AMENDMENT NO. 6 TO AGREEMENT NO. 3733
WHEREAS, any reference to a “First” or “Second” Amendment shall mean and have the same effect and as an “Amendment No.1”, “Amendment No. 2”, and so on; and
WHEREAS, the Parties each being mutually satisfied with the other’s performance thereof, desire to amend the Agreement once more to revise the insurance requirements in the agreement; and
NOW, THEREFORE, based upon the foregoing recitals, which the Parties agree are true and correct, and for good and adequate consideration the receipt and adequacy of which is acknowledged by the Parties, the Parties agree as follows:
AMENDMENT
SECTION 1: RECITALS. The above-referenced Recitals constitute a material part hereof and shall hereby be incorporated by reference.
SECTION 2: INSURANCE Through this Amendment No. 6, the Parties hereto agree to amend the insurance requirements as follows:
“A. Without limiting Consultant’s indemnification of indemnities pursuant to Section 3 of this agreement, Consultant shall obtain and provide and maintain at its own expense during the term of this agreement the types and amounts of insurance as described below:
(1) Commercial General Liability Insurance using insurance services office commercial general liability form CG 00 01 or the exact equivalent.
Defense costs must be paid in addition to limits. There shall be no cross- liability exclusion for claims or suits by one insured against another.
Limits shall be no less than $500,000 per occurrence for all covered losses and no less than $1,000,000 general aggregate.
(2) Business Auto Coverage on ISO business Auto Coverage form CA 0001 including symbol 1 (Any Auto) or the exact equivalent. Limits shall be no less than $500,000 per accident, combined single limit. If consultant owns no vehicles, this requirement may be satisfied by a non-owned auto endorsement to the general liability policy described in the preceding subsection. If consultant of consultant’s employees will use personal autos in any way on this project, Consultant shall provide evidence of personal auto liability coverage for each such person.
AMENDMENT NO. 6 TO AGREEMENT NO. 3733
(3) Workers’ Compensation insurance on a state approval policy form providing statutory benefits as required by law with employers’ liability limits no less than $500,000 per accident for all covered cost………..” SECTION 3: INCORPORATION OF REMAINING TERMS. Other than as expressly modified in this Amendment No. 6 with respect to the term of the Agreement, all remaining terms, conditions, and provisions of the Agreement (and any applicable amendment thereto), and the entirety thereof, shall remain in full force and effect, and is incorporated fully herein by this reference.
In WITNESS WHEREOF, the Parties have executed this Amendment No. 6 to Agreement No. 3733 provide Consulting Services for the Substance Abuse Program Monitoring and Oversight as of the day and year first above written. (the “CITY”) (the “CONSULTANT”) CITY OF MONTEBELLO LPM CONSULTING, INC.
By: By:
Raul Alvarez, City Manager Leila Procopio-Makuh, President
ATTEST:
By:
Christopher Jimenez, City Clerk
APPROVED AS TO FORM:
By:
Arnold M. Alvarez-Glasman, City Attorney
ITEM # 28
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: John Soria, Director
SUBJECT: APPROVE THE CITY OF MONTEBELLO DISADVANTAGED BUSINESS
ENTERPRISE (DBE) PROGRAM
DATE: May 14, 2025
RECOMMENDATIONS:
It is recommended that the City Council
1. Approve the City of Montebello Disadvantaged Business Enterprise (DBE) Program; and
2. Take such additional, related action that may be desirable.
FISCAL IMPACT:
There is not fiscal impact related to the recommended actions. However, the City receives U.S. Department of Transportation (U.S. DOT) funding through its participation in the DBE program. The U.S.. DOT uses 49 C.F.R. Part 26 to regulate Transportation DBE programs. This staff report provides revision to a guiding document that the City uses to administer the DBE program under these regulations.
BACKGROUND/DISCUSSION:
The City is required to implement and monitor established DBE goals as a recipient of U.S. DOT funding. A DBE is a for-profit small business owned and operated, with at least a 51% interest, by an individual from a presumed socially or economically disadvantaged background. The City calculates a DBE goal by evaluating local market conditions on a triennial basis (, i.e., every three (3) years). The DBE goal is then monitored and reported to the U.S. DOT on a regular basis.
On October 9, 2024, the Federal Transit Administration (FTA) moved to a two-tired
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system for DBE program compliance for recipients that receive planning, capital, or operating assistance. As outlined in the U.S. DOT’s updated DBE Final Rule at 49 CFR § 26.21(a), which went into effect May 9, 2024, the City is categorized as a Tier I recipient.
Tier I recipients are those recipients that will award prime contracts exceeding a cumulative total value of $670,000 in FTA funds in a federal fiscal year, excluding transit vehicle purchases. Tier I recipients are required to submit an updated DBE program that meets all the requirements outlined in 49 CFR Part 26.
ENVIRONMENTAL:
N/A
ANALYSIS:
Staff recommend revisions be made to the DBE Program to conform with U.S. DOT regulations by updating specific sections of the program.
The FTA requires recipients to update and submit DBE Goal-Setting Methodology. On January 31, 2025, staff submitted the updated DBE Goal-Setting Methodology for Federal Fiscal Year 2025-27. The updated DBE Goal-Setting Methodology was incorporated into the DBE Program.
The DBE Liaison Officer (DBELO) is responsible for the implementation and compliance of the City’s DBE Program. The current DBELO position is classified as an individual who holds the “Senior Management Analyst” title. The updated DBELO has changed to the Transit Administrative Manager and is reflected in the DBE Program without a specified name attached to the position.
Bidders/proposers who fail to meet the DBE contract goal or fail to provide documentation of Good Faith Efforts to provide DBE opportunities may be provided an administrative reconsideration by the DBE Reconsideration Official (DBERO). The DBE Program has identified the “Deputy Director of Transportation or designated position” as the DBERO.
Additionally, the DBE Organizational chart is updated to only include the titles of positions that monitor the City’s DBE Program without specific names attached.
SUMMARY:
Staff recommend that the City Council approve revisions to the City’s DBE Program; and direct staff to take such additional, related, action that may be desirable.
ATTACHMENT(S)
1. Attachment A: City of Montebello Disadvantaged Business Enterprise (DBE) Program
City of Montebello
DISADVANTAGED BUSINESS
ENTERPRISE (DBE) PROGRAM
MANUAL
May 28, 2025
Submitted to
U.S. Department of Transportation
Federal Transit Administration
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TABLE OF CONTENTS
PAGE
I. POLICY AND GENERAL REQUIREMENTS 4
A. Policy Statement
B. Objectives
C. Applicability
D. Non-Discrimination Requirements
II. DEFINITION OF TERMS 6
III. RECORD KEEPING REQUIREMENTS 12
A. Uniform Reports of DBE Awards/Commitments and Payments B. Bidders List
IV. ASSURANCES AND REQUIRED CONTRACT PROVISIONS 14
A. Non-Discrimination Assurances
B. Contractor Assurance Clause
C. Prompt Payment Clause
V. ADMINISTRATIVE REQUIREMENTS AND STAFFING 16
A. DBE Program Updates
B. DBE Liaison Officer (DBELO)
C. DBE Program Staffing
D. DBE Organizational Chart
E. DBE Reconsideration Official
F. Prompt Payment Mechanisms
G. DBE Financial Institutions
H. DBE Directory
I. Overconcentration
J. Business Development Programs
K. City Written Certification
L. Small Business Participation and Small Business Element VI. GOALS, GOOD FAITH EFFORTS AND COUNTING 23
A. Use of Set-asides or Quotas
B. Overall and Contract-Specific DBE Goals
C. Overall DBE Goal-Setting Methodology
D. Public Participation
E. Annual Review and Remedy Reports
F. Transit Vehicle Manufacturers
G. Methods for Meeting Goals
H. Contract-Specific Goal-Setting Methodology
I. Design-Build Contracts (Federal Register / Vol.68, No.1151) J. Evaluation and Award of Contracts with DBE Goals
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K. Meeting Established Goals or Demonstrating Good Faith Efforts L. Counting DBE Participation
VII. DBE CERTIFICATION AND ELIGIBILITY 38
A. California Unified Certification Program
B. Scope of Work Covered by Certification
C. Annual Affidavit of Continuing Eligibility
D. Notification of Change in Circumstances
E. Lapse in Certification Status
F. Procedures for Removal of DBE Eligibility
G. Certification Denials and Appeals
VIII. COMPLIANCE AND ENFORCEMENT OVERSIGHT 42
A. Information, Confidentiality, Cooperation
B. Monitoring Payments to DBEs
C. Compliance Monitoring
D. Submission of DBE Information and Ongoing Reporting Requirements E. DBE Participation Change Requests
F. Dispute Resolution
G. Administrative Sanctions for Non-Compliance
ATTACHMENT – DBE Organizational Chart 53
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I. POLICY AND GENERAL REQUIREMENTS
A. Policy Statement ( §26.1, §26.3)
The City of Montebello’s (hereinafter referred to as “City”) is a recipient of U.S. Department of Transportation (U.S. DOT) Federal Assistance funds through the Federal Transportation Administration (FTA). As a condition of receiving such assistance, the City has established a Disadvantaged Business Enterprise (DBE) Program in conformance with the federal DBE Program and its regulations published under U.S. DOT 49 CFR Part 26. The City is committed to fulfilling the spirit and intent of the federal DBE Program and its regulations by ensuring that DBEs have equitable access to participate in all federally funded City contracting opportunities.
The FTA has a two-tiered system for its DBE program compliance for recipients that receive planning, capital, or operating assistance. The City is a Tier I recipient because it will award prime contracts exceeding a cumulative total value of $670,000 in FTA funds in a federal fiscal year, excluding transit vehicle purchases. Tier I recipients must have a DBE program that meets all the requirements outlined in 49 CFR Part 26 (DOT has published a Summary of Rule Changes). In accordance with the U.S DOT’s DBE Program, the goal of the City’s DBE Program is to ensure that minority-owned, women-owned, and other disadvantaged small businesses can fairly compete for contracts and subcontracts financed in whole, or in part, with U.S. DOT funds.
Notices setting forth this policy are posted at the City’s office and website at:
www.montebelloca.gov and they are available to the public and to the DBE and non-DBE business communities that perform or are interested in performing work on City contracts.
Questions regarding City’s DBE Program should be addressed to DBE Liaison Officer, 23920 Valencia Blvd., Montebello, CA 91355, or by telephone at 661-286-4188.
B. Objectives (§26.1, §26.23)
In accordance with the intent of the U.S. DOT’s DBE Program regulations, the City is firmly committed to its DBE Program objectives, which are as follows:
1.Ensure non-discrimination in the award and administration of City’s U.S. DOT-assisted contracts;
2.Create a level playing field by which DBEs can fairly compete for the City’s U.S. DOT- assisted contracts;
3.Ensure that the DBE Program and Overall Goal are narrowly tailored in accordance with applicable law;
4.Ensure that only firms that meet 49 CFR Part 26 eligibility standards are permitted to participate as DBEs in the City’s DBE program;
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5.Help remove barriers which impede the participation of DBEs in the City’s U.S DOT- assisted contracts.
6.Promote the use of DBEs in all types of U.S. DOT-assisted agreements and procurement activities conducted by the City.
7.Provide training and other assistance through our resource partners to address capital, bonding, and insurance needs.
8.Assist in the development of DBE firms that can compete successfully in the marketplace outside of the DBE Program; and
9.Establish and provide opportunities for DBEs by providing flexibility in the implementation of the City’s DBE Program.
10.Monitor and enforce contractor compliance in meeting established DBE goals and/or exercising Good Faith Efforts (GFE) to do so as defined in 49 CFR Part 26.
Contractor shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of subcontracts.
To oversee the DBE Program, the City has designated the Transit Administration Manager to serve as the City’s DBE Liaison Officer (DBELO). However, all City executives, management and staff share the responsibility for making the City’s DBE Program a success and shall give their full cooperation to the DBELO in the implementation of this Policy. Implementation of the DBE Program has the same priority as all other legal obligations incurred by the City as contained within its financial assistance agreement with the U.S. DOT.
To formalize its commitment, the City of Montebello’s City Council hereby adopts the DBE Program applicable to the City of Montebello’s contracting operations.
City Manager Date
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C. Applicability (§26.3)
The City is a direct recipient of federal transit funds authorized by Titles I, III, V, and VI of ISTEA, Pub. L. 102-240 or by Federal transit laws in Title 49, U.S. Code, or Titles I, II, and V of the Teas-221, Pub.L. 105-178. These funds were received from the U.S. DOT, and as a condition of receiving U.S. DOT assistance, the City is required to submit for approval, to the U.S. DOT Operating Administration from which it receives the majority of its federal funding, a DBE Program developed in accordance with federal regulations published under Title 49 CFR, Part 26 and subsequent Guidance. This Program sets forth the policies and procedures to be implemented by the City to ensure that DBEs have an equitable opportunity to participate in the City’s U.DS. DOT-assisted contracting opportunities.
D. Non-Discrimination Requirements (§26.7)
The City will never exclude any person from participation in, deny any person the benefits of, or otherwise discriminate against anyone in connection with the award and performance of any contract covered by 49 CFR part 26 on the basis of race, color, sex, or national origin.
In administering its DBE program, the City will not, directly or through contractual or other arrangements, use criteria or methods of administration that have the effect of defeating or substantially impairing accomplishment of the objectives of the DBE program with respect to individuals of a particular race, color, sex, or national origin.
Through such efforts, the City will ensure that its contracting and procurement-related processes promote equity in access, consideration, and opportunity for DBEs in response to the requirements set forth under Title 49 CFR, Part 26: “Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs.” Any terms used in this section that are defined in 49 CFR Part 26, or elsewhere in the Regulations, shall have the meaning set forth in the Regulations. In the event of any conflicts or inconsistencies between the Regulations and the City’s DBE Program with respect to U.S. DOT-assisted contracts, the Regulations shall prevail.
II. DEFINITION OF TERMS (§26.5)
The City will adopt the definitions contained in 49 CFR Part 26 Section 26.5 for this program.
Some of the most common terms are defined below:
Affiliation: has the same meaning that the term has in the Small Business Administration (SBA) regulations, 13 CFR part 121.
(1) Except as otherwise provided in 13 CFR part 121, concerns are affiliates of each other when, either directly or indirectly:
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(i) One concern controls or has the power to control the other; or (ii) A third party or parties controls or has the power to control both; or (iii) An identity of interest between or among parties exists such that affiliation may be found.
(2) In determining whether affiliation exists, it is necessary to consider all appropriate factors, including common ownership, common management, and contractual relationships. Affiliates must be considered together in determining whether a concern meets small business size criteria and the statutory cap on the participation of firms in the DBE program.
Alaska Native: A citizen of the United States who is a person of one-fourth degree or more Alaskan Indian (including Tsimshian Indians not enrolled in the Metlaktla Indian Community), Eskimo, or Aleut blood, or a combination of those bloodlines. The term includes, in the absence of proof of a minimum blood quantum, any citizen whom a Native village or Native group regards as an Alaska Native if their father or mother is regarded as an Alaska Native.
Alaska Native Corporation (ANC): Any Regional Corporation, Village Corporation, Urban Corporation, or Group Corporation organized under the laws of the State of Alaska in accordance with the Alaska Native Claims Settlement Act, as amended (43 U.S.C. 1601, et seq.).
Assets: All the property of a person available for paying debts or for distribution, including one's respective share of jointly held assets. This includes, but is not limited to, cash on hand and in banks, savings accounts, IRA or other retirement accounts, accounts receivable, life insurance, stocks and bonds, real estate, and personal property.
Business, Business Concern or Business Enterprise: An entity organized for profit with a place of business located in the United States, and which operates primarily within the United States or which makes a significant contribution to the United States economy through payment of taxes or use of American products, materials, or labor.
Compliance: Correct and accurate implementation of U.S. DOT DBE Program requirements.
Contingent Liability: A liability that depends on the occurrence of a future and uncertain event. This includes, but is not limited to, guaranty for debts owed by the applicant concern, legal claims and judgments, and provisions for federal income tax.
Contract: A legally binding relationship obligating a seller to furnish supplies or services (including, but not limited to construction and professional services) and the buyer to pay for them. For purposes of this part, a lease is considered to be a contract.
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Contractor: One who participates, through a prime or subcontract (at any tier), in a DOR- assisted program.
Days: In computing any period of time described in this part, the day from which the period begins to run is not counted, and when the last day of the period is a Saturday, Sunday, or Federal holiday, the period extends to the next day that is not a Saturday, Sunday, or Federal holiday. Similarly, in circumstances where the recipient's offices are closed for all or part of the last day, the period extends to the next day on which the agency is open.
Disadvantaged Business Enterprise (DBE): A for-profit small business concern—
1. That is at least 51 percent owned by one or more individuals who are both socially and economically disadvantaged or, in the case of a corporation, in which 51 percent of the stock is owned by one or more such individuals.
2. Whose management and daily business operations are controlled by one or more of the socially and economically disadvantaged individuals who own it; and Department or U.S. DOT: The U.S. Department of Transportation, including the Office of the Secretary, the Departmental Office of Civil Rights, the Federal Highway Administration (FHWA), the Federal Transit Administration (FTA), and the Federal Aviation Administration (FAA).
U.S. DOT-Assisted Contract: means any contract between a recipient and a contractor (at any tier) funded in whole or in part with DOT financial assistance, including letters of credit or loan guarantees, except a contract solely for the purchase of land.
FTA Tier I Recipient: An FTA recipient to whom this part applies that will award prime contracts (excluding transit vehicle purchases) the cumulative total value of which exceeds $670,000 in FTA funds in a Federal fiscal year.
FTA Tier II Recipient: An FTA recipient to whom this part applies who will award prime contracts (excluding transit vehicle purchases) the cumulative total value of which does not exceed $670,000 in FTA funds in a Federal fiscal year.
Good Faith Efforts (GFE): Efforts to achieve a DBE goal or other requirement of this Part, which, by their scope, intensity, and appropriateness to the objective, can reasonably be expected to fulfill the program requirement.
Immediate Family Member: Father, mother, husband, wife, son, daughter, brother, sister, grandfather, grandmother, father-in-law, mother-in-law, sister-in-law, brother-in-law, and domestic partner and civil unions recognized under State law Indian Tribe or Native American Tribe: means any Indian tribe, band, nation, or other organized group or community of Indians, including any ANC, which is recognized as eligible for the special programs and services provided by the United States to Indians
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because of their status as Indians, or is recognized as such by the State in which the tribe, band, nation, group, or community resides. See definition of “tribally-owned concern” in this section.
Joint Venture: An association between a DBE firm and one or more other firms to carry out a single, for profit business enterprise, for which the parties combine property, capital, efforts, skills and knowledge, and in which the DBE is responsible for a distinct, clearly defined portion of the work of the contract and whose share in the capital contribution, control, management, risks and profits of the joint venture are commensurate with its ownership interest.
Liabilities: Financial or pecuniary obligations. This includes, but is not limited to, accounts payable, notes payable to bank or others, installment accounts, mortgages on real estate, and unpaid taxes.
Native Hawaiian: Any individual whose ancestors were natives, prior to 1778, of the area which now comprises the State of Hawaii.
Native Hawaiian Organization: Any community service organization serving Native Hawaiians in the State of Hawaii which is a not-for-profit organization chartered by the State of Hawaii, is controlled by Native Hawaiians, and whose business activities will principally benefit such Native Hawaiians.
Non-compliance: Failure, either willful or inadvertent, to correctly and accurately implement DBE Program requirements.
Notice of decision or NOD: Determination that denies a firm's application or decertifies a DBE.
Notice of intent or NOI: Recipients letter informing a DBE of a suspension or proposed decertification.
Operating Administration or OA: Any of the following agencies of the U.S. Department of Transportation (U.S. DOT): Federal Highway Administration (FHWA), Federal Transit Administration (FTA) and Federal Aviation Administration (FAA). The “Administrator” of an operating administration includes his or her designees.
Personal Net Worth or PNW: The net values of the assets of an individual reportable assets and liabilities, per the calculation rules in Section 26.68.
Primary Industry Classification: means the most current North American Industry Classification System (NAICS) designation which best describes the primary business of a firm. The NAICS is described in the North American Industry Classification Manual— United States, which is available on the Internet at the U.S. Census Bureau Web site:
www.census.gov/naics/.
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Primary recipient: means a recipient which receives U.S. DOT financial assistance and passes some or all of it on to another recipient.
Principal Place of Business: means the business location where the individuals who manage the firm's day-to-day operations spend most working hours. If the offices from which management is directed and where the business records are kept are in different locations, the recipient will determine the principal place of business. The term does not include construction trailers or other temporary construction sites.
Program: means any undertaking on a recipient's part to use DOT financial assistance, authorized by the laws to which this part applies.
Race-Conscious: measure or program is one that is focused specifically on assisting only DBEs, including women-owned DBEs.
Race-Neutral: measure or program is one that is, or can be, used to assist all small businesses. For the purposes of this part, race-neutral includes gender-neutrality.
Recipient: means any entity, public or private, to which DOT financial assistance is extended, whether directly or through another recipient, through the programs of the FAA, FHWA, or FTA, or that has applied for such assistance
Secretary: means DOT's Secretary of Transportation or the Secretary's designee.
Set-Aside: means a contracting practice restricting eligibility for the competitive award of a contract solely to DBE firms.
Small Business Administration or SBA: means the United States Small Business Administration.
SBA Certified Firm: A firm refers to firms that have a current, valid certification from or recognized by the SBA under the 8(a) BD or SDB programs.
Small Business Concern: means, with respect to firms seeking to participate as DBEs in DOT-assisted contracts, a small business concern as defined pursuant to section 3 of the Small Business Act and Small Business Administration regulations implementing it ( 13 CFR part 121) that also does not exceed the cap on average annual gross receipts specified in § 26.65(b).
Socially and Economically Disadvantaged Individual: means any individual who is a citizen (or lawfully admitted permanent resident) of the United States and who has been subjected to racial or ethnic prejudice or cultural bias within American society because of his or her identity as a member of a group and without regard to his or her individual qualities. The social disadvantage must stem from circumstances beyond the individual's control.
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(1) Any individual who a recipient finds to be a socially and economically disadvantaged individual on a case-by-case basis. An individual must demonstrate that he or she has held himself or herself out, as a member of a designated group if you require it. (2) Any individual in the following groups, members of which are rebuttably presumed to be socially and economically disadvantaged:
(i) “Black Americans,” which includes persons having origins in any of the Black racial groups of Africa;
(ii) “Hispanic Americans,” which includes persons of Mexican, Puerto Rican, Cuban, Dominican, Central or South American, or other Spanish or Portuguese culture or origin, regardless of race;
(iii) “Native Americans,” which includes persons who are enrolled members of a federally or State recognized Indian tribe, Alaska Natives, or Native Hawaiians; (iv) “Asian-Pacific Americans,” which includes persons whose origins are from Japan, China, Taiwan, Korea, Burma (Myanmar), Vietnam, Laos, Cambodia (Kampuchea), Thailand, Malaysia, Indonesia, the Philippines, Brunei, Samoa, Guam, the U.S. Trust Territories of the Pacific Islands (Republic of Palau), Republic of the Northern Mariana Islands, Samoa, Macao, Fiji, Tonga, Kiribati, Tuvalu, Nauru, Federated States of Micronesia, or Hong Kong;
(v) “Subcontinent Asian Americans,” which includes persons whose origins are from India, Pakistan, Bangladesh, Bhutan, Maldives, Nepal or Sri Lanka; (vi) Women;
(vii) Any additional groups whose members are designated as socially and economically disadvantaged by the SBA, at such time as the SBA designation becomes effective. (3) Being born in a particular country does not, standing alone, mean that a person is necessarily a member of one of the groups listed in this definition.
Spouse: means a married person, including a person in a domestic partnership or a civil union recognized under State law.
Transit Vehicle Manufacturer (TVM): means any manufacturer whose primary business purpose is to manufacture vehicles built for mass transportation. Such vehicles include, but are not limited to buses, rail cars, trolleys, ferries, and vehicles manufactured specifically for paratransit purposes. Businesses that perform retrofitting or post-production alterations to vehicles so that such vehicles may be used for public transportation purposes are also considered TVMs. Businesses that manufacture, mass-produce, or distribute vehicles primarily for personal use are not considered TVMs.
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Tribally-owned Concern: Any concern at least 51 percent owned by an Indian tribe as defined in this section.
Unsworn Declaration: An unsworn statement, dated and in writing, subscribed as true under penalty of perjury.
You: A recipient, unless a statement in the text of this part or the context requires otherwise (i.e., You must do XYZ’ means that recipients must do XYZ).
III. RECORD KEEPING REQUIREMENTS (§26.11)
The City maintains a recordkeeping system which identifies U.S. DOT-assisted contract awards and tracks prime contractors’ progress in achieving DBE goal commitments throughout the performance of the contract. The City verifies payments made to DBEs and keeps record of actual DBE attainments. Any areas of identified non-compliance by Prime Contractors are subject to administrative sanctions against the contractor as outlined in this manual.
