T1S, R10E, SBM. Continue S along west boundary of R10E, SBM to Imperial County line at the SW corner of T8S, R10E, SBM.
Continue W along Imperial and Riverside county line to NW corner of T9S, R9E, SBM. Continue S along the boundary between Imperial and San Diego Counties, along the west edge of R9E, SBM to the south boundary of Imperial County/California state line. Follow the California state line west to Arizona state line, then north to Nevada state line, then continuing NW back to start at the point which is the NW corner of Section 1, T17N, R14E, SBM
$1.00 additional per hour for portions of SAN LUIS OBISPO, KERN, SANTA BARBARA & VENTURA as defined below:
That area within the following Boundary: Begin approximately 5 miles north of the community of Cholame, on the Monterey County and San Luis Obispo County boundary at the NW corner of T25S, R16E, Mt. Diablo Meridian. Continue south along the west side of R16E to the SW corner of T30S, R16E, MDM. Continue E to SW corner of T30S, R17E, MDM. Continue S to SW corner of T31S, R17E, MDM. Continue E to SW corner of T31S, R18E, MDM.
Continue S along West side of R18E, MDM as it crosses into San Bernardino Meridian numbering area and becomes R30W. Follow the west side of R30W, SBM to the SW corner of T9N, R30W, SBM.
Continue E along the south edge of T9N, SBM to the Santa Barbara County and Ventura County boundary at that point whch is the SW corner of Section 34.T9N, R24W, SBM, continue S along the Ventura County line to that point which is the SW corner of the SE quarter of Section 32, T7N, R24W, SBM. Continue E along the south edge of T7N, SBM to the SE corner to T7N, R21W, SBM. Continue N along East side of R21W, SBM to Ventura County and Kern County boundary at the NE corner of T8N, R21W.
Continue W along the Ventura County and Kern County boundary to the SE corner of T9N, R21W. Continue North along the East edge of R21W, SBM to the NE corner of T12N, R21W, SBM. Continue West along the north edge of T12N, SBM to the SE corner of T32S, R21E, MDM. [T12N SBM is a think strip between T11N SBM and T32S MDM]. Continue North along the East side of R21E, MDM to the Kings County and Kern County border at the NE corner of T25S, R21E, MDM, continue West along the Kings County and Kern County Boundary until the intersection of San Luis Obispo County. Continue west along the Kings County and San Luis Obispo County boundary until the intersection with Monterey County. Continue West along the Monterey County and San Luis Obispo County boundary to the beginning point at the NW corner of T25S, R16E, MDM.
$2.00 additional per hour for INYO and MONO Counties and the Northern portion of SAN BERNARDINO County as defined below:
That area within the following Boundary: Begin at the
intersection of the northern boundary of Mono County and the California state line at the point which is the center of Section 17, T10N, R22E, Mt. Diablo Meridian. Continue S then SE along the entire western boundary of Mono County, until it reaches Inyo County at the point which is the NE corner of the Western half of the NW quarter of Section 2, T8S, R29E, MDM.
Continue SSE along the entire western boundary of Inyo County, until the intersection with Kern County at the point which is the SW corner of the SE 1/4 of Section 32, T24S, R37E, MDM.
Continue E along the Inyo and Kern County boundary until the intersection with San Bernardino County at that point which is the SE corner of section 34, T24S, R40E, MDM. Continue E along the Inyo and San Bernardino County boundary until the point 6/12/24, 7:53 AM SAM.gov
https://sam.gov/wage-determination/CA20230001/1 13/25
which is the NE corner of the Western half of the NW quarter of Section 6, T25S, R42E, MDM. Continue S to that point which is the SW corner of the NW quarter of Section 6, T27S, R42E, MDM.
Continue E in a straight line to the California and Nevada state border at the point which is the NW corner of Section 1, T17N, R14E, San Bernardino Meridian. Then continue NW along the state line to the starting point, which is the center of Section 18, T10N, R22E, MDM.
REMAINING AREA NOT DEFINED ABOVE RECIEVES BASE RATE
---------------------------------------------------------------- * ENGI0012-004 08/01/2022
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OPERATOR: Power Equipment
(DREDGING)
(1) Leverman................$ 61.60 32.50
(2) Dredge dozer............$ 55.63 32.50
(3) Deckmate................$ 55.52 32.50
(4) Winch operator (stern
winch on dredge)............$ 54.97 32.50
(5) Fireman-Oiler,
Deckhand, Bargeman,
Leveehand...................$ 54.43 32.50
(6) Barge Mate..............$ 55.04 32.50
---------------------------------------------------------------- * IRON0229-001 01/01/2023
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IRONWORKER
Fence Erector...............$ 41.28 25.66
Ornamental, Reinforcing
and Structural..............$ 46.20 34.30
PREMIUM PAY:
$6.00 additional per hour at the following locations:
China Lake Naval Test Station, Chocolate Mountains Naval Reserve-Niland,
Edwards AFB, Fort Irwin Military Station, Fort Irwin Training Center-Goldstone, San Clemente Island, San Nicholas Island, Susanville Federal Prison, 29 Palms - Marine Corps, U.S. Marine Base - Barstow, U.S. Naval Air Facility - Sealey, Vandenberg AFB $4.00 additional per hour at the following locations:
Army Defense Language Institute - Monterey, Fallon Air Base, Naval Post Graduate School - Monterey, Yermo Marine Corps Logistics Center
$2.00 additional per hour at the following locations:
Port Hueneme, Port Mugu, U.S. Coast Guard Station - Two Rock ---------------------------------------------------------------- LABO0089-001 07/01/2022
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6/12/24, 7:53 AM SAM.gov
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LABORER (BUILDING and all
other Residential
Construction)
Group 1.....................$ 37.68 22.44
Group 2.....................$ 38.37 22.44
Group 3.....................$ 39.12 22.44
Group 4.....................$ 39.98 22.44
Group 5.....................$ 41.60 22.44
LABORER (RESIDENTIAL
CONSTRUCTION - See definition
below)
(1) Laborer.................$ 35.58 20.77
(2) Cleanup, Landscape,
Fencing (Chain Link & Wood).$ 34.29 20.77
RESIDENTIAL DEFINITION: Wood or metal frame construction of single family residences, apartments and condominums -
excluding (a) projects that exceed three stories over a garage level, (b) any utility work such as telephone, gas, water, sewer and other utilities and (c) any fine grading work, utility work or paving work in the future street and public right-of-way; but including all rough grading work at the job site behind the existing right of way
LABORER CLASSIFICATIONS
GROUP 1: Cleaning and handling of panel forms; Concrete Screeding for Rought Strike-off; Concrete, water curing; Demolition laborer; Flagman; Gas, oil and/or water pipeline laborer; General Laborer; General clean-up laborer;
Landscape laborer; Jetting laborer; Temporary water and air lines laborer; Material hoseman (walls, slabs, floors and decks); Plugging, filling of Shee-bolt holes; Dry
packing of concrete; Railroad maintenance, Repair Trackman and road beds, Streetcar and railroad construction trac laborers; Slip form raisers; Slurry seal crews (mixer
operator, applicator operator, squeegee man, Shuttle man, top man), filling of cracks by any method on any surface; Tarman and mortar man; Tool crib or tool house laborer; Window cleaner; Wire Mesh puling-all concrete pouring
operations
GROUP 2: Asphalt Shoveler; Cement Dumper (on 1 yard or larger mixer and handling bulk cement); Cesspool digger and
installer; Chucktender; Chute man, pouring concrete, the handling of the cute from ready mix trucks, such as walls, slabs, decks, floors, foundations, footings, curbs, gutters and sidewalks; Concrete curer-impervious membrane and form oiler; Cutting torch operator (demoliton); Guinea chaser; Headboard man-asphlt; Laborer,
packing rod steel and pans; membrane vapor barrier installer; Power broom sweepers (small); Riiprap, stonepaver, placing stone or wet sacked concrete; Roto scraper and tiller; Tank sealer and cleaner; Tree climber, faller, chain saw
operator, Pittsburgh Chipper and similar type brush
shredders; Underground laborers, including caisson bellower GROUP 3: Buggymobile; Concrete cutting torch; Concrete
cutting torch; Concrete pile cutter; Driller, jackhammer, 2 1/2 feet drill steel or longer; Dri Pak-it machine; High sealer (including drilling of same); Hydro seeder and
similar type; Impact wrench, mult-plate; Kettlemen, potmen and mean applying asphalt, lay-kold, creosote, line caustic and similar type materials (applying means applying,
dipping, brushing or handling of such materials for pipe 6/12/24, 7:53 AM SAM.gov
https://sam.gov/wage-determination/CA20230001/1 15/25
wrapping and waterproofing); Operators of pneumatic, gas, electric tools, vibratring machines, pavement breakers, air blasting, come-along, and similar mechanical tools not
separately classified herein; Pipelayers back up man
coating, grouting, making of joints, sealing, caulking, diapering and inclduing rubber gasket joints, pointing and any and all other services; Rotary Scarifier or multiple head concrete chipping scaarifier; Steel header board man and guideline setter; Tampers, Barko, Wacker and similar type; Trenching machine, handpropelled
GROUP 4: Asphalt raker, luterman, ironer, apshalt dumpman and asphalt spreader boxes (all types); Concrete core cutter (walls, floors or ceilings), Grinder or sander; Concrete saw man; cutting walls or flat work, scoring old or new concrete; Cribber, shorer, lagging, sheeting and trench bracing, hand-guided lagging hammer; Laser beam in
connection with laborer's work; Oversize concrete vibrator operator 70 pounds and over; Pipelayer performing all
services in the laying, installation and all forms of
connection of pipe from the point of receiving pipe in the ditch until completion of oepration, including any and all forms of tubular material, whether pipe, metallic or
non-metallic, conduit, and any other stationary type of tubular device used for the conveying of any substance or element, whether water, sewage, solid, gas, air or other product whatsoever and without regard to the nature of
material from which the tubular material is fabricated; No joint pipe and stripping of same; Prefabricated manhole installer; Sandblaster (nozzleman), Porta shot-blast, water blasting
GROUP 5: Blasters Powderman-All work of loading holes,
placing and blasting of all pwder and explosives of
whatever type, regardless of method used for such loading and placing; Driller-all power drills, excluding
jackhammer, whether core, diamond, wagon, track, multiple unit, and any and all other types of mechanical drills
without regard to the form of motive power.
---------------------------------------------------------------- LABO0089-002 11/01/2020
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LABORER (MASON TENDER)...........$ 33.00 19.23 ---------------------------------------------------------------- LABO0089-004 07/01/2022
HEAVY AND HIGHWAY CONSTRUCTION
Rates Fringes
Laborers:
Group 1.....................$ 38.80 22.44
Group 2.....................$ 39.27 22.44
Group 3.....................$ 39.72 22.44
Group 4.....................$ 40.62 22.44
Group 5.....................$ 43.58 22.44
LABORER CLASSIFICATIONS
GROUP 1: Laborer: General or Construction Laborer, Landscape Laborer. Asphalt Rubber Material Loader. Boring Machine Tender (outside), Carpenter Laborer (cleaning, handling, 6/12/24, 7:53 AM SAM.gov
https://sam.gov/wage-determination/CA20230001/1 16/25
oiling & blowing of panel forms and lumber), Concrete
Laborer, Concrete Screeding for rough strike-off, Concrete water curing. Concrete Curb & Gutter laborer, Certified Confined Space Laborer, Demolition laborer & Cleaning of Brick and lumber,Expansion Joint Caulking; Environmental Remediation, Monitoring Well, Toxic waste and Geotechnical Drill tender, Fine Grader, Fire Watcher, Limbers, Brush Loader, Pilers and Debris Handlers. flagman. Gas Oil and Water Pipeline Laborer. Material Hoseman (slabs, walls, floors, decks); Plugging, filling of shee bolt holes; Dry packing of concrete and patching; Post Holer Digger
(manual); Railroad maintenance, repair trackman, road beds; Rigging & signaling; Scaler, Slip-Form Raisers, Filling cracks on any surface, tool Crib or Tool House Laborer, Traffic control (signs, barriers, barricades, delineator, cones etc.), Window Cleaner
GROUP 2: Asphalt abatement; Buggymobile; Cement dumper (on 1 yd. or larger mixers and handling bulk cement); Concrete curer, impervious membrane and form oiler; Chute man,
pouring concrete; Concrete cutting torch; Concrete pile cutter; driller/Jackhammer, with drill steel 2 1/'2 feet or longer; Dry pak-it machine; Fence erector; Pipeline
wrapper, gas, oil, water, pot tender & form man; Grout man; Installation of all asphalt overlay fabric and materials used for reinforcing asphalt; Irrigation laborer;
Kettleman-Potman hot mop, includes applying asphalt,
lay-klold, creosote, lime caustic and similar tyhpes of materials (dipping, brushing, handling) and waterproofing; Membrane vapor barrier installer; Pipelayer backup man
(coating, grouting, making of joints, sealing caulkiing, diapering including rubber basket joints, pointing);
Rotary scarifier, multiple head concrete chipper; Rock
slinger; Roto scraper & tiller; Sandblaster pot tender; Septic tank digger/installer; Tamper/wacker operator; Tank scaler & cleaner; Tar man & mortar man; Tree
climber/faller, chainb saw operator, Pittsburgh chipper & similar type brush shredders.
GROUP 3: Asphalt, installation of all frabrics; Buggy Mobile Man, Bushing hammer; Compactor (all types), Concrete Curer - Impervious membrane, Form Oiler, Concrete Cutting Torch, Concrete Pile Cutter,Driller/Jackhammer with drill steel 2 1/2 ft or longer, Dry Pak-it machine, Fence erector
including manual post hole digging, Gas oil or water
Pipeline Wrapper - 6 ft pipe and over, Guradrail erector, Hydro seeder, Impact Wrench man (multi plate),
kettleman-Potman Hot Mop includes applying Asphalt,
Lay-Kold, Creosote, lime caustic and similar types of
materials (dipping, brushing or handling) and
waterproofing. Laser Beam in connection with Laborer work.
High Scaler, Operators of Pneumatic Gas or Electric Tools, Vibrating Machines, Pavement Breakers, Air Blasting,
Come-Alongs and similar mechanical tools, Remote-Controlled Robotic Tools in connection with Laborers work. Pipelayer Backup Man (Coating, grouting,m makeing of joints, sealing, caulking, diapering including rubber gasket joints,
pointing and other services). Power Post Hole Digger,
Rotary Scarifier (multiple head concrete chipper
scarifier), Rock Slinger, Shot Blast equipment (8 to 48 inches), Steel Headerboard Man and Guideline Setter,
Tamper/Wacker operator and similar types, Trenching Machine hand propelled.
GROUP 4: Any worker exposed to raw sewage. Asphalt Raker, 6/12/24, 7:53 AM SAM.gov
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Luteman, Asphalt Dumpman, Asphalt Spreader Boxes, Concrete Core Cutter, Concrete Saw Man, Cribber, Shorer, Head Rock Slinger. Installation of subsurface instrumentation,
monitoring wells or points, remediation system installer; Laborer, asphalt-rubber distributor bootman; Oversize
concrete vibrator operators, 70 pounds or over. Pipelayer, Prfefabricated Manhole Installer, Sandblast Nozzleman
(Water Balsting-Porta Shot Blast), Traffic Lane Closure.
GROUP 5: Blasters Powderman-All work of loading holes,
placing and blasting of all powder and explosives of
whatever type, regardless of method used for such loading and placing; Horizontal directional driller, Boring system, Electronic traking, Driller: all power drills excluding jackhammer, whether core, diamond, wagon, track, multiple unit, and all other types of mechanical drills without
regard to form of motive power. Environmental remediation, Monitoring well, Toxic waste and Geotechnical driller,
Toxic waste removal. Welding in connection with Laborer's work.
---------------------------------------------------------------- LABO0300-005 08/01/2022
Rates Fringes
Asbestos Removal Laborer.........$ 39.23 23.28 SCOPE OF WORK: Includes site mobilization, initial site cleanup, site preparation, removal of asbestos-containing material and toxic waste, encapsulation, enclosure and
disposal of asbestos- containing materials and toxic waste by hand or with equipment or machinery; scaffolding,
fabrication of temporary wooden barriers and assembly of decontamination stations.
---------------------------------------------------------------- LABO0345-001 07/01/2022
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LABORER (GUNITE)
GROUP 1.....................$ 48.50 21.37
GROUP 2.....................$ 47.55 21.37
GROUP 3.....................$ 44.01 21.37
FOOTNOTE: GUNITE PREMIUM PAY: Workers working from a
Bosn'n's Chair or suspended from a rope or cable shall receive 40 cents per hour above the foregoing applicable classification rates. Workers doing gunite and/or
shotcrete work in a tunnel shall receive 35 cents per hour above the foregoing applicable classification rates, paid on a portal-to-portal basis. Any work performed on, in or above any smoke stack, silo, storage elevator or similar type of structure, when such structure is in excess of 75'-0"" above base level and which work must be performed in whole or in part more than 75'-0"" above base level, that work performed above the 75'-0"" level shall be compensated for at 35 cents per hour above the applicable
classification wage rate.
GUNITE LABORER CLASSIFICATIONS
GROUP 1: Rodmen, Nozzlemen
6/12/24, 7:53 AM SAM.gov
https://sam.gov/wage-determination/CA20230001/1 18/25
GROUP 2: Gunmen
GROUP 3: Reboundmen
---------------------------------------------------------------- LABO1184-001 07/01/2022
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Laborers: (HORIZONTAL
DIRECTIONAL DRILLING)
(1) Drilling Crew Laborer...$ 40.69 18.25
(2) Vehicle Operator/Hauler.$ 40.86 18.25
(3) Horizontal Directional
Drill Operator..............$ 42.71 18.25
(4) Electronic Tracking
Locator.....................$ 44.71 18.25
Laborers: (STRIPING/SLURRY
SEAL)
GROUP 1.....................$ 41.90 21.32
GROUP 2.....................$ 43.20 21.32
GROUP 3.....................$ 45.21 21.32
GROUP 4.....................$ 46.95 21.32
LABORERS - STRIPING CLASSIFICATIONS
GROUP 1: Protective coating, pavement sealing, including repair and filling of cracks by any method on any surface in parking lots, game courts and playgrounds; carstops; operation of all related machinery and equipment; equipment repair technician
GROUP 2: Traffic surface abrasive blaster; pot tender - removal of all traffic lines and markings by any method (sandblasting, waterblasting, grinding, etc.) and
preparation of surface for coatings. Traffic control
person: controlling and directing traffic through both
conventional and moving lane closures; operation of all related machinery and equipment
GROUP 3: Traffic delineating device applicator: Layout and application of pavement markers, delineating signs, rumble and traffic bars, adhesives, guide markers, other traffic delineating devices including traffic control. This
category includes all traffic related surface preparation (sandblasting, waterblasting, grinding) as part of the
application process. Traffic protective delineating system installer: removes, relocates, installs, permanently
affixed roadside and parking delineation barricades,
fencing, cable anchor, guard rail, reference signs,
monument markers; operation of all related machinery and equipment; power broom sweeper
GROUP 4: Striper: layout and application of traffic stripes and markings; hot thermo plastic; tape traffic stripes and markings, including traffic control; operation of all
related machinery and equipment
---------------------------------------------------------------- LABO1414-003 08/03/2022
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LABORER
PLASTER CLEAN-UP LABORER....$ 38.92 23.32
6/12/24, 7:53 AM SAM.gov
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PLASTER TENDER..............$ 41.47 23.32
Work on a swing stage scaffold: $1.00 per hour additional.
Work at Military Bases - $3.00 additional per hour:
Coronado Naval Amphibious Base, Fort Irwin, Marine Corps Air Station-29 Palms, Imperial Beach Naval Air Station, Marine Corps Logistics Supply Base, Marine Corps Pickle Meadows, Mountain Warfare Training Center, Naval Air
Facility-Seeley, North Island Naval Air Station, Vandenberg AFB.
---------------------------------------------------------------- PAIN0036-001 07/01/2020
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Painters: (Including Lead
Abatement)
(1) Repaint (excludes San
Diego County)...............$ 29.59 17.12
(2) All Other Work..........$ 33.12 17.24
REPAINT of any previously painted structure. Exceptions:
work involving the aerospace industry, breweries,
commercial recreational facilities, hotels which operate commercial establishments as part of hotel service, and sports facilities.
---------------------------------------------------------------- PAIN0036-010 09/01/2022
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DRYWALL FINISHER/TAPER
(1) Building & Heavy
Construction................$ 39.54 21.50
(2) Residential
Construction (Wood frame
apartments, single family
homes and multi-duplexes
up to and including four
stories)....................$ 32.27 14.70
---------------------------------------------------------------- PAIN0036-012 10/01/2022
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GLAZIER..........................$ 47.90 20.71 ---------------------------------------------------------------- PAIN0036-019 06/01/2022
Rates Fringes
SOFT FLOOR LAYER.................$ 34.77 17.89 ---------------------------------------------------------------- PLAS0200-005 08/03/2022
Rates Fringes
PLASTERER........................$ 47.37 19.64
NORTH ISLAND NAVAL AIR STATION, COLORADO NAVAL AMPHIBIOUS BASE, IMPERIAL BEACH NAVAL AIR STATION: $3.00 additional per hour.
6/12/24, 7:53 AM SAM.gov
https://sam.gov/wage-determination/CA20230001/1 20/25
---------------------------------------------------------------- PLAS0500-001 07/01/2018
Rates Fringes
CEMENT MASON/CONCRETE FINISHER
GROUP 1.....................$ 26.34 19.77
GROUP 2.....................$ 27.99 19.77
GROUP 3.....................$ 30.07 21.12
CEMENT MASONS - work inside the building line, meeting the following criteria:
GROUP 1: Residential wood frame project of any size; work classified as Type III, IV or Type V construction;
interior tenant improvement work regardless the size of the project; any wood frame project of four stories or less.
GROUP 2: Work classified as type I and II construction
GROUP 3: All other work
---------------------------------------------------------------- PLUM0016-006 09/01/2022
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PLUMBER, PIPEFITTER,
STEAMFITTER
Camp Pendleton; Vandenberg
Air Force Base..............$ 59.68 26.26
Work ONLY on new additions
and remodeling of
commercial buildings,
bars, restaurants, and
stores not to exceed 5,000
sq. ft. of floor space......$ 53.51 25.28
Work ONLY on strip malls,
light commercial, tenant
improvement and remodel
work........................$ 40.95 23.61
All other work except work
on new additions and
remodeling of bars,
restaurant, stores and
commercial buildings not
to exceed 5,000 sq. ft. of
floor space and work on
strip malls, light
commercial, tenant
improvement and remodel
work........................$ 55.18 26.26
---------------------------------------------------------------- PLUM0016-011 09/01/2022
Rates Fringes
PLUMBER/PIPEFITTER
Residential.................$ 43.66 22.18
---------------------------------------------------------------- PLUM0345-001 09/01/2022
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6/12/24, 7:53 AM SAM.gov
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PLUMBER
Landscape/Irrigation Fitter.$ 38.20 25.65
Sewer & Storm Drain Work....$ 42.29 23.03
---------------------------------------------------------------- ROOF0045-001 07/01/2022
Rates Fringes
ROOFER...........................$ 39.90 11.19 ---------------------------------------------------------------- * SFCA0669-001 01/01/2023
Rates Fringes
SPRINKLER FITTER.................$ 44.99 25.72 ---------------------------------------------------------------- SHEE0206-001 07/01/2020
Rates Fringes
SHEET METAL WORKER
Camp Pendleton..............$ 42.62 29.55
Except Camp Pendleton.......$ 40.62 29.55
Sheet Metal Technician......$ 30.51 9.49
SHEET METAL TECHNICIAN - SCOPE:
a. Existing residential buildings, both single and
multi-family, where each unit is heated and/or cooled by a separate system b. New single family residential buildings including tracts. c. New multi-family residential buildings, not exceeding five stories of living space in height, provided each unit is heated or cooled by a separate system. Hotels and motels are excluded. d. LIGHT COMMERCIAL WORK: Any sheet metal, heating and air conditioning work performed on a project where the total construction cost, excluding land, is under $1,000,000 e. TENANT IMPROVEMENT WORK: Any work necessary to finish interior spaces to conform to the occupants of
commercial buildings, after completion of the building shell ---------------------------------------------------------------- TEAM0166-001 07/01/2022
Rates Fringes
Truck drivers:
GROUP 1.....................$ 28.15 24.82
GROUP 2.....................$ 38.74 24.82
GROUP 3.....................$ 38.94 24.82
GROUP 4.....................$ 39.14 24.82
GROUP 5.....................$ 39.34 24.82
GROUP 6.....................$ 39.83 24.82
GROUP 7.....................$ 41.34 24.82
FOOTNOTE: HAZMAT PAY: Work on a hazmat job, where hazmat certification is required, shall be paid, in addition to the classification working in, as follows: Levels A, B and C - +$1.00 per hour. Workers shall be paid hazmat pay in increments of four (4) and eight (8) hours.
TRUCK DRIVER CLASSIFICATIONS
GROUP 1: Fuel Man, Swamper
6/12/24, 7:53 AM SAM.gov
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GROUP 2: 2-axle Dump Truck, 2-axle Flat Bed,Concrete Pumping Truck, Industrial Lift Truck, Motorized Traffic Control, Pickup Truck on Jobsite
GROUP 3: 2-axle Water Truck, 3-axle Dump Truck, 3-axle Flat Bed, Erosion Control Nozzleman, Dump Crete Truck under 6.5 yd, Forklift 15,000 lbs and over, Prell Truck, Pipeline Work Truck Driver, Road Oil Spreader, Cement Distributor or Slurry Driver, Bootman, Ross Carrier
GROUP 4: Off-road Dump Truck under 35 tons 4-axles but less than 7-axles, Low-Bed Truck & Trailer, Transit Mix Trucks under 8 yd, 3-axle Water Truck, Erosion Control Driver, Grout Mixer Truck, Dump Crete 6.5yd and over, Dumpster
Trucks, DW 10, DW 20 and over, Fuel Truck and Dynamite, Truck Greaser, Truck Mounted Mobile Sweeper 2-axle Winch Truck
GROUP 5: Off-road Dump Truck 35 tons and over, 7-axles or more, Transit Mix Trucks 8 yd and over, A-Frame Truck,
Swedish Cranes
GROUP 6: Off-Road Special Equipment (including but not limited to Water Pull Tankers, Athey Wagons, DJB, B70
Wuclids or like Equipment)
GROUP 7: Repairman
---------------------------------------------------------------- WELDERS - Receive rate prescribed for craft performing
operation to which welding is incidental.
================================================================ Note: Executive Order (EO) 13706, Establishing Paid Sick Leave for Federal Contractors applies to all contracts subject to the Davis-Bacon Act for which the contract is awarded (and any solicitation was issued) on or after January 1, 2017. If this contract is covered by the EO, the contractor must provide employees with 1 hour of paid sick leave for every 30 hours they work, up to 56 hours of paid sick leave each year.
Employees must be permitted to use paid sick leave for their own illness, injury or other health-related needs, including preventive care; to assist a family member (or person who is like family to the employee) who is ill, injured, or has other health-related needs, including preventive care; or for reasons resulting from, or to assist a family member (or person who is like family to the employee) who is a victim of, domestic violence, sexual assault, or stalking. Additional information on contractor requirements and worker protections under the EO is available at
https://www.dol.gov/agencies/whd/government-contracts.
Unlisted classifications needed for work not included within the scope of the classifications listed may be added after award only as provided in the labor standards contract clauses (29CFR 5.5 (a) (1) (ii)).
---------------------------------------------------------------- The body of each wage determination lists the classification and wage rates that have been found to be prevailing for the 6/12/24, 7:53 AM SAM.gov
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cited type(s) of construction in the area covered by the wage determination. The classifications are listed in alphabetical order of ""identifiers"" that indicate whether the particular rate is a union rate (current union negotiated rate for local), a survey rate (weighted average rate) or a union average rate (weighted union average rate).
Union Rate Identifiers
A four letter classification abbreviation identifier enclosed in dotted lines beginning with characters other than ""SU"" or ""UAVG"" denotes that the union classification and rate were prevailing for that classification in the survey. Example:
PLUM0198-005 07/01/2014. PLUM is an abbreviation identifier of the union which prevailed in the survey for this
classification, which in this example would be Plumbers. 0198 indicates the local union number or district council number where applicable, i.e., Plumbers Local 0198. The next number, 005 in the example, is an internal number used in processing the wage determination. 07/01/2014 is the effective date of the most current negotiated rate, which in this example is July 1, 2014.
Union prevailing wage rates are updated to reflect all rate changes in the collective bargaining agreement (CBA) governing this classification and rate.
Survey Rate Identifiers
Classifications listed under the ""SU"" identifier indicate that no one rate prevailed for this classification in the survey and the published rate is derived by computing a weighted average rate based on all the rates reported in the survey for that classification. As this weighted average rate includes all rates reported in the survey, it may include both union and non-union rates. Example: SULA2012-007 5/13/2014. SU indicates the rates are survey rates based on a weighted average
calculation of rates and are not majority rates. LA indicates the State of Louisiana. 2012 is the year of survey on which these classifications and rates are based. The next number, 007 in the example, is an internal number used in producing the wage determination. 5/13/2014 indicates the survey completion date for the classifications and rates under that identifier.
