillen, Acting Senior Deputy City Clerk for the City of Montebello, hereby certify that a copy of this agenda has been posted on or before Sunday, August 20, 2023, no later than 6:00 p.m.

Kimberly Guillen, Acting Senior Deputy City Clerk

EXHIBIT - CITY OF MONTEBELLO FORECASTED AGENDA
Please note, the attached exhibit is a draft version that is to be used for reference purposes only; agenda items, information, and dates are subject to change. The exhibit will be placed at the end of the Agenda Packet. • City of Montebello Forecasted Agenda

ITEM # 4

CONSIDERATION OF THE REQUEST FROM SENATOR BOB ARCHULETA TO

DECLARE THE ARMENIAN MONUMENT AS A HISTORICAL LANDMARK

August 1, 2023

Montebello City Council
1600 W. Beverly Blvd.

Montebello, CA 90640

RE: Request for a closed door session to discuss steps toward designating the Armenian Genocide Martyrs Monument as a California Historical Landmark.

Dear Mayor Torres and Councilmembers:

I am writing to express my support for designating the Armenian Genocide Martyrs Monument in Montebello as a California Historical Landmark and request that the Montebello City Council convene a closed session to discuss obtaining a written letter of consent from the monument’s property owner for this purpose.

The Los Angeles region has the largest Armenian community in the United States and Montebello is home to the oldest Armenian community in Los Angeles. As elected officials, it is vital that we continue supporting the Armenian community to guarantee that future generations learn from the Armenian Genocide and to prevent an atrocity like this from happening again.

In order for present and future generations to learn about the injustices that the Armenian community faced, there must be a complete and accurate account of history. Monuments provide a public setting for visitors to reflect on and learn from the hardships of the past. I am eternally grateful to the Armenian community and the descendants of survivors across the globe for their perseverance and their dedication to the cause of injustice.

Designating this monument as a California Historical Landmark will strengthen the bond between Montebello and the Armenian community. This monument is the largest and oldest in the United States dedicated to the Armenian Genocide. I strongly believe that it is time we take steps toward designating this important site as a California Historical Monument.

Thank you for your consideration of this request. If you would like further information or have any questions, please do not hesitate to contact me and my office at 916-651-4030.

Sincerely,

Bob Archuleta
State Senator, 30th District

ITEM # 5

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: Arlene Salazar, Acting City Manager

BY: Joseph Palombi, Director of Planning & Community Development

SUBJECT: ADOPT RESOLUTION NO. 23-63 APPROVING A ZONE CODE AMENDMENT (“ZCA”) MODIFYING THE MONTEBELLO MUNICIPAL
CODE (“MMC”) TO ESTABLISH AN ART IN PUBLIC PLACES
PROGRAM, MODIFICATION TO SECTION 17.62.050 OF THE
MONTEBELLO MUNICIPAL CODE TO REMOVE “MURALS” FROM

THE LIST OF PROHIBITED SIGNS, AND ADOPTION OF A CEQA
EXEMPTION UNDER § 15061(B)(3)

DATE: August 23, 2023

RECOMMENDATION(S):

It is recommended that the City Council:

1. Approve the Zone Code Amendment (ZCA) No. PC-2021-0005-ZCA to establish an Art in Public Places Program; and

2. Approve Ordinance No. 2465 establishing an Art in Public Places Program; and amending Section 17.62.050 of the Montebello Municipal Code (“MMC”) to remove “murals” from the list of prohibited signs; and

3. Approve ENV-105-21-CE Notice of Common Sense Exemption (State California Environmental Quality Act (CEQA) Guidelines Section § 15061(b)(3)) - exemption for the proposed project; and

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

FISCAL IMPACT:

There will be an "in-lieu" fee established should the Zone Code Amendment be approved. Revenue generated from the Art in Public Places program in-lieu fee will be deposited into a separate "Special Revenue Fund" established per the ordinance guidelines (Section 17.79.030(B) and 17.79.080 et al). Furthermore, the revenue in the "Special Revenue Fund" will be restricted in use "to provide sites for, and artwork in, public places or order to further the intent and purpose ofthis chapter..." (Section

CITY COUNCIL AGENDA REPORT - MEETING OF AUGUST 23, 2023

17.79.080(B) and (C)).

Project applicants opting to pay an in-lieu fee, instead of proposing an installation of public artwork, will contribute towards the Art in Public Places account. This account will be used to fund public artwork at the discretion of the City Council. New commercial, industrial, manufacturing, and residential developments will be subject to a fee greater than or equal to 1% of the project costs if project costs are equal to or greater than $250,000; project costs that are under $2,000,000 will be subject to a 0.5% impact fee.

Staff will monitor the revenue generated and will include the newly established fund in future budgets, so that revenue and expenditure appropriations can be made pursuant to the ordinance.

BACKGROUND/DISCUSSION:

In response to the desire for public art within the community, the City of Montebello's Planning and Community Development Department, Planning Division has conducted research on Art in Public Places programs and how such programs can help fund public art in connection with any new development in the City. From an economic development perspective, the arts and culture sector would add local economic vitality to the City’s neighborhoods. Arts and cultural assets would attract regional attention resulting in increased consumer traffic for local businesses and restaurants via placemaking initiatives and opportunities. Enhancing the arts can also lead to employment opportunities for local artists as well as providing professional development activities for creative-sector entrepreneurs. In addition to placemaking opportunities, art and culture provides a window for reflection to help establish community identity and purpose.

Staff prepared a draft Art in Public Places Ordinance (“Draft Ordinance”) with the intent of facilitating the creative installation of high-quality art in the city that will foster the community’s aesthetic enjoyment, city pride, and enhance the value of local developments and public spaces. The Draft Ordinance is composed of the following major components: Selection of a qualified Art Advisory Consultant, Art in Public Places program guidelines, and Art in Public Places account. Additionally, an amendment to the City’s sign standards to remove the prohibition on mural art for consistency with the proposed Art in Public Places Program.

The Ordinance would establish a process where the proposed artwork would be evaluated by the Art in Public Places Advisory Consultant followed by a recommendation to the Director of Planning and Community Development. Subsequently, the Director would issue a formal Director’s Determination based on findings of fact as well as the recommendation from the Art in Public Places Advisory Consultant (the “Art Consultant”). The main role of the Art Consultant would be to ensure compliance with the established criteria contained in the Art in Public Places Program and provide a mechanism where the proposed artwork is reviewed in advance to provide a recommendation to the Director. The Art Consultant would be selected by the City Council to review all applications and make recommendations to the Department Director. As previously mentioned, final decisions regarding proposed artwork will be rendered by the Director of Planning and Community Development in the form of a Director’s Determination based on findings of fact and a recommendation from the Art

CITY COUNCIL AGENDA REPORT - MEETING OF AUGUST 23, 2023

Consultant.

The purpose of the Art in Public Places Program is to provide a collection of aesthetically pleasing artwork throughout the City for public benefit. The program will create a funding mechanism, establish an approval process, and set guidelines for public artwork. This program will generally apply to the following:

• For commercial, industrial, and manufacturing projects, the cost or value of the artwork shall be an amount equal to or greater than 1% of the project costs if project costs are equal to or greater than $250,000; project costs that are under $2,000,000 will be subject to a .5% impact fee.
• For residential projects, the cost or value of the artwork shall be an amount equal to or greater than 1% of the project costs for all projects, including mixed-use projects, with 50 or more proposed dwelling units; 100% affordable housing developments receiving City, State, or Federal financial assistance shall be exempt from this policy.

For development projects that are subject to the Art in Public Places Program, the project applicant may either:

1. Acquire and install artwork in a public place on or in the vicinity of the project site.

The cost or value of the artwork shall be an amount equal to or greater than 1% of the project cost; or

2. Pay an in-lieu fee equal to or greater than the cost of value of the artwork that would have been required otherwise; and

3. If the art installation is on private property, the art installation must be accessible to the general public during normal business hours of the private business or property.

Currently, MMC Section 17.62.050 lists “murals” as prohibited signage. If approved, the Ordinance will remove the prohibition and allow mural art pursuant to the Art in Public Places Program guidelines. An amendment to the City’s sign standards is proposed to eliminate the inconsistency with the proposed definition of “artwork” in the new Draft Ordinance.

ENVIRONMENTAL:

Pursuant to the California Environmental Quality Act (CEQA), this project is exempt from CEQA under the common sense rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Because it can be seen with certainty that there is no possibility that this project will have a significant effect on the environment, the project is not subject to CEQA pursuant to State CEQA Guidelines Section 15061(b)(3).

CITY COUNCIL AGENDA REPORT - MEETING OF AUGUST 23, 2023

ANALYSIS:

To make the fee comparable to neighboring cities, Staff researched fees that neighboring cities impose. The below table is a summary of fees from neighboring cities with Arts in Public Places programs. Each city listed below gives applicants the choice of acquiring and installing artwork on the project site or paying the in-lieu fee.

Burbank 1% of total project cost for the first $15 million Cerritos 1% of total project valuation of new development projects with building valuations equal to or exceeding $250 thousand Commerce 1% of the total project costs if project costs equal or exceed $250 thousand
Downey 1% of construction or reconstruction costs if project valuation is equal to or exceeds $500 thousand
El Monte 1% of total project costs for commercial and industrial projects with project costs exceeding $500 thousand or for residential projects of 4 or more dwelling units
Santa Fe Springs 1% of total project costs if project costs equal or exceed $300 thousand
West Covina .5% of total project costs for residential projects if project consists of 10 or more dwelling units or 1% of total project costs for non- residential projects if project costs equal to or exceed $500 thousand
Whittier .5% of total project costs if total value equals to or exceeds $250 thousand

The proposed fee in the draft Ordinance is either .5% or 1% of total project costs if project costs are equal to or exceed two hundred-fifty thousand ($250,000), which is generally consistent with fees imposed by surrounding cities as noted in the above referenced matrix.

To demonstrate adequate community engagement/outreach to the City’s business community in obtaining feedback and public support for the proposed Art in Public Places Program, staff from the Planning and Community Development Department provided a presentation to the Montebello Chamber of Commerce Economic Development Committee in July and a pop-up workshop during the City’s annual summer street festival. At the pop-up workshop, City staff outlined the purpose and intent of the Art in Public Places Program and how it will enhance current and future development that will arise from the City’s General Plan Update, the Downtown Montebello Specific Plan, and the Transit-Oriented District along the Washington Blvd. commercial corridor.

CITY COUNCIL AGENDA REPORT - MEETING OF AUGUST 23, 2023

City staff also engaged the public via a written community interest survey to solicit input on the role of public art and cultural activities within the city during the summer street festival. At the event, a total of 45 individuals participated in the survey, 28 of which were Montebello residents. When asked if access to public art and cultural activities was important to their quality of life, 95% of respondents answered in the affirmative. According to 44% of the respondents, Montebello has public art and cultural activities for the general public, but not enough of it. When asked where they would like to see public art in Montebello, a majority (29 of 45 respondents) indicated their preference to be the Downtown corridor along Whittier Blvd. Lastly, when survey participants were asked about how they would like to see public art incorporated into new developments in the city, 25 of the 45 responses stated that they would prefer a mixture of different art mediums to be part of the project.

SUMMARY:

Staff recommends that the City Council approve the following items: 1) the Zone Code Amendment (ZCA) No. PC-2021-00050-ZCA to establish an Art in Public Places Program, 2) Ordinance No. establishing an Art in Public Places Program and amending Section 17.62.050 of the MMC to remove “murals” from the list of prohibited signs; and 3) the CEQA Notice of Common Sense Exemption for the proposed project. If the City Council approves the above listed recommendations, Staff will explore a qualified Art Consultant for consideration and approval by the City Council. Once the Art Consultant is selected, staff will be in a position to implement the approved Art in Public Places Program including any proposed artwork.

ATTACHMENT(S)

1. ATTACHMENT A - Art in Public Places Ordinance No. 2465

2. ATTACHMENT B - CEQA NOE

NEXT STEPS:

N/A

ATTACHMENT A
ORDINANCE NO. 2465

AN ORDINANCE OF THE CITY OF MONTEBELLO, CALIFORNIA
ADDING CHAPTER 17.79 TO TITLE 17 OF THE MONTEBELLO

MUNICIPAL CODE TO ESTABLISH AN ART IN PUBLIC PLACES
PROGRAM; REMOVING THE TERM “MURALS” FROM TITLE 17,
CHAPTER 17.62, SECTION 17.62.050 OF THE MONTEBELLO
MUNICIPAL CODE; AND ADOPTION OF A CEQA EXEMPTION UNDER
§ 15061(B)(3)
WHEREAS, the Montebello City Council (“City Council”) wishes to maintain the character of the City of Montebello (“City”) and create the best possible environment for the individuals living in, working in, and visiting the City; and WHEREAS, to maintain the aesthetics of the City, the City Council believes that development in the City should be planned and executed to enhance the visual character and beauty of the City; and
WHEREAS, in addition to beautifying, the arts can sensitize and humanize, provide social involvement, and assist in education, personality development, and community well-being; and
WHEREAS, with this Ordinance the City Council wishes to amend Chapter 17.62 “Signs” of the Montebello Municipal Code (“MMC”) to remove “murals” from the list of unauthorized signs in Section 17.62.050 “Prohibited signs”; and WHEREAS, with this Ordinance the City Council wishes to establish criteria for approving artwork throughout the City by adding Chapter 17.79 “Art in Public Places Program” to the MMC.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY ORDAINS AS FOLLOWS:

SECTION 1. Section 17.62.050 of the MMC is hereby amended to read in its entirety as follows (deletions in strikethrough and additions in double underline):

17.62.050 - Prohibited signs.

A. The following signs are prohibited except as provided in Section 17.62.160, Nonconforming signs, Section 17.62.160, Temporary signs, and Section

17.62.105, Off-Premises Digital Display Signs:

ORDINANCE NO. 2465

1. Signs that include video, blink, or move in any manner, have any portions that move, or have the appearance of moving, including animated or scrolling electronic text that clocks, time and temperature displays, civic and public services, and unique/creative signs allowed through the approval of a Planned Sign Program are exempt from this prohibition;

2. Flags (except those which are raised and lowered on permanently fixed flag poles), pennants, banners, paper, wind driven signs (except where specifically provided for within this code);

3. Roof signs;

4. Sign structures and supports no longer in use;

5. Portable signs;

6. Commercial advertising statuary;

7. Signs painted directly onto exterior wall surfaces (such as exterior building walls and masonry block walls, etc.);

8. Inflatable signs (except as provided in
Sections 17.62.110 and 17.62.170 of this chapter);

9. New off-premises signs, except those permitted pursuant to this chapter;

10. Murals.

B. No person shall construct, place or maintain any sign, signboard, billboard, street bulletin board, sign or advertisement in, over, along, across or upon any public street or public parkway, or other public place within the city, except as provided in Section 17.62.110 or Section 17.62.105 of this chapter.

C. Nothing contained in this title shall be construed to prohibit the erection or placing in any public street, parkway or other public place, of signs, notices or signals under the authority of the city council or of this code.

D. No person shall paint, post, attach or affix any handbill, notice, sign or advertisement upon any object in the public right-of-way, or to any bridge, fence, light pole, building, structure, or other property within public view, nor to any tree in any public right-of-way or public place; nor shall any person deface, mar or disfigure any such bridge, fence, light pole, building, tree, etc.

SECTION 2. Chapter 17.79 entitled “ART IN PUBLIC PLACES PROGRAM” is hereby added to the MMC to read in its entirety as follows:

Chapter 17.79 – ART IN PUBLIC PLACES PROGRAM

17.79.010 - Program created.

This chapter may be known and cited as the City of Montebello "Art in Public Places Program." The intent of the Art in Public Places Program is to provide a collection of artwork throughout the City to be of public benefit. The program is designed to present

ORDINANCE NO. 2465

the community with a variety of artwork styles and themes, all of the highest possible quality.

17.79.020 - Definitions.

As used in this chapter:

A. "Acquire and install" means the developer will be responsible to select an artist and obtain proper approval regarding the artwork and the placement of the artwork as per this chapter.

B. "Artwork" means durable creations that may be original or limited editions of art that may include, but is not limited to, sculptures, murals, monuments, frescoes, fountains, mosaics, paintings, stained glass, or ceramics.

These creations are not limited by medium used, but may be realized through media such as steel, bronze, marble, stained glass, concrete, wood, ceramic tile and stone, as well as, other suitable materials.

C. “Consultant” means the Art in Public Places Advisory Consultant.

D. “Director” means the Director of the Planning and Community Department of the City of Montebello.

E. “Department” means the Planning and Community Department of the City of Montebello.

F. "Project" means the type of development being proposed, whether commercial, industrial, manufacturing, open space or residential. A project may include new construction, additions, expansions, remodels, façade improvements, interior tenant improvements, alterations, repairs, removals and demolitions.

G. "Project applicant" means the property owner, developer or other responsible party proposing the project and seeking the required permits.

H. “Project cost” means the building valuation for a particular building or improvement, excluding the land value, as determined by the City’s Building Official, and indicated on the building permits issued by the City for that project.

I. "Project site" means the location of the improvements being developed.

ORDINANCE NO. 2465

J. "Public place" means any area on public or private property within the City of Montebello, either interior or exterior, which must be easily accessible and visible to the general public from adjacent public property such as a street or other public thoroughfare or sidewalk.

17.79.030 - Requirement to provide artwork or pay in-lieu contribution.

When a project is subject to the requirements of this chapter, the project applicant shall comply with provisions of either subsection (A) or (B) or a combination of both.

A. The project applicant shall acquire and install an artwork in a public place on or in the vicinity of the project site as approved by the Director pursuant to this chapter.

The artwork shall have a cost or value that is calculated as follows:

1. For commercial, industrial, or manufacturing projects listed in Section

17.79.040, the cost or value of the artwork shall be an amount equal to or greater than 1% of the project costs if project costs are equal to or greater than $250,000; project costs that are under $2,000,000 will be subject to a .5% impact fee pursuant to this chapter. No credit will be provided for demolished structures.

2. For residential projects listed in Section 17.79.040, the cost or value of the artwork shall be an amount equal to or greater than 1% of the project costs for all projects, including mixed-use projects, with 50 or more dwelling units.

No credit will be provided for demolished residential units.

Project applicants shall indicate on their Art in Public Places application that they wish to acquire and install artwork per the ordinance codified in this chapter. The Director can assist the project applicant in locating information on artists should they desire assistance. The timing of the installation of the artwork shall be pursuant to Section 17.79.050.I.

B. In-lieu of acquiring and installing an artwork, project applicants shall contribute funds to the Art in Public Places account established pursuant to Section

17.79.080. The in-lieu fee shall be calculated as follows:

1. For commercial, industrial, or manufacturing development projects listed in Section 17.79.040, the in-lieu fee shall be an amount equal to or greater than 1% of the project costs if project costs are equal to or greater than $250,000; project costs that are under $2,000,000 will be subject to a .5% impact fee pursuant to this chapter. No credit will be provided for demolished structures.

ORDINANCE NO. 2465

2. For residential development projects listed in Section 17.79.040, the in-lieu fee shall be an amount equal to or greater than 1% of the project costs for all projects, including mixed-use projects, with 50 or more dwelling units. No credit will be provided for demolished residential units.

3. The in-lieu fee shall be paid pursuant to Section 17.79.050.J. Project applicants shall indicate on their Art in Public Places application that they wish to make an in-lieu contribution.

17.79.040 - Projects subject to Art in Public Places requirement.

The requirements of this chapter shall apply to the following activities:

A. Commercial, industrial, or manufacturing development projects including, but not limited to, new construction, additions, expansions, remodels, façade improvements, interior tenant improvements, alterations, repairs, removals and demolitions. The term "new commercial, industrial, or manufacturing developments" is defined to include all those listed within Title 17 of the MMC.

B. Residential development projects, including:
a. New residential development projects of more than fifty (50) units, whether by detached single family residential structures, condominiums, apartments, townhouses or other dwelling units; and
b. Development projects on existing residential developments of more than fifty (50) units, including, but not limited to, new construction, additions, expansions, remodels, façade improvements, interior tenant improvements, alterations, repairs, removals and demolitions. The term “residential development” is defined to include all those listed within Title 17 of the Montebello Municipal Code.

Exceptions. The requirements of this chapter shall not apply to the following activities or projects:

1. Public projects undertaken by any agency of the City, State, County, School District or any other governmental entity;

2. Reconstruction of structures that have been damaged by fire, flood, wind, earthquake or other calamity;

ORDINANCE NO. 2465

3. 100 percent affordable housing developments receiving City, State or Federal assistance;

4. Performing arts facilities;

5. Museums;

6. Senior housing projects; and

7. Projects owned and developed exclusively by nonprofit organizations qualified under Section 501(c)(3) of the United States Internal Revenue Code. Organizations must provide the following to be granted an exemption:
a. A certificate of filing, certificate of status, certificate of incorporation, or exemption determination letter of the California Secretary of State (Revenue and Taxation Code Section 26451.3 provides that the Exemption Application FTB3500, together with any supporting documents, shall be open to public inspection, if granted); or b. A determination letter of Internal Revenue Service (IRS) recognition of their Section of 501(c)(3) exempt status (an organization that submits an application to the IRS and has it approved must make a copy of the application and supporting documents, as well as, any letter issued by the IRS, available for public inspection).

C. Requesting an Exemption. When a project applicant seeks an exemption from the requirements of this chapter, they must do the following:

1. Once a project applicant is made aware of the requirements of this chapter and the qualifying project developments that trigger such requirements, they must within thirty (30) days send a letter to the Director stating why the project applicant feels that the project should not be subject to the requirements established in Section 17.79.040 and that an exemption is requested.

2. The Director will provide the exemption request to the Art in Public Places Advisory Consultant for review. Once the Consultant has reviewed the request, it shall forward its recommendation to the Planning Commission for final decision.

17.79.050 - Processing.

ORDINANCE NO. 2465

The requirements and procedures for the processing of an Art in Public Places application shall be as follows:

A. When a project application is submitted to the Planning and Community Development Department, the application shall be processed pursuant to the ordinance codified in this chapter and an Art in Public Places application form will be provided.

B. Thereafter, the project applicant shall submit to the Department a completed Art in Public Places application form. Guidelines for the submission of all applications required under this chapter are listed in Section 17.79.070.

C. Upon receipt of the Art in Public Places application, the Department shall maintain proof of the filing. If the project applicant has chosen to acquire and install artwork, the Consultant will review the application, which shall include a proposal that details the artwork. The application shall be reviewed and deemed complete by the Director of Planning and Community Development or designee prior to review by the Art in Public Places Advisory Consultant.

D. The Art in Public Places Advisory Consultant shall review all proposed artwork and make its recommendation to the Director for action based on the following findings:

1. Complies with the provisions of this chapter;

2. Protects the general health, safety and welfare of the city; and

3. Meets requirements of artistic merit.

E. Any person interested in and affected by the proposed artwork may file written protests or objections with the City Clerk prior to the issuance of a permit by the City, per instructions provided in the application package. Each such protest or objection must contain a description of the property and artwork being appealed.

Upon the hour and date set for the final review, the City’s City Manager (“City Manager”) shall hear and pass upon the application together with any objections or protests that may be raised by any person.

F. The Director, based upon the guidelines set forth in Section 17.79.070, approve, approve in part, conditionally approve or deny the application.

ORDINANCE NO. 2465

G. The final decision by the Director shall be confirmed by Director’s Determination.

Said determination shall include a finding of whether the cost or value of the artwork equals or exceeds the amount of the in-lieu contribution which the applicant seeks to satisfy. The decision of the Director on the application shall be final and conclusive (unless an appeal has been filed with the City Clerk in conformance with paragraph E) with authority to revoke permits for non- compliance.

I. When the project applicant has elected to acquire and install an artwork, the building permit shall not be issued until the Director has approved the Art in Public Places application, and occupancy shall not be allowed until the approved work of art has been installed unless an in-lieu fee is paid as a deposit in the full amount of the artwork cost or value as required in section 17.79.030.A to secure the proper installation of the artwork within a reasonable period of time as specified by the Director
J. When the project applicant has elected to pay an in-lieu fee to the Art in Public Places account, a building permit shall not be issued until such fee has been paid, unless otherwise authorized by the Director.

17.79.060 – Art in Public Places Advisory Consultant
An Art in Public Places Advisory Consultant shall be selected by the City Council to review the applications and examine the proposals for public safety, weather resistance, compliance with program, verification of value, public response, proper lighting, public accessibility, relevance, installation methods, proportion, composition, the artist’s previous experience, and the artist’s art training and exhibition record.

17.79.070 - Guidelines for approval of artwork.

Guidelines for the approval and maintenance of artworks shall include, but are not limited to, the following criteria:

A. The composition of the proposed artwork shall be of a permanent material which will be durable against vandalism, theft, weather and will require a low level of maintenance. The property owner shall maintain insurance for the artwork at all times equivalent to the current market value of the artwork.

B. The artwork shall be complimentary to its surrounding environment, including adjacent buildings, landscaping, and other natural features, as it relates to scale, proportion, material, form and content.

ORDINANCE NO. 2465

C. The artwork shall be designed and constructed by persons experienced and trained in the production of such artwork and recognized by art critics and by his/her peers as one who produces works of art.