The City’s records serve to document all information, for each U.S. DOT-assisted contract, needed to comply with U.S. DOT regulations. Records will include, but will not be limited to, the following information:
1. Contract funding source(s);
2. Contract title and number;
3. Type of contract (e.g., construction, professional services, material supplies, TVM or other);
4. DBE contract goal, if applicable, and methodology used in establishing the goal;
5. Prime contractor/consultant name, address and primary contact;
6. DBE commitment (percentage and dollar value of contract allocated to DBEs);
7. Good Faith Effort (GFE) analysis and evaluation results, if applicable;
8. Name, certification status (DBE or non-DBE) and subcontract dollar value for each listed subcontractor;
9. DBE status, gender, ethnicity, and dollar value of participation for each listed DBE;
10. Type of work performed by each listed DBE (i.e., subcontractor, regular dealer/supplier, broker, manufacturer, trucking company, etc.);
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11. Tally of DBE utilization throughout the life of the contract, including final DBE utilization reported at contract close-out;
12. Field observation/on-site interview forms;
13. Monthly Report measuring DBE commitment percentage and dollar amount vs. actual attainment;
14. Certification by the City, attesting to having monitored contractor compliance, documentation submittal requirements, and on-site performance; and
15. Outreach efforts made by the City to inform DBEs of the contracting opportunity and inform prime bidders/proposers of DBE availability and interest in the contract.
A. Uniform Reports of DBE Awards/Commitments and Payments (§26.11(a)) The City’s DBELO or designee shall submit, for FTA review and approval, a semi-annual Report of DBE Awards or Commitments and Payments (Exhibit D). In conformance with FTA direction the City will submit reports through FTA’s Transit Award Management System (TrAMS) by June 1 and December 1 of each federal fiscal year. The reports shall list the dollar value of DBE participation for U.S. DOT-assisted contracts and subcontracts awarded and closed and shall demonstrate the City’s progress toward reaching the FTA- approved overall/triennial DBE goal. All dollar amounts reported will reflect the federal share of such contracts. The report will identify the dollar amount awarded to certified DBEs through the use of race conscious methods and race neutral methods. The City will also report DBE participation and payments on ongoing contracts.
The City will adhere to the following reporting period based on the Federal Fiscal Year •Reporting period: October 1 st through March 31st report due June 1st •Reporting period: April 1 st through September 30th due December 1st B. Bidders List: §26.11(c)
49 CFR §26.11 requires the City to create and maintain a Bidders List. All U.S. DOT- assisted contracts shall include a contract clause requiring all prime bidders/proposers to submit a completed Bidders List to the City, for their firm and for all firms (DBE and non- DBE) that submitted a bid, proposal or quote, to the prime bidder/proposer on U.S. DOT- assisted contracts, including firms who were contracted by the prime bidder. The Bidders List shall, at a minimum, contain the following information for each firm:
1.Firm name
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2.DBE certification status
3.Address
4.Phone #
5.Email
6.Age
7.Contract/Agreement amount
8.Contact name and title
9.Type of product/service provided/NAICS
10.Range of annual gross receipts
11.DBE Certification Status
12.DIR Registration No.
"MBL will include a contract clause requiring prime bidders to report the names, addresses, and potentially other relevant details of all firms that submit subcontractor quotes. Additionally, MBL will conduct a recipient-directed survey of a statistically valid sample of firms from the collected list to gather information on business age and size.” IV. ASSURANCES AND REQUIRED CONTRACT PROVISIONS
A. Non-Discrimination Assurances (§26.13(a))
Pursuant to the requirements of this Part, the City will sign the following assurance as a condition of financial assistance agreements with the U.S. DOT, and which is hereby made applicable to all of the City’s U.S. DOT-assisted contracts:
“The City shall not discriminate on the basis of race, color, national origin, or sex in the award and performance of any U.S. DOT-assisted contract or in the administration of its DBE Program or the requirements of Title 49 CFR, Part 26. The City shall take all necessary and reasonable steps under Title 49 CFR, Part 26 to ensure nondiscrimination in the award and administration of U.S. DOT-assisted contracts. The City’s DBE Program, as required by Title 49 CFR, Part 26 and as approved by U.S.
DOT Operating Administrations, is incorporated by reference in this agreement.
Implementation of this Program is a legal obligation and failure to carry out its terms shall be treated as a violation of this agreement. Upon notification to the City of its failure to carry out its approved Program, the Department may impose sanctions as provided under Title 49 CFR, Part 26 and may, in appropriate cases, refer the matter for enforcement under 18 U.S.C. 1001 and/or the Program Fraud Civil Remedies Act of 1986 (31 U.S.C. 3801 et seq.).”
B. Contractor Assurance Clause (49 CFR §26.13b)
For the period for this report the Clause is not applicable to the City. However, in the future if City has a sub-recipient the City shall ensure that the following language and/or procedures are included in all financial assistance agreements with sub-recipients:
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The City shall require that the prime contractor include the following clause in every U.S. DOT- assisted contract and subcontract:
"The Contractor, City or subcontractor shall not discriminate on the basis of race, color, national origin, or sex in the performance of this Contract. Contractor shall carry out applicable requirements of 49 CFR Part 26 in the award and administration of U.S. DOT- assisted contracts. Failure by Contractor to carry out these requirements is a material breach of this contract, which may result in the termination of this contract or such other remedy as the City deems appropriate, which may include, but is not limited to:
(1) Withholding monthly progress payments;
(2) Assessing sanctions;
(3) Liquidated damages; and/or
(4) Disqualifying the Contractor from future bidding/proposing as non-responsible.
Contractor agrees to include these requirements in all subcontracts at any tier." This language is to be used verbatim, as it is stated in 26.13(b).
C. Prompt Payment Clause
The City has adopted a prompt payment provision on all U.S. DOT-assisted contracts to facilitate timely payment to all subcontractors in accordance with regulatory mandates. Pursuant to 49 CFR Part 26.29, the City will include the following clause in each U.S. DOT-assisted contract:
“Contractor/Consultant agrees to pay each subcontractor under this Contract for satisfactory performance of its contract no later than seven (7) days from the receipt of each payment Contractor/Consultant receives from the City. Contractor/Consultant agrees further to return retainage payments to each subcontractor within thirty (30) days after receiving payment for work satisfactorily completed and accepted including incremental acceptances of portions of the Agreement work by the City. Any delay or postponement of payment from the above referenced time frame may take place only for good cause and with the City’s prior written approval.” Contractor/Consultant shall incorporate this clause verbatim set forth above, in all subcontract, broker, dealer, vendor, supplier, purchase order or other source agreements issued to both DBE and non-DBE firms.
Any violation of the provisions listed above shall subject the violating Contractor/Consultant to the penalties, sanctions, and other remedies specified in Section 7108.5 of the California Business and Professions Code. This requirement shall not be construed to limit or impair any contractual, administrative or judicial remedies otherwise available to Contractor/Consultant or subcontractor in the event of a dispute
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involving late payment or nonpayment by Contractor/Consultant; deficient subcontractor performance and/or noncompliance by a subcontractor.
Failure to comply with this provision without prior approval from the City will constitute noncompliance, which may result in the application of appropriate administrative sanctions, including, but not limited to, a penalty of two percent (2%) of the invoice amounts due per month, for every month that full payment is not made.
V. ADMINISTRATIVE REQUIREMENTS AND STAFFING
A. DBE Program Updates (§26.21)
As a recipient of more than $250,000 of U.S. DOT financial assistance over a Federal Fiscal Year and pursuant to 49 CFR §26.21, the City shall continue to implement the DBE Program unless and until all funds from U.S. DOT financial assistance have been expended.
The City will regularly review directives issued by U.S. DOT and update its DBE Program as necessary to fully comply with the intent of the US DOT’s DBE Program. The City will promptly advise all applicable U.S. DOT Operating Administrations, of any significant updates and/or changes to the City’s DBE Program.
B. DBE Liaison Officer (DBELO) (§26.25)
The City Manager, while maintaining ultimate responsibility for the City’s DBE Program, has designated the Senior Management Analyst to serve as the DBE Liaison Officer (DBELO) with responsibility for the implementation of all aspects of the City’s DBE Program and ensuring that the City complies with all provisions of 49 CFR Part 26.
DBELO has direct, independent access to the City Manager concerning DBE Program matters. DBELO is responsible for developing, implementing and monitoring the DBE Program, in coordination with other appropriate officials. A DBE Program Implementation Organizational Chart demonstrating the DBELO’s position in the organization can be found in Exhibit A “DBE Program Organizational Chart”. Contact information for the City’s DBELO is as follows:
Transit Administration Manager
DBE Liaison Officer
City of Montebello
400 S. Taylor Avenue
Montebello, CA 90640
Telephone: (323) 558-1625
The DBELO and or their support staff’s duties include, but are not limited to, the following activities:
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•Analyze and revise DBE program policies and procedures as necessary. •Submit updates to the U.S. DOT, regarding any significant changes to the City’s DBE Program.
•Works with the City departments and DBE consultant to perform goal-setting analysis, establish methodology, and calculate overall triennial DBE goals. •Review triennial/overall DBE goal commitments at the end of each Federal Fiscal Year (FFY); analyze any goal shortfall(s); provide to the FTA (within 90 days after FFY end), a written analysis of why the overall goal was not achieved, as well as a written plan for corrective actions that the City will take, to remedy the goal shortfall. •Conduct and coordinate outreach efforts to DBEs and small businesses to provide information regarding contracting opportunities with the City. •Participates in development of DBE information to be presented at pre-bid/pre- proposal meetings for purposes of reviewing DBE solicitation and contract requirements with potential bidders and/or offerors.
•Ensure that solicitation documents and contract templates include all relevant DBE Program elements, contractor documentation submittal requirements and required contract provisions.
•Work with the City’s contracting/procurement staff to remove, where feasible, barriers which may limit DBE participation, by ensuring that Invitations for Bids (IFBs) and Requests for Proposals (RFPs) do not contain unduly restrictive requirements; ensure that sufficient time is allowed during the pre-bid phase, for DBEs to schedule attendance at pre-bid/pre-proposal meetings and for non-DBEs to perform adequate good faith efforts established .
•Maintain a Bidders List of firms that submit a bid, quote or proposal for participation on a City contract; ensure that the Bidder List contains all information required by 49 CFR §26.11.
•Ensure Good Faith Efforts are reviewed for responsiveness when bids/proposals do not meet DBE contract goals.
•Develop and implement technical assistance programs for DBEs, including resources and referrals to supportive services.
•Investigate services and resources offered by banks and/or financial institutions owned and controlled by socially and economically disadvantaged individuals.
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•Ensure that any DBE subcontractor terminations by the prime Contractor are for “good cause” only, and that any such terminations receive prior written approval by the City.
•Monitor and enforce contractor compliance with all DBE Program provisions including goal commitments, documentation submittal requirements, reporting requirements, prompt payment to subcontractors, and DBE utilization requirements; impose administrative sanctions and/or monetary penalties for contractor’s willful non-compliance.
•Ensure procedures are in place that require upon completion of each contract on which DBEs were utilized, a written affidavit attesting to monitoring and verification of contractor compliance with all DBE Program provisions. •Provide timely DBE reports to the FTA, including the annual Uniform Report of DBE Awards or Commitments and Payments.
•Implement provisions to facilitate participation of small businesses on U.S. DOT- assisted contracts.
C. DBE Program Staffing (§26.25)
The DBELO is supported by a support staff of two and a DBE consultant. The DBELO will work closely with support staff and the management staff to ensure the DBE Program is implemented uniformly and that all pertinent DBE information is captured within the City’s reports the FTA.
The consultant provides assistance to the City in updating its approved Disadvantaged Business Enterprise (DBE) Program in accordance with U.S. Department of Transportation (U.S. DOT) DBE Program set forth under Title 49 Code of Federal Regulations (CFR) Part 26.
D. DBE Organizational Chart (§26.25)
See Exhibit A “DBE Program Organizational Chart.”
E. DBE Reconsideration Official (§26.53 (d)(2))
In instances where contract goals are established and the bidder/proposer either fails to satisfy the requirements for meeting the contract goal or fails to document a sufficient Good Faith Effort (GFE) to do so, the City will afford the bidder/proposer, prior to award of the contract, an opportunity for administrative reconsideration of the City’s determination of non-responsiveness.
Unless otherwise specified, the bidder/proposer may, within two (2) business days of being informed by the City of its non-responsiveness due to its failure to document and
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provide sufficient and adequate Good Faith Efforts in the subject procurement, request administrative reconsideration. Bidders/Proposers must make this request in writing to the Reconsideration Official as designated herein.
To ensure integrity in the process, the Reconsideration Official will not have played any role in the original determination that the bidder/proposer did not meet the established contract-specific DBE goal or adequately document Good Faith Efforts as specified in the subject procurement. The City has designated the following individual to serve as DBE Reconsideration Official:
Deputy Director of Transportation
DBE Reconsideration Official
City of Montebello
400 S. Taylor Avenue
Montebello, CA 90640
Telephone: (323) 558-1625
The City, at its discretion, may utilize another U.S. DOT recipient agency’s DBELO or Reconsideration Official who is a member of the California Unified Certification Program as an independent, impartial party to serve in the capacity of Reconsideration Official.
As part of this reconsideration, the bidder/proposer will have the opportunity to provide written evidence/documentation or argument concerning the issue of whether it met the goal or made adequate Good Faith Efforts to do so. Further, the bidder/proposer will have the opportunity to meet with the Reconsideration Official in person to discuss the issue of whether it met the goal or made adequate Good Faith Efforts to do so. The City will document the basis for the reconsideration determination and forward the final written determination to the bidder/proposer within seven (7) working days of the hearing date. All parties shall be advised that reconsideration final decisions are NOT administratively appealable to U.S. DOT.
Further, the City’s Reconsideration Official and/or designee shall also perform oversight of the reconsideration process. The Reconsideration Official and/or designee’s duties include, but are not limited to, the following activities:
1. Ensures that all DBE administrative reconsideration procedural actions are consistent with the requirements and standards specified in Title 49 CFR, Sections
26.53 and 26.87, and that the Program’s integrity is maintained at all times.
2. Reviews bidder/proposer written documentation or argument concerning the issue of whether it met the goal or made adequate Good Faith Efforts to do so.
3. Upon review of the bidder’s/proposer’s request for consideration, the Reconsideration Official sends the bidder/proposer a written decision on reconsideration, explaining the basis for finding that the bidder/proposer did or did not meet the goal or make adequate Good Faith Efforts to do so.
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4. Maintains records of conducted hearings.
5. Provides determinations in writing to the DBELO.
F. Prompt Payment Mechanisms (§26.29)
The City has adopted a prompt payment provision on all U.S. DOT-assisted contracts to facilitate timely payment to all subcontractors in accordance with regulatory mandates.
Pursuant to §26.29 “Prompt Payment Provisions” (DBE Final Rule), the City has selected the following method to comply with the prompt payment of retainage requirement:
The City will hold retainage from prime contractors and provide for prompt and regular incremental acceptances of portions of the prime contract, pay retainage to prime contractors based on these acceptances, and require a contract clause obligating the prime contractor to pay all retainage owed to the subcontractor for satisfactory completion of the accepted work within thirty (30) days after payment to the prime contractor.
Any delay or postponement of payment from the above referenced time frames may take place only for good cause and with the City’s prior written approval. Failure to comply with this provision or delay in payment without prior written approval from City will constitute noncompliance, which may result in appropriate administrative sanctions, including, but not limited to a withhold of two percent (2%) of the invoice amount due per month for every month that payment is not made.
G. DBE Financial Institutions (§26.27)
The City shall thoroughly investigate the full extent of services offered by banks and/or financial institutions owned and controlled by socially and economically disadvantaged individuals in the community, to make reasonable efforts to utilize these institutions, as available, and to encourage prime contractors on the City’s U.S. DOT-assisted contracts to make use of these institutions. The City has made efforts to identify these institutions and has provided a list of them on their website and as an Exhibit to the program. The City will re-evaluate the availability of DBE financial institutions every 24 months. Information on the availability of such institutions can be obtained from the DBE Liaison Officer.
H. DBE Directory (§26.31 and §26.81)
The City is a non-certifying member of the California Unified Certification Program (CUCP). 49 CFR §26.81 requires each state’s UCP to maintain a unified DBE directory containing, for all firms certified by the UCP (including those from other states certified under the provisions of this part), the information required by §26.31.
The City utilizes the CUCP online state-wide DBE Directory, which contains the following information for each certified DBE, as applicable:
1. DBE name
2. Contact name
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3. Business address
4. County(ies) of performance
5. Telephone number
6. Fax number
7. Email address
8. NAICS code(s) under which the firm is certified
9. Work category code(s) (optional)
10. Contractor’s license classification
11. Gender
12. Ethnicity
13. Certification status
14. Certifying agency
This directory is made available to the public electronically (on the internet) and in print.
The electronic version is downloadable into a searchable and sortable Excel spreadsheet.
The City refers interested parties to CUCP Database of Certified DBE Firms, and includes DBEs listed in the directory in the City’s outreach efforts. The DBE Directory is published in the California Department of Transportation’s (Caltrans) “Business and Economic Opportunity” website, which can be accessed at https://ucp.dot.ca.gov/licenseForm.htm I. Overconcentration (§26.33)
The City has developed policies and procedures to address overconcentration of DBE utilization in certain types of work. This is accomplished through regular tracking of contract awards and compliance monitoring.
Areas that have been identified to demonstrate over concentration of DBE participation will not be assigned a contract-specific goal and will be procured under race-neutral measures to ensure compliance with regulatory overconcentration provisions. Currently, the City identifies and analyses areas of the City’s contracting work that demonstrate over- concentration on an annual basis.
J. Business Development Programs (§26.35; Appendices C and D) The City has implemented race and gender-neutral efforts to promote small business concerns, including DBEs. The City’s Small Business Element, which was developed to facilitate competition by small business concerns, taking all reasonable steps to eliminate obstacles to their participation that may preclude small business participation in procurements as prime contractors or subcontractors can be found within Section L of this Program.
K. City Written Certification (§26.37)
To further ensure the integrity of the DBE Program’s intent, and in accordance with the City’s DBE Compliance Close-Out Report Process, the City’s DBELO or a designee will
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complete and file, a written certification attesting to having reviewed and monitored contractor DBE documentation, on-site performance when applicable, and payments to DBEs to verify compliance with DBE requirements.
Additionally, as part of the Commercially Useful Function Monitoring procedures conducted by the City, written certification is be provided during the City’s commercially useful function review process that includes an on-site observation, survey and a desk audit to compare on-site observations against submitted DBE reporting.
L. Small Business Participation and Small Business Element (§26.39) The City has established a Small Business Element as a supplement to their existing DBE Program, to facilitate competition by small business concerns, taking all reasonable steps to eliminate obstacles to their participation, including unnecessary and unjustified bundling of contract requirements that may preclude small business participation in procurements as prime contractors or subcontractors in direct response to regulatory requirements, 49 CFR Part 26.39 “Fostering Small Business Participation” (Federal Register/ Vol. 76, No. 19/ Friday, January 28, 2011/ Rules and Regulations).
For purposes of capturing Small Business utilization, the City adheres to the U.S.
Department of Transportation’s Small Business definition for determining what constitutes a Small Business Enterprise. The City accepts Small Business certifications certified through the State of California’s Department of General Services.
This Small Business Element will include, but is not limited to the following assertive strategies:
•The City of Montebello will hold a pre-proposal conference for key procurement releases that will include a networking component to encourage teaming and partnering between primes and Small Businesses as well as providing them access to the City of Montebello’s key procurement individuals. This networking component will provide Small Businesses valuable access and opportunity needed to promote their capabilities and strengthen competitiveness, marketability and participation of Small Businesses firms within the City of Montebello’s contracting program.
Additionally, it will encourage Prime Contractors to partner and communicate with the Small Business community.
•The City will develop a schedule for Key Procurement and Contracting Staff to attend Small Business related conferences and functions to establish the importance placed on fostering Small Business Opportunities in the City of Montebello’s contracting program and provide small businesses valuable access to key procurement individuals, in order to promote their capabilities and strengthen relationships and participation of small businesses firms within the City’s contracting program.
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•The City provides Small Business firms the ability to utilize and review bid/procurement plans at no cost online. The City will inform the procurement community and small business firms that this resource has been made available to them at proposal/bid conferences. The City is confident that providing Small Business firms online access to these crucial plans at no additional cost will aid in leveling the playing field and enable them to submit quality proposals and bids. •The City will actively implement the Small Business element to foster small business participation as a requirement of good faith implementation of the City’s DBE program. The small business element applies to sub-recipients in the same way as the City's DBE Program.
VI. GOALS, GOOD FAITH EFFORTS AND COUNTING
A. Use of Set-asides or Quotas (§26.43)
The City shall not permit the use of quotas for DBEs on U.S. DOT-assisted contracts, in accordance with 49 CFR Part 26.43. Further, the City shall not set aside contracts for DBEs. Overall DBE Goal-Setting Methodology (§26.45)
B. Overall and Contract-Specific DBE Goals
The City will establish an overall DBE goal covering a three-year federal fiscal year period if the City anticipates awarding U.S. DOT/FTA funded prime contracts for a cumulative total value of which exceeds $670,000 during any one or more of the reporting fiscal years within the three-year goal period.
In accordance with Section 26.45(f) the City will submit its overall goal to FTA on August 1 of each three-year goal period. The City’s current goal covers the goal period of Federal Fiscal Years 2025-2027and the City is projected to submit its next overall goal on August 1, 2025, and every August 1, thereafter.
C. Overall DBE Goal-Setting Methodology
A description of the methodology utilized to calculate the overall goal submitted for FFYs 2025-2027 and the goal calculations can be found on the City’s website at:
www.montebelloca.gov
The following delineates the federally prescribed goal-setting methodology (Step 1, Step 2 and Step 3) and other components the City will follow in establishing an Overall DBE goal, as follows:
1. Projecting Federal Assisted Contract Expenditures for Three Fiscal Year Period
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In conjunction with the preparation and adoption of the budget for each fiscal year, the DBELO, in consultation with the appropriate divisions and departments responsible for contracting activities, will conduct a thorough analysis of the projected number, types of work and dollar amounts of contracting opportunities that will be funded, in whole or in part, by U.S. DOT federal financial assistance for the upcoming three year fiscal period.
2. Establishing a Base Figure
Once the City defines its contracting markets for the upcoming three fiscal year period, the City will establish a base figure following one of the methodologies, in accordance with 49 CFR §26.45, as an initial step in the goal-setting process.
The City may determine the relative availability of DBEs accordingly:
i. Utilize the CUCP online DBE Directory to establish the number of certified DBEs located within the City’s market area, in each NAICS code/category representing a contract scope of work;
ii. Utilize the U.S. Census Bureau’s County Business Patterns (CBP) data to establish the number of all businesses (DBEs and non-DBEs) located within the City’s market area, in each NAICS code/category representing a contract scope of work;
iii. Determine the ratio of DBEs to all business located within the City’s market area, in each NAICS code/category representing a contract scope of work; iv. Apply a weighting factor each resulting ratio, based on the percentage of federal funds the City is projected to award and/or expend on various industries; and/or
v. Utilize a Bidders List.
3. Adjusting the Base Figure
As a mandatory second step, the City will consider, as a basis for adjusting the overall DBE base figure, additional factors/indicators determined to be relevant to DBE availability. These factors may include, but are not limited to:
A. Demonstrated evidence of DBE capacity to perform work in the City’s program;
B. Real market conditions;
C. Disparity studies conducted within the jurisdiction;
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D. Other recipients’ goal results in similar contracting opportunities and markets, and the reasons for the level of those results;
E. Methods used by the City to increase DBE participation in U.S. DOT-assisted contracts;
F. Demographics and business activity of the geographical area in which the City will solicit bids or proposals;
G. Data from statistical disparities of DBEs to obtain financing, bonding and/or insurance;
H. Data on employment, self-employment, education and training programs, to the extent that the City can relate it to opportunities for DBEs to perform on federally assisted contracts; and
I. Input from public participation.
D. Public Participation (§26.45)
1. Consultation with Community Groups and Constituents
In accordance with Public Participation Regulatory Requirements of Title 49 CFR Part 26, minority, women, local business chambers, and community organizations within the City of Montebello’s local market area will be provided an opportunity to review the goal methodology of the proposed DBE goal and its availability for review.
Prior to the adoption of the Overall DBE Goal, the City of Montebello will issue a public notice on its website www.montebelloca.gov informing the public of the proposed DBE goal and its rationale, ensuring the information is available for 20- day inspection. The City will offer various engagement channels, such as online surveys where stakeholders can provide their feedback on the proposed goal.
In accordance with the April 2024 Final Rule and current FTA guidance, the City is not required to conduct 30-day public notice when developing its overall triennial DBE goal.
However, the City may consult with local small business organizations, chamber of commerce, and certified DBEs to enhance transparency and ensure equitable access to contracting opportunities.