Survey wage rates are not updated and remain in effect until a new survey is conducted.
Union Average Rate Identifiers
Classification(s) listed under the UAVG identifier indicate that no single majority rate prevailed for those
classifications; however, 100% of the data reported for the classifications was union data. EXAMPLE: UAVG-OH-0010
08/29/2014. UAVG indicates that the rate is a weighted union average rate. OH indicates the state. The next number, 0010 in the example, is an internal number used in producing the wage determination. 08/29/2014 indicates the survey completion date for the classifications and rates under that identifier.
A UAVG rate will be updated once a year, usually in January of each year, to reflect a weighted average of the current negotiated/CBA rate of the union locals from which the rate is based.
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----------------------------------------------------------------
WAGE DETERMINATION APPEALS PROCESS
1.) Has there been an initial decision in the matter? This can be:
* an existing published wage determination
* a survey underlying a wage determination
* a Wage and Hour Division letter setting forth a position on a wage determination matter
* a conformance (additional classification and rate) ruling On survey related matters, initial contact, including requests for summaries of surveys, should be with the Wage and Hour National Office because National Office has responsibility for the Davis-Bacon survey program. If the response from this initial contact is not satisfactory, then the process described in 2.) and 3.) should be followed.
With regard to any other matter not yet ripe for the formal process described here, initial contact should be with the Branch of Construction Wage Determinations. Write to:
Branch of Construction Wage Determinations
Wage and Hour Division
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
2.) If the answer to the question in 1.) is yes, then an interested party (those affected by the action) can request review and reconsideration from the Wage and Hour Administrator (See 29 CFR Part 1.8 and 29 CFR Part 7). Write to:
Wage and Hour Administrator
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
The request should be accompanied by a full statement of the interested party's position and by any information (wage payment data, project description, area practice material, etc.) that the requestor considers relevant to the issue.
3.) If the decision of the Administrator is not favorable, an interested party may appeal directly to the Administrative Review Board (formerly the Wage Appeals Board). Write to:
Administrative Review Board
U.S. Department of Labor
200 Constitution Avenue, N.W.
Washington, DC 20210
4.) All decisions by the Administrative Review Board are final. ================================================================ END OF GENERAL DECISIO"
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NOTICE OF EXEMPTION
To: ______ County Clerk, County of Los Angeles ______ Office of Planning and Research 12400 East Imperial Highway, Room 2001 1400 Tenth Street, Room 121 Norwalk, CA 90650 Sacramento, California 95814
Fr
om: City of Montebello
1600 W. Beverly Boulevard
Montebello, CA 90640
Pr
oject Title/File No.: Highway Safety Improvement Program Cycle 7 Capital Project 851 – Federal Project No. HSIPL-5247(024);
Pr
oject Applicant: City of Montebello
Pr
oject Location: Project is located in the public right of way and involves the following intersection:
Via Campo and Findlay Avenue, Garfield Avenue and Whittier Boulevard, and Garfield Avenue and Via Campo.
Pr
oject Description: Enhancements include American with Disabilities (ADA) pedestrian ramp improvements and traffic signal upgrades.
Na
me of approving public agency: City of Montebello
Pr
oject Sponsor: City of Montebello Public Works Department Ex
empt Status:
__ Ministerial (Sec. 21080 (b)(1); 15268);
__ Declared Emergency (Sec. 21080 (b)(3); 15269(a));
__ Emergency Project (Sec 21080 (b)(4); 15263 (b)(c));
_X Categorical Exemption. State type and section number: 15301 Class 1, Existing Facilities __ Statutory Exemptions. State code number:_____________________________ __ other:
Reas
on(s) why Project is exempt: The project is categorically exempt under Class 1 Existing Facilities Section 15301 of the California Environmental Quality Act due to the fact that the proposed improvements will be performed on existing City streets. Project will not pose any negative impacts to the surrounding area or the environment.
Le
ad Agency/Contact Person: Cesar Roldan Telephone Number: (323) 887-1462 Si
gnature: __________________________ Date: 6/26/2024 Title: Director of Public Works Da
te received for filing and posting: _______________
ATTACHMENT D
ITEM # 22
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: Cesar Roldan, Director
SUBJECT: APPROVE LETTER OF ENGAGEMENT TO MASTER RETAINER AGREEMENT NO. 3999 WITH MARK THOMAS AND COMPANY FOR
DESIGN OF THE DOWNTOWN SEWER INFRASTRUCTURE
IMPROVEMENT PROJECT NO. C-06-8701-110
DATE: June 26, 2024
RECOMMENDATION(S):
It is recommended that the City Council
1. Approve a Letter of Engagement to Master Retainer Agreement No. 3999 between the City of Montebello and Mark Thomas and Company (Consultant) for the design of the Downtown Sewer Infrastructure Improvement Project No. C-06-8701-110 for a not-to-exceed amount of $518,907 payable from Measure M and Measure R fund reserves; and
2. Amend the Fiscal Year 2024-25 Capital Improvement Program (CIP) budget by increasing appropriations by $118,907 in Account No. 222-30-330-6040.96 (Measure M, Public Works, Engineering, Contract Services Engineering Design Service) and $400,000 in Account No. 220-30-330-6040.96 (Measure R, Public Works, Engineering, Contract Services Engineering Design Service) and
3. Authorize the City Manager to execute the Letter of Engagement.
BACKGROUND/DISCUSSION:
The project consists of the design of approximately 5,098 linear feet of cement sewer pipeline with new vitrified clay pipe along Whittier Boulevard between Montebello Boulevard and the Rio Hondo Channel, including the alleys north and south of Whittier Boulevard. The City’s bench list consultant is highly qualified and provides engineering design services for the sewer infrastructure project, generally located in the in the alleys
CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 26, 2024
north and south of Whittier Boulevard from Montebello Boulevard to Bluff Road. Palm Place, near Spruce Avenue, is also included.
Staff shall seek City Council approval to authorize the design and subsequently solicit construction bids. The following is a tentative timeline of specific events:
Tasks Timeline
Commence Design July 2024
Complete Design February 2025
City Council authorization to solicit bids for construction March 2025 Open Construction Bids May 2025
City Council award construction contract June 2025
Commence Construction July 2025
Complete Construction January 2026
ENVIRONMENTAL:
N/A
ANALYSIS:
N/A
SUMMARY:
Upon approval of this request, staff will continue coordinating with Mark Thomas to commence and complete the task order. A budget adjustment is needed to amend the FY 2024-25 Capital Improvement Program (CIP) budget by increasing appropriations by $118,907 in Account No. 222-30-330-6040.96 (Measure M, Public Works, Engineering, Contract Services Engineering Design Service) and $400,000 in Account No. 220-30- 330-6040.96 (Measure R, Public Works, Engineering, Contract Services Engineering Design Service).
ATTACHMENT(S)
1. Attachment A- Letter of Engagement
ENGAGEMENT LETTER
FOR
CONSULTANT SERVICES
PRO
JECT/SERVICES: Montebello Downtown Sewer Infrastructure Project MASTER RETAINER AGREEMENT NO. 3999
TASK NO. 15
The p
urpose of this Engagement Letter is to allow the City of Montebello (the “City”) to engage Mark Thomas (the “Consultant”) to provide Engineering Services for the Sewer Infrastructure Project located in the alleys north and south of Whittier Boulevard from Montebello Boulevard to Bluff Road, Palm Place, near Spruce Avenue, is also included (the “Services” or “Project”) pursuant to those terms and conditions outlined in the draft Master Retainer Agreement (Agreement No. 3999) approved by the City Council on June 22, 2022, in the manner set forth in Exhibit A, “Scope of Services” of this Engagement Letter.
The S
cope of Services to be completed pursuant to this Engagement Letter is set forth in Exhibit A, attached hereto. The cost for performing the services under this Engagement Letter shall be billed hourly for a total not-to-exceed fee of Five Hundred and Eighteen Thousand Nine Hundred and Seven ($518,907), without prior written approval by the City. The charges and hourly rates shall not exceed those stated and in effect when the draft Master Retainer Agreement was approved on June 22, 2022 and as stated in the fee schedule attached hereto as Exhibit B.
Cons
ultant acknowledges and agrees that the personnel assigned to this Project, as set forth in Exhibit A shall not be substituted unless prior written authorization is given by the City’s Director of Public Works (the “Director”). Pursuant to Government C ode 87300, et seq., Consultant has provided (for submittal to the City Clerk), a California Fair Political Practices Commission Statement of Economic Interest- Form 700 for each of each of its staff assigned to the Project.
By
signing and returning this Engagement Letter, the authorized agent of the Consultant agrees to the provisions stated herein. The engagement of the Consultant for the services stated herein shall occur upon the execution of this letter by the Consultant and the Director pending issuance of a “Notice to Proceed.”
ATTACHMENT A
TH
E CITY OF MONTEBELLO MARK THOMAS
(the “City”) (the “Consultant”)
B
y: _________________________ By: _________________________ Raul Alvarez, City Manager Pat Somerville, Project Manager AT
TACHMENTS:
1. E
xhibit A – Scope of Services
2. Exhibit B – Fee Schedule
May 26, 2024
Rita Montalvo, PE
Assistant Public Works Director
City of Montebello
1600 W Beverly Boulevard
Montebello, CA 90640
RE: Montebello Downtown Sewer Infrastructure Project
Dear Rita:
We are pleased to submit our scope of services and fee proposal to provide engineering services for the sewer infrastructure project, generally located in the in the alleys north and south of Whittier Boulevard from Montebello Boulevard to Bluff Road. Palm Place, near Spruce Avenue, is also included. Limits are highlighted in yellow below.
The goal of the project is to upgrade the deteriorating 100 year-old concrete sewer mains in these limits. Our team will review existing and potential land uses and review whether upsizing of the pipes should be considered. Additionally, we discuss proposed pipe materials, including VCP, PVC and HDPE, and comparing the benefits of installation methods, speed of construction and cost benefits.
Exhibit A
PAGE 2 OF 8
Mark Thomas will develop a strategy to replace and upgrade these sewer mains, which will be challenging due to their primary location being in alleys. Strategies may include:
• Installing new sewer main in a parallel alignment, particularly within street segments, to minimize overall impact to the sewer system, particularly in flow diversion. • Replacing sewer main in place due to lack of space with adjacent utilities located within alleys. This requires more coordination and need for sewer diversion. • Consider pipe bursting methods to replace the pipes in place without trenching. Pipes can be upsized as necessary. This method will be required through the Chevrolet dealership, if the sewer main still exists under their parking structure. We have successfully executed this on projects in Santa Ana and Fullerton and believe this is a strong candidate project for its use to minimize overall disruption to the properties bordering the alleys.
Trenching within the alleys will require surface restoration plans, including elevations for the longitudinal gutter that would be replaced. We also recommend in the street segments, typically between the alley and Whittier Boulevard, that pavement reconstruction also occur due to the existing pavement conditions, as shown in the image below on 6 th Street.
Following are the scope of services, schedule and budget for your consideration and comment.
Our team is ready to commence work immediately to support the City and your community on this important infrastructure project.
PAGE 3 OF 8
Scope of Work
1. Management and Coordination
1.1 Project Management & Administration
We will perform overall project management and administration, including our subconsultant team. The tasks will include documentation, budget tracking, scheduling, project task tracking, etc. to help the project stay on track.
1.2 Meetings
A kickoff meeting will be held with the appropriate team members to establish the key contacts, design directives protocol, discuss issues, confirm objectives and schedule of deliverables.
1.3 Agency Coordination
Coordination will be provided with adjacent agencies, particularly the County of Los Angeles Sanitation District who owns the sewer mains and manholes in Whittier Boulevard.
1.4 Utility Coordination
We will verify all utility owners and contacts within the project limits using Underground Search Alert. We will generate Introductory Letters/Records Requests, Utility Letter A, on City letterhead and request utility as-builts. Follow-ups with each utility owners will occur to verify the existence of any utilities and to secure available records and as-built information. We will prepare a utility base map by adding the verified utilities from the records and as-builts.
We will prepare and send Utility B and C letters to utility owners. Utility B letter will be the Relocation Claim Letter with Utility Conflict Sheets after the 35% submittal. Utility C letter will be the Notice to Owners Letters after the 90% submittal to appropriate utility owners.
Coordination will include preparation of a Utility Matrix that will capture all utility owner contact information and document correspondence/communication with utility owners throughout the project duration.
2. Research and Field Investigations
2.1 Background and Field Revie
w
Si
te Investigation
We will field walk site and inventory existing conditions, severe distress and deteriorated asphalt concrete areas, visible utility, topography, drainage, and other notable features to consider in the design. Additionally, We will generate field notes and photograph log of the field walk.
Research and Obtain Record Maps and As-builts
We will obtain available research, record drawings, assessor parcel maps from the City, County and County Sanitation District.
PAGE 4 OF 8
2.2 Project Survey
Establish Survey Control
Field crews will utilize both GPS and conventional survey methods to establish survey control along the subject streets and alleys for use in performing the tasks below. Survey control, field located features and monuments will be tied to California Coordinate System, Zone V NAD 83 State Plane Coordinates. Elevations are based on the North American Vertical Datum of 1988 (NAVD88) tied to LA County benchmarks in the area.
Aerial Mapping
Mark Thomas will set and control eight (8) aerial targets per the flight layout shown in Figure 2 below. The site will be flown an photogrammetric mapping will be compiled to 40-scale mapping specifications with contours on a 1-foot interval. Mapping will be provided in CAD format with a DTM of the surface. A digital orthophoto will also be provided
.
D
esign Surveys
Field crews will mobilize to the site to perform limited design surveys along the streets and alley ways shown in Figure 1. The existing surface and street features will be generated from the aerial mapping produced in Task 2 above and will not be field surveyed.
Supplemental features will be field surveyed to include:
• Detail of proposed ADA ramps at alley intersections with cross-streets • Flowline of alley ribbon gutters at 25-ft intervals
• Surface visible indications of utilities (paint marks, trench scars, valves, vaults, transformers, risers, power poles, etc.).
Once the fieldwork is complete, office surveyors will reduce, adjust and process the field data into a CAD drawing. The field data will be integrated into the aerial mapping DTM file and delivered as one surface.
Record Centerlines and Rights of Way
Mark Thomas will perform research at the City and LA County to obtain available record mapping showing street and alley centerlines and rights of way. Field crews will locate a sufficient number of monuments to plot centerlines and rights of way from record information. Right of Way lines will be reviewed against Assessor Parcel Maps and compared to existing improvements. This proposal does not include a comprehensive survey or establishment of centerlines or rights of way within the project limits. The data will only be used as a backdrop and stationing reference on the plans. No right of way acquisition or property line determinations are included.
Dip Manholes
Mark Thomas field crews will remove accessible sewer manhole covers and measure “dip” invert elevations entering and exiting each manhole. A photo and sketch will be provided, together with the data included in the CAD deliverable below. Information to be provided includes inverts in and out of the manhole, pipe size (estimated) and direction. This proposal includes up to 36 manhole structures to be dipped.
PAGE 5 OF 8
2.3 Geotechnical Investigations
Five 12-foot deep borings will be performed to support the City’s sewer replacement program at the locations shown below. The boreholes will be excavated using a truck- mounted or track-mounted drilling rig. Existing pavement thickness from the borings will be measured, where applicable. Asphalt concrete cold-patch will be used to replace asphalt that is removed by excavations, and quick-set cement will be used to replace concrete that is removed by excavations.
As borings are within alleys or on side streets, it is assumed that site-specific traffic control plans are not required, and WATCHBOOK will be sufficient for traffic control plans.
Field personnel will collect soil samples for laboratory testing, including bulk samples of near-surface soils and small disturbed and relatively undisturbed ring samples of deeper soils. The small disturbed and relatively undisturbed soil samples will be collected using split-spoon samplers at a vertical interval of about 5 feet, alternating between the Standard Penetration Test (SPT) sampler and the Modified California Drive (MCD) sampler. Samples of subsurface soils will be logged during the field investigation, secured in their containers or collected in plastic bags, and transported to the laboratory.
Soil laboratory tests will be conducted in general accordance with American Society for Testing and Materials (ASTM) standards or California Test methods. Anticipated laboratory tests include: #200 wash, Atterberg Limits, direct shear, UU triaxial, compaction, and R- value (B-1 and B-4).
PAGE 6 OF 8
A Technical Memorandum will provide the results of the field investigation and lab testing, pavement structural sections for locations near borings B-1 and B-4 (Traffic Index will be provided by the City), recommendations for trenching and backfill.
2.4 CCTV Review
Subconsultant, BESS, will perform CCTV camera inspection services to locate and determine the depths of the existing sewer within the investigation area. BESS utilizes NASSCO, PACP, LACP and MACP certified operators to perform the inspection and POSM software to code and submit logs and videos of all inspections. This service can be performed where conventional locating methods fail to determine the information. In the event that a main line cannot be traversed due to a blockage or excess water, jetting and/or cleaning may be required. CCTV log will identify all sewer lateral locations.
2.5 Potholing
Subconsultant, BESS, will perform utility investigation services using industry acceptable methods (i.e., electronic pipe and cable locating equipment, Ground Penetrating Radar (GPR), Pipeline Current Mapper (PCM), etc.) to determine the approximate horizontal position and count of existing utilities within the areas designated by Mark Thomas. BESS field crews will use a combination of water-based paint and pin flags (in the appropriate APWA color) to mark the results of our investigation on the ground surface. BESS will compare any available utility record information with the results of field investigation services to ensure all utilities have been accounted for. Utilities not identifiable by BESS field crews due to lack of utility record information or above ground appurtenances will be marked with pink paint on the ground surface and annotated as “Unknown” on project deliverables.
Utility potholes will be performed using air-vacuum excavation at predetermined locations to document the precise horizontal and vertical position of existing utilities within the investigation area. Data collected as a result of potholing activities will be presented in a Portable Document Format (PDF) report that will include: utility type, size, material, depth and pictures of the exposed utility. Pothole locations (in the field) will be marked with wooden lath and ribbon marked with the pothole number, utility size and depth or MAG nail with pertinent utility data annotated on the ground surface. Once the utility data has been collected the pothole will be restored to its previous condition using native backfill and the appropriate surface restoration materials.
Prior to potholing, sites will be marked with white paint the pothole locations as required by the USA service alert and request an excavation ticket. It is assumed that 20 potholes will be conducted.
2.6 Conceptual Strategies
Based on the utility investigation and field survey, an overall sewer replacement strategy will be developed that is expected to use multiple methods of pipe replacement. Rough order of magnitude costs will be included based on overall pipe length to be replaced. In addition, alley and street reconstruction will be identified. Mark Thomas will provide
PAGE 7 OF 8
qualitative recommendations on sewer upgrades based upon sewer network, locations of potential land use change and size of downstream receiving sewer mains. Flow monitoring or modeling is not included. With approval of the strategy, the project will move into final design.
3. PS&E Development
3.1 Project Plans (65%, 90%, Final Submittals)
Project plans will be prepared for the sewer replacement and street/alley reconstruction through the project limits. Totals include 26 manholes to be replaced or modified, 4 of which are County Sanitation District owned and over 6,000 linear feet of sewer main to be replaced.
Pavement restoration plans will be provided that will include the trench replacement limits as well as cold mill and overlay or pavement reconstruction based upon field observations of pavement conditions. Alleys will be shown in plan view only at 20 scale, streets will be at either 20 scale or 40 scale depending on location. Alley plan will have flowline elevation callouts at 25’ intervals on the longitudinal gutter to ensure replacement matches existing conditions. Profiles are not included.
We will develop the following improvement plans, estimated at a total of 26 sheets:
• Title Sheet (1)
• General Notes (1)
• Typical Sections & Construction Notes (2 )
• S ewer Replacement Plan and Profile (9) – 1”=40’ H / 1”=4’ V • Sewer Manhole Detail Sheets (3) – 1”=2’
• Alley Pavement Restoration Plans (6) – 1”=20’
• Street Pavement Plans (3) – 1”=40’
• Miscellaneous Details (1) – Scale as needed
3.2 Specifications
We will prepare specifications packages using the latest APWA Greenbook Specifications and consistent with current City format. We anticipate the City will provide the boilerplate contract documents to be included in the specifications package. We will work with the City on assembling the entire contract document package.
3.3 Quantities & Estimates
Quantities will be generated using Bluebeam on a sheet-by-sheet basis. A cost estimate will be prepared to provide an engineer’s estimate as a basis for the design. The estimate will show quantities and unit prices for each work item along with appropriate mobilization and contingency costs. We will research the latest unit prices available and consult with the City on specific prices and use our own information from other recent bids as available to ensure the unit prices are current.
PAGE 8 OF 8
4. Bid and Construction Support
4.1 Bidding Support
We will provide assistance, as required, to the City during bidding of the project. The work may include answering questions from prospective bidders (up to 5), assisting the City in the preparation of addenda to the PS&E during the advertisement period (up to 1), providing consultation and interpretation of the construction documents.
4.2 Construction Support
We will provide assistance, as required, to the City during construction of the project. The work may include reviewing cost proposal from contractors and making recommendations, review construction materials submittals (up to 5), conducting job walk (up to 1 day), and responding to RFIs (up to 5). We will prepare as-built plans to show the changes made to the construction plans during construction.
Schedule
Work will be completed in an estimated 7 months from Notice to Proceed, including 3-week City review periods at the 65%, 90% and 100% milestone submittals. Our staff is ready to start work immediately.
Budget
We have prepared a fee estimate for these services, as detailed on the attached form. The total estimated cost is $518,907. Approximately $80,000 of this budget is targeted to the survey and pavement restoration for the alleys and streets that are impacted by this project. With the conditions of the alleys and streets, this is a prudent approach to finish with newly paved surfaces for your community.
Should you have any questions or concerns, please do not hesitate to contact me at (714) 815-5222 or through email at [email protected].
Sincerely,
MARK THOMAS
Pat Somerville, PE
Project Manager
Sr. Engineering Manager
Sr. Technical Engineer
Design Engineer I
Survey Division Manager
Project Surveyor II
Asst Surveyor III
Asst Surveyor II
2-Person Crew (OE12)*
Sr. Project Accountant
Sr. Project Coordinator
BESS
Earth Mechanics
Aerial Photogrammetry
Sub Mark-
Up
$380 $186 $115 $318 $192 $151 $136 $379 $146 $145 5%
1.0 Management and Coordination
1.1 Project Management & Administration 28 32 16 32 108 $23,568 - - - $0 $23,568
1.2 Meetings 4 12 12 28 $5,132 - - - $0 $5,132
1.3 Agency Coordination 2 12 8 22 $3,912 - - - $0 $3,912
1.4 Utility Coordination 2 16 80 98 $12,936 - - - $0 $12,936 Subtotal Phase 1 36 72 100 0 0 0 0 0 16 32 256 $45,548 $0 $0 $0 $0 $45,548
2.0 Research and Field Investigations
2.1 Background and Field Review 4 12 24 40 $6,512 - - - $0 $6,512
2.2 Project Survey 0 $0 - - - $0 $0
Establish Survey Control 2 4 16 8 24 54 $15,020 - - - $0 $15,020 Set 8 Aerial Targets & Aerial Mapping 2 4 2 8 16 $4,474 - 6,000 $300 $10,774 Design Surveys 2 24 24 80 32 80 242 $59,364 - - - $0 $59,364 Record CL & R/W 2 8 16 40 16 24 106 $23,300 - - - $0 $23,300 Dip Manholes (36 MH's @ 12/day) 2 2 4 12 24 44 $12,504 - - - $0 $12,504
2.3 Geotechnical Investigations 2 2 $372 - 29,993 - $1,500 $31,865
2.4 CCTV Review 2 4 16 22 $3,344 24,000 - - $1,200 $28,544
2.5 Potholing 4 8 12 $1,664 26,000 - - $1,300 $28,964
2.6 Conceptual Strategies & Recommendations 8 24 40 72 $12,104 - - - $0 $12,104 Subtotal Phase 2 14 56 88 38 64 130 60 160 0 0 610 $138,658 $50,000 $29,993 $6,000 $4,300 $228,951
3.0 PS&E Development
3.1 Plan Preparation 0 $0 - - - $0 $0
Title Sheet (1) 6 32 38 $4,796 - - - $0 $4,796
General Notes (1) 6 32 38 $4,796 - - - $0 $4,796
Typical Sections & Construction Notes (2) 4 16 80 100 $13,696 - - - $0 $13,696 Sewer Replacement Plan & Profile (9) 24 144 400 568 $81,904 - - - $0 $81,904 Sewer Manhole Details (3) 6 24 120 150 $20,544 - - - $0 $20,544 Alley Gutter & Paving Plan (6) 12 60 240 312 $43,320 - - - $0 $43,320 Street Pavement Reconstruction Plans (3) 6 32 120 158 $22,032 - - - $0 $22,032 Miscellaneous Details (1) 8 40 48 $6,088 - - - $0 $6,088
3.2 Specifications 8 60 68 $14,200 - - - $0 $14,200
3.3 Quantites & Estimates 8 40 60 108 $17,380 - - - $0 $17,380 Subtotal Phase 3 68 396 1124 0 0 0 0 0 0 0 1588 $228,756 $0 $0 $0 $0 $228,756
4.0 Bidding and Construction Support
4.1 Bidding Support 2 8 12 22 $3,628 - - - $0 $3,628
4.2 Construction Support 4 24 36 64 $10,124 - - - $0 $10,124 Subtotal Phase 4 6 32 48 0 0 0 0 0 0 0 86 $13,752 $0 $0 $0 $0 $13,752 TOTAL HOURS 124 556 1360 38 64 130 60 160 16 32 2540
OTHER DIRECT COSTS $1,900 $0 $0 $0 $1,900
TOTAL COST $47,120 $103,416 $156,400 $12,084 $12,288 $19,630 $8,160 $60,640 $2,336 $4,640 $428,614 $50,000 $29,993 $6,000 $4,300 $518,907 COST PROPOSAL FOR PROJECT SCOPE: Montebello - Downtown Sewer Replacement Fee Estimate
TOTAL COST
Subconsultants
Total
Hours
Total MT
Cost
Please note that the rates shown are for estimating purposes only.
See rate schedule for actual rates/ranges. 5/29/2024
Exhibit B
ITEM # 23
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: Cesar Roldan, Director
SUBJECT: ADOPT RESOLUTION NO. 24-45 APPOINTING A MEMBER AND
ALTERNATE(S) TO THE GOVERNING BOARD OF THE LOS ANGELES
GATEWAY REGION INTEGRATED REGIONAL WATER
MANAGEMENT JOINT POWERS AUTHORITY
DATE: June 26, 2024
RECOMMENDATION(S):
It is recommended that the City Council:
1. Approve Resolution No. 24-45 appointing one primary board member and two alternate board members representing the City of Montebello on the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority; and,
2. Take such additional, related action that may be desirable.
BACKGROUND/DISCUSSION:
The City of Montebello joined the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority (GWMA) on June 26, 2023. Staff approached City Council on May 8, 2024 to appoint Cesar Roldan, Public Works Director, as the primary board member and Rita Montalvo, Assistant Public Works Director, as the alternate board member. Rita Montalvo recently resigned from her position as the Assistant Public Works Director. As a result, Staff recommends that the City Council appoint one primary board member and up to three alternates to represent the City of Montebello on the Board of the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority.
In accordance to GWMA’s Bylaws adopted on October 12, 2015, all non-Legislative Body
CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 26, 2024
appointments to the GWMA Board must be made by Resolution. Legislative Body appointments may be done by minute order.
GWMA Board Members and alternate Board Members serve two-year terms beginning October 1st of each odd-numbered year and concluding on September 30th two years later. The draft resolution attached to this report would designate a Board Member and alternate Board Member(s) to serve continuously across successive two-year terms such that the governing body need not re-appoint the same persons to the GWMA Board every two years, unless the governing body desires to change its designated Board Member and/or alternate Board Member or must otherwise fill a vacancy.
ENVIRONMENTAL:
N/A
ANALYSIS:
N/A
SUMMARY:
Staff recommends that the City Council approve Resolution No. 24-45 appointing Cesar Roldan, Public Works Director, as the primary board member and Jeremy Melendez and Samantha Leyva, Management Analysts, as the alternate board members representing the City of Montebello to the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority.
ATTACHMENT(S)
1. Attachment A -Resolution -24-45
ATTACHMENT A
RESOLUTION NO. 24-45
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MONTEBELLO
APPOINTING A MEMBER AND ALTERNATE TO THE LOS ANGELES GATEWAY
REGION INTEGRATED REGIONAL WATER MANAGEMENT JOINT POWERS
AUTHORITY GOVERNING BOARD
RECITALS
WHEREAS, the Los Angeles Gateway Region Integrated Regional Water Management Joint Powers Authority ( “GWMA”) was formed in 2007 in response to the passage of two voter approved water bonds; Proposition 50, passed in 2002 and Proposition 84, passed in 2006; and
WHEREAS, the City of Montebello is a member of the GWMA; and
WHEREAS, under the GWMA Joint Powers Agreement, each member agency shall appoint one member and up to three alternate members to the Governing Board in accordance with the GWMA Bylaws; and
WHEREAS, pursuant to the GWMA Bylaws, the member and alternate members appointed by this Resolution shall hold office until September 30, 2025.
