EXHIBIT “B”
Schedule of Compensation
Year 1 (FY 2025-26) – $11,400
Year 2 (FY 2026-27) – $11,856
Year 3 (FY 2027-28) – $12,330
Total Compensation Shall Not Exceed - $35,586
SHOULD ANY OF THE ABOVE DESCRIBED POLICIES BE CANCELLED BEFORE
THE EXPIRATION DATE THEREOF, NOTICE WILL BE DELIVERED IN ACCORDANCE WITH THE POLICY PROVISIONS.
INSURER(S) AFFORDING COVERAGE
INSURER F :
INSURER E :
INSURER D :
INSURER C :
INSURER B :
INSURER A :
NAIC #
NAME:
CONTACT
(A/C, No):
FAX
E-MAIL
ADDRESS:
PRODUCER
(A/C, No, Ext):
PHONE
INSURED
REVISION NUMBER:CERTIFICATE NUMBER:COVERAGES
IMPORTANT: If the certificate holder is an ADDITIONAL INSURED, the policy(ies) must have ADDITIONAL INSURED provisions or be endorsed.
If SUBROGATION IS WAIVED, subject to the terms and conditions of the policy, certain policies may require an endorsement. A statement on this certificate does not confer rights to the certificate holder in lieu of such endorsement(s).
THIS CERTIFICATE IS ISSUED AS A MATTER OF INFORMATION ONLY AND CONFERS NO RIGHTS UPON THE CERTIFICATE HOLDER. THIS
CERTIFICATE DOES NOT AFFIRMATIVELY OR NEGATIVELY AMEND, EXTEND OR ALTER THE COVERAGE AFFORDED BY THE POLICIES BELOW. THIS CERTIFICATE OF INSURANCE DOES NOT CONSTITUTE A CONTRACT BETWEEN THE ISSUING INSURER(S), AUTHORIZED REPRESENTATIVE OR PRODUCER, AND THE CERTIFICATE HOLDER.
OTHER:
(Per accident)
(Ea accident)
$
$
N / A
SUBR
WVD
ADDL
INSD
THIS IS TO CERTIFY THAT THE POLICIES OF INSURANCE LISTED BELOW HAVE BEEN ISSUED TO THE INSURED NAMED ABOVE FOR THE POLICY PERIOD INDICATED. NOTWITHSTANDING ANY REQUIREMENT, TERM OR CONDITION OF ANY CONTRACT OR OTHER DOCUMENT WITH RESPECT TO WHICH THIS
CERTIFICATE MAY BE ISSUED OR MAY PERTAIN, THE INSURANCE AFFORDED BY THE POLICIES DESCRIBED HEREIN IS SUBJECT TO ALL THE TERMS, EXCLUSIONS AND CONDITIONS OF SUCH POLICIES. LIMITS SHOWN MAY HAVE BEEN REDUCED BY PAID CLAIMS. $ $
$
$PROPERTY DAMAGE
BODILY INJURY (Per accident)
BODILY INJURY (Per person)
COMBINED SINGLE LIMIT
AUTOS ONLY
AUTOSAUTOS ONLY
NON-OWNED
SCHEDULEDOWNED
ANY AUTO
AUTOMOBILE LIABILITY
Y / N
WORKERS COMPENSATION
AND EMPLOYERS' LIABILITY
OFFICER/MEMBER EXCLUDED?
(Mandatory in NH)
DESCRIPTION OF OPERATIONS below
If yes, describe under
ANY PROPRIETOR/PARTNER/EXECUTIVE
$
$
$
E.L. DISEASE - POLICY LIMIT
E.L. DISEASE - EA EMPLOYEE
E.L. EACH ACCIDENT
ER
OTH-
STATUTE
PER
LIMITS(MM/DD/YYYY)
POLICY EXP
(MM/DD/YYYY)
POLICY EFF
POLICY NUMBERTYPE OF INSURANCELTR
INSR
DESCRIPTION OF OPERATIONS / LOCATIONS / VEHICLES (ACORD 101, Additional Remarks Schedule, may be attached if more space is required)
EXCESS LIAB
UMBRELLA LIAB $EACH OCCURRENCE
$AGGREGATE
$
OCCUR
CLAIMS-MADE
DED RETENTION $
$PRODUCTS - COMP/OP AGG
$GENERAL AGGREGATE
$PERSONAL & ADV INJURY
$MED EXP (Any one person)
$EACH OCCURRENCE
DAMAGE TO RENTED
$PREMISES (Ea occurrence)
COMMERCIAL GENERAL LIABILITY
CLAIMS-MADE OCCUR
GEN'L AGGREGATE LIMIT APPLIES PER:
POLICY PRO-
JECT LOC
CERTIFICATE OF LIABILITY INSURANCE
DATE (MM/DD/YYYY)
CANCELLATION
AUTHORIZED REPRESENTATIVE
ACORD 25 (2016/03)
© 1988-2015 ACORD CORPORATION. All rights reserved.
CERTIFICATE HOLDER
The ACORD name and logo are registered marks of ACORD
HIRED
AUTOS ONLY
5/28/2025
Woodruff Sawyer
2 Park Plaza, Suite 500
Irvine CA 92614
WS Certificates
844-972-6326
[email protected]
Berkley National Insurance Company
38911
HDLCOMP-01
Hudson Excess Insurance Company
14484
Hinderliter de Llamas & Associates
HdL Software, LLC.
120 S. State College Blvd, Suite 200
Brea, CA 92821
472418518
A
X
1,000,000
X
1,000,000
15,000
1,000,000
2,000,000
X
Y
TCP702275412
5/26/2025
5/26/2026
2,000,000
A
1,000,000
X
Y
TCP702275412
5/26/2025
5/26/2026
A
X
X
5,000,000
TCP702275412
5/26/2025
5/26/2026
5,000,000
X
None
B
Cyber/Tech E&O/ Professional
Liability
EET1416703
5/26/2025
5/26/2026
Per Claim/Aggregate
Retention
$5,000,000
$50,000
Retroactive Date for Professional Liability- 2/15/2013.
Line Of Coverage: Crime
Policy # 82556901
Effective Date 5/26/2025 - 5/26/2026
Carrier: Federal Insurance Company NAIC # 20281
Crime Limit: $1,000,000
See Attached...
City of Montebello
1600 W. Beverly Blvd.
Montebello CA 90640
ACORD 101 (2008/01)
The ACORD name and logo are registered marks of ACORD
© 2008 ACORD CORPORATION. All rights reserved.
THIS ADDITIONAL REMARKS FORM IS A SCHEDULE TO ACORD FORM, FORM NUMBER: FORM TITLE:
ADDITIONAL REMARKS
ADDITIONAL REMARKS SCHEDULE Page of
AGENCY CUSTOMER ID:
LOC #:
AGENCY
CARRIER NAIC CODE
POLICY NUMBER
NAMED INSURED
EFFECTIVE DATE:
HDLCOMP-01
1 1
Woodruff Sawyer
Hinderliter de Llamas & Associates
HdL Software, LLC.
120 S. State College Blvd, Suite 200
Brea, CA 92821
25 CERTIFICATE OF LIABILITY INSURANCE
City of Montebello is included as additional insured as respects General Liability and Automobile Liability to the extent provided in the attached forms. Coverage is considered Primary and Non-contributory to the extent provided in the attached forms. Notice of Cancellation applies with respects General Liability to the extent provided in the attached form.
Policy Number: TCP702275412
Policy Number: TCP702275411
Policy Number: TCP702275411
Policy Number: TCP702275412
POLICY NUMBER: COMMERCIAL GENERAL LIABILITY
CG 02 24 10 93
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CG 02 24 10 93 Copyright, Insurance Services Office, Inc., 1992 Page 1 of 1 o o
EARLIER NOTICE OF CANCELLATION
PROVIDED BY US
This endorsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
LIQUOR LIABILITY COVERAGE PART
POLLUTION LIABILITY COVERAGE PART
PRODUCTS/COMPLETED OPERATIONS LIABILITY COVERAGE PART
SCHEDULE
Number of Days' Notice
(If no entry appears above, information required to complete this Schedule will be shown in the Declarations as applicable to this endorsement.)
For any statutorily permitted reason other than nonpayment of premium, the number of days required for notice of cancellation, as provided in paragraph 2. of either the CANCELLATION Common Policy Condition or as amended by an applicable state cancellation endorsement, is increased to the number of days shown in the Schedule above.
30 TCP702275412
City of Montebello
1600 W. Beverly Blvd.
Montebello
CA
90640
POLICY NUMBER: COMMERCIAL AUTO
CA 20 48 10 13
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CA 20 48 10 13 © Insuran
ce Services Office, Inc., 2011 Page 1 of 1
DESIGNATED INSURED FOR
COVERED AUTOS LIABILITY COVERAGE
This endorsem
ent modifies insurance provided under the following:
AUTO DEALERS COVERAGE FORM
BUSINESS AUTO COVERAGE FORM
MOTOR CARRIER COVERAGE FORM
With respect to coverage provided by this endorsemen t, the provisions of the Coverage Form apply unless modified by this endorsement.
This endorsement identifies person(s) or organization(s) who are "insureds" for Covered Autos Liability Coverage under the Who Is An Insured provision of the Cove rage Form. This endorsement does not alter coverage provided in the Coverage Form.
This endorsement changes the policy effective on the inception date of the policy unless another date is indicated below.
Named Insured:
Endorsement Effective Date:
SCHEDULE
Name Of
Person(s) Or Organization(s):
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
Each person or organi
zation shown in the Schedule is
an "insured" for Covered Autos Liability Coverage, but
only to the extent that person or organization qualifies as an "insured" under the Who Is An Insured
provision contained in Paragraph A.1. of Section II –
Covered Autos Liability Co verage in the Business
Auto and Motor Carrier Coverage Forms and
Paragraph D.2. of Section I – Covered Autos
Coverages of the Auto Dealers Coverage Form.
TCP702275412
Hinderliter de Llamas & Associates
05/26/2025
City of Montebello
1600 W. Beverly Blvd.
90640
CA
Montebello
CA 00 01 10 13
© Insurance Services Office, Inc., 2011 Page 9 of 12
4. Loss Payment – Physical Damage
Coverages
At our option, we may:
a. Pay for, repair or replace damaged or
stolen property;
b. Return the stolen property, at our expe nse.
We will pay for any damage that results to
the "auto" from the theft; or
c. Take all or any part of the damaged or
stolen property at an agreed or appraised
value.
If we pay for the "loss", our payment will
include the applicable sales tax for the
damaged or stolen property.
5. Transfer Of Rights Of Recovery Against
Others To Us
If any person or organization to or for whom we
make payment under this Coverage Form has
rights to recover damages from another, those
rights are transferred to us. That person or
organization must do everything necessary to
secure our rights and must do nothing after
"accident" or "loss" to impair them.
B. General
Conditions
1. Bank rup
tcy
Bankruptcy or insolvency of the "insured" or the
"insured's" estate will not relieve us of any
obligations under this Coverage Form.
2. Concealment, Misrepresentation Or Fraud
This Coverage Form is void in any case of
fraud by you at any time as it relates to this
Coverage Form. It is also void if you or any
other "insured", at any time, intentionally
conceals or misrepresents a material fact
concerning:
a. This Coverage Form;
b. The covered "auto";
c. Your interest in the covered "auto"; or
d. A claim under this Coverage Form.
3. Liberalization
If we revise this Coverage Form to provide
more coverage without additional premium
charge, your policy will automatically provide
the additional coverage as of the day the
revision is effective in your state.
4. No Benefit To Bailee – Physical Damage
Coverages
We will not recognize any assignment or grant
any coverage for the benefit of any person or
organization holding, storing or transporting
property for a fee regardless of an y other
provision of this Coverage Form.
5. Other Insurance
a. For any covered "auto" you own, this
Coverage Form provides primary
insurance. For any covered "auto" you don't
own, the insurance provided by this
Coverage Form is excess over any other
collectible insurance. However, while a
covered "auto" which is a "trailer" is
connected to another vehicle, the Covered
Autos Liability Coverage this Coverage
Form provides for the "trailer" is:
(1) Excess while it is connected to a motor
vehicle you do not own; or
(2) Primary while it is connected to a
covered "auto" you own.
b. For Hired Auto Physical Damage Coverage,
any covered "auto" you lease, hire, rent or
borrow is deemed to be a covered "auto"
you own. However, any "auto" that is
leased, hired, rented or borrowed with a
driver is not a covered "auto".
c. Regardless of the provisions of Paragraph
a. above, this Coverage Form's Covered
Autos Liability Coverage is primary for any
liability assumed under an "insured
contract".
d. When this Coverage Form and any other
Coverage Form or policy covers on the
same basis, either excess or primary, we
will pay only our share. Our share is the
proportion that the Limit of Insurance of our
Coverage Form bears to the total of the
limits of all the Coverage Forms and
policies covering on the same basis.
6. Premium Audit
a. The estimated premium for this Coverage
Form is based on the exposures you told us
you would have when this policy began. We
will compute the final premium due when
we determine your actual exposures. The
estimated total premium will be credited
against the final premium due and the first
Named Insured will be billed for the
balance, if any. The due date for the final
premiu
m or retrospective premium is the
date shown as the due date on the bill. If
the estimated total premium exceeds the
final premium due, the first Named Insured
will get a refund.
b. If this policy is issued for more than one
year, the premium for this Coverage Form
will be computed annua lly based on our
rates or premiums in effect at the beginning
of each year of the policy.
Policy No: TCP702275412
POLICY NUMBER: COMMERCIAL GENERAL LIABILITY
CG 20 26 12 19
THIS ENDORSEMENT CHANGES THE POLICY. PLEASE READ IT CAREFULLY.
CG 20 26 12
19 © Insurance Services Office, Inc., 2018 Page 1 of 1 ADDITIONAL INSURED – DESIGNATED
PERSON OR ORGANIZATION
This endo
rsement modifies insurance provided under the following:
COMMERCIAL GENERAL LIABILITY COVERAGE PART
SCHEDULE
Name Of Additional Insured Person(s) Or Organization(s):
Information required to complete this Schedule, if not shown above, will be shown in the Declarations.
A. Section
II – Who Is An Insured is amended to
include as an additional insured the person(s) or
organization(s) shown in the Schedule, but only
with respect to liability for "bodily injury", "property damage" or "personal and advertising injury"
caused, in whole or in part, by your acts or
omissions or the acts or omissions of those acting
on your behalf:
1 .In the performance of your ongoing operations;
or
2 .In connection with your premises owned by or
rented to you.