D. The artistic merit of the artwork proposal will be evaluated by the Art in Public Places Advisory Consultant. Examples of the artist’s past work, such as, solo and group exhibit records, records of the artist’s work in private and public collections, art training, art education and printed critiques of past work, must be provided. Examples of similar work by the artist will be reviewed by the Art in Public Places Advisory Consultant. Verification of the purchase price of past works will serve to help validate the fair market price of the proposed commissioned artwork. The proposed artwork shall be submitted in the form of a 3-D model, color renderings or perspective drawings, from various viewpoints, subject to the review of the Director of Planning and Community Development or designee.

E. Placement of the artwork in a public place on or in the vicinity of the project site as approved by the Director pursuant to this chapter shall be showcased at the project site to allow for unobstructed viewing from as many angles as possible and shall serve as a focal point of the project site. Once the artwork has been installed, the property owner shall not obstruct viewing of any or all of the artwork.

Owner may temporarily obstruct the piece in order to perform maintenance or repairs of the artwork.

F. The artwork shall be maintained by the property owner in a safe, neat and orderly manner acceptable to the City. The property owner shall obtain from the artist maintenance instructions to follow including methods to maintain the artwork and the frequency of maintenance.

G. In the event that any artwork placed on the development as a result of the ordinance codified in this chapter is removed or destroyed, developer shall, within one hundred eighty days (180) of the removal or destruction, replace it with artwork which meets the requirements of this chapter. The replacement artwork must be equal in value to the removed/destroyed artwork's fair market value immediately prior to its removal or destruction.

H. The artwork shall become the property of the City of Montebello prior to the issuance of a certificate of occupancy by the Building and Safety division.

I. Prior to issuance of a certificate of occupancy for projects subject to the Art in Public Places requirement, the property owner, at his/her expense, shall: (1)

ORDINANCE NO. 2465

install the artwork; (2) execute and record with the Los Angeles County Recorder covenants, conditions and restrictions in form and content approved by the City Manager and the City Attorney providing, among other things, that the artwork is the property of the City of Montebello and that property owner and its successors, heirs and assigns shall maintain the artwork as required by subsection (F) above; (3) indemnify, defend and hold the City, its officers, employees and agents and related parties harmless from any and all claims or liabilities arising out of the artwork; and (4) maintain in the City Clerk's office a certificate of public liability insurance, naming the City as an additional insured in an amount not less than one million dollars ($1,000,000).

J. Expressions of obvious bad taste or profanity, which would be likely be offensive to the general public, are unacceptable.

K. Each piece of artwork shall be identified by a plaque at the site of an appropriate size and scale to the piece. The plaque shall be made of cast metal and then placed in a location near the art piece listing the title of the piece, the artist, the date, and the Montebello Art in Public Places program.

L. When selecting the location for artwork purchased through the Art in Public Places account, preference shall be given to publicly accessible public places.

This would include libraries, parks, office buildings, sidewalks, traffic islands, etc.

Lobbies, plazas, adjacent open spaces or exterior treatment of publicly owned buildings shall be potential sites, but the offices themselves of publicly owned buildings shall not be considered acceptable sites.

M. The following items are not to be considered as artwork:

1. Art objects or antique objects that are mass-produced from a standard design;

2. Reproductions of original artworks, with respect to copyrights and any other clearly defined residual rights, when not an integral part of an artwork or concept as presented in early design and concept phases;

3. Decorative, ornamental or functional elements that are designed by the building architect, as opposed to, an artist commissioned for the purpose of creating the artwork; or

4. Ornamental planting, except where these elements are designed or approved by the artist and are an integral part of the artwork by the artist.

ORDINANCE NO. 2465

17.79.080 - Art in Public Places account.

A. Accounting. Any monies collected by the City in accordance with the in-lieu contribution provisions of this chapter shall be deposited in a separate account denominated as the "Art in Public Places Account." The City Manager, Director of Finance, or designee shall establish accounting records sufficient to identify and control these funds. Furthermore, the City Manager, Director of Finance, or designee shall have discretion over how to account for the in-lieu monies, as per current accounting pronouncements and recognized best practices.

B. Use of Account. The Art in Public Places Account shall be used to provide sites for, and artwork in public places in order to further the intent and purpose of this chapter as set forth in Section 17.79.010.

C. Permissible Expenditures. Expenditures of funds shall be strictly limited to the following enumerated uses:

1. The cost of artwork and its installation;

2. Plaques for each artwork, as required by 17.79.060.K of this chapter;

3. Educational, promotional and any other such materials relating to artworks funded through the Art in Public Places account;

4. Frames, mats, pedestals and other objects necessary for the proper presentation of the artwork;

5. Walls, pools, water features, planting, lighting, architectural or landscape architectural elements, and other objects necessary for the proper aesthetic and structural placement of the artwork;

6. Maintenance and repair of artworks funded through the Art in Public Places account;

7. Events and ceremonies regarding the artwork to promote community awareness, outreach and education; and

8. Administrative expenses, including, but not limited to, legal, art consultant fees, research, travel costs and appraisal fees, to otherwise implement, uphold or carry out any provision of this chapter.

D.  Administration.

ORDINANCE NO. 2465

1. The Art in Public Places account shall be managed and administered in the same manner as all of the City’s accounts.

2. The Art in Public Places Advisory Consultant shall make recommendations to the Director concerning the purchase or commissioning of artworks, including:
a. Places which should be considered for artworks; and

b. The medium of the proposed artwork; and
c. The artist whose work should be considered for placement in the recommended location;
d. The subject matter and theme of the artwork; and
e. The composition of the artwork.

3. Selection of artists and artworks shall be based on the guidelines set forth in Section 17.79.060.

4. The City will contract with the artist and with consultants, as necessary, for the purchase or commissioning, as well as, the execution and installation of the artwork.

5.On-site activity in connection with the artwork installation shall be coordinated by the Director or designee.

SECTION 3. INTERNAL CONSISTENCY. Any provisions of the Municipal Code, or any other resolution or ordinance of the City, to the extent that they are inconsistent with this Ordinance are hereby repealed, and the City Clerk shall make any necessary changes to the Municipal Code for internal consistency.

SECTION 4. SEVERABILITY. If any action, subsection, line, sentence, clause, phrase, or word of this Ordinance is for any reason held to be invalid or unconstitutional, either facially or as applied, by a decision of any court of competent jurisdiction, such decision shall not affect the validity of the remaining portions of this Ordinance, and each and every individual section, subsection, line, sentence, clause, phrase, or word without regard to any such decision.

ORDINANCE NO. 2465

SECTION 5. SAVINGS CLAUSE. Neither the adoption of this Ordinance nor the repeal or amendment by this Ordinance of any ordinance or part or portion of any ordinance previously in effect in the City, or within the territory comprising the City, shall constitute a waiver of any license, fee or penalty or the penal provisions applicable to any violation of such ordinance.

SECTION 6. IMPLEMENTATION. The City Council hereby directs staff to apply this Ordinance to any applications and requests submitted on or after the effective date of this Ordinance and that pending applications and requests submitted prior to the effective date of this ordinance, which have not been approved, be processed under the provisions of this ordinance.

SECTION 7. CEQA FINDING. Pursuant to the California Environmental Quality Act (CEQA), this project is exempt from CEQA under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Because it can be seen with certainty that there is no possibility that this project will have a significant effect on the environment, the project is not subject to CEQA pursuant to State CEQA Guidelines Section 15061(b)(3). Based on these findings, the City Council hereby adopts a CEQA exemption under § 15061(b)(3).

SECTION 8. EFFECTIVE DATE. This Ordinance shall become effective thirty (30) days after approval by the City Council.

SECTION 9. PUBLICATION. The City Clerk shall certify to the adoption of this Ordinance and shall cause the same to be published or posted according to law.

APPROVED AND ADOPTED ___ day of ________ 2023.
_______________________________
David N. Torres, Mayor
ATTEST:
________________________
Christopher Jimenez, City Clerk

ORDINANCE NO. 2465

APPROVED AS TO FORM:
__________________________________
Arnold M. Alvarez-Glasman, City Attorney
I HEREBY CERTIFY that the foregoing Ordinance was adopted by the City Council of the City of Montebello at its meeting held on the __ day of _________, 2023 by the following vote:

AYES:

NOES:

ABSENT:

ABSTAIN:
__________________________
Christopher Jimenez, City Clerk

Notice of CEQA Exemption
City of Montebello 1
To:

County of Los Angeles
Registrar-Recorder/County Clerk
12400 Imperial Highway
Norwalk, CA 90650
From:

City of Montebello
Planning & Community Development Department
1600 W. Beverly Blvd.

Montebello, CA 90640
Lead Agency: City of Montebello, Planning and Community Development Department Project Title: Establishment of Art in Public Places Program and Committee and Modification to Sign Standards Project Location: Citywide
Case Number(s): ZCA No. PC-2021-0005-ZCA & ENV No. 105-21-CE Description of Nature, Purpose, and Beneficiaries of Project: A Zone Code Amendment (“ZCA”) to modify the Montebello Municipal Code (“MMC”) to establish an Art in Public Places Program and Advisory Committee, modification to Section 17.62.050 of the MMC to remove “murals” from the list of prohibited signs, and adoption of a CEQA Exemption under § 15061(b)(3)
Name of the Public Agency Approving the Project: City of Montebello Name of Person or Agency Carrying Out the Project: City of Montebello Exempt Status (check one)
Ministerial (Sec. 21080(b)(1); 15268(b)(3))
Declared Emergency (Sec. 21080(b)(3); 15269(a));
Emergency Project (Sec. 21080(b)(4); 15269(b)(c));
Categorical Exemption. State type and section number:

Statutory Exemptions. State code number: 15061(b)(3)
Justification for Project Exemption:

Pursuant to the California Environmental Quality Act (CEQA), this project is exempt from CEQA under the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Because it can be seen with certainty that there is no possibility that this project will have a significant effect on the environment, the project is not subject to CEQA pursuant to State CEQA Guidelines Section 15061(b)(3).

Lead Agency Contact Person: Jessica Serrano, Planning Manager Area Code/Telephone/Extension: (323) 480-8017
If filed by applicant, attach certified document issued by the Planning and Community Development Department stating that the Department has found the project to be exempt.

Signature: ____________________________ Date: ______________ Title: _______________________ Signed by Lead Agency Signed by Applicant

ATTACHMENT B

ITEM # 6

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: Arlene Salazar, Acting City Manager

BY: Joseph Palombi, Director of Planning & Community Development

SUBJECT: ADOPT RESOLUTION NO. 23-63 APPROVING THE FISCAL YEAR 2022-23 CONSOLIDATED ANNUAL PERFORMANCE AND

EVALUATION REPORT (CAPER)

DATE: August 23, 2023

RECOMMENDATION(S):

It is recommended that the City Council:

1. Adopt Resolution No. 23-63 approving the Fiscal Year 2022-23 draft Consolidated Annual Performance and Evaluation Report (CAPER) and authorizing the City Manager, or their designee to submit the report to HUD; and

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

FISCAL IMPACT:

The submission of the CAPER is a condition imposed by the United States Department of Housing and Urban Development ("HUD") that allows the City of Montebello to continue to receive federal funds. There is no fiscal impact related to the recommended actions.

BACKGROUND/DISCUSSION:

HUD provides annual funding to the City for Housing and Community Development Programs, specifically Community Development Block Grant (“CDBG”) and Home Investment Partnerships (“HOME”) Program funds. The City is required to submit the Fiscal Year 2022-23 Consolidated Annual Performance and Evaluation Report (“CAPER”) to HUD to provide a summary of activities for the period beginning July 1, 2022 through June 30, 2023. The Fiscal Year 2022-23 CAPER (please see Attachment B) describes the use of funds to further meet the needs of low- and moderate-income persons and households that were described in the Five-Year 2020-25 Consolidated Plan

CITY COUNCIL AGENDA REPORT - MEETING OF AUGUST 23, 2023

and further identified in the Fiscal Year 2022-23 Action Plan. It is important to note that the CAPER is due to HUD on or before September 28, 2023.

As required by HUD, the draft CAPER was publicly noticed and made available for public review and comment on the City’s website beginning August 3, 2023, through August 23, 2023 at the following link: https://www.montebelloca.gov. It is also available for public review at City Hall in the Planning and Community Development Department located at:

1600 W. Beverly Blvd.

Montebello, CA 90640

ENVIRONMENTAL:

There is no potential for any environmental impacts associated with this action.

ANALYSIS:

CDBG: All activities funded by the City through the CDBG Program must meet one (1) of the following three (3) national objectives:

1. Benefit low-and-moderate-income persons as defined by federal statutes;

2. Prevent or eliminate slums or blight; or

3. Address a community development urgent need posing a severe and immediate threat to the health or welfare of the community.

The federal statutes for the various grant programs covered by the CAPER include several basic goals. These goals relate to HUD’s major commitments and priorities, as established by the United States Congress, covering the following three (3) major areas:

1. Provide decent housing by assisting the homeless in obtaining appropriate housing; preserve the affordable housing stock; increase the availability of permanent housing that is affordable for low-income households without discrimination, and increase the supply of supportive housing for those with special needs;

2. Provide suitable living environment by improving the safety and livability of neighborhoods; reduce the income groups within an area through decentralization of housing opportunities and revitalization of deteriorating neighborhoods; restore and preserve properties of special architectural, historical, or aesthetic value, and conserve energy resources; and

3. Expand economic opportunities by creating jobs accessible to low-income persons; provide access for low-income households to mortgage financing and credit for development activities that promote long-term community viability and empower low-income persons to achieve self-sufficiency to reduce poverty in federally assisted and public housing.

The CAPER for Fiscal Year 2022-23 reports the accomplishments of the CDBG-funded

CITY COUNCIL AGENDA REPORT - MEETING OF AUGUST 23, 2023

programs within the City. The following is intended to provide a summarized list of accomplishments for the period beginning July 1, 2022, through June 30, 2023:
• 140 tenant/landlord issues were resolved via the Fair Housing program • 184 persons were assisted via public services through the youth employment program, YMCA services and Heart of Compassion food distribution services • Reconciled Program Income for CDBG and HOME

As of the writing of this report, the City has not received any public comments regarding the CAPER for Fiscal Year 2022-23.

SUMMARY:

It is recommended that the City Council conduct a public hearing to allow members of the public to provide comment on the Fiscal Year 2022-23 CAPER; and subsequently adopt Resolution No. 23-63 authorizing the City Manager, or his or her designee, to submit to HUD the City’s Fiscal Year 2022-23 CAPER.

ATTACHMENT(S)

1. ATTACHMENT A - Resolution No. 23-63 - CAPER 2022-2023

2. ATTACHMENT B - 2022-2023 Montebello CAPER (DRAFT)

3. ATTACHMENT C - Proof of Publication for 2022-2023 CAPER

NEXT STEPS:

N/A

ATTACHMENT A
RESOLUTION NO. 23-63

A RESOLUTION TO THE CITY COUNCIL OF THE CITY OF MONTEBELLO,

APPROVING AND AUTHORIZING THE CITY MANAGER, OR HIS OR HER DESIGNEE, TO SUBMIT TO HUD THE CITY’S FISCAL YEAR (FY) 2022-2023

CONSOLIDATED ANNUAL PERFORMANCE AND EVALUATION REPORT (CAPER)

RECITALS
WHEREAS, the City of Montebello (“City”) has applied and received Community Development Block Grant (“CDBG”) and HOME Investment Partnership (HOME) funds from the Government of the United States under Title I of the Housing and Community Development Act of 1974; and
WHEREAS, the U.S. Department of Housing and Urban Development (“HUD”) is the federal agency that promulgates regulations and oversees the administration of the CDBG and HOME program; and
WHEREAS, HUD requires that the entitlement jurisdictions, including the City, complete an annual evaluation of their grants programs through a report known as the Consolidated Annual Performance and Evaluation Report (“CAPER”); and WHEREAS, City staff published a notice announcing the availability of the CAPER in the Montebello News on August 3, 2023, triggering a 20-day public comment period of the report; and
WHEREAS, On August 23, 2023, the City Council held a duly notice public hearing to consider the program year 2022-2023 CAPER.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO DOES HEREBY RESOLVE AS FOLLOWS:

SECTION 1: The City Council hereby declares that the above recitals are true and correct and incorporated herein by reference.

SECTION 2: The City Council hereby authorizes the City Manager, or his or her designee, to submit the City’s FY 2022-2023 CAPER to HUD.

SECTION 3: The City Council hereby allows staff to make minor technical and clerical modification, and/or necessary corrections to the CAPER as required by HUD.

SECTION 4: The City Clerk shall certify to the adoption of this Resolution which shall be effective upon its adoption.

RESOLUTION NO. 23-63

APPROVED, AND ADOPTED this 23rd day of August 2023.

David Torres, Mayor
ATTEST:APPROVED AS TO FORM:

________________________________ ________________________________ Christopher Jimenez, City Clerk Arnold M. Alvarez-Glasman, City Attorney

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF MONTEBELLO )
I, Christopher Jimenez, City Clerk of the City of Montebello, County of Los Angeles, State of California, hereby certify that the foregoing Resolution No. 23-63 was passed and adopted by the City Council of the City of Montebello, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 23rd day of August 2023 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

The undersigned, City Clerk of the City of Montebello, does hereby attest and certify that the foregoing Resolution is a true, full and correct copy of a resolution duly adopted at a meeting of said City which was duly convened and held on the date stated thereon, and that said document has not been amended, modified, repealed or rescinded since its date of adoption and is in full force and effect as of the date hereof.

DATE:

Christopher Jimenez, City Clerk

CITY OF MONTEBELLO

CONSOLIDATED ANNUAL

PERFORMANCE
AND

EVALUATION REPORT (CAPER)
DRAFT

July 1, 2022 – June 30, 2023

Planning and Community Development Department
Housing Division
1600 West Beverly Blvd.

Montebello, CA 90640

ATTACHMENT B

Table of Contents
C
R-05 - Goals and Outcomes ..................................................................................................................................................................................... 1 CR-10 - Racial and Ethnic composition of families assisted ....................................................................................................................................... 5 CR-15 - Resources and Investments 91.520(a) .......................................................................................................................................................... 6 CR-20 - Affordable Housing 91.520(b) ..................................................................................................................................................................... 12 CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) ................................................................................................. 15 CR-30 - Public Housing 91.220(h); 91.320(j) ............................................................................................................................................................ 18 CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j) ..................................................................................................................................................... 19 CR-40 - Monitoring 91.220 and 91.230 .................................................................................................................................................................... 23 CR-45 - CDBG 91.520(c) ........................................................................................................................................................................................... 25 C
R-50 - HOME 24 CFR 91.520(d) .............................................................................................................................................................................. 26 CR-58 – Section 3 ..................................................................................................................................................................................................... 28

CAPER 1
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-05 - Goals and Outcomes
Progress the jurisdiction has made in carrying out its strategic plan and its action plan. 91.520(a) This could be an overview that includes major initiatives and highlights that were proposed and executed throughout the program year.

During the course of each year, the City of Montebello (City) receives Community Development Block Grant Program (CDBG) Entitlement funds and HOME Investment Partnerships (HOME) entitlement funds from the United States Department of Housing and Urban Development (HUD).

In the fiscal year 2022-2023, the City received $670,421 in CDBG Entitlement funds and $341,617 in HOME Entitlement Funds.

It should be noted that the City continued to participate in the Coronavirus Aid, Relief, and Economic Security (CARES) Act during this fiscal year, which was enacted into law on March 27, 2020. The CDBG-CV funds were allocated in the FY 2020-2021 Annual Action Plan. The FY 2020-2021 Annual Action Plan has been modified by two Substantial Amendments that have been made to the initial activities and allocated amounts intended to be undertaken with the CDBG-CV funds.

In this CAPER, we review the City's specific accomplishments with the CDBG Entitlement funds over the last program year (July 1, 2022 through June 30, 2023), and we examine the City's achievements with the CDBG-CV funds over the past fiscal years (FY 2020-2021, FY 2021-2022, and FY 2022-2023). The report summarizes the progress that has been made by the City in implementing the goals and objectives outlined in the five- year Consolidated Plan for the years 2020-2025.

There are specific objectives, outcomes, and metrics that have been developed by the City of Montebello under each category of priority needs listed in the 2020-2025 Consolidated Plan in regards to each goal category. The goal descripitions are as follows:
• Administration: Planning and Administration provides funds for program and project delivery, general operation and administration of CDBG and HOME funds as well as planning and support for CHDO. • Fair Housing: The City will continue to collaborate with entities that provide assistance for families and individuals seeking counseling and or legal solutions to fair housing, and discrimination problems. • Housing: Provide funding for the development of new affordable housing for low- and moderate-income families. Fund housing solutions that may include programs that increase homeownership, housing improvements for special needs populations, support integrated housing solutions and plans, and reduce barriers to affordable housing consistent with the City’s Analysis for Impediment to Fair Housing Choice. Provide funding for programs for owner–occupied housing rehabilitation including activities related to home

CAPER 2
OMB Control No: 2506-0117 (exp. 09/30/2021)
improvements, energy efficiency, structural improvements, and/or other home sustainability projects. • Economic Development: Provide funding for projects such as: Commercial Façade Program for economic development. The city will provide economic development opportunities to improve the physical condition of the existing commercial buildings located in the Target Areas. This will help the city to restore economic vitality. • Public Service: Provide needed public services that assist individuals and families in the following ways: services for children, youth, senior and special needs services, nutrition, and preventative health services, supplemental food/clothing assistance and other vital social services.

Comparison of the proposed versus actual outcomes for each outcome measure submitted with the consolidated plan and explain, if applicable, why progress was not made toward meeting goals and objectives. 91.520(g) Categories, priority levels, funding sources and amounts, outcomes/objectives, goal outcome indicators, units of measure, targets, actual outcomes/outputs, and percentage completed for each of the grantee’s program year goals.

Goal Category Source /
Amount
Indicator Unit of
Measure
Expected
–
Strategic
Plan
Actual –
Strategic
Plan
Percent
Complete
Expected
–
Program
Year
Actual –
Program
Year
Percent
Complete
Create sustainable
neighborhoods
Non-Housing
Community
Development
CDBG:
$85,299
Facade
treatment/business
building
rehabilitation
Business 0 1 0% 4 1

25.00%
Expanding
Economic
Opportunities
Non-Housing
Development
CDBG:
$480,467
Section 108 Loan Other 0 0 0% $480,467 $480,467 100.00% Expand fair
housing choice
and access
Public services CDBG:
$20,000 Other (HRC) Persons
Assisted 500 0

0.00% 140 140 100%

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OMB Control No: 2506-0117 (exp. 09/30/2021)
Increase earning
capacity for LMI
families
Non-Housing
Economic
Development
CDBG:
$40,000
Public service
activities other
than
Low/Moderate
Income Housing
Benefit (YEP)
Persons
Assisted 0 21 0.00% 18 21 103%
Provide Vital
Public Service
Homeless Non-
Housing
Community
Development
CDBG:
$55,000
Public Service
(YMCA-HOC) Other 48 0

0.00% 163 163 100%
Maintain decent
and energy
efficient housing
stock
Affordable
Housing
Non-Homeless
Special Needs
CDBG: $0
HOME:
$906,682.52
Homeowner
Housing
Rehabilitated
Household
Housing
Unit
15 0

0.00% 10 0

0.00%
Planning and
Administration
Program
Administration
CDBG: $
145,191.55
HOME: $
100,742.50
CDBG-CV: $
Carryover
amount
Other Other 1 0

0.00% N/A N/A N/A
Table 1 - Accomplishments – Program Year & Strategic Plan to Date

Assess how the jurisdiction’s use of funds, particularly CDBG, addresses the priorities and specific objectives identified in the plan, giving special attention to the highest priority activities identified.

With a commitment to serving the needs of its residents, the City of Montebello has continued to provide housing and public service programs as part of its efforts to address those needs. According to the City's 2020-2025 Consolidated Plan, the City prioritizes preserving affordable housing, ensuring equal access to housing opportunities, providing public services to low-income residents, improving infrastructure and public facilities, rehabilitating commercial properties, and promoting economic development as its top priorities. There are a number of high needs

CAPER 4
OMB Control No: 2506-0117 (exp. 09/30/2021)
within the City that City Council has been tasked with assessing and making recommendations on, as part of their role, taking into account the available resources and the objectives outlined in the City's Consolidated Plan.

In the 2022-2023 Action Plan, the goals of the Five-Year Consolidated Plan were reflected based on the goals of the 2020-2025 Consolidated Plan, which represented incremental steps towards achieving these goals. As part of the 2020-2025 Consolidated Plan, this year is the third year of program year 2022-2023. There was continued implementation of CDBG and HOME funded programs that served the needs of Montebello's senior, youth, homeless, low- and moderate-income families, and other special needs populations, including those those with disabilities. Also with the assistance of CDBG funding, the City is working toward rehabilitating their public facilities, which is an important priority for the City in the near future.

Besides receiving CDBG funds, the City also received supplemental funding from the CDBG Coronavirus (CDBG-CV) program, which has been included in the City's Annual Action Plan for 2020-2021. The majority of funds provided through the CDBG program were used to benefit low- and moderate-income individuals and families. In order to achieve each of the three national objectives, all CDBG funds allocated to the City were used exclusively for one or more of them.