WHEREAS, pursuant to the GWMA Joint Powers Agreement and the GWMA Bylaws, the Member and Alternate Member(s) shall serve two- year terms beginning October 1st of each odd-numbered year.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY RESOLVES, FINDS, AND DECLARES AS FOLLOWS:
SECTION 1. Effective June 26, 2024, Cesar Roldan, Director of Public Works , is appointed to serve as the GWMA Board Member representing the City of Montebello.
SECTION 2. Effective June 26, 2024 , Jeremy Melendez and Samantha Leyva, Management Analysts, are appointed to serve as alternate Board Members representing the City of Montebello.
SECTION 3. The Board Member and alternate Board Members designated above shall continue in their respective positions as if re-appointed for each successive two-year term, unless the Board Member or alternate Board Member is replaced by subsequent action of this legislative body or he or she ceases to be employed by the agency.
SECTION 4. This resolution shall take effect immediately upon its adoption by the City Council, and the City Clerk shall certify the vote adopting this resolution.
RESOLUTION NO. 24-45
APPROVED AND ADOPTED THIS 26TH DAY OF JUNE 2024.
_______________________________
Scarlett Peralta, 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. 24-45 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 meeti ng of said Council held on the 26 th day of June 2024
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
ITEM # 24
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: Cesar Roldan, Director
SUBJECT: APPROVE UTILIZING SERVPRO GLOBAL DISASTER RECOVERY
TEAM TO PROVIDE ON-CALL EMERGENCY CLEAN-UP SERVICES
ON AN AS-NEEDED BASIS
DATE: June 26, 2024
RECOMMENDATION(S):
It is recommended that the City Council:
1. Approve utilizing SERVPRO Global Disaster Recovery Team to provide on-call emergency clean-up and related services on an as-needed basis; and
2. Authorize the City Manager to execute Professional Services Agreement No. 4207 with SERVPRO Global Disaster Recovery Team; and,
3. Take such additional, related action that may be desirable.
BACKGROUND/DISCUSSION:
The SERVPRO Disaster Recovery Team (DRT) is a network of strategically positioned storm teams that can provide help in the event of a natural disaster such as a tornado, hurricane, blizzard, floods, etc. The team is available 24/7 and 365 days a year. They mobilize locally and from across the country to support large-scale, natural disaster damage events. SERVPRO DRT restores residential and commercial properties after fire, smoke, and water damage. SERVPRO DRT also handles mold, hazmat, and trauma cleanup and removal. SERVPRO DRT started in 1967 and is an industry leader in cleanup and restoration with over 1,800 locations in the US and Canada. Executing a Professional Servcies Agreement with SERVPRO allows Staff the flexibility of adding them to the current "bench" of vendors utilized to assist with clean-up after natural disasters or other events requiring specialized clean-up and restoration services.
CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 26, 2024
SERVPRO is one of three vendors that Staff contacted to receive a rate sheet for On- Call Emergency Clean Up Services. Of the three vendors, two responded: SERVPRO Global Disaster Recovery Team and Ocean Blue Environmental Services, Inc. The third vendor, First Response 911 Restoration, did not respond. This informal bid process fulfills the City’s procurement process since there will not be a dollar amount assigned to this On-Call Agreement.
ENVIRONMENTAL:
N/A
ANALYSIS:
N/A
SUMMARY:
Staff recommends that the City Council authorize the City Manager to execute Professional Services Agreement No. 4207 with SERVPRO to allow utilizing them on an as-needed, on-call basis for emergency clean-up services.
ATTACHMENT(S)
1. Agreement No. 4207 SERVPRO Global DRT.
ATTACHMENT A
CITY OF MONTEBELLO
ON-CALL
PROFESSIONAL SERVICES AGREEMENT NO. 4207
WITH ONE SILVER SERVE, LLC
(DBA “SERVPRO GLOBAL DRT”)
THIS ON-CALL PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into on June 26, 2024 (“Effective Date”), by and between the CITY OF MONTEBELLO, a California municipal corporation (the “CITY”) and ONE SILVER SERVE, LLC (DBA “ SERVPRO GLOBAL DRT”), a Delaware Corporation registered to do business in California (the “CONTRACTOR”). The CITY and the CONTRACTOR are sometimes referred to herein individual as the “Party,” and jointly as the “Parties.”
RECITALS
WHEREAS, the CITY desires to retain a qualified professional CONTRACTOR to provide on-call / as -needed emergency profile and remediation directives services in the CITY in the event of any large catastrophe, widespread or regional event(s) requiring priority response; and
WHEREAS, the CONTRACTOR represents that it is fully qualified to perform such services by virtue of its experience and the training, education and expertise of its principals and employees.
NOW THEREFORE, in consideration of performance by the Parties of the covenants and conditions herein contained, the Parties hereto agree as follows:
SECTION 1. INCORPORATION OF RECITALS AND OTHER CONTRACT
DOCUMENTS
a. The above -referenced Recitals constitute a material part hereof and shall hereby be incorporated by reference. Moreover, this Agreement consists of the following documents, in order of precedence, all of which are incorporated herein and made part of this Agreement, as though fully set forth herein:
1. This Agreement and its Exhibits, including scope of work, fee schedules, and any and all addenda or supplemental agreements.
2. CONTRACTOR’s READY APP Emergency Profile and Elective Service Authorization (“Service Authorization”).
3. All other documents, including but not limited to all applicable bonds, insurance certificates, permits, notices, schedules, forms, certifications, and affidavits.
b. These documents shall be collectively referred to herein as the “Contract Documents.” In the event of a conflict among the Contract Documents, the order of precedence list above shall apply.
c. To the extent of a conflict between the terms of this Agreement and that set forth in any exhibits or attachments hereto, the terms of this Agreement shall govern.
PROFESSIONAL SERVICES AGREEMENT NO. 4207
SECTION 2. ON-CALL SERVICES / COMPENSATION.
a. This Agreement is an on -call / as-needed agreement. This Agreement does not guarantee that the CITY will issue a work order on any specific project. The CONTRACTOR shall not commence any work unless first provided with a work order and Notice to Proceed (as defined in below) issued by authorized CITY personnel. Further, the CONTRACTOR agrees and understands that before any work order is issued and Notice to Proceed is provided, compensation, and authorization to proceed on any specific project may be subject to the approval of the City Council.
b. The CONTRACTOR shall provide to the CITY all labor, equipment, materials and incidental necessary to provide the on-call services as set forth fully in the scope of work , as such is set forth fully in CONTRACTOR’s Service Authorization (Exhibit “A ”) attached hereto and incorporated fully herein by this reference (hereinafter “Professional Services”).
c. If a work order and Notice to Proceed is issued as outlined above, t he CONTRACTOR shall be compensated for performance on an on -call / as -needed basis based on Professional Services required and based on the baseline set forth in CONTRACTOR’s Time and Material Schedule, included as part of Exhibit “A” (“Compensation”). The CONTRACTOR shall provide an itemized billing statement to the CITY each month for Professional Services performed. The CONTRACTOR shall no incur fees or costs which exceed the Compensation without the prior written consent of the CITY.
SECTION 3. TERM.
a. The term of this Agreement is for three (3) years, commencing on June 26, 2024 and shall expire on June 31, 2027, unless terminated earlier as hereinafter provided. This Agreement may be extended once for an additional two (2) years 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 CITY’s applicable department head.
SECTION 4. PERFORMANCE.
a. The CONTRACTOR shall at all times, faithfully, competently, and to the best of its ability, experience, and talent, perform all tasks described herein. b. The CONTRACTOR shall employ, at a minimum, generally accepted standards and practices utilized by companies engaged in providing similar services, as are required of CONTRACTOR hereunder, in meeting its obligations under this Agreement.
c. The CONTRACTOR shall be knowledgeable of and subject to all CITY ordinances, rules and regulations, standard operating procedures, and the supervisory chain of command.
PROFESSIONAL SERVICES AGREEMENT NO. 4207
d. The CONTRACTOR shall have the right to retain, subject to the CITY's approval, additional individuals, CONTRACTORs or sub -CONTRACTORs to assist in the completion of services as herein defined. Compensation for additional individuals, CONTRACTORs or sub -CONTRACTORs shall be the sole and exclusive responsibility of the CONTRACTOR.
e. The CONTRACTOR shall retain all original reports, field and office notes, correspondence, calculations, maps, and other documents specifically related to the services provided by the CONTRACTOR pursuant to this Agreement, other than documents which are exempt from disclosure pursuant to the attorney - client privilege or any other law. Said documents shall be made available for inspection by the CITY upon request.
SECTION 5. WORK PRODUCT.
a. The CONTRACTOR hereby agrees that all work product produced pursuant to this Agreement, and provided to the CITY during and upon completion of this Agreement, shall be the property of the CITY , and ownership of said work product shall be retained by the CITY. The CONTRACTOR may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by the CONTRACTOR.
b. All data, documents, discussion, or other information developed or received by the CONTRACTOR or provided for performance of this Agreement are deemed confidential and shall not be disclosed by the CONTRACTOR without prior written consent by the CITY. The CITY shall grant such consent if disclosure is legally required. All such w ritten products shall be returned to the CITY upon the termination or expiration of this Agreement. The CONTRACTOR agrees that the covenants contained in this Section shall survive the expiration or termination of this Agreement.
SECTION 6. EXTRA SERVICES.
No extra services over and above the Compensation shall be rendered by the CONTRACTOR under this Agreement unless such extra services first shall have been duly authorized in writing by the CITY’s City Manager (the “City Manager”).
SECTION 7. CITY SUPERVISION.
The City Manager shall have the right of general supervision of all work performed by the CONTRACTOR and shall be the CITY ’s agent with respect to obtaining the CONTRACTOR’s compliance hereunder. No payment for services rendered under this Agreement shall be made without the prior approval of the City Manager.
SECTION 8. TERMINATION.
In the event that either Party hereto fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, the non -defaulting party shall give the defaulting party written notice of the default, the nature of the default, and of the steps necessary to cure the default.
a. Termination for Cause . In the event that any of the provisions of the Agreement are violated by either party, the non -defaulting Party may terminate the
PROFESSIONAL SERVICES AGREEMENT NO. 4207
Agreement by serving written notice upon the other Party, listing the violation(s) and its intent to terminate such Agreement unless within ten (10) days after the serving of such notice, such violation shall cease or be rectified, the contract shall upon the expiration of an additional thirty (30) days cease and terminate. Violations by the CONTRACTOR which cannot be corrected within ten (10) days, said contract shall at the option of the CITY cease and terminate upon the giving of like notice. In the event of any such termination for default by the CONTRACTOR, the CITY may take over the work and prosecute the same to completion by contract or otherwise for the account and at the expense of the CONTRACTOR. The CONTRACTOR and his sureties shall be liable to the CITY for any excess cost occasioned in the event of any such termination. This change shall not be construed to prevent the termination, for other causes authorized by law or other provisions of this contract.
In the event of a termination for cause, the CONTRACTOR shall only be entitled to the Compensation for those Professional Services satisfactory performed on or before the effective date of termination.
b. Termination for Convenience. The CITY shall have the option, at its sole discretion and without cause, to terminate this Agreement in whole, or in part, by giving ten (10) business days’ written notice to the CONTRACTOR. Upon the termination of this Agreement as provided herein, the CITY shall provide to the CONTRACTOR the part of Compensation which would otherwise be payable to the CONTRACTOR for services the CONTRACTOR had completed as of the date of termination, less the amount of all previous payment with respect to the Compensation. Further, upon such a termination for convenience by the CITY, the Parties agree that the CONTRACTOR shall be reimbursed for any “non- refundable” costs that the CONTRACTOR has incurred for its services under this Agreement, provided that: (1) such “non- refundable” costs were incurred by the CONTRACTOR prior to the date of termination, and (2) that the CONTRACTOR provides the CITY with adequate proof that the CONTRACTOR incurred the costs, and is unable to be seek a refund for such costs. Such “non -refundable” costs may include, but are not limited to, travel reservations incurred by the CONTRACTOR for its performance of services under this Agreement. The CONTRACTOR agrees to cease all work under this Agreement on or before the effective date of any notice of termination.
SECTION 9. EMPLOYMENT OF CITY EMPLOYEES.
No regular employee of the CITY shall be employed by the CONTRACTOR during the term of this Agreement.
SECTION 10. NON-LIABILITY OF CITY OFFICIALS AND EMPLOYEES.
No official or employee of the CITY shall be personally liable to the CONTRACTOR in the event of any default or breach by the CITY, or for any amount which may become due to the CONTRACTOR.
SECTION 11. INDEPENDENT CONTRACTOR.
a. The CONTRACTOR is and shall, at all times, remain as to the CITY a wholly independent CONTRACTOR. Neither the CITY nor any of its elected officials, officers, employees, or agents shall have control over the conduct of the CONTRACTOR except as expressly set forth in this Agreement. The CONTRACTOR shall not at any time or in any manner represent that he or she is in
PROFESSIONAL SERVICES AGREEMENT NO. 4207
any manner an elected official, officer, employee, or agent of the CITY. No employee benefits shall be available to the CONTRACTOR in connection with the performance of this Agreement. Except as provided in this Agreement, the CITY shall not pay salary, wages, or other compensation to the CONTRACTOR for performance hereunder for the CITY, the CITY shall not be liable for compensation to the CONTRACTOR, the CONTRACTOR’s employees or the CONTRACTOR’s sub-CONTRACTORs for injury or sickness arising out of performing services hereunder.
b. The parties further acknowledge and agree that nothing in this Agreement shall create or be construed to create a partnership, joint venture, employment relationship or any other relationship except as set forth in this Agreement.
c. The CITY shall not deduct from the Compensation paid to the CONTRACTOR any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to the CONTRACTOR. The CITY shall have no responsibility to provide the CONTRACTOR, its employees or sub - CONTRACTORs with workers’ compensation insurance or any other insurance.
SECTION 12. CALPERS ANNUITANTS AND ELIGIBILITY INDEMNITY.
a. If the CONTRACTOR is a California Public Employees’ Retirement System (“CalPERS”) annuitant, the CONTRACTOR must provide the City with written notification of such fact a minimum of 14 calendar days prior to commencement of services under this Agreement. Failure to provide such notification may result in termination of the Agreement, and any penalties or other costs relating thereto shall be borne by the CONTRACTOR. If this Agreement remains in place, the CONTRACTOR shall execute any amendment(s) to this Agreement requested by the City in order to comply with all laws and regulations applicable to CalPERS annuitants.
b. In the event that the CONTRACTOR or any employee, agent, or sub - CONTRACTOR of the CONTRACTOR providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the CITY, the CONTRACTOR shall indemnify, defend, and hold harmless the CITY for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of the CONTRACTOR or its employees, agents, or sub -CONTRACTORs, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the CITY.
c. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, the CONTRACTOR and any of its employees, agents, and sub-CONTRACTORs providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by the CITY, including but not limited to eligibility to enroll in PERS as an employee of the CITY and entitlement to any contribution to be paid by the CITY for employer contribution and/or employee contributions for PERS benefits.
SECTION 13. LEGAL RESPONSIBILITIES.
PROFESSIONAL SERVICES AGREEMENT NO. 4207
The CONTRACTOR shall at all times observe and comply with all applicable laws, ordinances, codes, and regulations of the federal, state, and local governments including, but not limited to the Montebello Municipal Code. The CITY, and its appointed or elected officers, employees, or agents, shall not be liable at law or in equity occasioned by failure of the CONTRACTOR to comply with this section.
SECTION 14. INDEMNIFICATION.
The CONTRACTOR agrees to, and shall defend, indemnify, protect and hold harmless, the CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers from and against any and all claims, demands, lawsuits, defense costs, civil, penalties, expenses, causes of action, and judgments at law or in equity, or liability of any kind or nature which the CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers may sustain or incur or which may be imposed upon them for injuries or deaths of persons, or damage to property arising out of the CONTRACTOR’s negligent or wrongful act, or omission under the terms of this Agreement, except only liability arising out of the sole negligence of the CITY.
SECTION 15. INSURANCE COVERAGE.
a. During the term of this Agreement, the CONTRACTOR shall carry, maintain, and keep in full force and effect insurance against claims for death or i njuries to persons or damages to property that may arise from or in connection with CONTRACTOR’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:
• Commercial General Liability (CGL) : Insurance S ervices Office Form CG 00 01 covering CGL on an “occurrence” basis for bodily injury and property damage, including products -completed operations, personal injury, and advertising injury, with limits no less than $ 2,000,000 per occurrence. If a general aggregate limit applies, the limit shall be twice the required occurrence limit.
• Automobile Liability Insurance: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if CONTRACTOR has no owned autos, Code 8 (hired) and 9 (non -owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.
• Worker's Compensation insurance as required by the laws of the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
• Professional Li ability insurance appropriate to the CONTRACTOR’S profession, with limit no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate.
b. If the CONTRACTOR maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONTRACTOR.
PROFESSIONAL SERVICES AGREEMENT NO. 4207
c. The CONTACTOR shall require each of its sub -CONTRACTORs, if any, to maintain insurance coverage that meets all of the requirements of this Agreement.
d. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a current rating of at least A:VII in the latest edition of Best's Insurance Guide.
e. Each insurance policy required above shall state that coverage shall not be canceled, except after thirty (30) days’ prior written notice (ten [10] days for non- payment) has been given to the C ITY. The CONTRACTOR agrees that if it does not keep the aforesaid insurance in full force and effect the CITY may either (i) immediately terminate this Agreement for Cause ; or (ii) take out the necessary insurance and pay, at the CONTRACTOR’s expense, the premium thereon.
f. Evidence of Insurance prior to commencement . The Contractor shall provide to the C ITY Certificate(s) of Insurance evidencing such coverage together with copies of the required policy endorsements no later than five (5) business days prior to commencement of service and at least fifteen (15) business days prior to the expiration of any policy. Unreasonable failure to provide such evidence may be cause for termination of the Agreement as provided herein or delay the services’ commencement date. The evidence of insurance shall be U.S. mail or email to:
City of Montebello
Attn: Risk Manager
1600 West Beverly Boulevard
Montebello, CA 90640
Email: [email protected]
Coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits, non-renewed, or materially changed for any reason, without thirty (30) days prior written notice thereof given by the insurer to the CITY by U.S. mail, or by personal delivery, except for nonpayment of premiums, in which case ten (10) days prior notice shall be provided.
g. Evidence of Insurance during the entire term of the Agreement . At all times during the term of this Agreement, the CONTRACTOR shall maintain on file with the CITY’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and naming the CITY as an additional insured. The CONTRACTOR shall, prior to commencement of work under this Agreement, file with the CITY’s Risk Manager such certificate(s).
h. The CONTRACTOR shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages.
i. The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming the CITY, its officers, employees, agents and volunteers as additional insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to the CITY. The CONTRACTOR agrees to require its insurer to modify the certificates of insurance
PROFESSIONAL SERVICES AGREEMENT NO. 4207
to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.
j. The insurance provided by the CONTRACTOR shall be primary to any coverage available to the CITY. Any insurance or self -insurance maintained by the CITY, its officers, employees, agents, or volunteers, shall be in excess of CONTRACTOR’s insurance and shall not contribute with it.
k. All insurance coverage provided pursuant to this Agreement shall not prohibit the CONTRACTOR, and CONTRACTOR’s employees, agents or sub - CONTRACTORs, from waiving the right of subrogation prior to a loss. The CONTRACTOR hereby waives all rights of subrogation against the CITY.
l. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, the CONTRACTOR shall either reduce or eliminate the deductibles or self -insured retentions with respect to the CITY, or the CONTRACTOR shall procure a bond guaranteeing payment of losses and expenses.
m. Procurement of insurance by the CONTRACTOR shall not be construed as a limitation of the CONTRACTOR'S liability or as f ull performance of CONTRACTOR’s duties to indemnify, hold harmless and defend under the indemnity covenants of this Agreement.
SECTION 16. SUBCONTRACT, ASSIGNMENT OR DELEGATION.
The CONTRACTOR shall not subcontract, delegate, or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of the CITY.
Any proposed subcontract, delegation, or assignment shall provide a description of the services to be covered, identification of the proposed sub-CONTRACTOR, delegee, or assignee, and an explanation of why and how the same was selected, including the degree of competition involved.
Any subcontract, delegation or assignment shall be made in the name of the CONTRACTOR and shall not bind or purport to bind the CITY and shall not release the CONTRACTOR from any obligations under this Agreement including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegees or sub-CONTRACTORs. No such subcontract, delegation or assignment shall result in any increase in the amount of total compensation payable to the CONTRACTOR under the Agreement.
SECTION 17. NO WAIVER.
Waiver by any party hereto of any term, condition or covenant of this Agreement shall not constitute the waiver of any other term, condition, or covenant hereof.
SECTION 18. DISPUTE RESOLUTION; GOVERNING LAW.
Disputes regarding the interpretation or application of any provision(s) of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the Parties. If any action at law or in equity is brought to enforce this Agreement or because of alleged dispute, breach, default or
PROFESSIONAL SERVICES AGREEMENT NO. 4207
misrepresentation in connection with the provisions of this Agreement, the prevailing party in such action shall be entitled to reasonable attorney’s fees, expert fees, costs and necessary disbursements incurred in that action or proceeding, in addition to such other relief as may be sought and awarded. The venue for any litigation shall be County of Los Angeles, California. The Parties agree that the covenants contained in this Section shall survive the expiration or termination of this Agreement.
SECTION 19. ATTORNEY’S FEES AND COSTS.
If litigation is reasonably required to enforce or interpret the provisions of this Agreement, the prevailing party in such litigation shall be entitled to an award of reasonable attorney's fees and costs in addition to any other relief to which it may be entitled.
SECTION 20. WARRANTIES.
Each of the parties represents and warrants to one another as follows:
a. It has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement;
b. In executing this Agreement, it has carefully read this Agreement, knows the contents thereof, and has relied solely on the statements expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or promise of any other party, or any other person or entity, not expressly set forth herein, nor upon the failure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever; and
c. It is agreed that each party has the full right and authority to enter into this Agreement, and that the person executing this Agreement on behalf of either party has the full right and authority to fully commit and bind such party to the provisions of this Agreement.
SECTION 21. MISCELLANEOUS.
a. The descriptive paragraph headings of this Agreement are included for purposes of convenience only and shall not control or affect the construction of interpretation of any of its provisions.
b. Whenever the context hereof shall so require, the singular shall include the plural, the male gender shall include the female gender, and the neuter and vice versa.
c. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained herein.
d. The representations and warranties made by the parties to this Agreement shall survive the consummation of the transaction herein described.
PROFESSIONAL SERVICES AGREEMENT NO. 4207
e. This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile transmission, shall for all purposes be treated as if it were delivered containing an original manual signature of the party whose signature appears in the facsimile and shall be binding upon such party in the same manner as though an originally signed copy had been delivered.
f. Each of the parties acknowledges that it has been represented by independent counsel of its own choosing, or if it has not been so represented, it has been admonished to obtain independent counsel and has freely and voluntarily waived and relinquished the right to counsel. Each party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such party’s failure to perform under this Agreement or any agreement referred to in this Agreement.
SECTION 22. NOTICE.
All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered via e- mail (an “Electronic Notice” as further defined below), personally or on the second (2nd) business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals hereunder shall be given to the following addresses or such other addresses as the Parties may designate by written notice:
If to CITY: City of Montebello
Attn: City Manager
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200
With a copy to: City of Montebello
Attn: Department of Public Works
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 558 -1625 ext.
Email: [email protected]
If to CONTRACTOR: SERVPRO GLOBAL DRT
16601 Ventura Blvd., 4th Floor
Encino, CA 91436
Email: [email protected]
An electronic communication (“ Electronic Notice”) shall be deemed written notice for purposes of this section if sent to the electronic mail address specified above.
Electronic Notice shall be deemed received at the time the party sending Electronic Notice receives verification of receipt by the receiving party. Any party receiving Electronic Notice may request and shall be entitled to receive the notice on paper, in a nonelectronic form.
PROFESSIONAL SERVICES AGREEMENT NO. 4207
SECTION 23. NON-DISCRIMINATION AND EQUAL OPPORTUNITY EMPLOYER.
In the performance of this Agreement, the CONTRACTOR shall not discriminate against any employee, sub-CONTRACTOR, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, mental condition or sexual orientation. The CONTRACTOR will take affirmative action to ensure that sub- CONTRACTOR and applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.
SECTION 24. CONFLICT OF INTEREST.
The CONTRACTOR covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by the CONTRACTOR under this Agreement, or which would conflict in any manner with the performance of its services hereunder. The CONTRACTOR further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, the CONTRACTOR shall avoid the appearance of having any interest that would conflict in any manner with the performance of its services pursuant to this Agreement.
The CONTRACTOR covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to the CITY as a result of the performance of this Agreement, or the services that may be procured by the CITY as a result of the recommendations made by the CONTRACTOR. The CONTRACTOR's covenant under this section shall survive the termination of this Agreement.
SECTION 25. ENTIRE AGREEMENT.
This Agreement contains the entire understanding between the CITY and the CONTRACTOR. Any prior agreements, promises, negotiations or representations not expressly set forth herein are of no force or effect. Subsequent modifications to this Agreement shall be effective only if in writing and signed by each party. If any term, condition, or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable , the remaining provisions of this Agreement shall be valid and binding.
[SIGNATURE PAGE TO FOLLOW]
PROFESSIONAL SERVICES AGREEMENT NO. 4207
IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Agreement as of the date first written above. (“CITY”) (“CONTRACTOR”)
CITY OF MONTEBELLO SERVPRO GLOBAL DRT
Raul Alvarez, City Manager Todd Resnick, Sr. Vice President ATTEST:
Christopher Jimenez, City Clerk
APPROVED AS TO FORM:
Arnold M. Alvarez-Glasman, City Attorney
EXHIBITS:
• Exhibit A – Contractor’s “Service Authorization”
• Exhibit B – Labor Law Requirements
• Exhibit C – Live Scan Fingerprinting Requirement
EXHIBIT “A”
CONTRACTOR’S SERVICE AUTHORIZATION
Extreme Response Team (ERT) | Elite Designation
Regional Disaster Response Team | California, Nevada, Arizona (DRT) 16601 Ventura Blvd, 4th Fl., Encino, CA 91346
Office: (323) 896-8809 | Email: [email protected]
1 READY APP® Emergency Profile and Elective Services Authorization
One Silver Serve, LLC d/b/a SERVPRO WEST COAST DRT (hereinafter referred to as “SERVPRO”), CSLB # 1026761, to assist __________________________., on behalf of itself and its affiliates (hereinafter referred to as “Client”) in developing a SERVPRO Emergency Ready® Profile for each structure and/or location. The following items will ultimately serve as a playbook of important emergency planning protocols:
• Perform no-cost inspections(s) of your facilities to properly document critical areas. • Collect contact information for Property Manager, Engineer and/or Facilities Staff along with all Preferred vendors utilized in the course of normal business. • Discuss and notate all "Emergency Remediation Directive(s)” • Develop the step-by-step guide to help staff following a disaster, including a process map of what to do, how to do it and who to call.
• Build, deploy and train the READY APP® shared with all your staff members/stakeholders. • Enable Preferred Pricing Discounts for self-pay assistance.
There is NO COMMITMENT required and NO COST to the emergency planning or the training itself. It is the Clients choice to elect SERVPRO to perform any services on a case-by-case basis by alerting Servpro of an incident requiring a mobilization response (herein referred to as “JOB NOTIFICATION”). When elected, Servpro shall be designated a “Priority Responder” to Client, including in the event of any large catastrophes, widespread or regional event(s) requiring a priority response. The ERP will contain all catastrophe work and logistical plans for your company.
1. Job Notification. Client may agree to designate SERVPRO as Priority Responder by first notifying Todd Resnick SVP by calling/texting 323-896-8809, by emailing [email protected] and/or through the published READY APP® of an incident requiring an EMERGENCY mitigation, restoration and/or any NON-EMERGENCY remediation services occurring at any of Client’s locations - 24 hours a day, 7 days a week. SERVPRO shall not be obligated to accept “special” notifications, but it is expressly understood and agreed that any accepted job notifications from Client or its affiliates (a “Job Notification”) shall be governed by the provisions of this Agreement.
All such Services shall be performed in a professional, workmanlike, and timely manner, and to industry standards. Once notified, Client will make the subject property accessible to accommodate SERVPRO and take all steps necessary to enable SERVPRO to complete all emergency related services. Client shall use best efforts to prevent any other contractors, remediators, or any other parties to perform any work at the property or in the vicinity of the performance by SERVPRO of the Services until SERVPRO completes the Services.