However:
1 .The insurance afforded to such additional
insured only applies to the extent permitted by
law; and
2 .If coverage provided to the additional insured is
required by a contract or agreement, the
insurance afforded to such additional insured
will not be broader than that which you are
required by the contract or agreement to
provide for such additional insured.
B. With respect to the insurance afforded to these
additional insureds, the following is added to
Section III – Limits Of Insurance:
If coverage provided to the additional insured i s
required by a contract or agreement, the most we
will pay on behalf of the additional insured is the
amount of insurance:
1 .Required by the contract or agreement; or
2 .Available under the applicable limits of
insurance;
whichever is less.
This endorsement shall not increase the
applicable limits of insurance.
TCP702275412
City of Montebello
1600 W. Beverly Blvd.
90640
CA
Montebello
ITEM # 10
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 OF ONE (1) ZERO-EMISSIONS VEHICLE FOR
THE PLANNING AND COMMUNITY DEVELOPMENT DEPARTMENT
UTILIZING SOUTH COAST AIR QUALITY MANAGEMENT DISTRICT
(AQMD) FUNDING
DATE: January 14, 2026
RECOMMENDATIONS:
It is recommended that the City Council:
1. Approve purchase of one (1) vehicle for the Planning and Community Development Department using AQMD funds; and,
2. Approve purchase of this vehicle utilizing the exemption in Montebello Municipal Code Section 3.20.050(D) since the acquisition of this vehicle 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 Parking Enforcement Division; and
3. Authorize the City Manager to execute all necessary documents related to the vehicle purchase; and,
4. Amend the Fiscal Year 2025-26 budget by increasing appropriations by $63,000 in Account No. 245-99-6082 (Air Quality Management District, Vehicle Purchases); and
5. 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,
6. Take such additional, related action that may be desirable.
FISCAL IMPACT:
The total cost for the purchase of one (1) 2025 F-150 Lightning Truck will not exceed
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
$62,856 (Attachment A). 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. The recommended actions require amending the Fiscal Year 2025-26 budget by increasing appropriations by $63,000 in Account No. 245-99-6082 (Air Quality Management District, Vehicle Purchases).
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 for the Parking Enforcement Division. This new unit will replace an aging, high-maintenance vehicle.
Given the critical operational needs for reliable Code Enforcement/Parking Enforcement vehicles, and the significant lead time currently needed to secure vehicles of any type, staff recommend proceeding outside the City’s standard 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 this vehicle before costs increase substantially.
Staff is recommending the procurement of one (1) vehicle 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 F-150 Lightning Truck is immediately available at Ford of Montebello (Attachment A). Procuring the F-150 Lighting from a local dealer allows 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 Parking Enforcement Division, within the Planning and Community Development Department, is responsible for conducting daily patrols, enforcing parking regulations, responding to residential complaints, and ensuring compliance with citywide parking ordinances. These duties require staff to be in the field for extended periods throughout the week, traveling between various locations with safety protective gear, citation materials, documentation tools, and field equipment necessary to monitor and regulate parking activity.
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
These duties are performed by three (3) Parking Control Officers who utilize two (2) 2018 Chevrolet Colorado trucks. The vehicles are shared among staff to maximize coverage and effectively meet community needs.
Currently, staff has relied heavily on these Chevrolet Colorados, one of which has exceeded its useful service life. Due to high mileage and recurring mechanical issues, this vehicle has become increasingly unreliable, resulting in rising maintenance costs.
Repair expenses have significantly increased over the past year, and frequent downtime has created operational challenges for the department. With the division fully staffed, vehicle availability and dependability are paramount for efficiency in serving the community’s needs.
To address these operational challenges, staff recommend replacing one (1) of the Chevrolet Colorados with a new vehicle. The additional vehicle is necessary to support the expanded staff and growing operational demands, ensuring that each Parking Enforcement Officer has reliable, dedicated transportation to perform their duties effectively while also acknowledging the need for functional air conditioning and heating when the climates change.
Staff confirmed that the above-referenced vehicle meets 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 one (1) new vehicle to replace a 2018 Chevrolet Colorado Truck to support the Parking Enforcement Division. The vehicle selected—a 2025 F-150 Lightning Truck zero-emission model—meets the operational needs of the division while complying with the Air Quality Management District (AQMD) program requirements. The total cost of the vehicle of $62,856 will be fully funded through the AQMD Fund. The recommended actions require amending the Fiscal Year 2025-26
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
budget by increasing appropriations by $63,000 in Account No. 245-99-6082 (Air Quality Management District, Vehicle Purchases).
This purchase will enhance staff efficiency, reduce ongoing maintenance expenses, and 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 - FORD VEHICLE QUOTE
ATTACHMENT A
ITEM # 11
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: Michael Solorza, Director of Finance
SUBJECT: WAIVE SECOND READING AND ADOPT ORDINANCE NO. 2486 AMENDING MONTEBELLO MUNICIPAL CODE CHAPTER 5.08, TITLE
5 DEALING WITH BUSINESS LICENSES AND REGULATIONS TO LIFT THE TEMPORARY MORATORIUM ENACTED ON MARCH 24, 2021
DATE: January 14, 2026
RECOMMENDATIONS:
It is recommended that the City Council:
1. Waive the Second Reading and Adopt Ordinance No. 2486 Amending Sections
5.08.010, 5.08.020, 5.08.030, 5.08.050 and 5.08.060 of Chapter 5.08, Title 5 (Business Licenses and Regulations) of the Montebello Municipal Code; and,
2. Take such additional, related action that may be desirable.
FISCAL IMPACT:
The City requires a business license for all operating businesses within the City, per Chapter 5.08, Title 5 of the City’s municipal code. The license is utilized to ensure all businesses are operating per the City’s municipal code requirements – meeting various Fire, Planning and Building Safety standards.
The City has utilized HdL Companies to effectively manage the business license program since October, 2020. The transition to HdL provided improved customer service to the City’s business community, and has resulted in increased adherence to the City’s municipal code, ensuring all businesses are operating safely, legally and in the best interests of our residents and the community.
In addition to improved adherence to the municipal code, revenue from the annual business license fee has increased in the five years HDL Companies has administered
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
business license functions. The table below shows actual revenue since 2016 through projections for the current fiscal year:
It should be noted that this revenue was essentially flat prior to FY 2020-21, averaging $2.358 million per year. Since HDL took over administration, the average annual amount of revenue received has been $2.853 million (FY 2020-21 – FY 2024-25, actuals). This increase to annual revenue has occurred even as the fees/rate charged have remained unchanged since 2009.
The improved management has increased equity across the business community, ensuring all operating businesses are in possession of a current and valid business license, per the municipal code. This General Fund revenue generated helps offset costs for Code Enforcement, Fire Prevention, Building Safety and other functions directly associated with ensuring Montebello businesses are operating per code.
It is this improved management, coupled with recovery of business license fees from operations found to be operating without a license, which has increased revenue. There have been no changes to the amounts charged for various types of business licenses or the amounts assessed on gross receipts, with all fees frozen at 2009 amounts.
In October 2020, with the transition to HdL, it was discovered that the required annual consumer price index (CPI) adjustment to business license fee amounts was suspended on June 24, 2009, for the period of FY 2009-10 only (per Ordinance No. 2331). This temporary suspension of the CPI adjustment expired on June 30, 2010, with the business license fee amounts to be increased by the change in CPI from June 2009 to June 2010, and annually thereafter. This adjustment never happened, even though it was required by the municipal code with the expiration of Ordinance No. 2331. Staff discovered the adjustment did not occur, and business license fee amounts remain frozen at 2009 levels.
Local businesses have benefited from the City’s oversight in applying the annual required inflationary increase, benefiting from lower fees which have been held constant at 2009 levels. If the annual CPI increase had been implemented beginning July 1, 2010, business license fees would be 52.1% higher than what is currently being assessed. Local businesses have saved an estimated, cumulative $3.305 million over the fifteen year period by the City holding fees at 2009 levels. That is, the City’s General Fund should have received more than three million dollars in revenue since 2010, which would have helped close budget gaps and bolster the City’s reserves.
As discussed in detail below, the ordinance update (Attachment A) would remove the sections of Montebello Municipal Code Chapter 5.08 that suspended the CPI increase and set a cap on the rate assessed for large businesses having gross receipts over $1.0
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
million. The annual CPI increase would not be implemented until July 1, 2026, adjusting the current 2009 fee amounts by the CPI change from 2025 to 2026. Businesses would continue to benefit from the lower fee amounts since the CPI adjustment will be made on the 2009 base amounts.
Therefore, Ordinance No. 2486 (Attachment A) would accomplish two primary goals: 1) allow the City to begin adjusting fees annually by the change in CPI as required by the Municipal Code, which will provide additional revenue to the General Fund that offsets the costs of administering the business license program (i.e., Police, Fire, Code Enforcement, etc.); and, 2) create a more equitable tax structure by eliminating a cap on gross receipts put in place in 2009 that unfairly benefits large business operations (i.e., those with over $1.0 million in gross receipts) compared to smaller retail businesses.
BACKGROUND/DISCUSSION:
The City of Montebello’s Municipal Code includes Title 5, Chapter 5.08 which regulates Business License Taxes and establishes regulations to ensure all entities conducting business within the City are doing so lawfully and according to all applicable City, County and State regulations. Chapter 5.08 allows for the levy of a business license tax for regulatory and revenue purposes. The Chapter outlines the rates charged for the various types and sizes of businesses in Montebello (Attachment A).
The revenue received from these fees, projected to be $3.125 million in FY 2025-26, offsets the cost of Code Enforcement, Police, Fire and other Departments, which play a part in administering the City’s business license program and ensuring all businesses in Montebello are operating legally and safely. Businesses are required to renew annually, and new businesses must register. Depending on the type of business, staff from Fire, Police, Code Enforcement, Planning, Building and Finance perform document review and location inspection duties in order to ensure all businesses are conforming to required regulations. This work is done throughout the year, and involves numerous staff and resources.
The City utilizes HdL’s full-service business license administration program, allowing local businesses the opportunity to submit all required paperwork and payments electronically. The service also provides dedicated customer support to assist Montebello businesses with keeping their licenses current. Utilizing HdL Companies has allowed the City to vastly improve the customer service provided to local businesses.
Chapter 5.08 also outlines the annual process by which the business license fees are increased, based on the annual change to the Consumer Price Index (CPI, Los Angeles- Riverside-Orange County area). This is an automatic process that allows for the fees charged to keep pace with rising administrative costs while also providing for a reasonable regulatory mechanism.
On June 24, 2009, the City Council adopted Ordinance No. 2331, which was meant to temporarily suspend a portion of certain business license taxes for one year only: July 1, 2009 through June 30, 2010. The operative period of Ordinance No. 2331 expired, and the impacted fees should have been increased by the annual change in CPI as of
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
July 1, 2010, and in each subsequent fiscal year after. However, this did not occur, and as such, fees have been assessed at the 2009 levels for the past fifteen (15) years. The ordinance (Attachment A) would remove the suspension of the annual CPI increase beginning July 1, 2026. The CPI adjustment would be applied to the current, 2009 fee levels.
The estimated loss in General Fund revenue over the fifteen year period from not applying the required CPI adjustment is approximately $3.305 million. That is, the City’s General Fund should have received more than three million in revenue, which would have helped close budget gaps and bolster the City’s reserves over the last fifteen years.
At the February 24, 2021 regular City Council meeting, Staff was directed to maintain all business license fee amounts at their Fiscal Year 2009-10 levels. In addition, staff was directed to conduct a study of business license fees and applicable municipal code language. The motion to maintain the 2009 temporary moratorium was thereafter memorialized by a resolution approved on March 24, 2021. Fees have been held at the 2009 levels since then.
Staff then worked with HdL Companies on a Business Tax Analysis and Ordinance Review, as directed by the City Council. The study found the City’s current tax structure unintentionally places a heavier burden on small businesses in Montebello. This is primarily due to the fact that Ordinance No. 2331 approved in 2009 placed an arbitrary cap on the amount of gross receipts to which the business license tax is applied. The study found that a neighboring City with 1,000 fewer business – without such a cap – saw greater revenue returns ($500,000) from the more equitable tax structure. Moreover, some of Montebello's smaller businesses have the same tax burden as larger businesses, which produce tens of millions in annual gross receipts. This inequity must be resolved, and the ordinance update accomplishes that.
The proposed Ordinance No. 2486 (Attachment A) amending Chapter 5.08 (Sections
5.08.010, 5.08.020, 5.08.030, .050 and .060) would remove the suspension language placed by City Council action in 2009 – allowing for annual CPI adjustments beginning July 1, 2026. The proposed ordinance would also remove the arbitrary cap on the amount owed by businesses reporting more than $1.0 million in gross receipts. Removal of this cap would help restore balance and equity to the City’s business license program. Now, a multi-million dollar business would not be paying the same as smaller, local “mom and pop” retail establishments.
Staff will work with the City’s Public Affairs office and HdL to ensure proper notification of this ordinance change is made on the City’s social media and related outlets, as well as through business license renewal notices. With the increased rates beginning July, 2026, sufficient time exists for Staff to publicize these changes and work with the business community. In addition, since business license renewal occurs on an anniversary date, only a portion of all businesses in Montebello will be impacted in July, with additional businesses seeing the change through the following eleven months as renewal dates arrive.
On November 12, 2025, the City Council introduced and approved the first reading of
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
Ordinance No. 2486.
ENVIRONMENTAL:
N/A
ANALYSIS:
N/A
SUMMARY:
It is recommended that the City Council adopt Ordinance No. 2486 amending Title 5, Chapter 5.08 of the City’s municipal code (Attachment A) to restore the annual CPI increase per the municipal code to be effective July 1, 2026, and each subsequent year thereafter and remove the cap on fees paid for businesses reporting more than $1.0 million in gross receipts.