2. Advertising Proposed Overall DBE Goals
Pursuant to new DBE Program regulations effective April 9, 2024, the City understands that commercial advertising of the overall DBE goal is now at the City’s discretion. The City will post a public notice to the City’s website announcing the
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City’s proposed Overall Goal. Advertisements of the proposed triennial goal, will be titled “Public Notice” and shall include the following:
i.Proposed triennial goal percentage for DBE participation ii.A statement that the proposed goal and methodology are available for public inspection for a period of 30 days from the date of publication. iii.A statement that the City will accept public comments on the proposed goal and methodology for a period of 30 days from the date of publication. iv.Contact information and instructions for viewing the City’s proposed goal/methodology and/or submitting a public comment.
Upon receipt of any public comments, the City’s DBELO will analyze the comments, summarize the results, and modify the overall goal, if appropriate. This will occur prior to final adoption of the triennial goal and submission to FTA for review.
E. Annual Review and Remedy Reports (49 CFR §26.47)
Pursuant to 49 CFR §26.47(c), the City is required to analyze, on a semi-annual basis, the DBE awards and commitments reported to the FTA. If the City’s DBE awards/commitments are less than the City’s overall DBE goal for that Federal Fiscal Year (FFY), the City is required to develop a written analysis of the shortfall, as well as establish specific steps and milestones to correct the problems identified in the analysis.
As the City is not currently listed as one of the largest 50 transit agencies in the U.S. (based on level of U.S. DOT/FTA assistance), the City will not submit their written analysis to their FTA Civil Rights Regional Office but will keep it on file and ready for review within 90 day of the FFY end, or by the end of the calendar year.
A. Race Neutral Measure to Address DBE Goal Shortfall
The City has not met the previous Overall DBE Goal for 2021-2024. Therefore, MBL will implement the following procedures to address the DBE shortfall. The City plans to place emphasis on the DBE program in future bidding processes and anticipates that the following race-neutral measures will increase DBE participation to help the City meet its DBE goal:
1.Increase staff to coordinate and facilitate DBE participation through the procurement process.
2.All procurement solicitations (Request for Proposal, Request for Quote, etc.) will include DBE participation forms and language.
3.The procurement team will continue to research and contact known DBE vendors to bring awareness of potential bid opportunities.
4.Monitor contracts quarterly to assess the impact of race-neutral measures and identify potential shortfalls.
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5.Conduct more outreach to DBE vendors to increase DBE participation.
6.The City will consult with minority groups and organizations to directly solicit input on DBE opportunities and any real and/or perceived barriers to DBE participation
F. Transit Vehicle Manufacturers (§26.49)
Under the U.S. DOT DBE regulations, a transit vehicle manufacturer (TVM) means any manufacturer whose primary business purpose is to build vehicles specifically for public mass transportation. Such vehicles include, but are not limited to, buses, rail cars, trolleys, ferries and vehicles manufactured specifically for paratransit purposes. The definition includes producers of vehicles that receive post-production alterations or retrofitting to be used for public transportation purposes. Businesses that manufacture vehicles solely for personal use and for sale "off the lot" are not considered transit vehicle manufacturers.
Further, to the extent that a vehicle remanufacturer is responding to a solicitation for new or remanufactured vehicles with a vehicle to which it has provided post-production alterations or retrofitting (e.g., replacing major components such as an engine to provide a "like new" vehicle), the vehicle remanufacturer is considered a transit vehicle manufacturer.
The City shall require all TVMs to certify that they have complied with 49 CFR §26.49 and have established an overall DBE participation goal that has been approved (or not disapproved) by the FTA before they can bid on any City transit vehicle procurement.
Only those transit vehicle manufacturers listed on FTA's eligible TVMs list, or that have submitted a goal methodology to FTA that has been approved or has not been disapproved, at the time of solicitation are eligible to bid.
The City will also utilize the FTA's online TVMs list, accessible at:
https://www.transit.dot.gov/regulations-and-guidance/civil-rights-ada/eligible-transit- vehicle-manufacturers, to verify that the TVM is authorized to bid or propose on U.S.
DOT-assisted transit vehicle procurements.
Expenditures for U.S. DOT-assisted transit vehicle procurements are not included in the funding base used to calculate the City’s Overall goal or reported on Semi-Annual Uniform Reports. If non-TVM vehicles are purchased, DBE TVMs are not available, contracts will be included in the City’s Overall DBE goal Methodology and Semi-Annual Uniform Reporting.
G. Methods for Meeting Goals (§26.51)
The City will endeavor to meet its overall DBE goal and increase DBE participation on the City's U.S. DOT-assisted contracts, by utilizing race-neutral DBE Program elements.
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1. Race and Gender-Neutral Measures
The City intends to use race and gender-neutral methods to the maximum extent feasible to achieve its overall DBE goal. DBE participation that is obtained on contracts that have no established DBE contract goal, or where prime contractors use a strictly competitive bidding process and do not consider the DBE’s status as a factor in awarding a subcontract shall be considered race and gender-neutral DBE participation.
In addition, the City will use the following measures as appropriate:
i. Identify components of the work which represent subcontracting opportunities and identify the availability of DBE subcontractors to participate in proportion to total available subcontractors. Contractors will be encouraged to consider subcontractors for components of the work for which there is a known supply of ready, willing, and able subcontractors, including DBE subcontractors, in preparing their bids;
ii. Provide technical assistance to DBEs, in areas relevant to public contracting success; provide referrals to small/minority business assistance organizations. iii. Facilitate the distribution of the CUCP DBE Directory to the widest feasible universe of potential prime contractors.
iv. Assist DBEs in overcoming limitations in bonding and financing. v. Include small and disadvantaged businesses in the City’s outreach, public information, and communications programs, to ensure that DBEs are made aware of the City’s contracting opportunities.
vi. Provide business development assistance to DBEs, to facilitate business growth and success beyond participation in the City’s DBE Program. vii. Increase staff to coordinate and facilitate DBE participation through the procurement process.
viii.All procurement solicitations (Request for Proposal, Request for Quote, etc.) will include DBE participation forms and language.
ix. The procurement team will continue to research and contact known DBE vendors to bring awareness of potential bid opportunities. x. Monitor contracts quarterly to assess the impact of race-neutral measures and identify potential shortfalls.
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xi. Conduct more outreach to DBE vendors to increase DBE participation. xii. The City will consult with minority groups and organizations to directly solicit input on DBE opportunities and any real and/or perceived barriers to DBE participation.
H. Contract-Specific Goals (§26.51)
To strengthen the City’s Disadvantaged Business Enterprise (DBE) program and ensure compliance with U.S. Department of Transportation (U.S. DOT) regulations, the City will implement robust data collection and monitoring practices designed to improve transparency, enhance goal-setting accuracy, and support program accountability.
These procedures will provide the City with meaningful insights into subcontracting activities and the characteristics of firms engaged in, or seeking to engage in, City- assisted contracts.
As part of the procurement process for all U.S. DOT-assisted contracts, the City will include a contract clause requiring prime bidders to report detailed information regarding all subcontractors that submit quotes, regardless of whether they are ultimately selected.
This clause will require prime bidders to provide at a minimum:
•The full legal name of each subcontractor that submitted a quote. •The business address of the subcontractor.
•The type of work quoted or the nature of the service offered. •The estimated dollar amount of the quote.
•Whether or not the firm is a certified DBE.
This data collection effort will provide the City with critical insights into the bidding process, help identify barriers to DBE participation and allow for a more comprehensive understanding of the competitive landscape for subcontracting opportunities. This information will also support analysis of whether DBEs are being fairly considered during the procurement process.
In addition to subcontractor quote reporting, the City will conduct a recipient-directed survey aimed at gathering demographic and business profile information from a statistically valid sample of firms listed in the City’s business directory or those known to participate in public contracting opportunities. The survey will collect key data points such as:
•The age of the business (years in operation);
•Business size, including number of employees and annual revenue; •Ownership structure (e.g., minority-owned, woman-owned, veteran-owned); •Certification status (including DBE, Small Business Enterprise (SBE), etc.); •Geographic location and service area;
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•Types of goods and services offered.
The survey will be designed and administered in a manner that ensures statistical reliability and compliance with privacy standards. The data collected will be used to:
•Assist in establishing the availability of DBEs in the relevant market area. •Inform the setting of future overall and contract-specific DBE goals. •Assess market conditions and identify any disparities in participation. •Support program evaluation, reporting, and continuous improvement initiatives.
Together, these measures will help the City maintain a fair, open, and competitive contracting environment while ensuring that the DBE program is implemented in a data- driven and equitable manner. They also demonstrate the City’s commitment to increasing access and opportunity for small and disadvantaged businesses.
If warranted via disparity study or other relevant data, the City may establish a DBE contract goal that is higher or lower than its overall goal, depending on such factors as the type of work involved, the location of the work, and the availability of DBEs for the work of the particular contract. The City’s contract goals may provide for participation by all certified DBEs and may not be subdivided into group-specific goals.
I. Design-Build Contracts (Federal Register / Vol. 68, No. 1151) The City recognizes that certain modifications are necessary to adapt the DBE Program for use in connection with Design-Build projects and will therefore follow the prescribed regulatory U.S. DOT requirements and subsequent guidance.
J. Evaluation and Award of Contracts with DBE Goals (§26.53(a)) In cases where a contract goal has been established, the contract in question will only be awarded to a bidder/proposer that has made good faith efforts to meet the contract goal. The City shall award contracts to the lowest responsive and responsible bidder/proposer as required by California Public Contract Code, where applicable.
However, for such contracts, as well as for contracts awarded pursuant to a competitive negotiation procedure, a prime bidder/proposer that 1) fails to demonstrate its commitment to meet the established DBE contract goal by listing sufficient DBEs on its “DBE Participation Commitment” form due with the bid/proposal or within 48 hours after bids/proposals are due and/or 2) fails to demonstrate that it made an adequate Good Faith Effort to meet the goal, shall be deemed “non-responsive” and shall be ineligible for contract award.
1. Evaluation of Bids and Proposals
After the bid opening or proposal due date, the DBELO shall evaluate all bids/proposals to determine whether the bidders/proposers submitted all
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information required by 49 CFR §26.53(b). On contracts with established DBE contract goals, the lowest successful bidder or highest ranked proposer who demonstrates its commitment to meet the DBE contract goal or demonstrates an adequate Good Faith Effort (GFE) shall be recommended for contract award. In the event that the lowest bidder or highest ranked proposer fails to either meet the contract goal or demonstrate an adequate GFE, or is otherwise unresponsive or not responsible, the DBELO shall evaluate the second lowest bidder or second highest ranked proposer. Should the DBELO determine that additional information is needed to evaluate a bid or proposal with regard to DBE requirements, the DBELO shall request the bidder/proposer to submit the required information or may contact the listed DBE(s) directly.
2. Evaluation of DBE Certification Status and DBE Eligibility The DBELO shall require that all DBEs listed by bidders/proposers for participation in contracts with goals, be certified as such before bids/proposals are due, in order for the DBE participation to be counted towards meeting the DBE contract goal.
The City accepts DBE certifications from all certifying members of the California UCP, and any other U.S. DOT recipients, which certify DBEs in accordance with 49 CFR Part 26. It is the bidder’s/proposer’s responsibility to verify certification status of all proposed DBEs, prior to listing them on the “DBE Participation Commitment” form which is due with the bid or proposal.
When evaluating DBE certification status, the City ensures that the DBE: 1) is certified before bids/proposals are due (§26.81(c)) and 2) is certified in the NAICS code that represents the scope of work to be performed by the DBE on the contract (§26.71).
After award of the contract, it is the prime contractor’s responsibility to monitor the DBE certification expiration dates of its DBEs, and to ensure that credit for DBE participation is only granted to DBEs with current DBE certification status.
K. Meeting Established Goals or Demonstrating Good Faith Efforts (§26.53) If a bidder’s/proposer’s value of DBE participation does not meet the established DBE contract goal, the DBELO shall review the bidder’s/proposer’s Good Faith Effort (GFE) documentation to determine responsiveness and shall determine whether the bidder/proposer has performed the quality, quantity, and intensity of efforts that demonstrates a reasonably active and aggressive attempt to meet the DBE contract goal.
The following sections outline the requirements of firms competing for City contracts to comply with either meeting the DBE contract goal by committing to utilizing sufficient DBEs or by documenting an adequate GFE. Failure for a bidder/proposer to meet a DBE goal or demonstrate that an adequate GFE was made, will deem the bid/proposal non- responsive.
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1. Meeting Established Goals
For each solicitation on which a DBE contract goal has been established, the City shall require bidders/proposers to submit the following information to the City at the time of bid/proposal submission.
i. Written and signed documentation of the bidder’s/proposer’s commitment to utilize DBEs, to be submitted on the City’s “DBE Participation Commitment” form. Information listed on the form shall include:
a. Name, address and contact information for each DBE listed on the contract;
b. Description of the work that each DBE will perform;
c. Dollar amount of participation of each DBE;
d. Percentage of total contract value allocated to each DBE; e. Prime bidder’s/proposer’s name, title and contact information; f. The City’s contract number;
g. Total dollar amount of participation of all DBEs;
h. Percentage of total contract value allocated to all DBEs; i. DBE commitment percentage;
j. Prime bidder’s/proposer’s signature and date
k. For each listed DBE, proof of valid and current DBE certification in the NAICS code directly applicable to the work the DBE will perform on the contract.
ii. The prime bidder/proposer shall also submit, for each DBE to perform under this contract, a written confirmation signed and dated from each the DBE listed, acknowledging that the DBE is participating in the contract for the it is participating in the contract for a specified dollar value and scope of work listed on the DBE Participation Commitment Form.
2. Demonstrating Good Faith Efforts (§26.53(b)(2)(vi))
If a bidder/proposer does not list sufficient DBEs on its “DBE Participation Commitment” form, to meet the established DBE contract goal, and/or if the City’s evaluation of the “DBE Participation Commitment” form reveals that the bidder/proposer did not meet the established DBE contract goal, the bidder/proposer must demonstrate an adequate Good Faith Effort (GFE) to be deemed responsive to the City’s DBE requirements. The bidder/proposer must demonstrate that it took all necessary and reasonable steps to meet the DBE goal, even if not fully successful.
Bidder/proposer/proposer shall submit the following information to document adequate good faith efforts to the City no later than 4:00 p.m. on the 2 nd business day after the City’s bid/proposal due date, or as otherwise specified in the solicitation but never to exceed 5 days after bid/proposal due date. Bidder/proposer should submit the following information even if the “DBE Participation Commitment Form” indicates that the bidder/proposer has met the DBE goal. This will protect the
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bidder/proposer’s eligibility for award of the contract if City determines that the bidder/proposer failed to meet the goal for various reasons, e.g., a DBE firm was not certified at bid opening/ proposal due date, or the bidder/proposer made a mathematical error.
Submittal of only the form may not provide sufficient documentation to demonstrate that adequate good faith efforts were made.
The following good faith efforts items (A through H) shall be minimally performed prior to bid/proposal submission. Bidder/proposer to complete the following items in sufficient detail to effectively demonstrate that good faith efforts were undertaken to meet the established DBE goal:
i. Items of Work the Bidder/Proposer Made Available to DBE Firms; a description of work items and approximate dollar amounts made available to DBE firms by the bidder/proposer, value of work items as a percentage of total contract work, breakdown of bid/proposal items or larger scopes of contract work (including those items normally performed by the bidder/proposer with its own forces) into economically feasible units to facilitate DBE participation sufficient to meet the DBE contract goal. It is the bidder/proposer’s responsibility to demonstrate that sufficient work was made available to facilitate DBE participation.
ii. Solicitation Effort Documentation; the names and dates of written notices sent to certified DBEs soliciting bids/proposals for this project and the dates and methods used to following up initial solicitations to determine with certainty whether the DBEs were interested (attach all copies of solicitation, telephone records, fax confirmations, email communications, etc.), amount of DBEs to respond, documentation to demonstrate DBE firms were provided information about the contract (location of project, contract number, bid/proposal date, items of work made available and contact information) in the Invitation to Bid/Propose from the bidder/proposer, the bidder/proposer solicited through all reasonable means (e.g. attendance at pre-bid/proposal meetings, advertising and written notices) the interest of all certified DBEs who have the capability to perform the work of the contract, bidder/proposer to provide proof of aforementioned items.(Note: Solicitations should occur at a minimum no later than 14 calendar days prior to the City’s bid/proposal due date and follow up to the solicitations should allow DBE firms reasonable time to respond). DBE firms solicited must be advised if the original bid/proposal due date has been extended.
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iii. Rejected DBE Bid/proposal Documentation; the names, addresses, phone numbers, and amount of rejected DBE firms, the reasons for the bidder/proposer’s rejection of the DBE firms, the firms selected and accepted for that work (attach all copies of quotes from all firms involved inclusive of a detailed cost breakdown if opted to self-perform work) and the price difference for each DBE if the selected firm is not a DBE, include an explanation of quote(s) rejected.
iv. Publication Efforts Made to Advertise the Projects to Solicit DBE Participation; names and dates of each publication in which a request for DBE participation for this project was placed by the bidder/proposer (attach copies of advertisements or proof of publications). Publications should be placed at a minimum 14 calendar days before the City’s bid/proposal due date. If bid/proposal due date is extended, bidder/proposer is to re-advertise new bid/proposal due date.
v. Agencies, Organizations, or Groups Contacted to Provide Assistance in Contracting, Recruiting, and Using DBEs; the names of agencies, organizations or groups contacted to provide assistance in contacting, recruiting and using DBE firms (Attach copies of requests to agencies, responses received, and efforts made by the bidder/proposer in response). vi. Efforts to Provide Information About the Plans, Specifications, and Contract Requirements; efforts made to assist interested DBEs in obtaining necessary materials, or related assistance or services, bidder/proposer to provide evidence of effort.
vii. Assistance with Lines of Credit, Insurance, and/or other Services; efforts made to assist interested DBEs in obtaining bonding, lines of credit or insurance, and any technical assistance or information related to the plans, specifications and requirements for the work which was provided to DBEs, bidder/proposer to provide a list of any assistance provided to DBEs:
viii. Additional Data to Support a Demonstration of Good Faith Efforts; in determining whether a bidder/proposer made adequate good faith efforts, the City will take into account the performance of other bidder/proposers in meeting the DBE contract goal. Attach any additional information to support demonstration of good faith in this section.
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3. Recommendation for Award
Following the determination of the bidder’s/proposer’s responsiveness and responsibility to DBE requirements set forth in the solicitation, the DBELO shall prepare a responsiveness report relative to contract-specific DBE requirements.
4. Bidder/Proposer’s Right to Administrative Reconsideration In the event that the DBELO determines that the apparent successful bidder/proposer has not demonstrated its commitment to meet the DBE contract goal and has not demonstrated an adequate Good Faith Effort, the bidder/proposer will be notified in writing. Please refer to Section V. E of this Program for further details regarding the Administrative Reconsideration process.
L. Counting DBE Participation (§26.55)
The City will count DBE participation toward overall and contract goals as provided in 49 CFR 26.55.
1. DBE "Frauds" and "Fronts"
Only legitimate DBEs are eligible to participate in federally funded contracts.
Therefore, bidders/proposers are cautioned against knowingly and willfully using "fronts" to meet DBE goals. The use of "fronts" and "pass through" subcontracts to non-disadvantaged firms constitute criminal violations. Further, any indication of fraud, waste, abuse, or mismanagement of Federal funds should be immediately reported to the Office of Inspector General (OIG), U.S. Department of Transportation, via the toll-free hotline at 800-424-9071, email at https://www.oig.dot.gov/hotline or U.S. mail at U.S. DOT Inspector General, 1200 New Jersey Avenue SE, West Bldg. 7th Floor, Washington, CA 20590. The hotline is open 24 hours per day, seven days per week. Additional information can be found on www.oig.dot.gov/hotline.
2. Commercially Useful Function (§26.55)
To be considered as performing a commercially useful function, the DBE shall meet all of the following:
i.The DBE is responsible for the execution of a distinct element of work in the Contract;
ii.The DBE carries out its obligation by actually performing, managing, and supervising the work involved;
iii.The DBE performs work that is normal for its business, services, and function; and
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iv.The DBE performs or exercises responsibility for at least 30 percent of the total cost of its Contract with its own work for and is not further subcontracting a portion of the work that is greater than that expected to be subcontracted by normal industry practice.
The following factors shall be used in determining whether a DBE trucking company is performing a commercially useful function:
i. The DBE must be responsible for the management and supervision of the entire trucking operation for which it is responsible on a particular contract, and there cannot be a contrived arrangement for the purpose of meeting DBE goals.
ii. The DBE must itself own and operate at least one fully licensed, insured, and operational truck used on the contract.
iii. The DBE receives credit for the total value of the transportation services it provides on the contract using trucks it owns, insures, and operates using drivers it employs.
iv. The DBE may lease trucks from another DBE firm, including an owner- operator who is certified as a DBE. The DBE who leases trucks from another DBE receives credit for the total value of the transportation services the lessee DBE provides on the contract.
v. The DBE may also lease trucks from a non-DBE firm, including from an owner-operator. The DBE who leases trucks from a non-DBE is entitled to credit for the total value of transportation services provided by non-DBE lessees not to exceed the value of transportation services provided by DBE- owned trucks on the contract. Additional participation by non-DBE lessees receives credit only for the fee or commission it receives as a result of the lease arrangement. If a recipient chooses this approach, it must obtain written consent from the appropriate City Operating Administration.
During the course of the contract containing a DBE commitment, the City or an agent of the City may conduct on-site monitoring interview/observation to ensure that work committed to DBEs is actually being performed by DBEs in the same capacity as the DBE participation being reported. This monitoring effort is fully incorporated into the City’s DBE On-site Compliance field observation process. This observed work will be reconciled against the DBE subcontractor agreement(s) and Prime Contractor Form 103.
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3. DBE Participation Credit
The City requires that all DBEs listed by bidders/proposers for participation in contracts with goals, be certified as eligible DBEs at the time of bid/proposal submission, in order for their participation to be counted towards meeting the established DBE contract goal and/or the City’s overall DBE goal.
In accordance with 49 CFR §26.55 and §26.71, the following guidelines apply in calculating/ counting DBE participation:
i.Only work (represented by NAICS code(s)) for which the firm is certified as a DBE may be counted as DBE participation.
ii.Only the participation of firms certified in accordance with 49 CFR Part 26 may be counted as DBE participation.
iii.Only work performed by a DBE’s own work forces (including cost of supplies, materials and equipment leases obtained by the DBE for the work of the contract, except supplies and equipment the subcontractor purchases and/or leases from the prime contractor or its affiliate), may be counted as DBE participation.
iv.When a DBE subcontracts part of its work of its contract to another firm, the value of the subcontracted work may be counted as DBE participation only if the DBE subcontractor is itself a certified DBE. Work that a DBE subcontracts to a non-DBE firm does not count as DBE participation. A DBE should perform at least thirty percent (30%) of the total cost of its contract with its own workforce.
v.When a DBE performs as a participant in a joint venture with a non-DBE, only the portion of the total contract dollar value equal to the distinct, clearly defined portion of the work to be performed by the DBE’s own forces may be counted as DBE participation.
vi. Only work considered to perform a commercially useful function may be counted as DBE participation.
vii. For transportation services that are required under the contract and provided by a DBE trucking company, DBE participation is counted on the total value of the transportation services the DBE trucking company provides using trucks it owns, insures, and operates and using drivers it employs. viii. For materials and supplies that are required under the contract and obtained from a DBE manufacturer, one hundred percent (100%) of the
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materials/supplies may be counted as DBE participation. For purposes of this section, a manufacturer is a firm that operates or maintains a factory or establishment that produces on the premises the materials and supplies obtained by the contractor.
ix. For materials and supplies that are required under the contract and obtained from a DBE supplier/regular dealer, sixty percent (60%) of the materials/supplies may be counted as DBE participation. For purposes of this section, a supplier/regular dealer is a firm that owns, operates, or maintains a store, warehouse, or other establishment in which the materials or supplies required for performance of the contract are bought, kept in stock, and regularly sold to the public in the usual course of business. x. A bidder/proposer may count as DBE participation, fees and commissions paid to DBE firms that are not manufacturers or regular dealers, provided that the fees or commissions are determined to be reasonable and not excessive, as compared with fees customarily allowed for similar services. xi. A bidder/proposer may count as DBE participation, all transportation services provided by a DBE trucking firm that can demonstrate control of trucking operations for which it seeks credit and it owns, insures, and operates, using drivers it employs in the performance of the contract. The DBE must itself own and operate at least one fully licensed, insured, and operation truck used on the contract. The DBE trucking firm may lease trucks from another DBE firm, including an owner-operator who is certified as a DBE. The DBE receives credit for the total value of the transportation services the lessee DBE provides on the contract. The DBE who leases trucks from a non-DBE is entitled to credit only for the fees or commissions it receives as a result of the lease arrangement.
xii. Prime contractors are advised not to count participation of DBE subcontractors towards DBE attainment until the amount being counted has been paid to the DBE.
xiii. In cases where a DBE’s certification has ceased during the performance period of the contract, although the prime contractor will continue to report to the City, the dollar value of the work performed by the firm, any work performed after the DBE ceases to be certified will not count towards DBE participation credit or the City’s Overall DBE Goal.