2. Authorization to mobilize. Upon successful Job Notification, Client authorizes up to a maximum charge of Five Thousand Dollars ($5,000.00) for each job, including charges for mobilization. If Services are estimated to exceed Five Thousand Dollars ($5,000.00) for a specific job, SERVPRO will contact Client to discuss the Job and obtain additional authority prior to performing additional Services. The timing and procedure for the Services are as follows, although exceptions may apply under certain conditions, such as extreme weather, disasters, catastrophes, or large losses:
Extreme Response Team (ERT) | Elite Designation
Regional Disaster Response Team | California, Nevada, Arizona (DRT) 16601 Ventura Blvd, 4th Fl., Encino, CA 91346
Office: (323) 896-8809 | Email: [email protected]
2 Job Notification Types:
• Level 1 = NON EMERGENCY INSPECTION - WITHIN 72 HOURS
• Level 2 = SMALL LOSS EMERGENCY - WITHIN 2 HOURS
• Level 3 = LARGE LOSS EMERGENCY - WITHIN 2 HOURS
a. Initial Briefing of Scope. Within two (2) hours of on-site arrival, SERVPRO will provide an initial briefing to the appropriate Client representative.
b. Small Loss or Large Loss Briefing. Within twenty-four (24) hours of on-site arrival, SERVPRO (Todd Resnick, SVP) will provide a verbal briefing of the magnitude of the Job to the appropriate Client representative, whether SERVPRO determines the Job is a Small Loss or a Large Loss.
i. A “Small Loss” is defined as a Job in which SERVPRO estimates that the entire cost of the Job will be under One Hundred Thousand Dollars ($100,000.00).
a. A Small loss is priced according to the Xactimate pricing model, plus any applicable taxes and costs, permits, fees, special licenses, and other reasonably necessary expenses and permitted subcontractors.
b. For all Small losses in remote areas, the GSA rates may apply for meals and lodging.
c. A Small Loss is billed at the completion of the Job and any Preferred Pricing discounts will be applied.
II. A “Large Loss” is defined as a Job in which SERVPRO estimates that the entire cost of the Job will exceed One Hundred Thousand Dollars ($100,000.00).
a. A Large Loss is priced according to Time and Materials Commercial Pricing attached as Exhibit A, plus any applicable taxes and costs, permits, fees, special licenses, and other reasonably necessary expenses and permitted subcontractors.
b. For all Large losses in remote areas, the GSA rates may apply for meals and lodging.
c. A Large Loss is billed periodically during the Job.
3. Scope of Work for Each Job. It is understood that Servpro will work as expediently as practical to first stabilize the environment, to properly document the damages, cause-of-loss and to memorialize the resulting documented damages and recommendations for each individual Job, such Services are referred to as (“Scope of Work”). The Scope of Work shall become part of this Agreement and incorporated herein upon mutual written execution of Exhibit B for each Scope of Work. Client acknowledges and agrees that limited photographs or video of the damage and cause may be made solely for work process and insurance claims purposes.
Extreme Response Team (ERT) | Elite Designation
Regional Disaster Response Team | California, Nevada, Arizona (DRT) 16601 Ventura Blvd, 4th Fl., Encino, CA 91346
Office: (323) 896-8809 | Email: [email protected]
3 a. Amendments to Scope of Work for Each Job. The parties understand and acknowledge that SERVPRO needs to have the ability to provide Services outside the Scope of Work as emergency needs arise and the parties may not have the ability to provide prior written approval of the emergency changes before the Services are required. Therefore, the parties agree that SERVPRO may use its reasonable business judgment in providing any necessary emergency services.
b. Services which are outside the Scope of Work. Servpro shall notify Client as soon as practical of the additional Services. Such additional Services will be documented in an Amendment to Scope of Work and if not rejected by Client within forty-eight (48) hours of receipt of the Amendment to Scope of Work, shall become part of this Agreement and incorporated herein.
c. Environmental. Client authorizes SERVPRO to engage, at Clients expense, an Industrial Hygienist to identify, notify and direct the removal of materials containing asbestos, lead, and/or mold. Mold remediation, if any, must be set forth in the Scope of Work and must be directed by an Industrial Hygienist protocol and Post Remediation clearance testing.
I. Client acknowledges and agrees that building materials cannot be removed prior to receiving Industrial Hygienist reported recommendations.
II. Client acknowledges and agrees that mold is commonly found throughout the environment and that it is impossible to eradicate mold or microbial contamination.
III. SERVPRO does not guaranty the removal or eradication of mold or microbial contamination. SERVPRO shall not be responsible for any such hazardous materials removal, handling or disposal.
d. Consents and Permits. Any Federal, State or Local permits or consents required for the performance of the Services are the responsibility of the Client; provided that, if made a part of the Scope of Work for a Job, SERVPRO West Coast DRT may obtain such permits and consents at Client’s expense. Both SERVPRO and Client will comply with all applicable governmental regulations, statutes, laws and ordinances.
4. SERVICES
EMERGENCY SERVICES:
• Direct fire damages
• Smoke/Water remediation
• Other sudden property damages
• Custodial enhanced cleaning services
• Custodial deep/biochemical cleaning services
• Demolition for direct fire/water damages
• Estimating and insurance carrier validating
ENVIRONMENTAL SERVICES:
• Asbestos/Lead abatement and remediation
• Mold remediation
• Lithium battery & Petroleum clean-up
• Hazmat and/or Hazmat transportation
• Fentanyl and/or other toxic clean-ups
• Biohazard clean-ups
Extreme Response Team (ERT) | Elite Designation
Regional Disaster Response Team | California, Nevada, Arizona (DRT) 16601 Ventura Blvd, 4th Fl., Encino, CA 91346
Office: (323) 896-8809 | Email: [email protected]
4 RECONSTRUCTION SERVICES:
• Estimating and insurance carrier validation
• General construction
• Roofing
• Electrical
• Plumbing
• Structural
5. Responsibility for Payment. Client shall remain primarily liable and fully responsible for payment and agrees to make such payment in a timely manner in accordance with the terms of this Agreement. Client agrees to make payment for Charges, regardless of whether Client or another person or entity is legally responsible for payment or whether Client is entitled to reimbursement for such costs from some other person or entity or insurance carrier(s).
6. Causes Beyond Control. SERVPRO West Coast DRT shall not be liable for any delay due to circumstances beyond the control of SERVPRO including, but not limited to, force majeure event, flood, fire, strikes, or other labor difficulty, act of God, casualty, unavailability of materials or labor, weather conditions, building department requests, intervention by governmental authority, civil disturbance, sabotage, fuel or energy shortage, transportation delay, equipment breakdown, natural catastrophes, inability to obtain necessary labor, materials, or manufacturing facilities, or any other cause beyond SERVPRO’s reasonable control. SERVPRO shall be entitled to all additional fees and costs incurred by SERVPRO, including without limitation overhead, profit and fees due to such delay.
No charge shall be made by the Client for storage of materials, tools and equipment at the property during such delay.
7. Entire Agreement- This Agreement represents the entire agreement and understanding of the parties hereto. No party has relied on any statement or representation of the other not expressly set forth in writing in this Agreement with respect to its subject matter hereof. This Agreement supersedes all previous representations, understandings or agreements between the parties hereto.
No waiver, modification or cancellation of any term or condition of this Agreement shall be effective unless executed in writing by the party charged therewith.
SERVPRO retains the right to refuse, suspend or delay service to any person or entity and/or to transport waste for good cause including, but not limited to, nonpayment for services, or uncooperative behavior by Client or any of Client’s agents.
Client shall release and deliver all information which is necessary for SERVPRO to comply with this Agreement and Client further warrants that SERVPRO has the authority to release any information related to Client and the services provided to Client to Client’s insurance company, mortgagee, and all governmental agencies and officials.
8. National Time and Materials Pricing. This agreement is subject to National Time and Materials (T&M) pricing featured in the Exhibit A, which may be updated by SERVPRO upon giving Client thirty (30) days’ advance written notice, at which time the new T&M Pricing shall become part of this Agreement, replacing the previous Time and Materials Commercial Pricing. ii. The parties agree that Exhibit A may be updated immediately for a specific Job upon notice to Client in the event a Job is located in an area that necessitates such change, as determined by SERVPRO in SERVPRO’s reasonable business judgment (a) due to extreme
Extreme Response Team (ERT) | Elite Designation
Regional Disaster Response Team | California, Nevada, Arizona (DRT) 16601 Ventura Blvd, 4th Fl., Encino, CA 91346
Office: (323) 896-8809 | Email: [email protected]
5 weather, disasters, catastrophes, shortages of labor or resources, or metropolitan areas; and/or (b) in the event SERVPRO is required to pay prevailing or union wages. In such event, the Job-Specific Time and Materials Commercial Pricing for that specific Job shall become part of this Agreement, replacing the previous Time and Materials Commercial Pricing, but only for such Job.
9. No Warranty. SERVPRO DISCLAIMS ANY AND ALL WARRANTIES (EITHER IN FACT OR BY
OPERATION OF LAW) INCLUDING, BUT NOT LIMITED TO, ANY IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE OR ANY IMPLIED WARRANTY ARISING OUT OF A COURSE OF DEALING, CUSTOM OR USAGE OF TRADE. THIS AGREEMENT PROVIDES FOR THE PROVISION OF SERVICES AND DOES NOT PROVIDE FOR A SALE OF GOODS.
10. Right To Repair/Limitations Period. Any claim by Client for faulty performance, non- performance, or breach under this Agreement shall be made in writing to SERVPRO West Coast DRT within ninety (90) days after the earlier of completion of the work or date any such performance, non-performance or breach would have been discovered exercising reasonable diligence. Failure to make such a written claim for any matter which could have been corrected by SERVPRO West Coast DRT shall be deemed waived by Client. No action, regardless of form, relating to the subject matter of this Agreement may be brought more than one (1) year after such date.
11. Limitation of Liability. IN NO EVENT SHALL SERVPRO WEST COAST DRT, ITS OWNERS, ANY
OFFICERS, DIRECTORS, EMPLOYEES, OR AGENTS, FRANCHISOR, OR AFFILIATES BE RESPONSIBLE
FOR INDIRECT, SPECIAL, NOMINAL, INCIDENTAL, PUNITIVE OR CONSEQUENTIAL LOSSES OR
DAMAGES, OR FOR ANY PENALTIES, REGARDLESS OF THE LEGAL OR EQUITABLE THEORY
ASSERTED, INCLUDING CONTRACT, NEGLIGENCE, WARRANTY, STRICT LIABILITY, STATUTE OR
OTHERWISE, EVEN IF IT HAD BEEN AWARE OF THE POSSIBILITY OF SUCH DAMAGES OR THEY ARE FORESEEABLE; OR FOR CLAIMS BY A THIRD PARTY. SERVPRO’ TOTAL LIABILITY WITH
RESPECT TO ALL CAUSES OF ACTION TOGETHER ON A JOB OR ANY INDEMNITY REQUIREMENTS
RELATED TO A JOB WILL NOT EXCEED THE AMOUNT PAID BY CLIENT TO SERVPRO WEST COAST DRT FOR THAT SPECIFIC JOB. IT IS EXPRESSLY AGREED THAT CLIENT’S REMEDY EXPRESSED HEREIN IS CLIENT’S EXCLUSIVE REMEDY. THE LIMITATIONS SET FORTH HEREIN SHALL APPLY EVEN IF ANY OTHER REMEDIES FAIL OF THEIR ESSENTIAL PURPOSE.
12. Term. The term of this Agreement will commence upon the last date of execution of this Agreement and will end three (3) years from that date. This Agreement, while being subject to the termination provisions in this Section 16, will auto-renew annually unless terminated by either party by written notice thirty (30) days prior to renewal. This Agreement may be terminated without cause by either party upon sixty (60) days’ written notice. This Agreement may be terminated for cause if a party materially breaches this Agreement and fails to cure within fifteen (15) days of written notice by the other party. A notice of termination must be sent by certified mail-return receipt requested, or by a commercial overnight delivery service, to the parties at the addresses set forth below. Upon termination, Client shall have no further liabilities or obligations under this Agreement except to pay SERVPRO West Coast DRT for any amounts due for Services performed prior to the termination date.
Extreme Response Team (ERT) | Elite Designation
Regional Disaster Response Team | California, Nevada, Arizona (DRT) 16601 Ventura Blvd, 4th Fl., Encino, CA 91346
Office: (323) 896-8809 | Email: [email protected]
6 13. Indemnity. Each party agrees to defend, indemnify and hold harmless the other party hereto and the other party’s shareholders, directors, Franchisor, officers, premised subcontractors, employees and agents, from and against any and all claims, demands, causes of action and liabilities of any nature, including without limitation damages to property or personal injury and/or condition of the property, to the extent that any such claim, demand, cause of action and/or liability arises out of or is related to the breach of contract, negligence or other fault of the indemnifying party.
14. Independent Contractors. The parties agree and intend that the relationship between them created by this Agreement is that of independent contractors. SERVPRO West Coast DRT, as an independent contractor, shall have the responsibility and authority to assign the performance of Services to such subcontractors as it sees fit.
15. Confidentiality. The parties to this Agreement acknowledge that each may from time to time acquire non-public and/or proprietary information from or about the other, including without limitation, its business activities and operations, its business methods, business plans, technical information and its trade secrets, whether or not reduced to writing, all of which are proprietary and confidential (the “Confidential Information”). Each party hereby agrees that:
(a) it will use the other party’s Confidential Information solely in the course of performing under this Agreement; (b) all Confidential Information remains the exclusive property of the disclosing party; (c) it shall maintain and cause its employees to maintain (and not to otherwise copy, publish, disclose or use other than as permitted under this Agreement), the confidentiality and secrecy of the disclosing party’s Confidential Information; and (d) it shall return or destroy all copies of the disclosing party’s Confidential Information upon request or termination or expiration of this Agreement. Confidential Information shall not include information to the extent it: (i) is or becomes a part of the public domain through no act or omission on the part of the receiving party; (ii) is disclosed to third parties by the disclosing party without restriction on such third parties; (iii) is in the receiving party’s possession, without knowledge of an obligation of confidentiality; or (iv) is independently developed by the receiving party without reference to the disclosing party’s Confidential Information. The party claiming any of the above exceptions has the burden of proving its applicability.
Confidential Information may be used by the parties solely to fulfill their obligations under this Agreement.
16. Governing Law and Arbitration. This Agreement shall be construed in accordance with the laws of the State of California. Should any provision of this Agreement be found as invalid or unenforceable, such provision shall be fully severable, and this Agreement shall remain in full force and effect and shall not be affected by the severed provision. CLIENT AND SERVPRO WEST
COAST DRT EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY WITH RESPECT TO ANY
AND ALL CLAIMS OR CAUSES OF ACTION (INCLUDING COUNTERCLAIMS) RELATED TO OR ARISING OUT OF OR IN ANY WAY CONNECTED TO THIS AGREEMENT. Any claim arising out of, relating to or in connection with a violation or breach of any of the representations, warranties, indemnities, covenants, agreements or other provisions under this Agreement shall be referred to and settled by arbitration under and in accordance with the Rules of Arbitration of the ICC (the “ICC Rules”), as amended and in effect on the date that demand for arbitration is filed as set forth in herein. Each Party consents to such arbitration as the sole and exclusive method of resolving any such claim. To initiate arbitration, the one Party shall submit its notice of arbitration to the International Court of Arbitration and to the other Party. The arbitration proceeding will take place in Los Angeles, California and will be conducted in the English language. The arbitration
Extreme Response Team (ERT) | Elite Designation
Regional Disaster Response Team | California, Nevada, Arizona (DRT) 16601 Ventura Blvd, 4th Fl., Encino, CA 91346
Office: (323) 896-8809 | Email: [email protected]
7 panel will consist of one (1) arbitrator if the amount in dispute is less than $100,000 USD or (3) arbitrators if the amount in dispute is equal to or greater than $100,000 USD, all of whom (including the chairperson) shall be appointed by the International Court of Arbitration pursuant to the ICC Rules. The expenses of the arbitration shall be borne as determined by the arbitral tribunal. The award of the arbitral tribunal shall be final and binding on the parties thereto, including any joined or intervening party, who hereby agree to undertake it without recourse to any judicial proceedings in any jurisdiction whatsoever seeking annulment, setting aside, modification or any diminution or impairment of its terms or effect. Judgment upon any arbitral award rendered may be entered and a confirmation order sought in any court having jurisdiction thereof.
17. Notices. All notices, requests, consents, approvals, acknowledgements and waivers under this Agreement (other than routine operational communications) must be in writing and will be deemed duly given when (i) delivered personally, (ii) (1) day after being given to an overnight courier with a reliable system for tracking delivery (charges prepaid), (iii) when sent by confirmed facsimile or electronic mail with a copy sent by another means specified in this Section, or (iv) six (6) days after the day of mailing, when mailed by United States mail, registered or certified mail, return receipt requested, postage prepaid and addressed as follows:
If to SERVPRO: SERVPRO WEST COAST DRT
16601 Ventura Blvd. 4th Floor
Encino, CA 91436
If to Client:
18. Waiver of Rights. Except as specifically provided in Section 12, a failure of either party to exercise any right provided herein shall not be deemed to be a waiver of any rights hereunder.
19. Severability. If any provision of this Agreement is found to be ineffective, unenforceable or illegal for any reason under present or future laws, such provision shall be fully severable, and this Agreement shall be construed and enforced as if such provision never comprised a part of this Agreement. The remaining provisions of this Agreement shall remain in full force and effect and shall not be affected by the ineffective, unenforceable or illegal provision or by its severance from this Agreement.
20. Survival. All provisions of this Agreement which by their nature should reasonably be expected to survive the expiration or termination of this Agreement shall so survive. In addition, all provisions of this Agreement shall survive each and every completion or termination of each and every Job.
21. Additional documents. The following documents are incorporated herein by reference, whether physically attached hereto or separately initialed by the Parties:
Exhibit A Time and Materials Rate Sheet
Extreme Response Team (ERT) | Elite Designation
Regional Disaster Response Team | California, Nevada, Arizona (DRT) 16601 Ventura Blvd, 4th Fl., Encino, CA 91346
Office: (323) 896-8809 | Email: [email protected]
8 Exhibit B Scope of Work and Approval
***Remainder of Page Left Blank***
Signature Page to Follow
Extreme Response Team (ERT) | Elite Designation
Regional Disaster Response Team | California, Nevada, Arizona (DRT) 16601 Ventura Blvd, 4th Fl., Encino, CA 91346
Office: (323) 896-8809 | Email: [email protected]
9 Both parties indicate their acceptance of the terms and conditions of this Agreement by signature of an officer of their respective companies.
SERVPRO:
One Silver Serve, LLC
DBA SERVPRO WEST COAST DRT
By: ______________________________
Name & Title: Todd Resnick SVP
Date: _____________________________
CLIENT:
By: ______________________________
Name & Title _____________________
Date: _____________________________
Extreme Response Team (ERT) | Elite Designation
Regional Disaster Response Team | California, Nevada, Arizona (DRT) 16601 Ventura Blvd, 4th Fl., Encino, CA 91346
Office: (323) 896-8809 | Email: [email protected]
10 Exhibit A
Time and Materials Rate Sheet
Extreme Response Team (ERT) | Elite Designation
Regional Disaster Response Team | California, Nevada, Arizona (DRT) 16601 Ventura Blvd, 4th Fl., Encino, CA 91346
Office: (323) 896-8809 | Email: [email protected]
11 Exhibit B
Scope of Work and Approval
SCOPE OF WORK APPROVAL
One Silver Serve, LLC d/b/a SERVPRO WEST COAST and ______________________, agree to the Scope of Work dated ___________________ for the property located at __________________.
SERVPRO:
One Silver Serve, LLC
DBA SERVPRO WEST COAST DRT
By: ______________________________
Name & Title: Todd Resnick SVP
Date: _____________________________
CLIENT:
By: ______________________________
Name & Title _____________________
Date: _____________________________
Insulator $60.00 $67.00 Per Hour
Drywaller/Finisher $87.00 $102.00 Per Hour
Brick Mason $78.00 $90.00 Per Hour
Tile/Flooring Installer $78.00 $87.50 Per Hour
Painter $75.00 $85.00 Per Hour
Equipment Operator $79.00 $94.00 Per Hour
Roofer $110.00 $130.00 Per Hour
HVAC Mechanical $120.00 $144.25 Per Hour
Plumber $115.00 $140.00 Per Hour
Reconstruction Foreman $105.00 $115.00 Per Hour
Carpenter/Framer $90.00 $106.00 Per Hour
Reconstruction Services. See Page 9 for Prime Area Labor Conditions.
Category: Rate: Prime Area Labor Rate: Unit:
Reconstruction Sr. Project Manager $135.00 $154.00 Per Hour Welder $128.00 $135.00 Per Hour
Electrician $125.00 $139.75 Per Hour
Skilled Labor $62.00 $70.00 Per Hour
Project Clerical Administrator $57.00 $60.00 Per Hour
General Labor $42.00 $51.75 Per Hour
Management Fee * (See Page 11) $4.00 $4.00 Per Hour
Consultant/Estimator ** (See Page 11) $105.00 $120.00 Per Hour Content Inventory Supervisor $70.00 $79.50 Per Hour
Remediation Technician $69.00 $82.00 Per Hour
CDL Driver $68.00 $85.00 Per Hour
Restoration Technician $65.00 $75.00 Per Hour
Resource Coordinator/Supply Supervisor $65.00 $72.00 Per Hour Health & Safety Officer $93.00 $107.00 Per Hour
Remediation Supervisor $87.00 $105.00 Per Hour
Technical Specialist $85.00 $107.00 Per Hour
Assistant Project Manager $85.00 $105.00 Per Hour
Restoration Supervisor $77.00 $93.00 Per Hour
Schedule A: Labor
Restoration Services . See Page 9 for Prime Area Labor Conditions.
Category: Rate: Prime Area Labor Rate: Unit:
Project Coordinator $145.00 $165.00 Per Hour
Sr. Project Manager $135.00 $154.00 Per Hour
Project Manager $115.00 $138.00 Per Hour
2024 Page 1 of 13 Initial: _____
Consumables Description: Rate: Unit: Concentrate: Ready to Use:
All Surface Green Clean $3.76 Gallon ●
All Surface Green Clean $56.95 Gallon ●
Benefect Decon 30 $85.41 Gallon ●
Benefect Disinfectant $89.89 Gallon ●
Benefect Disinfectant Wipes $78.49 250 ct ●
BioBlast $139.71 Gallon ●
BioBlast $13.91 Gallon ●
Bright-N-Neutral Cleaner $2.18 Gallon ●
Bright-N-Neutral Cleaner $40.52 Gallon ●
Carpet and Upholstery Green Clean $5.95 Gallon ●
Carpet and Upholstery Green Clean $84.62 Gallon ●
CitraSolvent $115.40 Gallon ●
Citrus Deodorizer, Water-Based $7.97 Gallon ●
Citrus Deodorizer, Water-Based $53.21 Gallon ●
Coil Cleaner $22.75 Aerosol/Can ●
Concrobium ® Disinfectant $73.18 Gallon ●
Defoamer $66.89 Gallon ●
Duct Sealer $95.20 Gallon ●
EASYDECON DF200 $208.05 Kit ●
EnviroShield™ Odor and Stain Blocker $381.02 5 Gallon Pail ● Extreme Laundry Detergent $60.48 9 lb. pail ●
Extreme Laundry Detergent $198.47 35lb pail ●
Fire Star $79.95 Gallon ●
Fire Star $10.04 Gallon ●
Flame Stop $99.55 Gallon ●
Furniture Polish $18.26 Aerosol/Can ●
Glass Cleaner, Multi-Purpose $8.95 Aerosol/Can ●
Glass Cleaner, Ready-To-Use $24.25 Gallon ●
Glass Cleaner, Super Concentrate $91.32 Gallon ●
Heavy Duty Degreaser $4.25 Gallon ●
Heavy Duty Degreaser $41.84 Gallon ●
Husky 815 HCD Disinfectant $139.71 Gallon ●
Industrial Cleaner $3.89 Gallon ●
Industrial Cleaner $54.67 Gallon ●
Lemon Fresh Deodorizer $3.39 Gallon ●
Lemon Fresh Deodorizer $83.70 Gallon ●
Lemon Oil Polish $70.64 Gallon ●
Liquid Emulsifier $53.34 Gallon ●
Powdered Emulsifier $82.49 Gallon ●
Pre-Spray & Traffic Lane Cleaner $5.34 Gallon ●
Pre-Spray & Traffic Lane Cleaner $73.60 Gallon ●
Schedule B: Consumables
Cleaning/Disinfectant
2024 Page 2 of 13 Initial: _____
Consumables Description: Rate: Unit: Concentrate: Ready to Use:
Rusticide $35.56 Quart ●
SERVPRO Green $28.68 Gallon ●
SERVPRO Green $2.40 Gallon ●
SERVPRO Orange $55.93 Gallon ●
SERVPRO Orange $3.86 Gallon ●
SERVPRO Orange Plus $75.91 Gallon ●
SERVPRO Orange Plus $4.83 Gallon ●
ServprOXIDE $68.89 Gallon ●
Shampoo Super Concentrate $3.21 Gallon ●
Shampoo Super Concentrate $80.68 Gallon ●
Smoke Deodorizer $151.63 Gallon ●
Smoke Deodorizer $4.84 Gallon ●
Solvent Additive $110.07 Gallon ●
Solvent Additive $6.89 Gallon ●
Sporicidin $76.08 Gallon ●
Stainless Steel Cleaner $16.21 Aerosol/Can ●
Stone and Porcelain Cleaner $45.60 Gallon ●
Stone and Porcelain Cleaner $2.90 Gallon ●
Tile & Grout Cleaner $38.05 Gallon ●
Tile & Grout Cleaner $2.52 Gallon ●
Ultra Content CleanER $67.25 Gallon ●
Ultra Content CleanER $4.23 Gallon ●
Ultrasonic Cleaning Agent $58.67 Gallon ●
Ultrasonic Cleaning Agent $3.63 Gallon ●
Upholstery/Drapery Solvent, Heatable $74.15 Gallon ●
Vanquish (Cannot be used in California) $63.38 Gallon ● Vanquish (Cannot be used in California) $1.21 Gallon ●
Wall and All Plus $63.60 Gallon ●
Wall and All Plus $4.25 Gallon ●
Wall and All Surface Cleaner $54.19 Gallon ●
Wall Rinse $56.85 Gallon ●
Window Green Clean $25.16 Gallon ●
Wintergreen Deodorizer $65.08 Gallon ●
Wintergreen Deodorizer $4.54 Gallon ●
Cleaning/Disinfectant (continued)
Schedule B: Consumables
2024 Page 3 of 13 Initial: _____
Consumables Description: Rate: Unit:
Eco Board Floor Protection 38" x 100' $168.62 Each
Floor Protection 15" x 1,100' - Roll $281.72 Each
Plastic Sheeting .31 mil - 12' x 400' - Roll $59.94 Each Plastic Sheeting 4 mil - 20' x 100' - Roll $139.98 Each Plastic Sheeting 6 mil - 20' x 100' - Aniti Static Roll $309.21 Each Plastic Sheeting 6 mil - Fire Retardant Black 20' x 100' - Roll $411.84 Each Plastic Sheeting Hangers - Blue $611.39 Case
Box - Large $6.91 Each
Box - Legal Size (1.2 cubic feet) $7.55 Each
Box - Medium $6.16 Each
Box - Small $5.49 Each
Foam / Wood Blocks $83.92 Box
Moving Blankets - One time use only $5.40 Each
Packing Paper (26" x 24" - 140 ct - recycled) $47.93 Box/50lb Tacky Mats 37" x 26" PAD/30 $153.45 Each
Tarp (per square ft) $0.61 Each
Wrap - Bubble /Anti Static $98.75 Roll
Wrap - Stretch $68.95 Roll
Filter - Activated Carbon 500 cfm $86.71 Each
Filter - Air Scrubber 500 cfm - HEPA $284.93 Each
Filter - Air Scrubber 500 cfm - Secondary $22.65 Each
Filter - Air Scrubber 500 cfm - Prefilter $11.95 Each
Filter - Air Scrubber 1000 cfm - HEPA $308.69 Each
Filter - Air Scrubber 1000 cfm - Prefilter $10.95 Each
Filter - Air Scrubber 1000 cfm - Secondary $17.25 Each
Filter - Air Scrubber 2000 cfm - HEPA $398.90 Each
Filter - Air Scrubber 2000 cfm - Prefilter $8.25 Each
Filter - Air Scrubber 2000 cfm - Secondary per 12 pack $176.49 Each Filter - Activated Carbon 2000 cfm $213.09 Each
Filter - Back Pak Vacuum Kit $44.53 Each
Filter - Desiccant Dehumidifier - 5000 cfm $18.16 Each
Filter - Refrigerant Dehumidifier - 754 $39.25 Each
Filter - Upright Vacuum $4.95 Each
Filter - Wet/Dry Vacuum, non-HEPA $28.61 Each
Filter Material, Poly Rolled Medium $44.87 Box
Vacuum Cleaner Bags $21.71 Pak/10
Vacuum Cleaner Bags - Back Pack HEPA $44.07 Pak/10
Vacuum Cleaner Bags - Canister HEPA $32.64 Pak/6
Filters
Containment
Contents
Schedule B: Consumables
2024 Page 4 of 13 Initial: _____
Consumables Description: Rate: Unit:
Carpet Protection Film 2' x 200' $95.66 Each
Cleaning Rags $7.67 Per lb.