As part of the CDBG-Coronavirus (CDBG-CV) program, Montebello received a total of $910,151 in supplemental CDBG-Coronavirus (CDBG-CV) funds for use in preparation for, preventing, and responding to the Coronavirus pandemic (COVID-19). An amendment was made to the City's 2020-2021 Annual Action Plan as part of its effort to utilize the CDBG-CV funds. By the end of 2023, all funds allocated to the CDBG-CV program should be fully utilised for activities related to the program that are currently in progress.

CAPER 5
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-10 - Racial and Ethnic composition of families assisted Describe the families assisted (including the racial and ethnic status of families assisted).

91.520(a)

CDBG HOME
White 72 0
Black or African American 3 0
Asian 39 0
American Indian or American Native 1 0
American Indian or American Native White 1 0
Native Hawaiian or Other Pacific Islander 0 0
Other: Multi-Racial 68 0
Total 184 0
Hispanic 103 0
Not Hispanic 81 0

Table 2 – Table of assistance to racial and ethnic populations by source of funds

Narrative
According to the above breakdown of race and ethnicity, this breakdown is based on public service activities that took place during the fiscal year 2022-2023. As part of the breakdown, we include the following:

1. Youth Employment Program: provides subsidized employment and workforce development opportunities to youth. The program exceeded the goal of assisting 18 youth with employment.

This program assisted a total of 21 youth with employment.

2. Y MCA : provided food distribution services to 49 seniors

3. Heart of Compassion: provided food distribution services to 114 households to prevent food insecurity.

An additional service that provides fair housing services to residents to prevent discrimination, provides referrals, investigations, case management, and litigation, and resolve landlord tenant disputes is provided by the Housing Rights Center. Approximatley 140 people were provided services through this program. This amount is in addition to the 184 persons listed on the chart above.

Regarding HOME funds, none were expended during the 2022-2023 fiscal year therefore, no beneficieries are listed in the chart above.

CAPER 6
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-15 - Resources and Investments 91.520(a)
Identify the resources made available
Source of Funds Source Resources Made Available Amount Expended During Program Year
CDBG public - federal 670,421 438,992
HOME public - federal 341,617 0
Table 3 - Resources Made Available

Narrative
During the fiscal year 2022-2023, the City also allocated $670,421 in CDBG funds to support the city's programs. There is one major expenditure under the CDBG Program that results in the City having to pay the highest amount of dollars in costs, and that is the repayment of the Loan under Section 108 of the CDBG Program. It is estimated that a total of $438,991.85 has been spent from CDBG funds so far. The remaining funds have not been expended due to the time extension of one of the programs. Also most funds will be expended by July 30, 2023.

As part of the HOME program, the City received $341,617 during the fiscal year 2023-2024. In this program year, no HOME funds have been expended by the City as of yet. A project is currently underway in which the City is helping to rehabilitate one home in the city.

It is also important to note that in Fiscal year 2020, the City was also awarded $910,151 in CDBG-CV funding to assist in the preparation, prevention, and response to the COVID 19 pandemic. As part of the City's public service program, various organizations were funded, such as the Montebello Community Assistance Program (MCAP) which serves the City's homeless population by providing emergency motel vouchers, personal protective equipment, and hygiene kits as well as providing outreach to and engaging the homeless population. As part of the MCAP program, residents were also able to apply for rental assistance, and utility relief.

The CDBG-CV funds continued to be used through 2022-2023 fiscal year. The CDBG-CV funds are set to expire on March 2027. For the second amendment of the FY 20/21 Annual Action Plan, regarding the CDBG-CV funds for the MCAP Rental and Utility Assistance Program, it was identified that $37,566 was the reallocation amount for this activity however, due to a drawdown discrepancy from an incorrect activity, it is confirmed that the final total amount allocated to this activity is in the amount of $50,760.21. In order to ensure that the MCAP Homeless program amount remained the same in the amount of $563,122, the difference was reallocated from the available CDBG-CV Administration activity. According to the City's Citizen's Participation Plan, this is not considered a substantial amendment.

CAPER 7
OMB Control No: 2506-0117 (exp. 09/30/2021)
During the FY 2020-2021 period, HUD approved a waiver related to HOME, allowing grantees to reduce their match contributions by as much as 25%. As a result, the City was able to receive a 100% match reduction for the FY for which it is reporting. Therefore, the City had a $0 Match Liability for FY 2022.

Identify the geographic distribution and location of investments Target Area Planned Percentage of
Allocation
Actual Percentage of Allocation Narrative Description
Citywide 95 95
Qualified Census Tracts 5 5 Local Target area
Table 4 – Identify the geographic distribution and location of investments

Narrative
Most of the City's funds are not allocated on a geographical basis, choosing instead to support activities that will benefit all residents throughout the city. As a citywide housing and community development initiative, the City prioritizes the use of CDBG funds for housing, public services, and fair housing as well as public facilities on an annual basis. There are a number of activities targeted at special needs populations under the public services category that are provided on a citywide basis and/or in coordination with existing facilities or services. Low- and moderate-income persons are qualified to benefit from public improvements and public facilities.

The City identifies priority areas for public facilities and improvement projects, when funding them with CDBG funds. Identifying areas based on household income levels is based on data from the 2010 Census. The HUD standard for determining project eligibility is that at least 51 percent of low- to moderate-income residents must live in the area where public facility improvements are to be undertaken. A review of project eligibility is based on the type of activity and clientele served in accordance with the national objectives of the CDBG and HOME programs. The proposed project is evaluated either based on the 51 percent of low-moderate income households in the broader community or on the facilities and services located within the broader community.

CAPER 8
OMB Control No: 2506-0117 (exp. 09/30/2021)
Leveraging
Explain how federal funds leveraged additional resources (private, state and local funds), including a description of how matching requirements were satisfied, as well as how any publicly owned land or property located within the jurisdiction that were used to address the needs identified in the plan.

Funds allocated to activities are usually leveraged through a combination of Federal and Non-Federal sources of funding, namely:

General Funds; Gas Tax Funds; Metropolitan Transit Authority Funds; and Measure R Funds. As part of the city's efforts to address public infrastructure needs, the City also uses general funds, gas tax revenue, and water fund revenue to meet these needs.

As an additional source of funding, public service subrecipients used private and other funds to leverage the CDBG Program funds from the City to further their development.

HOME funds are provided to municipalities to meet the needs of affordable housing projects that meet the program's requirements and as a recipient of HOME funds, the City is required to provide non-federal financial contributions to such projects. The City's HOME entitlement amount must be supplemented by a minimum of 25% of the match contributions of the HOME funds expended from the City's HOME entitlement amount. In the case that the City has received a reduction in the match requirement, the amount will be less (less administration costs).

In FY 2022-2023, the poverty rate of the City was 11.4%, while the per capita income (PCI) was $27,450. As a result, the City is qualified for a 50% HOME Match reduction because it met the PCI criterion.

In the FY 2022-2023 Annual Action Plan, the City did not use any publicly owned land or property to address any of the needs identified in the plan.

CAPER 9
OMB Control No: 2506-0117 (exp. 09/30/2021)
Fiscal Year Summary – HOME Match

1. Excess match from prior Federal fiscal year 0

2. Match contributed during current Federal fiscal year 0

3. Total match available for current Federal fiscal year (Line 1 plus Line 2) 0

4. Match liability for current Federal fiscal year 0

5. Excess match carried over to next Federal fiscal year (Line 3 minus Line 4) 0 Table 5 – Fiscal Year Summary - HOME Match Report

Match Contribution for the Federal Fiscal Year
Project No. or
Other ID
Date of
Contribution
Cash
(non-Federal
sources)
Foregone
Taxes, Fees,
Charges
Appraised
Land/Real
Property
Required
Infrastructure
Site
Preparation,
Construction
Materials,
Donated labor
Bond
Financing
Total Match

Table 6 – Match Contribution for the Federal Fiscal Year

HOME MBE/WBE report
Program Income – Enter the program amounts for the reporting period Balance on hand at
begin-ning of reporting
period
$
Amount received during
reporting period
$
Total amount expended
during reporting period
$
Amount expended for
TBRA
$
Balance on hand at end
of reporting period
$
665,808 0 0 0 665,808
Table 7 – Program Income

CAPER 10
OMB Control No: 2506-0117 (exp. 09/30/2021)
Minority Business Enterprises and Women Business Enterprises – Indicate the number and dollar value of contracts for HOME projects completed during the reporting period Total Minority Business Enterprises White Non-
Hispanic Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black Non-
Hispanic
Hispanic
Contracts
Dollar
Amount 0 0 0 0 0 0
Number 0 0 0 0 0 0
Sub-Contracts
Number 0 0 0 0 0 0
Dollar
Amount 0 0 0 0 0 0
Total Women
Business
Enterprises
Male
Contracts
Dollar
Amount 0 0 0
Number 0 0 0
Sub-Contracts
Number 0 0 0
Dollar
Amount 0 0 0
Table 8 - Minority Business and Women Business Enterprises

Minority Owners of Rental Property – Indicate the number of HOME assisted rental property owners and the total amount of HOME funds in these rental properties assisted Total Minority Property Owners White Non-
Hispanic Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black Non-
Hispanic
Hispanic
Number 0 0 0 0 0 0
Dollar
Amount 0 0 0 0 0 0
Table 9 – Minority Owners of Rental Property

CAPER 11
OMB Control No: 2506-0117 (exp. 09/30/2021)
Relocation and Real Property Acquisition – Indicate the number of persons displaced, the cost of relocation payments, the number of parcels acquired, and the cost of acquisition Parcels Acquired 0 0
Businesses Displaced 0 0
Nonprofit Organizations
Displaced 0 0
Households Temporarily
Relocated, not Displaced 0 0
Households
Displaced
Total Minority Property Enterprises White Non-
Hispanic Alaskan
Native or
American
Indian
Asian or
Pacific
Islander
Black Non-
Hispanic
Hispanic
Number 0 0 0 0 0 0
Cost 0 0 0 0 0 0
Table 10 – Relocation and Real Property Acquisition

CAPER 12
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-20 - Affordable Housing 91.520(b)
Evaluation of the jurisdiction's progress in providing affordable housing, including the number and types of families served, the number of extremely low-income, low-income, moderate-income, and middle-income persons served.

One-Year Goal Actual
Number of Homeless households to be
provided affordable housing units 12 0
Number of Non-Homeless households to be
provided affordable housing units 5 0
Number of Special-Needs households to be
provided affordable housing units 18 0
Total 35 0
Table 11 – Number of Households

One-Year Goal Actual
Number of households supported through
Rental Assistance 0 0
Number of households supported through
The Production of New Units 0 0
Number of households supported through
Rehab of Existing Units 5 0
Number of households supported through
Acquisition of Existing Units 1 0
Total 6 0
Table 12 – Number of Households Supported

Discuss the difference between goals and outcomes and problems encountered in meeting these goals.

The following activities were undertaken by the City to achieve its affordable housing goal:

Housing Choice Voucher Program - The City of Montebello participates in the Los Angeles County Housing Authority's Housing Choice Voucher Program. As a result, the City of Montebello is providing rental assistance to families of very low income, the disabled, and the elderly in order to assist them in accessing affordable, decent, safe, and sanitary housing.

As part of the HOME program, the City allocated funds for the rehabilitation of homes. In addition to providing a deferred loan for improvements for properties and to bring dwellings up to code, this

CAPER 13
OMB Control No: 2506-0117 (exp. 09/30/2021)
program is for income-qualified applicants. As part of the City's Home Rehabilitation Program, one project was initiated during program year 2022-2023, which is currently underway.

Through outreach and mediation between tenants and landlords, the Housing Rights Center proactively advances fair housing in order to prevent housing discrimination in the community. Our enforcement efforts aim to eliminate housing discrimination across the country. The project provided general housing and discrimination assistance to approximately 140 households in FY 2022/2023.

Discuss how these outcomes will impact future annual action plans.

The City will continue to support programs and activities that help low- and moderate-income residents with their housing needs. As well as using HOME and CDBG funds to enhance housing and supportive services, the City is going to continue to utilize these funds. As part of the City's 2022-2023 program, the following activities have been initiated and completed by the City:

Developers who are for-profit and nonprofit are primarily responsible for developing affordable housing in Montebello. In order to promote the development of affordable housing, the City will continue to work with developers and provide financial incentives through HOME funds, as well as sell City-owned parcels to them. It will also offer regulatory incentives, such as density bonuses and flexible development standards, to private developers as part of the City's effort to increase the supply of affordable housing.

As part of its efforts to ensure that housing opportunities are available to extremely low income families, the City is taking a number of measures to make sure that this income group has access to housing opportunities. For example, the city will maximize Section 8 vouchers for this group, provide regulatory incentives, and encourage the construction of second units to accommodate low-income families.

The City refers residents to the Los Angeles County Housing Authority as affordable housing needs are identified for additional support. City residents can also reach out to the City to be connected to the Section 8 program.

Include the number of extremely low-income, low-income, and moderate-income persons served by each activity where information on income by family size is required to determine the eligibility of the activity.

Number of Households Served CDBG Actual HOME Actual
Extremely Low-income 79 0
Low-income 58 0
Moderate-income 47 0
Total 184 0
Table 13 – Number of Households Served

CAPER 14
OMB Control No: 2506-0117 (exp. 09/30/2021)

Narrative Information
This fiscal year, 324 people have been assisted by the City through its CDBG programs. The City is currently in progress with assisting one homeowner with rehabilitation of their home with HOME funds.

Through its Section 8 Housing Choice Voucher Program, the Los Angeles County Development Authority (LACDA) provides rental assistance to the low-income tenants of Los Angeles County in order to address the worst case of housing shortages. The voucher program provides housing assistance to eligible households living below 50 percent of the HUD Area Median Income in order to help them find decent, safe, and sanitary affordable housing that meets their needs. In order to qualify for this program, participants must pay 30% of the adjusted gross monthly income as rent each month. The Housing Authority will pay the landlord the balance of the monthly rent directly on their behalf.

A waiting list is also maintained by LACDA for the development of affordable housing under the City's Affordable Housing Program, which is a program administrated by the city. There are a number of affordable projects available to both extremely low-income households and very low-income households. In accordance with LACDA guidelines, priority must be given to those households that qualify for assistance in the following order:

1. The affected households are those that have been displaced from their homes as a result of the City's programs and projects;

2. Housing Choice Voucher holders who currently have a Section 8 Housing Choice Voucher in their possession;

3. Applicants whose names are on the Section 8 and Affordable Rental List maintained by the Authority;

4. A household in Montebello is one that resides and/or works there.

CAPER 15
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-25 - Homeless and Other Special Needs 91.220(d, e); 91.320(d, e); 91.520(c) Evaluate the jurisdiction’s progress in meeting its specific objectives for reducing and ending homelessness through:

Reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs
The City of Montebello is part of Service Planning Area (SPA) 7 which includes (but is not limited to) the cities of Artesia, Bell, Bell Gardens, Bellflower, Cerritos, Commerce, Cudahy, Downey, East Los Angeles, Hawaiian Gardens, Huntington Park, La Habra Heights, La Mirada, Lakewood, Los Nietos, Maywood, Norwalk, Pico Rivera, Santa Fe Springs, Signal Hill, South Gate, Vernon and Whittier. A Homeless Inventory Count (HIC) was conducted by the Los Angeles Homeless Authority (LAHSA) and City Staff in 2022. Additionally, A Point-in Time (PIT) Homeless Count was performed by City Staff and LAHSA. The PIT Homeless count identies the amount of homeless persons in the City of Montebello. The HIC identifies the avaiable beds that the City of Montebello can refer homeless individuals to if needed.

As a continued effort to reach out to homeless persons in the city, Montebello Community Assistance Program (MCAP) is a program that the City developed to assist the community in various ways. A special team, known as the MCAP, is integrated into the fire service delivery model (MCAP 56) to support fire personnel in providing services to those experiencing crisis and distress who do not require emergency services but are experiencing financial hardship. In the streets of Montebello and in riverbeds, often where the unhoused spend most of their time, the team performs outreach to unhoused individuals.

People experiencing homelessness (PEH) are often involved in the outreach team's service delivery after several encounters in which they build a relationship with the staff. As a result, the PEH will usually sign up for MCAP's services as clients if they agree. Through ongoing engagements or intensive case management, the team provides detailed follow-up services to help ensure the success of the program.

MCAP provides a broad range of field services, including transport to the DMV and the Social Security Office, for the purpose of obtaining personal identification documents necessary to apply for more intensive supportive services with the goal of being able to maintain their independence. MCAP routinely provides food banks, job placement services, substance abuse agencies, mental health, medical and social services.

Addressing the emergency shelter and transitional housing needs of homeless persons Montebello is committed to continuing to address the issue of homelessness as part of its CDBG program, and recognizes that homelessness is one of the most important problems facing our community right now. The City has supported several homeless service providers in the community for many years. They provide a variety of services that help prevent and treat homelessness, as well as provide supportive services, emergency shelter, and transitional housing for people experiencing homelessness.

CAPER 16
OMB Control No: 2506-0117 (exp. 09/30/2021)
Considerable efforts are being made by the City to help homeless clients, such as providing emergency shelter, food, counseling, and money for transportation, in conjunction with Hearts of Compassion and the Montebello Community Assistance Program (MCAP).

As part of MCAP's services, unhoused individuals are referred to local emergency shelters located in SPA 7 for the purpose of getting them into housing. MCAP will assess unhoused Montebello residents for Operation Stay Safe Tiny Homes, the Department of Human Services Interim Housing, and the Montebello Collaborative Housing Program. It is also known that temporary motel/hotel assistance is another resource that the team deploys to address the needs of homeless people in need of emergency shelter. As part of the program, residents who may be at risk of becoming homeless are served, such as those affected by house fires and traffic collisions that left their homes in unsafe conditions. When the MCAP program cannot provide emergency shelter directly, then the team refers individuals to another emergency shelter program within the county called Project Home Key, another program that can provide emergency shelter.

Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: likely to become homeless after being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); and, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs To ensure the efficiency and effectiveness of the city's programs that benefit low-income individuals and families, the City will continue to coordinate the efforts of local and county social service agencies, including the Los Angeles County Department of Public Social Services, the United Way of Greater Los Angeles, the Housing Rights Center, as well as other nonprofit and public service organizations.

Homelessness is addressed within the community through the Montebello Community Assistance Program (MCAP), a program that the City operates to address the needs of the homeless. Unhoused people who are not housed by MCAP are referred to our social services for assistance, and/or to our local housing authority, as well as to our housing rights center for assistance.

Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again
Montebello has established its own homeless program (MCAP) to meet the needs of the homeless population within the city. Throughout MCAP's outreach program, they were able to provide motel vouchers, food, and showers as outreach services to homeless individuals in our community who were

CAPER 17
OMB Control No: 2506-0117 (exp. 09/30/2021)
in need of outreach services. Aside from coordinating with City agencies, the Los Angeles County Homeless Services Agency, Los Angeles County Housing Authority, and the Los Angeles County Community Development Commission are also working together to ensure that the homeless population in the county is served. Our goal at MCAP is to help clients obtain housing information throughout the entire housing process, from securing treatment and medication in the case of mental health issues, to obtaining documentation for housing, to helping clients find shelter. As one of the most important programs in the program, MCAP plays a key role in looking after the needs of individuals by providing housing referrals to external agencies, providing transportation to see potential housing units, transportation to move into the housing unit, and providing bus/train tickets for reunification with family members. The housing navigator is responsible for identifying housing subsidy programs that clients may qualify for in collaboration with PATH and other organizations. The MCAP program continues to be funded through CDBG-CV funds which expire in March 2027.

Through CDBG activities during the 2022-2023 fiscal year, the City of Montebello funded organizations such as Hearts of Compassion and the YMCA, who provide food distribution services to seniors and low- income families, as part of its CDBG program. A Youth Employment Program (YEP) was also funded with CDBG funds; subsidized employment programs like these help with youth development but can also help households offset costs while the youth is earning their own income.

CAPER 18
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-30 - Public Housing 91.220(h); 91.320(j)
Actions taken to address the needs of public housing
While the City supports the efforts of the Housing Authority in providing rental assistance to low-income households through the Section 8 program, it is important to note that it does not directly participate in either the ownership or management of public housing because it is not considered a public housing authority.

Actions taken to encourage public housing residents to become more involved in management and participate in homeownership
The City has a strong commitment to supporting the efforts made by the Housing Authority to provide rental assistance to low-income households through the Section 8 program, but the City does not have direct involvement in the ownership or management of public housing because it is not a housing authority.

Actions taken to provide assistance to troubled PHAs
Montebello is not responsible for administering any public housing programs that are offered by the city. There is no indication that the local Housing Authority may be in trouble.

CAPER 19
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-35 - Other Actions 91.220(j)-(k); 91.320(i)-(j)
Actions taken to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment. 91.220 (j); 91.320 (i) There are a number of ways the City's Housing Element has identified that can help remove barriers to affordable housing in its city. As part of its continuing efforts, the City continues to:
• Maintain active communication with developers, residents, and nonprofit organizations that are involved in planning, constructing, and developing Montebello's housing projects to provide Montebello with the most robust planning and infrastructure. • It is imperative to communicate to the general public the issue of affordable housing on a regular basis in a manner that facilitates acceptance and appreciation by the public. • Researching and evaluating the feasibility of housing programs, taking into account the current housing market and the available funding, is essential.

In order to offer Section 8 Housing Choice Vouchers (HCVs) through the LA County Housing Authority, the City of Montebello partnered with the LA County Housing Authority. Montebello's Housing Choice Voucher Program is administered by the Los Angeles County Housing Authority. The purpose of the program is to provide rental assistance to low-income families, the disabled, and the elderly in order to help them access affordable, decent, and safe housing in the city of Montebello.

Montebello offers the following programs as part of its community services:
• Through the Housing Rehabilitation and Preservation Program (HRPP), Montebello homeowners who qualify for the program are provided with forgivable loans to help them renovate or repair their home. It is the City's intention to work with a homeowner in order to complete eligibility qualifications so that work on the project can get underway. • Acquisition and New Construction of Affordable Housing - The City is setting aside a portion of funds to allow the development of affordable housing in the future.

Actions taken to address obstacles to meeting underserved needs. 91.220(k); 91.320(j) As is the case with most municipalities, access to funding is one of the biggest obstacles involved in meeting all the community's needs. Throughout the years, community partnerships have been integral to the development of a sustainable community in the City, enabling any gaps in unmet needs of the community to be filled. CDBG funds were provided by the City during the fiscal year of 2022-2023 to address food insecurity for families and other services for those experiencing or at risk of being homeless, and subsidized employment opportunities for youth in need.

CAPER 20
OMB Control No: 2506-0117 (exp. 09/30/2021)
Throughout fiscal year 2022-2023, as part of the City's in-house homeless outreach program, known as MCAP, the City continued to implement its in-house homeless outreach program. All registered social service providers located in Montebello provide services to the residents of the City of Montebello through the City of Montebello maintaining communication with them on a regular basis. For the community of Montebello to be able to meet all their societal needs, the City is committed to leveraging and promoting its existing relationships with service providers and fostering new relationships to ensure that our existing relationships are leveraged and enhanced.

In order to promote all housing and community services and programs throughout the city, the City uses a variety of social media, including local newspapers, the City website, and community events.

Actions taken to reduce lead-based paint hazards. 91.220(k); 91.320(j) Various educational tools are made available to the public by the City of Montebello, including the Completion of Annual Action Plans, and public announcements pertaining to lead-based paint hazards information. It has been mandated that all programs and projects funded through the CDBG and HOME programs must incorporate steps to reduce the hazards associated with lead-based paint. As part of the City's Home Rehabilitation Program, the City provides lead-based paint hazard testing for homes in need of rehabilitation.

Actions taken to reduce the number of poverty-level families. 91.220(k); 91.320(j) Families living in poverty are served by a network of existing agencies within the City, which are able to provide social services. Residents can access a list of public services agencies and homeless resources provided by the City as well as links to social service agencies that are available for residents to use. The City also supports other agencies such as the government, private developers, and nonprofit organizations that are involved in developing affordable housing for low- and moderate-income residents, and creating economic opportunities for them. Additionally, since the CDBG funds are being used for funding purposes, the City also seeks to be intentional about the types of activities and subrecipients that it funds according to the Consolidated Plan goals, in order to best serve the needs of the City's residents and whose services can have a significant impact on the community in which it is located.

Actions taken to develop institutional structure. 91.220(k); 91.320(j) The City of Montebello works closely with nonprofit organizations and other governmental entities to identify the critical needs of households in its efforts to eliminate institutional gaps and enhance coordination of programs. By holding public meetings and public hearings, the City will continue to seek feedback from the public and nonprofit agencies regarding how its CDBG funds are allocated.

A monitoring process has been established as part of the City's grant administration to ensure that subrecipients are meeting their clients' needs as well as complying with regulatory requirements.

CAPER 21
OMB Control No: 2506-0117 (exp. 09/30/2021)
Monitoring subrecipients on a regular basis is part of the City's monitoring program, and the City works with them to ensure documentation of financial and performance information is kept in the project files.

Fair housing activities are expected to continue to be funded by the City in order to promote, educate, and enforce fair housing practices in the community. As part of our efforts to maximize the effectiveness of our planned activities, the City will also continue to coordinate and make referrals to local government agencies and social service agencies for residents seeking affordable housing.