VII. DBE CERTIFICATION AND ELIGIBILITY
Certification is the process by which all businesses seeking to participate in the City’s DBE Program are determined to be legitimate DBEs as defined by U.S. DOT at 49 CFR Part 26.61-
26.91, Subpart D and Appendix E, as amended and as defined by SBA at 13 CFR Part 121.
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A. California Unified Certification Program (§26.81)
49 CFR §26.81 requires all public agencies that receive U.S. DOT financial assistance to participate in a statewide Unified Certification Program (UCP). A UCP is a “one-stop shopping” certification program that standardizes DBE eligibility criteria and the application process and eliminates the need for a DBE to certify with multiple agencies within the state.
The City is a non-certifying member of a Unified Certification Program (UCP) administered by the California Unified Certification Program (CUCP). The UCP will meet all of the requirements of this section. The City will use and count for DBE credit only those DBE firms certified by the CUCP.
CUCP agencies are classified as certifying and non-certifying members. CUCP certifying members perform DBE certifications which apply to all U.S. DOT funded contracts.
Certification activities include processing applications, reviewing financial and company ownership information, performing site visit and employee interviews, making certification decisions, investigating certification complaints and appeals, and maintaining a single Statewide directory of certified DBEs. A business certified as a DBE by any CUCP certifying member is automatically accepted by all U.S. DOT recipients in California.
Effective August 1, 2013, the California UCP (including Caltrans) is no longer issuing DBE Certificates as evidence of certification. A copy of a printout from the DBE Database should be sufficient proof of a firm's certification. Prime contractors and awarding agencies should not impose on DBE firms the burden of providing a DBE certificate in their bid packages - it is not required.
A non-certifying member agency adheres to all aspects of the U.S. DOT DBE program, except that it does not perform DBE certification activities. The City is a NON-certifying member of the CUCP; therefore, the City accepts DBE certifications from all CUCP certifying members. The City maintains a copy of the latest CUCP Memorandum of Agreement (MOA) on file, as well as a Declaration of Status Letter signed by the City’s Department Manager and the CUCP Secretary and Chair.
For certification inquiries, contact one of the agencies listed below:
Agency Business Address Telephone No.
City of Los Angeles
Office of Contract Compliance
1149 South Broadway
Street, Room 300
Los Angeles, CA 90015
(213) 847-2684
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Los Angeles County
Metropolitan Transportation City
(METRO)
Diversity and Economic
Opportunity Department
One Gateway Plaza
Los Angeles, CA 90012 (213) 922-2600
S. F. Bay Area Rapid Transit
District (BART)
Office of Civil Rights
300 Lakeside Drive,
18th Floor
Oakland, CA 94612
(510) 464-7580
City of Fresno
DBE Program 2600 Fresno St., Room 2156
Fresno, CA 93721-3622 (559) 621-1163
Santa Clara Valley Transportation
Authority (VTA)
Small & Disadvantaged Businesses
3331 North First Street
San Jose, CA 95134 (408) 321-5962
San Francisco Municipal
Transportation Agency (SFMTA)
Contract Compliance Office
San Francisco Municipal Railway
1 South Van Ness Avenue,
6th Floor
San Francisco, CA 94103
(415) 701-4436
San Mateo County Transit District
(SAMTRANS) / Peninsula Corridor
Joint Powers Board (CALTRAIN)
DBE Office
1250 San Carlos Avenue
San Carlos, CA 94070 (650) 508-7939
California Department of
Transportation (CALTRANS)
Office of Business & Economic
Opportunity
1823 14th Street
Sacramento, CA 95811 (916) 324-1700
B. Scope of Work Covered by Certification (§26.71(n))
Firms must be DBE certified in the scope of work (represented by NAICS code(s)) directly applicable to their performance on a contract. If a firm wishes to participate on a contract under a scope of work for which the firm is not currently certified (i.e., if the firm wishes to add one or more NAICS codes to its certification), the firm must contact its certifying agency and submit all required documentation to demonstrate DBE ownership and control of the specific type(s) of work the firm wishes to add to its DBE certification. The firm shall then submit proof of DBE certification in the applicable scope(s) of work to the City, in order to receive DBE credit for performing that scope of work. For a firm’s DBE
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participation to be counted towards a bidder’s/proposer’s initial DBE commitment, the firm must be DBE certified in the applicable scope of work prior to the bid/proposal due date.
C. Annual Affidavit of Continuing Eligibility
Each certified DBE is required to submit a written affidavit to its certifying agency once annually, on the anniversary date of the firm’s initial certification, to certify that the firm continues to meet DBE eligibility criteria as defined in 49 CFR Part 26. The affidavit must affirm that there have been no changes in the firm’s circumstances affecting its ability to meet DBE eligibility, including size, gross receipts, DBE status, ownership, or control requirements. The affidavit must also affirm that there have been no material changes to the information provided in the original certification application.
If the DBE fails to submit an affidavit, or any required supporting documentation, in a timely manner, it will be deemed to have failed to cooperate with 49 CFR Part 26 and will no longer be considered a certified DBE. It is DBE’s sole responsibility to maintain its certification status with the certifying agency and the City.
D. Notification of Change in Circumstances
If a DBE’s circumstances affecting the firm’s DBE eligibility change at any time after the firm has been identified as a DBE participant on an City contract, the DBE must provide written notification of such change(s) to its certifying agency, the City and the prime contractor, if applicable. Such changes include, but are not limited to, business size, gross receipts, disadvantaged status, ownership, and/or control requirements. The written notification shall be provided by the DBE within thirty (30) days of the occurrence of the change(s). If the DBE fails to make timely notification of such changes, it will be deemed to have failed to cooperate with 49 CFR Part 26.
E. Lapse in Certification Status
If a DBE participant on a City contract ceases to be certified at any time during the life of the contract, any participation by that DBE after the firm ceases to be certified will not count as DBE participation.
F. Decertification Procedures (§26.87)
Pursuant to 49 CFR §26.87, any person may file a written complaint alleging that a currently certified DBE is ineligible to be certified as such and specifying the alleged reasons why the firm is ineligible. Because the City is a NON-certifying member of the CUCP, the Department of Transportation will implement the following procedures upon receipt of a written complaint challenging a firm’s DBE certification status. The City will also protect the confidentiality of complainants' identities as required by 49 CFR §26.09(b).
1.Obtain the name of the CUCP certifying member agency that issued the DBE’s certification;
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2.Provide the complainant(s) with contact information for the CUCP certifying member agency;
3.Provide the complainant(s) with a copy of 49 CFR §26.87, which outlines the DBE eligibility removal process; and
4.Provide a written notification to the DBE in question, stating that the firm’s DBE eligibility has been challenged, and that the complainant has been referred to the DBE’s certifying agency; include a copy of 49 CFR §26.87. If the DBE in question is a current participant in the City’s DBE Program, remind the DBE of its obligation to notify the City of any change in the DBE’s certification status within 30 days of the change.
G. Certification Denials and Appeals (§26.89)
Firms that have applied for and were denied DBE certification under one or more NAICS codes, and/or firms whose certification has been removed by a CUCP certifying member agency, may file an administrative appeal with the U.S. DOT within 45 days from the date of denial, in accordance with 49 CFR §26.89. Certification decisions are NOT appealable to the City.
To file a DBE certification appeal, firms should send a letter to the U.S. DOT Office of Civil Rights. The appeal should, at a minimum, include information and arguments concerning why the recipient's decision should be reversed, a copy of the denial letter, and any additional information the denied firm believes to be pertinent to the appeal. Firms must provide the name(s) and address(es) of any U.S. DOT recipient the firm is currently certified with or who has rejected its application for certification or removed the firm's eligibility within one year prior to the date of the appeal. This includes applications currently pending certification action.
All appeals should be submitted to the U.S. Department of Transportation, Office of Civil Rights, External Policy & Programs Division, 400 7 th Street SW – Room 5414, Washington, DC 20590, Phone: (202) 366-4754, TTY: (202) 366-9696, Fax: (202) 366- 5575.
VIII. COMPLIANCE AND ENFORCEMENT OVERSIGHT
A. Information, Confidentiality, Cooperation, Intimidation or Retaliation (§ 26.109) The City will comply with the requirements of §26.109, as applicable.
B. Monitoring Payments to DBEs (§ 26.37)
The City requires prime contractors to maintain records and documents of payments to DBEs for three years following the performance of the contract. These records will be made available for inspection upon request by any authorized representative of the City or U.S.
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DOT. This reporting requirement also extends to any certified DBE subcontractor. The use of joint checks will not be allowed without prior written Authorization from the City.
The City will perform monthly audits of contract payments to DBEs. The audit will review payments to DBE subcontractors to ensure that the actual amount paid to DBE subcontractors equals or exceeds the dollar amounts committed in the “DBE Participation Commitment” form or DBE subcontract.
Additionally, the City’s DBE Program will include a monitoring and enforcement mechanism to ensure that work committed to DBEs at contract award is actually performed by DBEs.
Such mechanism will provide a running tally of actual DBE attainments (e.g., payments actually made to DBE firms), including a means of comparing these attainments to commitments. The City will display both DBE commitments and attainments in its reports of DBE participation to the U.S. DOT.
C. Compliance Monitoring (§26.37)
The City shall implement appropriate mechanisms to ensure prime and subcontractor compliance with DBE Program requirements as stated in 49 CFR Part 26, including but not limited to the following activities:
1.Once a DBE begins work, obtain proof of each DBE’s participation on the contract, by collecting a copy of a signed subcontractor agreement between the prime contractor/consultant and the DBE;
2.Collecting/reviewing monthly DBE utilization reports;
3.Verifying payments made to DBEs;
4.Tracking DBE participation throughout the life of the contract;
5.Conducting site visits, field observations and construction worker interviews on applicable contracts;
6.Imposing administrative sanctions for contractor’s willful contractor non-compliance with DBE Program requirements;
7.Recording and reporting final DBE participation at contract close-out; and
8.Measuring achieved DBE participation in comparison to committed participation.
In addition, at contract close-out, the City will certify that it has monitored the contract to ensure compliance with DBE Program regulations and requirements.
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D. Submission of DBE Information and Ongoing Reporting Requirements (Post- Award)
If there is a DBE goal and/or DBE commitment on the Agreement, Contractor/Consultant must complete and submit within the specified timelines the following DBE documentation, electronically through the City’s reporting system consistent with Contractor/Consultant’s DBE goal commitment:
i. “Monthly DBE Subcontractor Commitment and Attainment Report Summary and Payment Verification”
The purpose of this form is to ensure Contractor/Consultant DBE commitments are attained, properly reported, and credited in accordance with DBE crediting provisions based on the capacity the DBE performs the scope of work/service. This form further serves to collect DBE utilization data required under 49 CFR, Part 26.
Contractor/Consultant is required to complete and submit this Form to the City by the 15th of each month until completion of the Agreement. Contractor/Consultant must submit this report following the first month of Agreement activity. Even if no DBE participation will be reported within a period, the Contractor/Consultant must execute and return the form.
The report must include the following information:
1. General Agreement Information – Including Agreement Number and Title, Contractor/Consultant Name and the following:
a) Original Agreement Amount
b) Running Total of Change Order Amount
c) Current Agreement Amount
d) Amount Paid to Contractor/Consultant during Month
e) Amount Paid to Contractor/Consultant from Inception to Date f) DBE Contract Goal
g) Total Dollar Amount of DBE Commitment
h) DBE Commitment as Percentage of Current Agreement Amount
2. Listed and Proposed Contractor/Consultant/Subcontractor Information – For All DBE participation being claimed either race-neutrally or race-consciously, regardless of tier:
a) DBE Firm Name, Address, Phone Number, DBE Capacity Type,
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Certification Type and Certification Number.
b) DBE Firm Contract Value Information:
c) Original Contract Amount, running total of change order amount, Current Contract Amount, Amount Paid to Contractor/Consultant or Subcontractor(s)/Subcontractor(s) During Month and Amount Paid to Contractor/Consultant or Subcontractor(s) to date.
Contractor/Consultant is advised not to report the participation of DBE(s) toward the Contractor/Consultant’s DBE attainment until the amount being claimed has been paid to the DBE.
ii. Contractor/Consultant Assurance of Full Compliance with Prompt Payment Provisions
By submitting prompt payment data through the system, the vendor is providing assurance that timely payments have been issued to all subcontractors in accordance with regulatory mandates and as required by 49 CFR Part 26.29. iii. Contractor/Consultant Payment Verification Summary Contractor/Consultant is to further maintain and submit a Verification of Payment Summary inclusive of a detailed running tally of related invoices submitted by DBE(s) and non-DBE(s), including dates of invoice submission, dates accepted and corresponding dates and amount of payments made. The Verification of Payment Summary must also include:
DBE(s) and non-DBE(s) invoice number, invoice amount, invoice date, Contractor/Consultant’s invoice number that incorporated the corresponding DBE and non-DBE invoice(s) for billing purposes, date of invoice submission to the City, date and amount the City paid on Contractor/Consultant’s Invoice. The report must reflect a breakout of retention withheld (including retention as specified in subcontract agreement(s) and disputed invoice retention) and retention payments made, check number and date paid to DBEs and non-DBEs.
Contractor/Consultant’s Verification of Payment Summary will be sent to the applicable subcontractor/subconsultant for validation and confirmation. iv. Monthly DBE Trucking Verification Form
Prior to the 15th of each month, Contractor/Consultant must submit documentation on the "Monthly DBE Trucking Verification," Form to the City showing the amount
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paid to DBE trucking companies. Contractor/Consultant must also obtain and submit documentation to the City showing the amount paid by DBE trucking companies to all firms, including owner-operators, for the leasing of trucks. If the DBE leases trucks from a non-DBE, Contractor/Consultant may count only the fee or commission the DBE receives as a result of the lease arrangement.
The Contractor/Consultant must also obtain and submit documentation to the City showing the truck number, owner's name, California Highway Patrol CA number, and if applicable, the DBE certification number of the owner of the truck for all trucks used during that month.
v. DBE Subcontract Agreements
Contractor/Consultant must submit to the City copies of executed subcontracts and/or purchase orders (PO) for all DBE firms participating on the contract within ten (10) working days of the award. Contractor/Consultant must immediately notify the City in writing of any problems it may have in obtaining the subcontract agreements from listed DBE firms within the specified time. vi. Semi-Annual Subcontractor/Subconsultant Paid Report Summary The City will require Contractor/Consultant (inclusive of DBE primes) to report payment data to lower tiers on a semi-annual basis each year, using the “Semi- Annual Subcontractor Paid Report Summary.” These reports will capture payments to Contractor/Consultant and payments to non-DBEs within the respective reporting period. Reported payments to lower tiers must include a signed payment verification form.
Contractor/Consultant will adhere to the following submittal schedule:
•April 15th Report, reporting period: October 1st through March 31st •October 15th Report, reporting period: April 1st through September 30th vii. Final Report-Utilization of Disadvantaged Business Enterprises (DBE) Upon completion of the project, Contractor/Consultant must complete and submit a "Final Report-Utilization of Disadvantaged Business Enterprises (DBE) Subcontractors," certified correct by Contractor/Consultant or Contractor/Consultant's authorized representative, to facilitate reporting and capturing DBE attainments at conclusion of the project. The form must be furnished to the City within thirty (30) days from the date of project acceptance. The amount
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of ten thousand dollars ($10,000) will be withheld from payment until a satisfactory form is submitted.
viii. Disadvantaged Business (DBE) Certification Status Change If a DBE subcontractor is decertified during the life of the project, the decertified subcontractor must notify Contractor/Consultant in writing with the date of decertification. If a subcontractor becomes a certified DBE during the life of the project, the subcontractor must notify Contractor/Consultant in writing with the date of certification (Attach DBE certification/decertification letter).
Contractor/Consultant must furnish the written documentation to the City within ten (10) days of receipt. Upon completion of the project, the "Disadvantaged Business Enterprises (DBE) Certification Status Change," must be signed and certified correct by Contractor/Consultant indicating the DBEs existing certification status. If there are no changes, indicate “No Changes.” The signed and certified form must be furnished to the City within thirty (30) days from the date of project acceptance.
Failure to submit any of the required submittals above and their support documentation within the specified timeline shall result in a penalty of ten dollars ($10) per day, per submittal document.
The City requires Contractor/Consultant to maintain records and documents of payments to lower tiers, including DBEs, for a period of four (4) years from the date of final payment by the City, unless otherwise provided by applicable record retention requirements for Contractor/Consultant’s agreement, whichever is longer.
These records will be made available for inspection upon request by any authorized representative of the City. This reporting requirement extends to all lower-tiers, both DBE and non-DBE.
The City reserves the right, at its sole discretion, to demonstrate responsiveness to the requirements of CFR 49 Part 26.37 by implementing the following method(s):
a) Posting contractor payment data to a website, database, or other place accessible to subcontractors to assist them in determining when they should expect to receive payment.
b) Requiring Contractor/Consultant to use an automated reporting system, inclusive of, but not limited to, real time entry of payments made and received by Contractor/Consultant and their lower tiers.
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E. DBE Participation Change Requests (§26.53 (f) and (g))
1. DBE Additions
In the event Contractor/Consultant identifies additional DBE Subcontractor/subconsultants or suppliers not previously identified by Contractor/Consultant for DBE participation under the Agreement, Contractor/Consultant must notify the City by submitting a “Request for Additional DBE Firm,” to enable the City to verify the firm's eligibility, capacity, CUF and ensure there is not a scope conflict with another listed firm. Proposed firms cannot be applied towards Contractor/Consultant 's DBE participation until approved by the City.
Contractor/Consultant must also submit, for each DBE identified after contract execution, a written confirmation from the DBE acknowledging that it is participating in the contract for a specified value, including the corresponding scope of work (a subcontract agreement can serve in lieu of the written confirmation).
2. DBE Substitution, Termination and On-going Good Faith Efforts The City requires that Contractor/Consultant not terminate a DBE without the City’s prior written consent. This includes, but is not limited to, instances in which Contractor/Consultant seeks to perform work originally designated for a DBE with its own work force or those of an affiliate, a non-DBE firm, or with another DBE firm.
The City will provide such written consent only if it agrees, for reasons stated in the concurrence document, that Contractor/Consultant has good cause to terminate the DBE firm. For purposes of this section, good cause includes the following circumstances:
i. The listed DBE subcontractor/subconsultant fails or refuses to execute a written contract;
ii. The listed DBE subcontractor/subconsultant fails or refuses to perform the work of its subcontract in a way consistent with normal industry standards.
Provided, however, that good cause does not exist if the failure or refusal of the DBE subcontractor/subconsultant to perform its work on the subcontract results from the bad faith or discriminatory action of Contractor/Consultant; iii. The listed DBE subcontractor/subconsultant fails or refuses to meet Contractor/Consultant’s reasonable, nondiscriminatory bond requirements; iv. The listed DBE subcontractor/subconsultant becomes bankrupt, insolvent, or exhibits credit unworthiness;
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v. The listed DBE subcontractor/subconsultant is ineligible to work on public works projects because of suspension and debarment proceedings pursuant 2 CFR Parts 180, 215 and 1,200 or applicable state law; vi. Contractor/Consultant has determined that the listed DBE subcontractor/subconsultant is not a responsible contractor; vii. The listed DBE subcontractor/subconsultant voluntarily withdraws from the project and provides to you written notice of its withdrawal; viii. The listed DBE is ineligible to receive DBE credit for the type of work required; ix. A DBE owner dies or becomes disabled with the result that the listed DBE contractor is unable to complete its work on the contract; x. Other documented good cause that you determine compels the termination of the DBE. Provided, that good cause does not exist if Contractor/Consultant seeks to terminate a DBE it relied upon to obtain the Agreement so that Contractor/Consultant can self-perform the work for which the DBE contractor was engaged or so that Contractor/Consultant can substitute another DBE or non-DBE contractor after contract award.
Before transmitting to the City its request to terminate and/or substitute a DBE subcontractor/subconsultant, Contractor/Consultant must give notice in writing to the DBE, with a copy to the City, of its intent to request to terminate and/or substitute, and the reason for the request.
Contractor/Consultant must give the DBE five (5) days to respond to Contractor/Consultant’s notice and advise the City and Contractor/Consultant of the reasons, if any, why it objects to the proposed termination of its subcontract or purchase order and why the City should not approve Contractor/Consultant’s action. If required in a particular case as a matter of public necessity (e.g. safety), Contractor/Consultant may provide a response period shorter than five (5) days.
In the event of an approved DBE substitution, termination, or failure of a DBE to complete its work on the contract for any reason, the DBE must be substituted with another DBE or adequate good faith efforts must be documented by Contractor/Consultant within five (5) days, to the extent needed to meet the contract- specific DBE goal. Note: The five (5) day period may be extended for an additional five (5) days if necessary, at the request of the Contractor/Consultant.
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The substitute DBE must be certified as a DBE at the time of request for substitution.
Contractor/Consultant shall not be entitled to any payment for work or materials unless it is performed or supplied by the listed DBE, unless the DBE is terminated in accordance with this section and is approved by the City.
Should Contractor/Consultant elect to submit good faith effort documentation in lieu of proposing additional DBE participation, the City will review the documentation and provide a written determination to Contractor/Consultant stating whether or not good faith efforts have been adequately demonstrated.
The substitute DBE cannot work on the Agreement until its work eligibility has been confirmed and required subcontracts, supplies, trucking commitments, or other services have been approved by the City.
F. Dispute Resolution
All contracts U.S. DOT-assisted contracts shall contain provisions or conditions which will allow for dispute resolution remedies in instances where contractors/ consultants violate or breach DBE Program requirements, inclusive but not limited to, prompt payment and provide for such sanctions and penalties as may be appropriate.
Contractors/Consultants shall incorporate this Section into each subcontract related to work arising under a U.S. DOT-assisted agreement and shall not incorporate by reference.
Contractor/Consultant and subcontractor/subconsultant agree to notify the City within five (5) business days of any prompt payment and/or DBE Program disputes which cannot be settled by discussions between the parties involved.
Contractor/Consultant and subcontractor/subconsultant further agree to proceed through informal meetings, mediation, or any combination thereof as further detailed below.
Dispute submittals shall include the method(s) of dispute resolution selected, terms, timeframes, and a detailed summary of assistance being requested (as applicable). i. Informal Meetings:
The City is available to assist Contractor/Consultant with coordination of informal meeting requests to assist in the resolution of disputes between Contractor/Consultant and subcontractor/subconsultant. The City’s DBELO or a designated DBE support representative, will conduct informal meetings with parties in dispute. Representatives from Contractor/Consultant and subcontractor/subconsultant for the purpose of dispute resolution must include individuals authorized to bind each interested party. All parties must agree to the procedure.
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ii. Mediation
The parties to a contract may agree to endeavor to settle a dispute through informal mediation under independent third-party organizations. The City’s DBELO and its designated support staff is considered an independent third party. Submission to informal mediation is voluntary; it is not binding and offers advisory opinions.
Performance During Dispute: Unless otherwise directed by the City, Contractor/Consultant and its sub tiers shall continue performance under the Agreement while matters in dispute are being resolved.
Flow Down Requirements: The dispute resolution provisions flow down to all tiers.
These provisions shall not apply to disputes between Contractor/Consultant and the City. These provisions do not alter in any way or waive compliance with other provisions in the Agreement.
G. Administrative Sanctions for Non-Compliance
Contractor/Consultant must fully comply with the DBE Agreement requirements, including the City’s DBE Program and Title 49 CFR Part 26 “Participation by Disadvantaged Business Enterprises in Department of Transportation Financial Assistance Programs,” and ensure that all subcontractors, regardless of tier, are also fully compliant. Failure by Contractor/Consultant to carry out these requirements is a material breach of this Agreement, which may result in the termination of this Agreement, or such other remedy as the City deems appropriate, which may include, but is not limited to:
1. Withholding monthly progress payments;
2. Assessing sanctions;
3. Liquidated damages; and/or
4. Disqualifying Contractor/Consultant from future bidding as non-responsible.
In instances of identified non-compliance, a Cure Notice will be issued to Contractor/ Consultant identifying the DBE non-compliance matter(s) and specifying the required course of action for remedy.
Contractor/Consultant must be given ten (10) working days from the date of the Cure Notice to remedy or to: (1) File a written appeal accompanied with supporting documentation; and/or (2) Request a hearing with the City to reconsider the City’s DBE determination.
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Failure to respond within the ten (10) working day period will constitute a waiver of Contractor/Consultant's right to appeal. If Contractor/Consultant files an appeal, the City, must issue a written determination and/or set a hearing date within ten (10) working days of receipt of the written appeal, as applicable. A final Determination will be issued within ten (10) working days after the hearing, as applicable.
If after review of Contractor/Consultant's appeal, the City decides to uphold the decision to impose DBE administrative remedies on Contractor/Consultant, the written determination must state the specific remedy(ies) to be imposed.
Failure to comply with the Cure Notice and/or to remedy the identified DBE non- compliance matter(s) is a material breach of the Agreement and is subject to administrative remedies including withholding at a minimum of two percent (2%) of the invoice amount due per month for every month that the identified non-compliance matter(s) is not remedied. Upon satisfactory compliance, the City will release all withholdings.