Cleaning Towel $13.25 Dozen
Cleaning Towel (Microfiber) $53.95 Dozen
Cotton Mop Head $14.79 Each
Dusting Cloth - Masslin treated $63.90 50/Bag
Lay Flat (Roll - 250' x 14") $143.86 Each
Lay Flat (Roll - 500' x 33") $819.16 Each
Rayon Mop Head $23.35 Each
Shoe Covers $119.48 150/Case
Sponge Dry Clean $227.77 48/Case
Trash Bags - Contractor 3 mil $54.25 Box 50
Trash Bags - Environmental 6 mil $62.75 Box 20
Wall Zippers (2 pack) $36.56 Each
Zip Ties 14" - Industrial $25.83 Pak/20
Zip Ties 36" - Industrial $41.24 Pak/10
Zip Ties 48" - Industrial $55.44 Pak/10
Gloves - Cotton $2.80 Each
Gloves - Leather Safety/Work $115.08 Dozen
Gloves - Nitrile/Latex $46.95 Box/100
Hearing Protection $30.54 20/box
Respirator - Full or Half Mask $33.00 Each
Respirator - N 95 $6.25 Each
Respirator Cartridges - Ammonia $29.50 Each
Respirator Cartridges - Organic $27.50 Each
Safety Goggles (Chemical Splash) $24.20 Each
Safety Glasses $6.00 Each
Safety Vest/Hard Hat Combo $5.00 Each
Tyvek (Bio-Shield Coveralls) $23.98 Per Suit/Exchange
Spray Adhesives $18.25 Aerosol/Can
Tape - Caution 3" x 1000' HDX $29.70 Roll
Tape - Duct - 2" x 60 yrds. $13.19 Roll
Tape - HVAC 2" x 50 yrds. $25.17 Roll
Tape - Painter (Blue) 2" x 60yrds. $15.78 Roll
Tape - Poly/Box - 2" x 109 yrds. $9.75 Roll
Schedule B: Consumables
Tapes/Adhesives
Safety
Miscellaneous/General
2024 Page 5 of 13 Initial: _____
Equipment Description: Rate: Unit:
Air Compressor - Portable $42.00 Each/Day
Air Mover - Axial $44.00 Each/Day
Air Mover - Carpet $30.00 Each/Day
Air Scrubber - 2000 cfm $165.00 Each/Day
Air Scrubber - 1000 cfm $128.00 Each/Day
Air Scrubber - 500 cfm $90.00 Each/Day
Electrostatic Sprayer $125.00 Each/Day
Fogger/Macromist $60.00 Each/Day
Fogger/Thermal $140.00 Each/Day
Media Blasting Machine $475.00 Each/Day
Pressure Washer - Hot $180.00 Each/Day
Insulation Vacuum $357.50 Each/Day
Orbital Floor Machine $46.75 Each/Day
Portable Carpet Machine $357.50 Each/Day
Portable Extractor $225.00 Each/Day
Portable Fuel Cells $27.50 Each/Day
Pump - Sump (Gas) $175.00 Each/Day
Pump - Trash (2" to 4") $150.00 Each/Day
Truck Mount Carpet/Extraction Machine $522.50 Each/Day
Rover Extraction Unit $220.00 Each/Day
Ultrasonic Cleaning Machine $412.50 Each/Day
Vacuum - Upright Vacuum Cleaner $26.25 Each/Day
Vacuum - Back Pack, or Canister HEPA $115.00 Each/Day
Vacuum - Wet/Dry $55.00 Each/Day
Vapor Shark $70.00 Each/Day
Camera - Infrared/Thermal Imaging $50.00 Each/Day
LGR Dehumidifier - Commercial (100 and over PPD) $150.00 Each/Day LGR Dehumidifier - Commercial (100 and under PPD) $125.00 Each/Day Desiccant -to 1000 cfm $475.00 Each/Day
Desiccant - 2,000/2250 cfm $690.00 Each/Day
Desiccant - 3,500 cfm $1,225.00 Each/Day
Desiccant - 5,000 - 6,000 cfm $1,625.00 Each/Day
Desiccant - 10,000 / 12,000cfm $2,775.00 Each/Day
Desiccant - 15,000 cfm $4,450.00 Each/Day
5000 cfm Desiccant Package Unit (**) $2,860.00 Each/Day Desiccant Door Kit - Total/one time charge $325.00 Per Opening Dry Force Injectidry (Wall Cavity) $145.00 Each/Day
DX Unit - 1 Ton $302.50 Each/Day
DX Unit - 20/30 Ton $1,495.00 Each/Day
DX Unit - 60 / 70 Ton $2,275.00 Each/Day
Flex Duct $27.50 Each/Day
Temporary Heat: 150k-200k BTU $825.00 Each/Day
Temporary Heat: 200k-300k BTU $1,155.00 Each/Day
Temporary Heat: 300k-450k BTU $1,375.00 Each/Day
Schedule C: Equipment
Drying Equipment
Cleaning/Vacuum Extraction
Blast/Power Wash Units
Air Mover/Compressor
2024 Page 6 of 13 Initial: _____
Equipment Description: Rate: Unit:
HVAC Cleaning Package (**) $616.00 Each/Day
Video Inspection $300.00 Each/Day
Airless Sprayer $125.00 Each/Day
Hydroxyl $235.00 Each/Day
Ozone Generator - Activated Oxygen $142.00 Each/Day
Cable - 100 ft. $38.50 Each/Day
Cable - 50 ft. $30.25 Each/Day
Cable Ramps $17.55 Each/Day
Generator Cable - 5 Band $82.50 Each/Day
Generator - 20kW $410.00 Each/Day
Generator - 36kW $599.50 Each/Day
Generator - 50kW $797.50 Each/Day
Generator - 100kW $915.00 Each/Day
Generator - 150kW $1,100.00 Each/Day
Generator - 200kW $1,300.00 Each/Day
Generator - 300kW $1,550.00 Each/Day
Generator - 500kW $2,700.00 Each/Day
Generator - 1,000kW $5,670.00 Each/Day
Generator - Portable $175.00 Each/Day
Power Distribution, 100-200 Amp $148.00 Each/Day
Spider Box (With Cable) $80.00 Each/Day
DocuSketch™ or Matterport™ Imaging Cameras $300.00 Each/Day Demo Carts $25.00 Each/Day
Floor Scraper - Electric $125.00 Each/Day
Lighting - 100' String Lights $25.00 Each/Day
Lighting - 50' String Lights $16.00 Each/Day
Lighting - Demo Lights $25.00 Each/Day
Lighting - Tower Mobile $168.00 Each/Day
Lighting - Wobbles $48.50 Each/Day
Lock-Out/Tag-Out Kit $25.00 Each/Day
Personal Fall Protection (With Lanyard) $12.00 Each/Day Scaffolding, Bakers (Per Section) $42.50 Each/Day
Golf Cart/Gator $50.00 Each/Day
Vehicle - Auto/Pick-up $100.00 Each/Day
Vehicle - Box Truck $175.00 Each/Day
Vehicle - Cargo/Passenger Van $130.00 Each/Day
Vehicle - Mobile Command Center $550.00 Each/Day
Vehicle - Onsite Recovery Trailer (53') $300.00 Each/Day Vehicle - Semi-Tractor $375.00 Each/Day
Vehicle - Trailer/ Flatbed $140.00 Each/Day
Odor Control
HVAC
Schedule C: Equipment
Trailers/Vehicles
Safety/Site Services
Power
2024 Page 7 of 13 Initial: _____
Adjustable
Wrenches/Pliers Extension Cords Smocks, Vests and T-
Shirts
Bar - Flat Pry Fire Extinguishers Spray Bottles/Triggers Barrel Pumps First Aid Kits Squeegees
Blades (Replacements) Flash Lights Moisture Meters Staple Guns Bolt Cutters Fuel Cans Mop Buckets, Handles
and Wringers Tables
Brooms Funnels O2 Meters Tape Gun
Brushes (All types) Gang Boxes Pallet Jacks (All types) Thermo Hygrometer Buckets (All types) Generator Aux.
Adapter Power Hand Tools Tool Box
Bulbs (Replacements) GFI Scraper Pump Sprayers (All types) Tool Kit (Mechanical) Cell Phones Hammers Putty Knife Trash Barrel
Chains/Locks Hand Sanitizer Repair Kit - Hose, Airless, Electric
Chain Saws Hog Rings Rope 50" (Nylon, Hemp)
Chairs Ice Chests Roto Zips Unger Poles
Chalk/Chalk Line Inventory Tags Sanders Utility Knives
Demo Tools Step Ladders (All sizes) Saws (All types) Wheelbarrows Dolly/Hand Truck Screw Drivers
Drills/Drill Bit Set Scrapers
Electric Heaters < 15kw Shovels
Two Way or Portable Radios,
Communication Devices
Schedule C: Equipment
Small Tools (See page 9)
Mobile Office Equipment (Laptops,
Monitors, Printers, Scanners,
Tablets, etc.)
Laundry cost for reuse of rags will
be paid at cost plus 10%.
2024 Page 8 of 13 Initial: _____
Labor Conditions:
Labor Classifications and Rates – listed on Page 1 apply to personnel engaged to provide services. Whether regular full- time employees of SERVPRO franchisees, temporary labor engaged directly by SERVPRO franchises or personnel secured through a labor service or vendor source. We reserve the right to revise any of the rates herein upon written notice when the project is affected by market conditions beyond our control and/or availability, during large national and region-wide extraordinary events, as declared by Servpro Industries. These include, but are not limited to: epidemics, pandemics, storms, catastrophes, hurricanes, floods, earthquakes, wildfires and tornadoes.
Standard Rates – the rates on Page 1 are “standard rates” and apply during a standard 8-hour work day, Monday through Friday between the hours of 8am and 5pm. Donning and doffing PPE and any necessary personnel decontamination will be charged actual time.
Overtime Rates – will be billed for all labor classifications at the rate of 1.5 times the standard rate per hour after normal business hours- 8am - 5pm Mon-Fri or on the same project in excess of 40 hours per week , and on weekends, as required by applicable law. Hours worked by personnel on the following holidays will be charged at 2 times the standard rate: New Year’s Day, Easter, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, the day after Thanksgiving, Christmas Eve and Christmas Day. If a state or local authority imposes more stringent overtime requirements, including holidays, those will apply. Other than performing Emergency Services, overtime must have client approval.
Mobilization/Travel – time for all personnel including, without limitation, managers, crew, labor subcontractors and other subcontractors will be billed portal to portal (office/warehouse to job site and return) at the rates set forth above. With a strong nationwide network, we will attempt to mobilize qualified personnel and equipment as near to the loss site as we can. Client is also responsible for the mobilization and return costs of vehicles, equipment and trailers over 75 miles one way.
Stand-by – When circumstances beyond our control require personnel and/or equipment to be delayed from beginning or continuing work, the rates herein per hour will be charged for personnel and equipment, with a minimum of 6 hours for personnel, and all labor associated fees will apply.
Prime Area Labor Rates – will be applied to projects within 75 miles from the center of the following areas: Boston, Chicago, Denver, Minneapolis, New York City, Washington, D.C. and within the entire states of Alaska, California, Hawaii, Oregon, Washington and all U.S. Territories. Prime Area Labor Rates may also apply during large national and region-wide extraordinary events, as declared by Servpro Industries. These include, but are not limited to: epidemics, pandemics, storms, catastrophes, hurricanes, floods, earthquakes, wildfires and tornadoes, where labor availability is compromised and/or due to market conditions beyond our control. In the event where the above Prime Area Labor Rates are applied outside of the areas listed above the client must approve prior to.
Prevailing, Union, State and Government Wages – Labor which is subject to prevailing wage, unionized labor, state and government or any other extraordinary local labor conditions. In such events, Labor will be charged at presented invoice plus 35%..
Small Tools Charge – of 3% applies to all labor of Restoration Tech and below that are assigned to the project full time and includes all listed items on Page 8.
Subcontracted General Labor – includes outside labor services provided as needed for the scope of the project: will be charged at the current rates on page 1 ; plus all other applicable labor billable items including, but not limited to, per diem, small tools, vehicles, mileage, lodging, as set forth herein and as applicable to the project.
Specialty and Licensed Trades – include but are not limited to electrical, plumbing, mechanical, roofers, engineers, architects, and other specialty trades, and will be charged at presented invoice plus 10% overhead and 10% profit.
Safety officers – shall be charged as needed for the project and upon notification to client. 2024 Page 9 of 13 Initial: _____
Restoration Services Labor Descriptions:
Project Coordinator – coordinates activities and assignments of designated projects to ensure that goals and objectives specified for the projects are accomplished. Job Responsibility Examples: Ensure Corporate Reporting (CLLD); Review Project Burn Reports; Review status of jobs in progress; inspect all projects in progress; assist with project scope and estimate as necessary; meet with Adjuster/Consultant/Insured to review progress and provide dispute resolution and job site inspections and all appropriate permits are in place, if applicable.
Sr. Project Manager – for extremely large projects requiring multiple Project Managers, a Senior Project Manager draws communication responsibilities with the materially interested parties away from the PMs, so they can better focus on task completion and documentation of their assigned project. Job Responsibility Examples: Job site inspection; prepare daily work orders; morning meeting with PM's; oversee morning line-up; meeting with Project Clerical Administrator to review previous days paperwork and ensure insurance company receives proper documentation; meeting with Insured/Adjuster/Consultant to review progress; troubleshoot issues as necessary; complete daily checklist and job diary; review end of shift paperwork with APM for accuracy; daily meeting with PC; and ensures daily reporting to all stakeholders.
Project Manager – directs all operations of a designated project and provides the primary single point of contact for all materially interested parties. The PM is accountable for the project's execution and completion. Job Responsibility Examples: Jobsite inspection; prepare Daily Work Orders; morning meeting with APM, HSO & RC; oversee morning line- up; meet with Project Clerical Administrator to review previous day's paperwork and ensure insurance company receives proper documentation; meet with Insured/Adjuster/Consultant to review progress; troubleshoot issues as necessary; complete Daily Checklist and Job Diary; review end-of-shift paperwork with APM for accuracy; daily meeting with PC and ensures daily reporting to all stakeholders.
Health & Safety Officer – identifies, evaluates, and implements policy and procedures that affect health and safety aspects for all personnel on the jobsite. Job Responsibility Examples:
Morning meeting with PM; morning Safety Meeting
at line-up; continuous site inspections for safety infractions; ensure all safety boards are in place and satisfy all SERVPRO standards; incident reports as necessary; OSHA inspections as necessary; job site safety training, as necessary.
Remediation Supervisor – Has developed expertise through project experience and supervises the General Laborers (GL) to maintain quality production but does not participate in the physical completion of tasks, other than training and coaching the General Laborers performing the work.
Technical Specialist – handles specific specialty restoration services or tasks, such as thermal imaging or 3D geospatial scans of a structure and is a technical advisor in specialty restoration services.
Assistant Project Manager – executes the production plan (based on work orders and the direction of the Project Manager) by coordinating Restoration Supervisors (RS) and labor while assuring safety compliance and quality of production. Job Responsibility Examples: Job site inspection with PM; morning meeting with Restoration Supervisors; issue Daily Work Orders; morning line-up; on-going quality inspections; end-of-shift meeting with Restoration Supervisors; collect daily paperwork and review for accuracy; review end-of-shift paperwork with PM. 2024 Page 10 of 13 Initial: _____
Restoration Services Labor Descriptions:
Restoration Supervisor – Has developed expertise through project experience and supervises all labor classifications to ensure quality production but does not participate in the physical completion of tasks, other than training and coaching the those performing the work.
Content Inventory Supervisor – is responsible for tracking and documenting all aspects of the contents handling and processing on a project. This supervisor will manage teams within the structure/project and audit documentation and reports and provide them on a daily basis for the project file.
Remediation Technician – performs skilled production tasks and has training to work in specialized environments which may require additional PPE, safety gear. and communication techniques.
CDL Driver – is responsible for transportation involving vehicles that require CDL license.
Restoration Technician – performs skilled restoration tasks.
Resource Coordinator/Supply Supervisor – identifies, negotiates and secures needed resources including labor, equipment, and subcontractors. Job Responsibility Examples: Morning meeting with PM; purchase subcontractor services as requested by PM; issue purchase orders as requested by PM; oversee subcontractor services; general site services oversight; evening meeting to review daily paperwork with PM.
Skilled Labor – has developed expertise through project experience such as boarding up structures, the building temporary walls, erecting containment, and making precision cuts to building materials. This may also include the operation of specialty equipment (i.e. power tools, forklifts, and specialty restoration equipment) and work performed at high risk or height and providing specialized content packing and handling.
Project Clerical Administrator – collects, compiles and validates all documentation and financial information for the project. Job Responsibility Examples: attending the morning meeting with PM to review previous day’s paperwork; data entry for all paperwork into Time and Materials Management (T&M) Software; reconcile invoices to tickets.
General Labor – perform labor tasks and are capable of using basic hand tools.
Management Fee – is charged for supervising and training labor provided by the customers employee pool. At times we are asked or required to utilize the customers employees to utilize certain task and this fee is a per employee supervisor fee.
Project Consultant/Estimator – may be billed at the request or the invitation of a customer/client to provide consulting services, including detailed estimates on third party projects. 2024 Page 11 of 13 Initial: _____
Consumables Conditions:
Client will be notified of non-scheduled consumables needed for the project, which will be charged at presented invoice plus 10% overhead and 10% profit.
We may add additional consumables, materials and corresponding rates to this schedule as needed for individual projects upon written notice which will be charged at presented Invoice plus 10% overhead and 10 % profit.
Equipment Conditions:
Daily Rate – is charged for each calendar day equipment is utilized on a project, whether partial or full day.
Quick Pay Discount – full payment made within 30 days of invoice applies as follows: Page 6 only. ● Weekly rate of the first 5 consecutive days of the same week (no charge for last 2 days), and ● Monthly rate of 3 consecutive weeks (21 Days) of a monthly period (no charge for the fourth/last week).
Vendors – for on-site services, such as fencing, porta johns, dumpsters and office trailers will be charged at presented invoice plus 10% overhead and 10% profit.
Generators – will have a minimum charge of 1 daily rate plus all costs incurred if power is restored upon or prior to arrival, or client cancels generator order. Service Provider makes no guarantee on timelines for generator availability during a catastrophic event or other circumstances beyond our control.
Fuel – scheduled prices do not include fuel or fuel delivery, which will be charged at presented invoice plus 10% overhead and 10% profit.
Ordered, Purchased and Unscheduled (additional) Equipment – Client will be notified of any additional unscheduled equipment needed for the project and rented from third parties or purchased, which will be charged at presented invoice plus 10% overhead and 10% profit, with minimum of 1 day rental, plus any related charges including, without limitation, transportation and fuel as set forth herein.
Equipment Transportation – will be billed for delivery to project site and return by 3rd party vendors at presented invoice plus 10% overhead and 10% profit. Transportation provided by Service Provider staff will be invoiced at scheduled rates herein.
**Desiccant Package Unit – 5k Desiccant, 150kW Generator, Fuel Cell, Trailer, Distro Panel, Flex Duct/1 set, Power Cables/1 set.
**HVAC Cleaning Package – Negative Air Machine, Compressor, Portable Cleaner, and WIP Kit.
CAT - 3% Off-Site Logistical/Mobilization Support – services include, without limitation, off-site management, mobilization of project office, communication support, specialty office equipment/supplies, technicians, administrative support staff, other costs of project support and administrative allowances that support field operations before and after the project start/completion date, which will be billed at 3% of the total charges for the project, excluding reimbursables expenses, subcontractor invoices and third party vendor invoices. This should only be considered in a large national and region-wide extraordinary events, as declared by Servpro Industries.
These include, but are not limited to: epidemics, pandemics, storms, catastrophes, hurricanes, floods, earthquakes, wildfires and tornadoes. Written approval from the client and Servpro Industries Commercial Large Loss Division is required.
2024 Page 12 of 13 Initial: _____
Client's Signature: Provider's Signature:
Client Printed Name: Franchise Legal Name:
Project Address: d/b/a SERVPRO® of:
Provider is an independently owned and operated SERVPRO franchise.
City, State and Zip:
Taxes – the rates herein are exclusive of federal, state and local sales, use or similar taxes, which will be separately itemized in the invoice and paid by Client.
Permits – the rates herein do not include permit costs and fees, which will be billed with 10% overhead and 10% profit added.
Bonding – may be applicable upon mutual agreement and will be invoiced at 5% of project.
Other Servpro franchisees – Client acknowledges and agrees that other Servpro franchisees may be utilized to provide necessary services; provided, however, the undersigned Provider shall be responsible for their performance and shall make payment once received from Client.
Scope – Upon arrival on site, Provider will assess the loss and begin Emergency Services, which are those needed, recommended and approved to stabilize the environment/property and help prevent additional damage. Service Provider will use best efforts to communicate a preliminary scope within 72 to 96 hours after on-site arrival, subject to supplements, revisions and change orders as circumstances and later discoveries
indicate.
Invoices – will be submitted periodically for work that has been performed on larger projects as mutually agreed. The final invoice shall be submitted within 30 days of project completion, unless delayed by events beyond our control. All invoices are due and payable upon receipt and will be deemed late 30 days after receipt. If there are any disputed charges on any invoices, these must be clearly identified in writing within 30 days of receipt of invoice; provided, however, that any amounts not disputed in good faith must be paid within 30 days of receipt of invoice. Both parties shall use best efforts to resolve any such disputed amounts within 30 days after written notice. Interest charges will begin to accrue after 30 days of receipt of invoice for undisputed amounts and 90 days for such disputed amounts at the rate of 1% per month or the maximum amount allowed by law, whichever is lower. Client agrees to pay Service Provider’s attorney’s fees for cost of
collections.
Contract - This contract is intended to be a lump sum contract.
Date:
General Conditions:
Mobilization/Travel – for projects located over 75 miles one way will be charged to project as follows: Hotel at presented invoice; per diem at $60 per person per day; rented vehicles at presented invoice; SERVPRO charges this daily rate whether the per diem is paid directly to the person. Airfare at presented invoice;Transportation for equipment and materials utilized for the benefit of the project at presented invoice; Meals for general labor at actual cost. All of the above will be charged at presented invoice plus 10% overhead and 10% profit.
2024 Page 13 of 13 Initial: _____
EXHIBIT “B”
Terms for Compliance with California Labor Law Requirements
1. If this Agreement calls for services that, in whole or in part, constitute “public works” as defined in Division 2, Part 7, Chapter 1 (commencing with Section 1720) of the California Labor Code (“Chapter 1”) , the CONTRACTOR acknowledges that this Agreement is subject to (a) Chapter 1 and (b) the rules and regulations established by the Department of Industrial Relations (“DIR”) implementing such statutes.
Therefore, as to those Services that are “public works”, the CONTRACTOR shall comply with and be bound by all the terms, rules and regulations described in 1(a) and 1(b) as though set forth in full herein.
2. California law requires the inclusion of specific Labor Code provisions in certain contracts. The inclusion of such specific provisions below, whether or not required by California law, does not alter the meaning or scope of Section 1 of this Exhibit, above.
3. The CONTRACTOR shall be registered with the Department of Industrial Relations in accordance with California Labor Code Section 1725.5 and has provided proof of registration to City prior to the Effective Date of this Agreement.
CONTRACTOR shall not perform work with any sub -CONTRACTOR that is not registered with DIR pursuant to Section 1725.5. CONTRACTOR and sub - CONTRACTORs shall maintain their registration with the DIR in effect throughout the duration of this Agreement. If the CONTRACTOR or any sub -CONTRACTOR ceases to be registered with DIR at any time during the duration of the project, CONTRACTOR shall immediately notify City.
4. Pursuant to Labor Code Section 1771.4, the CONTRACTOR’s Services are subject to compliance monitoring and enforcement by DIR. CONTRACTOR shall post job site notices, as prescribed by DIR regulations.
5. Pursuant to Labor Code Section 1773.2, copies of the prevailing rate of per diem wages for each craft, classification, or type of worker needed to perform the Agreement are on file at City Hall and will be made available to any interested party on request. The CONTRACTOR acknowledges receipt of a copy of the DIR determination of such prevailing rate of per diem wages, and the CONTRACTOR shall post such rates at each job site covered by this Agreement.
6. The CONTRACTOR shall comply with and be bound by the provisions of Labor Code Sections 1774 and 1775 concerning the payment of prevailing rates of wages to workers and the penalties for failure to pay prevailing wages. The CONTRACTOR shall, as a penalty to City, forfeit $200.00 for each calendar day, or portion thereof, for each worker paid less than the prevailing rates as determined by the DIR for the work or craft in which the worker is employed for any public work done pursuant to this Agreement by CONTRACTOR or by any sub-contractor.
7. The CONTRACTOR shall comply with and be bound by the provisions of Labor Code Section 1776, which requires the CONTRACTOR and each sub - contractor to: keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776; certify and make such payroll records available for inspection as provided by Section 1776; and inform City of the location of the records.
8. The CONTRACTOR shall comply with and be bound by the provisions of Labor Code seq. concerning the employment of apprentices on public works projects.
CONTRACTOR shall be responsible for compliance with these aforementioned Sections for all apprenticeable occupations. Prior to commencing work under this Agreement, the CONTRACTOR shall provide City with a copy of the information submitted to any applicable apprenticeship program. Within 60 days after concluding work pursuant to this Agreement, CONTRACTOR, and each of its sub -contractors shall submit to City a verified statement of the journeyman and apprentice hours performed under this Agreement.
9. The CONTRACTOR shall not perform Work with any sub-contractor that has been debarred or suspended pursuant to California Labor Code Section 1777.1 or any other federal or state law providing for the debarment of CONTRACTORs from public works. The CONTRACTOR and sub-contractors shall not be debarred or suspended throughout the duration of this Contract pursuant to Labor Code Section 1777.1 or any other federal or state law providing for the debarment of CONTRACTORs from public works. If the CONTRACTOR or any sub -contractor becomes debarred or suspended during the duration of the project, the CONTRACTOR shall immediately notify City.
10. The CONTRACTOR acknowledges that eight hours labor constitutes a legal day’s work. The CONTRACTOR shall comply with and be bound by Labor Code Section 1810. CONTRACTOR shall comply with and be bound by the provisions of Labor Code Section 1813 concerning penalties for workers who work excess hours.
The CONTRACTOR shall, as a penalty to City, forfeit $25.00 for each worker employed in the performance of this Agreement by the CONTRACTOR or by any sub-contractor for each calendar day during which such worker is required or permitted to work more than eight hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Division 2, Part 7, Chapter 1, Article 3 of the Labor Code. Pursuant to Labor Code section 1815, work performed by employees of the CONTRACTOR in excess of eight hours per day, and 40 hours during any one week shall be permitted upon public work upon compensation for all hours worked in excess of eight hours per day at not less than one and one -half times the basic rate of pay.
11. California Labor Code Sections 1860 and 3700 provide that every employer will be required to secure the payment of compensation to its employees. In accordance with the provisions of California Labor Code Section 1861, the CONTRACTOR hereby certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self -insurance in accordance with the provisions of that code, and I will comply with such provisions before commencing the performance of the work of this contract.”
12. For every sub -contractor who will perform work on the project, CONTRACTOR shall be responsible for such sub -contractor’s compliance with Chapter 1 and Labor Code Sections 1860 and 3700, and CONTRACTOR shall include in the written contract between it and each sub -CONTRACTOR a copy of those statutory provisions and a requirement that each sub -contractor shall comply with those statutory provisions. The CONTRACTOR shall be required to take all actions necessary to enforce such contractual provisions and ensure sub-contractor’s compliance, including without limitation, conducting a periodic review of the certified payroll records of the sub -contractor and upon becoming aware of the failure of the
sub-contractor to pay his or her workers the specified prevailing rate of wages.
CONTRACTOR shall diligently take corrective action to halt or rectify any failure.
13. To the maximum extent permitted by law, CONTRACTOR shall indemnify, hold harmless and defend (at CONTRACTOR’s expense with counsel reasonably acceptable to City) City, its officials, officers, employees, agents and independent CONTRACTORs serving in the role of City officials, and volunteers from and against any demand or claim for damages, compensation, fines, penalties or other amounts arising out of or incidental to any acts or omissions listed above by any person or entity (including CONTRACTOR, its sub -contractors, and each of their officials, officers, employees and agents) in connection with any work undertaken or in connection with the Agreement, including without limitation the payment of all consequential damages, attorneys’ fees, and other related costs and expenses. All duties of CONTRACTOR under this Section shall survive the termination of the Agreement.
EXHIBIT “C”
Live Scan Fingerprinting Requirements
Prior to commencing services, the CONTRACTOR may be required to successfully pass a Department of Justice fingerprinting background check (“Live Scan”) performed by a certified fingerprinting service provider or at the City of Montebello Police Department. The CONTRACTOR shall be responsible for obtaining the Live Scan for its staff and shall bear the cost thereof. The agency completing the fingerprints must provide the City of Montebello Human Resources with the background check results and subsequent records for review. The CONTRACTOR must obtain a “Temporary CONTRACTOR’s Badge” issued by the City of Montebello Human Resources prior to performing work.