ATTACHMENT(S)
1. Attachment A - Ordinance No. 2486
ATTACHMENT A
ORDINANCE NO. 2486
AN ORDINANCE OF THE CITY OF MONTEBELLO, CALIFORNIA
AMENDING SECTIONS 5.08.010, 5.08.020, 5.08.030, 5.08.050, AND
5.08.060 OF CHAPTER 5.08 (BUSINESS LICENSE TAXES), TITLE 5 (BUSINESS LICENSES AND REGULATIONS) OF THE MONTEBELLO
MUNICIPAL CODE
WHEREAS, pursuant to California Government Code section 37101 and California Business and Professions Code Section 16000, et seq., a general law city may levy business license taxes for revenue purposes and business license fees for regulatory purposes; and
WHEREAS, on June 24, 2009, the City adopted Ordinance No. 2331 temporarily reducing and suspending a portion of certain business license taxes during the period of July 1, 2009 through June 30, 2010; and
WHEREAS, since that temporary suspension in 2010, the City has not restored nor increased the business license tax by the consumer price index for the designated businesses, occupations and professions operated within the City and subject to the business license tax as required under Chapter 5.08 (Business License Taxes), Title 5 (Business Licenses and Regulations) of the Montebello Municipal Code (“MMC”); and
WHEREAS, on October 5, 2020, as authorized by the MMC, a business license tax increase was implemented for the period of October 5, 2020 through and including June 30, 2021, restoring the tax to pre-Ordinance No. 2331 levels, plus CPI increases, to bring the tax to a level which is in line with the latest available consumer price index and abides by those specific sections of Chapter 5.08 of the Montebello Municipal Code (“MMC”); and
WHEREAS, on February 24, 2021, the City Council (“City Council”) of the City of Montebello conducted a regularly scheduled meeting to consider a proposed ordinance establishing a temporary moratorium on increases to the City’s business license fees and incrementing applicable sections of the MMC due to the negative economic effect on businesses brought on by the mandates imposed by the state and local orders to counteract the threat to public health by the novel Coronavirus ("COVID-19"); and
WHEREAS, February 24, 2021 on a 5-0 vote, the City Council passed an alternative motion to return all business license fee amounts to their Fiscal Year 2009-10 levels until a study of the City’s business license fees was conducted and analyzed (the motion was thereafter memorialized by a resolution on March 24, 2021); and
WHEREAS, now that the City has conducted a fee study in accordance with City Council’s direction, the City’s intent is to adopt this Ordinance to accomplish the following goals: 1) provide continued relief to rental property owners by holding base fee amounts at 2009 levels, 2) allow the City to begin adjusting fees annually by the change in CPI,
ORDINANCE NO. 2486
which will provide additional revenue to the General Fund that offsets costs of administering the business license program (i.e., Police, Fire, Code Enforcement, etc.); and, 3) create a more equitable tax structure by eliminating a cap on gross receipts put in place in 2009 that unfairly benefits large business operations over smaller retail businesses; and
WHEREAS, all other legal prerequisites to the adoption of this Ordinance have occurred.
NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY ORDAINS AS FOLLOWS:
SECTION 1. RECITALS. The foregoing recitals are true and correct and are hereby incorporated as substantive findings of this Ordinance.
SECTION 2. AMENDMENTS; RESERVATION. Sections 5.08.010, 5.08.020,
5.08.030, 5.08.050, and 5.08.060 are amended to read as follows (deletions in Strikethrough and additions in Underline.
5.08.010 Designated.
A. The following businesses, occupations and professions shall be required to pay, as and for business license taxes, the amounts hereinafter set forth in this section, pertaining thereto:
1. Advertising vehicle: Fifty-one dollars and thirty-three cents per vehicle, per day;
2. Rental of real property: Residential property, excluding condominiums, having an apartment house (as defined in Chapter 17.08 of this code) located thereon, with three or more dwelling units therein: five hundred fifteen dollars and twenty-two zero cents per year and one hundred seventy-one dollars and seventy- four zero cents per year for each additional unit;
3. Auctions: One hundred fifty-two dollars per day unless conducted as an integral part of a business otherwise licensed hereunder;
4. Business by vehicle:
a. Refuse trucks: Six hundred seventy-six dollars and ten cents per year for each vehicle;
b. All others: One hundred forty-seven dollars and seven cents per year per vehicle;
5. Contractors: Seventy-three dollars and four cents per quarter, two hundred ninety-two dollars and sixteen cents per year;
6. Junk dealer, automobile or truck dismantler: Five hundred sixty-eight dollars and fifty-two cents per year;
7. Outdoor advertising signs:
a. Outdoor advertising on signs: Two hundred eighty-four dollars and twenty-six cents per year (plus twenty-two dollars and seventy-one cents per year for each sign in excess of ten);
ORDINANCE NO. 2486
b. Advertising on benches: Two hundred eighty-four dollars and twenty- six cents per year (plus twenty-two dollars and seventy-one cents per year for each sign in excess of ten) (excluding benches which contain no advertising);
8. Peddler, solicitor, or itinerant vendor: Two hundred eighty-four dollars and twenty-six cents per year;
9. Public dump: One thousand three hundred thirty-eight dollars and thirty- eight cents per month or two percent of the gross receipts derived therefrom, whichever is greater;
10. The activities for which a temporary use permit is required hereunder pursuant to Chapter 12.16 of this code, shall pay the following taxes:
a. Circuses, per day
Per mechanical ride
$165.82
50.34 b. Parades per day 130.29
c. Carnivals per day
Per mechanical ride
165.82
50.34 d. Fairs, per event 130.29
e. Temporary outdoor exhibits per
day
Montebello businesses exempt
130.29
f. Tents, per event (if over 20 × 20)
Montebello businesses, per event
130.29
70.08 g. Aircraft and helicopter landings
and demonstrations per day
130.29
h. Public demonstration of
gatherings of more than 25 people,
per day
165.82
i. Christmas trees/pumpkin patch
sales, per year
130.29
j. Moving and/or estate sales, per
day
30.60 k. Filming, per day 165.82
11. Dance permit: Every person who is required to obtain a dance permit for a public dance or cabaret dance pursuant to Chapter 5.32 of this code, shall pay a business license tax as follows:
a. Public dance: One hundred thirty-six dollars and twenty-one cents per day for each day and for each location at which such dance is conducted,
b. Cabaret, per year: Two thousand three hundred forty-four dollars and thirteen cents per year for each location at which such dance is conducted;
12. Pool or billiard rooms or halls: The rate of license fees for billiard rooms or halls and pool rooms shall be forty-three dollars and forty-three cents for each billiard, pool or snooker table per year;
ORDINANCE NO. 2486
13. Oil well operator: A tax equal to $.3329 per barrel of oil produced from wells owned or operated by such person located within the city;
14. Shoe shine stands: Fifty-one dollars and thirty-three cents per year;
15. Vending machines: Every individual or firm whose business is limited exclusively to renting, leasing or operating coin-operated vending machines dispensing tangible personal property, shall pay a tax based on the entire gross receipts which are directly attributable to the business activities conducted within the city, and no minimum license tax shall be imposed upon any business location, nor shall such license tax be measured by the number of business locations or machines of the taxpayer within the city. The city may demand an audit of any such licensee and require him or her to submit a copy of the state sales and use tax return filed relative to such machines;
16. Child care center (as defined in Chapter 17.08 of this code) nine children and more: Fifty-one dollars and thirty-three cents per year;
17. Mechanical amusement device or amusement game machine: One hundred seventy-two dollars and seventy-three cents per device or machine per year;
18. Fortune telling, as regulated and defined in Chapter 5.44 of this code: Seven hundred eighty-eight dollars and sixty-two cents.
B. Except where otherwise stated, the tax imposed by this section shall be increased or decreased annually as of July 1st of each calendar year, commencing on July 1, 2026 1979, in an amount equal to the increase or decrease from the base index in the then latest available consumer price index, as prepared and released by the U.S. Department of Labor, Bureau of Statistics, for the Los Angeles-Riverside-Orange County area. The last index published for the month of June 2009 1978 shall be deemed to be the base index for the purpose of this section.
5.08.020 Additional tax based on gross receipts.
A. Each person engaged in a business, occupation or profession, in addition to the business license taxes imposed by Section 5.08.010, shall pay a business license tax based upon the annual gross receipts of such business, occupation or profession for the preceding calendar year, in accordance with the following schedule, plus eighty cents per one thousand dollars or fractional part thereof over one million dollars of all gross receipts:
Over To and Including Fee
$ 0 $ 25,000 $ 133.25
25,001 50,000 154.96
50,001 100,000 210.24
100,001 150,000 260.57
150,001 200,000 311.90
200,001 300,000 362.23
300,001 400,000 414.54
400,001 600,000 520.15
ORDINANCE NO. 2486
600,001 800,000 691.89
800,001 1,000,000 1,038.33
1,000,001 Over 1,380.82
B. The taxes imposed by this section shall be increased or decreased annually as of July 1st of each calendar year, commencing on July 1, 1979 2026, in an amount equal to the increase or decrease from the base index in the then latest available consumer price index, as prepared and released by the U.S. Department of Labor, Bureau of Statistics, for the Los Angeles-Riverside-Orange County area.
The last index published for the month of June 1978 2009 shall be deemed to be the base index for the purpose of this section.
5.08.030 RESERVED. Suspension of a portion of certain business license taxes.
A. Notwithstanding the provisions of Section 5.08.010(A)(2) of this code, during the period July 1, 2009 through and including June 30, 2010, the business license tax to be collected pursuant to that subsection, shall not exceed the following:
Residential property, excluding
condominiums having an apartment
house (as defined in Chapter
17.08 hereof) located thereon, with three
or more dwelling units therein.
$150.00 per year,
plus $50.00 for
each additional
unit over three
B. That during such time as this section of the Montebello Municipal Code is in effect, the amount of the business license tax imposed by said Section 5.08.010(A)(2) contrary to the amount above set forth, shall be suspended, and shall not be collected.
5.08.050 RESERVED. Suspension of a portion of certain business license taxes.
A. Notwithstanding the provisions of Section 5.08.010(A)(17) of this code, during the period July 1, 2009, through and including June 30, 2010, the business license tax to be collected pursuant to that said subdivision, from persons engaged in the business of mechanical amusement devices or amusement game machines, shall not exceed the following:
Mechanical amusement device or amusement game machine: fifty-four dollars per device or machine per year.
B. That during such time as this section of the Montebello Municipal Code is in effect, the amount of the business license tax imposed by said Section 5.08.010(A)(17) contrary to the amount above set forth, shall be suspended, and shall not be collected.
5.08.060 RESERVED. Suspension of a portion of certain business license taxes.
A. Notwithstanding the provisions of Section 5.08.020 of this code during the period of July 1, 2009, through and including June 30, 2010, the business license tax to be collected pursuant to that said section shall not exceed the following:
ORDINANCE NO. 2486
Each person engaged in a business, occupation or profession, in addition to the business license taxes imposed by Section 5.08.010 hereof, shall pay a business license tax based upon the annual gross receipts of such business, occupation or profession for the following schedule, plus forty-six cents per one thousand dollars or fractional part thereof over one million dollars of all annual gross receipts to five million dollars, and thirty-five cents per one thousand dollars or fractional part thereof over five million dollars, with the maximum not to exceed nine thousand three hundred seventy-six dollars.
Over To and Including Fee
$ 0 $ 25,000 $ 124.00
25,001 50,000 142.00
50,001 100,000 192.00
100,001 150,000 240.00
150,001 200,000 289.00
200,001 300,000 336.00
300,001 400,000 384.00
400,001 600,000 480.00
600,001 800,000 640.00
800,001 1,000,000 961.00
1,000,001 Over 1,324.00
B. That during such time as this section of the Montebello Municipal Code is in effect, the amount of the business license tax based on gross receipts imposed by said Section
5.08.020, contrary to the amount above set forth, shall be suspended, and shall not be collected.
SECTION 3. CEQA. The adoption of this Ordinance is not subject to California Environmental Quality Act (CEQA) because CEQA Guidelines section 15060(c)(2) states that a project is not subject to CEQA review where the activity will not result in a direct or reasonably foreseeable indirect physical change to the environment and is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3) which states that a project is exempt from CEQA “where it can be seen with certainty that there is no possibility that the activity in question may have a significant effect on the environment.” The approval of this Ordinance will not result in a direct or reasonably foreseeable indirect physical change to the environment and there is no possibility that the approval of this Ordinance will have a significant effect on the environment.
SECTION 4. CONSTRUCTION. This Ordinance must be broadly construed in order to achieve the purposes stated in this Ordinance. It is the City Council’s intent that the provisions of this Ordinance be interpreted or implemented by the City and others in a manner that facilitates the purposes set forth in this Ordinance.
SECTION 5. SEVERABILITY. If any section, subsection, sentence, clause, or phrase of this Ordinance is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the
ORDINANCE NO. 2486
validity of the remaining portions of this Ordinance. The City Council hereby declares that it would have passed this Ordinance, and each and every section, subsection, sentence, clause, or phrase not declared invalid or unconstitutional without regard to whether any portion of the Ordinance would be subsequently declared invalid or unconstitutional.
SECTION 6. EFFECT. If This Ordinance shall become effective thirty (30) days after its adoption.
SECTION 7. FILING. The City Clerk shall certify to the passage and adoption of this Ordinance, shall enter the same in the book of original ordinances of the City and shall make a minute of the passage and adoption thereof in the records of the meeting at which the same is passed and adopted. Before the expiration of the fifteenth (15) days after the passage of this Ordinance, the City Clerk shall cause the same to be posted in three (3) public places within the City of Montebello in a manner required by law.
PASSED, APPROVED, AND ADOPTED THIS 14 TH DAY OF JANUARY 2026.
______________________________
Georgina Tamayo, Mayor
ATTEST:
____________________________
Christopher Jimenez, City Clerk
APPROVED AS TO FORM:
_______________________________
Arnold M. Alvarez-Glasman, City Attorney
I HEREBY CERTIFY that the foregoing Ordinance was introduced at the regular meeting of the City Council on the 12 th day of November 2025, and was adopted by the City Council of the City of Montebello at its meeting held on the 14 th day of January 2026, by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_______________________________
Christopher Jimenez, City Clerk
ITEM # 12
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: Luis Lopez, Police Chief
SUBJECT: APPROVE AMENDMENT NO. 1 TO PROFESSIONAL SERVICES AGREEMENT NO. 4001 WITH ALLTECH INDUSTRIES INC. FOR THE
PROVISION OF CROSSING GUARD SERVICES
DATE: January 14, 2026
RECOMMENDATIONS:
It is recommended that the City Council:
1. Approve Amendment No. 1 to Professional Services Agreement No. 4001 with Alltech Industries, Inc. for the provision of Crossing Guard Services; and
2. Authorize the City Manager to execute the Amendment to the Agreement on behalf of the City; and
3. Take such additional, related action that may be desirable.
FISCAL IMPACT:
The pricing in Agreement No. 4001 is based upon the provision of five (5) crossing guards compensated for an average of three (3) hours per day, for 180 school days annually. The annual not to exceed amount for Fiscal Year 2025-26 is $81,000. Funds for crossing guard services are currently budgeted in the Police Department’s Fiscal Year 2025-26 budget (Account No. 100-80-810-6040.10, General Fund, Police, Traffic, Other Contract Services). Therefore, no budget amendment is required as part of the recommended actions. It should be noted that Montebello Unified School District (MUSD) reimburses the City for ten percent (10%) of the expenses related to this agreement.