In addition to the administrative remedies defined in this section, the City is not precluded from invoking other contractual and/or legal remedies available under federal, state or local laws.
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ATTACHMENT A
City of Montebello
DBE Organizational Chart
City Manager
DBE Liaison
Officer
DBE Support
Staff
DBE
Reconsideration
Officer
ITEM # 29
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: John Soria, Director
SUBJECT: AWARD AGREEMENT NO. 4280 TO PALADIN TECHNOLOGIES FOR
THE PURCHASE AND INSTALLATION OF A SECURITY AND
SURVEILLANCE CAMERA SYSTEM FOR THE TRANSPORTATION
DEPARTMENT
DATE: May 14, 2025
RECOMMENDATIONS:
It is recommended that the City Council:
1. Award Agreement No. 4280 with Paladin Technologies (Paladin), for a one-year (1-year) term, to purchase and install a security and surveillance camera system for the Transportation Department, for a total not-to-exceed amount of $545,850; and
2. Amend the Fiscal Year 2024-25 adopted operating budget to increase appropriations by $136,472 in Account No. 600-90-915-6040.95 (Transit, Administration, Corporate Shop, Contract Services - Other Professional Services); and
3. Authorize the City Manager to approve change orders up to an additional ten percent (10%) or $54,585 of the total agreement amount; and
4. Take such additional, related, action that may be desirable.
FISCAL IMPACT:
Funding for the project has been allocated from Senate Bill 1 (SB1) / State Transit Assistance (STA) 2019-2020 funds (Account No. 202-922-2019-6040.75, SB1-Sate of Good Repairs, STA, Contract Services - Other Professional Services) in the amount of $463,963. The remaining balance of $136,472 will be allocated through an amendment to the Fiscal Year 2024-25 adopted operating budget, Account No. 600-90-915-6040.95 (Transit, Administration, Corporate Shop, Contract Services - Other Professional
CITY COUNCIL AGENDA REPORT - MEETING OF MAY 14, 2025
Services). The total cost will be split across the identified funding sources for a total not- to-exceed amount of $600,435, which includes a 10% contingency or $54,585. Staff confirmed that sufficient balances exist in each account.
BACKGROUND/DISCUSSION:
On September 22, 2023, the City of Montebello issued Request for Proposals (RFP) No. 24-5 (Attachment A), to secure a qualified contractor to install security cameras within the Police Department and City Hall areas. On March 27, 2024, the City Council awarded Agreement No. 4185 to Paladin for the security camera project (Attachment B), following a comprehensive evaluation process.
Part of the contract negotiations included the City and the vendor mutually agreeing to include a provision (Section 26 – Extension to Other Public Agencies) that enabled other public agencies to benefit from the same terms and conditions outlined in the agreement, in accordance with the procurement process outlined in the Montebello Municipal Code (MMC) Section 3.20.125(A) – “Piggybacking Purchasing Agreement.” A key objective for the City was to ensure the agreement could support potential security needs across additional City departments and locations, including the Transportation Department.
ENVIRONMENTAL:
N/A
ANALYSIS:
In October 2024, transportation staff contacted the Division of Information Technology (DoIT) for assistance with evaluating the existing security and surveillance camera system in Transit. A comprehensive assessment of Transportation’s camera system infrastructure determined that the current system was antiquated and no longer met the department's operational needs. It was determined that the system, initially installed to enhance safety for visitors, employees, and to deter criminal activity, no longer aligned with the City’s security expectations and needs.
In November 2024, a walkthrough was conducted by both transportation staff and the vendor (Paladin) to identify the department’s current needs. During the walkthrough, Paladin provided valuable insight and identified major deficiencies in the current camera system. In addition to the system’s age, the system was found to be fragmented with multiple disconnected components across various locations and facilities. The hardware and software varied widely in technology and capacity and capability, creating unnecessary complexity in both maintenance and operations. Furthermore, the system’s limited motion-detection recording capability does not meet the department’s requirement for continuous 24-hour loop recording.
To address these issues, Paladin proposed to install or upgrade a total of 110 cameras, strategically located inside and outside Transportation’s facility, surrounding parking lots, and the Metrolink Station (Attachment C). The upgrade will also include installing the necessary network infrastructure, updating data retention policies, enhancing software,
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and providing training for staff to ensure the efficient operation of the new system.
Therefore, Staff recommend that the City Council approve Agreement No. 4280 with Paladin (Attachment D), to purchase and install a security and surveillance camera system for the Transportation Department. Through this modernization, the Transportation Department seeks to create a safer and more secure environment for both the community and staff.
SUMMARY:
Staff recommend that the City Council approve Agreement No. 4280 with Paladin in accordance with MMC Section 3.20.125(A), for the purchase and installation of a security and surveillance camera system for the Transportation Department; amend the FY 2024- 25 adopted operating budget by increasing appropriations by $136,472 in Account No. 600-90-915-6040.95 (Transit, Administration, Corporate Shop, Contract Services - Other Professional Services); authorize the City Manager to approve change orders up to an additional 10% of the total agreement amount; and take such additional, related, action that may be desirable.
ATTACHMENT(S)
1. Attachment A - RFP 24-5
2. Attachment B - Agreement No. 4185
3. Attachment C - Paladin Proposal
4. Attachment D - Proposed Agreement No. 4280
CITY OF MONTEBELLO
Request for Proposals
RFP No. 24 – 5
Camera System Upgrade Project
Release Date: Friday, September 22, 2023
Mandatory Site Walk: Tuesday, October 10, 2023,
at 10 a.m. PDT
Due Date: Thursday, November 2, 2023, at 11 a.m. PDT
2 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 Servi ces Agreement based on the specifications outlined in this RFP.
DATE OF SOLICITATION
September 22, 2023
PROJECT
Camera System Upgrade Project
PROPOSAL OWNER
City of Montebello – Department of Finance & Information Technology 1600 West Beverly Boulevard
Montebello, CA 90640
Attn: Michael Solorza, Director of Finance & Information Technology Contact Phone: (323) 887-1200
Contact E-Mail: [email protected]
PROPOSAL CONTACT
City of Montebello – Department of Finance & Information Technology 1600 West Beverly Boulevard
Montebello, CA 90640
Attn: Micah Herd Senior Management Analyst
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, October 18, 2023, at 11:00 a.m. PST. Prospective vendors must register their business with PlanetBids before being able to view or submit a re sponse. To access the City's PlanetBids Portal, please go to:
https://www.montebelloca.gov/cms/one.aspx?portalId=58756&pageId=84839
3 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 Mandatory Site Visit/Non-Disclosure Agreement 11
7.0 Proposal Submittal 12
8.0 Evaluation of Proposal 12
9.0 Proposal Protests 13
10.0 Execution of Agreement 14
11.0 Insurance 14
12.0 Use of Federal Funds 16
13.0 Non-Commitment of City 17
14.0 Labor Requirements 17
15.0 Records 18
16.0 Subcontractors 18
17.0 Modifications/Changes 18
18.0 Disclosure of Information 18
19.0 Ex-Parte Communications 19
20.0 City of Montebello Rights 19
Appendix A – Proposal Content and Format
Appendix B – Sample Professional Services Agreement
Appendix C – Non-Disclosure Agreement1
Appendix D – Site Plans – City Hall & Police Department2 1 To be returned at the site visit
2 Site Plans will be provided to vendors who attend the mandatory site visit
1.0 Notice Inviting Proposals
The City of Montebello seeks proposals from qualified vendors to assist with upgrading the video camera system following the specification s, terms, and conditions identified in this RFP. Prospective responden ts are advised to carefull y 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.
Vendors must attend a mandatory site visit on Tuesday, October 10, 2023, at 10 a.m.
PDT. The site visit will commence at Montebello City Hall (located at 1600 West Beverly Boulevard, Montebello, CA 90640) . Failure to attend may result in the vendor ’s response to the RFP being rejected. Please see Section 6.0 of this solicitation for details.
Questions must be submitted by Wednesday, October 18, 2023, at 11:00 a.m. PST. *****QUESTIONS MUST BE SUBMITTED VIA PLANETBIDS*****
Proposals must be submitted via PlanetBids by Thursday, November 2, 2023, 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.
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2.0 Introduction
The City of Montebello invites prospective vendors to submit a proposal to provide the necessary items and services to upgrade /replace the exis ting video security system .
Currently, the City has a very an tiquated video security system installed at various buildings and facilities. The system was initially installed as a method to enhance safety for visitors and employees by acting as a cri me deterrent, providing situation al awareness for se curity personnel and law enforcement responding to incidents, and to provide evidentiary video if an incident occurs.
In addition to age, the current solution is comprised of multiple disjoined systems at various locations and facilities . The hardware and software vary in brand, technology, capacity, and capability. The City wishes to create a unified, centralized system that is capable of future expansion. Furthermore, the City is seeking on-going support services to ensure staff is trai ned how to property operate the system and for maintenance and repair services.
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 indus tries 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 Friday, September 22, 2023
• Mandatory Site Visit Tuesday, October 10, 2023, 10 a.m. PDT • Online Q&A Deadline Wednesday, October 18, 2023,11 a.m. PDT • Deadline to Submit Responses Thursday, November 2, 2023, at 11 a.m. PDT • City Review of Submissions Early/Mid-November 2023
• Interviews TBD (If Necessary)
• Notifications Sent to Vendors Early/Mid-December 2023 • Award January 2024
4.0 Purpose
The purpose of th is solicitation is to identify a qualified vendo r to assist the City with updating/replacing the City ’s existing video security system in orde r to increase reliability. At the same time , the Ci ty is seeking to procu re a system that can be easily expanded in the future. At the completion of the initial phases of this project, all cameras and network equipment, should be integrated and manageable from a single video 5
monitoring software and viewable at designated user stations.
The City is seeking to establish an agreement with a minimum term of two (2) years with up to three (3) , one (1 ) year extension option s for a total of up to five (5 ) years. This requirement may chan ge during the process of finalizing the agreement with the selected vendor.
5.0 Scope of Work/Services
City of Montebello is requesting proposals from qualif ied vendors capable of providing interior and exterior video cameras, network hardware, video monitoring software , installation services, software supp ort, maintenance and re pair services, and related items and services . The request ed solution will be used to replace the City’s exis ting video security system.
The c urrent, primary video system is located at the Polic e Department . It consists of approximately twenty-seven (27) interior and exterior cameras. The camera system operates using a video monitoring system manufactured by HIKVision. Many of the cameras have a reso lution of 960x480, 1792 bitrate, and encoding is H.26 4. Retention is thirty (30) to ninety (90) days. Other buildings and facilities in the City have cameras that operate indep endently of the Police Department ’s solution. These solutions ra nge from video solutions made f or consumer /home use to a solution that uses Genetec software.
The City is seeking to replace the existing system with a significantly improved solution with high-definition video, increased storage capacity, and improved features. In addition, the City would like to integrate the existin g camera solutions (if possible) into a single, unified solution.
In general, the City is looking for a turn-key solution. The vendor will be responsible for providing any camera hardware as well as installation of networking equipment at City facilities. The vendor will also be responsible for coordinating with the City’s Information Technology Division, as needed, for any configuration necessary for integration.
The City envisions this project being completed through a series of phases. This approach is being taken to ensure the project team can efficient ly and effectively manage tasks . Below is a list of each of areas/tasks associated with th e proposed phases. The City has also made recommendations for the number of cameras to be installed in each of the impacted areas, but proposers are encouraged to make recommendations regarding the quantity and type of cameras depending on t he needs.
The following is a list of the phases and the number of cameras required for each:
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Phase 1 – Installation of Network Equipment
During Phase 1, the vendor is expe cted to install network equipmen t in the designated area (s) (2nd Floor Police Department IDF Room and/or C ity Hall Basement). When creating plans for network equipment, vendors should keep in mind the potential for expansion to new areas within the City and integration with existing cameras.
Phase 2 – Police Department Jail & Evidence Rooms (25 Cameras) The Police Department requires a total of fourteen (14 ) cam eras in the jail. A t least one (1) camera should be placed in each jail cell and provide an over view of the entire cell . The re maining cameras will be installed at entry/exit p oints, hallways, and the sall yport area . Six (6) c ameras are needed in the evidence rooms and hallways. An additional five (5) c ameras will be installed at public entry/exit points and publicly acc essible areas of the police station on the first and third floors.
Phase 3 – Police Department Building Exterior & Parking Lot (10 Cameras) For Phase 3, the City requires a minimum of ten (10) cameras. Six (6) cameras should be used for the exterior of the P olice Department building. The remaining four (4) cam eras should be used for the Department’s parking lot with two (2 ) cameras, covering vehicle entry/exit, one (1) camera covering ped estrian entry/exit, and the re maining camera providing a n overview of the en tire area.
The Police Depart ment’s parking lot secu red by a g ate and sep arate from the City Hall parking lot.
Phase 4 – City Hall Lobby & Exterior (8 Cameras)
For the City Hall Lobby and Exterior , the City is seeking a total of eight (8) cameras. Two (2) cameras will be placed in the lobby area and the remaining cameras will be placed around the perimeter of the exterior.
Phase 5 – City Hall Parking Lot (10 Cameras)
The vendor will be responsible for installing a minimum of ten (10) cameras in the City Hall Parking Lot. Cameras should be installed in a man ner to ca pture pedestrian and vehicle traffic in the parking lot, as well as providing a clear view of the entry/exit points onto the lot from the surrounding streets.
Upon completion of each phase and system acceptance by the City ’s project team, the selected vendor will be required to provide documentation which inventories of all items/equipment installed, by the make, model, serial number, description , and location of the items/equipment. In addition, the documentation should include a diagram which details the field of view.
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As previ ously mentioned, the Ci ty is seeking a v ideo security system th at ca n be expanded in the future. Beyond the initial phases mentioned above, the City will engage with the se lected vendor for the procurement of necessary items and services if it is within the term of the agreement.
Advanced Camera Features
To ensure the solution is effective, the City is seeking a solution which includes features to enhance performance. These features, include but are not limited to:
• Pan-Tilt-Zoom (PTZ)
• Two-way Audio
• High-Definition
• Night Vision/Low-light
• Motion/Trigger Activation
Vendor proposals should make recommendations regarding the use of these features and others if determined to improve performance . Recommendations should identify which cameras should include these features.
Video Retention
Except for cameras installed in the City’s Evidence Rooms and Jail Facility, all cameras must have a retention period of thir ty (30) days. Cameras installed in Evidence Rooms and Jail Facil ity must have a retention period o f 366 days. The retention period is subject to change at any time at the request of the City.
Video Monitoring Stations
As part of the initial implementation plan , the City expe cts to rece ive a tota l of six (6 ) video viewing stations. The viewing stations will be installed at the Watch Commander’s Office/Desk (Police Department) , Jail Facility (Police Department) , Dispatch Center (Police Department ), Information Technology Off ice (City Hall), and two (2 ) additional locations that will be determined later.
Vendors are only expected to provide and install the software required for the video monitoring. The City will reserve the option to procure th e necessary hardware for installation of the monitoring software at its own discretion. Upon request, the selected vendors will need to provide minimum hardware/software requirements for operating the video monitoring software.
Staff Training
The v endor selected is expected to condu ct system administrato r and user training sessions for the City. At least three (3) training sessions are conducted for the groups (1 – System Administrator Training, 2 – User Trainings). Furthermore, the ve ndor will also 8
9 be required to provide all reference manuals, booklets , and/or other materials required for training. Vendors are requested to indicate their availability to conduct training and provide the cost in their proposal.
Training sessions can be facilitated remotely (e.g. Zoom, Microsoft Teams) or in-person.
Warranty Requirement
Unless otherwise specified, the selected vendor is expected to unconditionally guarantee the materials and workmanship on all products and equipment furnished by it FOR A PERIOD OF ONE (1) YEAR from the date of system acceptance by the City. If within the guarantee period, any defects or signs of deterioration are noted which, in the opinion of the City, are due to faulty design and installation, workmanship, or materials , the City shal l notify the vendor. At the vendor's expense, the vendor shall repair or adjust the equipment or parts to correct the condition or replace the part or entire unit to the complete satisfaction of the City.
Maintenance and Repair Services
After the war ranty period ends, t he City will seek on-going support, maintenance, and repairs services to continue. The vendor s should include the cost of extend ed maintenance and repair services after the warranty period ends for up to two (2) years.
Vendor Qualifications
The selected vendor must have the following minimum qualifications:
A. The vendor shall have full time personnel that have attended manufacturer training and obtained certification in:
i. Genetec Security Center – Synergis Technical Certif ication (or similar certification related to the proposed solution).
ii. Genetec Security Center – Omnicast Technical Certification (or similar certification related to the proposed solution).
B. The vendor shall be a Genetec certified partner (or similar certification related to the proposed solution)
C. The vendor shall submit confirmation from Genetec (or similar certification related to the proposed solution).
D. Demonstrate their experience facilitating services for a project of simi lar size and scale (or similar certification related to the proposed solution).
Background Check
Vendor representatives working on-site and in some remote capacities, will be required to undergo a background check conducted by the City.
Work Schedule
All work associated with th e system buil d/implementation phases must be completed during normal operating hours, Monday – Thursday, 7:00am – 5:00pm, excluding C ity observed holidays. The vendor’s designated project manager is ex pected to inform the City’s representative(s) where and when work will be compl eted to ensure accessibility and to minimize disruption of normal City business. Any work that is necessary to be conducted outside of normal business hours must be coordinated and approved by the City’s project management team.
6.0 Mandatory Site Visit/Non-Disclosure Agreement
All prospective vendors must attend the scheduled site visit to the Montebello Police Department and Montebello City Hall. The City reserves the right to disqualify proposal submissions from any vendor who fails to attend the site visit. The s ite visit will begin at the following date, time, and location:
Site Visit Date/Time
Tuesday, October 10, 2023, at 10 a.m. PST
Meeting Location
Montebello City Hall
1600 West Beverly Boulevard
Montebello, CA 90640
Upon arrival, proposers should park their vehicles in the areas designated “ visitor parking” located on the east and west side of City Hall. The check-in area will be located in the City Hall lobby. Please use the entrance located on the northside of the building to enter. After signing in, vendor representatives will then be directed to the meeting area where they will be met by the City’s project team and escorted to the project areas.
The City reserves the right to allow a grace period up to ten (10) minutes for late arrivals. The site visit is expected to take up to two (2) hours.
Vendors are asked to send no more than two (2) representatives to the site walk to help ensure sufficient space for attendees.
Prior to the site walk, vendor representatives will be required to sign a Non-Disclosure Agreement. A copy of the agreement has been attached as Appendix C. Vendors should print a sign the non-disclosure agreement prior to the site visit . Each vendor 10
11 representative much sign the agreement.
Upon completion of the site visit, the C ity will post sign-in sheet as Addendum. The City reserves the right t o reject any proposals submitted by vendors who did not attend the site walk and sign-in.
Vendors attending the site vi sit will be emailed copies of site plans associated with this project. Once issued, these site plans will be referred to as Appendix D.
7.0 Proposal submittal
Please review Appendix A - Proposal Fo rmat 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 informat ion may be considered “non-responsive” and rejected.
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 requ est 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 rat e 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 Evaluati on - In the second part of this process, the evaluation committee will review and rate proposals based on the following:
i. Qualifications as they relate to this project (50%)
a. Thoroughness and understanding of the tasks to be completed b. Background and experience
c. Knowledge of the City of Montebello
d. Experience of personnel assigned to the work
e. Communication Skills
ii. Reputation for integrity and competence (30%)
a. Positive Reference Checks
b. Work Samples
12 iii. Proposed fees for services (20%)
9.0 Protest Procedures
Proposal Protest Procedures (Before Proposal Opening)
A protest filed before the proposal opening must be filed in writing 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 m ust be 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/Information Technology 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 r eserves the right not to implement the propos ed remedy but to offer alternative solutions where applicable.
C. Where appropriate, the City will hold an informal conference on t he merits of a protest with all interested parties allowed to attend. Intereste d p arties may include all proposers, subcontr actors, 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.
13 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 delay ed 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 filed protest. The Director of Finance will respon d and include a response to each substantive issue raised in the protest.
After the exhaustio n 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 pr oposal 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 pr ovided written notice that the Vendor has been awarded.
Failure to execute the ag reement 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 f ollowing 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 i njury, and advertising in jury 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.
If requested, the "City of Montebello, its officials, employees, and agents" must be separately endors ed 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 (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 serv ices, 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 $1,000,000 per occurrence or claim, $2,000,000 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 b odily 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 Insur ance, the vendo r must provide the following endorsements:
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Additional insured endorsements to the general liability and auto liability* insurance policies. The "City of Montebello, its officials, employees, and agents" must be en dorsed to the vendor’s ge neral 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).
Primary, non-contributory coverage endorsements. The general liability and professional liability (if required) policies must be endorsed to provide that each policy shall apply on a primary, non -contributing basis with any insurance or self- insurance, primary or excess, maintaine d by or available to the City or its officials, employees, and agents.
Waiver and Modifications of Insurance Requirements
To the exten t permitted by law, the Ci ty may modify these insurance requiremen ts at any time and at its sole discretion.
In general, any contract deemed sole source, professional/professional services, involves the disclosure of proprietary information, and/or a public works project may require revisions to the City's standard insurance requirements. Any revisions to the insurance requirements will be identified within the associated service contract terms and conditions.
Vendors may request a waiver or modification of these insurance requirements. Waiver or modification requests must be submitted in writing. The request should state the specific insurance requirement that is being considered for waiver or modification and provide a brief explanation for the request. Requests will be reviewed on a case-by- case basis, and the decision will ultimately depend on the scope of services. The final decision to approve or deny a request will be at the City's legal authority and/or an authorized designee's discretion.
12.0 Use of Federal Funds
The City may elect to use funding from Federal sou rces for a portion of or all expenses related to th is project. The United State s Fede ral Governmen t requires purchases of items and service s to meet spe cific standa rds when using Fede ral funds, including grants, cooperative agreements, contracts, and Federal funds "passed-through" to the 15
16 City from a non-Federal entity (i.e., sub -recipient agreements). These requirements are codified under the Code o f Federal Regulation's (CFR) Title 2, Subtitle A, Chapter II, Part 200 (also referred to as "2 CFR 200" or "Uniform Guidance") and the Federal Acquisition Regulations (FAR), as applicable.
The following standards apply to all purchases of items and services using Federal funds:
• Transactions shall be conducted lawfully and ethically • Unnecessary/duplicative purchases are not permitted
• Utilizing a vendor or supplier on the U.S. Federal Government's Debarred and Suspended List (available at SAM.gov) is prohibited
• All individuals involved in the expenditure of federal monies must avoid any actual or apparent conflict of interest
• Procurement transacti ons must be conducted in a manner providing full and open competition
• Opportunities should be provided to minority businesses, women's business enterprises, and labor surplus area firms when possible • Contracts and purchase orders should include the contract provisions required by 2 CFR 200 Appendix A
• Purchases of goods and services must include documentation de tailing the procurement history
In addition to Federal standards, purchases must adhere to applicable local policies and procedures as defined in Montebello Municipal Code Chapters 3.20 and 3.21 and any relevant administrative policies. The most restrictive terms prevail when a conflict is present.
13.0 Non-Commitment of City
While the City intends to select a vendor through this process, this intention is subject to change at any time during the process. The City does not commit to awarding an agreement, paying any costs incurred in preparing the proposal for this request, and/or procuring or contracting any items or services.
14.0 Labor Requirements
A. Background: All personnel engaged in the performance of this work shall be employees of the Vendor and, as such, shall be warranted to possess sufficient experience and reliability to perform this work.
B. Health: All personnel engaged in the performance of this work shall be in good
17 health and free of contagious diseases. The Vendor shall not allow any person(s) under the influence of alcohol or drugs on the premises or in the building. N either shall the Vendor allow the use of or presence of alcohol or drugs on the premises or in the building.
C. Non-Discrimination: The Vendor shall not engage in discrimination in the employment of persons because of race, color, national origin, a ncestry, mental/physical disabilities, sex, or religion of such persons.
D. Conduct: No person(s) shall be employed for this work that is found to be incompetent, disorderly, and troublesome, under the influence of alcohol and drugs, which fails or otherwi se refuses to perform the work properly and acceptably or is otherwise objectionable. Any person found to be objectionable shall be discharged immediately and not re-employed for this work.
15.0 Records
The vendor agrees to permit the City Manager or designee access to records, reports, files, and other papers or property of the Vendor to audit any performance aspect under this agreement.
16.0 Subcontractors
The vendor shall be responsible for all work performed under the final agreeme nt and shall keep all work under his control. No portion of the work may be subcontracted without the prior written consent of the City. All subcontractors used on this work shall be under the direct supervision of the Vendor and shall be considered as their employees. Any approved subcontractors must provide insurance indemnifying the City with limits at or exceeding the limits of the Contractor's insurance.
17.0 Modifications/Changes
Changes in the areas serviced and/or specifications may be neces sary during the agreement term. Changes in th e agreement requirements and corresponding changes in compensation may be implemented upon mutual understanding between the City and the Vendor. These changes will be processed by the City Manager.