ITEM # 25
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: Michael Solorza, Director of Finance
SUBJECT: RECEIVE AND FILE THE FISCAL YEAR 2022-23 ANNUAL
COMPREHENSIVE FINANCIAL REPORT (ACFR)
DATE: June 26, 2024
RECOMMENDATION(S):
It is recommended that the City Council:
1. Receive and file the Fiscal Year 2022-23 Annual Comprehensive Financial Report (ACFR); and
2. Take such additional, related action that may be desirable.
BACKGROUND/DISCUSSION:
Each year the City produces an Annual Comprehensive Financial Report (ACFR) that presents audited financial results as of June 30 of the prior fiscal year. Staff is presenting the ACFR for the fiscal year ended June 30, 2023. The City engages a third-party audit firm (PUN Group) to review all financial transactions, produce various statements, ensure compliance with Governmental Accounting Standards Board (GASB) statements, assist staff in compiling the ACFR document, review sample transactions and internal controls and provide an opinion on the accuracy and validity of the financial statements.
The auditors have provided an “un-qualified” opinion for the Fiscal Year 2022-23 report. In other words, this is a “clean” audit with no significant findings that would cause the auditors to render a “qualified” opinion:
“In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental
CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 26, 2024
activities, the business-type activities, each major fund, and the aggregate remaining fund information of the City, as of June 30, 2023, and the respective changes in financial position and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America.”
The ACFR is a document that tells “what happened” in the prior fiscal year, as opposed to a budget which is a plan for the upcoming fiscal year. There are statements, notes and financial schedules of required information that provide the reader a comprehensive view of revenues, expenses, assets, liabilities, cash and investments, debt, pension liabilities, and other financial data across the entire organization. There are also statistical tables which present a more complete (non-financial) picture of Montebello.
The Transmittal Letter (Attachment A) and Management Discussion and Analysis (MD&A) (Attachment B) provide extensive detail and discussion of the financial statements and are included in the final published ACFR document – which is available in its entirety on the City’s website. The extensive Notes section of the ACFR is also useful in providing a more complete explanation of the various financial aspects of the City, adding descriptions and explanations to the myriad schedules and tables.
This agenda report provides a summary of the document and does not replace a thorough review and understanding of the entire ACFR, which can be found on the City's website (www.montebelloca.gov).
ENVIRONMENTAL:
N/A
ANALYSIS:
The ACFR presents information by type of fund, with the two most significant groupings of funds being Governmental Activities and Business-type Activities. Governmental Activities includes the General Fund as well as special funds: Gas Tax, Proposition A, Proposition C, Retirement Fund, and the various (non-Transit) Grant Funds. Business- type Activities includes Transit, Golf Course, Water, Hilton Garden Inn and Home2Suites.
Included in the financial statements for both Governmental and Business-type funds is not only revenue and expenditures, but liabilities related to bond debt, pension and retiree medical liabilities, assets such as land, buildings and equipment, and other useful information designed to give the reader a clear picture of the City’s overall financial condition. The following pages provide an overview of major items found in the complete ACFR document (which can be found on the City’s website).
Government-wide Overview
The government-wide financial statements provide both long-term and short-term information about the City's overall financial position. The statement of net position includes all of the City’s assets, deferred outflows of resources, liabilities and deferred
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inflows of resources. The City’s net position is a useful measurement of its financial health. Net position can be tracked over time to assess whether the City’s financial health is improving or deteriorating.
The City’s total net position was $68.620 million as of June 30, 2023, an increase (improvement) of $37.808 million compared to the net position of $30.812 million in FY 2021-22. Total assets increased $132.532 million ($554.222 million from $421.690 million).
Highlights of the key elements impacting the City’s net position for the fiscal year ended June 30, 2023, are as follows:
• Governmental Activities total revenues including transfers exceeded total expenses by $17.464 million ($120.357 million in revenue vs. $102.893 million in expenses). The total positive change to net position was $17.466 million.
• Business-type Activities total revenues including transfers exceeded total expenses by $20.344 million ($83.186 million in revenues vs. $62.842 million in expenses), with the change in net position after transfers a positive $20.344 million.
• Total Citywide expenses before transfers were $165.735 million, an increase of approximately $40.677 million compared to the preceding fiscal year; with $19.728 million of the year-over-year increase in Public Safety and an additional $10.818 million increase from the prior year in Transit.
• Total Citywide revenues including transfers were $203.543 million, an increase of $39.122 million compared to June 30, 2022.
• Revenues are classified into program and general revenues. Total program revenues (Governmental and Business-type activities combined) were approximately $154.651 million, which are used to offset program expenses under each functional activity and are comprised of charges for services, operating and capital grants. General revenues of approximately $64.213 million are used to offset the additional expenses net of program revenues and are comprised primarily of taxes (i.e., property, sales, franchise, etc.), but includes investment income and transfers.
• The overall increase of 19.38% in total revenues ($39.452 million) for the City was primarily due to increases in sales tax ($972 thousand million), Charges for Services ($17.885 million) and Capital Grants and Contributions ($10.534 million).
• The largest City-wide revenues came from several sources: charges for services (e.g. business license fees, building permits, hotel charges and bus fares) at $61.460 million, operating grants and contributions (e.g. allocations of funds derived from Los Angeles County Metropolitan Transportation Authority Local Return Funds Propositions A and C, and Measures R and M) at $64.616 million,
CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 26, 2024
sales taxes at $26.352 million and capital grants and contributions ($28.575 million).
• Revenue from charges for services increased by $17.885 million (29.10%), sales taxes increased by $973 thousand (3.69%) and Capital grants and contributions increased 36.86% ($10.534 million).
• Total citywide expenses increased by $40.677 million, the net impact of increases in Public Safety ($19.728 million) and Transit ($10.818 million); offset by slight decreases to General Government ($2.253 million) and Parks and Recreation ($932 thousand).
• The cost of serving residents for the year (across Governmental and Business- type Activities) includes: $51.518 million for public safety (police and fire); $23.350 million for public works; $40.098 million for transit (Montebello Bus Lines); $11.730 million in general government; and $4.475 million for parks, recreation and culture.
Business-Type Activities
The City operates the following business-type activities: Transit System (i.e., Montebello Bus Lines), Golf Course, Hilton Garden Inn, Home2Suites, and Water Utility. The City’s Transit System is the largest business-type operation (as defined by operating expenses), followed by Home2Suites, the Hilton Garden Inn, the Golf Course and the Water Fund. (It should be noted that the City sold its water system effective February, 2023. Therefore, the financial statements ending June 30, 2023, are the last to present Water Fund activity.)
Business-type activities increased the City’s net position after transfers by $20.344 million, primarily a result of an increase in revenue ($32.016 million) that exceeded the $13.613 million increase in expenses vs. June 30, 2022.
Total revenues for business-type activities were $99.477 million, compared to $67.461 million in the previous fiscal year, constituting a 32.18% increase. The overall change is due to a $14.820 million increase in Charges for Services, a $11.230 million increase in Capital Grants and an increase of $5.070 million in Operating Grants.
Approximately 40.19% of revenue came from Charges for Services, which was generated from bus fares, special contracts, and revenue from hotel room fees, while the remaining
59.81% comes from State and Federal subsidies in the form primarily of Transit related grants and related revenue from Federal, State and local (i.e., Los Angeles County Metropolitan Transportation Authority) agencies.
• The Transit System reported operating revenues of $33.491 million, a $4.952 million increase (17.35%) when compared to FY 2021-22. There were increases in Federal and State transit assistance and Local Return Funds (Metro) funding.
Operating expenses in FY 2022-23 were $38.695 million, a $10.849 million increase from the prior fiscal year. The majority of this increase (90.29%, $9.796 million) was in Salaries and Benefits, the result of vacancies being filled and transit
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operations returning to pre-pandemic levels. Net position of the Transit Fund increased by $20.643 million.
• The Hilton Garden Inn reflected operating net income of $883 thousand, an improvement of $343 thousand from FY 2021-22. The net income (surplus) is attributable to the recovering economy and the return of leisure and business travelers, leading to a direct increase in total occupancy. Operating revenues increased $1.213 million, and operating expenses increased by $871 thousand. Total change in net position was a positive $711 thousand, contribution to ending net position of $627 thousand as of June 30, 2023.
• The Montebello Home2Suites reflected operating net income of $4.154 million, a slight decrease from FY 2021-22 of $442 thousand. Operating revenue was $13.039 million, an increase of $989 thousand vs. the prior fiscal year. As the economy recovers from the pandemic, a return to leisure and business travel has positively impacted the hotel’s operations. Total net position increased by $2.274 million, resulting in an ending net position of $549 thousand as of June 30, 2023.
• The City’s Water Fund was sold to the San Gabriel Valley Water Company (SGVWC) in February, 2023. The sale resulted in $16.293 million in revenue, which was transferred to the General Fund as of June 30, 2023. The remaining fund balance in the Water Fund was also transferred to the General Fund. As of June 30, 2023 the Water Fund has been closed out and will no longer be reflected on future financial statements.
Governmental Activities
Governmental Activities includes the General Fund, as well as myriad special funds that record activity related to road repair and maintenance (Gas Tax, SB1/RMRA, Proposition C, Measure M, etc.); assistance to low- and moderate-income households (CDBG, HOME), retirement expenses (Retirement Fund), debt service, public safety (Asset Forfeiture), and numerous public works, public safety and related grants.
• Total governmental activities revenues increased by $7.106 million (6.83%).
This is mainly due to increases in these revenue categories: Charges for Services ($3.065 million), Investment Earnings ($2.908 million), Other Taxes ($1.099 million), and Sales Taxes ($973 thousand).
• Operating Grants and Contributions (e.g. allocations of funds derived from Los Angeles County Metropolitan Transportation Authority Local Return Funds Propositions A and C, and Measures R and M) represent 31.91% of Governmental Activities revenue.
• Sales tax revenues were the second largest portion of total governmental activities revenues (25.32%). Sales tax revenues increased by $973 thousand, to $26.352 million as of June 30, 2023.
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• Charges for services were the third largest source of revenue for governmental activities (20.64%). Charges for services in governmental funds include licenses and permits, fines and forfeitures, waste collection, etc. Compared to the prior fiscal year, this program revenue increased by approximately $3.065 million, or
14.27%.
The cost of providing all governmental activities in 2023 was $102.893 million, an increase in expenses of $27.064 million (26.30%) when compared to June 30, 2022.
There were increases and decreases to different categories, causing the overall net increase. Public Safety (police and fire) increased the most ($19.728 million, 38.29%), followed by a $7.298 million increase in Public Works, and $2.117 million increase in Interest on Long-term Debt.
General Fund
The General Fund is the City's main operating fund. It is used to account for revenues and expenditures necessary to perform basic government functions that are not accounted for through other special revenue and grant funds. These are the typical services residents see daily: police and fire service, street maintenance, community services programming, code enforcement, park maintenance, etc.
The General Fund saw an increase in fund balance of $13.753 million. Fund Balance is now 39.50% of Operating Revenues. The key factors positively impacting fund balance of the General Fund for FY 2022-23 are as follows:
• The proceeds from the sale of the water system contributed to the increase in reserves, allowing the City to begin following its adopted GASB 54 compliant reserve policies. The fiscal year ending June 30, 2023 saw partial implementation of the reserve policies for the first time since their approval by City Council in June 2020.
• General Fund operating revenues (i.e., taxes, charges for services, licenses and permits, etc.) increased by $5.134 million (7.67%) from the prior year which is primarily due to the overall increase in sales tax ($973 thousand), property tax ($1.130 million), Investment Income ($1.084 million) and Charges for Services ($1.262 million).
• The increase in sales tax is due to two primary reasons: the recovering economy as pandemic related restrictions ease and consumers remain active in the retail economy; and the continued local improvement of the enacted (March 2020) Measure H Transaction and Use Tax revenue stream.
• The increase to Property Tax reflects continued improvement in overall assessed value in the City, as well as additions to total assessed value with completed residential construction in Metro Heights and other smaller developments within the City.
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• General Fund expenditures increased year-over-year by $13.139 million. The largest increases in operating expenses were Public Works ($4.315 million), General Government ($2.759 million) and Public Safety ($2.752 million). Capital expenses increased $5.228 million year-over-year.
Economic Overview and Credit Rating
As of the date of this ACFR, the City S&P issuer credit rating (ICR) is “A+”, with the underlying credit rating on the City’s outstanding lease revenue bonds is “A”, with a “stable” outlook. These latest ratings were reaffirmed when the City issued $15.140 million in Lease Revenue Bonds, Series 2022A – Golf Course in September, 2022, which have been utilized to refurbish and reconstruct the City’s public golf course (see paragraph above for additional details on this bond issuance). The outlook for all ratings is “stable.” It should be noted that the “A+” ICR reflects S&P’s view of the City’s general creditworthiness.
The financial statements and commentary found in the prior three ACFR’s has been dominated by the impacts of the Coronavirus pandemic. For the results as of June 30, 2023, these impacts have all but disappeared and there appears to be a return to “pre- pandemic” economic and financial activity. Overall, the local Montebello economy appears to be healthy, as evidence by continued strong sales and transaction and use tax performance. Also, the City’s two hotels are performing well, seeing occupancy rates at or near levels last seen pre-pandemic (i.e., 2019).
For most of FY 2022-23, the discussion surrounding the economy focused on inflation, and the various causes of the generationally high inflation rate and methods used by the Federal Reserve to temper its impacts on the economy. Hand-in-hand with the inflation discussion have been discussions of whether the Federal Reserve can pull off a “soft- landing” and prevent the U.S. economy from sliding into a recession. As of the publication of this ACFR, it appears the Federal Reserve’s reduction in the Federal Funds Rate, coupled with falling inflation and steady job growth have combined to – at least for now – avert an economic downturn.
For this and other reasons, it is imperative that Montebello’s economic development activities promote projects that expand the City’s sales tax and property tax base. Looking ahead, there is much to be excited about in Montebello in these arenas, with several projects begun prior to FY 2022-23 that will contribute to the City’s long-term economic health and viability once completed in the near future.
The issuance of $15.140 million in lease revenue bonds in September, 2022 (LRB Series 2022A) has ushered in a new era for the City’s public golf course These proceeds were used to completely reconstruct the existing golf course, creating a championship 9-hole course, a 6-hole “executive” course, and adding lights for the ability to play golf during evening hours. This project will help the Golf Course reduce – even eliminate – the subsidy required from the General Fund. The renovated golf course opened in May, 2024.
Connected to the Golf Course Renovation Project is the construction of a Topgolf facility on 15 acres of the existing golf course property. This project is funded with the $55.4
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million in lease revenue bonds issued in December, 2022 (LRB Series 2022B). In a unique financing arrangement, the Public Financing Authority issued the bonds, with a sub-lease and guaranty tied to the issuance that requires Topgolf to pay the annual debt service (i.e., improvement rent). The completed Topgolf facility is a three-story entertainment and event center, featuring 102 hitting bays, a restaurant, meeting space and a pro shop. In addition to the commitment to pay annual debt service, Topgolf will pay an annual lease for the use of City property ($1.150 million for the first five years, with increases every five years after). In addition, the facility will generate sales tax revenue, which will help boost overall General Fund revenue. Topgolf Montebello opened in May, 2024.
In addition to these exciting capital projects and economic development initiatives, the City finally received approval from the Public Utilities Commission (PUC) to sell its water system. The PUC decision was finalized in December 2022, and escrow closed in February 2023. The sale of the water system to San Gabriel Valley Water Company (SGVWC) concludes a long saga of the City attempting to sell its water system. The State Auditor, in its December 2018 report, recommended the City pursue the sale, and the October 2021 follow up report noted this recommendation and continued to support the sale. The City received $15.857 million in proceeds from the sale, which can be seen as non-operating revenue recorded in the General Fund in FY 2022-23. In addition, the City will receive annual water rights lease payments as condition of the sale of the water system. These water rights added $173,925 to General Fund revenues in FY 2022-23.
As noted in the preceding paragraphs, the General Fund’s fund balance increased by $13.753 million, to $28.469 million as of June 30, 2023. The proceeds from the sale of the water system contributed to the increase in reserves, allowing the City to begin following its adopted GASB 54 compliant reserve policies. The fiscal year ending June 30, 2023 saw partial implementation of the reserve policies for the first time since their approval by City Council in June 2020. Details of the partial implementation of the reserve policies can be found in the ACFR (i.e.,Note 13).
In FY 2022-23, the City continued critical work related to upgrading its information technology and cybersecurity infrastructure. This project has been funded using a portion of the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) revenue the City received between May 2021 and 2022. The total $16.59 million in CSLFRF revenue received by Montebello has been categorized as “revenue loss,” as permitted by U.S. Treasury Interim Final and Final Rules. This much needed funding has allowed the City to fast-track the technology upgrade, improving security, storage and productivity hardware and software.
These are just a few highlights of the many projects underway in Montebello that are aimed at improving residents’ lives and helping to put the City on a long-term path to financial stability and sustainability. Some other projects that either began or were continued into FY 2022-23 are the following:
• Utilization of $15.140 million in bonds to fully renovate and rejuvenate the City’s public golf course
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• Utilizing bond proceeds to construct a Topgolf on 15 acres of the City’s public golf course
• Completion of a portion of the “Paving the Way” projects that improved residential street and road conditions
• Major repairs to the City’s aging sewer system, utilizing a portion of the City’s CSLFRF funding allocation
• Expansion of the Montebello Community Assistance Program (MCAP) aimed at helping the City’s unhoused population
• Significant progress on the City’s General Plan update, the first in over forty years, with anticipated City Council adoption by April, 2024 • Completion of a park and facilities needs assessment study and master plan • Completion of significant facility repair and upgrade projects, eliminating years of deferred maintenance on key City facilities
• Introduction of improved purchasing and procurement guidelines • Receiving the Government Finance Officers Association (GFOA) award for budget preparation for the third time in the history of the City • Approval to finance installation of solar panels at City facilities
Management and the City Council continue to be dedicated to improving Montebello’s long-term financial sustainability. Pursuing projects that are externally and internally focused – capital and infrastructure projects as well as organizational improvements – will strengthen Montebello’s ability to weather changes in the economy as well as the “next pandemic,” in whatever form that may appear.
SUMMARY:
The recommended action is for the City Council to receive and file the Annual Comprehensive Financial Report (ACFR) for the fiscal year ending June 30, 2023.
ATTACHMENT(S)
1. Attachment A - Transmittal Letter FY 2022_23 FINAL
2. Attachment B - MD&A FINAL-PUN Updated
1 June 2024
Honorable Mayor and Members of the City Council:
The Annual Comprehensive Financial Report (ACFR) of the City of Montebello for the fiscal year ended June 30, 2023 is submitted as prepared by the City’s Finance Department. The report is published to provide the City Council, community and other interested parties detailed financial and operational information about the City for the previous fiscal year. The financial statements are audited by a third -party accounting firm, providing assurance to the public that the City’s financial reporting and associated operations meet or exceed generally accepted accounting and auditing standards.
The ACFR is presented in three sections: the Introductory Section, the Financial Section, and the Statistical Section. The Management Discussion and Analysis (MD&A) is the most useful for readers of the ACFR to find a general overview of the City’s financial condition at year -end, providing highlights of significant changes or key events impacting year-end financial results.
Responsibility for both the accuracy of the financial report and the completeness and fairness of the presentation rests with the City. To the best of our knowledge, the information presented is accurate in all material aspects and includes all disclosures necessary to enable the reader to gain an understanding of the City’s financial activities.
The City prepared the ACFR using the financial reporting requirements outlined in the Governmental Accounting Standards Board (GASB) Statement No. 34. This statement requires that management provide a narrative introduction, overview, and analysis to accompany the basic financial statements in the form of a Management Discussion and Analysis (MD&A) section. This letter of transmittal is designed to complement the MD&A and should be read in conjunction with it. The City’s MD&A can be found immediately following the report of the independent auditors in the financial section of the ACFR.
The City requires that its financial statements be audited by an independent, accredited auditing firm on an annual basis. This requirement has been satisfied, and the auditor’s opinion is included in the financial section of the ACFR.
In addition, the City is required to undergo an annual single audit to conform to the provisions of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). This requirement has also been satisfied, with the single audit published separately as a stand-alone document.
THE FINANCIAL REPORTING ENTITY
This report includes activity of all funds of the City, with presentation in the ACFR being done on a major vs. other funds basis. All funds have their appropriations approved by the governing body (i.e., City Council) through the annual budget development process. In addition to the General Fund, other governmental and enterprise funds are utilized to record financial activity. Each fund is appropriated annually, and includes the General Fund, Proposition A, Proposition C, Measure
ATTACHMENT A
2 M, Measure R, HOME, Community Development Block Grant (CDBG), Gas Tax, Grants (non - Transit), Asset Forfeiture, Grants (Transit), Debt Service, Retirement, Asset Forfeiture, etc.
Revenue and expenditures are appropriated through the budget process, with the FY 2022-23 budget (all funds) adopted at a regular City Council meeting in June 2022, and amended as needed throughout the fiscal year.
The City of Montebello provides a full range of municipal services including police and fire protection, street maintenance, transit ( Montebello Bus Lines) planning and community development, parks and recreation services, financial planning, treasury management, information technology, human resources , engineering , code enforcement and general administration.
Montebello also operates several enterprise funds, which include a municipal golf course, a transportation system (Montebello Bus Lines) , and two hotels (i.e., Hilton Garden Inn and Home2Suites). Enterprise funds are financed from user charges (e.g., green fees, room charges, bus fares, etc.) and revenue from other governmental agencies (e.g., Los Angeles County Metropolitan Transportation Authority funding for fixed transit lines), as applicable. It should be noted that the City finalized the sale of its water system in FY 2022-23. This ACFR includes appropriate updates to show the sale of the water system and dissolution of the separate enterprise fund that had been utilized to record water system revenue and expense activities.
ACCOUNTING SYSTEM
The modified accrual basis of accounting is followed for governmental fund types and the accrual basis of accounting is followed for proprietary and fiduciary fund types. In reviewing and developing the City’s accounting system, consideration is given to the adequacy of internal accounting controls. Internal accounting controls are designed to provide reasonable, but not absolute assurance regarding:
• The safeguarding of assets against losses from unauthorized use or disposition and the reliability of financial records for preparing financial statements and maintaining accountability for assets.
• The concept of reasonable assurance recognizes that the cost control procedures should not exceed the benefits likely to be derived and that the evaluation of costs and benefits require estimates and judgment by management.
• All internal control evaluations occur within the above framework.
As discussed more fully below, management has made a concerted effort to improve internal controls by updating the Municipal Code, creating and implementing new procedures and policies, implementing a regime of regular training and generally ensuring internal policies and procedures are efficient while not sacrificing requisite safeguards against fraud, waste and abuse.
BUDGETARY CONTROL
In addition to internal accounting controls, the City also maintains budgetary controls. The objective of these budgetary controls is to ensure compliance with the City’s budget policy approved by the City Council as incorporated in the budget adoption resolution . Appropriations of the General Fund, special revenue funds, debt service funds, and capital project funds are
3 included in the annual approved budget. The City’s adopted budget document includes detailed information about the approval process. A budget calendar, various budget schedules and related policies can be found in that document.
Budgetary control is maintained at a functional level by division within the department through the use of object code level accounting as actual expenditures are compared to appropriations. As purchase orders are approved, appropriations are encumbered. Encumbrances and expenditures, which would cause an overrun of appropriations, require an approved budget transfer, which is reviewed and approved by the Director of Finance, pursuant to the Annual Budget Resolution and the Municipal Code. The City’s Capita l Improvement Program (CIP) is adopted at the same time as the operational budget and includes various street and infrastructure improvement projects. Any action to increase total appropriations requires approval by a majority vote of the City Council.
IMPROVEMENTS TO INTERNAL CONTROLS
Over the span of the last five years the City has put into place numerous new procedures and policies aimed at improving internal controls governing procurement, invoice approval, purchase orders, contracts/agreements , requests for proposals/quotes , etc. . The City’s municipal code chapters dealing with purchasing and procurement were updated in March 2019, February 2022 and February 2023 – utilizing best practice language found in neighboring cities’ municipal codes and aimed at improving and professionaliz ing Montebello’s procurement practices. In addition, citywide purchasing training has been conducted at least three times per year since 2020. Several new administrative policies have been developed that addressed identified areas of weakness:
petty cash handling, credit card use, hotel financial reporting, issuance of RFPs/RFQs, etc., while other existing policies were updated.
The improvements made in organizational management and internal controls indicate that Montebello is making positive strides in ensuring future financial stability , as well as putting into place policies and procedures that ensure public funds are managed and spent wisely.
ADOPTION OF FORMAL RESERVE POLICIES
In addition to improvements to internal controls, the City is demonstrating its commitment to fiscal sustainability by the adoption of General Fund reserve policies. The City Council first adopted comprehensive reserve policies in June 2020. These policies are incorporated into the adopted budget document and are presented annually for review and approval by the City Council, which has been done every June since 2020 . The reserve policies in effect for FY 2022 -23 were approved in June 2022.
Having such written policies indicates to third parties (i.e., credit rating agencies) that Montebello has a clear plan for how to manage General Fund reserves – spendable and non-spendable. Fully compliant with GASB 54, the policies establish distinct reserve categories for various uses:
• Economic Uncertainties
• Unfunded Liabilities
• Equipment/Technology Replacement and Upgrade
• Capital Improvement (Unfunded/Un-programmed)
• Deferred Maintenance
• Insurance – Risk Management
4 • Economic Sustainability
Each reserve category sets aside a specific amount – either a fixed dollar amount or an amount calculated as a percentage of prior year operating revenues. The policy, per GASB 54, makes “commitments” or “assignments,” and describes the method by which each reserve can be utilized. Furthermore, the policy includes the method for replenishing the various reserve buckets, should they be used and fall below the pre -scribed amounts. The FY 2022-23 adopted budget document contains the Reserve Policies.
Reserve balances in the General Fund as of June 30, 2023 are sufficient enough to provide for partial implementation of the Reserve Policies. General Fund reserves increased by $13.75 3 million from June 30, 2022, to $28.469 millio n, allowing for Commitments for Economic Uncertainties ($18.020 million) and Unfunded Liabilities ($3.604 million) to be made, as well as the Capital Improvement Assignment ($3.604 million). The June 30, 2023 fund balance is 39.50% of operating revenues. Should future fund balances continue to grow, additional designations per the reserve policies will be made.
GENERAL INFORMATION AND ECONOMIC OUTLOOK
The City of Montebello was incorporated on October 16, 1920 and is progressing positively into its second century of existence. The City is a general law city and functions under the City Council- Manager form of government. The City is governed by a legislative body of five City Councilmembers elected by district (as of November 2022) and serving staggered, four -year terms, with the Mayor and Mayor Pro -Tem selected by fellow Councilmembers. The City Clerk and City Treasurer are also elected to four- year terms. The City Manager and City Attorney are appointed by the City Council.
Montebello is located nine miles east of the Los Angeles Civic Center, with access to three freeways – the Santa Ana Interstate 5 Freeway to the south, the Pomona State Route 60 Freeway to the north, and the San Gabriel River Interstate 605 Freeway to the east. The City has a population of approximately 64,000 living in an area of 8.2 square miles. The City is a balanced community with industrial, residential, and commercial areas.
The financial statements and commentary found in the prior three ACFR’s has been dominated by the impacts of the Coronavirus pandemic. For the results as of June 30, 2023, these impacts have all but disappeared and there appears to be a return to “pre -pandemic” economic and financial activity. Overall, the local Montebello economy appears to be healthy, as evidence by continued strong sales and transaction and use tax performance , as well as steady growth in assessed value (i.e., property tax) . Also, the City’s two hotels are performing well, seeing occupancy rates at or near levels last seen pre-pandemic (i.e., 2019).
For most of FY 2022 -23, the discussion surrounding the economy focused on inflation, and the various causes of the generationally high inflation rate and methods used by the Federal Reserve to temper its impacts on the economy. Hand -in-hand with the inflat ion discussion have been discussions of whether the Federal Reserve can pull off a “soft -landing” and prevent the U.S. economy from sliding into a recession. As of the publication of this ACFR, it appears the Federal Reserve’s reduction in the Federal Funds Rate, coupled with falling inflation and steady job growth have combined to – at least for now – avert an economic downturn.
5 For this and other reasons, it is imperative that Montebello’s economic development activities promote projects that expand the City’s sales tax and property tax base. Looking ahead, there is much to be excited about in Montebello in these arenas, with se veral projects begun prior to FY 2022-23 that will contribute to the City’s long-term economic health and viability once completed in the near future.
The issuance of $15.140 million in lease revenue bonds in September, 2022 (LRB Series 2022A) has ushered in a new era for the City’s public golf course These proceeds will be used to completely reconstruct the existing golf course, creating a championship 9-hole course, a 6-hole “executive” course, and adding lights for the ability to play golf during evening hours. This project will help the Golf Course reduce – even eliminate – the subsidy required from the General Fund.
The renovated golf course is slated to open in May, 2024.
Connected to the Golf Course Renovation Project is the construction of a Topgolf facility on 15 acres of the existing golf course property. This project is funded with the $55.4 million in lease revenue bonds issued in December, 2022 (LRB Series 2022B). In a unique financing arrangement, the Public Financing Authority issued the bonds, with a sub-lease and guaranty tied to the issuance that requires Topgolf to pay the annual debt service (i.e., improvement rent). The completed Topgolf facility will be a three -story entertainment and event center, featuring 102 hitting bays, a restaurant, meeting space and a pro shop. In addition to the commitment to pay annual debt service, Topgolf will pay an annual lease for the use of City property ($1.150 million for the first five years, with increases every five years after). In addition, the facility will generate sales tax revenue, which will help boost overall General Fund reven ue. Topgolf Montebello is scheduled to open in May, 2024.