BACKGROUND/DISCUSSION:
The Montebello Police Department released a Request for Proposal (RFP No. 22-9) on May 12, 2022 for crossing guard services. The RFP asked for providing all labor for crossing guard services at five (5) locations for three (3) hours a day, for one hundred and eighty days a year (180).
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
Consistent with the Municipal Code and procurement policies, the RFP was posted on www.PlanetBids.com and on the City’s website. The RFP included detailed information on the services needed, the scope of work, the proposal submission process, closing date and time, and other applicable submittal requirements.
On June 22, 2022, the City executed an agreement with Alltech Industries Inc. for Crossing Guard services at an annual amount not to exceed $81,000 for an initial three- year term. Due to their satisfactory performance, Staff is recommending the City Council exercise the one-year term extension option under Section 2 of Agreement No. 4001 (Attachment B), extending the term to June 30, 2026.
ENVIRONMENTAL:
N/A
ANALYSIS:
Due to the term date of the proposed amendment, staff will request authorization to issue a Request for Proposals (RFP) for Crossing Guard Services at a subsequent City Council meeting. Upon receipt and evaluation of proposals, staff will return to City Council at a future date to recommend award of an agreement. Depending on the terms and costs of the agreement awarded, staff will recommend a budget amendment if service costs differ from current expenditures. Amendment No. 1 (Attachment A) allows for the continuance of crossing guard services through the current school year.
The purpose of the future RFP will be to solicit proposals from qualified vendors to provide comprehensive crossing guard services. The scope of work includes the provision of crossing guard services at five (5) designated locations for approximately three (3) hours per day and encompasses all required duties, responsibilities, supervision, training, equipment, and compliance with applicable regulations necessary to fully perform the services.
SUMMARY:
Staff recommend that the City Council approve Amendment No. 1 (Attachment A) to Agreement No. 4001 with Alltech Industries, Inc. for crossing guard services through June 30, 2026. Upon City Council approval, staff will proceed with the recommended actions.
ATTACHMENT(S)
1. Attachment A - Alltech Industries Agr. No. 4001 Amendment No. 1
2. Attachment B - Agr. No. 4001 - Alltech Industries
ATTACHMENT A
CITY OF MONTEBELLO
AMENDMENT NO. 1
TO PROFESSIONAL SERVICES AGREEMENT NO. 4001
WITH ALLTECH INDUSTRIES, INC.
This Amendment No. 1 to the Professional Services Agreement No. 4001 (“Amendment No. 1”), is made and entered into this 14th day of January, 2026 (“Effective Date”) by and between the City of Montebello , a California municipal corporation, (hereinafter referred to as the “City”) and ALLTECH INDUSTRIES, INC. (hereinafter referred to as the “CONSULTANT”). The City and the Contractor are sometimes hereinafter individually referred to as a "Party" and jointly as the "Parties".
RECITALS
WHEREAS, the CONSULTANT and the CITY entered into that certain Agreement to retain a qualified professional consultant to provide crossing guard services for the CITY, dated July 1, 2022 ("Agreement");; and
WHEREAS, the CITY awarded the Agreement to CONSULTANT based on their education, experience, expertise, and training; and
WHEREAS, Section 25 (“Entire Agreement”) of the Agreement allows for amendments to the Agreement by a writing executed by the Parties; and
WHEREAS, the Parties desire to exercise the first of the provided two (2), one (1) year term extensions (expiring June 30, 2026) set forth in Section 3 of the Agreement; and
WHEREAS, the Parties desire to increase the maximum compensation allowable under the Agreement, attached hereto as Exhibit “B-1” and incorporated into the Agreement by this Amendment No. 1; and
WHEREAS, for the reasons set forth herein, the CITY and CONSULTANT desire to enter into this Amendment No. 1, as set forth below.
NOW THEREFORE, in consideration of the mutual promises and covenants contained herein, the receipt adequacy of which is expressly acknowledged by the Parties, the Parties agree to amend the Agreement as follows:
AMENDMENTS
SECTION 1. RECITALS. The above-referenced Recitals constitute a material part hereof and shall hereby be incorporated by reference.
SECTION 2. RATE SCHEDULE. The Agreement shall be amended to include the updated rate schedules attached as Exhibit “B-1” to this Amendment No. 1.
AMENDMENT NO. 1 TO AGREEMENT NO. 4001
SECTION 3. EXTENSION OF TERM. Section 3(a) of the Agreement is hereby amended in its entirety to read as follows:
“This Agreement shall commence upon issuance of a written “Notice to Proceed” (as further described below) by the CITY and shall expire four (4) years from the Effective Date, unless terminated earlier as hereinafter provided. This Agreement may be extended for up to one (1) one-year extension upon such terms and conditions mutually agreed upon by the Parties in writing.“
SECTION 4. INCORPORATION OF REMAINING TERMS. Except as expressly modified or supplemented by this Amendment No. 1, all other provisions of the Agreement shall remain unaltered and in full force and effect. In the event of conflict between the provisions of this Amendment No. 1 and the provisions of the Agreement, the provisions of this Amendment No. 1 shall control.
(“CITY”) (“CONSULTANT”)
CITY OF MONTEBELLO ALLTECH INDUSTRIES, INC.
Raul Alvarez, City Manager Hilda Perez, President
ATTEST:
Christopher Jimenez, City Clerk
APPROVED AS TO FORM:
Arnold M. Alvarez-Glasman, City Attorney
EXHIBITS:
Exhibit B-1 – Schedule of Compensation
AMENDMENT NO. 1 TO AGREEMENT NO. 4001
EXHIBIT B-1
Schedule of Compensation
FY 2025-26 - $81,000
ATTACHMENT B
ITEM # 13
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: Cesar Roldan, Director of Public Works
SUBJECT: APPROVE AMENDMENT NO. 1 TO AGREEMENT NO. 4215 WITH MCA
CONSULTANTS FOR SOLID WASTE MANAGEMENT SERVICES
DATE: January 14, 2026
RECOMMENDATIONS:
It is recommended that the City Council:
1. Approve Amendment No. 1 to Agreement No. 4215 between the City of Montebello and MCA Consultants to increase contract compensation by $30,000; and
2. Authorize the City Manager to execute the Amendment on behalf of the City; and
3. Take such additional, related action that may be desirable.
FISCAL IMPACT:
Approval of Amendment No. 1 t(Attachment A) to Professional Services Agreement No. 4215 (Attachment C) will increase the not-to-exceed amount by $30,000 for a total amount of $129,695. Sufficient funds are included in the Fiscal Year 2025-26 adopted budget and will be payable from Account No. 100-30-730-6040.95 (General, Public Works, AB939, Contract Services – Other Professional Services). This amendment will not require additional appropriations or impact the General Fund beyond what has been budgeted.
BACKGROUND/DISCUSSION:
On May 9, 2024, the City released a Request for Proposal (RFP) (Attachment B) for Solid Waste Management Services to support ongoing compliance with applicable federal, state, and local solid waste and recycling regulations, including Ordinance No. 2445, Resolution No. 20-97, Assembly Bill 341, Assembly Bill 1826, and Senate Bill 1383.
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
Following the RFP process, the City awarded a contract to MCA Consultants, who has performed exceptionally and demonstrated expertise throughout the term of the agreement.
The City currently maintains a franchise agreement with Athens Services for residential solid waste collection. Under the terms of this agreement, a comprehensive audit of residential solid waste and recycling services is required to verify service levels, compliance, and reporting accuracy. This audit is a necessary component of the City’s oversight responsibilities and regulatory compliance efforts.
To satisfy this audit requirement, MCA Consultants has proposed additional services to conduct a complete review and assessment of residential solid waste and recycling services citywide. The proposed audit will be completed within sixteen (16) weeks of authorization. This expanded scope was not included in the original agreement with MCA and therefore requires an amendment to Agreement No. 4215 (Attachment C).
ENVIRONMENTAL:
N/A
ANALYSIS:
N/A
SUMMARY:
Approval of Amendment No. 1 (Attachment A) will allow MCA Consultants to perform a required comprehensive residential solid waste and recycling franchise audit in accordance with the City’s agreement with Athens Services and applicable regulatory requirements. The additional cost of the audit is $30,000, increasing the not-to-exceed amount to $129,695. Funds for these services are budgeted for Fiscal Year 2025–26 and will support the City’s continued compliance with state-mandated solid waste diversion and organic waste regulations. Staff recommends approval of the amendment to ensure timely completion of the required audit and continued effective solid waste management oversight.
ATTACHMENT(S)
1. Attachment A - Amendment No. 1 to Agreement No. 4215
2. Attachment B - Exhibit B-1 Comprehensive Residential Solid Waste and Recycling Franchise Audit Proposal - MCA Consultants
3. Attachment C - Agreement No. 4215 - MCA Consultants
CITY OF MONTEBELLO
AM
ENDMENT NO. 1
TO PROFESSIONAL SERVICES AGREEMENT NO. 4215
WITH MCA CONSULTANTS
T
his Amendment No. 1 to the Professional Services Agreement No. 4215 (“Amendment No. 1”), is made and entered into this 14th day of January, 2026, (“Effective Date”) by and between the City of Montebello, a California municipal corporation, (hereinafter referred to as the “City”) and MCA CONSULANTS (hereinafter referred to as the “CONSULTANT”). The City and the CONSULTANT are sometimes hereinafter individually referred to as a "Party" and jointly as the "Parties".
RE
CITALS
W
HEREAS, the CONSULTANT and the CITY entered into that certain Agreement No. 4215 to which CITY retained CONSULTANT to provide oversight of City programs relating to Solid Waste Management Services;
W
HEREAS, the Parties desire to increase the total not -to-exceed compensation by $30,000 for the entire term of the Agreement, and, in connection with such increase, a description of services shall be added to the Agreement as Exhibit B-1; and NO
W THEREFORE, in consideration of the mutual promises and covenants contained herein, the receipt adequacy of which is expressly acknowledged by the Parties, the Parties agree to amend the Agreement as follows:
AM
ENDMENTS
S
ECTION 1. TERM. Section 2(A) of the Agreement is hereby amended in its entirety as follows:
“A
ll terms, conditions, requirements, and provisions of the services in RFP 24- 18 and CONSULTANT’s responses, as such is set forth fully in Exhibit “B” hereto, are hereby incorporated fully herein by this reference and shall be binding on the Parties. Exhibit “B-1” incorporated fully herein by this reference and shall be binding on the Parties to provide additional services in an amount not to exceed Thirty Thousand Dollars ($30,000). To the extent of a conflict between the terms of the Agreement and that set forth in any exhibits or attachments hereto, the terms of this Agreement shall govern.” S
ECTION 2. INCORPORATION OF REMAINING TERMS. Except as expressly modified by this Amendment No. 1 , all other provisions of the Agreement shall remain unaltered and in full force and effect. In the event of conflict between the provisions of this Amendment No. 1 and the provisions of the Agreement, the provisions of this Amendment No. 1 shall control.
Attachment A
AMENDMENT NO. 1 TO AGREEMENT NO. 4215
IN WITNESS WHEREOF, the Parties execute this Amendment No. 1 to take effect as of the Effective Date identified above.
(“CITY”) (“CONSULTANT”)
CITY OF MONTEBELLO MCA CONSULTANTS
Raul Alvarez, City Manager Jeff Camera, President
ATTEST:
Christopher Jimenez, City Clerk
APPROVED AS TO FORM:
Arnold M. Alvarez-Glasman, City Attorney
Comprehensive Residential Solid Waste
and Recycling Franchise Audit Proposal
(Based on Agreement No. 4279 Between City of Montebello and Athens Services) Prepared for
City of Montbello
1600 W. Beverly Boulevard
Montebello, CA 90640
Prepared By
JCamera.mcaconsultants.com
(866) 377-6754
November 12, 2025
Exhibit B-1
Attachment B
Table of Contents
Introduction ................................................................................................................................................................1 Purpose of the Audit ...................................................................................................................................................1 Methodology ..............................................................................................................................................................2 Planning and Agreement Scoping ..........................................................................................................................2 Phase 1 ...............................................................................................................................................................2 Phase 2 ...............................................................................................................................................................3 Phase 3 ...............................................................................................................................................................3 Phase 4 ...............................................................................................................................................................4 Operational Performance ............................................................................................................................................5 Regulatory Adherence ................................................................................................................................................6 Financial Compliance .................................................................................................................................................7 Customer Service and Equity .....................................................................................................................................8 Deliverables ................................................................................................................................................................8 Conclusion ..................................................................................................................................................................9 Timeline ......................................................................................................................................................................9 Cost Proposal ..............................................................................................................................................................9
Agreement 4279 - Residential Audit Proposal - 2025-11-12
Introduction
The City of Montebello approved Agreement 4279 between the City of Montebello and Arakelian Enterprises, Inc. (DBA Athens Services) for the collectio n, processing, and management of resi dential solid waste, recycling, and organics services. Approved on October 23, 2024, Agreem ent No. 4279, executed between the City and Athens Services, defines the terms of this relationship and the ma ndatory services to be provided. It also sets forth the financial obligations Athens owes to the City, the service standards it must uphold for residents, and the regulatory requirements it must meet under California law.
For residents, the timely curbside collection of trash, the availability of recycling and organics bins, the responsiveness to bulky item requests, and the clarity of communication of inquiries are all key aspects of the franchise to be audited. For the City , the accuracy of franchise fee payments , assurances of service, the timely completeness of reports, and the assurance that state mandates are being met are also vital components that will be audited to determine compliance. The proposed audit services we have set forth aligns the Agreement and policy goals into enforceable obligations.
Since the service Agreement is only as strong as its oversight, the City purpo sely included an audit provision to ensure compliance with all operational, financial, and regulatory aspects of the Agreement to make certain that the City’s interests are protected and that residents are receiving the services they are promised. This proposal outlines a comprehensive audit of Athens Services’ performance under Agreement No. 4279 and the Montebello Municipal Code to explain not only what will be done, but why it matters to Montebello and its residents.