18.0 Disclosure of Information
A. The Vendor agrees that it will not during or after the term of the agreement, disclose any proprietary information or confidential business information of the City, including but not limited to its costs, charges, oper ating procedures, or methods of doing busines s to any person, vendor, corporation, association, or other entity or the general public for any reason or purpose whatsoever, without the prior written consent of the City. Such confidential or proprietary info rmation received by the Vendor shall be u sed exclusively in connection with the
18 performance of services.
B. The Vendor shall not issue or release for publication any articles, advertising, or publicity matters relating to the services performed by t he Vendor hereunder or mentioning or impl ying the name of the City or its respective personnel without the prior written consent of the City.
19.0 Ex-Parte Communications
Vendor and vendor representatives should not engage in unauthorized communications with elected officials, officers, employe es, or agents of the City about this RFP. This requirement als o includes any evaluation panel member, except for designated RFP facilitators. This requirement remains in effect until after award notifications have been made.
This restriction does not proh ibit vendors and their representatives from making oral statements or presentations to City representatives during a scheduled public meeting.
20.0 City of Montebello Rights
At its discretion, the City reserves the right to:
A. Reject any and/or all p roposals for no reason or any reason including, but not limited to, the following:
i. The proposal is incomplete, non -responsive, obscure, irregular, or lacking necessary detail and specificity.
ii. The Vendor, in the sole judgment of the City, lacks the q ualifications, experience, and/or responsibility necessary to provide the services. iii. The Vendor failed or neglected to complete and submit any information within the time specified by the City and as may be otherwise required herein.
B. Reject any propo sal that, in the opinion of the City, is so unbalanced in comparison to other proposals received and/or to the City’s internal estimates that it does not accurately reflect the cost to perform; C. Accept all or any part of a proposal;
D. Cancel the entire RFP;
E. Issue subsequent RFPs; or
F. Waive any errors or informalities in any proposal to the extent law permits.
19 Please review:
Appendix A – Proposal Content and Format
Appendix B – Sample Professional Services Agreement
Appendix C – Non-Disclosure Agreement (Please sign and provide a copy at the site visit)
Appendix D – Site Plans – City Hall & Police Department (Provided after site visit)
Project: P0013802_02
City of Montebello - Transportation Facility Video
Surveillance Upgrade - CA – SEC – 60 Days of
Retention
Client: City of Montebello – Transportation Facility
PTI Rep: Casey West
Contact: Cesar Lopez
Proposal Date: 1/09/2025
Paladin Technologies Inc.
City of Montebello - Transportation Facility Video Surveillance Upgrade - CA - SEC 2 Project: P0013802_02
Project Description & Investment
Name: City of Montebello - Transportation Facility Video Surveillance Upgrade - CA - SEC Site Billing
City of Montebello
400 S. Taylor Ave.
Montebello, CA 90640
City of Montebello
1600 W Beverly Blvd.
Montebello, CA 90640
US
Paladin Technologies Client Contact
Casey West
P: (619) 788-4199
E: [email protected]
Cesar Lopez
P:
General Scope
Paladin is pleased to provide this proposal regarding the installation of an electronic security system. As a general summary, this proposal is for a defined labor and material scope of work based on the following information:
• Montebello Transit VSS Upgrade Layout 12-6-2024 (1) drawings dated 7/26/2013. • Montebello Transit - Site Matrix 12-13-2024.
Paladin installation effort shall include the below listed tasks along with (but not be limited to) all project management duties such as formal scheduling, client interface, submission of formal requests for information, system engineering and documentation, system testing and commissioning, and coordination with all subcontractors to complete said scope of work, etc.; Any additional requirements beyond the breadth of this initial proposal effort shall be priced separately.
Paladin interprets the scope of work to include labor and material for the installation of the following:
Video Surveillance Scope
1. A total of (2) Hanwha PNM-1208RVD dual sensor cameras to be ceiling mounted.
2. A total of (3) Hanwha PNM-1208RVD dual sensor cameras to be wall mounted.
3. A total of (2) Hanwha PNM-1208RVD dual sensor cameras to be pole mounted.
4. A total of (1) Hanwha PNM-8082VT multi sensor cameras to be ceiling mounted.
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5. A total of (3) Hanwha PNM-8082VT multi sensor cameras to be wall mounted.
6. A total of (3) Hanwha PNM-9085RQZ1 multi sensor cameras to be ceiling mounted.
7. A total of (2) Hanwha PNM-9085RQZ1 multi sensor cameras to be wall mounted.
8. A total of (4) Hanwha PNM-9085RQZ1 multi sensor cameras to be corner mounted.
9. A total of (17) Hanwha PNM-9085RQZ1 multi sensor cameras to be pole mounted.
10. A total of (2) Hanwha PNM-9085RQZ1 multi sensor cameras to be pendant mounted.
11. A total of (26) Hanwha QND-7082R dome cameras to be ceiling mounted.
12. A total of (5) Hanwha QND-7082R dome cameras to be beam pendant mounted.
13. A total of (3) Hanwha QND-7082R dome cameras to be wall-arm mounted.
14. A total of (4) Hanwha QND-7082R dome cameras to be wall-vertically mounted.
15. A total of (14) Hanwha QNV-7082R dome cameras to be wall-arm mounted.
16. A total of (2) Hanwha QNV-7082R dome cameras to be pole mounted.
17. A total of (7) wireless bridges are to be installed.
18. A total of (9) network switches are to be installed.
19. A total of (9) patch panels are to be installed.
20. Camera licensing is included for a total of (93) cameras.
21. A total of (2) network video recorders with 416TB of storage each will be rack mounted in the IDF room for recording the cameras provided per this scope of work. Storage calculations are estimated based on 30FPS, with continuous recording. Video retention for 60 days.
22. A total of (1) Network Management Server will be rack mounted in the IDF room to manage the network video recorders.
Proposal Date: 1/9/2025
This Quotation is confidential. Pricing is valid for 30 days unless otherwise noted.
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Financial Summary
Summary Total
City of Montebello - Transportation Facility Video Surveillance Upgrade - CA - SEC $517,032.04 Expense $111,935.78
Labor $123,954.85
Material $281,141.41
Total $517,032.04
TAX1 - 10.25% $28,817.00
Grand Total $545,849.04
*Sales Tax amount is an estimate and is subject to change based on local, city, state/provincial, or federal laws.
Detailed Breakdown
Item Type Part Number Description QTY
Material PNM-12082RVD 6MP 2-Sensor Outdoor Multidirectional Vandal Rated 7 Material PNM-8082VT Hanwha PNM-8082VT Wisenet P-Series 2MP 3-Channel M 4 Material PNM-9085RQZ1 Wisenet P series network vandal outdoor multi-sens 28 Material QND-7082R 4MP Network IR Dome Camera - 3.2 ~ 10mm Motorized 38 Material QNV-7082R QNV-7082R:4MP IR VANDAL DOME 16
Material SBP-122HMW Camera Hanging Mount Adapter, Indoor, 5.05" Diamet 28 Material SBP-215HMW Cap Adapter, Hanging Mount, for
PNM-C7083RVD/7082RVD and PNM-C12083RVD/12082RVD
5 Material SBP-250HMW Hanging Cap, for PNM-9084QZ, PNM-9084QZ1, PNM-C16083RVQ, PNM-C32083RVQ,
White,
3 Material SBP-300CMI Pendant Mount Accessory 7
Material SBP-300KMW1 Corner Mount Base 4
Material SBP-300PMW2 Pole Mount Adapter, for use with SBP-300WMW1, Aluminum, White 21 Material SBP-300WMW Wall Mount Gooseneck White 29
Material SBP-300WMW1 Wall Mount White 25
Material SBP-315HMW Cap Adapter, for PNM-9084RQZ, and PNM-9085RQZ 23 Material 556600 Cable, Cat6, 23/4P, Plenum, White Jacket 20 Material MH-N367-CCP-PoE-MWB MultiHaul™ TG Enhanced Node, 360°, 4 x 1900Mbps (Full Duplex), 1 RJ-45 10GE & 1 RJ-45 1GE & 1 SFP+ 10GE, Mounting Kit included, IP-67, White
3 Material MH-T265-CCP-PoE-MWB MultiHaul™ TG TU, 90°, 1900Mbps (Full Duplex), 2 RJ-45 & 1 SFP+, MK & PoE injector included, IP-67, White
21 Material AX-IN-10G-60W-AC-PoE-US PoE Injector 60W, E.L ,VI, 10Gbps 3 Material AX-SRG-10G-OD 10 GbE Ethernet/PoE Surge Protector (outdoor) 802.3ab/bz/an 8 Material SR-ELITE-3Y-MH-N366 SikluCare "Elite" support plan - 3-year plan (N366, N367 & N265) 3 Material SR-ELITE-3Y-MH-TG-T-3P SikluCare "Elite" support plan - 3-year plan (T265-CCP & T280) 21 Material SR-TS-Rem Remote Config and Audit expert service. Per hour. 3 Material EH-1200FX-ODU-H-EXT EtherHaul-1200FX ODU with ADAPTER;Tx High; Ports: 2xcopper; Power: POE
1 Material EH-1200FX-ODU-L-EXT EtherHaul-1200FX ODU with ADAPTER;Tx Low; Ports: 2xcopper; Power: POE
1 Material EH-ANT-1ft-B EtherHaul 1 ft. antenna (FCC/ETSI) 2
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Material AX-MK-1ft-B EtherHaul Mounting Kit for 1 ft Antenna 2 Material AX-IN-10G-60W-AC-PoE-US PoE Injector 60W, E.L, VI, 10Gbps 2 Material AX-SRG-10G PoE Surge Protector, Indoor, 10GbE Ethernet, 2 Material SR-ELITE-3Y-F SikluCare "Elite" support plan - 3-year plan (EH1200FX) 2 Material SR-FCC-REG Link FCC Registration includes 2 registration attempts 1 Material HPE-R8N87A#ABA Aruba 6000 24G CL4 4SFP Switch U.S. - Engl 9 Material HPE-H54B2E Aruba 1Y FC NBD ExchHW 600024GCL44SFPSVC 9 Material HPE-Q9Y68AAE Aruba Central 25/6100 F 1y E-STU 9 Material IL-R228-DG3-D416-416T-16-S IronLink R228 Dual 5416S 416TB STD 2022 2 Material IL-R104-DG3-S436-BM-S IronLink R104 E-2436 Base Model STD 2022 1 Material AC027075-IL IRONLINK 16GB DDR5 UDIMM ECC MEMORY (Upgrade base model to 32GB total)
1 Material NK6PPG24Y NetKey 24-port category 6 punch down flat patch pan 9 Material AC6WHT-1 1' C6 Patch Cbl White 186
Material GSC-OM-E-1C Genetec Camera License - Omnicast 93 Material ADV-CAM-E-5Y Genetec Advantage For Camera Connection 5-Years 93
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Clarifications and Exclusions
1. This quote is proprietary information and may not be used, reproduced, or disclosed to any other parties for any other purpose without the express permission of Paladin.
2. All 120VAC, conduit and electrical infrastructure where required are to be provided by others.
3. All network switches, infrastructure and network connection that may be required for the support of this scope of work are to be provided by others unless otherwise stated in the scope of work.
4. Paladin cost proposal was developed based on information received in the RFP, SOW, drawings, site walk, etc.
5. Equipment types/counts other than those identified in the SOW or proposal are subject to change upon field verification.
6. Recommended modifications to this proposal will be identified and immediately communicated to the salesperson upon discovery.
7. Paladin’s proposal assumes that accurate and usable drawings will be provided in both hard copy and electronic formats.
8. Equipment cabinets/rack are to be provided by the structured cabling contractor.
9. Delays and/or interruptions in the performance of the proposed work that are a result of lack of required access, information or current pandemic/virus crisis and circumstances may incur additional charges.
10. This proposal is not inclusive of prevailing wage or union labor rates.
11. This proposal is based on assumptions and interpretation and of documents provided. Paladin is not responsible for any discrepancies that are found within the drawings or specifications and reserves the right to provide additional pricing upon clarification of the scope of work.
12. All workstations for use of the security systems as part of this proposal are to be provided by others.
13. Static IP Addresses will be provided by the site/customer.
14. Wall/Ceiling Patching and Painting, concrete coring, underground work is excluded.
15. Paladin assumes all owners of furnished equipment (OFE) are in good working condition. Paladin Technologies shall not be responsible for non-functioning OFE. Delays and/or additional required materials may result in additional costs.
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16. If during the performance of the contract, the price of the material significantly increases, through no fault of Paladin Technologies, the price shall be equitably adjusted through a change order, by an amount reasonably necessary to cover any such significant price increases.
17. Where the delivery of material is delayed, through no fault of Paladin Technologies, because of the shortage or unavailability from manufactures, Paladin Technologies shall not be liable for any additional costs or damages associated with such delay(s).
18. Taxes are excluded unless specifically shown as included in the pricing summary.
19. All work to be completed during normal business hours (8:30am to 5:00pm, Monday to Friday, excluding Holidays) unless otherwise noted.
20. All prices quoted herein are valid for 30 days unless otherwise noted.
21. Any existing equipment, including cable, found to be faulty and in need of repair or replacement to ensure the proper installation and functioning of the equipment covered by this order may result in additional charges.
22. If installation workflow is delayed due to a lack of site readiness including but not limited to inaccessibility, incompleteness, or construction, then extra charges may apply.
23. Warranty Limitation. Unless otherwise specified, Paladin provides a one -year warranty on all parts and labor.
24. Metrolink location was not walked and is not included in this proposal.
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Proposal Acceptance
I have read the General Terms and Conditions (Appendix A) of the sale, understand them fully, and agree to abide by them.
I hereby certify that I am authorized by my company to sign this agreement. Paladin Technologies is hereby authorized to perform the work as specified.
Accepted By: Paladin Technologies Proposal No. P0013802_02 Accepted By: City of Montebello
Name: Name:
Signature: Signature:
Title: Title:
Date: Date:
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Appendix A - General Terms & Conditions
1. DEFINITIONS AND ENTIRE AGREEMENT
“Customer” means the party named as Client in the attached Project Description & Investment document. “Paladin Technologies” means Paladin Technologies (USA) Inc. “Paladin Goods and Services” means the goods and services described in the attached Project Description & Investment document and any schedules attached by Paladin Technologies. “Quotation” means the agreement between Paladin Technologies and the Customer, comprised of the attached Project Description & Investment document, any schedules attached by Paladin Technologies, and these General Terms and Conditions.
“Site” means the site for the work listed in the attached Project Description & Investment document.
This Quotation may be accepted by the Customer by either signing where indicated in the attached Project Description & Investment document or by issuance to Paladin Technologies of a purchase order or similar document, which will constitute acceptance of these terms and conditions. This Quotation represents the entire agreement between the Customer and Paladin Technologies. No change, modification, amendment, or other agreement about this Quotation will be binding on Paladin Technologies unless agreed to in writing by an authorized Paladin Technologies representative. No Paladin Technologies sales agent or representative is authorized to make any representations, warranties, or agreements, or to bind Paladin Technologies in any way, except for the representations, warranties and obligations provided for in this Quotation. The laws of the jurisdiction where the Site is located, including builders’ lien legislation, will apply to this Quotation and Paladin Technologies will have all rights of a contractor under such builders’ lien legislation.
2. WARRANTY
Paladin Technologies warrants that the services provided by Paladin Technologies and its employees and subcontractors as part of the Paladin Goods and Services will be free from defects in design or workmanship for a period of one (1) year from the date of completion of the installation, provided that:
(a) the installation remains in ‘as installed’ condition, without any damage, abuse, modification, addition, or alteration by the Customer or any other party; and
(b) all regular maintenance and inspections as recommended by Paladin Technologies have been performed.
In the event of any defects in such services, Paladin Technologies will immediately upon notification by the Customer make the necessary repairs, at no cost to the Customer.
Paladin Technologies does not make any representation or warranty regarding any goods or equipment forming part of the Paladin Goods and Services; however, Paladin Technologies will assist the Customer to enforce all manufacturers’ warranties applicable to such goods and equipment. On-site service charges may apply in connection with such assistance.
Prior to returning any goods or equipment, a Return Material Authorization (RMA) form must be completed and can be obtained by contacting [email protected]. Shipping, handling, administration, and/or
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insurance charges may apply for Paladin Technologies to facilitate product RMA returns and manufacturer repairs.
Except as expressly provided in this Warranty section, Paladin Technologies disclaims all warranties, expressed, implied or statutory, in relation to the Paladin Goods and Services and/or any other goods or services provided by Paladin Technologies to the Customer pursuant to this Quotation, and all such statutory or implied warranties are hereby waived and excluded.
3. PRICING AND PAYMENT TERMS
All pricing provided for in this Quotation is a best estimate only, based upon the information available at the time of quoting. Pricing is valid assuming completion of supply of the Paladin Goods and Services within thirty (30) days from the date of this Quotation. All prices and charges for the Paladin Goods and Services are subject to change due to Site, environmental, economic, and other conditions, including without limitation currency exchange fluctuations and pricing changes by suppliers, and may be modified as determined by Paladin Technologies from time to time.
On approved credit (“O.A.C.”), all charges must be paid in full, without any offset, deduction, or delay within thirty (30) days of the date of an invoice. Credit privileges may be revoked at any time at the sole discretion of Paladin Technologies Credit Department or Senior Finance Executives. Interest will apply at 1.5% per month (18% per annum) on any amounts which are not paid in full within such thirty (30) day period, calculated from the date that the invoice was originally issued. A fee of twenty-five percent (25%) of the applicable price provided in this Quotation will be charged for any product returns, if they are returned in their original and unopened packaging within fifteen (15) days of delivery. The Customer will be responsible for, and will pay on demand, all costs incurred by Paladin Technologies in connection with the enforcement of the terms of this Quotation including, but not limited to, travel expenses, court costs, collection agent costs, litigation costs and all legal fees incurred by Paladin Technologies.
All applicable federal, provincial, state, and/or local taxes are payable in addition to the pricing in this Quotation.
For travel outside the municipal boundaries of the cities in which a Paladin Technologies office is located, the applicable hourly charge per Paladin Technologies personnel member and $1.25 per kilometer per vehicle will be charged from the point of origin to the Customer’s Site and return. Where applicable, airfare costs will be billed in addition to the hourly personnel charge.
Incidentals such as freight, disposal fees, equipment rental fees for non-Paladin Technologies owned equipment, per diem/meals, accommodations, parking and airfare will be charged at cost plus ten (10%) percent, where applicable. The Paladin Technologies Bucket Truck rental will be charged out at One Hundred and Twenty-Five ($125.00) dollars per hour with a two (2) hour minimum.
Paladin Technologies may delay or discontinue the Paladin Goods and Services and/or terminate this Quotation without any liability or obligation whatsoever to Customer if (a) any equipment or component of the Customer’s system is altered, modified, changed or moved without written authorization from Paladin Technologies; (b) the Customer defaults under any agreement with Paladin Technologies, including without limitation any default in payment under this Quotation; (c) Paladin Technologies’ business and/or operations are disrupted or adversely affected due to causes beyond Paladin Technologies’ reasonable control; (d) goods, labour, transportation and/or capital are not readily available; and/or (e) the Customer is or becomes bankrupt, insolvent, makes an
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assignment for the benefit of its creditors, fails to pay its debts as due, and/or otherwise suspends its business operations. The Customer may not terminate this Quotation unless Paladin Technologies has failed to fulfill its obligations hereunder for a period of thirty (30) days after written notice from the Customer. In the event Customer terminates this Quotation for any reason, the Customer will indemnify Paladin Technologies and save it harmless from any and all losses, costs and expenses associated with such termination, including, but not limited to loss of profit, lost opportunities, direct, consequential, and incidental damages, and injury to goodwill and reputation.
4. CREDIT APPROVAL
Paladin Technologies’ obligations under this Quotation are always subject to Paladin Technologies’ Credit Policy (“Credit Policy”) and the approval by Paladin Technologies’ Finance department, at its sole discretion. If credit is not approved, alternative full or partial prepayment methods may be required to proceed. The Customer specifically consents to the collection and use by Paladin Technologies of Customer credit and financial information, including the Customer’s credit file with any credit reporting agencies.
5. SITE ACCESS AND CONDITION
The Customer must provide Paladin Technologies and its personnel and subcontractors with access to the Site as and when required, and the Customer is responsible for ensuring that the Site is a safe workplace in conformity with all applicable workers’ compensation and workplace safety laws and regulations.
6. RISK
All risks and liability for loss or damage to any goods or equipment forming part of the Paladin Goods and Services will immediately pass to the Customer upon delivery to the Customer or to its carrier. Notwithstanding such passage of risk, in default of payment Paladin Technologies may, without limiting its other rights and remedies, remove from the Site any Paladin Goods and Services which have not been paid for in full.
7. SCHEDULE AND DELAYS
Paladin Technologies will make commercially reasonable efforts to meet the scheduled dates for delivery or installation of the Paladin Goods and Services provided for in this Quotation, subject always to actions, omissions or delays of others or other circumstances beyond the reasonable control of Paladin Technologies. Under no circumstances will Paladin Technologies have any liability or obligation to the Customer or to any other person for any loss or damage resulting from any delay unless such delay was caused solely by Paladin Technologies’ breach of this section.
8. INDEPENDENT CONTRACTORS
Paladin Technologies and the Customer are independent contractors, and neither will be considered to be the agent, representative, master or servant of the other party for any purpose whatsoever. Nothing in this relationship will be construed to create a joint venture, partnership, fiduciary or other similar relationship between the parties.
9. LIMITATION OF LIABILITY
Under no circumstances, including any breach by Paladin Technologies of its obligations under this Quotation, any breakdown or non-performance of any equipment or system forming part of the Paladin Goods and Services, or any negligence by Paladin Technologies or any of its employees, agents or subcontractors, will Paladin
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Technologies or any of its officers, directors, employees, shareholders or representatives have any liability to the Customer or any of the Customer’s officers, directors, employees, shareholders or representatives for any loss, costs, or damages in excess of the aggregate of the amounts actually received by Paladin Technologies from the Customer pursuant to this Quotation, regardless of the form of action or the basis for the claim.
10. CONFIDENTIALITY
This Quotation and its terms, including all pricing terms and the system design, as well as any other information, material or documents provided to the Customer by Paladin Technologies either prior to or after this Quotation has been signed (collectively, “Confidential Information”) are to be kept strictly confidential by the Customer and its employees and agents. No disclosure of any Confidential Information may be made to anyone outside the Customer’s organization (other than to its professional advisors or as the Customer may be legally obligated to make) without the prior written consent of Paladin Technologies.
CITY OF MONTEBELLO
PROFESSIONAL SERVICES AGREEMENT NO. 4280
WITH PALADIN TECHNOLOGIES
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into on May 14, 2025 (“Effective Date”), by and between the CITY OF MONTEBELLO, a California municipal corporation (the “CITY”) and PALADIN TECHNOLOGIES (the “CONSULTANT”). The CITY and the CONSULTANT are sometimes referred to herein individual as the “Party,” and jointly as the “Parties.”
RECITALS
WHEREAS, the CITY desires to retain a qualified contractor to install cameras within the transportation department; and
WHEREAS, the City issued Request for Proposals (RFP) No. 24 - 5 on September 22, 2023, to secure a qualified contractor to install security cameras within the Police Department and City Hall areas of the CITY; and WHEREAS, the CONSULTANT submitted a response to the RFP; and WHEREAS, the City evaluated the responses and determined that the CONSULTANT met the requirements in a satisfactory manner; and WHEREAS, as a result, CITY awarded CONSULTANT Agreement No. 4185 which included a provision permitting a “piggybacking purchasing agreement” provision in which additional CITY departments may obtain the same security camera and related services as those provided under Agreement No. 4185; and WHEREAS the CITY’s Transportation Department is in need of security camera and related services which fall within the scope of services of Agreement No. 4185, and desires to invoke the piggyback purchasing agreement provision of said agreement
NOW THEREFORE, in consideration of performance by the Parties of the covenants and conditions herein contained, the Parties hereto agree as follows:
SECTION 1. INCORPORATION OF 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 any and all addenda or supplemental agreements, including Agreement No. 4185.
2. Proposal referenced and Best Final Offer received by the successful proposer.
3. All other documents, including but not limited to all applicable bonds, insurance certificates, notices, schedules, forms, certifications, and affidavits.
PROFESSIONAL SERVICES AGREEMENT NO. 4280
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.
SECTION 2. SERVICES / COMPENSATION.
a. All terms, conditions, requirements, and provisions of the Request for Proposals for purchasing and installation of surveillance cameras in the City of Montebello (RFP 24-5) Request for Proposals”), as such is set forth fully in Exhibit “A” hereto, are hereby incorporated fully herein by this reference and shall be binding on the Parties. 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.
b. The CONSULTANT shall provide to the CITY all labor, equipment, materials and incidental necessary to provide Installation services as set forth fully in the Request for Proposals, as such is set forth fully in Exhibit “A” hereto and incorporated fully herein by this reference (hereinafter “Professional Services”). c. The CONSULTANT shall be compensated for performance of the Professional Services as set forth in the Schedule of Compensation attached hereto as Exhibit “B” and incorporated fully herein by this reference (“Compensation”).