A number of nonprofit agencies and public service groups are collaborating with Montebello in order to deliver programs in this area using its federal entitlement and other resources. There are a number of agencies and groups that fall into this category, including:
• Housing Rights Center
• YMCA
• Heart of Compassion
• Montebello Community Assistance Program
• Mexican American Opportunity Foundation
• Youth Employment Program
Actions taken to enhance coordination between public and private housing and social service agencies. 91.220(k); 91.320(j)
This CAPER notes that the City participates in the Los Angeles Continuum of Care (LA CoC) as one of the ways it coordinates between public/private housing and social service agencies, which, as previously noted in this CAPER, provides various services to those at risk of homelessness or currently experiencing it. As with the LA CoC, the City maintains a contract with the East San Gabriel Valley Coalition for the Homeless, which provides services including shelters, motel vouchers, food security, and counseling to the homeless.

Another way that the City coordinates with housing and social service agencies is through its selection of CDBG public service recipients. As part of its efforts to connect residents with services that would otherwise have required them to navigate different systems, the City invites a range of service providers from different sectors, such as housing and social services, to provide them with access to their services.

Identify actions taken to overcome the effects of any impediments identified in the jurisdictions analysis of impediments to fair housing choice. 91.520(a) An updated Analysis of Impediments to Fair Housing Choice was published by the City in August 2019.

Each year, the City contracts with the Housing Rights Center with the use of CDBG funds to ensure that residents have access to fair housing information and assistance pursuant to the Fair Housing Act's requirement that Grantees Affirmatively Further Fair Housing. The Housing Rights Center assists the city in preventing and reducing housing discrimination.

CAPER 22
OMB Control No: 2506-0117 (exp. 09/30/2021)
There are several actions that can be taken to address these impediments, including the following:

1. Complaints of housing discrimination will continue to be handled by the Housing Rights Center.

2. There will be information on the City's website regarding fair housing, including how to contact the Housing Rights Center, provided by the Housing Rights Center.

3. A variety of educational and outreach materials will be made available to residents, local real estate agents, and onsite apartment managers in apartment communities.

4. The Housing Rights Center will include a periodic review of newspaper and online advertising.

When discriminatory advertising is found, the Housing Rights Center will then contact the on- site manager of the apartment community placing the ad.

5. The Housing Rights Center will advocate that disabled people have a right to request a reasonable accommodation for a service or companion animal.

The Housing Rights Center conducted fair housing workshops, distributed publicity materials for events, provided educational materials, and completed surveys in order to determine the extent of unfair housing conditions in the city during the fiscal year 2022-2023. Tenants, homeowners, and landlords were the target audience for these efforts. The Housing Rights Center is contacted in the event that a complaint is received by the City.

CAPER 23
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-40 - Monitoring 91.220 and 91.230
Describe the standards and procedures used to monitor activities carried out in furtherance of the plan and used to ensure long-term compliance with requirements of the programs involved, including minority business outreach and the comprehensive planning requirements
The Planning and Community Development Department (Housing Division), of the City of Montebello, is responsible for ensuring that the receipt and expenditure of HUD funds comply with program requirements by monitoring program performance in accordance with all CDBG and HOME Monitoring regulations.

CDBG and HOME funds received by the City are administered by the Finance Department and monitoring is carried out by the City‘s Planning and Community Development Department (Housing Division).The City relies on a number of governmental departments and agencies, and non-profit organizations to carry out the City‘s housing and community development programs. The functions associated with the Housing Division directly impact and facilitate the development of housing, infrastructure improvements, community facilities, and public service.

This year’s budget includes a commitment to ensuring that City staff and program consultants continue to focus on revisiting program policies and procedures to ensure they are following local and federal laws and to discuss ways to improve monitoring and working with subrecipients so that compliance can be assured. As part of the project management process, City staff meets with all CDBG-funded project managers at the beginning of each program year to talk about the reporting requirements and the monitoring expectations for each project. A quarterly progress report is required from program providers, which are reviewed for compliance on a quarterly basis.

An annual review of site monitoring is usually conducted with program providers during the year using the following model:
• The subrecipient agencies are notified before the monitoring takes place with a formal monitoring notification letter.
• The purpose, scope, objectives, and goals of the program are being clarified through an entrance interview with key representatives.
• In addition to providing an opportunity to discuss compliance and reporting concerns, the exit conference will provide an opportunity for the program provider to provide an update on steps being taken to address areas of non-compliance or non-performance. The review concludes with the presentation of preliminary results of the monitoring. • Monitoring documentation includes monitoring check sheets, supporting documentation, and a final report.
• A formal notification of the results of the monitoring review is sent to the program provider, which establishes a permanent written record along with an outline of any concerns or findings.

CAPER 24
OMB Control No: 2506-0117 (exp. 09/30/2021)
The notification also specifies a deadline for the subrecipient provider to respond in writing or to correct any issues identified.
• It is the monitor’s responsibility to provide the technical assistance needed to ensure that the p
rograms are productive and in compliance with federal regulations.

Citizen Participation Plan 91.105(d); 91.115(d)
Describe the efforts to provide citizens with reasonable notice and an opportunity to comment on performance reports.

The City of Montebello undertook all reporting and planning program requirements in compliance with CDBG and HOME program regulations and citizen participation requirements. Specifically, the City of Montebello:
• City staff attended and participated in City Council meetings and other pertinent meetings. • City staff attended, when available, HUD workshops and trainings for staff development and capacity building
Public participation related to the year-end CAPER report has been encouraged in compliance with the citizen participation requirements of the City of Montebello Citizen Participation Plan. A notice was published in the Montebello News on August 3, 2023, announcing the availability of the CAPER for public review for a 20-day comment period from August 3, 2023 to August 23, 2023. The report was made available for review at the City of Montebello City Hall, specifically in the Planning and Community Development Department (Housing Division) and the City website at, https:// www.montebelloca.gov . Comments received will be incorporated into the final document.

CAPER 25
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-45 - CDBG 91.520(c)
Specify the nature of, and reasons for, any changes in the jurisdiction’s program objectives and indications of how the jurisdiction would change its programs as a result of its experiences.

The City did not have any changes to the program objectives.

Does this Jurisdiction have any open Brownfields Economic Development Initiative (BEDI) grants?
No.
[BEDI grantees] Describe accomplishments and program outcomes during the last year.

Not applicable.

CAPER 26
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-50 - HOME 24 CFR 91.520(d)
Include the results of on-site inspections of affordable rental housing assisted under the program to determine compliance with housing codes and other applicable regulations Please list those projects that should have been inspected on-site this program year based upon the schedule in 24 CFR §92.504(d). Indicate which of these were inspected and a summary of issues that were detected during the inspection. For those that were not inspected, please indicate the reason and how you will remedy the situation.

At the end of the program year, the City had one eligible project located at 2917 Via Campo in Montebelo, which was recertified in December 2022 in accordance with the program requirements and was found to still be eligible.

Provide an assessment of the jurisdiction's affirmative marketing actions for HOME units. 24 CFR 91.520(e) and 24 CFR 92.351(a)
HOME regulations require all HOME-funded projects with five or more assisted units to follow affirmative marketing guidelines. There is currently one rental property that the City monitors on a regular basis. Therefore, the affirmative marketing procedures and requirements are not applicable. It is important to note that the City's affirmative marketing plan outlines what would happen if it were to add more than five units. There is a specific marketing requirement that is triggered for each HOME project that the City undertakes, and a suitable marketing plan is developed in response.

The Affirmative Marketing Plan will include the following:
• List of methods to inform the public, owners and potential tenants about fair housing laws and City’s marketing policy;
• Description of the efforts that will be made to conduct affirmative market housing units assisted with HOME funds. Owners and leasing agents will place advertisements to market HOME assisted units through local sources, public agencies and social service organizations; • Description of outreach efforts to people not likely to apply for housing without special outreach. These efforts will include the distribution of marketing materials to organizations that likely have contact with these populations;
• Maintenance of records to document actions taken to affirmatively market HOME assisted units and to assess marketing effectiveness; and
• Description of actions that will be taken if requirements are not met. • During site visits, overall performance related to fair housing and non-discrimination is monitored to ensure fair housing compliance.

CAPER 27
OMB Control No: 2506-0117 (exp. 09/30/2021)
Refer to IDIS reports to describe the amount and use of program income for projects, including the number of projects and owner and tenant characteristics The City of Montebello received $74,880 in HOME Program Income during the reporting fiscal year.

Describe other actions taken to foster and maintain affordable housing. 24 CFR 91.220(k) (STATES ONLY: Including the coordination of LIHTC with the development of affordable housing). 24 CFR 91.320(j)
Not applicable.

CAPER 28
OMB Control No: 2506-0117 (exp. 09/30/2021)
CR-58 – Section 3
Identify the number of individuals assisted and the types of assistance provided

Total Labor Hours CDBG HOME ESG HOPWA HTF
Total Number of Activities 0 0 0 0 0
Total Labor Hours 0 0
Total Section 3 Worker Hours 0 0
Total Targeted Section 3 Worker Hours 0 0
Table 14 – Total Labor Hours

Qualitative Efforts - Number of Activities by Program CDBG HOME ESG HOPWA HTF Outreach efforts to generate job applicants who are Public Housing Targeted Workers 0 0
Outreach efforts to generate job applicants who are Other Funding Targeted Workers. 0 0
Direct, on-the job training (including apprenticeships). 0 0 Indirect training such as arranging for, contracting for, or paying tuition for, off-site training. 0 0
Technical assistance to help Section 3 workers compete for jobs (e.g., resume assistance, coaching). 0 0
Outreach efforts to identify and secure bids from Section 3 business concerns. 0 0
Technical assistance to help Section 3 business concerns understand and bid on contracts. 0 0
Division of contracts into smaller jobs to facilitate participation by Section 3 business concerns. 0 0
Provided or connected residents with assistance in seeking employment including: drafting resumes,preparing for interviews, finding job opportunities, connecting residents to job placement services. 0 0
Held one or more job fairs. 0 0
Provided or connected residents with supportive services that can provide direct services or referrals. 0 0
Provided or connected residents with supportive services that provide one or more of the following: work readiness health screenings, interview clothing, uniforms, test fees, transportation. 0 0
Assisted residents with finding child care. 0 0
Assisted residents to apply for, or attend community college or a four year educational institution. 0 0
Assisted residents to apply for, or attend vocational/technical training. 0 0 Assisted residents to obtain financial literacy training and/or coaching. 0 0 Bonding assistance, guaranties, or other efforts to support viable bids from Section 3 business concerns. 0 0
Provided or connected residents with training on computer use or online technologies. 0 0
Promoting the use of a business registry designed to create opportunities for disadvantaged and small businesses. 0 0 Outreach, engagement, or referrals with the state one-stop system, as designed in Section 121(e)(2) of the Workforce Innovation and Opportunity Act.
0 0

CAPER 29
OMB Control No: 2506-0117 (exp. 09/30/2021)
Other. 0 0
Table 15 – Qualitative Efforts - Number of Activities by Program

Narrative
During the fiscal year 2022-2023 the City did not have any activities that were eligible for funding under Section 3.

PR26 - CDBG Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE: 1
11:22
08-08-23
Program Year 2022

MONTEBELLO , CA
Metrics
Grantee
Program Year
PART I: SUMMARY OF CDBG RESOURCES
01 UNEXPENDED CDBG FUNDS AT END OF PREVIOUS PROGRAM YEAR 02 ENTITLEMENT GRANT
03 SURPLUS URBAN RENEWAL
04 SECTION 108 GUARANTEED LOAN FUNDS
05 CURRENT YEAR PROGRAM INCOME
05a CURRENT YEAR SECTION 108 PROGRAM INCOME (FOR SI TYPE) 06 FUNDS RETURNED TO THE LINE-OF-CREDIT
06a FUNDS RETURNED TO THE LOCAL CDBG ACCOUNT
07 ADJUSTMENT TO COMPUTE TOTAL AVAILABLE
08 TOTAL AVAILABLE (SUM, LINES 01-07)
PART II: SUMMARY OF CDBG EXPENDITURES
09 DISBURSEMENTS OTHER THAN SECTION 108 REPAYMENTS AND PLANNING/ADMINISTRATION 10 ADJUSTMENT TO COMPUTE TOTAL AMOUNT SUBJECT TO LOW/MOD BENEFIT 11 AMOUNT SUBJECT TO LOW/MOD BENEFIT (LINE 09 + LINE 10) 12 DISBURSED IN IDIS FOR PLANNING/ADMINISTRATION
13 DISBURSED IN IDIS FOR SECTION 108 REPAYMENTS
14 ADJUSTMENT TO COMPUTE TOTAL EXPENDITURES
15 TOTAL EXPENDITURES (SUM, LINES 11-14)
16 UNEXPENDED BALANCE (LINE 08 - LINE 15)
PART III: LOWMOD BENEFIT THIS REPORTING PERIOD
17 EXPENDED FOR LOW/MOD HOUSING IN SPECIAL AREAS
18 EXPENDED FOR LOW/MOD MULTI-UNIT HOUSING
19 DISBURSED FOR OTHER LOW/MOD ACTIVITIES
20 ADJUSTMENT TO COMPUTE TOTAL LOW/MOD CREDIT
21 TOTAL LOW/MOD CREDIT (SUM, LINES 17-20)
22 PERCENT LOW/MOD CREDIT (LINE 21/LINE 11)

LOW/MOD BENEFIT FOR MULTI-YEAR CERTIFICATIONS
23 PROGRAM YEARS(PY) COVERED IN CERTIFICATION
24 CUMULATIVE NET EXPENDITURES SUBJECT TO LOW/MOD BENEFIT CALCULATION 25 CUMULATIVE EXPENDITURES BENEFITING LOW/MOD PERSONS
26 PERCENT BENEFIT TO LOW/MOD PERSONS (LINE 25/LINE 24) PART IV: PUBLIC SERVICE (PS) CAP CALCULATIONS
27 DISBURSED IN IDIS FOR PUBLIC SERVICES
28 PS UNLIQUIDATED OBLIGATIONS AT END OF CURRENT PROGRAM YEAR 29 PS UNLIQUIDATED OBLIGATIONS AT END OF PREVIOUS PROGRAM YEAR 30 ADJUSTMENT TO COMPUTE TOTAL PS OBLIGATIONS
31 TOTAL PS OBLIGATIONS (LINE 27 + LINE 28 - LINE 29 + LINE 30) 32 ENTITLEMENT GRANT
33 PRIOR YEAR PROGRAM INCOME
34 ADJUSTMENT TO COMPUTE TOTAL SUBJECT TO PS CAP
35 TOTAL SUBJECT TO PS CAP (SUM, LINES 32-34)
36 PERCENT FUNDS OBLIGATED FOR PS ACTIVITIES (LINE 31/LINE 35) PART V: PLANNING AND ADMINISTRATION (PA) CAP
37 DISBURSED IN IDIS FOR PLANNING/ADMINISTRATION
38 PA UNLIQUIDATED OBLIGATIONS AT END OF CURRENT PROGRAM YEAR 39 PA UNLIQUIDATED OBLIGATIONS AT END OF PREVIOUS PROGRAM YEAR 40 ADJUSTMENT TO COMPUTE TOTAL PA OBLIGATIONS
41 TOTAL PA OBLIGATIONS (LINE 37 + LINE 38 - LINE 39 +LINE 40) 42 ENTITLEMENT GRANT
43 CURRENT YEAR PROGRAM INCOME
44 ADJUSTMENT TO COMPUTE TOTAL SUBJECT TO PA CAP
45 TOTAL SUBJECT TO PA CAP (SUM, LINES 42-44)
46 PERCENT FUNDS OBLIGATED FOR PA ACTIVITIES (LINE 41/LINE 45)

MONTEBELLO , CA
2,022.00

0.00 670,421.00

0.00 0.00
74,880.00

0.00 0.00

0.00 0.00
745,301.00

102,903.97

0.00 102,903.97
75,310.29
432,260.43

0.00 610,474.69
134,826.31

0.00 0.00
102,903.97

0.00 102,903.97
100.00%

PY: PY: PY:

0.00 0.00

0.00%

71,288.00

0.00 0.00

0.00 71,288.00
670,421.00
132,130.95

0.00 802,551.95

8.88%

75,310.29

0.00 0.00

0.00 75,310.29
670,421.00
74,880.00

0.00 745,301.00

10.10%

PR26 - CDBG Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE: 2
11:22
08-08-23
Program Year 2022

MONTEBELLO , CA
LINE 17 DETAIL: ACTIVITIES TO CONSIDER IN DETERMINING THE AMOUNT TO ENTER ON LINE 17 No data returned for this view. This might be because the applied filter excludes all data.

LINE 18 DETAIL: ACTIVITIES TO CONSIDER IN DETERMINING THE AMOUNT TO ENTER ON LINE 18 No data returned for this view. This might be because the applied filter excludes all data.

LINE 19 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 19 Plan
Year
IDIS
Project
IDIS
Activity
Voucher
Number Activity Name Matrix
Code
National
Objective Drawn Amount
2020

2020

2022
2022

2022
2022
2022
2022
2022

Total
5 4
3 3
8 8
8 9
9 486
484
502
502
501
501
501
498
498
6762521
6750821
6717032
6741183
6717032
6741183
6779575
6717032
6741183

MONTEBELLO SENIOR CENTER IMPROVEMENTS

STREET IMPROVEMENTS
CDBG: YOUTH EMPLOYMENT PROGRAM (YEP)
CDBG: YOUTH EMPLOYMENT PROGRAM (YEP)
CDBG: YMCA FOOD DISTRIBUTION
CDBG: YMCA FOOD DISTRIBUTION
CDBG: YMCA FOOD DISTRIBUTION
CDBG: HEART OF COMPASSION (HOC) FOOD DISTRIBUTION
CDBG: HEART OF COMPASSION (HOC) FOOD DISTRIBUTION
03A
03A
03K
03K
05H
05H
05H
05W
05W
05W
05W
05W
05W
LMC
Matrix Code 03A
LMA
Matrix Code 03K
LMC
LMC
Matrix Code 05H
LMC
LMC
LMC
LMC
LMC
Matrix Code 05W
$2,785.00
$2,785.00
$28,830.97
$28,830.97
$15,141.51
$1,146.49
$16,288.00
$9,116.54
$9,429.30
$6,454.16
$7,500.00
$22,500.00
$55,000.00
$102,903.97
LINE 27 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 27 Plan
Year
IDIS
Project
IDIS
Activity
Voucher
Number
Activity to
prevent,
prepare for,
and respond
to
Coronavirus
Activity Name Grant Number Fund
Type
Matrix
Code
National
Objective
Drawn Amount
2022
2022

2022
2022
2022
2022
2022
2022

Total
3 3
8 8
8 8
9 9
502
502
501
501
501
501
498
498
6717032
6741183
6717032
6717032
6741183
6779575
6717032
6741183
No
No
No
No
No
No
No
No
No
CDBG: YOUTH EMPLOYMENT PROGRAM (YEP)
CDBG: YOUTH EMPLOYMENT PROGRAM (YEP)
CDBG: YMCA FOOD DISTRIBUTION
CDBG: YMCA FOOD DISTRIBUTION
CDBG: YMCA FOOD DISTRIBUTION
CDBG: YMCA FOOD DISTRIBUTION
CDBG: HEART OF COMPASSION (HOC) FOOD DISTRIBUTION
CDBG: HEART OF COMPASSION (HOC) FOOD DISTRIBUTION
Activity to prevent, prepare for, and respond to Coronavirus B22MC060555
B22MC060555
B21MC060555
B22MC060555
B22MC060555
B22MC060555
B21MC060555
B22MC060555
EN
EN
PI
EN
EN
PI
PI
EN
05H
05H
05H
05W
05W
05W
05W
05W
05W
05W
LMC
LMC
Matrix Code 05H
LMC
LMC
LMC
LMC
LMC
LMC
Matrix Code 05W
$15,141.51
$1,146.49
$16,288.00
$6,743.12
$2,373.42
$9,429.30
$6,454.16
$7,500.00
$22,500.00
$55,000.00
$71,288.00
$71,288.00
LINE 37 DETAIL: ACTIVITIES INCLUDED IN THE COMPUTATION OF LINE 37 Plan
Year
IDIS
Project
IDIS
Activity
Voucher
Number Activity Name Matrix
Code
National
Objective Drawn Amount
2021
2021
2022
2022
2022
2022

2022

7 7
4 4
4 4
1 493
493
499
499
499
499
500
6688042
6712550
6717032
6741183
6762521
6779575
6721693
Planning and Administration CDBG
Planning and Administration CDBG
CDBG: PLANNING AND ADMINISTRATION
CDBG: PLANNING AND ADMINISTRATION
CDBG: PLANNING AND ADMINISTRATION
CDBG: PLANNING AND ADMINISTRATION
CDBG: HOUSING RIGHTS CENTER (HRC)
21A
21A
21A
21A
21A
21A
21A
21D
21D
Matrix Code 21A
Matrix Code 21D
$2,703.75
$1,141.96
$23,830.25
$22,163.85
$18,475.23
$125.00
$68,440.04
$6,870.25
$6,870.25

PR26 - CDBG Financial Summary Report
U.S. Department of Housing and Urban Development
Office of Community Planning and Development
Integrated Disbursement and Information System
DATE:

TIME:

PAGE: 3
11:22
08-08-23
Program Year 2022

MONTEBELLO , CA
Plan
Year
IDIS
Project
IDIS
Activity
Voucher
Number Activity Name Matrix
Code
National
Objective Drawn Amount
Total $75,310.29

This space for filing stamp only
OR#:

O R A N G E C O U N T Y R E P O R T E R ~ SINCE 1921 ~
600 W. Santa Ana Blvd., Suite 205, Santa Ana, California 92701-4542 Telephone (714) 543-2027 / Fax (714) 542-6841

PROOF OF PUBLICATION
(2015.5 C.C.P.)
State of California )
County of Orange ) ss
Notice Type:

Ad Description:

I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the ORANGE COUNTY REPORTER, a newspaper published in the English language in the City of Santa Ana, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of Orange, State of California, under date of June 2, 1922, Case No. 13,421. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:

Executed on: 10/10/2004
At Los Angeles, California
I certify (or declare) under penalty of perjury that the foregoing is true and correct.

Signature

MONTEBELLO NEWS
3731 WILSHIRE BLVD STE 840, LOS ANGELES, CA 90010
(323) 556-5720 (213) 835-0584
EWA 3725182

ALEJANDRO RODARTE

CITY OF MONTEBELLO/CITY CLERK (LEAD)
1600 W. BEVERLY BLVD
MONTEBELLO, CA - 90640

HRG - NOTICE OF HEARING
Notice of Public Hearing - CAPER
I am a citizen of the United States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested in the above entitled matter. I am the principal clerk of the printer and publisher of the MONTEBELLO NEWS, a newspaper published in the English language in the city of MONTEBELLO, county of LOS ANGELES, and adjudged a newspaper of general circulation as defined by the laws of the State of California by the Superior Court of the County of LOS ANGELES, State of California, under date 03/13/1934, Case No. 369441. That the notice, of which the annexed is a printed copy, has been published in each regular and entire issue of said newspaper and not in any supplement thereof on the following dates, to-wit:
08/03/2023
08/03/2023

LOS ANGELES
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CITY OF MONTEBELLO NOTICE OF PUBLIC

COMMENT PERIOD AND OF PUBLIC

HEARING REGARDING COMMUNITY

DEVELOPMENT BLOCK GRANT (CDBG) AND

HOME INVESTMENT PARTNERSHIP (HOME)

PROGRAMS CITY OF MONTEBELLO

CONSOLIDATED ANNUAL PERFORMANCE

AND EVALUATION REPORT (CAPER) FOR
THE PERIOD JULY 1, 2022 TO JUNE 30, 2023
PROJECT DESCRIPTION : The City of
Montebello is a recipient of Community
Development Block Grant (CDBG) and HOME
Investment Partnership program (HOME) funds.

These funds are awarded to the City by the
United States Department of Housing and Urban
Development (HUD). For the City to receive these
funds, the City is required to prepare a Five-Year
Consolidated Plan as well as an Annual Action
Plan outlining the planned use of CDBG and
HOME funds. At the conclusion of the fiscal year,
the City must prepare a year-end performance
report known as the CAPER. The 2022-2023
CAPER covers the period of July 1, 2022,
through June 30, 2023, and provides a summary
of activities undertaken within CDBG and HOME
funds during the report period.

Public Review and Comment Period : The draft
2022-2023 Consolidated Annual Performance
and Evaluation Report (CAPER) will be available
for public review and comment for fifteen (15)
days or more beginning on August 3, 2023, and
ending on August 23, 2023. This document will
be available for public review on the City of
Montebello's website at
https://www.montebelloca.gov/cms/One.aspx?por
talId=58756&pageId=79103.

During the comment period, comments and/or
questions may be submitted to:

Planning and Community Development
Department
Attn: Rosemary Perich, Housing Manager
1600 W. Beverly Boulevard, Montebello, CA
90640
Office telephone: (323) 887-1200 Ext. 454
Monday through Thursday, 7:30 A.M. to 5:30
P.M.