Purpose of the Audit
Since 1984, Athens Services has been the exclusive solid waste hauler for the City of Montebello’s residential solid waste, responsible for collecting trash, recyclables, and bulky items from homes and businesses. With such a long- standing relationship, the City recognizes the importance of periodically reviewing the partnership to ensure that services remain fair, efficient, and compliant with both local agreements and state la w. The audit provisions of Agreement No. 4279 were incorporated to provide that assurance.
The audit begins with a close look at collections. Since Athens’ trucks and crews are the backbone of daily service, the audit will evaluate and confirm if routes are bein g completed on schedule, missed pickups are minimal and being addressed, and if residents are receiving the reliabl e service outlined in the Agre ement and set forth by the City. This part of the audit is focused on operational consistency and responsiveness to community needs.
Directly associated with collection are the regulatory aspects of the Agreement. The audit will address regulatory compliance, particularly California’s environmental mandates, legislation, and the City’s diversion requirements of 75 percent. Laws such as SB 1383 require cities and their haulers to divert organic waste, recover edible food, and reduce greenhouse gas emissions. The audit will verify Athens’ programs and practices to ensure that the program provided to Montebello are meeting these obligations and avoiding the potential for costly state penalties.
Beyond compliance, the audit process will measure performance. This aspect is intended to evaluate Athens’ customer service, complaint resoluti on, and overall responsiveness. Among the questions to be evaluated include but are not limited to: Are residents’ concerns being addressed in a timely fashion? Do the resolution standards meet customer expectations? Are service standards being upheld? to name a few. These and other questions, along with performance metrics, will provide a clear picture of how well Athens is servi ng the community beyond the mechanics of collection.
Agreement 4279 - Residential Audit Proposal - 2025-11-12
The final phase of the audit is the financial review. This phase has been placed near the end so that a full and complete analysis can be conducted of the first year of the Agreement. Under the Agreement, Athens pays franchise fees to Montebello based on its revenues, and those funds support vital City services. The audit will examine Athens’ financial documents to verify that revenues were report ed accurately and that the City was receiving its full apportionment of fees. This financial accountability is critical to protecting public funds and ensuring transparency in how ratepayer dollars are managed.
The audit will also review rates charged to residents and bu sinesses to ensure that the rate structures are aligned with the actual costs of service identifie d in the Service Agreement. This will ensure that Montebello’s ratepayers are not being overcharged and that any additional fees char ged to residents are justified by operational needs or regulatory requirements and identified under the Agreement.
Finally, the audit will bring all aspects together under the umbrella of contract co mpliance with the Franchise Agreement itself. Athens’ obligations are spelled out in detail from reporting requirements to service delivery standards. The audit will confirm whether those obligations we re met in full, ensuring that the contract is adhered to and the City’s interests protected.
The intent of the audit is not simply an exercise in oversight. It is designed to safeguard the City of Montebello and its residents. By examining collections, finances, regulat ory obligations, performance, rates, and compliance, the City will be able to affirm its commitment to account ability, environmental responsib ility, and fair service. For Athens, the audit is an opportunity to demonstrate transp arency and reinforce its role as a trusted partner in the community’s waste management system.
Methodology
Planning and Agreement Scoping
Phase 1
The first phase of the audit will be devoted to planning and Agreement scoping, laying the foundation for a thorough and defensible audit review. Because MCA was directly involved in draf ting Agreement No. 4279 and supported the City during its negotiation and approva l process, we bring a unique familiar ity with the contract’s provisions, obligations, and remedies. This knowledge will be leveraged to develop a comprehensive audit framework that lists each contractual obligation, the associated performance metrics, and the remedies available to the City in the event of non-compliance. By structuring the audit in this way, every test and verification step will be explicitly tied back to the Agreement, ensuring that findings are not only accurate but also contractually relevant.
MCA will convene kickoff meetings with City staff to confirm priorities, clarify expectations, and identify any areas of concern that should receive heightened attention. These meetings will also esta blish communication protocols and data transfer procedures that will govern the audit, ensuring that information flows securely, efficiently, and in a manner that supports timely analysis.
To further strengthen the process, MCA will prepare a pre-audit package. This package, developed in consultation with and approved by the City, will be transmitted to Athens Services in advance of the audit process. It will clearly outline the categories of information requ ired, the specific data sets and records to be produced, and the format in which they should be delivered. Athens will be asked to certify that the requested information is available and will be provided prior to the audit dates. This proactive st ep will minimize delays, reduce the risk of incomplete submissions, and ensure that the aud it team has access to the full range of documentation necessary to conduct a comprehensive review.
Agreement 4279 - Residential Audit Proposal - 2025-11-12
By developing the preaudit package in the initial planning phase, the City and MCA will establish a strong foundation for the audit, ensuring that the process and findings are orderly, transparent, and firmly anchored in the requirements of Agreement No. 4279. This process will al so make certain that the re view delivers meaningful findings, insights, and actionable recommendations, if necessary.
Phase 2
The second phase of the audit will focus on data intake and validation, one of the steps in ensuring that the audit review is grounded in accurate information. Athens Services will be formally requested to provide a comprehensive set of records as specified in the Ag reement, which may include, but not lim ited to, financial statements, detailed billing and remittance data, route comp letion logs, tonnage and diversion reports, cont amination notices, and customer service records. These datasets represent the operational and financial backbone of the franchise, and their completeness and accuracy are essential in conducting a complete audit.
Once received, the data will undergo a structured validation process. This will include confirming that all required records have been provided for the full audit period, that th e information is internally consistent, and that it aligns with the definitions and reporting requirements set fort h in Agreement No. 4279. For example, financial records will be cross-checked against deposit statements and franchi se fee remittances; route lo gs will be compared to service schedules; and tonnage reports will be reconciled with state-mandated reporting categories and City required reports.
The validation process will also include identification of missing information, fields, duplicate entries, or unexplained variances. Where discrepancies are identified, Athens will be asked to provide clarification or supplemental documentation. This process ensures that the audit team is working with a dataset that is both complete and reduces the risk of errors and strengthens the credibility of the final findings.
By the conclusion of this phase, the City will have a ssurance that the information being analyzed is accurate, comprehensive, and directly aligned with the obligations of Agreement No. 4279. This foundation will be included with other phases of the audit incl uding financial reconciliation, opera tional performance review, regulatory compliance assessment, and customer service evaluation.
Phase 3
The third phase of the audit will consist of fieldwork and analysis, where the planning and data collection efforts are translated into substantive findin gs. During this phase, the audit move s from preparation to verification, comparing Athens Services’ performance against the fi nancial, operational, and re gulatory requirements of Agreement No. 4279.
During the financial portion of the audit, detailed reconciliations will be performed to ensure that Athens’ reported revenues align precisely with deposit records and franch ise fee remittances. This process may involve tracing revenues from billing through to actual de posits and payments to the City, confirming that the franchise fees have been calculated correctly, remitted in full, and delivered on time. Any discrepancies will be identified, investigated, and documented in order to clear any identified clerical errors, systemic issues, or misinterpretations of the Agreement’s provisions.
Operational data will be analyzed to determine whethe r Athens is meeting the service standards set forth in Agreement 4279. Route completion logs will be compared against scheduled service days, exception codes will be reviewed to identify recurring service issues, and reco very times will be measured against the Agreement’s requirements for timely resolution of missed collections. Bulky item service records will also be examined to ensure that requests are being fulfilled within the prescribed timelines, and cart delivery an d maintenance logs will be reviewed to verify that residents are receiving prompt and adequate support.
Agreement 4279 - Residential Audit Proposal - 2025-11-12
When necessary, regulatory reports will be traced back to their source data to confirm accuracy and completeness.
This will include verifying tonnage re ports, diversion rates, and contamination data, ensuring that the information submitted to the City reflects actual performance. Where discrepancies are identified, Athens will be asked to provide clarification or supporting documentation, and recommendations will be made to strengthen internal quality assurance processes.
Where appropriate, field observations will be conducted to corr oborate reported performance. These may include spot checks of collection routes, verification of bulky ite m pickups, or observation of cart conditions in the field.
Such observations provide verification, ensuring that the data provided by Athens accurately reflects the service experienced by residents and expectation of the City.
Phase 4
The fourth and final phase of the audit will center on reporting and corrective action planning, where the results of the financial, operational, regulatory, and customer service reviews are combined into a clear, actionable framework for the City. At this stage, all findin gs will be carefully mapped to the rele vant sections of Agreement No. 4279, ensuring that every conclusion is firmly grounded in the contract’s language and obligations. This approach not only strengthens the credibility of the audit but also prov ides the City with a direct correlation between the Agreement’s requirements and Athens Services’ actual performance.
The audit report will be presented in a narrative format th at highlights key themes, supported by detailed evidence and data analysis. Each section will identify areas of compliance, areas of partial compliance, and areas of non-compliance, with explanations of the potential risks or impacts to the City. The report will also include a compliance matrix, allowing City staff and City Council to ascertain how Athens’ performance aligns with the obligations of Agreement 4279.
If necessary, this phase will produce a Corrective Action Plan (CAP). Th e CAP will move beyond identifying problems to providing solutions. For each finding, the plan will specify the recommended corrective action required, the responsible party (whether Athens, the City, or both), the timeline for completion, and the method of verification.
This ensures that recommendations are not abstract but instead are practical, measurable, and enforceable.
The CAP will also be aligned with applicable notice and cure provisions of Agreement 4279. Where the Agreement provides Athens with an opportunity to remedy deficiencies within a defined period, the CAP will incorporate those timelines and processes. This alignment ensures that the City’s oversight actions are consistent with the contract, protecting the City’s legal position while also giving Athens a fair and transparent path to compliance.
Finally, the reporting phase will include a presentation of findi ngs to City staff and, if desired, the City Council.
This presentation will present the aud it’s conclusions into clear, accessible language, supported by visuals and summaries that highlight the most important issues and recommendations. The goal is to provide City staff with the information needed to determine Athens accountability, strengthen oversight, and ensure that residents receive the high-quality service they are promised under Agreement 4279.
By the conclusion of this phase, the City will not only have a comprehensive record of Athens’ performance but also a roadmap for improvement, if necessary. The combination of a detaile d audit report, a contract-aligned corrective action plan, and a clear presentation of findings will provide Montebello with the tools it needs to enforce Agreement 4279 effectively and to safeguard the interests of its residents.
Agreement 4279 - Residential Audit Proposal - 2025-11-12
Operational Performance
Operational performance is one of the core aspects of the City’s Agreement with Athens Services under Agreement No. 4279. While financial compliance ensu res that the City receives the revenues it is due, it is the day-to-day delivery of services that most directly determines compliance with the service standards. For this reason, this audit will devote significant attention to evaluating Athens’ operational practices and outcomes, using both quantitative data and qualitative observations to determine whether service standards are being met.
The evaluation will begin with a detailed review of rout e completion logs, exception codes, and recovery times.
These records will provide insight into whether weekly collections occur as scheduled, how often exceptions or missed services are recorded, and how quickly Athens responds when a service is missed. Agreement No. 4279 sets clear expectations for timely recovery , and the audit measures Athens’ pe rformance against those benchmarks.
Chronic delays or repeated misses in certain neighborhoods and districts w ill be identified, and the adequacy of Athens’ corrective actions is assessed.
Another important component of operational performance is cart delivery and maintenance. Residents rely on carts that are functional, clean, and appropriately sized for thei r needs. The audit will examine Athens’ records to verify whether new carts were delivered within required timefr ames, whether damaged carts are repaired or replaced promptly, and whether inventory controls are sufficient to prevent shortages or delays . Field observations may be conducted to confirm that carts in use are properly labeled and in good condition.
The audit further evaluates Athens’ implementation of diversion programs. Agreement No. 4279 incorporates the City’s obligation to comply with California’s recycling and organics mandates, and Athens plays a central role in achieving those goals. The audit will review how new programs have been rolled out, whether participation rates are increasing, and whether contamination reduction strate gies are applied consistently across all residential collection districts. Closely related is Athens’ handling of construction and demolition (C&D) waste, a portion of the waste stream that is often underreported or plagued by unlicensed haulers. Proper diversion is critical to meeting state requirements, and the audit will examine Athens’ tracking, diversion practices, and reporting of C&D tonnage.
Bulky item collections are another area of focus. The a udit will measure the time between resident requests and actual pickups, evaluate whether Athens meets prescribed service timelines, and will identify any patterns of repeat requests or missed pickups. Because bulky items left at th e curb can quickly become a source of neighborhood blight, the audit assesses Athens’ responsiveness to abandoned item reports and its coordination with the City to ensure that these items are removed quickly and efficiently.
Finally, the audit will review Athens’ public outreach pr ograms. Agreement No. 4279 requires Athens to educate residents about recycling, organics, contamination reducti on, and proper set-out practices. The audit evaluates the frequency, clarity, and accessibility of outreach materials, with particular attention to multilingual communication and outreach to multifamily properties.
Taken together, these areas of review will provide the City with a comprehensive assessment of Athens’ operational performance. The audit will not only determine whether Athens is meeting the minimum service standards outlined in Agreement No. 4279 but also highlights opportunities for improvement. By identifying strengths, weaknesses, and recurring issues, the City is bette r positioned to enforce acco untability, strengthen oversight, and ensure that residents receive the high-quality services expected by the City.
Agreement 4279 - Residential Audit Proposal - 2025-11-12
Regulatory Adherence
Regulatory adherence is one of the most critical dimensions of Agreement No. 4279 because it ensures that Athens fulfills its obligations under Californi a’s environmental laws while being held accountable for the responsibilities outlined in the Franchise Agreement. The Agreement not only incorporates a wide range of statutory and regulatory requirements, but it also defines vari ous aspects of as compliance both as a matter of legal necessity and a contractual duty.
At the center of this review is Senate Bill 1383 (SB 1 383), California’s legislation designed to reduce greenhouse gas emissions by diverting organic waste from landfills. SB 1383 requires jurisdictions to provide universal organics collection, implement contamination reduction strategies, and establish systems for edible food recovery. The audit examines whether Athens has extended organics service to all eligible households, including multiple family residential properties, and whether participation is activ ely encouraged through outreach and education. Athens’ records will be reviewed to confirm that contamination no tices are issued consistently, that follow-up actions are documented, and that residents receive clear guidance to correct improper practices. Effectiveness will be measured not only by compliance but also by whether contamination rates decline over time, demonstrating that enforcement and education are producing tangible results.
The terms of the Agreement also mandate a mandatory re sidential recycling program, requiring residential and multifamily properties to implement recycling practices. Th e audit will evaluate Athens’ implementation of these programs, focusing on participation rates, contaminat ion monitoring, and the challenges faced by multifamily properties, those properties with limited access and space. Special attention will be given to whether Athens applies contamination reduction strategies cons istently across all customer classes, districts, and areas ensuring that diversion goals are met equitably throughout the City.