The CONSULTANT shall provide an itemized billing statement to the CITY each month for Professional Services performed. The CONSULTANT shall no incur fees or costs which exceed the Compensation without the prior written consent of the CITY.
SECTION 3. TERM.
a. This Agreement shall commence upon issuance of a written “Notice to Proceed” (as further defined below) by the CITY and shall expire three (3) years from the Effective Date, unless terminated earlier as hereinafter provided. 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 CONSULTANT shall at all times, faithfully, competently, and to the best of its ability, experience, and talent, perform all tasks described herein. b. The CONSULTANT shall employ, at a minimum, generally accepted standards and practices utilized by companies engaged in providing similar services, as are required of CONSULTANT hereunder, in meeting its obligations under this Agreement.
c. The CONSULTANT shall be knowledgeable of and subject to all CITY ordinances, rules and regulations, standard operating procedures, and the supervisory chain of command.
d. The CONSULTANT shall have the right to retain, subject to the CITY's
PROFESSIONAL SERVICES AGREEMENT NO. 4280
approval, additional individuals, consultants or subconsultants to assist in the completion of services as herein defined. Compensation for additional individuals, consultants or subconsultants shall be the sole and exclusive responsibility of the CONSULTANT.
e. The CONSULTANT shall retain all original reports, field and office notes, correspondence, calculations, maps, and other documents specifically related to the services provided by the CONSULTANT 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 CONSULTANT 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 CONSULTANT 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 CONSULTANT.
b. All data, documents, discussion, or other information developed or received by the CONSULTANT or provided for performance of this Agreement are deemed confidential and shall not be disclosed by the CONSULTANT without prior written consent by the CITY. The CITY shall grant such consent if disclosure is legally required. All such written products shall be returned to the CITY upon the termination or expiration of this Agreement. The CONSULTANT 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 CONSULTANT 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 CONSULTANT and shall be the CITY’s agent with respect to obtaining the CONSULTANT’s compliance hereunder. No payment for services rendered under this Agreement shall be made without the prior approval of the City Manager.
SECTION 8. TERMINATION.
In the event that either Party hereto fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, the non-defaulting party shall give the defaulting party written notice of the default, the nature of the default, and of the steps necessary to cure the default.
a. Termination for Cause. In the event that any of the provisions of the Agreement are violated by either party, the non-defaulting Party may terminate the Agreement by serving written notice upon the other Party, listing the violation(s) and
PROFESSIONAL SERVICES AGREEMENT NO. 4280
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 CONSULTANT 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 CONSULTANT, 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 CONSULTANT. The CONSULTANT 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 CONSULTANT shall only be entitled to the Compensation for those Professional Services satisfactory performed on or before the effective date of termination.
b. Termination for Convenience. 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 CONSULTANT. Upon the termination of this Agreement as provided herein, the CITY shall provide to the CONSULTANT the part of Compensation which would otherwise be payable to the CONSULTANT for services the CONSULTANT had completed as of the date of termination, less the amount of all previous payment with respect to the Compensation. Further, upon such a termination for convenience by the CITY, the Parties agree that the CONSULTANT shall be reimbursed for any “non- refundable” costs that the CONSULTANT has incurred for its services under this Agreement, provided that: (1) such “non- refundable” costs were incurred by the CONSULTANT prior to the date of termination, and (2) that the CONSULTANT provides the CITY with adequate proof that the CONSULTANT 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 CONSULTANT for its performance of services under this Agreement. The CONSULTANT 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 CONSULTANT 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 CONSULTANT in the event of any default or breach by the CITY, or for any amount which may become due to the CONSULTANT.
SECTION 11. INDEPENDENT CONSULTANT.
a. The CONSULTANT is and shall, at all times, remain as to the CITY a wholly independent consultant. Neither the CITY nor any of its elected officials, officers, employees, or agents shall have control over the conduct of the CONSULTANT except as expressly set forth in this Agreement. The CONSULTANT shall not at any time or in any manner represent that he or she is in any manner an elected official, officer, employee, or agent of the CITY. No employee benefits shall be
PROFESSIONAL SERVICES AGREEMENT NO. 4280
available to the CONSULTANT 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 CONSULTANT for performance hereunder for the CITY, the CITY shall not be liable for compensation to the CONSULTANT, the CONSULTANT’s employees or the CONSULTANT’s subconsultants 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 CONSULTANT any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to the CONSULTANT. The CITY shall have no responsibility to provide the CONSULTANT, its employees or subconsultants with workers’ compensation insurance or any other insurance.
SECTION 12. CalPERS ANNUITANTS AND ELIGIBILITY INDEMNITY. a. If the CONSULTANT is a California Public Employees’ Retirement System (“CalPERS”) annuitant, the CONSULTANT 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 CONSULTANT. If this Agreement remains in place, the CONSULTANT 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 CONSULTANT or any employee, agent, or subconsultant of the CONSULTANT 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 CONSULTANT 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 CONSULTANT or its employees, agents, or subconsultants, 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 CONSULTANT and any of its employees, agents, and subconsultants 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.
The CONSULTANT shall at all times observe and comply with all applicable laws,
PROFESSIONAL SERVICES AGREEMENT NO. 4280
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 CONSULTANT to comply with this section.
SECTION 14. INDEMNIFICATION.
The CONSULTANT 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 CONSULTANT’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 CONSULTANT shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with CONSULTANT’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:
Commercial General Liability (CGL): Insurance Services 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 CONSULTANT 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 Liability insurance appropriate to the CONSULTANT’S profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.
b. If the CONSULTANT maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT.
c. The CONTACTOR shall require each of its subconsultants, if any, to
PROFESSIONAL SERVICES AGREEMENT NO. 4280
maintain insurance coverage that meets all of the requirements of this Agreement. d. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a current rating of at least A:VII in the latest edition of Best's Insurance Guide.
e. Each insurance policy required above shall state that coverage shall not be canceled, except after thirty (30) days’ prior written notice (ten [10] days for non-payment) has been given to the CITY. The CONSULTANT 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 CONSULTANT’s expense, the premium thereon. f.Evidence of Insurance prior to commencement. The Contractor shall provide to the CITY Certificate(s) of Insurance evidencing such coverage together with copies of the required policy endorsements no later than five (5) business days prior to commencement of service and at least fifteen (15) business days prior to the expiration of any policy. Unreasonable failure to provide such evidence may be cause for 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 CONSULTANT 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 CONSULTANT shall, prior to commencement of work under this Agreement, file with the CITY’s Risk Manager such certificate(s). h. The CONSULTANT shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages. 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 CONSULTANT agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written
PROFESSIONAL SERVICES AGREEMENT NO. 4280
notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.
j. The insurance provided by the CONSULTANT 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 CONSULTANT’s insurance and shall not contribute with it. k. All insurance coverage provided pursuant to this Agreement shall not prohibit the CONSULTANT, and CONSULTANT’s employees, agents or subconsultants, from waiving the right of subrogation prior to a loss. The CONSULTANT 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 CONSULTANT shall either reduce or eliminate the deductibles or self-insured retentions with respect to the CITY, or the CONSULTANT shall procure a bond guaranteeing payment of losses and expenses.
m. Procurement of insurance by the CONSULTANT shall not be construed as a limitation of the CONSULTANT'S liability or as full performance of CONSULTANT’s duties to indemnify, hold harmless and defend under the indemnity covenants of this Agreement.
SECTION 16. SUBCONTRACT, ASSIGNMENT OR DELEGATION.
The CONSULTANT 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-consultant, delegee, or assignee, and an explanation of why and how the same was selected, including the degree of competition involved.
Any subcontract, delegation or assignment shall be made in the name of the CONSULTANT and shall not bind or purport to bind the CITY and shall not release the CONSULTANT from any obligations under this Agreement including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegees or sub-consultants. No such subcontract, delegation or assignment shall result in any increase in the amount of total compensation payable to the CONSULTANT under the Agreement.
SECTION 17. NO WAIVER.
Waiver by any party hereto of any term, condition or covenant of this Agreement shall not constitute the waiver of any other term, condition, or covenant hereof.
SECTION 18. DISPUTE RESOLUTION; GOVERNING LAW.
Disputes regarding the interpretation or application of any provision(s) of this Agreement shall, to the extent reasonably feasible, be resolved through good faith negotiations between the Parties. If any action at law or in equity is brought to enforce this Agreement or because of alleged dispute, breach, default or misrepresentation in connection with the provisions of this Agreement, the
PROFESSIONAL SERVICES AGREEMENT NO. 4280
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. e. This Agreement may be signed in any one or more counterparts all of which
PROFESSIONAL SERVICES AGREEMENT NO. 4280
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: Raul Alvarez, City Manager
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200
Email: [email protected]
With a copy to: City of Montebello – Transportation
Attn: John Soria, Director of Transportation
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200 ext. 1315
Email: [email protected]
If to Consultant: Paladin Technologies
Attn: Joe Morris, Senior Vice President
Address: 127 42 Knott St
Garden Grove, CA 92841
(619)788-4199
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. 4280
SECTION 23. NON-DISCRIMINATION AND EQUAL OPPORTUNITY EMPLOYER.
In the performance of this Agreement, the CONSULTANT shall not discriminate against any employee, sub-consultant, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, mental condition or sexual orientation. The CONSULTANT will take affirmative action to ensure that sub- consultant and applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.
SECTION 24. CONFLICT OF INTEREST.
The CONSULTANT 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 CONSULTANT under this Agreement, or which would conflict in any manner with the performance of its services hereunder. The CONSULTANT further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, the CONSULTANT shall avoid the appearance of having any interest that would conflict in any manner with the performance of its services pursuant to this Agreement.
The CONSULTANT 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 CONSULTANT. The CONSULTANT'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 CONSULTANT. Any prior agreements, promises, negotiations or representations not expressly set forth herein are of no force or effect. Subsequent modifications to this Agreement shall be effective only if in writing and signed by each party. If any term, condition, or covenant of this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions of this Agreement shall be valid and binding.
SECTION 26. EXTENSION TO OTHER PUBLIC AGENCIES
Unless otherwise specified in writing, the CONTRACTOR agrees that the prices, terms, and conditions identified in the Proposal (Exhibit "A") and Agreement may be extended to other governmental agencies at the mutual agreement of both the public agency and awarded CONTRACTOR. All requirements of the specifications, purchase orders, invoices, and payments with other agencies shall be directly with the CONTRACTOR. CONTRACTOR acknowledges and agrees to the extension of these contract terms to other governmental agencies conditioned upon the agreement of the CONTRACTOR with the governmental agency. This provision in no way guaranteed that the CONTRACTOR will agree to enter into a contract with a governmental agency pursuant to this Section.
PROFESSIONAL SERVICES AGREEMENT NO. 4280
[SIGNATURE PAGE TO FOLLOW]
PROFESSIONAL SERVICES AGREEMENT NO. 4280
IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Agreement as of the date first written above. (“CITY”) (“CONSULTANT”)
CITY OF MONTEBELLO PALADIN TECHNOLOGIES
Raul Alvarez, City Manager Joe Morris, Senior Vice President ATTEST:
Christopher Jimenez, City Clerk
APPROVED AS TO FORM:
Arnold M. Alvarez-Glasman, City Attorney
EXHIBITS:
Exhibit A – Request for Proposals for Services and
Consultant’s Proposal
Exhibit B – Schedule of Compensation
EXHIBIT “A”
Request for Proposals for Services and Consultant’s Proposal
EXHIBIT “B”
Schedule of Compensation
ITEM # 30
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: Joseph Palombi, Director of Planning & Community Development Michael Solorza, Director of Finance
SUBJECT: APPROVE PURCHASE TWO (2) LOW-EMISSIONS VEHICLES FOR
THE PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT
UTILIZING SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
(AQMD) FUNDING
DATE: May 14, 2025
RECOMMENDATIONS:
It is recommended that the City Council:
1. Approve the purchase of two (2) vehicles for the Planning and Community Development Department, including one (1) vehicle for the Code Enforcement Division and one (1) vehicle for the Building and Safety Division, using South Coast Air Quality Management District (AQMD) funds; and
2. Declare that the purchase of these vehicles is exempt from Montebello Municipal Code Section 3.20.080 since the acquisition of these vehicles would be impractical and uneconomic to procure through the standard bidding process to maintain the public safety for the proper operation of the City’s Code Enforcement and Building and Safety divisions; and
3. Authorize the City Manager to execute all necessary documents related to the purchase of two vehicles using AQMD funding (Account No. 245-99-6082) to fully cover the purchase of vehicles in an amount not-to-exceed $120,000; and
4. Declare the vehicles to be replaced as surplus and authorize the City Manager to dispose of them as per the City’s Municipal Code and related administrative policies; and
5. Take such additional, related action that may be desirable.
FISCAL IMPACT:
CITY COUNCIL AGENDA REPORT - MEETING OF MAY 14, 2025
The total cost for the purchase of two (2) 2025 Chevrolet Equinox LT vehicles will not exceed $120,000. This expenditure will be fully funded through the AQMD Fund (Account No. 245-99-6082), which is restricted to the purchase or lease of low- or zero-emission vehicles that contribute to reducing air pollution. Therefore, no budget amendment is needed.
Historically, the AQMD Fund has been underutilized by the City. In recent years, however, the City has made notable progress by integrating hybrid, electric, and other clean-air vehicles into the municipal fleet to support regional and state sustainability goals. Sufficient funds are currently available to support this purchase, which includes one vehicle each for the Code Enforcement and the Building and Safety divisions. These new units will replace aging, high-maintenance gas-powered vehicles and improve the operational efficiency of both divisions.
Given the critical operational needs for reliable Code Enforcement and Building Inspection vehicles—and the significant lead time currently needed to secure vehicles of any type—staff recommends proceeding outside the City’s standards procurement process. Moreover, given the uncertainty in the automotive market due to recent tariff action by the Federal Government, it is in the City's best interest to move quickly in acquiring these necessary vehicles before costs increase substantially.
Therefore, Staff is recommending procurement of these two (2) vehicles utilizing the exception to normal bidding procedures allowed by Municipal Code Section 3.20.050(D):
“City Council Authorization: When the city council by a four-fifths vote determines to dispense with such bidding and other procedures required by the above-mentioned sections in every individual instance upon a finding by the city council that it would be impractical, useless, or uneconomical in such instance to follow the procedures, and that the welfare of the public would be promoted by dispensing with the same”
The 2025 Chevrolet Equinox LT vehicles are immediately available at Chevrolet of Montebello. Procuring these readily available vehicles will allow the City to avoid delays, reduce ongoing repair costs, and maintain essential service delivery, while making the most economical decision given the pending impacts tariffs will have on automotive pricing. Procuring these units now ensures operational continuity and supports the City’s continued commitment to sustainability and fleet modernization.
BACKGROUND/DISCUSSION:
The Code Enforcement and Building and Safety divisions, within the Planning and Community Development Department, are responsible for performing daily field inspections, enforcing regulations, responding to resident complaints, and ensuring citywide construction and building safety compliance. These duties require staff to be in the field for extended periods throughout the week, traveling between various locations with safety protective gear, enforcement materials, documentation, and field equipment.
On October 14, 2020, the City Council approved the purchase of 2021 Ford Escape vehicles for the Code Enforcement Division to support field operations and replace aging
CITY COUNCIL AGENDA REPORT - MEETING OF MAY 14, 2025
vehicles. At that time, two (2) 2013 Toyota Camrys remained in service due to limited funding and operational flexibility.
Currently, staff heavily rely on these twelve-year-old, high-mileage Camrys, which have exceeded their useful service life. These vehicles have become increasingly unreliable due to high mileage and recurring mechanical issues, resulting in increased maintenance costs. Repair invoices have significantly increased over the past year, and frequent downtime has caused operational challenges within the department. With both divisions fully staffed, vehicle availability and dependability is paramount for efficiency in serving the community’s needs.
To address these operational challenges, staff recommends replacing the aging Toyota Camrys with new vehicles. The new vehicles are necessary to support the expanded staff and growing operational demands, ensuring that each Code Enforcement Officer and Building Inspector has reliable, safe, dedicated transportation to perform their duties effectively while also acknowledging the need for functional air conditioning and heating when the climates drastically change.
Staff confirmed that the above-referenced vehicles meet the eligibility criteria for AQMD funding and will significantly reduce maintenance costs, enhance field capabilities, and support the City's long-term sustainability and fleet modernization goals.
ENVIRONMENTAL:
This item is not subject to the California Environmental Quality Act (CEQA) pursuant to the State CEQA Guidelines, California Code of Regulations, Title 14, Chapter 3, sections:
15060(c)(2) (the activity will not result in a direct or reasonably foreseeable indirect physical change in the environment); 15060(c)(3) (the activity is not a project as defined in Section 15378); and 15061(b)(3), because the activity is covered by the general rule that CEQA applies only to projects which have the potential for causing a significant effect on the environment. Because there is no possibility that this item may have a significant adverse effect on the environment, the item is exempt from CEQA.
ANALYSIS:
N/A
SUMMARY:
Using existing AQMD funds, the Planning and Community Development Department is requesting approval to purchase two (2) new vehicles to replace the aging 2013 Toyota Camrys to support the Code Enforcement and Building and Safety divisions. The vehicles selected—two (2) 2025 Chevrolet Equinox LT low-emission models—meet the operational needs of the divisions while complying with the Air Quality Management District (AQMD) program requirements. The total cost of the vehicles, not-to-exceed $120,000, will be fully funded through the AQMD Fund.
This purchase will enhance staff efficiency, reduce ongoing maintenance expenses, and
CITY COUNCIL AGENDA REPORT - MEETING OF MAY 14, 2025
support the City’s continued commitment to fleet modernization and environmental sustainability. Accordingly, this procurement is exempt from the City’s standard purchasing method and the City Council hereby approves the purchase of these vehicles by the provisions of the Montebello Municipal Code Section 3.20.050(D) with a 4/5ths vote.
ATTACHMENT(S)
1. Attachment A_Vehicle Quotes
BUYER CO-BUYER Deal#: 173627
CITY OF MONTEBELLO Deal Type: Retail
1600 W BEVERLY BLVD Deal Date: 04/29/2025
MONTEBELLO, CA 90640
Cell#: (213) 713-4651 Print Time: 03:56pm
Email: Salesperson:
VEHICLE
New 0
Used □ Stock#: Description: VIN: Mileage:
Demo □ A0422 2025 CHEVROLET TRUCK EQUINOX EV 3GN7DLRP1SS182895 5 TRADE
AFTERMARKETS MSRP: $ 45,090.00
Sale Price: $ 45,090.00
Total Financed Aftermarkets: $ 0.00
Total Trade Allowance: $ 0.00
Trade
Difference: $ 45,090.00
Doc Fee: $ 85.00
State & Local Taxes: $ 4,743.37
Total License and Fees: $ 666.00
Total Cash Price: $ 50,584.37
Total Trade Payoff: $ 0.00
Total Aftermarkets: $ o.oo Delivered Price: $ 50,584.37 cash Down Payment + Deposit: $ 0.00
Sub Total: $ 50,584.37
Service Agreement: $ 0.00
Rate: Maintenance Agreement: $ 0.00
Amount Financed: $ 50,584.37 GAP Insurance: $ 0.00
Credit Life, Accident & Health: $ 0.00
Other: $ 0.00
Amount Financed: $ 50,584.37
The final terms of the loan may differ, depending on the actual terms of the financial institution's acceptance and final terms are negotiable.
Actual payments may vary. Loan payments subject to credit approval and terms and conditions of the loan.
ATTACHMENT A
ITEM # 31
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: AUTHORIZE INCREASING THE BLANKET PURCHASE ORDER WITH DELL MARKETING LP IN THE AMOUNT OF $100,000 TO PURCHASE COMPUTER TECHNOLOGY EQUIPMENT FOR FISCAL YEAR 2024-25.
DATE: May 14, 2025
RECOMMENDATIONS:
It is recommended that the City Council:
1. It is recommended that the City Council increase the blanket purchase order amount to $100,000 for Dell Marketing LP for information technology-related purchases for Fiscal Year 2024-25; and,
2. Take such additional, related action that may be desirable.
FISCAL IMPACT:
The Information Technology (DoIT) Division utilizes Dell Marketing LP (Dell) for equipment purchases such as laptops, webcams, speakers, keyboard/mouse combos, monitors, servers, and network switches for various departments within the City.
The City has reached the $50,000 spending limit and requires City Council approval to make additional purchases. Staff is requesting additional spending authority of up to $100,000 to continue purchasing supplies/equipment for the remainder of Fiscal Year 2024-25. No budget appropriations are required, as each department will continue to use its existing approved budget for these purchases.
BACKGROUND/DISCUSSION:
The City’s Information Technology Division (DoIT) manages all Dell purchase orders on
CITY COUNCIL AGENDA REPORT - MEETING OF MAY 14, 2025
behalf of all City departments. Dell provides essential technology equipment products such as desktops, laptops, webcams, speakers, keyboard/mouse combos, monitors, servers, switches, and other related accessories that support operational efficiency and service delivery. Departments submit their equipment needs or requests to DoIT for review, who then opens purchase orders for Dell as needed, maintaining an organized and efficient purchasing process. Requests and purchases are frequently made when new staff are onboarded and bulk orders are made for programs such as the Fire Academy, EOC operations, and Transit operations. Additionally, the Fiscal Year 2024- 25 adopted budget includes supplemental funding for DoIT to purchase stock laptops to have on hand in the event they need to be loaned out to departments.
The City is requesting additional purchasing authority for Dell due to the cost savings on technology equipment purchases and its compatibility with a wide range of hardware and software. Pricing is often significantly lower for the equipment needed when purchasing directly from Dell. Additionally, the vendor provides next-day delivery at no additional cost and includes a three (3)-year on-site, next-day warranty by default. Dell offers a wide variety of items and access to discounted software, making it a cost-effective and reliable option for essential computer technology needs.
A cooperative purchasing contract through the National Association of the State Procurement Officials (NASPO) is utilized for purchases with Dell. NASPO offers competitively bid contracts which meet or exceed local purchasing requirements for use by the public sector. Cooperative contract purchasing opportunities save participating agencies time and money for procurement of needed equipment and services. The City is eligible to utilize pre-negotiated pricing through their publicly vetted agreement with Dell. Therefore, purchases do not require quotes - per Municipal Code Chapter
3.20.050(F) which allows for purchases to be made through cooperative purchasing programs.
ENVIRONMENTAL:
N/A
ANALYSIS:
N/A
SUMMARY:
It is recommended that the City Council authorize increasing the blanket purchase order amount to $100,000 for Dell Marketing LP for purchases during Fiscal Year 2024-2025.
ATTACHMENT(S)
1. Attachment A - Dell Marketing NASPO Agreement
Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529 Assignment of NASPO Master Agreement 23004 Page 1 of 3
ASSIGNMENT OF NASPO MASTER AGREEMENT 23004
This Assignment Agreement is by and among the State of Minnesota, acting through its Commissioner of Administration (State), Dell Inc., One Dell Way, Round Rock, TX 78682 (Original Contractor), and Dell Marketing L.P., One Dell Way, Mailstop RR1-33 Legal, Round Rock, TX 78682 (Assigned Contractor).
WHEREAS, the State has an agreement with the Original Contractor identified as Contract 23004, effective July 14, 2023, through June 30, 2025 (Contract), to provide Computer Equipment, Peripherals & Related Services; and WHEREAS, the Original Contractor wishes to assign all its interests in the Contract to the Assigned Contractor; and WHEREAS, the assignment provision of the Contract provides assignment of the agreement only upon written consent of the State.
NOW, THEREFORE, it is agreed by the parties to amend the Contract as follows:
1. The Assigned Contractor is assigned Contract 23026 to accommodate participating addenda under the Master Agreement.
2. This Assignment Agreement will become effective upon its approval and execution by the parties and approval of the appropriate State officials, pursuant to Minn. Stat. § 16C.05, subd. 2.
3. The State hereby approves the request of the Original Contractor to assign the Assigned Contractor all its interests, rights, and responsibilities, duties, and other provisions set forth in the Contract, which is attached and incorporated as Exhibit A, provided the Original Contractor and the Assigned Contractor agree to all provisions set forth in this Assignment Agreement.
4. Representations and Warranties:
a. The Original Contractor represents and warrants to the State that it is not in default of any of its obligations under the Contract.
b. The Assigned Contractor represents and warrants to the State that: (i) as of the effective date of this Assignment Agreement, the Assigned Contractor will have received sufficient information, right to technology, and key personnel sufficient to properly perform the duties, responsibilities, obligations, and all other provisions assigned to it, and (ii) the Assigned Contractor is ready, willing, and able to perform all of the duties, obligations, and responsibilities of the Contract. c. The representations and warranties set forth in this Section 4 are for the sole benefit of the State and its permitted assigns and nothing herein, express or implied, is intended to or shall confer upon any other person or entity (including the Original Contractor and the Assigned Contractor) any legal or equitable right, benefit or remedy of any nature whatsoever under or by reason of this Assignment Agreement.