PUBLIC HEARING INFORMATION:

NOTICE IS HEREBY GIVEN that the City Council
(“City Council') of the City of Montebello (“City”)
will conduct a public hearing to receive the draft
2022-2023 Consolidated Annual Performance
and Evaluation Report (CAPER). The meeting /
public hearing is scheduled to be held on:

Date: Wednesday, August 23, 2023
Time: 6:00 p.m. or as soon thereafter as the
matter may be heard
Place: City Hall Council Chambers, 1600 W.

Beverly Blvd., Montebello, CA 90640
It is noticed that from August 3, 2023, to August
23, 2023, the draft 2022-2023 Consolidated
Annual Performance and Evaluation Report
(CAPER) may be reviewed at the following
locations:

City of Montebello Website – Homepage
https://www.cityofmontebello.com
In- Person : For those interested in participating
during the Public Comment period(s) or public
testimony period for Public Hearings of the City
Council meetings, you may address the City
Council 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 6:00 p.m. and Regular Session
begins immediately thereafter; if there is no
Closed Session, Regular Session will begin at
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, August 23,
2023, by 3:00 p.m. These comments will be

ATTACHMENT C

subm itted to all members of the City Council 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. Any
requests to provide public comment which is
submitted after the deadlines indicated above will
not be submitted to the City Council.

Kimberly Guillen, Acting Senior Deputy City Clerk
Dated: July 27, 2023
Date posted: August 3, 2023
Date published: August 3, 2023
8/3/23
EWA -3725182#

MONTEBELLO NEWS

ITEM # 7

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT

TO: Honorable Mayor and City Council Members

FROM: Arlene Salazar, Acting City Manager

BY: James Enriquez, Director of Public Works

SUBJECT: MONTEBELLO MUNICIPAL GOLF COURSE RENOVATION PROJECT PHASE 3 (CP NO. 894-3) – AWARD OF CONSTRUCTION CONTRACT

DATE: August 23, 2023

RECOMMENDATION(S):

It is recommended that the City Council:

1. Find that the bid received from J-Squared General Contractors, Inc. is non- responsive and reject the bid; and

2. Award a construction contract for the Montebello Municipal Golf Course Renovation Project Phase 3 (CP No. 894-3) in the amount of $10,144,000 to Robert Clapper Construction Services, Inc. dba R.C. Construction Services; and

3. Authorize the Director of Public Works to review and approve change orders within a five percent (5%) contingency of the contract amount; and

4. Authorize the City Manager to execute the Contract Agreement (Attachment A) with R.C. Construction Services, on behalf of the City; and

5. Find that the requested “Changes in Work” for Phase 1 (CP No. 894-1) (Attachment B) have no significant effect on the environment and approve the changes in the aggregate amount of $819,500. The adjusted contract amount with Los Angeles Engineering, Inc. is $5,913,500; and

6. Find that the requested “Changes in Work” for Phase 2 (CP No. 894-2) (Attachment C) have no significant effect on the environment and approve the changes in the aggregate amount of $1,823,850. The adjusted contract amount with American Landscape, Inc. is $11,488,508; and

7. Approve Amendment No. 3 to Agreement No. 3937 with SPORTFIVE Golf, LLC (Attachment D) for additional architectural and engineering design services in the amount not-to-exceed $362,487; and

8. Award Task Order No. 5 via an Engagement Letter (Attachment E) under Master Retainer Agreement No. 3919 with AIM Consulting Services for additional

CITY COUNCIL AGENDA REPORT - MEETING OF AUGUST 23, 2023

Construction Management/Inspection Services for Phase 1 and 2 for a not-to- exceed-fee of $171,248; and

9. Award Task Order No. 6 via an Engagement Letter (Attachment F) under Master Retainer Agreement No. 3919 with AIM Consulting Services for Construction Management/Inspection Services for the clubhouse construction (Phase 3) for a not-to-exceed-fee of $562,011; and

10. Approve the updated Total Project Budget (Attachment G); and

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

12. 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 a portion of the design and construction of the Golf Course Renovation Project (GCR Project). A total of $15,905,624 in bond proceeds were issued. Of this amount, $15,308,124 is available towards the Golf Course Renovation Project (the remaining funds pay for the costs of issuance related to issuance of the bonds).

Staff has created a separate capital project fund to track design, engineering, architectural, project management and construction costs related to the Golf Course Renovation Project (all phases), as well as the bond proceeds which are recognized as revenue. Project funds are available through the trustee (i.e., BNY Mellon Bank) and bond proceeds have been used to reimburse the City for related design and construction costs for this project through June 30, 2023. Staff in Finance work closely with Public Works staff to update year-to-date expenses and request bond proceeds reimbursements on a regular basis.

The updated total project budget/spending plan (Attachment G) shows estimated costs for all three phases of the Golf Course Renovation Project (GCR Project). Phases 1 and 2 involved rough grading, shaping, landscaping, utilities, and related work to reconfigure the former 18-hole golf course. As Attachment G indicates, the previously approved project budget for Phase 1 and Phase 2 is $20,300,000. Details on the make-up of this total project budget are included on Attachment G. Phase 1 and 2 construction costs are funded by a combination of bond proceeds (Lease Revenue Bonds, Series 2022A) and use of General Fund reserves.

Phase 3 of the GCR Project is the construction of a clubhouse and associated “event lawns” and the reconstruction of Via San Clemente from Garfield Avenue to Scout Road. The estimated cost of Phase 3 is $12,463,211 (see Attachment G). The remaining $3,148,479 of the $15,611,690 in recommended additional funding includes additional costs to complete Phase 1 and 2. This includes $700,000 of project scope not included in the original award amount (i.e. netting pole replacement, a driveway for the irrigation pump station, and a new entry guard shack). It also includes additional unanticipated costs to complete Phase 1 and Phase 2 related to: 1) rain delays ($703,700); 2) asbestos pipe and debris abatement ($400,024); 3) additional utility fees

CITY COUNCIL AGENDA REPORT - MEETING OF AUGUST 23, 2023

($300,000); and 4) other miscellaneous expenses. The funding sources for the recommended additional project funding -- all phases -- would be a combination of Gas Tax (for related public roadway work), excess Home2Suites funds available per the Lease Revenue Bonds Series 2016 bond indentures, and General Fund reserves.

If construction of the clubhouse is approved, expenses and revenue would be recorded in a capital fund account. Subsequent City Council action would be required to amend the Fiscal Year 2023-24 budget to appropriate all necessary funds, transfers in/out, and related expenditures and revenues for all phases of the GCR project.

BACKGROUND/DISCUSSION:

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 is renovating 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 golf course campus. The project is replacing the existing 18-hole golf course with a new and modern first-class championship golf course complex 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 and a new 9-hole Par 3 golf course with lights. In addition, if approved, the project would include a clubhouse and associated “event lawns.”

The construction of the Golf Course Renovation Project is 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. Phases 1 and 2 are underway, with significant progress made on the golf course renovation. Furthermore, on March 8, 2023 the City Council directed staff to proceed with a Notice Inviting Bids for the permanent clubhouse at an estimated cost of $7,250,000.

The Notice Inviting Bids for the clubhouse was published on June 1, 2023, in accordance with the California Public Contract Code. The notice, plans and specifications were posted on Planet Bids through the City of Montebello’s Website, per the City’s municipal code, Chapter 3.20 et al.

CITY COUNCIL AGENDA REPORT - MEETING OF AUGUST 23, 2023

The bid included a base bid amount for the building and surrounding flatwork. It also included four (4) additive bid alternates as follows: 1) Landscaping and Event Lawns; 2) Non-Fixed Furniture; 3) Audio Distribution System; and 4) Finished pavement section for the parking lot. The bid documents specified that the lowest bidder would be determined by the amount of the Total Aggregate Bid (Base Bid plus all additive alternates). However, the City reserves the right to award the Base Bid and any combination of additive alternates after the lowest bid is determined.

On July 12, 2023 at 10:00 AM, two (2) bids were received and opened publicly. The Total Aggregate Bid Amount is as follows:

J-Squared General Contractors, Inc. $ 11,477,556 Robert Clapper Construction Services Inc.
dba R.C. Construction Services $ 12,034,000

The bid from J-Squared General Contractors, Inc. (“J-Squared”) was analyzed and determined to be nonresponsive. The Notice of Intent to Reject Bid issued to J-Squared is included in Attachment I and describes the deficiencies in the Bid Proposal that rendered it nonresponsive. In accordance with California Case Law, J-Squared is entitled to present materials and make a presentation to the City Council to support its bid as a valid responsive bid. The City Council is not required to hold a formal hearing regarding the J-Squared bid, but should consider all matters, pro and con, presented to them at the meeting. Based on Staff’s review of the J-Square bid and the rationale of the Notice of Intent to Reject Bid (Attachment I), it is recommended that the City Council reject the bid from J-Squared as nonresponsive.

The bid from Robert Clapper Construction Services, Inc. dba R.C. Construction Services (“RCCS”) was analyzed and determined to be a responsive and responsible bid. Award of a construction contract to RCCS in the amount of $10,144,000 is recommended. This amount includes the Base Bid ($8,814,000), Additive Alternate 2 ($360,000) and Additive Alternate 3 ($970,000). The project estimator has reviewed the bids and provided an opinion that the bids reflect current market conditions and rebidding the project is not likely to result in substantially lower bids without a reduction in the scope of the work.

The anticipated project schedule is as follows:
• Award of Contract August 23, 2023 • Start Construction September 2023 • Complete Construction June 2024

Construction of the Topgolf entertainment facility is currently scheduled for completion in May 2024. A delay in award of the Phase 3 contract, including rebidding, would result in an opening of the golf course and clubhouse after the scheduled opening of Topgolf.

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 AGENDA REPORT - MEETING OF AUGUST 23, 2023

consultants.

SportFive Additional Services

Additional architectural and engineering services are required by SportFive in the aggregate amount of $362,487 related to Phase 1 and 2 work. The additional services can be categorized as follows: 1) Construction Staking ($148,497); 2) Clubhouse Value Engineering Studies and Plan Revisions ($40,973); 3) City Requested Design Revisions ($17,113); 4) Geotechnical Services ($20,476); 5) Schedule Extension due to Rain Delays ($102,800); and 6) Miscellaneous Services ($32,628). The services are detailed in the contract amendment (Attachment D).

AIM Consulting Services Additional Services

The extended construction schedule resulting from rain delays has resulted in additional staff time for construction management and inspection services for Phase 1 and Phase 2 construction. Overtime hours have also been required for inspectors due to the contractor’s overtime work that was necessary to accelerate work in order to meet the end of the grassing season. The total additional fee to complete Phase 1 and Phase 2 is $171,248. The services are detailed in the Engagement Letter in Attachment E.

ENVIRONMENTAL:

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:

In light of the volatility of the construction market in the past few years due to inflation and other pandemic-related supply chain issues, a specialized construction estimating firm, Elkin Construction Services (ECS) was included in the design team of consultants to provide independent and detailed construction estimates for the clubhouse project.

ECS provides material and labor pricing that reflect current market conditions so that escalation in bid prices from previous project estimates can be identified and used to evaluate bids received. ECS has reviewed the bids received and given the fact that the bids are relatively close in amount and a review of current market conditions as well as bid results for other similar projects, ECS has provided an opinion that rebidding is not likely to result in substantially lower bids without a reduction in the scope of the project.

The Total Project Budget (TPB) is included in Attachment G and provides a summary of the entire project cost (i.e., all three phases) as well as previously approved Phase 1 and Phase 2 budgets.

CITY COUNCIL AGENDA REPORT - MEETING OF AUGUST 23, 2023

SUMMARY:

Upon approval of the recommended actions, staff will execute the contract agreement with R.C. Construction Services and the recommended amendments and Engagement Letters to other consultants and coordinate the completion of the Project.

ATTACHMENT(S)

1. ATTACHMENT A - Agreement No. 4128

2. ATTACHMENT B - Changes in Work Summary- Phase 1 (CP 894-1)

3. ATTACHMENT C - Changes in Work Summary - Phase 2 (CP 894-2)

4. ATTACHMENT D - Amendment No 3 to Agreement No. 3937

5. ATTACHMENT E - Letter of Engagement under Master Retainer Agreement No. 3919 - Task 5

6. ATTACHMENT F - Letter of Engagement under Master Retainer Agreement No. 3919 - Task 6

7. ATTACHMENT G - Total Project Budget

8. ATTACHMENT H - Notice of Exemption

9. ATTACHMENT I - Notice of Intent to Reject Bid

NEXT STEPS:

N/A

ATTACHMENT A

CITY OF MONTEBELLO

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

THIS STANDARD PUBLIC WORKS AGREEMENT (“AGREEMENT”) is made and entered into on August 23, 2023 (“Effective Date”) by and b etween the CITY OF MONTEBELLO, a California municipal corporation (the “CITY”) and R OBERT CLAPPER CONSTRUCTION SERVICES, INC. (dba R.C. Construction Services), a California corporation (“CONTRACTOR”). The CITY and CONTRACTOR are sometim es referred to herein individual as the “Party,” and jointly as the “Parties.”

RECITALS

WHEREAS , the CITY desires to retain a qualified profession al contractor to provide work consisting of the construction of the clubhouse and appurtenant facilities for the Montebello Municipal Golf Course Renovation Project (Phase 3) (C.P. No. 894-3) (“PROJECT”); and

WHEREAS , on August 23, 2023, the City Council accepted the bid of CONTRACTOR as the lowest responsible, responsive bid received and dir ected 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, educatio n and expertise of its principals and employees.

NOW, THEREFORE , in consideration of the promises and the mutual c ovenants 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 Ins tructions to Bidders, Bidders Proposal, Project Manual and Special Provisions, Addendums, C ONTRACTOR’s Bid for the PROJECT, Scope of Work, general specifications and all referenced specifications, details, standard drawings, and appendices, together with th is Agreement and all required bonds, and insurance certificates. All of the “Agreement D ocuments” 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 mentio ned 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. 4128

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

2. CONTRACTOR’S July 12, 2023 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 an d 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 One Hundred and Sixty (160) working days from the issuance of t he 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 an add itional 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 Ten Million One Hundred and Forty-four Thousand Dollars ($10,144,000), which is based on performing all of the work shown on Bidders Proposa l 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 ma nner and time specified in the CONTRACT DOCUMENTS, and also including those arisin g from actions of the elements, unforeseen 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 f ive 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. 4128

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 CO NTRACTOR 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 incorporat ed into the work under the Agreement during the period covered by said statement. The re maining five percent (5%) thereof shall be retained as performance security. Refer to Secti on 4.2 of this Agreement for retention of funds.

4.2. Retention of Funds

Progress payments shall be made in accordance with the provisions 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 fina l acceptance of the work by the City Council of the CITY (“City Council”), after CONTRACTOR shall have furnished the CITY with a release of all undisputed Agreement amounts, if r equired by the CITY. In the event there are any claims specifically excluded by CONTRACTOR from the operation of the release, the CITY may retain proceeds (per Public Contract Code 7107) of up to 150% of the amount in dispute. CITY’s failure to deduct or withhold sh all 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, d o not allow the substitution of securities. At the request and expense of CONTRACTOR, securities e quivalent to the amount withheld shall be deposited with the CITY, or with a state o r federally chartered bank in this state as the escrow agent, who shall then pay those moneys t o 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 wit h all of the provisions of Federal and/or State law as the same shall apply to this PR OJECT pertaining to the employment of unauthorized aliens as defined therein. Should CONT RACTOR 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 CITY for

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

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 specifie d in the Notice to Proceed to be issued in writing to CONTRACTOR by the CITY and sha ll 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 empl oyees have knowledge and reporting is possible, of the discovery of any of the following conditions:

1. The presence of any material that the CONTRACTOR be lieves 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 recogniz ed 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) adeq uate to prevent the hazardous waste or physical conditions from causing bodily injury to any person.

c. The CITY shall promptly investigate the reported co nditions. If the CITY, through the City Engineer or his/her designee, and in the exercise of its sole discretion, determines that the conditions do materially differ, or do involve haza rdous 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 CONT RACTOR as to whether the conditions materially differ or involve hazardous w aste or cause a decrease or increase in CONTRACTOR’s cost of, or time required for perfo rmance of any part of the work, CONTRACTOR shall not be excused from any schedule c ompletion date, and shall proceed with all work to be performed under the Agr eement. 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.

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

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

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 an d enforcement by the Department of Industrial Relations. No prime CONTRACTOR or SUBCON TRACTOR 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 Relati ons pursuant to Labor Code section 1725.5. CONTRACTOR will be required to post job sit e 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 p lan of shoring, bracing, sloping or other provisions to be made for worker protection i n accordance 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 i ncurred in locating, repairing damage not caused by CONTRACTOR and removing or rel ocating 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 Busin ess and Professions Code), arising from purchases of goods, services or materials pursuant to the public works Agreement or the sub-Agreement. This assignment shall be made and become effective at the time the

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

CITY renders final payment to CONTRACTOR without fu rther 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 l egal day’s work. CONTRACTOR will forfeit as a penalty to CITY the sum of $25.00 for each wor ker employed in the execution of this Agreement by CONTRACTOR or any SUB-CONTRACTOR for e ach 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 violation of the provisions of Labor Code section 1810. (Labor Code § 1813).

8.9. Payroll Records.

CONTRACTOR shall maintain the certified payroll rec ords 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, incl uding the street address, city, and county, and shall, within five working days, provid e a notice of a change of location and address.

8.10. Employment of Apprentices.

Nothing in this Agreement prevents CONTRACTOR or an y SUB-CONTRACTOR from employing properly registered apprentices in the ex ecution of the Agreement.

CONTRACTOR is responsible for compliance with Labor Code section 1777.5 for all apprenticeable occupations. This statute requires t hat CONTRACTORs and SUBCONTRACTORs must submit Agreement award informat ion 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 §1 777.5), must contribute to the fund or funds in each craft or trade or a like amount to th e California Apprenticeship Council, and that CONTRACTORs and SUB-CONTRACTORs must not discr iminate among otherwise qualified employees as apprentices solely on the ground of sex, race, religion, creed, national origin, ancestry or color. Only apprentices defined in Labor Code section 3077, who are in training under apprenticeship standards and who hav e written apprentice Agreements, may be employed on public works in apprenticeable occupations.

8.11. Records Audit

In accordance with Government 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.

SECTION 9. PREVAILING WAGES

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

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, Articl e 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 w ithout 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, recklessne ss or willful misconduct in the performance of work hereunder or its failure to com ply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the CITY. Should conflict of interest principles preclude a single legal counsel from representing both the CIT Y and CONTRACTOR, or should the CITY otherwise find CONTRACTOR’s legal counsel unac ceptable, then CONTRACTOR shall reimburse the CITY its costs of defense, incl uding without limitation reasonable legal counsel fees, expert fees and all other costs and f ees of litigation. CONTRACTOR shall promptly pay any final judgment rendered against th e 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 w rongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State o f California and will survive termination of this Agreement.

b. CONTRACTOR obligations under this section apply regardless of whether such claim, charge, damage, demand, action, proceeding, loss, s top notice, cost, expense, judgment, civil fine or penalty, or liability was caused in p art or contributed to by an Indemnitee.

However, without affecting the rights of the CITY u nder any provision of this agreement, CONTRACTOR shall not be required to indemnify and h old harmless the CITY for liability attributable to the active negligence of CITY, provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

instances where the CITY is shown to have been acti vely 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 perce ntage of liability not attributable to the active negligence of the CITY.

SECTION 11. BONDS

a. CONTRACTOR, before commencing said PROJECT, shall f urnish and file with the CITY, a Performance Bond, or bonds in the sum of on e hundred percent (100%) of the Agreement price thereof conditioned upon the faithf ul 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 of 50% of the Agreeme nt price, conditioned upon the guaranty and warranty of the work and labor and mat erials 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 attac hed hereto as Exhibit A. The CITY shall have the right to hold the policies and policy rene wals, 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 coverag e 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 th e 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. Th e 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]

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

SECTION 13. LIQUIDATED DAMAGES

In addition, pursuant to the authority of Californi a Public Contract Code Section 7102, the CITY and CONTRACTOR agree that the determinatio n 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 sums listed in Paragraph 1.08 of Section 01-00-00 (Project General Requirements) of the Project Manual and Special Provisions as liquidated damages for each working d ay 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 summ ary 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 tria l 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 fort h 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 relie f 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 C ITY by registered mail or certified mail with return receipt requested.

2. The CITY must respond within 45 days as to which cl aims 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.

5. All undisputed claims shall be paid within 60 days.

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

SECTION 15. TERMINATION.

15.1. Termination for Convenience.

The CITY may terminate this Agreement, in whole or in part, with thirty (30) days’ written notice to CONTRACTOR when it is in the CITY’s best interest. CONTRACTOR shall be paid its costs, including Agreement close-out costs, and profit on work performed up to the time of termination. CONTRACTOR shall promptly submit it s termination claim to the CITY to be paid the CONTRACTOR. If CONTRACTOR has any property in its possession belonging to the CITY, CONTRACTOR will account for the same, and dispose of it in the manner the CITY directs. CONTRACTOR may terminate this Agreement, i n whole, with ninety (90) days’ written notice to the CITY.

15.2 Termination for Default.

If at any time CONTRACTOR is determined to be in ma terial breach of the Agreement, a Notice of Potential Breach of Agreement shall be pr epared by the CITY, and will be served upon CONTRACTOR and its sureties. If CONTRACTOR con tinues to neglect or refuses to comply with the Agreement or with the Notice of Pot ential Breach of Agreement to the satisfaction of the CITY within the time specified in such Notice, the CITY shall have the authority to terminate the Agreement for this Project.

15.3 Waiver of Remedies for any Breach.

In the event that the CITY elects to waive its reme dies for any breach by CONTRACTOR of any covenant, term or condition of this Agreement, such waiver by the CITY shall not limit the CITY’s remedies for any succeeding breach of th at or of any other term, covenant, or condition of the Agreement.

SECTION 16. CONTRACTOR'S FAILURE TO PROCURE COMPLETION OF

PROJECT

In the event CONTRACTOR fails to furnish tools, equ ipment, or labor in the necessary quantity or quality, or fails to prosecute the work or any part thereof contemplated by this Agreement in a diligent and workmanlike manner, and if CONTRACTOR for a period of three (3) calendar days after receipt of written demand from the CITY or its designated representative to do so, fails to furnish tools, eq uipment, or labor in the necessary quantity or quality, and to prosecute its work and all parts thereof in a diligent and workmanlike manner, or after commencing to do so within said th ree (3) calendar days, fails to continue to do so; then the CITY may exclude CONTRACTOR from the premises, or any portion thereof, and take possession of said premises or an y portion thereof, together with all material and equipment thereon, and may complete th e work contemplated by this Agreement or any portion of said work, either by fu rnishing the tools, equipment, labor or material necessary, or by letting the unfinished portion of said work, or the portion taken over by the CITY to another contractor or by a combinati on of such methods. In any event, the

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

procuring of the completion of said work, or the portion thereof taken over by the CITY, shall be a charge against CONTRACTOR, and may be deducted from any money due or becoming due to CONTRACTOR from the CITY, or CONTRACTOR shal l pay the CITY the amount of said charge, or the portion thereof unsatisfied. Th e sureties provided for under this Agreement shall become liable for payment should CONTRACTOR fail to pay in full any said cost incurred by the CITY.

SECTION 17. COMPLIANCE WITH APPLICABLE LAWS

CONTRACTOR hereby promises and agrees to comply wit h all provisions of all applicable state and federal laws in connection with the perfo rmance of its obligations under this Agreement.

SECTION 18. NOTICE OF COMPLETION

Upon completion of the PROJECT and acceptance of sa me by the City Council, the CITY shall have cause to be recorded a Notice of Co mpletion with the office of the Los Angeles County Recorder; and, after thirty-five (35 ) days from the date said Notice of Completion is recorded, the Director of Finance of CITY shall release the funds retained pursuant to SEC. 4 hereof; provided there have been no mechanics’ liens or stop notices filed against said work which have not been paid, withdra wn or eliminated as liens against said work.

SECTION 19. AUTHORITY

Any person executing this Agreement on behalf of CO NTRACTOR warrants and represents that he or she has the authority to exec ute this Agreement on behalf of CONTRACTOR and has the authority to bind CONTRACTOR to the performance of its obligations hereunder.

SECTION 20. ENTIRE AGREEMENT

This Agreement, including the Agreement Documents a nd any other documents incorporated herein by specific reference, represen ts the entire and integrated Agreement between the CITY and the CONTRACTOR. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties that expressly refers to this Agreement.

SECTION 21. ATTORNEY’S FEES AND COSTS

If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief whic h may be granted, whether legal or equitable, shall be entitled to reasonable attorney 's fees. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

entitled to all other reasonable costs for investig ating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation.

All such fees shall be deemed to have accrued on co mmencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

SECTION 22. INDEPENDENT CONTRACTOR

CONTRACTOR is and shall at all times remain as to t he CITY, a wholly independent CONTRACTOR. Neither the CITY, nor any of its office rs, employees or agents shall have control over the conduct of CONTRACTOR or any of CO NTRACTOR’S officers, employees or agents, except as herein set forth. CONTRACTOR shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the CITY, nor shall the CITY officers, employees or agents be deemed the officers, employees, or agents of CONTRACTOR as a result of this Agreement.