In addition to these exciting capital projects and economic development initiatives, the City finally received approval from the Public Utilities Commission (PUC) to sell its water system. The PUC decision was finalized in December 2022, and escrow closed in February 2023. The sale of the water system to San Gabriel Valley Water Company (SGVWC) concludes a long saga of the City attempting to sell its water system. The State Auditor, in its December 2018 report, recommended the City pursue the sale, and the October 2021 follow up report noted this recommendation and continued to support the sale. The City received $15.857 million in proceeds from the sale, which can be seen as a transfer in the General Fund in FY 2022 -23. In addition, the City will receive annual water rights lease payments as condition of the sale of the water system. These water rights added $173,925 to General Fund revenues in FY 2022-23.
As noted in the preceding pages, the General Fund’s fund balance increased by $13.753 million, to $28.469 million as of June 30, 2023. The proceeds from the sale of the water system contributed to the increase in reserves, allowing the City to begin following its adopted GASB 54 compliant reserve policies. The fiscal year ending June 30, 2023 saw partial implementation of the reserve policies for the first time since their approval by City Council in June 2020. Two Commitments – Economic Uncertainties and Unfunded Liabilities – and one Assignment – Capital Projects – were reserved in fund balance. Details can be found in Note 13.
In FY 2022-23, the City continued critical work related to upgrading its information technology and cybersecurity infrastructure. This project has been funded using a portion of the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) revenue the City received between May 2021 and 2022. The total $16.59 million in CSLFRF revenue received by Montebello has been categorized as “revenue loss,” as permitted by U.S. Treasury Interim Final and Final Rules. This much needed funding has allowed the City to fast-track the technology upgrade, improving
6 security, storage and productivity hardware and software. The project will continue in subsequent fiscal years, with completion anticipated sometime in FY 2023-24.
ACCOMPLISHMENTS AND ACHIEVEMENTS
Montebello has made tremendous strides by improving its financial standing and overall operations in recent years, and this progress continued in Fiscal Year 2022-23. In addition to the many accomplishments discussed in the preceding pages, some of the many positive accomplishments this past year include:
• Utilization of $15.140 million in bonds to fully renovate and rejuvenate the City’s public golf course
• Utilizing bond proceeds to construct a Topgolf on 15 acres of the City’s public golf course • Completion of a portion of the “Paving the Way” projects that improved residential street and road conditions
• Major repairs to the City’s aging sewer system, utilizing a portion of the City’s CSLFRF funding allocation
• Expansion of the Montebello Community Assistance Program (MCAP) aimed at helping the City’s unhoused population
• Significant progress on the City’s General Plan update, the first in over forty years, with anticipated City Council adoption by April, 2024
• Completion of a park and facilities needs assessment study and master plan • Completion of significant facility repair and upgrade projects, eliminating years of deferred maintenance on key City facilities
• Introduction of improved purchasing and procurement guidelines • Receiving the Government Finance Officers Association (GFOA) award for budget preparation for the third time in the history of the City • Approval to finance installation of solar panels at City facilities
Management and the City Council continue to be dedicated to improving Montebello’s long-term financial sustainability. Pursuing projects that are externally and internally focused – capital and infrastructure projects as well as organizational improvement s – will strengthen Montebello’s abilities to weather changes in the economy as well as the “next pandemic,” in whatever form that may appear.
These and other accomplishments have helped set Montebello on the right path towards fiscal sustainability and operational stability. The following pages provide technical information related to the City’s accounting system, budgetary control, cash and investments, etc. Greater detail i s available in the MD&A, the various notes to the financial statements, required supplementary information (RSI) and statistical sections.
ACKNOWLEDGEMENTS
The preparation of the City's Annual Comprehensive Financial Report (ACFR) could not have been accomplished without the dedicated services of the entire Finance Department, as well as assistance from each of the operating departments. I want to specifically thank the entire Finance
7 Department, and especially the Accounting Division, for their commitment to ensuring the ACFR was completed accurately. The City’s independent auditor – The Pun Group – provided invaluable assistance and expert advice in completing the ACFR.
I also want to thank the City Council, the Executive Management Team and City staff for their interest and support of the financial operations of the City and helping ensure Montebello thrives financially and operationally.
Respectfully submitted,
Michael Solorza
Director of Finance
City of Montebello
Management’s Discussion and Analysis (Unaudited)
For the Year Ended June 30, 2023
5 The following section represents Management’s Discussion and Analysis (MD&A). It is intended to provide narrative overview and analysis on the City’s financial performance for the fiscal year ended June 30, 202 3. Readers are encouraged to consider the information presented here in conjunction with the accompanying letter of transmittal and financial statements.
Overview of the Financial Statements
The City's basic financial statements consist of three components: 1) Government-wide Financial Statements, 2) Fund Financial Statements, and 3) Notes to the Basic Financial Statements. The Statistical section at the end of this report provides supplementa ry information in addition to the basic financial statements. Government -wide Financial Statements are prepared using accrual accounting method to demonstrate the City’s operational accountability, while the Fund Financial Statements are based on modified -accrual accounting method to demonstrate its budgetary accountability. Reconciliations of the Fund Financial Statements to the Government -wide Financial Statements are provided to explain to readers the differences created by this integrated approach.
Government-wide Financial Statements
The Government-wide Financial Statements provide a broad overview of the City's finances, in a manner similar to a private-sector business. The statements present information about the functions of the City principally supported by taxes and intergovernmental revenues (governmental activities). The governmental activities of the City include general government (i.e., administration, finance, human resources, elected officials, etc.) public safety, public works, parks and recreation, and housing and community development. Business-type activities of the City include water, golf course, transportation and hotel operations. These statements include all assets of the City as well as all liabilities (including long-term debt). Additionally, certain eliminations have occurred as prescribed by the statement in regard to inter-fund activity, payables, and receivables.
The Statement of Net Position and the Statement of Activities report information about the City as a whole and about its activities. These statements include all assets and liabilities of the City using the accrual basis of accounting, which is similar to the accounting used by most private sector companies. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in thi s statement for some items that will only result in cash flows in future fiscal periods (e.g., uncollected taxes and earned but unused vacation leave).
The government-wide financial statements can be found immediately following this discussion and analysis.
Fund Financial Statements
The Fund Financial Statements include statements for three categories of activities: Governmental Funds, Proprietary Funds and Fiduciary Funds. The governmental activities are prepared using the current financial resources measurement focus and the modified accrual basis of accounting.
A Fund is a grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance-related legal requirements.
Governmental Funds. Governmental funds are used to account for essentially the same functions reported as Governmental Activities in the government-wide financial statements. However, unlike the government-wide financial statements, governmental fund financial statements focus on near term inflows and outflows of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing requirements.
ATTACHMENT B
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
6 Because the focus of governmental funds is narrower than that of the government-wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the Government -wide Financial Statements. By doing so, readers may better understand the long -term impact of the government's near -term financing decisions. Both the governmental fund Balance Sheet and the governmental fund Statement of Revenues, Expend itures, and Changes in Fund Balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities.
The City maintains various individual governmental funds. Information is presented separately in the Governmental Funds Balance Sheet, and in the Governmental Funds Statement of Revenues, Expenditures, and Changes in Fund Balances, for the General Fund, th e Retirement Special Revenue Fund, the Public Financing Authority Debt Service Fund, and the Housing Successor Special Revenue Fund, all of which are considered to be major funds. Data from other governmental funds are combined into a single, aggregated pr esentation. Individual fund data for each of these other governmental funds is provided in the form of combining statements elsewhere in this report. As a result of Assembly Bills 1X26 and 1484, Redevelopment Agency assets and liabilities are no longer a part of the governmental funds of the City and are now reported in the Fiduciary Fund section of the financial statements.
The City adopts an annual appropriated budget for all of its individual funds, including the major funds as listed above.
The basic financial statements include a budgetary comparison statement for the General Fund. The budgetary comparison statement has been provided to demonstrate compliance with this budget.
The basic governmental fund financial statements can be found immediately following the government-wide financial statements.
Proprietary Funds. Proprietary funds are generally used to account for services for which the City charges external customers, or other units of the City. Proprietary funds provide the same type of information as shown in the government-wide statements, only in more detail. The City maintains the following two types of proprietary funds.
• Enterprise funds are used to report the same functions presented as business-type activities in the government- wide financial statements. The City uses enterprise funds to account for the operations of the golf course, transit system, Hilton Garden Inn and Home2suites Hotels.
• Internal service funds are used to report activities that provide internal services for the City. The City uses an internal service fund to account for workers' compensation and general liability expenses, including insurance premiums. Because internal service funds predominantly benefit governmental rather than business -type functions, they have been included within governmental activities in the government-wide financial statements.
Fiduciary Funds . Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City's own programs. The basic fiduciary fund financial statements can be found immediately following the basic proprietary fund financial statements and include the assets and liabilities of the Successor Agency Fiduciary Fund.
Notes to financial statements
The notes to financial statements provide additional information that is essential to a full understanding of the data provided in the Government-wide and Fund Financial Statements. The notes to the basic financial statements can be found immediately preceding the Required Supplementary Information.
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
7 Other information
The combining statements referred to earlier in connection with other governmental funds and internal service funds are presented for all other Special Revenue Funds, all other Debt Service Funds, all other Capital Projects Funds, and all Internal Service Funds. These combining fund statements and schedules of revenues, expenditures and changes in fund balance - budget and actual for individual funds – can be found immediately following the notes to financial statements.
Note: The numbers shown on the MD&A are either expressed in multiples of one thousand or million dollars while percentages are rounded to the nearest tenth or whole number. Hence, there may be slight differences between numbers on the MD&A and the numbers on the Basic Financial Statements.
Financial Highlights
The following are entity-wide financial highlights, covering both Governmental and Business-type activities:
• On June 30, 202 3, the City’s total net position was approximately $68.620 million dollars, an increase (improvement) of $ 37.808 million compared to the $30.812 million as of June 30, 202 2. The City’s unrestricted net position, at a negative $ 165.253 million, increased by $22.757 million dollars over the prior fiscal year.
• Total revenues from all sources were $ 203.545 million while total expenses were $ 165.735 million. Of the total revenues, program revenues totaled $ 154.649 million while general revenues totaled $ 48.894 million, including transfers.
• The City’s General Fund revenue and other financing sources exceeded expenses by $13.754 million in the Fiscal Year 2022-23. The General Fund fund balance totaled $28.470 million, reflecting the net change of $13.754 million (including other financing sources and uses).
• The fund balance of the General Fund was large enough to allow for partial implementation of the City Council approved reserve policies, funding the 25% Economic Uncertainties Commitment ($18.020 million), Unfunded Liabilities Commitment ($3.605 million), and Capital Improvement Assignment ($3.605 million).
• General Fund total revenues, including transfers in and proceeds from the sale of assets as June 30, 2023, was $93.958 million. Excluding other financing sources and uses, General Fund revenue was $72.081 million. The City received funds from the sale of its water system, as well as a remnant property in the City of Pico Rivera.
Additional revenue was recorded by the recognition of Federal State and Local Fiscal Recovery Funds (SLFRF).
• The General Fund expenditures as of June 30, 2023 were $76.593 million.
• The Transit enterprise fund ended Fiscal Year 2022-23 with a total net position of $49.306 million, a $20.643 million increase from the prior fiscal year.
• The City’s Hilton Garden Inn ended the fiscal year with a net position of $627 thousand, an improvement of $711 thousand from FY 2021 -22. The operating income (revenues exceeding expenses) was $883 thousand as of June 30, 2023.
• The Home2Suites ended the fiscal year with a net position of $549 thousand, an improvement of $2.274 million over FY 2021 -22. The hotel had operating income (revenue exceeding expense) of $4.154 million as of June 30, 2023.
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
8 These Financial Highlights, as well as other points, are discussed in greater detail in the body of this discussion and analysis, as well as the Notes to the Financial Statements. The following pages provide greater, in -depth detail on Government-wide financials, as well as Governmental and Business-type activities.
Government-wide Financial Analysis
The government-wide financial statements provide both long-term and short-term information about the City's overall financial position. This analysis addresses the financial statements of the City as a whole. The statement of net position includes all of the City’s assets, deferred outflows of resources, liabilities and deferred inflows of resources. The City’s net position is a useful measurement of its financial health. Net position can be tracked over time to assess whether the City’s financial health is improving or deteriorating. However, readers will need to consider other nonfinancial factors, such as changes in the City’s property tax base, the condition of the City’s infrastructure, and the level of public safety services to assess the overall health of the City.
The table below is the “Statement of Net Position,” and provides net position information broken out by Governmental and Business-type activities, with totals and a comparison to amounts as of June 30, 2023:
2022 2022
2023 (As Restated) 2023 2022 2023 (As Restated)
Assets:
Current and other assets 232,917$ 155,801$ 73,947$ 54,607$ 306,864$ 210,408$ Capital assets 124,673 104,945 122,685 106,337 247,358 211,282 Total assets 357,590 260,746 196,632 160,944 554,222 421,690 Deferred outflows of resources 44,881 11,718 5,029 2,347 49,910 14,065 Liabilities:
Long-term liabilities 281,819 208,001 128,189 114,154 410,008 322,155 Other liabilities 20,082 22,239 21,741 6,041 41,823 28,280 Total liabilities 301,901 230,240 149,930 120,195 451,831 350,435 Deferred inflows of resources 81,997 41,115 1,684 13,393 83,681 54,508 Net Position:
Net investment in capital assets 82,184 79,728 47,367 34,949 129,551 114,677 Restricted 80,555 45,994 23,767 12,637 104,322 58,631 Unrestricted (144,166) (124,613) (21,087) (17,883) (165,253) (142,496) Total net position 18,573$ 1,109$ 50,047$ 29,703$ 68,620$ 30,812$ City of Montebello
Statement of Net Position
June 30
(in thousands)
Governmental Activities Business-type Activities Total
As mentioned in the “Financial Highlights” section above , the City’s total net position was $68.620 million as of June 30, 2023, an increase (improvement) of $37.808 million compared to the net position of $30.812 million in FY 2021-22. Total assets increased $132.532 million ($554.222 million from $421.690 million).
The City uses capital assets to provide services to residents and the community at large; consequently, these assets are not available for future spending. Although the City's investment in its capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Any remaining amount is restricted to spending agreements originated by law, contract, or other agreements with external parties.
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
9 Highlights of the key elements impacting the City’s net position for the fiscal year ended June 30, 2023, are as follows:
• Governmental Activities total revenues including transfers exceeded total expenses by $ 17.464 million ($120.357 million in revenue vs. $102.893 million in expenses). The total positive change to net position was $17.466 million.
• Business-type Activities total revenues including transfers exceeded total expenses by $ 20.344 million ($83.186 million in revenues vs. $62.842 million in expenses), with the change in net position after transfers a positive $20.344 million.
• Total Citywide expenses before transfers were $165.735 million, an increase of approximately $40.677 million compared to the preceding fiscal year ; with $19. 728 million of the year -over-year increase in Public Safety and an additional $10.818 million increase from the prior year in Transit.
• Total Citywide revenues including transfers were $203.543 million, an increase of $39.122 million compared to June 30, 2022.
• Revenues are classified into program and general revenues. Total p rogram revenues (Governmental and Business-type activities combine d) were approximately $154.651 million which are used to offset program expenses under each functional activity and are comprised of charges for services, operating and capital grants.
General revenues of approximately $64.213 million are used to offset the additional expenses net of program revenues and are comprised primarily of taxes (i.e., property, sales, franchise, etc.) , but includes investment income and transfers.
• The overall increase of 19.38% in total revenues ($39.452 million) for the City was primarily due to increases in sales tax ($ 972 thousand million), Charges for Services ($ 17/885 million) and Capital Grants and Contributions ($10.534 million).
• The largest City -wide revenues came from several sources: charges for services (e.g. business license fees, building permits, hotel charges and bus fares) at $ 61.460 million, operating grants and contributions (e.g. allocations of funds derived from Los Angeles County Metropolitan Transportation Authority Local Return Funds Propositions A and C, and Measures R and M) at $64.616 million, sales taxes at $ 26.352 million and capital grants and contributions ($28.575 million).
• Revenue from charges for services increased by $17.885 million (29.10%), sales taxes increased by $ 973 thousand (3.69%) and Capital grants and contributions increased 36.86% ($10.534 million).
• Total citywide expenses increased by $40.677 million, the net impact of increases in Public Safety ($19.728 million) and Transit ($10.818 million); offset by slight decreases to General Government ($2.253 million) and Parks and Recreation ($932 thousand).
• The cost of serving residents for the year (across Governmental and Business -type Activities) includes:
$51.518 million for public safety (police and fire); $23.350 million for public works; $40.098 million for transit (Montebello Bus Lines); $11.730 million in general government; and $4.475 million for parks, recreation and culture.
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
10 The “Summary of Changes in Net Position” table below provides additional detail on changes to revenues, expenses and net position for the years ending June 30, 2023, and 2022.
2022 2022
2023 As Restated 2023 2022 2023 As Restated
Revenues
Program revenues:
Charges for services 21,475$ 18,412$ 39,983$ 25,163$ 61,458$ 43,575$ Operating grants and contributions 33,204 32,243 31,412 26,342 64,616 58,585 Capital grants and contributions 1,466 2,162 27,109 15,879 28,575 18,041 General revenues:
Sales taxes 26,352 25,379 - - 26,352 25,379 Property taxes 7,251 6,565 - - 7,251 6,565 Other taxes 11,661 10,562 - - 11,661 10,562 Other revenues 511 2,399 - - 511 2,399 Investment earnings 2,146 (762) 973 77 3,119 (685) Total revenues 104,066 96,960 99,477 67,461 203,543 164,421 Expenses
General government 11,730 13,983 - - 11,730 13,983 Public safety 51,518 31,790 - - 51,518 31,790 Public works 23,350 16,052 - - 23,350 16,052 Parks, culture, and recreation 4,475 5,407 - - 4,475 5,407 Housing and community development 3,453 2,347 - - 3,453 2,347 Transit - - 40,098 29,280 40,098 29,280 Golf course - - 3,249 2,735 3,249 2,735 Montebello Hilton - - 5,945 5,089 5,945 5,089 Home2suites - - 11,157 9,782 11,157 9,782 Water - - 2,393 2,343 2,393 2,343 Interest on long-term debt 7,666 5,549 - - 7,666 5,549 Unallocated infrastructure depreciation 701 701 - - 701 701 Total expenses 102,893 75,829 62,842 49,229 165,735 125,058 Change in net position before transfers 1,173 21,131 36,635 18,232 37,808 39,363 Transfers 16,291 (7) (16,291) 7 - - Change in net position after transfers 17,464 21,124 20,344 18,239 37,808 39,363 Extraordinary item - - - - - - Change in net position after transfers 17,464 21,124 20,344 18,239 37,808 39,363 Net position - beginning of year, as restated 1,109 (20,015) 29,703 11,464 30,812 (8,551) Net position - end of year 18,573$ 1,109$ 50,047$ 29,703$ 68,620$ 30,812$ Governmental Activities Business-type Activities Total
City of Montebello
Summary of Changes in Net Position
(in thousands)
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
11 Governmental Activities
• As reflected in the Statement of Activities schedule above, Governmental activities increased the City's total net position (after transfers) by $ 17.466 million, and Business -type activities increased net position by $20.344 million, combining to increase total net position by $37.810 million vs. June 30, 2022.
Key factors of this change in governmental activities include the following:
Revenues:
The pie chart below shows the relative percentage each major category of revenue (program and general) comprises of the $104.069 million in total Governmental Activities revenue.
• Total governmental activities revenues increased by $7.106 million (6.83%). This is mainly due to increases in these revenue categories: Charges for Services ($ 3.065 million), Investment Earnings ($2.908 million), Other Taxes ($1.099 million), and Sales Taxes ($973 thousand).
• Operating Grants and Contributions (e.g. allocations of funds derived from Los Angeles County Metropolitan Transportation Authority Local Return Funds Propositions A and C, and Measures R and M) represent
31.91% of Governmental Activities revenue.
• Sales tax revenues were the second largest portion of total governmental activities revenues (25.32%). Sales tax revenues increased by $973 thousand, to $26.352 million as of June 30, 2023.
• Charges for services were the third largest source of revenue for governmental activities (20.64%). Charges for services in governmental funds include licenses and permits, fines and forfeitures, waste collection, etc.
Compared to the prior fiscal year, this program revenue increased by approximately $ 3.065 million, or
14.27%.
Charges for
services
20.64%
Operating grants
and contributions
31.91%Capital grants and
contributions
1.41%
Sales taxes
25.32%
Property taxes
6.97%
Other taxes
11.21%
Other revenues
0.49%
Governmental Activities Revenue
FY 2022-23
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
12 Expenses:
The cost of providing all governmental activities in 2023 was $102.893 million, an increase in expenses of $ 27.064 million (26.30%) when compared to June 30, 2022. There were increases and decreases to different categories, causing the overall net increase. Public Safety (police and fire) increased the most ($19.728 million, 38.29%), followed by a $7.298 million increase in Public Works, and $2.117 million increase in Interest on Long-term Debt.
Program revenues of $ 56.146 million offset a portion of the $102.893 million in Governmental Activities expenses, with general revenues used to offset $46.747 million of governmental activities expenses considered “public benefit.” This portion of expenses is funded by general revenues – which are primarily derived from taxes (i.e., sales, property, transient occupancy, etc.).
Business-type Activities
The City operates the following business -type activities: Transit System (i.e., Montebello Bus Lines) , Golf Course, Hilton Garden Inn, Home2Suites, and Water Utility. The City’s Transit System is the largest business -type operation (as defined by operating expenses), followed by Home2Suites, the Hilton Garden Inn, the Golf Course and the Water Fund.
Business-type activities increased the City’s net position after transfers by $ 20.344 million, primarily a result of a n increase in revenue ($32.016 million) that exceeded the $13.613 million increase in expenses vs. June 30, 2022.
Total revenues for business-type activities were $ 99.477 million, compared to $67.461 million in the previous fiscal year, constituting a 32.18% increase. The overall change is due to a $14.820 million increase in Charges for Services, a $11.230 million increase in Capital Grants and an increase of $5.070 million in Operating Grants.
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
13 The pie chart below shows the ratio that various program revenues comprise of the total amount of Business -type Activities revenue. Approximately 40.19% of revenue came from Charges for Services, which was generated from bus fares, special contracts, and revenue from hotel room fees, while the remaining 59.81% comes from State and Federal subsidies in the form primarily of Transit related grants and related revenue from Federal, State and local (i.e., Los Angeles County Metropolitan Transportation Authority) agencies.
Business-type Activities expenses increased $13.613 million in FY 2022-23 when compared to the prior fiscal year.
The pie chart below shows the composition that each operation comprises of total Business-type expenses:
Charges for
services
40.19%
Operating grants
and contributions
31.58%
Capital grants
and contributions
27.25%
Investment
earnings
0.98%
Business-Type Revenue
FY 2022-23
Transit
63.81%
Golf course
5.17%
Montebello
Hilton
9.46%
Home2suites
17.75%
Water
3.81%
Busines-Type Expenses
FY 2022-23
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
14 • The Transit System reported operating revenues of $33.491 million, a $4.952 million increase (17.35%) when compared to FY 2021-22. There were increases in Federal and State transit assistance and Local Return Funds (Metro) funding. Operating expenses in FY 2022-23 were $38.695 million, a $10.849 million increase from the prior fiscal year. The majority of this increase (90.29%, $9.796 million) was in Salaries and Benefits, the result of vacancies being filled and transit operations returning to pre -pandemic levels. Net position increased by $20.643 million.
• The Hilton Garden Inn reflected operating net income of $883 thousand, and improvement of $343 thousand from FY 2021-22. The net income (surplus) is attributable to the recovering economy and the return of leisure and business travelers, leading to a direct increase in total occupancy. Operating revenues increased $1.213 million, and operating expenses increased by $ 871 thousand. Total change in net position was a positive $711 thousand, contribution to ending net position of $627 thousand as of June 30, 2023.
• The Montebello Home2Suites reflected operating net income of $4.154 million, an slight decrease from FY 2021-22 of $442 thousand. Operating revenue was $ 13.039 million, an increase of $989 thousand vs. the prior fiscal year . As the economy recovers from the pandemic, a return to leisure and business travel has positively impacted the hotel’s operations. Total net position increased by $ 2.274 million, resulting in an ending net position of $549 thousand as of June 30, 2023.
• The City’s Water Fund was sold to the San Gabriel Valley Water Company (SGVWC) in February, 2023.
The sale resulted in $16.293 million in revenue, which was transferred to the General Fund as of June 30, 2023. The remaining fund balance in the Water Fund was also transferred to the General Fund. As of June 30, 2023 the Water Fund has been closed out and will no longer be reflected on future financial statements.
Governmental Funds Financial Analysis (Reporting the City’s most Significant Funds)
Governmental Funds. The focus of the City's governmental funds is to provide information on near -term inflows, outflows, and balances of spendable resources. Such information may be useful in assessing the City's financing requirements, in particular, unassigned fund balance may serve as a useful measure of a government's net resources available for spending at the end of the fiscal year.
As of June 30, 202 3, the City's governmental funds (i.e., major funds such as the General Fund, Retirement Fund, Local Return Funds, etc.) reported total combined ending fund balances of $ 133.689 million, an increase of $58.995 million as compared with the prior fiscal year. All governmental fund balances are either non-spendable, restricted, committed, assigned, or unassigned pursuant to GASB 54.
Non-spendable indicates they are fund balances tied to inventories, prepaid expenses and property held for sale. The restricted fund balance category includes amounts that can be spent only for the specific purposes stipulated by constitution, external resource providers, or through enabling legislation. These restrictions of fund balance are to indicate that portions of fund balance are not available for new spending, because they have already been committed to 1) finance Special Revenue Fund expenditures, 2) pay debt service, or 3) finance ongoing capital projects.
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
15 Amounts in the committed fund balance are constrained for specific purposes that are internally imposed by the government through formal written action of the City Council. Amounts in the assigned fund balance classification are intended to be used by the government for specific purposes but do not meet the criteria to be classified as restricted or committed. The City has designated committed or assigned fund balances as of June 30, 2023 per the City Council approved General Fund reserve policies (see next paragraph for further explanation). Unassigned fund balance is the residual classification for the government’s general fund and includes all spendable amounts not contained in the other classifications.
It should be noted that updated comprehensive reserve policies were originally adopted by the City Council in June 2020 and have been presented for formal adoption as part of the budget process every fiscal year since . These reserve policies created commitments and assignments in line with GASB 54 , detailing specific uses for the commitments or assignments such as “Economic Uncertainty” or “Capital Projects .” These new policies, and the assignment of portions of the General Fund’s fund balance, have been partially implemented for the first time as of June 30, 2023. Commitments for Economic Uncertainties ($18.020 million) and Unfunded Liabilities ($3.604 million) have been made, as well as the Capital Improvement Assignment ($3.604 million). Should future fund balances grow, additional designations per the reserve policies will be made.
General Fund is the City's main operating fund. It is used to account for revenues and expenditures necessary to perform basic government functions that are not accounted for through other special revenue and grant funds. These are the typical services residents see daily: police and fire service, street maintenance, community services programming , code enforcement, park maintenance, etc.
The table below presents a comparison of General Fund revenues, expenditures, and fund balance. The General Fund saw an increase in fund balance of $13.753 million. Fund Balance is now 39.50% of Operating Revenues.
2023 2022 Amount %
Operating revenues 72,080$ 66,904$ 5,176$ 7.18% Operating expenditures 76,593 63,454 13,139 17.15% Excess of revenues over (under) expenditures (4,513) 3,450 (7,963) 176.45% Net operating transfers 16,995 3,637 13,358 78.60% Proceeds from capital lease/sale of assets 1,271 44 1,227 96.54% Surplus 13,753 7,131 6,622 48.15% Beginning fund balance 14,716 7,585 7,131 48.46% Ending fund balance 28,469$ 14,716$ 13,753$ 48.31% City of Montebello
General Fund
As of June 30
(in thousands)
Change
The key factors positively impacting fund balance of the General Fund for FY 2022-23 are as follows:
• General Fund operating revenues (i.e., taxes, charges for services, licenses and permits, etc.) increased by $5.134 million (7.67%) from the prior year which is primarily due to the overall increase in sales tax ($ 973 thousand), property tax ($1.130 million), Investment Income ($1.084 million) and Charges for Services ($1.262 million).
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
16 • The increase in sales tax is due to two primary reasons: the recovering economy as pandemic related restrictions ease and consumers remain active in the retail economy; and the continued local improvement of the recently enacted (March 2020) Measure H Transaction and Use Tax revenue stream.
• The increase to Property Tax reflects continued improvement in overall assessed value in the City, as well as additions to total assessed value with completed residential construction in Metro Heights and other smaller developments within the City.