5. The Assigned Contractor accepts assignment of all of the provisions of the Contract.
6. Any and all amounts due to the Original Contractor by a Participating Entity for goods or services provided by the Original Contractor prior to July 14, 2023, under the Contract will be paid to the Original Contractor by the Participating Entity. Any and all amounts due under the Contract on or after July 14, 2023, will be paid to the Assigned Contractor by the Participating Entity and the Original Contractor.
7. When applicable, payment for remaining work and travel expenses from the Contract will be paid at the rates set in the Contract. The amount to be paid to the Assigned Contractor will not exceed the Contract’s total costs, minus the DocuSign Envelope ID: F019BE07-AEF0-4A14-B979-8BB85953FE52
Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529 Assignment of NASPO Master Agreement 23004 Page 2 of 3
total payments made to the Original Contractor.
8. If applicable, the Assigned Contractor will provide proof of insurance with the coverage and in the amounts called for in the original solicitation document, attached herein.
9. If applicable, the Assigned Contractor will provide a copy of its Affirmative Action Certification as approved by the Minnesota Department of Human Rights.
10. If applicable, the Assigned Contractor will provide a copy of its Equal Pay Certification as approved by the Minnesota Department of Human Rights.
This Assignment Agreement is effective upon the date that the final required signatures are obtained.
IN WITNESS WHEREOF, the parties have caused this Assignment Agreement to be duly executed intending to be bound thereby.
1. ORIGINAL CONTRACTOR
Dell Inc.
The Original Contract Vendor certifies that the appropriate person(s) have executed this document on behalf of the Contract Vendor as required by applicable articles, bylaws, resolutions, or ordinances.
By:
Signature
Printed Name
Title:
Date:
By:
Title:
Date:
3. OFFICE OF STATE PROCUREMENT
In accordance with Minn. Stat. §16C.03, Subd. 3.
By:
Signature
Printed Name
Title:
Date:
2. ASSIGNED CONTRACTOR
Dell Marketing L.P.
The Assigned Contract Vendor certifies that the appropriate person(s) have executed the Contract on behalf of the Contract Vendor as required by applicable articles, bylaws, resolutions, or ordinances.
By:
Signature
Printed Name
Title:
Date:
By:
Title:
Date:
4. COMMISSIONER OF ADMINISTRATION
Or delegated representative.
By:
Signature
Printed Name
Title:
Date:
DocuSign Envelope ID: F019BE07-AEF0-4A14-B979-8BB85953FE52 Christopher Alan Garcia
Asst. Corp Secretary & SVP Legal
9/7/2023
ParaLegal Advisor
9/7/2023
Katherine Castillo
Elizabeth M. Randa
9/7/2023
Acquisition Management Specialist
Andy Doran
9/7/2023
IT Acquisitions Supervisor
Persons with a hearing or speech disability may contact us by dialing 711 or 1.800.627.3529 Assignment of NASPO Master Agreement 23004 Page 3 of 3
EXHIBIT A: CONTRACT
Attached and incorporated into Exhibit A is the following document(s):
• NASPO Master Agreement 23004.
DocuSign Envelope ID: F019BE07-AEF0-4A14-B979-8BB85953FE52
NASPO ValuePoint Master Agreement No.: 23004
This Contract is between the State of Minnesota, acting through its Commissioner of Administration (“Lead State”) and Dell Inc., whose designated business address is One Dell Way, Round Rock, TX 78682 (“Contractor”). State and Contractor may be referred to jointly as “Parties.”
Recitals
1. The State of Minnesota, Department of Administration, Office of State Procurement, on behalf of the State of Minnesota and NASPO ValuePoint Cooperative Procurement Program (“NASPO ValuePoint”) issued a solicitation to establish Minnesota NASPO ValuePoint Master Agreement(s) (“Contract”) with qualified manufacturers for Computer Equipment (Desktops, Laptops, Tablets, Servers, and Storage, including related Peripherals & Services);
2. Contractor provided a response to the Solicitation indicating its interest in and ability to provide the goods or services requested in the Solicitation; and
3. Subsequent to an evaluation in accordance with the terms of the Solicitation and negotiation, the Parties desire to enter into a contract; and
4. All authorized governmental entities in any state or participating US Territory are welcome to use the resulting Master Agreement through NASPO ValuePoint with the approval of the State Chief Procurement Official. Upon final award of the overarching Master Agreement, Contractors are able to sign Participating Addendums (PA) at the option of Participating States. Participating States reserve the right to add state specific terms and conditions and modify the scope of the contract in their Participating Addendum as allowed by the Master Agreement.
Accordingly, the Parties agree as follows:
Contract
Term of Contract
Effective date. July 1, 2023, or the date the Lead State obtains all required signatures under Minn. Stat. § 16C.05, subd. 2, whichever is later.
Expiration date. June 30, 2025. This Master Agreement may be extended for up to an additional 36 months, in increments as determined by the Lead State, through a duly executed amendment.
If, in the judgment of the Lead State, a follow-on, competitive procurement will be unavoidably delayed beyond the planned date of execution of the follow-on master agreement, this Master Agreement may be extended for a reasonable period of time, not to exceed six months. This subsection shall not be deemed to limit the authority of a Lead State under its state law otherwise to negotiate contract extensions.
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Representations and Warranties
Under Minn. Stat. §§ 15.061 and 16C.03, subd. 3, and other applicable law the Lead State is empowered to engage such assistance as deemed necessary.
Contractor warrants that it is duly qualified and shall perform its obligations under this Master Agreement in accordance with the commercially reasonable standards of care, skill, and diligence in Contractor’s industry, trade, or profession, and in accordance with the specifications set forth in this Master Agreement, to the satisfaction of the Lead State.
Contractor warrants that it possesses the legal authority to enter into this Master Agreement and that it has taken all actions required by its procedures, by-laws, and applicable laws to exercise that authority, and to lawfully authorize its undersigned signatory to execute this Master Agreement, or any part thereof, and to bind Contractor to its terms.
Awarded Band(s)
The solicitation included three product Bands: Band 1, Personal Computing Devices – Windows Operating Systems:
Desktops, Laptops, Tablets; and Band 2, Personal Computing Devices – Non-Windows Operating Systems: Desktops, Laptops, Tablets; and Band 3, Servers and Storage. The Contractor is awarded the following Band(s):
Band 1, Personal Computer Devices – Windows Operating Systems Band 2, Personal Computer Devices - Non-Windows Operating Systems Band 3, Servers and Storage
Configuration Dollar Limits
The following configuration limits apply to the Master Agreement. Participating Entities may define their configuration limits in their Participating Addendum. The Participating Entity’s Chief Procurement Official may increase or decrease the configuration limits, as defined in their Participating Addendum. The Participating Entity will determine with the Contractor how to approve these modifications to the Product and Service Schedule.
The dollar limits identified below are based on a SINGLE computer/system configuration. This is NOT a restriction on the purchase of multiple configurations (e.g., an entity could purchase 10 laptops at $15,000 each, for a total purchase price of $150,000).
ITEM CONFIGURATION
Band One $15,000
Band Two $15,000
Band Three $1,000,000
Peripherals $10,000
Services Addressed in the Participating Addendum
Restrictions
The following restrictions apply to the Master Agreement. A Participating Entity may set further restrictions of products in their Participating Addendum. The Participating Entity will determine with the Contractor how to approve these modifications to the Entity’s Product and Service Schedule.
Software
Software is restricted to operating systems and commercial off-the-shelf (COTS) software and is subject to equipment configuration limits.
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Any software purchased must be related to the procurement of equipment.
Software must be pre-loaded or provided as an electronic link with the initial purchase of equipment, except for the exceptions allowed under Paragraph 5.a.4.
Software such as middleware which is not always installed on the equipment, but is related to storage and server equipment (Band 3) purchased, is allowed and may be procured after the initial purchase of equipment.
General Services
Services must be related to the procurement of equipment.
Service limits will be addressed by each State.
Wireless phone and internet service is not allowed.
Managed Print Services are not allowed.
Cloud Services
Cloud Services are restricted to Services that function as operating systems and software needed to support or configure hardware purchased under the scope of the contract and is subject to equipment configuration limits.
Any Cloud Service purchased must be related to the procurement of equipment.
Third-Party Products
Third-Party Products can be offered only in the Bands they have been awarded. All third-party products must meet the definition(s) of the Band(s) in which they are being offered.
Products manufactured by another Contractor holding a Minnesota NASPO ValuePoint Master Agreement for Computer Equipment cannot be offered unless approved by the Lead State.
Additional Product/Services
Hardware and software required to solely support wide area network (WAN) operation and management are not allowed.
Lease/Rentals of equipment may be allowed and will be addressed by each State.
Cellular Phone Equipment is not allowed.
EPEAT Bronze requirement may be waived, on a State case-by-case basis, if approved by the State’s Chief Procurement Officer. EPEAT Bronze requirement does not currently apply to storage.
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Authorized Representative
Master Agreement Administrator. The Master Agreement Administrator designated by NASPO ValuePoint and the State of Minnesota, Department of Administration is Elizabeth Randa, Acquisition Management Specialist.
Elizabeth Randa, Acquisition Management Specialist
Department of Administration
Office of State Procurement
112 Administration Building
50 Sherburne Avenue
St. Paul, MN 55155
E-mail: [email protected]
Phone: 651.201.3122
Contractor’s Authorized Representative. The Contractor's Authorized Representative is Ashley Salinas, SLED Contract Program Manager.
Ashley Salinas, SLED Contract Program Manager
Dell Inc.
One Dell Way
Round Rock, TX 78682
[email protected]
Phone: 512.542.1237
If the Contractor’s Authorized Representative changes at any time during this Contract, the Contractor must immediately notify the Lead State.
Notices
If one party is required to give notice to the other under the Master Agreement, such notice shall be in writing and shall be effective upon receipt. Delivery may be by certified United States mail or by hand, in which case a signed receipt shall be obtained. An email shall constitute sufficient notice, provided the receipt of the transmission is confirmed by the receiving party. Either party must notify the other of a change in address for notification purposes. All notices to the Lead State shall be addressed to the Master Agreement Administrator.
Exhibits
The following Exhibits are attached and incorporated into this Contract. In the event of a conflict between the terms of this Contract and its Exhibits, or between Exhibits, the order of precedence is first the Contract, and then in the following order:
Exhibit A: NASPO ValuePoint Terms and Conditions
Exhibit B: Minnesota Terms and Conditions
Exhibit C: Requirement
Exhibit D: Price Schedule
Exhibit E: Contractor Terms and Conditions
Survival of Terms:
The following clauses survive the expiration or cancellation of this Master Agreement: Indemnification; State Audits; Government Data Practices and Intellectual Property; Publicity and Endorsement; Governing Law, Jurisdiction, and Venue; and Data Disclosure. Any other Contract term that states it shall survive, shall survive.
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Entire Agreement
This Contract and any written addenda thereto constitute the entire agreement of the parties to the Master Agreement.
1. Contractor
The Contractor certifies that the appropriate
person(s) have executed the Contract on behalf of
the Contractor as required by applicable articles,
bylaws, resolutions, or ordinances.
2. State Agency
With delegated authority
Print name: Print name:
Signature: Signature:
Title: Date: Title: Date:
3. Commissioner of Administration
As delegated to The Office of State Procurement
Print name:
Signature:
Title: Date:
DocuSign Envelope ID: 22C62BA3-AFF9-40A4-8FA3-F4D018802CC5 7/14/2023ParaLegal Advisor
Katherine Castillo
7/14/2023Acquisition Management Specialist
Elizabeth M. Randa
Andy Doran
IT Acquisitions Supervisor 7/14/2023
DocuSign Envelope ID: F019BE07-AEF0-4A14-B979-8BB85953FE52
Exhibit A: NASPO ValuePoint Master Agreement Terms and Conditions Conflict of Terms/Order of Precedence.
Any order placed under this Master Agreement shall consist of the following documents:
A Participating Entity’s Participating Addendum (“PA”); Minnesota NASPO ValuePoint Master Agreement, as negotiated, including all exhibits; A Purchase Order issued against a PA (terms and conditions set forth in a Purchase Order will not be deemed to modify, diminish, or otherwise derogate the terms and conditions set forth in a Participating Addendum or Minnesota NASPO ValuePoint Master Agreement).
These documents shall be read to be consistent and complementary. Any conflict among these documents shall be resolved by giving priority to these documents in the order listed above. Contractor terms and conditions that apply to this Master Agreement are only those that are expressly accepted by the Lead State and must be in writing and attached to this Master Agreement as an Exhibit or Attachment.
Contractor terms and conditions may be incorporated if expressly accepted by the Lead State and attached to the Master Agreement as an Exhibit or Attachment, or by written reference (including reference to information contained in a URL or referenced policy). A written reference, including by URL or policy, is incorporated into the Master Agreement only if the Master Agreement expressly identifies that reference. URL’s must be explicitly referenced to be incorporated into the Master Agreement. URL’s contained within the URL’s that are explicitly referenced are not incorporated into the Master Agreement. Any Contractor term or condition incorporated by URL or written reference applies to this Master Agreement only to the extent such term or condition is not prohibited by applicable law. Any change to information contained in a URL or referenced policy will not affect any financial obligation, place any additional material obligation on an ordering entity, or materially diminish an ordering entity’s ability to use the product or service.
A written Master Agreement (which may include the contents of the RFP and selected portions of Contractor’s response incorporated therein by reference) will constitute the entire agreement of the parties to the Master Agreement. No other terms and conditions shall apply, including terms and conditions listed in the Contractor’s response to the RFP, or terms listed or referenced on the Contractor's website not otherwise incorporated into the Master Agreement, in the Contractor quotation/sales order, or in similar documents subsequently provided by the Contractor.
Additional Agreement with NASPO. Upon request by NASPO ValuePoint, awarded Contractor shall enter into a direct contractual relationship with NASPO ValuePoint related to Contractor’s obligations to NASPO ValuePoint under the terms of the Master Agreement, the terms of which shall be the same or similar (and not less favorable) than the terms set forth in the Master Agreement.
Definitions.
Acceptance is defined by the applicable commercial code, except Acceptance shall not occur before the completion of delivery in accordance with the Order, installation if required, and a reasonable time for inspection of the Product.
Accessory means a product that enhances the user experience but does not extend the functionality of the computer (e.g. mouse pad or monitor stand). For the purposes of this Contract, accessories are considered peripherals.
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_____ as a Service (_aaS) refers to any good provided in a subscription-based model that is defined in the industry as “_____ as a Service”. Examples are “Software as a Service”, “Infrastructure as a Service”, and “Storage as a Service”, and shall follow the NIST definitions of those services. ____ as a Service are permitted only when they meet the restrictions found in Paragraph 5.c, above.
Band means a category of products. There are three product bands which may be awarded through this Contract. Each product band includes related peripherals and services.
Components are the parts that make up a computer configuration.
Contractor means the person or entity delivering Products or performing services under the terms and conditions set forth in this Master Agreement.
Configuration means the combination of hardware and software components that make up the total functioning system.
Customer (see Purchasing Entity).
Desktop means a personal computer intended for regular use at a single location. A desktop computer typically comes in several units connected together during installation: (1) the processor, 2) display monitor, and 3) input devices usually a keyboard and a mouse. Desktops, including desktop virtualization endpoints such as zero and thin clients, are included in Bands 1 and 2 of this Contract.
Embedded Software means one or more software applications which permanently reside on a computing device.
Energy Star® is a voluntary energy efficiency program sponsored by the U.S. Environmental Protection Agency.
The Energy Star program makes it easy to identify energy efficient computers by labeling products that deliver the same or better performance as comparable models while using less energy and saving money. For additional information on the Energy Star program, including product specifications and a list of qualifying products, visit the Energy Star website at http://www.energystar.gov.
EPEAT is a type-1 ecolabel for identifying and purchasing sustainable IT products. EPEAT-registered products must meet sustainability criteria detailed in voluntary consensus-based standards that are free and publicly available on the Green Electronics Council’s website at www.greenelectronicscouncil.org. Products are classified as Bronze, Silver, or Gold based on meeting criteria that address the life cycle of the products. Product life cycle includes material extraction, hazardous substance reduction, end-of-life management, packaging, and corporate sustainability. Only products listed as Active in the online EPEAT Registry are considered to meet the EPEAT criteria.
FOB Destination means that shipping charges are included in the price of the item and the shipped item becomes the legal property and responsibility of the receiver when it reaches its destination unless there is acceptance testing required.
FOB Inside Delivery means that shipping charges are included in the price of the item, and that the shipped item becomes the legal property and responsibility of the receiver when it reaches the inside delivery point, which is beyond the front door or loading dock. FOB Inside Delivery is a special shipping arrangement that may include additional fees payable by the Purchasing Entity. FOB Inside Delivery must be annotated on the Purchasing Entity ordering document.
DocuSign Envelope ID: 22C62BA3-AFF9-40A4-8FA3-F4D018802CC5 DocuSign Envelope ID: F019BE07-AEF0-4A14-B979-8BB85953FE52
Intellectual Property means any and all patents, copyrights, service marks, trademarks, trade secrets, trade names, patentable inventions, or other similar proprietary rights, in tangible or intangible form, and all rights, title, and interest therein.
Laptop means a personal computer for mobile use. A laptop includes a display, keyboard, point device such as a touchpad, and speakers in a single unit. A laptop can be used away from an outlet using a rechargeable battery.
Laptops include notebooks, ultrabooks, netbooks, Zero and thin client devices, and computers with mobile operating systems. Laptops are included in Bands 1 and 2 of this Contract.
Lead State means the State centrally administering any resulting Master Agreement(s).
Mandatory Requirement is a requirement that the failure to meet results in the rejection of the responder’s proposal unless all responders are unable to meet the mandatory requirement. The terms “must” and “shall” identify a mandatory requirement. Any objection to a mandatory requirement should be identified by responders in the Question and Answer period.
Manufacturer means a company that, as one of its primary business functions, designs, assembles, owns the trademark/patent for, and markets branded computer equipment.
Master Agreement means the underlying agreement executed by and between the Lead State, acting on behalf of NASPO ValuePoint, and the Contractor.
Middleware means the software “glue” that helps programs and databases (which may be on different computers) work together. The most basic function of middleware is to enable communication between different pieces of software.
NASPO ValuePoint is a division of the National Association of State Procurement Officials (“NASPO”), a 501(c)(3) limited liability company. NASPO ValuePoint facilitates administration of the NASPO cooperative group contracting consortium of state chief procurement officials for the benefit of state departments, institutions, agencies, and political subdivisions and other eligible entities (i.e., colleges, school districts, counties, cities, some nonprofit organizations, etc.) for all states, the District of Columbia, and territories of the United States. NASPO ValuePoint is identified in the Master Agreement as the recipient of reports and may perform contract administration functions relating to collecting and receiving reports as well as other contract administration functions as assigned by the Lead State.
Option means an item of equipment or a feature that may be chosen as an addition to or replacement for standard equipment and features.
Order or Purchase Order means any purchase order, sales order, contract or other method used by a Purchasing Entity to order the Products.
Participating Addendum means a bilateral agreement executed by a Contractor and a Participating Entity incorporating this Master Agreement and any other additional Participating Entity specific language or other requirements, e.g. ordering procedures specific to the Participating Entity, other terms and conditions.
Participating Entity means a state (as well as the District of Columbia and U.S territories), city, county, district, other political subdivision of a State, or a nonprofit organization under the laws of some states properly authorized to enter into a Participating Addendum, that has executed a Participating Addendum.
Participating State means a state that has executed a Participating Addendum.
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Partner means a company, authorized by the Contractor and approved by the Participating Entity, to provide marketing, support, or other authorized contract services on behalf of the Contractor in accordance with the terms and conditions of the Contractor’s Master Agreement. A Partner may include, but is not limited to, an agent, subcontractor, fulfillment partner, channel partner, business partner, servicing subcontractor, etc.
Peripherals means any hardware product that can be attached to, added within, or networked with personal computers, servers, or storage. Peripherals extend the functionality of a computer without modifying the core components of the system.
Per Transaction Multiple Unit Discount means a contractual volume discount based on dollars in a single purchase order or combination of purchase orders submitted at one time by a Participating Entity or multiple entities conducting a cooperative purchase.
Premium Savings Package(s) (PSP) are deeply discounted standard configurations available to Purchasing Entities using the Master Agreement. NASPO ValuePoint reserves the right to expand and modify the PSP throughout the life of the contract. For more information see: https://www.naspovaluepoint.org/portfolio/57/.
Product means any equipment, software (including embedded software), documentation, service, or other deliverable supplied or created by the Contractor pursuant to this Master Agreement. The term Products, supplies and services, and products and services are used interchangeably in these terms and conditions.
Purchasing Entity means a state (including the District of Columbia and U.S. territories), city, county, district, other political subdivision of a state, other public entities domestic or foreign, and nonprofit organizations under the laws of some states if authorized by a Participating Addendum, that issues a Purchase Order under the terms of the Master Agreement, or any Participating Addendum thereto, and becomes financially committed to the purchase.
Ruggedized means equipment specifically designed to operate reliably in harsh usage environments and conditions, such as strong vibrations, extreme temperatures, and wet or dusty conditions. Ruggedized equipment may be proposed under the band that most closely fits the equipment being proposed.
Server means computer hardware dedicated to run one or more services or applications (as a host) to serve the needs of the users of other computers on a network. Servers may be either physical or virtual. Servers, including server appliances, are included in Band 3 of this Contract. Server appliances have their hardware and software preconfigured by the manufacturer, and include embedded networking components such as those found in blade chassis systems.
Services are broadly classified as installation or de-installation, maintenance, support, training, migration, and optimization of products offered or supplied under the Master Agreement. These classifications of services may include, but are not limited to: warranty services, maintenance, installation, de-installation, factory integration (software or hardware components), asset management, recycling or disposal, training and certification, pre- implementation design, disaster recovery planning and support, service desk or helpdesk, imaging, and any other directly related technical support service required for the effective operation of a product offered or supplied.
Contractors may offer limited professional services related ONLY to the equipment and configuration of the equipment purchased through the resulting contracts.
EACH PARTICIPATING ENTITY WILL DETERMINE RESTRICTIONS AND NEGOTIATE TERMS FOR SERVICES THROUGH THEIR PARTICIPATING ADDENDUM.
Software means, for the purposes of this Contract, commercial operating off the shelf machine-readable object code instructions including microcode, firmware, and operating system software that meet the restrictions specified DocuSign Envelope ID: 22C62BA3-AFF9-40A4-8FA3-F4D018802CC5 DocuSign Envelope ID: F019BE07-AEF0-4A14-B979-8BB85953FE52
in Paragraph 5.a. “Software” applies to all parts of software and documentation, including new releases, updates, and modifications of software.
Storage means hardware or a virtual appliance with the ability to store large amounts of data. Storage, including SAN switching necessary for the proper functioning of storage equipment, is included in Band 3 of this Contract Storage Area Network (SAN) is a high-speed special-purpose network (or subnetwork) that interconnects different kinds of data storage devices with associated data servers on behalf of a larger network of users.
Tablet means a mobile computer that provides a touchscreen that acts as the primary means of control. Tablets, including notebooks, ultrabooks, and netbooks with touchscreen capabilities, are included in Bands 1 and 2 of this Contract.
Takeback Program means the Contractor’s process for accepting the return of equipment or other products at the end of the product’s life.
Thin Client is a lightweight computer that has been optimized for establishing a remote connection with a server-based computing environment.
Third Party Product is a good sold by the Contractor that is manufactured by another company. Third Party Products are intended to enhance or supplement a Contractor’s own product line, and are not intended to represent more than a third of any Contractor’s total sales under this Master Agreement.
Upgrade means the replacement of existing software, hardware, or hardware component with a newer version.
Warranty means the Manufacturer’s general warranty tied to the product at the time of purchase.
Wide Area Network (WAN) is a data network that serves users across a broad geographic area and often uses transmission devices provided by common carriers.
Term of the Master Agreement.
The initial term of this Master Agreement is for 2 years. This Master Agreement may be extended beyond the original contract period for 36 additional months at the Lead State’s discretion and by mutual agreement and upon review of requirements of Participating Entities, current market conditions, and Contractor performance.
The Master Agreement may be extended for a reasonable period of time if in the judgment of the Lead State a follow-on, competitive procurement will be unavoidably delayed (despite good faith efforts) beyond the planned date of execution of the follow-on master agreement. This subsection shall not be deemed to limit the authority of a Lead State under its state law otherwise to negotiate contract extensions.
Amendments.
The terms of this Master Agreement shall not be waived, altered, modified, supplemented or amended in any manner whatsoever without a written amendment to the Master Agreement executed by the Contractor and Lead State as required by law. Master Agreement amendments will be negotiated by the Lead State with the Contractor whenever necessary to address changes in the terms and conditions, costs, timetable, or increased or decreased scope of work.
Participants and Scope.
Canadian Participation. Subject to the approval of Contractor, any Canadian provincial government or provincially funded entity in Alberta, British Columbia, Manitoba, New Brunswick, Newfoundland and Labrador, DocuSign Envelope ID: 22C62BA3-AFF9-40A4-8FA3-F4D018802CC5 DocuSign Envelope ID: F019BE07-AEF0-4A14-B979-8BB85953FE52