SECTION 23. 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 after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requ ests, or approvals hereunder shall be given to the following addresses or such other addr esses as the Parties may designate by written notice:

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

To the CITY: City of Montebello
Attn: Arlene Salazar, Acting City Manager
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200
Email:
[email protected]

With copy to: City of Montebello – Department of Public Works Attn: James Enriquez, P.E., Director/City Engineer
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1462
Email:
[email protected]

To CONTRACTOR:

Attn:

An electronic communication (“Electronic Notice”) s hall 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 par ty 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.

SECTION 24. PROHIBITION AGAINST ASSIGNMENT

The experience, knowledge, capability and reputatio n of CONTRACTOR, its principals and employees were a substantial inducement for the CITY to enter into this Agreement. Neither this Agreement nor any interest herein may be trans ferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operat ion of law, whether for the benefit of creditors or otherwise, without the prior written a pproval of the CITY. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of CONTRACTOR, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release CONTRACTOR or any surety of CONTRACTOR of any liability hereunder without the express consent of the CITY.

SECTION 25. CUMULATIVE REMEDIES

The provisions of this Agreement are cumulative and in addition to and not in limitation of any rights or remedies available to the CITY.

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

SECTION 26. COUNTERPARTS

This Agreement may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.

[SIGNATURE PAGE TO FOLLOW]

STANDARD PUBLIC WORKS AGREEMENT NO. 4128

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed on the date next to their respective officers duly authorized signatures in that behalf.

CITY OF MONTEBELLO
(“CITY”)

By:

(“CONTRACTOR”)

By:

Arlene Salazar, Acting City Manager

Date: Date:

ATTEST:

Christopher Jimenez, City Clerk

APPROVED AS TO FORM

Arnold M. Alvarez-Glasman, City Attorney

EXHIBITS:
• Exhibit A – Insurance Requirements
• Exhibit B – Performance Bond
• Exhibit C – Labor and Materials Payment Bond
• Exhibit D – Warranty Bond

EXHIBIT “A”

INSURANCE REQUIREMENTS

On or before beginning any of the work called for b y any term of this Agreement, CONTRACTOR, at its own cost and expense, shall carr y, maintain for the duration of this Agreement, and provide proof thereof that is acceptable to the CITY of its procurement of the insurance specified below from insurers and under f orms of insurance satisfactory in all respects to the CITY. Such insurance shall not be i n derogation of CONTRACTOR’s obligations to provide indemnity under this Agreement.

1. Comprehensive General Liability and Automobile Liability Insurance Coverage.

CONTRACTOR shall carry and maintain Comprehensive G eneral Liability and Automobile Liability Insurance which provides the following:

Minimum coverage: Bodily injury limits of $2,000,000 for each person and $2,000,000 for each occurrence; property damage limits of $2,000,0 00 for each occurrence, $5,000,000 aggregate.

Products/Completed Operations Hazard Insurance in a n amount of not less than FIVE MILLION DOLLARS ($5,000,000);

A combined single limit policy with aggregate limit s in an amount of not less than Five MILLION DOLLARS ($5,000,000) shall be considered eq uivalent to the said required minimum limits set forth herein above.

If a Commercial General Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit s hall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall incl ude but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from ac tivities contemplated under this Agreement, including the use of owned and non-owned real property and automobiles.

Insurance coverage shall not be subject to any type of pollution exclusion or owned property exclusions.

2. Automobile Liability.

CONTRACTOR shall carry and maintain Automobile Liability Insurance which provides a minimum coverage of at least $5,000,000 per acciden t for bodily injury and property damage.

3. Worker's Compensation.

CONTRACTOR shall carry and maintain worker’s compensation in the amount of 1

$1,000,000 as required by the California Labor Code for all persons employed directly or indirectly in connection with this Agreement by CON TRACTOR. To the extent that CONTRACTOR utilizes any SUB-CONTRACTOR for the perf ormance of any part of the work under this Agreement, CONTRACTOR shall require and assure that such SUB- CONTRACTOR also carry and maintain worker’s compens ation as required by the California Labor Code for all persons directly or i ndirectly in connection with this Agreement.

4. Additional Insureds.

The CITY, its officers, agents and employees must b e named as additional insureds or as additional loss payees in all insurance policies required by this Agreement. An endorsement to this effect shall be delivered to th e CITY prior to the commencement of any work. Satisfaction of any deductible requiremen t shall be the responsibility of CONTRACTOR. Such insurance shall be primary and non contributory with any other insurance maintained by the CITY.

5. Notice of Cancellation.

CONTRACTOR agrees to oblige its insurance agent or broker and insures to provide CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.

6. Severability Clause.

Each of the policies of insurance shall contain a clause substantially as follows:

The insurance afforded by this policy applies separ ately to each insured against whom a claim or suit is made or suit is bro ught, except with respect to the limit of the insurer's liability.

7. Qualifications of Insurer.

All policies of insurance shall be issued by an insurance company acceptable to the CITY and authorized to issue said policy in the State of California.

8. Approval of Insurer.

The insurance carrier providing the insurance shall be chosen by CONTRACTOR subject to approval by the CITY, provided that such approval shall not be unreasonably withheld.

9. Payment of Premiums.

All premiums on insurance policies shall be paid by CONTRACTOR making payment, when due, directly to the insurance carrier, or in a manner agreed to by the CITY.

10. Evidence of Insurance and Claims.

CONTRACTOR shall provide certificates of insurance to the CITY as evidence of insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. The CITY’s Risk Manager must approve insurance certificates and endorsements prior to commencement of performan ce. Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement.

The CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.

(Use of City Bond Form is Required)

EXHIBIT “B”

PERFORMANCE BOND

PUBLIC WORK
(CALIFORNIA)

KNOW ALL MEN BY THESE PRESENTS:

WHEREAS, the Principal and the City of Montebello ( “Obligee”) have entered into a written Agreement, hereinafter called the Agreement, a copy of which is or may be attached hereto, dated the day of , referred to and made a part hereof for and
all appurtenant work in accordance with Project No. , which agreement requires the Principal to provide Obligee with this bond.

NOW THEREFORE, we, , as Principal, and
, a corporation organized under the laws of
, and duly authorized to transact business in the S tate of California, as Surety, are held firmly bound unto the City of , as Obligee, in the sum of
Dollars ($ ), lawful money of the United States o f America, for the payment whereof well and truly to be made the Princ ipal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.

The address at which the Surety may be served with notices, papers and other documents is:

The address at which the Principal may be served with notices, papers and other documents is:

The condition of the foregoing obligation is such t hat if the Principal, his or its heirs, executors, administrators, successors or assigns, and each of his or its SUB-CONTRACTORs shall well and truly perform and fulfill all the undertakings, cov enants, terms, conditions, and agreements of said Agreement, and during the life of any guaranty required under the Agreement, and shall also well and truly perform and fulfill all the undertakings, covenants, terms, conditions, and agreements of any and all duly authorized modifications of said Agreement that may hereafter be made, then this obligation shall be void; otherwise it shall be and remain in full force and effect.

As part of the obligation secured hereby and in add ition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the obligee in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

1

The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to

the terms of the agreement or to the work to be per formed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications.

This document is signed by the respective parties on the dates next to their names.

Principal
By: Date:

Title:

Surety
By:

Date:

Title:

I declare under penalty of perjury under the laws o f the State of California that the contents of the above Faithful Performance Bond are true and correct, and that I have been duly authorized to sign this Faithful Performance Bond on behalf of Surety. This Declaration is signed on , in the City of , State of California.

--OR--

State of California )
)
County of )

On before me, _(here insert name and title of th e
officer), personally appeared
_ _ __,
who proved to me on the basis of satisfactory evide nce to be the person(s) whose name(s) is/are subscr ibed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws o f the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document

Signature _ (Seal)

-- AND –

(Proof of signature authorization or power of attorney must be attached) APPROVED AS TO FORM:

City Attorney

(Use of City Bond Form is Required)

EXHIBIT “C”
Labor and Materials Payment Bond

PUBLIC WORK (CALIFORNIA)

KNOW ALL MEN BY THESE PRESENTS:

WHEREAS, , as Principal, has entered into
an Agreement dated , , (the "Agreement") with t he City of (Obligee) referred to and made a part hereof to perform the following work of public improvement, to wit:

and all appurtenant work in accordance with the plans and specifications for Project No. , which requires Principal to file this bond t o secure claims made under Civil Code Sections 9550-9554..

NOW THEREFORE, we, , as Principal, and
, a corporation organized under the laws
of and duly authorized to transact business in the State of California, as Surety, are held firmly bound unto the City of , as Obligee, and all SUB-CONTRACTORs, laborers,
material persons and other persons employed in the performance of the referenced agreement, in the sum of Dollars
($ ), lawful money of the United States of America , which is 100% of the amount of the Agreement, for the payment whereof well and truly to be made the Principal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.

The address at which the Surety may be served with notices, papers and other documents is:

The address at which the Principal may be served with notices, papers and other documents is:

If the above bounden Principal, his or its heirs, e xecutors, administrators, successors, assigns, or any of his or its SUB-CONTRACTORs, fails to pay for any materials, provisions, provender, or other supplies, or teams, implements or machiner y, used in, upon, for or about the performance of the work agreed to be done, or for any work or labor to persons named in Section 9100 of the Civil Code, or for amounts due under the Unemployment Insurance Code with respect to such work or labor performed under the Agreement , or for any amounts required to be

1

deducted, withheld and paid over to the Employment Development Department from the wages of employees of the CONTRACTOR and SUB-CONTRACTORs pursuant to Section 13020 of the Unemployment Insurance Code, then the Surety on this bond will pay the same, in an amount not exceeding the sum specified in this bond, and also, in case suit is brought upon this bond, a reasonable attorney's fee, which shall be awarded by the court to the prevailing party in said suit, said attorney's fee to be taxed as costs in said su it and to be included in the judgment herein rendered.

As part of the obligation secured hereby, the Suret y shall not be exonerated or released from the obligation of the bond by any change, alteration, or modification in or of any Agreement, plans, specifications, or agreement pertaining or relating to any scheme or work of improvement or pertaining or relating to the furnishing of labo r, materials, or equipment therefor, nor by any change or modification of any terms of payment or e xtension of the time for any payment pertaining or relating to any scheme of work of improvement, nor by any rescission or attempted rescission of the Agreement, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such Agreement or agreement, or under the bond, nor, where the bond is given for the benefit of claimants, by any fraud practiced by any person other than the claimant seeking to recover on the bond.

This bond shall inure to the benefit of any and all persons, companies and corporations named in Civil Code Section 9100 so as to give them a right of action in a suit on this bond.

This bond is executed for the purpose of complying with the laws of the State of California designated as Title 3, Chapter 5, Payment Bond, com mencing with Section 9550 of the Civil Code of the State of California and all amendments thereto, and shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code of the State of California.

This document is signed by the respective parties on the dates next to their names.

Principal
By: Date:

Title:

Surety

By: Date:

Title:

I declare under penalty of perjury under the laws o f the State of California that the contents of the above Labor and Materials Payment Bond are true and correct, and that I have been duly authorized to sign this Labor and Materials Payment Bond on behalf of Surety. This Declaration is signed on , in the City of , State of Californ ia.

2

--OR--

State of California )
)
County of )

On before me, _(here insert name and title
of the officer), personally appeared
_ _ __,
who proved to me on the basis of satisfactory evide nce to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledge d to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws o f the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _ (Seal)

-- AND –

(Proof of signature authorization or power of attorney must be attached)

APPROVED AS TO FORM:

City Attorney

3 A notary public or other officer completing this ce rtificate verifies only the identity of the individ ual who signed the document to which this certificate is at tached, and not the truthfulness, accuracy, or vali dity of that document

(Use of City Bond Form is Required)

EXHIBIT “D”
Warranty Bond

PUBLIC WORKS (CALIFORNIA)

WHEREAS, the City Council of the City of , State of
California, and , (hereinafter
designated as "Principal") have entered into a written Agreement (the "Agreement") dated whereby Principal agrees to install and complete ce rtain designated public improvements, which Agreement is hereby referred to and made a part hereof; and

WHEREAS, said Principal is required under the terms of said Agreement to furnish a bond for the guarantee and warranty of the work for a period of one (1) year following the completion and acceptance thereof against any defec tive work or labor done or defective materials furnished.

NOW, THEREFORE, we, the Principal and
, a corporation organized under the laws of
, and duly authorized to transact business in the State of California, as Surety, are held and firmly bound unto the City of , (hereinafter called "City"), in the penal sum of

_Dollars, ($ ) lawful money of the United States, which is 50% of the amount of the Agreement, for the payment of which s um well and truly to be made, we bind ourselves, our heirs, successors, executors and adm inistrators, jointly and severally, firmly by these presents.

The address at which the Surety may be served with notices, papers and other documents is:

The address at which the Principal may be served with notices, papers and other documents is:

The condition of this obligation is such that if the above bounded principal, his or its heirs, executors, administrators, successors or assigns, s hall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the said Agreement and any alteration thereof made as therein provided, on his or their part, to be kept and performed at the time and in the manner therein specified, an d in all respects according to their true intent and meaning, and shall indemnify and save harmless the CITY, its officers, agents and employees, as therein stipulated, then this obligat ion shall become null and void; otherwise it shall be and remain in full force and effect.

1

As a part of the obligation secured hereby and in a ddition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney’s fees, incurred by the CITY in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.

The surety hereby stipulates and agrees that no cha nge, extension of time, alteration or addition to the terms of the Agreement or to the wo rk to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations on this bond, and it does hereby waive notice of any such change, extens ion of time, alteration or addition to the terms of the Agreement or to the work or to the specifications.

This document is signed by the respective parties on the dates next to their names.

Principal
By: Date:

Title:

Surety

By:

Date:

Title:

I declare under penalty of perjury under the laws o f the State of California that the contents of the above Warranty Bond are true and correct, and that I have been duly authorized to sign this Warranty Bond on behalf of Surety. This Declaration is signed on , in the City of , State of California.

--OR--

State of California )
)
County of )

On before me, _(here insert name and title
of the officer), personally app eared _ _ _ _ _ _, who
proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me tha t he/she/they executed the same in his/her/their

2 A notary public or other officer completing this ce rtificate verifies only the identity of the individ ual who signed the document to which this certificate is at tached, and not the truthfulness, accuracy, or vali dity of that document

authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws o f the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature _ (Seal)

-- AND –

(Proof of signature authorization or power of attorney must be attached)

APPROVED AS TO FORM:

City Attorney

I declare under penalty of perjury under the laws of the State of California that the contents of the above Labor and Materials Payment Bond are true and correct, and that I have been duly authorized to sign this Labor and Materials Payment Bond on behalf of Surety. This Declaration is signed on , in the City of , State of California.

--OR--

State of California )
)
County of )

3 A notary public or other officer completing this ce rtificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document

On before me, (here insert name and title of the
officer), personally appeared ,
who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/sh e/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature( s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.

I certify under PENALTY OF PERJURY under the laws o f the State of California that the foregoing paragraph is true and correct.

WITNESS my hand and official seal.

Signature (Seal)

-- AND –

(Proof of signature authorization or power of attorney must be attached)

APPROVED AS TO FORM:

City Attorney

4

CHANGES IN WORK SUMMARY
August 23, 2023

MONTEBELLO MUNICIPAL GOLF COURSE RENOVATION PROJECT
(PHASE 1)
CIVIL CONTRACTOR – ROUGH SITE WORK, UTILITIES & PAVEMENT

CP NO. 894-1

Project Description:

Golf Course Civil Improvements including demolition , clearing/grubbing, rough grading, underground utility services (sewer, water, storm drain backbone system, electrical, gas, communications), street and parking lot concrete fl atwork and pavements, street and parking lot lighting systems, temporary erosion control and BMPs/SWPPP.

Proposed Changes in Work:
(1) Cart Path Removal $ 0
(2) Concrete Removal at Lake $ 0
(3) Storm Drain Mainline Revisions $ 70,700
(4) Rough Grading Revisions $ 55,000
(5) Sewer Revisions $ (26,000)
(6 ) Cart Path Removals (T&M) $ 15,200
(7 ) Bulkhead Inlets (T&M) $ 1,400
(8 ) Remove Unanticipated AC/PCC (T&M) $ 3,400 (9 ) Dewatering Storm Water from Lake $ 3,800 (10) Storm Damage Cleanup $ 27,600
(11) Storm Drain Revisions $ 16,700
(12) Dewatering Storm Water from Lake and Storm Drain $ 33,500 (13) Remove & Bulkhead 36” Storm Drain at Lake $ 1,800 (14) Install Sleeves Under AC at Clubhouse Parking Lot $ 28,400 (15) Storm Drain Lateral A3 Revision $ 26 ,700
(16) Dewatering Storm Water from Lake $ 59 ,500
(17) Electrical Switchgear Installation $ 23 ,500
(18) Clubhouse Conduit Install $ 25,600
(19) Asbestos Pipe Removal/Abatement $ 21 ,900
(20) Additional Concrete at Trash Enclosure $ 8,500 (21) Fine Grading & Scarifying Lake $ 41 ,400
(22) Short Course Hole #6 Imported Fill $ 41 ,400
(23) Additional Storm Drain Behind Clubhouse $ 11 ,500 (24) Via San Clemente Unanticipated Underground Utilities $ 900 (25) Gas Service Joint Trench $ 63 ,500

ATTACHMENT B

(26 ) Additional Drainage at Vacant Parcel $ 11,500 (27) Via San Clemente Guard Shack Improvements $ 134 ,000 (28) Extension of Street Light Underground Conduit to Via San Clemente
$ 5,8 00

(29) Guard Shack Electrical Service Modification $ 31,600 (30) Install 2 Gate Valves at Reclaimed Water Tie -in $ 15,200 (31) SW Concrete Credit North of Access Road $ (3,300) (32) Install Sewer Line Behind Clubhouse $ 17,700
(33) Install Valve Boxes and Conduit at Clubhouse $ 2,600 (34) Scarify Access Road, CH and Auxiliary Parking Lot $ 48,500

Total Changes in Work $ 819,500

Description of Changes:

(1) Change Order was canceled.
(2) Change Order was canceled.
(3) The storm drain design was revised after bidding due to changes to the site design and relative to the connection to a Los Angeles County Flood Control District storm drain.
(4) The rough grading design was revised after bidding to ensure a balance of cut and fill volumes on site and eliminate the need and expense related to importing/exporting soil to an off-site location.
(5) The sewer design was revised after bidding resulting from comments received from the Los Angeles County Sanitation Districts. The revisions resulted in a net credit.
(6) The Phase 1 contractor was requested to remove existing cart path concrete in select locations in order to accelerate the construction schedule. These removals were originally planned for the Phase 2 contractor that was bid later than Phase 1. Waiting for the Phase 2 contractor to mobilize and remove the cart path would have delayed the Phase 1 contractor’s work. (7) The contractor had to construct bulkheads to seal existing abandoned pipes that were not shown on the plans.
(8) The contractor encountered unanticipated asphalt and concrete debris during grading that was not shown on the plans that required removal and disposal. (9) Dewatering of storm water runoff from excessive rain events that accumulated in the lake excavation.
(10) Clean up of erosion and mud/debris accumulation caused by excessive rain events.
(11) The storm drain design was revised after bidding resulting from comments from

the Los Angeles County Flood Control District.
(12) Dewatering of storm water runoff from excessive rain events that accumulated in the lake excavation.
(13) Interfering portions of an existing 36-inch diameter concrete storm drain was removed and a bulkhead was constructed to seal the abandoned pipe. (14) Due to phasing of the construction, underground sleeves were installed to facilitate the construction and future repairs of the irrigation and lighting system in the clubhouse parking lot without delaying the construction of the asphalt pavement.
(15) A debris field was encountered during the excavation for the storm drain as well as perched groundwater. The design was modified and aggregate backfill was added to address unsuitable subgrade conditions related to oversaturated soil caused by the perched groundwater.
(16) Removal of mud, debris and storm water from multiple storm events throughout the unusually wet rain season.
(17) Installation of the electrical switchgear for the irrigation pump station was not included in the scope of work shown in the bid documents. (18) The design of the underground conduits for utilities servicing the future clubhouse were revised relative to the bid documents resulting from comments from utility providers received during final approvals by the providers. (19) The contractor encountered unanticipated abandoned asbestos pipe during excavations. The pipe required abatement, removal and disposal. (20) A concrete pad was added in front of the trash enclosure for the future clubhouse in order to prevent long term pavement maintenance issues related to damage from trash trucks.
(21) The lake required additional grading as a result of the accumulation of mud from multiple excessive rain events.
(22) Imported fill soil was required due to a revised grading design in a portion of the short golf course. The design revisions were necessary to eliminate excavation in an area contaminated with asbestos debris. The asbestos abatement consultant recommended capping the area with soil and eliminating excavations in order to avoid costly abatement and removal of the asbestos. (23) Additional storm drain pipes and inlets were added in the vicinity of the future clubhouse to ensure proper drainage of the areas surrounding the clubhouse. (24) Unmarked utilities and pipes were encountered during excavations on Via San Clemente.
(25) During final design by So Cal Gas Company of the new service for the project, they determined that the existing main in Via Campo did not have adequate pressure to service the project. The gas service design was revised to connect to a main in Garfield Ave, requiring additional trenching within the new access

road to the clubhouse.
(26) The vacant land within the golf course property that will remain adjacent to the eastern boundary of the Topgolf lease area was used as a soil borrow site to complete the final stages of the grading for the golf course. This created a sump condition and the storm drain was extended to provide drainage for this sump. This will ensure that the area does not create a ponding nuisance during rain events until the area is redeveloped.
(27) A new guard shack was purchased for the Quiet Cannon and hotels complex.

The new guard shack was relocated further south so that it does not impede traffic flow to the new clubhouse and Topgolf. The new site required street, sidewalk, ADA ramps and underground utilities.
(28) The underground conduit for the street light system for the new access road was extended into Via San Clemente to service a future replacement of the street lights on Via San Clemente with a system matching the same street light design and serviced by an underground electrical system to eliminate unsightly overhead wires.
(29) The final design by SCE for the electrical service resulted in additional work relative to the preliminary plans included in the bid documents. (30) Central Basin required the contractor to install 1 - 12” gate valve and 1 - 8” gate valve for the Reclaimed Water Line connection at Garfield Ave. (31) A credit was receive for not pouring concrete sidewalk on the north side of the access road, adjacent to the Top Golf McCarthy project, due to the installation of the detention basin north of the access road. Approximate 200’ LF will be blocked out.
(32) Contractor was required to install extra sewer pipe and appurtenances past the proposed degreasers at the Clubhouse per a new design due to the schedule of the Phase 3 construction.
(33) Contractor was required to install header boards, valves and conduit adjacent to the future location of EV chargers at the Clubhouse. (34) Due to the project schedule and availability of the gas line, the contractor had schedule to commence the base and pave operation by August 1 st . The gas company will finalize their scope by September 1 st , therefore, the contractor will have to mobilize again to re-scarify and fine grade the access road, club house and auxiliary parking lot prior to the construction of the final asphalt pavement.

Revised Contract Amount :

Original contract amount $ 5,094,000
Adjustment for Final Quantities $ -0
Actual contract work completed $ 5,094,000

Changes in work previously approved (Contingency)
Changes in work to be authorized
$ 254,700
$ 564,800

Revised contract amount $ 5,913,500
Percent total change to original contract amount 16 .1 %

CHANGES IN WORK SUMMARY
August 23, 2023

MONTEBELLO MUNICIPAL GOLF COURSE RENOVATION PROJECT
(PHASE 2)
GOLF COURSE CONTRACTOR – GOLF COURSE SHAPING/FEATURES,

IRRIGATION & LANDSCAPING

CP NO. 894-2

Project Description:

Golf Course Improvements including demolition, clea ring/grubbing, fine grading, golf course shaping, construction of tee areas, sand bun kers, greens and cart paths, construction of irrigation system, construction of lakes and appurtenances, construction of golf course lighting system, fencing, and landsc aping (includes golf course turf/landscaping), grassing, and golf course turf establishment.