Public education and outreach are also central to regulatory adherence. Ag reement No. 4279 requires Athens to conduct ongoing campaigns that inform residents about proper recycling and organics practices. The audit will evaluate the clarity, accessibility, and frequency of these efforts, with particular emphasis given to multilingual communication that reflects Montebello ’s diverse population. Outreach materials will be reviewed for cultural relevance and distribution methods to ensure that resident s are adequately informed and engaged. The audit also considers whether Athens tailors outreach to multifamily properties and property management companies, where education is often more complex due to shared bins, limited space, and varying levels of resident engagement.
Equally important is the accuracy of Athens’ reporting, which the City relies upon to demonstrate compliance with state diversion and organics mandates. Reported diversion rates, tonnage figures, and contamination data are traced back to source records to confirm accu racy and completeness. Any discrepanc ies found will be documented and recommendations made to strengthen the quality assuran ce processes. These may incl ude, but are not limited to, improvements to data collection meth ods, enhanced internal review proc edures, and clearer documentation protocols to ensure that the City receives reliable information on an ongoing basis.
Finally, the audit will consider the risks of non-compliance. Failure to meet SB 1383 or related mandates can expose Montebello to financial penalties and operational disrupti ons if corrective actions are imposed by the state. By thoroughly auditing Athens’ compliance, we will assist the City in reducing these risks and ensuring that its waste management system remains aligned with California’s environmental priorities.
The regulatory review under this aud it will provide Montebello with a co mprehensive understanding of Athens Services’ adherence to SB 1383, AB 341, AB 1826, and related mandates. It will confirm whether required programs are in place, contamination reduction strategies are effective, outreach is accessible and multilingual, organics and food programs are supported, and reporti ng is accurate. By doing so, the audit not only insulates the City from
Agreement 4279 - Residential Audit Proposal - 2025-11-12
potential penalties but also advances Montebello’s broa der environmental goals of waste reduction, resource recovery, and community sustainability.
Financial Compliance
Financial compliance is one of the most critical component s of the City of Montebello’s audit of Agreement No. 4279. Franchise fees generated under this Agreement represent a significant and stable revenue stream for the City, directly supporting essential municipal services such as solid waste collection, recyc ling, and organics programs.
Because these revenues are contractually defined and legally binding, strict adherence to the financial provisions of Agreement No. 4279 is necessary to safeguard the City’s fiscal health and ensure that residents are billed fairly and transparently.
This section of the audit will begin with a comprehens ive reconciliation of Athens Services’ reported revenues against independent financial records. This process will trace revenues from the point of billing through to deposits and remittances made to the City. By examining audited financial statements, bank deposit records, and remittance schedules, the audit will confirm whether Athens’ reporte d figures align with actual deposits and payments. Any discrepancies between reported amounts and underlying financial records will be identified, investigated, and documented. This reconciliation will provide the City with a clear and defensible assessment of whether it is receiving the full consideration required under the Agreement.
Equally important is the verification of franchise fee calculations. Agreement No. 4279 specifies how fees must be calculated, including which categories of revenue are to be included or excluded. The audit will confirm whether or not Athens is applying the correct revenue base, co nsistently following contract ual definitions and properly documenting any adjustments. Special attention will be given to su rcharges, pass-through costs, and other adjustments, which must be explicitly authorized by the Agreement. The ti meliness of payments will also be reviewed to ensure that the City is not disadvantaged by delays. Where late payments are identified, the audit will verify whether interest or penalties have been applied in accordance with contractual provisions.
Because the majority of residential services are collected through the property tax roll, the audit will also examine billing practices for customers billed directly, includin g single-family and multifamily accounts. Samples of customer bills will be reviewed to verify that rates charged match the schedules outlined in the Agreement’s exhibits.
This analysis will confirm whether adjustments are transparent and accurate and whether any unauthorized charges have been levied. By examining billing practices at the customer level, the audit will protect both the City’s financial interests and residents’ rights, ensuring that charges are fair, consistent, and contractually compliant.
Where irregularities or inconsistencies are identified, the audit will go beyond documentation to analyze their root causes. This assessment will determine whether discrepa ncies stem from isolated clerical errors, systemic misapplications of rates, or other factors affecting Athens’ billing and reconciliation controls. The potential impact of these issues on City revenues and resident billing will be evaluated, providing the City with a clear understanding of both the scale and significance of any problems. Based on these findings, the audit will develop recommendations aimed at strengthening Athens’ internal controls, improving reconciliation pr ocesses, and enhancing the accuracy and reliability of financial reporting
At the conclusion of this financial review, the City of Montebello will have a comprehensive and defensible assessment of Athens Services’ financial compliance under Agreement No. 4279. The audit will verify whether franchise fees are being calculated and remitted properly, whether residents are being billed fairly, and whether the City’s financial interests are fully safeguarded. Wher e gaps are identified, the audit will provide practical, contract-aligned remedies to ensure that such issues do not recur. In doing so, the audit will not only protect the
Agreement 4279 - Residential Audit Proposal - 2025-11-12
City’s fiscal health but also reinfo rce public confidence in the fairness an d transparency of its solid waste and recycling programs.
Customer Service and Equity
In Montebello the success of Agreement No. 4279 is measured not only by financial reconciliations and operational metrics, but by the way residents experience their daily service. For households across the city, trust in the franchise depends on whether Athens Se rvices responds promptly to concerns, co mmunicates clearly, and delivers service equitably. Recognizing this, the audit will place significant emphasis on the human side of the contract: how Athens manages complaints, supports residents through its call center, and ensures th at every neighborhood receives fair and respectful treatment.
The audit will begin with the views of residents themse lves, captured in complaint logs. These records reveal recurring frustrations: missed collections in certain areas, delays in bulky item pickups, or repeated problems with carts. Each entry is more than a statistic. It is a re flection of whether Athens is attentive to the needs of the community. By tracing patterns in these logs, the audit will uncover whether problems are isolated or systemic and whether Athens has taken meaningful steps to resolve them. The timeliness and qua lity of responses will be scrutinized because a complaint left unresolved erodes confidence far more than a single missed pickup.
From there attention turns to the call center, the frontline of customer service. Agreement No. 4279 requires Athens to maintain responsive communication, and the audit will measure this through in dicators such as wait times, abandonment rates, and first-call resolution. These numbers tell a story of their own: whether residents can reach a representative quickly, whether their concerns are ad dressed without repeated follow-up, and whether complex issues are escalated and resolved effectively. The audit will compare these outcomes against contractual standards to determine if Athens is meeting its obligations and delivering service that residents can rely on.
Equity runs through every part of th is review. Montebello is a diverse co mmunity, and the audit will ask whether Athens provides multilingual support, cu lturally appropriate outreach, and ac commodations for seniors, residents with disabilities, and households with limited English profic iency. Outreach materials will be examined for clarity and accessibility, with particular attention to whether th ey are distributed broadly e nough to reach every segment of the city. In neighborhoods where collection logistics ar e more complex, the audit will look closely at whether service remains consistent and fair.
By weaving together the quantitative evidence of comp laint and call center data with the qualitative insights from outreach practices, the audit will presen t a comprehensive picture of Athens ’ customer service performance. The goal is not simply to confirm whether Athens meets the minimum requirements of Agreement No. 4279, but to highlight opportunities for improvement that strengthen responsiveness, build trust, and ensure that every household in Montebello receives the respectful, inclusive service it deserves. In doing so, the City will be better positioned to uphold the promise of the franchise and reinforce the bond between residents and the system designed to serve them.
Deliverables
The City will receive a narrative final report that ties each finding to the relevant section of Agreement 4279. The report will include a compliance matrix, financial reconcilia tion results, service quality assessments, regulatory compliance analysis, and customer service evaluation. A corrective action plan will specify actions, responsible parties, timelines, and verification steps. If requested, a presentation will be prepared for the City Council and the public, summarizing key findings and recommendations.
Agreement 4279 - Residential Audit Proposal - 2025-11-12
Conclusion
Agreement No. 4279 is designed to en sure residents will receive consistent, equitable, and environmentally responsible waste management services. This audit will evaluate compliance with th e Agreement. By reconciling revenues, measuring service performan ce, verifying regulatory compliance, and evaluating customer service, the City will gain a clear, defensible assessment of Athens Services’ performance.
Where Athens is meeting its obligatio ns, the audit will provide reassurance. Where gaps exist, it will provide remedies. In either case, the outcome will be greater accoun tability, stronger oversight, and better service for the people of Montebello.
Timeline
Following the City's approval, MCA will, within a two-week period, deliver a detailed and comprehensive timeline to the City for review and approval. This timeline will outline the audit provisions and encompass the full scope of services as defined in the Agreement. The purpose of this submission is to facilitate the City's review and secure their approval of the proposed audit framework.
Given the complexity and breadth of the audit, as well as its strategic alignment with the anniversary of the franchise award to Athens Services, MCA anticipates that the audit wi ll be executed in a series of structured phases. These phases, previously referenced in the planning documentation, are expected to unfold over an estimated duration of sixteen (16) weeks. Each phase will be designed to ensure thorough analysis, transparency, and compliance with all contractual and regulatory obligations.
Cost Proposal
As part of our proposal, the cost proposal outlined below represents a complete financial overview aligned with the full scope of services described above for a not to exceed cost of Thirty-Thousand Dollars ($30,000.00). This cost proposal has been prepared to ensure transparency, fiscal accountability, and consistency with the goals and deliverables defined in the proposal. All projected costs a ssociated with service execut ion are included, and each item has been carefully reviewed for accuracy and efficiency with pricing directly reflecting our current contracted rates with the City, ensuring a fair and cost-effective approach.
We are committed to maintaining clear and responsive co mmunication throughout the audit process. Therefore, should the City require further clarification, adjustments, or supporting documentation, we are fully prepared to provide prompt and thorough responses.
Should you have any questions or require additional information, please do not hesitate to contact me directly.
Respectfully,
Jeff Camera
President
Respectfully,
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Attachment C
ITEM # 14
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: Cesar Roldan, Director of Public Works
SUBJECT: APPROVE AMENDMENT NO. 1 TO AGREEMENT NO. 4193 WITH
PACIFIC COAST ELEVATOR CORPORATION (AMTECH ELEVATOR
SERVICES) FOR ELEVATOR MAINTENANCE AND REPAIR SERVICES
DATE: January 14, 2026
RECOMMENDATIONS:
It is recommended that the City Council:
1. Approve Amendment No. 1 to Agreement No. 4193 between the City of Montebello and Pacific Coast Elevator Corporation, DBA Amtech Elevator Services, to increase compensation for contract year 2025 – 2026 by $30,000; and
2. Amend the adopted Fiscal Year 2025-26 budget by increasing appropriations by $30,000 in Account 100-30-510-6040.60 (General Fund, Public Works, Building Maintenance, Contract Services-Building Maintenance/Repairs); and
3. Authorize the City Manager to execute the Amendment on behalf of the City; and
4. Take such additional, related action that may be desirable.
FISCAL IMPACT:
Amtech Elevator Services provides citywide elevator maintenance and repair services.
The existing agreement includes a contract not-to-exceed amount of $200,694 over the course of a three-year term. Staff recommends increasing the not-to-exceed amount by $30,000 for Fiscal Year 2025–26, resulting in a total contract not-to-exceed amount of $230,694.
Execution of Amendment No. 1 (Attachment A) will authorize additional compensation to serve as a contingency for emergency repair work as needed. The agreement is administered by the Department of Public Works and funded through the Public Works
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
Building Maintenance budget. Funding for these services is included in the Fiscal Year 2025-26 budget.
The increase in the not-to-exceed amount requires amending the Fiscal Year 2025-26 budget, increasing appropriations by $30,000 in Account No.100-30-510-6040.60 (General Fund, Public Works, Building Maintenance, Contract Services-Building Maintenance/Repairs) to cover the additional compensation per Amendment No. 1.
BACKGROUND/DISCUSSION:
On May 8, 2024, the City entered into an agreement with Pacific Coast Elevator Corporation, DBA Amtech Elevator Services, for Citywide elevator maintenance and repair services with a contract not-to-exceed amount of $200,694. These services are essential to helping the City comply with American with Disabilities Act (ADA) regulations and ensure efficient, safe, and convenient vertical transportation wherever available.
Amtech Elevators has provided the City with extensive knowledge, expertise, and experience in elevator services. Their swift and prompt response to emergency repairs has allowed City elevators to remain operational with minimal to no service interruption, supporting public access and continuity of operations across City facilities.
During the first year of the contract, unanticipated emergency elevator repairs were required to address urgent operational and safety needs. Due to the ongoing potential for emergency repairs, staff is requesting the addition of a $30,000 contingency to the contract to provide flexibility should emergency repair needs continue to arise.
To accommodate these additional service needs, staff recommends executing Amendment No. 1 to increase the contract amount by $30,000 for Fiscal Year 2025–26, resulting in a total contract not-to-exceed amount of $230,694. The increase in the not- to-exceed amount requires amending the Fiscal Year 2025-26 budget, increasing appropriations by $30,000 in Account No.100-30-510-6040.60 (General Fund, Public Works, Building Maintenance, Contract Services-Building Maintenance/Repairs).
ENVIRONMENTAL:
N/A
ANALYSIS:
N/A
SUMMARY:
Staff is recommending approval of Amendment No. 1 to Agreement No. 4193 with Amtech Elevator Services to increase the contract not-to-exceed amount by $30,000, resulting in a total not-to-exceed amount of $230,694. This contingency accounts for emergency services during the first year of the contract and provides a financial safety net should additional emergency elevator repairs be required. The
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
contingency will not be enforced on the purchase order and will only be utilized if necessary. The increase in the not-to-exceed amount requires amending the Fiscal Year 2025-26 budget, increasing appropriations by $30,000 in Account No.100-30-510- 6040.60 (General Fund, Public Works, Building Maintenance, Contract Services-Building Maintenance/Repairs).
ATTACHMENT(S)
1. Attachment A - Amendment No. 1 to Agreement No. 4193
2. Attachment B - Agreement No. 4193
CITY OF MONTEBELLO
AM
ENDMENT NO. 1
TO PROFESSIONAL SERVICES AGREEMENT NO. 4193
WITH AMTECH ELEVAOR SERVICES
T
his Amendment No. 1 to the Professional Services Agreement (“Amendment No. 1 ”), is made and entered into this 14 th day of January 2026, (“Effective Date”) by and between the City of Montebello, a California municipal corporation, (hereinafter referred to as the “City”) and Amtech Elevator Services , (hereinafter referred to as the “Consultant”). The City and the Consultant are sometimes hereinafter individually referred to as a "Party" and jointly as the "Parties".