• General Fund expenditures increased year-over-year by $13.139 million. The largest increases in operating expenses were Public Works ($4.315 million), General Government ($2.759 million) and Public Safety ($2.752 million). Capital expenses increased $5.228 million year-over-year.
The table below provides detail of General Fund revenue by major category for FY 2022-23:
Variance
with Final
Budget
2023 Positive
Original Final Actual (Negative)
Revenues
Sales taxes 25,127$ 25,127 26,352$ 1,225$ Property taxes 14,875 14,875 15,325 450 Other taxes 625 625 650 25 Franchise taxes 2,445 2,445 3,014 569 Licenses and permits 6,613 6,613 8,644 2,031 Fines and forfeitures 2,935 2,935 3,405 470 Investment income 124 124 215 91 Intergovernmental 12 12 4,630 4,618 Charges for services 8,460 8,460 9,339 879 Proceeds from sale of property - - - - Other revenue 458 458 507 49 Total revenues 61,674$ 61,674$ 72,081$ 10,407$ Budgeted Amounts
City of Montebello
General Fund
As of June 30
(In thousands)
Retirement Fund is reserved for the payment of retirement expenses (both Normal Cost and Unfunded Accrued Liability) for all employees of the City. The Retirement Fund is financed by the retirement portion of the property tax revenue (i.e., property tax override) pursuant to a 1946 voter approved initiative to provide for the retirement benefit costs of City employees. The City’s Retirement Fund increased fund balance by $4.368 million as of June 30, 2023, to a total of $25.415 million. The largest expense is the $11.713 million in Transfers Out related to the reimbursement of General Fund pension costs and payment of debt service on the $153.4 million in Pension Obligation Bonds issued in 2020. The expenses related to pension costs (General Fund) and debt service (Debt Service Fund) are recognized as non-Operating Expenses.
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
17 Transportation and Street Improvement Funds category is used to account for the activity of Los Angeles County Metropolitan Transportation Authority (Metro) Local Return Funds and State of California Gas Tax funds. This is a new presentation of these funds which began for the financial statements as of June 30, 222 , combining activity to better illustrate the revenue and expenses related to street and roads funds. During the year ended June 30, 2023, fund balance increased by $23 thousand. The combination of operating expenses – utilized for capital and maintenance projects – and Transfers Out – utilized to record debt service on the Sales Tax Revenue Bonds Series 2019ABC – was slightly less than revenue received.
Public Financing Authority Debt Service Fund is used to account for the accumulation of resources required for the payment of interest and principal on all revenue bonds issued by the Public Financing Authority. As of June 30, 2023, fund balance decreased slightly by $8 thousand. This fund is designed to act as a conduit for payment of debt service:
expenses (principal and interest charges) generally equal Transfers In (revenue).
Capital Asset and Debt Administration
Capital Assets
The City's capital assets for its governmental and business -type activities as of June 30, 202 3 amounted to $247.358 million, net of accumulated depreciation, a $36.404 million increase over the prior year . Capital assets include land, buildings, improvements, machinery and equipment, park facilities, roads, highways, and bridges. The table below provides a year-over-year comparison of capital assets (net of depreciation), broken out by Governmental Activities and Business-type Activities:
2023 2022 2023 2022 2023 2022 % of total
Land $ 3,413 2,731 6,272$ 6,307 9,685$ 9,038 3.9% Rights of way 14,392 14,392 - - 14,392 14,392 5.8% Construction in progress 32,647 25,208 27,193 13,431 59,840 38,639 24.2% Buildings and improvements 52,254 41,605 68,253 70,715 120,507 112,320 48.7% Machinery and equipment 7,346 7,546 20,967 15,884 28,313 23,430 11.4% Infrastructure 14,621 13,135 - - 14,621 13,135 5.9% $ 124,673 104,617 122,685$ 106,337 247,358$ 210,954 100.0% City of Montebello
Summary of Capital Assets, Net of Depreciation
As of June 30
(in thousands)
Governmental Activities Business-type Activities Total
The capital asset classes include:
• Sewer system, including sewer pipes, pumping stations, manholes, and laterals;
• Storm drain system, including storm drain pipes, flood control channels, and catch basins;
• Streets, including pavement, curb and gutter, sidewalks, medians, greenways, block walls and traffic signals;
• Buildings, including building remodels, building lighting systems, building equipment, and building roofs; and
• Parks, including associated structures and infrastructure assets.
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
18 Long-Term Liabilities
At the end of Fiscal Year 2022-23, the City had total debt outstanding of $382.621 million, an increase of $ 60.466 million compared to the prior year . This increase is from the addition of two new bond issuances: Lease Revenue Bond Series 2022A – Golf Course (Business Activities) and Lease Revenue Bond Series 2022B – Topgolf (Business Activities).
The Series 2022A bonds are being used to re -construct the City-owned golf course, turning the18 hole course into a re-imagined 9 hole course with a 6 hole short course. This brand new course will open in Spring, 2024. The Series 2022B bonds have been used to construct a Topgolf entertainment complex. The sublease agreement between the City and Topgolf requires annual debt service (i.e., improvement rent) to be paid by Topgolf. This transformative entertainment complex will boost economic growth and development in Montebello.
The outstanding debt includes $168.128 million of revenue bonds and $137.720 of pension obligation bonds. Claims payable of $31.418 million is a $3.973 million increase over the prior year. Compensated absences also increased, by $1.245 million, for a total of $8.112 million. The City’s Other Postemployment Benefit Obligation (OPEB) amount – as determined by the updated GASB 75 valuation – decreased by $3.548 million to $30.149 million from $33.697 million.
The table below provides an overview and comparison of the various types of long-term liabilities:
2023 2022 2023 2022 2023 2022
Revenue bonds, net 84,643$ 32,659$ 83,485$ 70,033$ 168,128$ 102,692$ Pension bonds, net 100,990 104,873 36,730 38,142 137,720 143,015 Claims payable 31,418 27,445 - - 31,418 27,445 Notes payable 5,782 6,742 722 863 6,504 7,605 Capital lease obligation 590 784 - 50 590 834 Compensated absences 6,678 5,592 1,434 1,275 8,112 6,867 Other postemployment
benefits obligation 26,755 29,906 3,394 3,791 30,149 33,697 Sub total 256,856 208,001 125,765 114,154 382,621 322,155 Less current portion 16,883 16,569 4,854 4,558 21,737 21,127 Noncurrent portion 239,973$ 191,432$ 120,911$ 109,596$ 360,884$ 301,028$ City of Montebello
Summary of Long-term Debt
As of June 30
(in thousands)
Governmental Activities Business-type Activities Total
Additional information on the City's long-term debt can be found in Note 7 to the basic financial statements section of this report.
Credit Rating
As of the date of this ACFR, the City S&P issuer credit rating (ICR) is “A+”, with the underlying credit rating on the City’s outstanding lease revenue bonds is “A”, with a “stable” outlook. These latest ratings were reaffirmed when the City issued $15.140 million in Lease Revenue Bonds, Series 2022A – Golf Course in September, 2022, which have been utilized to refurbish and reconstruct the City’s public golf course (see paragraph above for additional details on this bond issuance). The outlook for all ratings is “stable.” It should be noted that the “A+” ICR reflects S&P’s view of the City’s general creditworthiness.
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
19 Organizational and Economic Overview
The financial statements and commentary found in the prior three ACFR’s has been dominated by the impacts of the Coronavirus pandemic. For the results as of June 30, 202 3, these impacts have all but disappeared and there appears to be a return to “pre -pandemic” economic and financial activity. Overall, the local Montebello economy appears to be healthy, as evidence by continued strong sales and transaction and use tax performance. Also, the City’s two hotels are performing well, seeing occupancy rates at or near levels last seen pre-pandemic (i.e., 2019).
For most of FY 2022-23, the discussion surrounding the economy focused on inflation, and the various causes of the generationally high inflation rate and methods used by the Federal Reserve to temper its impacts on the economy.
Hand-in-hand with the inflation discussion have been discussions of whether the Federal Reserve can pull off a “soft- landing” and prevent the U.S. economy from sliding into a recession. As of the publication of this ACFR, it appears the Federal Reserve’s reduction in the Federal Funds Rate, couple d with falling inflation and steady job growth have combined to – at least for now – avert an economic downturn.
For this and other reasons, it is imperative that Montebello’s economic development activities promote projects that expand the City’s sales tax and property tax base. Looking ahead, there is much to be excited about in Montebello in these arenas, with several projects begun prior to FY 2022 -23 that will contribute to the City’s long -term economic health and viability once completed in the near future.
The issuance of $15.140 million in lease revenue bonds in September, 2022 (LRB Series 2022A) has ushered in a new era for the City’s public golf course These proceeds will be used to completely reconstruct the existing golf course, creating a championship 9-hole course, a 6-hole “executive” course, and adding lights for the ability to play golf during evening hours. This project will help the Golf Course reduce – even eliminate – the subsidy required from the General Fund. The renovated golf course is slated to open in May, 2024.
Connected to the Golf Course Renovation Project is the construction of a Topgolf facility on 15 acres of the existing golf course property. This project is funded with the $55.4 million in lease revenue bonds issued in December, 2022 (LRB Series 2022B). In a unique financing arrangement, the Public Financing Authority issued the bonds, with a sub- lease and guaranty tied to the issuance that requires Topgolf to pay the annual debt service (i.e., improvement rent).
The completed Topgolf facility will be a thr ee-story entertainment and event center, featuring 102 hitting bays, a restaurant, meeting space and a pro shop. In addition to the commitment to pay annual debt service, Topgolf will pay an annual lease for the use of City property ($1.150 million for the first five years, with increases every five years after). In addition, the facility will generate sales tax revenue, which will help boost overall General Fund revenue.
Topgolf Montebello is scheduled to open in May, 2024.
In addition to these exciting capital projects and economic development initiatives, the City finally received approval from the Public Utilities Commission (PUC) to sell its water system. The PUC decision was finalized in December 2022, and escrow closed in February 2023. The sale of the water system to San Gabriel Valley Water Company (SGVWC) concludes a long saga of the City attempting to sell its water system. The State Auditor, in its December 2018 report, recommended the City pursue the sale, and the October 2021 follow up report noted this recommendation and continued to support the sale. The City received $15.857 million in proceeds from the sale, which can be seen as non-operating revenue recorded in the General Fund in FY 2022-23. In addition, the City will receive annual water rights lease payments as condition of the sale of the water system. These water rights added $173,925 to General Fund revenues in FY 2022-23.
As noted in the preceding pages, the General Fund’s fund balance increased by $13.753 million, to $28.469 million as of June 30, 2023. The proceeds from the sale of the water system contributed to the increase in reserves, allowing the City to begin following its adopted GASB 54 compliant reserve policies. The fiscal year ending June 30, 2023 saw partial implementation of the reserve policies for the first time since their approval by City Council in June 2020. Two Commitments – Economic Uncertainties and Unfunded Liabilities – and one Assignment – Capital Projects – were reserved in fund balance. Details can be found in Note 13.
City of Montebello
Management’s Discussion and Analysis (Unaudited) (Continued) For the Year Ended June 30, 2023
20 In FY 2022-23, the City continued critical work related to upgrading its information technology and cybersecurity infrastructure. This project has been funded using a portion of the Coronavirus State and Local Fiscal Recovery Funds (CSLFRF) revenue the City received between May 2021 and 2022. The total $16.59 million in CSLFRF revenue received by Montebello has been categorized as “revenue loss,” as permitted by U.S. Treasury Interim Final and Final Rules. This much needed funding has allowed the City to fast-track the technology upgrade, improving security, storage and productivity hardware and software. The project will continue in subsequent fiscal years, with completion anticipated sometime in FY 2023-24.
These are just a few highlights of the many projects underway in Montebello that are aimed at improving residents’ lives and helping to put the City on a long-term path to financial stability and sustainability. Some other projects that either began or were continued into FY 2022-23 are the following:
• Utilization of $15.140 million in bonds to fully renovate and rejuvenate the City’s public golf course • Utilizing bond proceeds to construct a Topgolf on 15 acres of the City’s public golf course • Completion of a portion of the “Paving the Way” projects that improved residential street and road conditions • Major repairs to the City’s aging sewer system, utilizing a portion of the City’s CSLFRF funding allocation • Expansion of the Montebello Community Assistance Program (MCAP) aimed at helping the City’s unhoused population
• Significant progress on the City’s General Plan update, the first in over forty years , with anticipated City Council adoption by April, 2024
• Completion of a park and facilities needs assessment study and master plan • Completion of significant facility repair and upgrade projects, eliminating years of deferred maintenance on key City facilities
• Introduction of improved purchasing and procurement guidelines • Receiving the Government Finance Officers Association (GFOA) award for budget preparation for the third time in the history of the City
• Approval to finance installation of solar panels at City facilities
Management and the City Council continue to be dedicated to improving Montebello’s long -term financial sustainability. Pursuing projects that are externally and internally focused – capital and infrastructure projects as well as organizational improvements – will strengthen Montebello’s abilities to weather changes in the economy as well as the “next pandemic,” in whatever form that may appear.
Requests for Information
This financial report is designed to provide a general overview of the City's finances for all those with an interest in the government's finances. Questions concerning any of the information provided in this report can be answered by visiting the City’s website at www.montebelloca.gov.
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ITEM # 26
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: David Sosnowski, Director of Recreation and Community Services
SUBJECT: APPROVE ISSUING REQUEST FOR PROPOSALS (RFP) NO. 24-19
FOR REPLACEMENT AND INSTALLATION OF TWO LED SIGNS
DATE: June 26, 2024
RECOMMENDATION(S):
It is recommended that the City Council:
1. Authorize issuing a Request for Proposals ("RFP”) No. 24-19 for replacement and installation of two Light Emitting Diode (LED) signs – one located at City Park and the other located at the Montebello Civic Center; and,
2. Take such additional, related, action that may be desirable.
BACKGROUND/DISCUSSION:
The City is seeking a qualified vendor to complete the removal of two existing, inoperable LED sign cabinets (one at City Park and the other at the Civic Center) and their respective pole covers. The awarded vendor will be tasked to design and install new pole cover wraps and double-sided message unit cabinets with a design that complements the surrounding esthetics of the site and incorporates the City brand. The selected vendor will additionally create and install the necessary software and provide training to City staff on how to operate the messaging functions of the new LED sign cabinets.
Once in operation, these LED signs will improve the City’s communication efforts by adding a new format for mass messaging and further allow the City to continue its commitment to sustainability and technological advancement. By investing in this modern signage solution for these two important locations, the City aims to demonstrate its proactive approach to infrastructure modernization, community engagement, and support for local commerce while effectively reaching larger quantities of residents and visitors.
CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 26, 2024
ENVIRONMENTAL:
N/A
ANALYSIS:
N/A
SUMMARY:
Staff recommends the City Council authorize the issuance of RFP 24-19 for the replacement and installation of two LED signs – one located at City Park and the other located at the Montebello Civic Center.
ATTACHMENT(S)
1. RFP 24-19 - Installation of two (2) LED signs-DRAFT- d.s. 6-11-24
1 CITY OF MONTEBELLO
Request for Proposals
RFP No. 24 – 19
Replacement and Installation
Of Two (2) New LED Signs
Release Date: Thursday, June 27, 2024
Questions Due: Wednesday, July 17, 2024, at 11 a.m. PDT Due Date: Monday, July 29, 2024, at 11 a.m. PDT
2 [THIS PAGE IS INTENTIONALLY LEFT BLANK]
3 TO PROSPECTIVE PROPOSERS
The City of Montebello (“City”) invites proposal submissions under this Request for Proposals (“RFP”). The City will evaluate responses to this solicitation to determine qualifications. Submissions must adhere to the format and content described. Only proposals that adhere to the requirements will be evaluated. The information set forth is the minimum required to qualify for consideration. The successful Proposer will be required to enter into a Professional Services Agreement based on the specifications outlined in this RFP.
DATE OF SOLICITATION
June 27, 2024
PROJECT
Replacement and iationnstallation of two LED signs.
PROPOSAL OWNER
City of Montebello – Department of Finance
1600 West Beverly Boulevard
Montebello, CA 90640
Attn: Michael Solorza, Director of Finance
Contact Phone: (323) 887-1200
Contact E-Mail: [email protected]
PROPOSAL CONTACT
City of Montebello – Department of Parks and Recreation 1600 West Beverly Boulevard
Montebello, CA 90640
Attn: David Sosnowski, Director of Parks and Recreation Contact Phone: (323) 887- 1200
Contact E-Mail: [email protected]
Any questions about this RFP should be submitted via the City's PlanetBids Portal by Wednesday, July 17, 2024, at 11:00 a.m. PST. Prospective vendors must register their business with PlanetBids before being able to view or submit a response. To access the City's PlanetBids Portal, please go to:
https://www.montebelloca.gov/cms/one.aspx?portalId=58756&pageId=84839
4 Table of Contents Page
1.0 Notice Inviting Proposals 5
2.0 Introduction/About the City of Montebello 6
3.0 Timeline 6
4.0 Purpose 6
5.0 Scope of Work 7
6.0 Vendor Qualifications 9
7.0 Proposal Submittal 9
8.0 Evaluation of Proposal 10
9.0 Proposal Protests 10
10.0 Execution of Agreement 12
11.0 Insurance 12
12.0 Use of Federal Funds 14
13.0 Non-Commitment of City 15
14.0 Labor Requirements 15
15.0 Records 16
16.0 Subcontractors 16
17.0 Modifications/Changes 16
18.0 Disclosure of Information 16
19.0 Ex-Parte Communications 16
20.0 City of Montebello Rights 17
Appendix A – Proposal Content and Format
Appendix B – Sample Professional Services Agreement
Appendix C – Cost Proposal
Appendix D – References
5 1.0 Notice Inviting Proposals
The City of Montebello seeks proposals from qualified vendors to provide the replacement and installation of (2) two new LED signs following the specifications, terms, and conditions identified in this RFP. Prospective respondents are advised to carefully read information related to this opportunity before submitting a response.
To view the complete RFP package, please visit:
https://www.montebelloca.gov/cms/one.aspx?portalId=58756&pageId=84839 Prospective vendors must register with PlanetBids before being able to view or submit a response.
Questions must be submitted by Wednesday, July 17, 2024, at 11:00 a.m. PST. *****QUESTIONS MUST BE SUBMITTED VIA PLANETBIDS*****
Proposals must be submitted via PlanetBids by Monday, July 29, 2024, at 11:00 a.m.
PST.
Responses will be evaluated to determine the vendor that is the most qualified and responsive to the requirements. Responses must adhere to the format and content described. The City reserves the right to accept or reject any and all proposals.
6 2.0 Introduction
The City of Montebello invites prospective vendors to submit a proposal to provide the installation of two (2) new LED signs. The city is seeking a vendor to remove and dispose of two (2) existing LED cabinet messaging units and pole covers. The city would like a new design and installation of a new pole cover wrap and double-sided messaging unit cabinets with the City brand. The goal is to improve communication and provide valuable information to residents, visitors, and business owners promptly.
The City will also require the selected vendor to provide training to city staff on the operation of newly installed LED signs.
About the City of Montebello
Montebello ("beautiful mountain" in Spanish and Italian) is a city in the County of Los Angeles. Founded in 1899 and incorporated in 1920, the City is an 8.37 square mile General Law City located east of Downtown Los Angeles. Currently, the City has a population of approximately 63,000 residents. It hosts a mix of various industries that represent the business diversity of the County of Los Angeles. It is a full-service City that provides a long list of services, employing approximately 600 full-time and part-time employees in public safety, transit, and non-safety functions.
3.0 Timeline
•Release RFP Thursday, June 27, 2024
•Online Q&A Deadline Wednesday, July 17, 2024,11 a.m. PDT •Deadline to Submit Responses Monday, July 29, 2024, at 11 a.m. PDT •City Review of Submissions Early/Mid-August 2024
•Notifications Sent to Vendors Early/Mid-September 2024 •Award September/October 2024
4.0 Purpose
The purpose of this solicitation is to identify a qualified vendor to assist the City with removing and disposing of two (2) LED signs as well as installing new LED signs.
The Montebello Civic Center and Montebello City Park are the locations of 3’ 8” x 10’ LED signs atop 7’ x 2’ 9” tall poles that have been inoperable for nearly 10 years. Above the LED sign cabinets are 10’ x 4’ 1” header panels that carry the City’s old brand and the location name of each specific sign. Prior to their inoperable status, these signs served as an important means of providing communication outlet to provide important information from the City during both the day and night to residents, business owners, and visitors along major thoroughfares within the City – Beverly Boulevard and Whittier Boulevard. Moreover, these LED signs allowed City staff to share messaging regarding
7 City events, Community meetings, and more with members of the public that do have contact with the City’s other communication outlets on social media, print newsletter, etc.
To revitalize these important communication platforms and allow City staff to begin utilizing them to share information with the public, new LED signs are requested to be installed. In addition to elevating communication, the new LED signs will align with Montebello's commitment to sustainability and technological advancement. LED technology is known for its energy efficiency, which will help reduce the city’s carbon footprint and lower long-term operational costs compared to traditional signage.
By investing in this modern signage solution for these two important City locations, Montebello aims to demonstrate its proactive approach to infrastructure modernization, community engagement, and support for local commerce, contributing to the City’s growth and prosperity.
The City is seeking to establish an agreement with a minimum term of three (3) years with up to two (2), year extension options for a total of up to five (5) years. This requirement may change during the process of finalizing the agreement with the selected vendor.
5.0 Scope of Work/Services
The City of Montebello is requesting proposals from qualified vendors capable of providing well-versed experience in removal, disposal, installation, and training of use for two (2) new LED signs.
The vendor awarded for the services through this RFP shall be required to provide the following:
The selected vendor will remove and dispose of two (2) existing LED cabinet messaging units and pole covers, design and install a new pole cover wrap and doubled-sided messaging unit cabinets with aesthetics that complement the surrounding aesthetics and City brand, create and install the necessary software, and provide City of Montebello staff training to operate messaging functions for the LED sign cabinets.
Additionally, the LED sign cabinet messaging units will meet the specifications of
6.667mm per LED panel and a brightness of 8,000 NITs per LED panel and include a 10-year warranty on all parts.
8 Additionally, the vendor will also design and install a header roughly 10’ x 4’ 1” above the LED sign cabinet that encompasses the City’s new brand and fits appropriately within the aesthetics of the area.
Potential Bidders are advised to visit the two (2) locations below at their own time and discretion.
Location 1- Outside City Hall (1600 W. BEVERLY BLVD MONTEBELLO, CA 90640)
9 Location 2- Montebello City Park (1301 W. WHITTIER BLVD MONTEBELLO, CA 90640)
6.0 Vendor Qualifications
The selected vendor must have the following minimum qualifications:
A.The proposer must possess a General Contractors License - B B.The proposer must possess an Electricians License – C10 C.Obtain a Business License by the City of Montebello
Background Check
Vendor representatives working on-site and in some remote capacities, will be required to undergo a background check conducted by the City.
7.0 Proposal submittal
Please review Appendix A - Proposal Format and Content, attached hereto and incorporated herein by this reference, for specific details regarding the information that needs to be included in your submission. Failure to provide all requested information may be considered “non-responsive” and rejected.
10 Responses to this RFP must be submitted electronically via the City’s PlanetBids Portal by the deadline. Any responses transmitted and/or time-stamped after the deadline will not be accepted. Vendors planning to submit responses to this request are highly encouraged to submit all documentation before the deadline to avoid technical difficulties/errors.
8.0 Evaluation Criteria
The City will establish an evaluation committee to review and rate each proposal. The proposal evaluation process will be conducted using a multi-step method which will include the following steps:
A.Preliminary Proposal Review - The evaluation committee will review each submission to ensure adherence to the minimum/proposal format requirements.
B.Proposal Evaluation - In the second part of this process, the evaluation committee will review and rate proposals using a combined score based on the following:
i. Qualifications as they relate to this project - 30% a. Thoroughness and understanding of the tasks to be completed b. Background and experience
c. Knowledge of the City of Montebello and incorporation of City brand into design
d. Experience of personnel assigned to the work
e. Communication Skills
ii. Reputation for integrity and competence – 10%
a. Positive Reference Checks
b. Work Samples
iii. Proposed fees for services – 60%
9.0 Protest Procedures
Proposal Protest Procedures (Before Proposal Opening)
A protest filed before the proposal opening must be filed in writing or by email no later than ten (10) working days before opening. The most common types of protest that might be filed before a proposal opening include those based upon restrictive specifications or alleged improprieties in any solicitation that is apparent before the scheduled proposal opening.
When a protest is filed before a scheduled proposal opening, certain steps must be
11 followed:
A. The protest must be submitted in writing within the specified time frame (no later than ten (10) working days prior to a proposal opening). All protests must be filed with the Director of Finance for determination. Protest must be submitted to the Director of Finance by mail or e-mail within the specified time frame. Protests can be sent to:
Mail:
Michael Solorza, Director of Finance
City of Montebello
Attn: Department of Finance
1600 W. Beverly Blvd
Montebello, CA 90640
or
E-mail:
[email protected]
B. The protest must contain factual and legal reason(s) and should recommend a proposed remedy. Nevertheless, it should be noted that the City reserves the right not to implement the proposed remedy but to offer alternative solutions where applicable.
C. Where appropriate, the City will hold an informal conference on the merits of a protest with all interested parties allowed to attend. Interested parties may include all proposers, subcontractors, or suppliers, provided they have a substantial economic interest in a portion of the RFP.
D. All potential proposers will be advised of a pending protest.
E. The City shall not open proposals prior to the resolution of the protest unless it is determined that:
•The items to be procured are urgently required;
•Delivery or performance will be unduly delayed by failure to make the award promptly; or
•Failure to make a prompt award will otherwise cause undue harm to the City.
The City will respond in writing within ten (10) working days after receipt of a properly
12 filed protest. The Director of Finance will respond and include a response to each substantive issue raised in the protest.
After the exhaustion of administrative remedies, the protesting party will be given the City’s final decision. The Director of Finance has the authority to decide on all protests.
Proposal Protest Procedures (After Proposal Opening/Post Award) A protest filed after a proposal opening must be filed within three (3) working days after the proposal opening date. The City will grant the protesting Vendor a fair review and shall have up to ten (10) working days to review the protest and render its decision.
10.0 Execution of Agreement
The resulting agreement (see attached sample Appendix B) shall be signed by the successful Vendor and returned within the required insurance within ten (10) business days after the City has provided written notice that the Vendor has been awarded.
Failure to execute the agreement and file acceptable insurance documents as provided herein shall cause, at the City's option, for annulment of the award. Please review the insurance requirements and indemnification clause in the attached sample agreement.
Should the successful Vendor decline to execute the agreement, the City can either reject all proposals, accept one of the other proposals, or issue a new solicitation.
11.0 Insurance
The Vendor selected must meet the following minimum insurance requirements upon execution of the City’s Professional Services Agreement:
A.Commercial General Liability
Commercial General Liability (CGL) (equivalent in coverage scope to Insurance Services Office, Inc. Form CG 00 01) shall cover on an “occurrence” basis for bodily injury and property damage, including premise-operations, products-completed, broad form property damage, blanket contractual liability, independent contractors, personal injury or bodily injury, and advertising injury with limits no less than $2,000,000 per occurrence and $4,000,000 aggregate.
If requested, the "City of Montebello, its officials, employees, and agents" must be separately endorsed to the policy as additional insureds on an endorsement equivalent to the Insurance Services Office, Inc. Form CG 20 10 11 85 of CG 20 26 1185.
B.Business Automobile Liability
For owned vehicles, hired, and non-owned vehicles, Insurance Services Office Form CA 00 01 covering, Code 1 (any auto), or if the vendor has not owned autos, Code 8
13 (hired) and 9 (non-owned) with a limit no less than $1,000,000 per accident for bodily injury and property damage.
If an automobile is not necessary to perform services, the Firm must submit a written request for a waiver of this requirement.
C.Professional Liability or Errors and Omissions
Depending on the work or services to be performed, professional liability or errors and omissions liability insurance may be required. The City will require the vendor to provide professional liability or errors and omissions liability insurance in an amount not less than $2,000,000 per occurrence or claim, $4,000,000 aggregate. Architects’ and engineers’ coverage shall be endorsed to include contractual liability.
D.Workers' Compensation and Employer's Liability
Workers' compensation as required by the California Labor Code and Employer's Liability in an amount not less than $1,000,000 per accident for bodily injury or disease.
Required Insurance Documentation
Certificate of Insurance
The Certificate Holder must be listed as follows:
City of Montebello
1600 West Beverly Boulevard
Montebello, CA 90640
Endorsements (if requested)
In addition to the Certificate of Insurance, the vendor must provide the following endorsements:
Additional insured endorsements to the general liability and auto liability* insurance policies. The "City of Montebello, its officials, employees, and agents" must be endorsed to the vendor’s general liability policy as well as the auto liability policy as additional insureds on an endorsement equivalent to ISO forms CG 20 10 11 85 or CG 20 26 11 85.
Cancellation notice endorsements. Each policy must be endorsed to certify that it will not be canceled or non-renewed by either party or reduced in coverage or limits (except by paid claims) unless the insurer has provided the City with thirty (30) days prior written notice of cancellation (ten (10) days for cancellation due to nonpayment of premium is acceptable).