Changes in Work:
(1) Landscape Design Revisions $ 98,573
(2) Asbestos Pipe Cleanup Plan $ 3,019
(3) Rain Delays $ 67,584
(4) Short Course Sod (Due to Rain Delays) $ 124,068 (5) Communication Conduit from Quiet Cannon to
Clubhouse
$ 8,220
(6 ) Netting Poles $ 224,508
(7 ) Hole #2 Drainage Replacement $ 0 (8 ) Additional Cart Path Replacement $ 44,561 (9 ) Short Course Lighting Revision $ (21,681)
(10) Overtime Allowance (Schedule Acceleration due to Rain Delays)
$ 1 75 ,000
(11) Musco Speaker Mounting (Option 1) $ 0 (12) Musco Speaker Mounting (Option 2) $ 9,450
(13) Golf Course Lighting Credit $ (9,240)
(14) Soil Import for Hillside and Upper Event Lawn $ 183,405 (15) Pump House Driveway $ 78,500
(16) SWPPP Management $ 7,500
(17) Irrigation Design Revisions $ 255,000
(18) Joint Utility Trench Detectable Tape $ 8,469 (19) Underground Pull Boxes $ 107,686
(20) Electrical Switch Gear Relocation $ 11,202

ATTACHMENT C

(2 1) Landscape Repairs for Netting Pole Installation $ 65,000 (22) Upper Event Lawn Construction $ 300,000

Total Changes in Work $ 1,740,824

Description of Changes:

(1) The landscape and irrigation design were revised to match the existing landscape layout and palette of the Home 2 Suites after the award of the construction contract. Revisions resulted in additional landscaping and irrigation costs.
(2) Cost for an asbestos abatement consultant to prepare a P5 Cleanup Plan for the abatement of abandoned asbestos pipe. The plan is required by the AQMD and was prepared as a precaution in the event that asbestos was encountered during construction, as it was on other portions of the property by other contractors.
(3) Costs incurred by the contractor as a result of delays due to the excessive rain experienced during the unusually wet rain season. The contractor was delayed by the rain and was unable to resume work until the soil was adequately dry after each series of rain events.
(4) Square footage of grassing area was converted to sod from sprigging at the contract unit price difference. This was required because the seasonal deadline for sprigging grass is August 15. The delay in the project attributable to the excess rain experienced this winter caused a schedule delay in the work required to prepare for grassing. The area anticipated to not be ready for sprigging by August 15 was converted to sod since sod can be installed beyond the August 15 deadline.
(5) A conduit was added from the Quiet Cannon to the future clubhouse. The conduit will provide communication cables to connect the Quiet Cannon systems to the new clubhouse.
(6) The replacement of netting poles was an additive alternate bid that was not awarded as part of the original contract amount. Inspection of the existing poles during construction determined that many of the wooden poles are rotted from age and need replacement. The change order includes additional poles and also includes removal of poles from the existing driving range for use in the new golf course.
(7) Change Order was canceled.
(8) City staff identified additional concrete cart path that was damaged and needs replacement. This is cart path in addition to the cart path replacement/construction shown on the plans.
(9) Revisions were made to the layout of the golf course lighting for the short

course after the course grading and shaping was completed. This resulted in a credit for work deleted.
(10) The contractor was authorized to add additional staff and work hours in order to accelerate work necessary to meet the August 15 seasonal deadline for sprigging grass. This acceleration was necessary to compensate for time lost due to excessive rain experienced during the winter and spring. Grass areas that cannot be sprigged by the deadline would either need to be sod at a substantially higher cost, or the grassing in these areas would be sprigged the following season in April 2024 and would delay the golf course opening by one year.
(11) Change Order was canceled.
(12) Additional cost for speaker mounts that were added to the lighting for the short golf course.
(13) The revised lighting plan changed the electrical scope of work, overall reducing the amount of material and labor for the deletion of electrical work. The revised plan was issued to accommodate and reflect approved sport lighting poles for the Montebello Golf Course project.
(14) Imported topsoil was required to cap an asbestos debris field that was abated on the hillside near the Quiet Cannon. Additionally, imported soil was required to complete the grading of the upper event lawn area adjacent to the Quiet Cannon.
(15) SCE required a paved driveway to provide access to the electrical service transformer for the irrigation pump station. The driveway will also provide maintenance access for city staff/contractors maintaining the pump station. The driveway was not included in the original design.
(16) The Phase 1 contractor was responsible for the SWPPP implementation and monitoring/reporting for the overall project site. Since the Phase 1 work will be completed in advance of Phase 2 (which experienced more significant rain delays), the Phase 2 contractor will take over SWPPP responsibilities for the remainder of the golf course construction.
(17) The layout of irrigation heads shown on the plans is preliminary and verified in the field during construction by the landscape architect to accommodate actual field conditions. This change order captures the additional irrigation infrastructure that was required to increase the total number of irrigation heads over the entire golf course.
(18) Pricing is to furnish and install the requested detectable direct burial electrical caution tape 6”.
(19) Pricing is for furnishing and installing the required underground electrical pull boxes for the Montebello Golf Course. Underground pull boxes are not shown on the contract documents and will be needed to meet code compliant requirements.
(20) Pricing is for the amended locations of the specified electrical equipment. Field

changes at the pump house, electrical switch gear and MPZ’s have increased conduit lengths in some areas and shortened in others. Provide additional conduit, wire and underground for pump house electrical feed and MPZB.

Crediting conduit, wire and underground for MPZC.
(21) Due to the scheduling of the netting pole replacement, the poles will be replaced after the grassing and landscape mulch has been applied. This is an allowance for the replacement of damaged grass and landscaping caused by the pole installation operation.
(22) Construction of the upper event lawn adjacent to the Quiet Cannon. Includes electrical installation, installation of City-purchased artificial turf, irrigation and landscaping.

Revised Contract Amount :

Original contract amount $ 9,664,658
Adjustment for Final Quantities $ 83,026
Actual contract work completed $ 9,747,684
Changes in work previously approved (Contingency)
Changes in work to be authorized
$ 483,233
$ 1,2 57,591

Revised contract amount $ 11,488,508
Percent total change to original contract amount 18 .9 %

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AMENDMENT NO. 3
TO PROFESSIONAL SERVICES AGREEMENT NO. 3937

BETWEEN THE CITY OF MONTEBELLO

AND SPORTFIVE GOLF, LLC

This Amendment (“Amendment No. 3”) to that certain Services Agreement No. 3937 for architectural & engineering services f or the Montebello Municipal Golf Course Renovation Project dated November 16, 2021, (“Agreement”), is made as of July 27, 2022 (“Effective Date”), by and between th e City of Montebello (“City”), and SPORTFIVE Golf, LLC (“CONTRACTOR”). City and CONTR ACTOR are sometimes hereinafter individually referred to as a "Party" and jointly as the "Parties".

RECITALS

WHEREAS , City and the CONTRACTOR are parties to the Agreem ent, dated November 16, 2021, under which CONTRACTOR was award ed a professional services agreement by the City for architectural & engineering services; and

WHEREAS , City and the CONTRACTOR are parties to Amendment No. 1 to the Agreement, dated May 11, 2022, for additional architectural & engineering services; and

WHEREAS , City and the CONTRACTOR are parties to Amendment No. 2 to the Agreement, dated June 27, 2022, for additional arch itectural & engineering services; and

WHEREAS , City and CONTRACTOR now desire to amend the Agree ment to expand the scope of work and increase the related c ompensation under the Agreement; and

NOW, THEREFORE , the parties to this Amendment No. 3 agree to amen d the Agreement as follows:

SECTION 1. AMENDMENT TO SERVICES/COMPENSATION. The scope of work to the Agreement is expanded to include the fo llowing services attached hereto as Exhibit “A” and incorporated herein by this referen ce. The proposals included in Exhibit “A” include the following:

1. Geotech Services for $14,800 dated January 6, 2022.

2. CSI Specification Preparation for $10,000 dated May 25, 2002.

3. Reimbursable Expenses for Value Engineering Anal ysis for $9,000 dated June 20, 2022.

ATTAC HMENT D

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4. Geotech Services for Clubhouse Permitting for $2,625 dated September 6, 2022

5. Landscape Design Revisions for $7,928 dated October 2, 2022.

6. Construction Staking for Phase 1 for $70,875 dated November 16, 2022.

7. Additional Construction Staking for $25,122 dated December 20, 2022.

8. Temporary Clubhouse Option Coordination for $8,925 dated December 22, 2022.

9. Geotech Services for Field Conditions for $3,051 dated February 28, 2023.

10. Additional Utility Coordination for Street Ligh ts for $8,138 dated May 28, 2023.

11. Revisions to Clubhouse Architect Plans for $23,048 dated April 18, 2023.

12. Pump Station Driveway Design for $11,550 dated May 24, 2023.

13. Land Scape Design Revisions for $4,673 dated May 24, 2023.

14. Golf Course Lighting Design Revisions for $2,940 dated May 24, 2023.

15. Additional Construction Staking Services for $52,500 dated June 8, 2023.

16. Additional Services for SportFive related to ex tended construction schedule resulting from rain delays and delayed clubhouse bi dding for $78,800 dated June 8, 2023.

17. Additional Reimbursable Expenses to complete th e project for $24,000 dated June 8, 2023.

18. Pump Station Slab Structural Design for $2,000 dated July 6, 2023.

19. Design for Expanded Landscape Areas for $2,512 dated July 18, 2023.

Compensation for the expanded scope of work contemp lated in this Amendment No. 2 shall be as follows:

“City agrees to compensate CONTRACTOR for the expan ded scope of work contemplated under Amendment No. 3 (Exhibit “A ”), and CONTRACTOR agrees to accept in full satisfaction fo r such services an amount not-to-exceed the sum of Three Hundred Sixty-Two Thousand Four Hundred Eighty-seven dollars ( $362,487 ); unless a different amount is specifically approved in advance in writing by City.”

SECTION 2. EFFECT. Except as expressly modified by this Am endment No. 3, all provisions of the Agreement, shall remain in full force and effect.

SECTION 3. ENTIRE AGREEMENT. The provisions of this Amendme nt No. 3 shall constitute the entire agreement of the partie s with respect to the subject matter included in this Amendment No. 3 and shall supersed e any other agreement, understanding, or arrangement, whether written or o ral, between the parties with respect to the subject matter of this Amendment No. 3.

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SECTION 4. AUTHORITY. The person or persons executing this Amendment No. 3 on behalf of each of the Parties warrants and represents that he or she has the authority to execute this Amendment No. 3 on behalf of that party and has the authority to bind that party to the performance of its obligations hereunder.

IN WITNESS WHEREOF, the parties have signed this Am endment No. 3 as of the Effective Date stated in the introductory clause.

[SIGNATURES ON THE NEXT PAGE]

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CITY OF MONTEBELLO a California
municipal corporation
(“City”)

By: ______________________________
Arlene Salazar, Acting City Manager

CONTRACTOR
(“CONTRACTOR”)

By:

Name:

Title:

ATTEST:

__________________________________
Christopher Jimenez, City Clerk

By:

Name:

Title:

APPROVED AS TO FORM:

__________________________________

Arnold M. Alvarez-Glasman,
City Attorney

January 6, 2022

City of Montebello
Mr. James Enriquez, P.E.

Director / City Engineering
1600 W. Beverly Blvd.

Montebello, CA 90640

RE: Amendment #1 – Geotech Services

Dear Mr. Enriquez,

Attached is Additional Work Proposal for Geotech services at the Montebello Golf Course. The services and fee includes work associated with the requested Geotech services.

This is for additional design and coordination services outside of the existing SportFive Agreement with the City of Montebello.

The attached proposal is from Leighton. Total additional fee is $14,800. Detailed information and a summary of projected hours and hourly rates is included. SportFive will not add an additional five (5%) percent for coordination and management.

Total Fee for Amendment #1, Geotech Services - $14,800.00.

If you have any questions, or require further information, please feel free to contact me any time.

Sincerely,

Michael Angus
SportFive

J
anuary 6, 2022
P
roposal No. IR22-006
SportFive
7077 E. Marilyn Road, Suite 140
Scottsdale, Arizona 85254
A
ttention: Mr. Michael Angus
S
ubject: Proposal for Geotechnical Investigation
Proposed Golf Club Pro Shop at Montebello Golf Course
901 Via San Clemente
Montebello, California
Introduction
Leighton Consulting, Inc. (Leighton) is pleased to present this proposal to perform a geotechnical investigation for the proposed golf club pro shop at Montebello Golf Course located at 901 Via San Clemente in the city of Montebello, California. This proposal is prepared based on our phone conversations and your email on January 3, 2022, that included a boring location map. This proposal has been revised to include three additional borings and R-value testing in the existing parking area per your email on January 6, 2022.

Proposed Project
The new pro shop building will be located south of the Topgolf facility that is currently planned within the northern portion of the existing golf course. It will be a one-story building supported on a conventional shallow foundation system. The proposed improvements also include a new parking area and an onsite stor mwater infiltration system. In addition, improvements will be performed on the existing parking area that may include pavement rehabilitation (grind and overlay) , new asphalt/concrete pavement, and new landscape areas.

Scope of Services
The purpose of our geotechnical investigation is to evaluate the soils and groundwater conditions at the site through review of available data and exploratory borings in order to

Pro Shop at Montebello Golf Course Proposal No. IR22-006

provide geotechnical recommendations for design and construction of the project . Our scope of services is anticipated to include the following tasks:

• Background Review: Review available in -house geotechnical reports prepared by Leighton for adjacent sites and publicly available literature, aerial photographs, and maps relevant to the site to look for geological hazards and potential geotechnical issues that may significantly impact the project and affect our proposed field exploration and laboratory testing program.
• Site Reconnaissance: Perform a site reconnaissance to observe the current conditions, evaluate site access for our field exploration, and mark the boring locations.

We will coordinate our site visit and the boring locations with Montebello Golf Course. • Field Exploration: Drill, log, and sample six borings at the locations and to the depths provided on the boring location map provided by SportFive. Locations and depths of the borings are as follows:
− Two borings to 20 to 25 feet within the building footprint; − One boring to 10 feet deep at the future parking area; − Three borings to 5 feet at the existing parking area.

The borings will be logged by a member of our technical staff. Representative soil samples will be collected at selected depths from the borings and transported to our laboratory for testing. The borings will be backfilled with soil cuttings and patched with cold asphalt where asphalt is penetrated.
• Percolation Testing: In-situ percolation testing will be performed in accordance with the County of Los Angeles Guidelines for Geotechnical Investigation and Low Impact Development Stormwater Infiltration (June 30, 2021) to assess percolation rates of the subsurface soils for preliminary design of an onsite stormwater infiltration system (i.e.

BMP system). The boring at the future parking area will be converted to standard monitoring wells for percolation testing . A 2 -inch-diameter polyvinyl chloride (PVC) section of 0.020-inch slotted pipe will be installed with perforations between the depths of 5 to 10 feet. The space between the test hole and the slotted pipe will be backfilled with No. 3 sand as a filter pack. The pipe will then be filled with water to saturate the soils. The percolation test will be performed by measuring the drop of water level in the pipe and the time associated with the change in water level. After conclusion of the percolation tests, the PVC pipe will be removed and the holes will be backfilled with onsite soils.

Pro Shop at Montebello Golf Course Proposal No. IR22-006

• Laboratory Testing: Conduct geotechnical testing on sampled earth materials in our laboratory for soil classification and to evaluate engineering properties. This testing may include moisture content and dry density, sieve analysis, consolidation, direct shear, Expansion Index, R-value and corrosivity (minimum resistivity, chloride content, sulfate content, and pH). The actual testing will depend on the soil types encountered and samples recovered.
• Geotechnical Analysis and Report Preparation: R eview the field and laboratory data and perform engineering analysis to develop geotechnical recommendations for design and construction of the proposed project. We will prepare a report presenting our geotechnical findings and recommendations, which will be signed and stamped by a California-licensed Geotechnical Engineer (GE). Our report will include a boring location map, boring logs and geotechnical testing results, and address the following:
- Site Conditions : R eview and summarize surface, subsurface and groundwater conditions, and engineering properties of soils encountered during exploration of the site , including presence of undocumented fill and/or loose soils that may require removal and recompaction, and excavation characteristics of encountered subsurface materials.
- Geologic Hazards: Discuss potential geologic hazards, including the potential for surface fault rupture, ground shaking, liquefaction and tsunami. - Seismicity: Provide site-specific seismic coefficients in accordance with the 201 9 California Building Code.
- Corrosivity: Characterize corrosion potential of concrete and metal in contact with onsite soils and identify if special design and measures are required. - Foundation: Present geotechnical parameters for foundation design of the proposed structures, including allowable bearing capacity, minimum footing dimensions, and estimated static settlement.
- Slab-on-grade: D evelop recommendations for concrete slabs, including cement type, subgrade preparation, and minimum steel reinforcement. - Lateral Earth Pressures : P rovide recommendation for lateral earth pressures acting on retaining walls and recommendations regarding frictional and passive values for the resistance of lateral forces.
- Pipe Bedding and Backfill : P resent recommendations for subgrade preparation, pipe bedding, materials for trench backfill, and backfill compaction.

Pro Shop at Montebello Golf Course Proposal No. IR22-006

- Pavement and Hardscape: Provide recommendations for concrete flatwork and pavement structural sections based on the R -value test results for various Traffic Indices. For typical PCC pavement, we will include minimum concrete strength and control joint spacing.
- Infiltration Rates : P rovide infiltration rates of the subsurface soils and recommendations for design of an onsite storm water infiltration system should infiltration be deemed feasible in accordance with County of Los Angeles guidelines.
- Construction Considerations : P resent guidelines for site preparation, overexcavation, fill placement, compaction requirements, temporary excavation and construction dewatering, if groundwater is encountered in our borings and expected to affect construction, and geotechnical parameters for design of temporary shoring.

Schedule
Leighton is prepared to begin our background review and scheduling of field personnel and equipment immediately upon receipt of a written notice-to-proceed. We will notify DigAlert at least two working days prior to our field exploration to locate registered utilities at the proposed exploration areas. We can begin our field exploration within ten working days after receipt of your written authorization to proceed, weather and site conditions permitting, and depending on the availability of the subcontractors. We expect our field exploration and percolation testing to be completed in two working days. The geotechnical report will be available to you within five weeks after completion of the field exploration. Progress briefings and preliminary design recommendations can be provided via email and telephone as the data is developed.

Assumptions
Our
scope of work and fee estimate are based on the following conditions:
• The project is not subject to the Prevailing Wage law. • Our field exploration can be performed during daylight hours on weekdays. • The borings can be backfilled with soil cuttings and patched with cold asphalt where asphalt is penetrated.

Pro Shop at Montebello Golf Course Proposal No. IR22-006

• Most of our borings will be located in the grass area and some damage may occur to the existing lawn from our field exploration. Our proposal does not include costs or other provisions for repair of lawn and landscaping.
• Available underground utility information will be provided to us prior to the field exploration. As required by the state of California, we will also notify Underground Service Alert of the location of our planned exploration prior to drilling. We will take the precautions to avoid utilities; however, despite reasonable efforts, there are inherent risks to utility damage from drilling. We cannot assume responsibility for the inherent risks if the utilities are not accurately marked at the site. Our proposal does not include costs or other provisions for utility repairs.
• We will request DigAlert to use chalk-based paint that is supposedly degradable to mark the utility lines. Removal of DigAlert marking is not part of our scope of work. • Identification, handling, and treatment of materials that need to be environmentally addressed are beyond the scope of our geotechnical engineering servic es. If such materials are encountered, we will notify you immediately and a proposal for handling of such materials will be submitted upon request.
• This proposal addresses only geotechnical design services, and does not include services during bidding to respond to contractor’s questions pertaining to geotechnical aspects of this project, and geotechnical and materials testing during construction. Upon request, we can also prepare a proposal to provide these services.

Fee
Leighton will perform the geotechnical investigation for a fixed fee of Fourteen Thousand Eight Hundred Dollars ($14,800.00) based on the scope of work presented above. The fee includes charges for drill ing rig rental, percolation testing, laboratory testing, and a final report.

Terms and Conditions
Attached is an agreement covering our services. If the services are awarded to Leighton and the agreement is acceptable to you, please have both the Master Services Agreement and the Scope of Work Agreement executed by a duly authorized officer and returned to us and we will return one fully executed copy for your records. Your assent to our performing services or your acceptance or use of our services or information prior to

Pro Shop at Montebello Golf Course Proposal No. IR22-006

executing of a mutually acceptable contract constitutes your agreement that the terms of the attached Agreement shall control.

We
appreciate the opportunity to submit this proposal and we look forward to working with you on this project. If you have any questions or information that would update our scope of service, please contact us at your convenience.

Res
pectfully submitted,
LE
IGHTON CONSULTING, INC.

Dj
an Chandra, PE, GE
Senior Principal Engineer
DJC/lr
Attachments: Scope of Work Agreement
Master Services Agreement
Information for Clients Regarding Leighton’s Services
Distribution: (1) Addressee (PDF by email)

Pro Shop at Montebello Golf Course Proposal No. IR22-006

SCOPE OF WORK AGREEMENT
This Scope of Work, effective January 6, 2022, is, upon execution of the Parties, incorporated under Master Services Agreement No. by and between Leighton Consulting, Inc. (LEIGHTON CONSULTING) and SportFive (“CLIENT”).

PROJECT LOCATION: Montebello Golf Course, California
DESCRIPTION OF SERVICES: See Proposal (IR22-006) dated January 6, 2022.

LEIGHTON CONSULTING: CLIENT:

Leighton Consulting, Inc. SportFive
17781 Cowan 7077 E. Marilyn Road, Suite 140
Irvine, California 92614 Scottsdale, Arizona 85254
Telephone: (949) 681-4267 Telephone: (480) 483-9500
Email: [email protected] Email: [email protected] Prime Contact: Mr. Djan Chandra Prime Contact: Mr. Michael Angus

FEE: The Services shall be undertaken for a fixed fee of Fourteen Thousand Eight Hundred Dollars ($14,800.00), payable upon receipt of invoice.

I have reviewed and agree to this scope of work.

LEIGHTON CONSULTING, INC. SPORTFIVE

By (Signature) By (Signature)

(Print Name) (Print Name)

Date Date

CLIENT ACKNOWLEDGES THAT IT HAS READ AND UNDERSTANDS THE DOCUMENT ENTITLED “INFORMATION FOR CLIENTS REGARDING LEIGHTON CONSULTING’S SERVICES”

MASTER SERVICES AGREEMENT

SECTION I. SERVICES AND
COMPENSATION:

This Master Services Agreement ("Agreement") is entered into effective January 6, 2022, by and between
SPORTFIVE ("CLIENT") and LEIGHTON CONSULTING,
INC. (the "parties") . This Agreement relates to
performance of services at locations ("LOCATIONS")
described in each Scope of Work Agreement, as set forth in A., below.

The parties agree as follows:

A. Services to be Performed by LEIGHTON
CONSULTING, INC.: Leighton Consulting, Inc. shall
perform consulting services ("Services") as needed by
CLIENT in accordance with this Agreement and various
Scope of Work Agreement s, each of which shall refer to this Master Services Agreement. The Scope of Work
Agreement shall detail the particular Services required at a given LOCATION for a specific task/scope. Each Scope
of Work Agreement shall be numbered consecutively
commencing with No. 1. Upon execution by the parties,
each Scope of Work Agreement, together with this
Agreement, shall constitute a separate contract.

B. Invoicing and Payment: CLIENT will pay Leighton
Consulting, Inc. for performance of Leighton Consulting, Inc.'s Services, in accordance with the payment terms set forth in the Scope of Work Agreement pertaining to such Services. Leighton Consulting, Inc.'s fee schedules are revised annually. The Schedule in effect at the time the Services are performed shall apply to the Services.

Leighton Consulting, Inc. shall invoice CLIENT monthly for its Services, unless another invoicing schedule is set forth in the applicable Scope of Work Agreement. In the event of a dispute over payment, Client shall pay all undisputed amounts in accordance with this Agreement. Invoices will be due upon presentation and will be past due thirty (30) days from the date of the invoice. Should any invoice for payment remain outstanding for sixty (60) days or more, CLIENT agrees that Leighton Consulting, Inc. may
suspend Services and/or demand prepayment of fees at
Leighton Consulting, Inc.'s option. CLIENT agrees to pay a servic e charge of one and one half (1½) percent per
month, compounded monthly from the past due the date
of the invoice, on past due accounts, not to exceed limits set by any applicable usury laws. In the event that it
becomes necessary for Leighton Consulting, Inc. to
commence action to force payment of invoices, Leighton
Consulting, Inc. shall be entitled to reasonable collection costs.

If at any time Lei ghton Consulting, Inc. or its officers or employees should be required or requested to give expert witness testimony or otherwise participate in a judicial or administrative proceeding involving the CLIENT or
concerning matters in any way related to the Se rvices
under any Scope of Work Agreement, CLIENT agrees that
such activities shall be deemed part of the Scope of Work Agreement.

TECHNICAL LIMITATIONS:

LEIGHTON CONSULTING, INC.'s Services are based solely on the investigations described in the Scope of Work Agreement, which was established after consultation between the parties. Client agrees that it is unreasonable to expect to completely evaluate subsurface conditions even after the most comprehensive exploratory program reasonably possible.

Further, site conditions change frequently due to the passage of time, human activities and climatic conditions.

Uncertainties are therefore inherent in the nature of LEIGHTON CONSULTING, INC.'S Services and impossible to avoid.

CLIENT acknowledges that the identification of geotechnical conditions and the prediction of future or concealed conditions is an inexact scientific endeavor. The state of the art of geotechnical practice is such that LEIGHTON CONSULTING, INC. cannot guarantee that its recommendations will prove adequate on this project and the client assumes the risk of any such failure, except as provided in this Agreement. Anything herein to the contrary notwithstanding, LEIGHTON CONSULTING, INC. shall not be alleged to be negligent, nor shall LEIGHTON CONSULTING, INC. be liable under this Agreement or otherwise for occurrences occasioned by performance of Services performed in accordance with standards of care and diligence utilized by those performing similar services at the time and in the general vicinity in which the Services are performed.

THIS CONTRACT CONTAINS SPECIFIC LIMITATIONS OF LIABILITY.