RE
CITALS
W
HEREAS, the Consultant and the City entered into an agreement with Pacific Coast Elevator Corporation, doing business as, Amtech Elevator Services for Citywide elevator maintenance and repair services dated May 8, 2024 ("Agreement”); and W
HEREAS, the City awarded the Agreement to the Consultant based on their qualification, subsequent to a competitive selection process. However, the services needed, including costs and expenses, exceeded the anticipated scope of the Agreement, and City and Consultant desire to increase the maximum compensation allowable under the Agreement; and
W
HEREAS, under Section 2c. SERVICES/COMPENSATION, Consultant may exceed the maximum compensation with prior written consent of the City; and W
HEREAS, under Section 6. EXTRA SERVICES, of the Agreement, any extra services over and above the compensation need to be duly authorized in writing by the City Manager; and
W
HEREAS, for the reasons set forth herein, the City and Consultant desire to enter into this Amendment No. 1, as set forth below.
NO
W THEREFORE, in consideration of the mutual promises and covenants contained herein, the receipt adequacy of which is expressly acknowledged by the Parties, the Parties agree to amend the Agreement as follows:
AM
ENDMENTS
S
ECTION 1. Section 2(c) of the Agreement Services/Compensation imposes the total not-to-exceed compensation amount of $200,694. The total not-to-exceed compensation amount is hereby amended to $230,694.
Attachment A
AMENDMENT NO. 1 TO AGREEMENT NO. 4193
SECTION 2. Except as expressly modified or supplemented by this Amendment No. 1, all other provisions of the Agreement, shall remain unaltered and in full force and effect.
In the event of conflict between the provisions of this Amendment No.1 and the provisions of the Agreement, the provisions of this Amendment No.1 shall control. [END O
F AMENDMENT NO. 1]
[SIGN
ATURES ON THE FOLLOWING PAGES]
AMENDMENT NO. 1 TO AGREEMENT NO. 4193
IN W
ITNESS WHEREOF, the Parties execute this Amendment No. 1 to take effect as of the Effective Date identified above.
(“CITY”) (“CONSULTANT”)
CITY OF MONTEBELLO AMTECH ELEVATOR SERVICES
Raul Alvarez, City Manager Kasie Lambert, Branch Manager ATTEST:
Christopher Jimenez, City Clerk
APPROVED AS TO FORM:
Arnold M. Alvarez-Glasman, City Attorney
Attachment B
ITEM # 15
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: Cesar Roldan, Director of Public Works
SUBJECT: AWARD AGREEMENT NO. 4448 TO MONARKA DEVELOPMENT
CORPORATION, DBA EXPRESS SIGN & NEON, FOR THE LED SIGN
CITY HALL PROJECT (CP 933)
DATE: January 14, 2026
RECOMMENDATIONS:
It is recommended that the City Council:
1. Award Agreement No. 4448 to Monarka Development Corporation for LED Sign City Hall Project (CP 933) as the most responsive, responsible bidder for the amount of $92,860; and
2. Approve a construction contingency of $7,140 should any necessary change orders be required; and
3. Authorize the City Clerk’s Office to release all other bidders’ bonds; and
4. Authorize the City Manager to execute the construction contract agreement and all change orders in good faith; and
5. Take such additional, related action that may be desirable.
FISCAL IMPACT:
Staff recommend awarding the construction contract agreement to Monarka Development Corporation as the most responsive and responsible bidder for the amount of $92,860. Additionally, a construction contingency in the amount of $7,140 is requested in the event of any unforeseen unaccounted costs, risks, events, or changes in scope that may affect the project’s cost over the course of its life, bringing the total contract amount to $100,000. Funds are available in Account No. 100-70-700-6040.60 (General, Parks & Recreation, Recreation Administration, Contract Services – Building Maintenance/Repairs).
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
This project is part of the Fiscal Year 2025-26 Capital Improvement Program (CIP) and funds were budgeted as part of City Council action on October 10, 2025 approving CIP related budget amendments and carry-overs. Therefore, no budget amendment is required as part of the recommended actions.
BACKGROUND/DISCUSSION:
On November 12, 2025, the City Council authorized staff to advertise the Notice Inviting Bid (NIB) for the City Hall sign project. This project will improve communication with residents by installing a modern electronic sign to display important information, announcements, and community updates. The existing sign at City Hall is approximately 20 years old and has been out of service since 2019 due to failures in its communication system. Retrofitting the sign is not a feasible option, as the core display components are outdated and would remain obsolete even with upgraded communication equipment.
The NIB was published on November 13, 2025, in a local newspaper of general circulation. Bidders accessed the contract specifications via PlanetBids. Bids were received electronically via PlanetBids on December 17, 2025. The following is the tabulation based on the order of when the bids were received:
Contractors Total
1 Monarka Development Corp. $92,860.00
2 Square Signs, LLC. $96,010.00
3 Voltaire Engineering $114,177.00
4 Bravo Sign & Design $182,000.00
The bid analysis was conducted to ensure that the most responsive, responsible bid met all state and local requirements. Based on the review, staff recommendation is to award Monarka Development Corporation the agreement (Attachment A) as the most responsive, responsible bidder. The remaining bid proposals are available in the City Clerk’s Office for review and the itemized bid results for comparative analysis are included in Attachment B.
ENVIRONMENTAL:
N/A
ANALYSIS:
N/A
SUMMARY:
Staff recommend the City Council award a construction agreement to Monarka Development Corp. for the LED Sign at City Hall project (CP 933) in the amount of $92,860 and approve a construction contingency of $7,140 payable for a total contract
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
amount of $100,000. Additionally, staff recommend the City Council release all other bidders’ bonds and authorize the City Manager to execute the construction agreement and all change orders in good faith.
ATTACHMENT(S)
1. Attachment A - Agr. No. 4448 - Monarka Development Corp. DBA Express Sign & Neon
2. Attachment B - Bid Results CP 933
P
UBLIC WORKS AGREEMENT NO. 4448
WITH MONARKA DEVELOPMENT CORP.
T HIS STANDARD PUBLIC WORKS AGREEMENT (“AGREEMENT”) is made and entered into on January 14, 2026 , (“Effective Date”) by and between the CITY OF MONTEBELLO, a California m unicipal corporation (the “CITY”) and MONARKA DEVELOPMENT CORP. , a California corporation (“CONTRACT OR”). The CITY and CONTRACTOR are sometimes referred to herein individual as the “Party,” and jointly as the “Parties.”
RE
CITALS
W
HEREAS, the CITY duly advertised a Notice Inviting Bids on November 13, 2025, C.P. No. 933 for LED Sign City Hall Project (“PROJECT”).
W
HEREAS, on January 14, 2026, the City Council accepted the bid of CONTRACTOR as the lowest responsible, responsive bid received and directed that a written contract be entered into with CONTRACTOR for the PROJECT.
NO
W, THEREFORE, in consideration of the promises and the mutual covenants and agreements herein contained, the parties do hereby agree as follows:
SECT
ION 1. INCORPORATION OF RECITALS AND CONTRACT DOCUMENTS a
. The above-referenced Recitals constitute a material part hereof and shall hereby be incorporated by reference. Moreover , the (“CONTRACT DOCUMENTS”) for the PROJECT shall consist of the Notice Inviting Sealed Bids, the Instructions to Bidders, Bidders Proposal, Add endums, CONTRACTOR’s Bid for the PROJECT , Scope of Work, general specifications and all referenced specifications, details, standard drawings, and appendices, together with this Agreement and all required bonds, and insurance certificates. All of the CONTRACT DOCUMENTS are intended to complement the other documents so that any work called for in one, and not mentioned in the others, or vice versa, is to be executed the same as if mentioned in all of said documents. The CONTRACT DOCUMENTS are incorporated herein by this reference and made part hereof as though they were fully set forth herein.
b
. In case any of the CONTRACT DOCUMENTS conflict with each other, the order of preference for the CONTRACT DOCUMENTS is:
1. T
his AGREEMENT and its Exhibits and or Attachments, including any and all addenda or supplemental agreements.
2. Appendices
3. Standard drawings
4. Details
Attachment A
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
5. Special Provisions, if any
6. Addendums
7. General Specifications and all referenced specifications
8. Bidders Proposal
9. Instructions to Bidders
10. Notice Inviting Sealed Bids
SECTION 2. THE WORK
For and in consideration of the payments and agreements to be made and performed by the CITY, CONTRACTOR agrees to furnish all materials and perform all work required for the PROJECT and to fulfill all other obligations as set forth in the CONTRACT DOCUMENTS.
SECTION 3. TERM; AND TIME FOR COMPLETION
a. This Agreement shall expire June 30, 2027, 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.
SECTION 4. COMPENSATION
CONTRACTOR hereby agrees to receive and accept the total amount of Ninety-Two Thousand Eight Hun dred Sixty ($92,860), which is based on performing all of the work shown on Bidders Proposal as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder . Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the CONTRACT DOCUMENTS, and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work. CITY shall herein retain five percent (5%) of said price until said time as the provisions of SEC. 18 herein have been met.
4.1. Progress Payments
Progress Payments shall be made in accordance with Section 7 the General Provisions and the provisions of this Section 4.1. Upon receipt of a properly presented payment request, the CITY shall process the payment request in accordance with Public Contract Code Section 20104.5 0. The CITY shall review the payment request as soon as possible. If the CITY rejects the payment request, it shall be returned to the CONTRACTOR
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
within seven (7) days of its receipt by the CITY with an explanation for the reasons of its rejection. If the payment request is approved in writing by the CITY, payment shall be made in thirty (30) days of receipt of an undisputed and properly presented payment request.
Late payments shall bear interest at the legal rate of interest in accordance with Code of Civil Procedure 685.010. The CITY shall pay CONTRACTOR a sum based upon ninety five percent (95%) of the Agreement price apportionment of the labor and materials incorporated into the work under the Agreement during the period covered by said statement. The remaining five percent (5%) thereof shall be retained as performance security. Refer to Section 4.2 of this Agreement for retention of funds.
4.2. Retention of Funds
Progress payments shall be made in accordance with the provisions of Section 4.1 of this Agreement. In accordance with said section, the CITY shall pay CONTRACTOR a sum based upon ninety five percent (95%) of the Agreement price in proportion to the labor and materials incorporated into the work under the Agreement during the month covered by said statement. The remaining five percent (5 %) thereof shall be retained as performance security to be paid to the CONTRACTOR within sixty (60) days after final acceptance of the work by the City Council of the CITY (“City Council”) , after CONTRACTOR shall have furnished the CITY with a release of all undisputed Agreement amounts, if required by the CITY. In the event there are any claims specifically excluded by CONTRACTOR from the operation of the release, the CITY may retain proceeds (per Public Contract Code 7107) of up to 150% of the amount in dispute. CITY ’s failure to deduct or withhold shall not affect CONTRACTOR’s obligations hereunder.
4.3. Substitution of Securities
Pursuant to Public Contract Code Sec. 22300, CONTRACTOR shall be allowed to substitute securities for any moneys withheld by the CITY to ensure performance under an Agreement, unless, federal regulations or policies, or both, do not allow the substitution of securities. At the request and expense of CONTRACTOR, securities equivalent to the amount withheld shall be deposited with the CITY , or with a state or federally chartered bank in this state as the escrow agent, who shall then pay those moneys to CONTRACTOR.
Upon satisfactory completion of the Agreement, the securities shall be returned to CONTRACTOR.
SECTION 5. UNDOCUMENTED WORKERS
CONTRACTOR hereby promises and agrees to comply with all of the provisions of Federal and/or State law as the same shall apply to this PROJECT pertaining to the employment of unauthorized aliens as defined therein. Should CONTRACTOR so employ unauthorized aliens for the performance of work and/or services covered by this Agreement, and should the Federal Government impose sanctions against the CITY for use of unauthorized aliens, CONTRACTOR hereby agrees to, and shall, hold harmless, indemnify and defend CITY for the cost of all such sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by the CITY in connection therewith.
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
SECTION 6. NOTICE TO PROCEED
CONTRACTOR shall commence work on the date specified in the Notice to Proceed to be issued in writing to CONTRACTOR by the CITY and shall complete work on the PROJECT within Sixty (60) Working Days from the commencement thereof.
SECTION 7. DISCOVERY OF HAZARDOUS OR LATENT CONDITIONS
a. CONTRACTOR shall, without disturbing the condition, notify the CITY in writing as soon as CONTRACTOR, or any SUB -CONTRACTOR, agent or employees have knowledge and reporting is possible, of the discovery of any of the following conditions:
1. The presence of any material that the CONTRACTOR believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code;
2. Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or,
3. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement.
b. Pending a determination by the CITY of appropriate action to be taken, CONTRACTOR shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person.
c. The CITY shall promptly investigate the reported conditions. If the CITY, through the City Engineer or his/her designee, and in the exercise of its sole discretion, determines that the conditions do materially differ, or do involve hazardous waste, and will cause a decrease or increase in CONTRACTOR’s cost of or time required for performance of any part of the work, then the CITY shall issue a change order.
d. In the event of a dispute between the CITY and CONTRACTOR as to whether the conditions materially differ or involve hazardous waste or cause a decrease or increase in CONTRACTOR’s cost of, or time required for performance of any part of the work, CONTRACTOR shall not be excused from any schedule completion date, and shall proceed with all work to be performed under the Agreement . CONTRACTOR shall retain any and all rights which pertain to the resolution of disputes and protests between the parties.
SECTION 8. MISCELLANEOUS STATUTORY REQUIREMENTS
8.1. CONTRACTOR License.
CONTRACTOR shall possess a california CONTRACTOR’s license type Class A for the performance of the Project.
8.2. Ineligible CONTRACTOR Prohibited.
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
Any CONTRACTOR or SUB-CONTRACTOR who is ineligible to perform work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code is prohibited from performing work under this Agreement.
8.3. Compliance with SB 854 Registration.
This P ROJECT is subject to compliance monitoring and enforcement by the Department of Industrial Relations. No prime CONTRACTOR or SUBCONTRACTOR may be awarded an Agreement for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. CONTRACTOR will be required to post job site notices as described in 8 California Code of Regulation section 16451(d).