MASTER SERVICES AGREEMENT | SPORTFIVE

January 6, 2022 Page 2 of 5
C. Warranty: Leighton Consulting, Inc. shall perform its Services in accordance with the standards of care and
diligence normally practiced by members of the profession performing professional consulting services of a similar nature. If, during the one (1) year period following
completion or termination of Services, whichever is earlier, under the applicable Scope of Work Agreement, it is
shown that there is an error in the Services as a result of Leighton Consulting, Inc.'s failure to perform the Services in accordance with the above standard, and CLIENT has
notified Leighton Consulting, Inc. in writing of the error within such one year period, Leighton Consulting, Inc.
shall re- perform, at no cost to CLIENT, such corrective Services within the original Scope of Work Agreement, as may be necessary to remedy such error and to conform
the Services to the above stated standard.

EXCEPT AS EXPRESSLY STATED ABOVE, LEIGHTON
CONSULTING, INC. MAKES NO OTHER WARRANTY,

EXPRESS OR IMPLIED, CONCERNING ANY OF THE

MATERIALS OR SERVICES WHICH MAY BE
FURNISHED PURSUANT TO THIS AGREEMENT.

Leighton Consulting, Inc. shall, for the protection of
CLIENT, demand available warranties, indemnities and
guaranties with respect to machinery, equipment,
materials and services from all vendors and
subcontractors with whom Leighton Consulting, Inc.
contracts, and shall render all reasonable assistance to CLIENT for the purpose of enforcing the same.

D. Indemnity: Leighton Consulting, Inc. shall release,
indemnify and hold CLIENT harmless from and against
any and all claims, demands, losses, expenses and
causes of action resulting from or arising out of (a) failure of Leighton Consulting, Inc. to comply in material respects with federal, state and local laws and regulations
applicable to the Services; (b) material breach by Leighton Consulting, Inc. of Leighton Consulting, Inc.'s warranties in this Agreement; (c) bodily injury or death of persons, or damage to or destruction of property to the extent that the same results from the negligence or willful misconduct of Leighton Consulting, Inc., its employees, officers or
agents while engaged in the performance of the Services.

E. Limitations: For any errors, omissions or other acts, including any damages based in contract, tort or other
causes of action, Leighton Consulting, Inc.'s liability, including that of its employees, agents, and officers shall not exceed amounts recovered under the scope and limits of Leighton Consulting, Inc.'s insurance, described in F below, plus Leighton Consulting, Inc.'s warranty
obligation, as stated in C, above.

F. Insurance: Commencing with performance of the
Services, and for the entire term of this Agreement,
Leighton Consulting, Inc. shall maintain the following
insurance, and shall, upon the request of CLIENT, furnish copies of insurance certificates evidencing the following coverage:

Worker's Compensation: California statutory limits
Employer's Liability: $1,000,000 per occurrence
Commercial Liability Insurance: Commercial liability
insurance including Contractual Liability, Property
Damage, Bodily Injury and Death and Automobile Liability, $1,000,000 combined single limit, $1,000,000 annual
aggregate
CLIENT may be named as an additional insured on the
Commercial liability policy, with respect to Leighton
Consulting, Inc.'s performance of this Agreement. CLIENT shall be provided with thirty (30) days written notice before cancellation of or any material change in such insurance.

G. Changes: In the event CLIENT desires to make
changes in the Services and so notifies Leighton
Consulting, Inc., Leighton Consulting, Inc. will perform such changes and additional work pursuant to the terms, conditions and pricing of this Agreement and the
applicable Scope of Work Agreement. CLIENT
acknowledges that the individual signing this Agreement on its behalf, or any authorized representative of CLIENT, may amend or change any Scope of Work Agreement.

H. Termination: Either party may, prior to completion
and with or without cause, terminate the Services under any or all Scopes of Work at any time upon five (5) working days' written notice to the other. In event that CLIENT terminates this Agreement without cause, Leighton
Consulting, Inc. shall be paid for Services performed to the date of termination plus non cancelable commitments
entered into prior to Leighton Consulting, Inc.'s receipt of notice of termination, and actual, reasonable, termination costs.

I. Term: The term of this Agreement is one year from
its effective date; however, this Agreement shall
automatically be renewed for consecutive one year terms unless terminated by either party. Termination shall not affect the rights, obligations and remedies of the parties.

This Agreement, with attachments, Scope of Work
Agreement(s) and any attachments thereto, constitute the complete Agreement of the parties. No other
representations of any kind, oral or otherwise, have been made. If CLIENT elects to utilize a purchase order or other form as a convenience, for billing purposes or in
accordance with its customary practice, Leighton
Consulting, Inc. will refer to the same in invoices or

MASTER SERVICES AGREEMENT | SPORTFIVE

January 6, 2022 Page 3 of 5
correspondence, with the understanding that this
Agreement supersedes all inconsistent terms.

This Agreement shall be governed by the laws of the State of California. Any arbitration or litigation arising from this Agreement shall take place in Orange County, California.

SECTION II: GENERAL PROVISIONS
A Severability: If any provision of this Agr eement is
finally determined to be contrary to, prohibited by, or invalid under applicable laws or regulations, such
provision will be renegotiated to give effect to the intent of the parties to the maximum possible extent. Such
determination and renegotiation shall not affect or
invalidate the remaining provisions of this Agreement
B Use of Reports or Services: Leighton Consulting,
Inc.'s opinions, reports or Services may not be utilized in prospectuses, proxy solicitations, loan applications, or other documents or transactions reasonably expected to
influence investment decisions without Leighton
Consulting, Inc.'s prior written consent.

C. No Third Party Rights: Nothing contained in or
relating to the formation of this Agreement is intended to make any person or entity who is not a signatory to the Agreement a third party beneficiary. No one other than
CLIENT shall be entitled to use and rely on the opinions, Services or reports produced hereunder.

D. Execution and Counterparts: This Agreement and
any Scope of Work Agreement may be executed and
delivered in two or more counterparts and by each party hereto in separate counterparts, each of which when so
executed and delivered shall be deemed an original and
both of which taken together shall constitute but one and the same instrument.

E. Remedies: Neither party shall be held liable for
indirect or consequential damages of any nature
whatsoever, howsoever arising. The obligations,
responsibilities, warranties and liabilities of the parties with respect to the Services shall be solely those expressly set forth in this Agreement. Remedies and limitations on
liability shall apply regardless of whether an action is brought in contract, or is based on either party's
negligence, strict liability or another theory of law. The limitations stated in this Agreement extend collectively to the parties' partners, joint venturers, licensors, insurers and affiliates. CLIENT and Leighton Consulting, Inc. agree that any legal action with respect to the Services to be done under this agreement shall be brought solely against the parties, and not against affiliated companies,
individual officers, employees or former employees of the parties. All legal actions by either party against the other for breach of this Agreement, or for the failure to perform in accordance with the applicable standard of care,
however framed, that are essentially based upon such
breach or failure shall be barred two (2) years from the time claimant knew or should have known of its right to make a claim, but, in any event, not later than four (4) years from substantial completion of the Services.

F. Confidentiality: Leighton Consulting, Inc. agrees to hold in confidence and not to use or disclose to any third party without the written consent of CLIENT any and all information relating directly to the Services provided, except as required by law or regulation, or as needed to carry out work under this Agreement. This obligation of confidentiality shall expire five (5) years after completion or termination of the Services under the applicable Scope of Work Agreement, and shall not apply to: (a) information in Leighton C onsulting, Inc.'s possession or known to
Leighton Consulting, Inc. prior to its receipt in connection with this Agreement or the Services; (b) information
independently developed by Leighton Consulting, Inc. at no cost to CLIENT and without the use of Client’s
confidential information; (c) information which is or
becomes public knowledge through no fault of Leighton
Consulting, Inc.; (d) information which is or becomes
available on an unrestricted basis from a third party which Leighton Consulting, Inc. has no reason to believe has an obligation of confidentiality.

G. Ownership of Records: Subject to Paragraph “F,”
above, all reports, logs, field data, field notes, laboratory test data, calculations, estimates and other documents
prepared by Leighton Consult ing, Inc. under this
Agreement shall remain the property of CLIENT. Leighton Consulting, Inc. shall be entitled to maintain file copies, subject to Leighton Consulting, Inc.'s confidentiality
agreement set forth in Paragraph “F” above. CLIENT
recognizes that Leighton Consulting, Inc.'s reports and opinions will be prepared specifically for and in connection with the Services performed for the particular LOCATION and task/scope. CLIENT shall not, except with Leighton
Consulting, Inc.'s prior written consent, utilize the same on other projects. Inventions or software conceived or
developed by employees of Leighton Consulting, Inc. in
the course of the Services shall belong exclusively to
Leighton Consulting, Inc..

H. Force Majeure: Unless otherwise specified i n this
Agreement, Leighton Consulting, Inc. shall be obligated to perform its Services within a reasonable period of time.

Schedules are estimates only. Leighton Consulting, Inc. shall not be responsible for delays in the completion of the Services if such delays are created by reason of any
unforeseen cause or causes beyond Leighton Consulting,

MASTER SERVICES AGREEMENT | SPORTFIVE

January 6, 2022 Page 4 of 5
Inc.'s reasonable control, including, but not restricted to acts of God or the public enemy, acts or delays of
governmental or regulatory bodies, acts or delays of other contractors or CLIENT, fire, floods, epidemics, riots,
quarantine restrictions, strikes, civil insurrections, freight embargoes, and unusually severe weather. In the event of delay due to any such cause, Leighton Consulting, Inc.
shall be paid by CLIENT only for actual out of pocket costs occasioned by such delay, including standby costs, as if the same had been included in the Scope of Work
Agreement.

I. Compliance: Leighton Consulting, Inc. agrees to
perform its Services in accordance with all applicable laws and regulations which are in force and effect at the time of performance.

J. Information Obtained from Others: The parties
agree that Leighton Consulting, Inc. will be supplied with certain information and/or data by CLIENT and/or others, and that Leighton Consulting, Inc. will rely on same.

Leighton Consulting, Inc. shall not be responsible for
verifying the accuracy of such information, unless the
applicable Scope of Work Agreement provides for
verification by Leighton Consulting, Inc..

K. Provision of Information: CLIENT shall
immediately notify Leighton Consulting, Inc. in writing of any data, information or knowledge in the possession of or known to CLIENT relating or relevant to performance of the Services, including information relating to the actual or possible presence of hazardous materials. CLIENT
recognizes that new information may require revision of Leighton Consulting, Inc.'s opinions or analyses.

L. Timely Review and Comment: CLIENT shall
promptly review all documents, reports, data and
recommendations submitted by Leighton Consulting, Inc.
and shall communicate with Leighton Consulting, Inc.
concerning such reviews to avoid delay in the
performance of the Services.

M. Headings and Construction: Article and paragraph
headings used herein are for the convenience of reference only and shall not affect the construction of any provision of this Agreement. Neither party hereto nor its respective counsel shall be deemed the drafter of this Agreement for purposes of construing the provisions hereof. The
language in all parts of this Agreement shall in all cases be construed according to its fair meaning and not strictly for or against any party hereto.

N. Independent Contractor: Leighton Consulting, Inc.
shall perform services as an independent contractor and not an employee or agent of CLIENT.

O. Notices: Any and all notices and other
communications hereunder shall be in writing and be
deemed received when delivered, or forty eight (48) hours after being mailed, via certified or registered mail, return receipt requested, postage prepaid, to the respective
addresses set forth in the applicable Scope of Work
Agreement, or to such other addresses as either of the
parties hereto may from time to time designate in writing to the other party.

SECTION III: FIELD WORK TERMS
A. Access: CLIENT warrants that it has or will obtain,
timely access for Leighton Consulting, Inc. to all
necessary areas of the LOCATION and any other property
necessary for the performance of the Services.

B. Site Characteristics and Hazards : CLIENT will
provide Leighton Consulting, Inc. with and Leighton
Consulting, Inc. can rely on all relevant information
available concerning the LOCATION, including, without
limitation, any past or present uses, site and facility diagrams, fact s concerning previous conditions or
incidents which could affect the Services or Leighton
Consulting, Inc.'s opinions; prior studies and assessments and compliance issues.

C. Repairs, Cleanup and Field Corrections: Leighton
Consulting, Inc. will use all r easonable care to minimize damage to the LOCATION and other properties, but has
included only customary site cleanup in the Scope of Work Agreement. CLIENT is responsible for identifying and
locating underground structures, and agrees to defend,
indemnify and hold Leighton Consulting, Inc. harmless
from and against all liability, losses or costs resulting from damage to or destruction of underground structures not
properly located and marked. CLIENT recognizes that
performance of the Services may result in the necessity of some repairs, extra cleanup or field corrections and
agrees to compensate Leighton Consulting, Inc. for the
same as if it were included in the Scope of Work
Agreement.

D. Safety Equipment and Samples: If special safety
equipment is required to protect personnel, such
equipment will be purchased at the Client’s expense.

Upon completion of the Services, all such equipment shall remain Client’s property and shall be returned to CLIENT for proper disposal. All samples taken, including
contaminated materials and decontamination fluids, shall remain the property of the CLIENT and shall be returned to the CLIENT at the conclusion of the project for proper disposal by the CLIENT.

MASTER SERVICES AGREEMENT | SPORTFIVE

January 6, 2022 Page 5 of 5
E. Removal Materials: All materials removed from
boreholes or trenches will be placed in suitable storage containers, if necessary, and left onsite. Contaminated materials will be stored separately from non-contaminated materials, if this determination can be made with
appropriate field equipment. An appropriate label will be attached to each container identified as holding
contaminated or possibly contaminated materials. Proper disposal of the containers and their contents is the sole responsibility of the CLIENT.

F. Groundwater: All groundwater removed from a
monitoring wel l will be stored in containers on site. An appropriate label will be attached to each container.

Following chemical analysis of a sample from the
monitoring well or container, Leighton Consulting, Inc. will notify the CLIENT of analyses results. Proper dis posal of containers and contents is the sole responsibility of the CLIENT.

G. Standby Costs: CLIENT shall pay Leighton
Consulting, Inc. the standby rate set forth in the Scope of Work Agreement for field personnel and for drilling
equipment in the event of stoppage of work in the field due to: (1) request by CLIENT, or (2) governmental agency
order, or (3) unreported or unanticipated conditions at the site which, in the sole opinion of Leighton Consulting, Inc., constitute a hazard to personnel and/or equipment in the performance of the investigation.

H. Waste Removal and Disposal: CLIENT shall be
solely responsible for the selection of disposal sites, removal, transportation, handling, management,
packaging, labeling, storage, treatment, labeling,
manifesting and disposal of any waste or hazardous
materials, including samples produced or encountered in the performance of the Services as well as all associated documentation connected therewith. Leighton Consulting, Inc. shall follow Client’s instructions with respect to such waste, and shall assist CLIENT as specified in the Scope of Work Agreement.

I. Hazardous Substances or Conditions: CLIENT
agrees to advise Leighton Consulting, Inc. in writing if any Services are to be performed in an area where hazardous or toxic substances or conditions may or are likely to be encountered. CLIENT further agrees that, if such
substances or conditions are encountered, such event
shall constitute a changed condition necessitating a
revision to the Scope of Work Agreement to include all
necessary additional Services and to resolve all health and safety concerns posed by such substances or
conditions, or termination of the services. CLIENT will defend, indemnify and hold Leighton Consulting, Inc.
harmless from any cost, claim, liability or injury including delay, associated with discovery of unanticipated
hazardous materials on any disclosure of any such
materials required by law or regulation.
.

IN WITNESS WHEREOF, the parties have executed this Agreement effective on the date first written above.

LEIGHTON CONSULTING, INC.

SPORTFIVE
By (Signature) By (Signature)

Please type or clearly print name and title Please type or clearly print name and title Date: Date:

औ We provide technical consulting services in the
fi eld of geotechnical engineering. As consultants,
we provide professional opinions based on limit-
ed observations and often- changing conditions.

Due to the nature of our work, there are unavoid-
able risks. We call your attention specifi cally to
the following points:
औ Our professional opinions will be based in part
upon data obtained from a limited number of soil
and/or other samples, tests analyses, histories of
occurrences, spaced subsurface explorations and
limited numbers of historical events and observa-
tions. Such information is necessarily limited and
incomplete.
औ The accuracy, value and analytical signifi cance
of borings and other fi eld and laboratory proce-
dures and data relate only to their specifi c time
and location. The nature of many sites is such
that diff ering characteristics can be experienced
within small distances and under various climatic
conditions. Greater accuracy is obtained when the
number and frequency of procedures and analy-
ses are increased, but we recognize the necessity
of budgetary constraints, and have agreed with
you on the Scope of Work Agreement taking into
account such constraints.
औ If conditions change, unexpected events occur,
or variations or latent conditions are later discov-
ered, they may have an impact on the way sys-
tems perform, and/or it may become necessary
to reevaluate conclusions and recommendations.

Such impacts may also necessitate a change in
the applicable Scope(s) of Work.
औ The Services involve tests, calculations, analyses
and procedures, which are in a constant state of
development and refi nement. Evaluative tech-
niques are continually evolving.
औ Modifi cations of procedures that have been
made in the past are now being made and are
expected to continue to be made in the future.

Standards existing at present may be revised as
knowledge increases and the state of the practice
in our profession continues to improve.
औ At times, clients elect to utilize new, state-of-
the art, or innovative techniques, systems, or
approaches for cost, schedule or other reasons.

Sometimes governmental or regulatory agencies
will allow the use of a new technique, process,
or system before it has been thoroughly tested.

If the Client elects to use unproven or new tech-
niques, they may fail, despite the exercise of due
care on our part, and despite agency approvals.
औ Our work products shall be based solely upon the
Services described in the Scope of Work Agree-
ment, and not on tasks, procedures or tests be-
yond the scope of described Services on the time
and budgetary constraints refl ected in the Scope
of Work Agreement.

We appreciate your business and look forward
to working with you.

R: 7.21
Because of the inherent risks and uncertainties
in our Services, our contract contains specifi c
limitations of liability. Leighton cannot guaran-
tee that geotechnical services or opinions will
prove adequate and the client assumes the risk
of failure of such services.

March 17, 2022

City of Montebello
Mr. James Enriquez, P.E.

Director / City Engineering
1600 W. Beverly Blvd.

Montebello, CA 90640

RE: Amendment #2 – Landscape Design – Temporary Event Lawn and Landscape

Dear Mr. Enriquez,

Attached is Additional Work Proposal for the design of the temporary event lawn and landscape area adjacent to the existing golf pro-shop and existing Hole 10 tee. This is for additional design and coordination services outside of the existing SportFive Agreement with the City of Montebello.

The attached proposal is from Cummings Curley and Associates, Landscape Architects. Total additional fee is $5,000. Detailed information and a summary of projected hours and hourly rates is included. In addition to the $5,000 fee, SportFive will add an additional five (5%) percent for coordination and management.

Total Fee for Amendment #2, Landscape Design – Temporary Event Lawn and Landscape - $5,250.00.

If you have any questions, or require further information, please feel free to contact me any time.

Sincerely,

Michael Angus
SportFive

May 25, 2022

City of Montebello
Mr. James Enriquez, P.E.

Director / City Engineering
1600 W. Beverly Blvd.

Montebello, CA 90640

RE: Amendment #7 – CSI Specification Preparation

Dear Mr. Enriquez,

Attached is Additional Work Proposal for preparing our Specifications into CSI Format for the Montebello Golf Course Project. The services and fee includes:

To prepare a Project Manual for a golf course project that contains civil, landscape, golf design, golf irrigation design, lake design and site utilities specification sections.

This is for additional design and coordination services outside of the existing SportFive Agreement with the City of Montebello.

The attached proposal is from Steven Olitsky, AIA, CSI. Total additional fee is $10,000. Detailed information and a summary of projected hours and hourly rates is included. SportFive agrees to waive the additional five (5%) percent for coordination and management.

Total Fee for Amendment #7, CSI Specification Preparation - $10,000.

If you have any questions, or require further information, please feel free to contact me any time.

Sincerely,

Michael Angus / SportFive

S T E V E N O L I T S K Y, A I A, C S I, C C S

ARCHITECT / CERTIFIED CONSTRUCTION SPECIFIER

May 25, 2022

Mr. Michael Angus, Director, Golf Course Design & Development SportFive

7077 E. Marilyn Road, Suite 140
Scottsdale, AZ 85254

480-483-9500
[email protected]

Subject: Proposal – “Montebello Golf Course”, Montebello, CA

Dear Mike,

Thank you for the opportunity to offer this proposal.

To prepare a Project Manual for a golf course project that contains bidding, general requirements, civil, landscape and site utilities specification sections.

For Civil, Landscape & Related Work (Divisions 0 -14 & 31-33) Specification Sections not to exceed:
60 hours @ $165/hr = $10000.00

I will provide one electronic copy for your use during review.

The Consultant will also provide addendums; follow up support, and technical assistance, when requested.

Payment schedule shall be as follows:

CD Version Architectural: 1/4 ($2500) to start writing the specifications, 1/2 ($5000) upon delivery of 1 st
draft, finial payment 1/4 ($2500) upon delivery of corrected edited edition.

If this is acceptable, please return, signed confirmation of this letter. First 1/4 Fee Due with delivery of pdf of drawings for local reproduction (which will be reimbursed by Architect).

_________________________________ _____________________________ Acceptance for Spotfive / Name Acceptance for Consultant

___________________________________ Principal, May 25, 2022 Title / Date Title / Date

11554 Spring Oak Avenue
Boynton Beach, FL 33437
949/235-9566 TEL
[email protected]

June 20, 2022

City of Montebello
Mr. James Enriquez, P.E.

Director / City Engineering
1600 W. Beverly Blvd.

Montebello, CA 90640

RE: Amendment #9 – Reimbursable Expenses for Amendment #8 - Revised Plans with Reduced Scope / Value Engineering and Miscellaneous Engineering Items and Added Scope

Dear Mr. Enriquez,

Attached is Additional Work Proposal for estimated reimbursable expenses (travel, plan printing, etc) in association with Amendment #8 to preparing revised plans in order to meet City’s overall budget/cost for the Montebello Golf Course Project.

This is for additional design and coordination services outside of the existing SportFive Agreement with the City of Montebello.

Total additional fee is $9,000. SportFive agrees to waive the additional five (5%) percent for coordination and management.

Total Fee for Amendment #9, Reimbursable Expenses for Amendment #8 - Revised Plans with Reduced Scope / Value Engineering and Miscellaneous Engineering Items and Added Scope - $9,000

If you have any questions, or require further information, please feel free to contact me any time.

Sincerely,

Michael Angus / SportFive

September 6, 2022

City of Montebello
Mr. James Enriquez, P.E.

Director / City Engineering
1600 W. Beverly Blvd.

Montebello, CA 90640

RE: Amendment #10 - Geotech Review, Stamp and Provide Information Requested/Required for Part of the Golf Clubhouse Permit Process

Dear Mr. Enriquez,

Attached is Additional Work Proposal for geotechnical services to satisfy the permit plan reviewer request for information in association with the Golf Clubhouse Building Permit. The services and fee includes:
(A) Review foundation plans and details for compliance with the geotechnical report . (B) Coordinate with the project structural engineer to resolve any comments . (C) Sign and stamp relevant sheets of the foundation plans.

This is for additional design and coordination services outside of the existing SportFive Agreement with the City of Montebello.

The fees listed below (attached proposals) are from our design team:

Leighton Consulting, Inc. $2,500

Total additional fee is $2,500. Detailed information and a summary of projected hours and hourly rates is included. In addition to the $2,500 fee, SportFive will add an additional five (5%) percent for coordination and management.

Total Fee for Amendment #10, Geotech Review, Stamp and Provide Information Requested/Required for Part of the Golf Clubhouse Permit Process - $2,625.

If you have any questions, or require further information, please feel free to contact me any time.

Sincerely,

Michael Angus / SportFive

AMENDMENT NO. 1 TO MASTER SERVICES AGREEMENT
This Amendment 1 , effective September 2, 2022, is, upon execution of the Parties, incorporated under Master Services Agreement No. C81843M dated January 6, 20 22, by and between Leighton Consulting , Inc. (LEIGHTON CONSULTING) and SportFive (“CLIENT”).

PROJECT LOCATION: Pro Shop at Montebello Golf Course, 901 Via San Clemente , Montebello, California
DESCRIPTION OF SERVICES:
• Review foundation plans and details for compliance with the geotechnical report; • Coordinate with the project structural engineer to resolve any comments; and • Sign and stamp relevant sheets of the foundation plans.

LEIGHTON CONSULTING: CLIENT:

Leighton Consulting, Inc. SportFive
17781 Cowan 7077 E. Marilyn Road, Suite 140
Irvine, California 92614 Scottsdale, Arizona 85254
Telephone: (949) 681-4267 Telephone: (480) 483-9500
Email: [email protected] Email: [email protected] Prime Contact: Djan Chandra Prime Contact: Mr. Michael Angus FEE:

The Services shall be undertaken for a fixed fee of T wo Thousand Five Hundred Dollars ($2,500.00), payable upon receipt of invoice.

I
have reviewed and agree to this scope of work.

LEIGHTON CONSULTING, INC. SPORTFIVE
By (Signature) By (Signature)
Djan Chandra
(Print Name) (Print Name)
9-2-2022
Date Date