8.4. Trench and Pipeline Safety.
If this Agreement is for more than $25,000 and involves excavation of any trench five feet or more in depth, CONTRACTOR shall submit a detailed plan of shoring, bracing, sloping or other provisions to be made for worker protection in accordance with Labor Code Section 6705. Such plan shall be approved by a qualified representative of the CITY.
8.5. Utility Relocation.
The CITY is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. The CITY shall reimburse CONTRACTOR for any costs incurred in locating, repairing damage not caused by CONTRACTOR and removing or relocating such unidentified utility facilities, including equipment idled during such work. CONTRACTOR shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.
8.6. Third Party Claims Notification.
The CITY shall timely notify CONTRACTOR in writing of any third party claims relating to the Agreement.
8.7. Unfair Business Practices Claims.
The CONTRACTOR or SUB-CONTRACTOR offers and agrees to assign to the CITY all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works Agreement or the sub-Agreement. This assignment shall be made and become effective at the time the CITY renders final payment to CONTRACTOR without further acknowledgment by the parties. (Section 7103.5, California Public Contract Code.).
8.8. Day’s Work.
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
CONTRACTOR acknowledges that under California Labor Code sections 1810 and following, eight (8) hours of labor constitutes a legal day’s work. CONTRACTOR will forfeit as a penalty to CITY the sum of $25.00 for each worker employed in the execution of this Agreement by CONTRACTOR or any SUB -CONTRACTOR for each calendar day during which such worker is required or permitted to work more than eight ( 8) hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Labor Code section 1810. (Labor Code § 1813).
8.9. Payroll Records.
CONTRACTOR shall maintain the certified payroll records required by Labor Codes Sec. 1776 and shall report such records directly to the California Labor Commissioner as required by Labor Code Sec. 1771.4. CONTRACTOR shall inform the CITY of the location of the records enumerated under Labor Code Sec. 1776, including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address.
8.10. Employment of Apprentices.
Nothing in this Agreement prevents CONTRACTOR or any SUB -CONTRACTOR from employing properly registered apprentices in the execution of the Agreement.
CONTRACTOR is responsible for compliance with Labor Code section 1777.5 for all apprenticeable occupations. This statute requires that CONTRACTORs and SUBCONTRACTORs must submit Agreement award information to the applicable joint apprenticeship committee, must employ apprentices in apprenticeable occupations in a ratio of not less than one hour of apprentice’s work for every five hours of labor performed by a journeyman (unless an exception is granted under §1777.5), must contribute to the fund or funds in each craft or trade or a like amount to the California Apprenticeship Council, and that CONTRACTORs and SUB-CONTRACTORs must not discriminate among otherwise qualified employees as apprentices solely on the ground of sex, race, religion, creed, national origin, ancestry or color. Only apprentices defined in Labor Code section 3077, who are in training under apprenticeship standards and who have written apprentice Agreements, may be employed on public works in apprenticeable occupations.
8.11. Records Audit
In accordance with Government Code, Section 8546.7, records of both the CITY and CONTRACTOR shall be subject to examination and audit by the Auditor General for a period of three (3) years after final payment.
SECTION 9. PREVAILING WAGES
a. CONTRACTOR shall pay prevailing Wage rates for this Project in accordance with the applicable rates referred to in the CONTRACT DOCUMENTS.
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
b. The following Labor Code sections are hereby referenced and made a part of this Agreement:
1. Section 1775 - Penalty for Failure to Comply with Prevailing Wage Rates.
2. Section 1777.4 - Apprenticeship Requirements.
3. Section 1777.5 - Apprenticeship Requirements.
4. Section 1813 - Penalty for Failure to Pay Overtime.
5. Sections 1810 and 1811 - Working Hour Restrictions.
6. Section 1775 - Payroll Records.
7. Section 1773.8 - Travel and Subsistence Pay.
SECTION 10. INDEMNITY, DEFENSE AND HOLD HARMLESS
a. CONTRACTOR shall indemnify, defend with legal counsel approved by the CITY, and hold harmless the CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with CONTRACTOR's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the CITY . Should conflict of interest principles preclude a single legal counsel from representing both the CITY and CONTRACTOR, or should the CITY otherwise find CONTRACTOR’s legal counsel unacceptable, then CONTRACTOR shall reimburse the CITY its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. CONTRACTOR shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of CONTRACTOR’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.
b. CONTRACTOR obligations under this section apply regardless of whether such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of the CITY under any provision of this agreement, CONTRACTOR shall not be required to indemnify and hold harmless the CITY for liability attributable to the active negligence of CITY , provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where the CITY is shown to have been actively negligent and where the CITY’S active negligence accounts for only a percentage of the liability involved, the obligation of CONTRACTOR will be for that entire portion or percentage of liability not attributable to the active negligence of the CITY.
SECTION 11. BONDS
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
a. CONTRACTOR, before commencing said PROJECT, shall furnish and file with the CITY, a P erformance Bond, or bonds in the sum of one hundred percent (100%) of the Agreement price thereof conditioned upon the faithful performance of this Agreement in the form attached hereto as Exhibit “B.”.
b. CONTRACTOR, before commencing said PROJECT, shall furnish and file with CITY, a Payment Bond in the sum of 100% of the Agreement price, conditioned upon the payment of all labor and materials furnished in connection with this Agreement in the form attached hereto as Exhibit “C.”
SECTION 12. INSURANCE REQUIREMENTS
a. Prior to commencing work hereunder, CONRACTOR shall provide the CITY with proof of insurance naming the CITY and each of its directors, officers, agents, and employees as additional-named insureds on a policy or policies of insurance providing and maintaining the coverages set forth in the Insurance Schedule attached hereto as Exhibit A . The CITY shall have the right to hold the policies and policy renewals, and CONTRACTOR shall promptly furnish to CITY all renewal notices and all receipts of paid premiums. CITY may make proof of loss if not made promptly by CONTRACTOR.
b. Evidence of Insurance prior to commencement. CONTRACTOR shall provide to the CITY Certificate(s) of Insurance evidencing such coverage together with copies of the required policy endorsements no later than five (5) business days prior to commencement of service and at least fifteen (15) business days prior to the expiration of any policy. Unreasonable failure to provide such evidence may be cause for termination of the Agreement as provided herein or delay the services’ commencement date. The evidence of insurance shall be U.S. mail or email to:
City of Montebello
Attn: Risk Manager
1600 West Beverly Boulevard
Montebello, CA 90640
Email: [email protected]
SECTION 13. LIQUIDATED DAMAGES
In addition, pursuant to the authority of California Public Contract Code Section 7102, the CITY and CONTRACTOR agree that the determination of actual damages for any unreasonable delay in performance of this Agreement caused by CONTRACTOR would be extremely difficult or impractical to determine in the event of a breach of this Agreement by the CONTRACTOR. Therefore , if the CONTRACTOR is determined to be liable for such unreasonable delays, the CONTRACTOR and its sureties shall be liable to the C ITY for the sum of Five Hundred Dollars ($500.00) as liquidated damages for each working day of delay in the performance of any service required hereunder . Such sum is liquidated damages and shall not be construed as a penalty and may be deducted from payments due the Contractor if such delay occurs.
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
SECTION 14. DISPUTE RESOLUTION
14.1. Claims of $375,000 or Less
a. A claim by the CONTRACTOR for a time extension, for money damages for work, or a payment disputed by the CITY must be submitted to a resolution process in accordance with Public Contract Code Sections 20104-20104.4. A summary of Sections 20104-20104.4 are as follows:
(1) Informal negotiation between the CITY and CONTRACTOR. (2) Mediation with CONTRACTOR.
(3) Court mandated Arbitration.
(4) Court trial. If the party requesting the court trial does not prevail, then that party must pay all court costs and attorney's fees.
14.2 Public Contract Code 9204 Claims
CONTRACTOR shall comply with the procedure set forth in Public Contract Code section 9204 for any claim, as that term is defined therein, for one or more of the following:
1) a time extension, including, without limitation, for relief from damages or penalties for delay, 2) payment of money or damages arising from work done pursuant to this Agreement, and/or 3) payment of an amount disputed by the CITY under this Agreement. A summary of the provisions of Public Contract Code Section 9204 is as follows:
1. CONTRACTOR must send a claim to the CITY for a time extension, payment for work not in the Agreement, or payments disputed by the CITY by registered mail or certified mail with return receipt requested.
2. The CITY must respond within 45 days as to which claims are disputed and undisputed.
3. If claim remains in dispute, CONTRACTOR may request informal meet and confer meeting with the CITY.
4. After meet and confer, an disputed claim remaining shall be submitted to non- binding mediation.
5. All undisputed claims shall be paid within 60 days.
SECTION 15. TERMINATION.
15.1. Termination for Convenience.
The CITY may terminate this Agreement , in whole or in part, with thirty ( 30) days’ written notice to CONTRACTOR when it is in the CITY’s best interest. CONTRACTOR shall be paid its costs, including Agreement close-out costs, and profit on work performed up to the time of termination. CONTRACTOR shall promptly submit its termination claim to the CITY to be paid the CONTRACTOR. If CONTRACTOR has any property in its possession belonging to the CITY, CONTRACTOR will account for the same, and dispose of it in the manner the CITY directs. CONTRACTOR may terminate this Agreement, in whole, with ninety (90) days’ written notice to the CITY.
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
15.2 Termination for Default.
If at any time CONTRACTOR is determined to be in material breach of the Agreement, a Notice of Potential Breach of Agreement shall be prepared by the CITY, and will be served upon CONTRACTOR and its sureties. If CONTRACTOR continues to neglect or refuses to comply with the Agreement or with the Notice of Potential Breach of Agreement to the satisfaction of the CITY within the time specified in such Notice, the CITY shall have the authority to terminate the Agreement for this Project.
15.3 Waiver of Remedies for any Breach.
In the event that the CITY elects to waive its remedies for any breach by CONTRACTOR of any covenant, term or condition of this Agreement , such waiver by the CITY shall not limit the CITY’s remedies for any succeeding breach of that or of any other term, covenant, or condition of the Agreement.
SECTION 16. CONTRACTOR'S FAILURE TO PROCURE COMPLETION OF
PROJECT
In the event CONTRACTOR fails to furnish tools, equipment, or labor in the necessary quantity or quality, or fails to prosecute the work or any part thereof contemplated by this Agreement in a diligent and workmanlike manner, and if CONTRACTOR for a period of three (3) calendar days after receipt of written demand from the CITY or its designated representative to do so, fails to furnish tools, equipment, or labor in the necessary quantity or quality, and to prosecute its work and all parts thereof in a diligent and workmanlike manner, or after commencing to do so within said three (3) calendar days, fails to continue to do so; then the CITY may exclude CONTRACTOR from the premises, or any portion thereof, and take possession of said premises or any portion thereof, together with all material and equipment thereon, and may complete the work contemplated by this Agreement or any portion of said work, either by furnishing the tools, equipment, labor or material necessary, or by letting the unfinished portion of said work, or the portion taken over by the CITY to another contractor or by a combination of such methods. In any event, the procuring of the completion of said work, or the portion thereof taken over by the CITY, shall be a charge against CONTRACTOR, and may be deducted from any money due or becoming due to CONTRACTOR from the CITY, or CONTRACTOR shall pay the CITY the amount of said charge, or the portion thereof unsatisfied. The sureties provided for under this Agreement shall become liable for payment should CONTRACTOR fail to pay in full any said cost incurred by the CITY.
SECTION 17. COMPLIANCE WITH APPLICABLE LAWS
CONTRACTOR hereby promises and agrees to comply with all provisions of all applicable state and federal laws in connection with the performance of its obligations under this Agreement.
SECTION 18. NOTICE OF COMPLETION
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
Upon completion of the PROJECT and acceptance of same by the City Council, the CITY shall have cause to be recorded a Notice of Completion with the office of the Los Angeles County Recorder; and, after thirty -five (35) days from the date said Notice of Completion is recorded, the Director of Finance of CITY shall release the funds retained pursuant to SEC. 4 hereof; provided there have been no mechanics’ liens or stop notices filed against said work which have not been paid, withdrawn or eliminated as liens against said work.
SECTION 19. AUTHORITY
Any person executing this Agreement on behalf of CONTRACTOR warrants and represents that he or she has the authority to execute this Agreement on behalf of CONTRACTOR and has the authority to bind CONTRACTOR to the performance of its obligations hereunder.
SECTION 20. ENTIRE AGREEMENT
This Agreement, including the Agreement Documents and any other documents incorporated herein by specific reference, represents the entire and integrated Agreement between the CITY and the CONTRACTOR. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties that expressly refers to this Agreement.
SECTION 21. ATTORNEY’S FEES AND COSTS
If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement , the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation.
All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.
SECTION 22. INDEPENDENT CONTRACTOR
CONTRACTOR is and shall at all times remain as to the CITY , a wholly independent CONTRACTOR. Neither the CITY , nor any of its officers, employees or agents shall have control over the conduct of CONTRACTOR or any of CONTRACTOR’S officers, employees or agents, except as herein set forth. CONTRACTOR shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the CITY , nor shall the CITY officers, employees or agents be deemed the officers, employees, or agents of CONTRACTOR as a result of this Agreement.
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
SECTION 23. NOTICE
All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered via e- mail (an “Electronic Notice” as further defined below), personally or on the second (2nd) business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals hereunder shall be given to the following addresses or such other addresses as the Parties may designate by written notice:
To the CITY: City of Montebello
Attn: Raul Alvarez, City Manager
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200
Email: [email protected]
With copy to: City of Montebello – Department of Public Works Attn: Cesar Roldan, Public Works Director
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1462
Email: [email protected]
To CONTRACTOR: Monarka Development Corporation DBA Express Sign & Neon Attn: Edgar Aceituno, CEO
Address: 2327 Southwest Drive
Los Angeles, CA 90043
(323) 291-3333
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.
SECTION 24. PROHIBITION AGAINST ASSIGNMENT
The experience, knowledge, capability and reputation of CONTRACTOR, its principals and employees were a substantial inducement for the CITY to enter into this Agreement. Neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of the CITY. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of CONTRACTOR, taking all transfers into account on a cumulative basis. In the event of any
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release CONTRACTOR or any surety of CONTRACTOR of any liability hereunder without the express consent of the CITY.
SECTION 25. CUMULATIVE REMEDIES
The provisions of this Agreement are cumulative and in addition to and not in limitation of any rights or remedies available to the CITY.
SECTION 26. COUNTERPARTS
This Agreement may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.
[SIGNATURE PAGE TO FOLLOW]
STANDARD PUBLIC WORKS AGREEMENT NO. 4448
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed on the date next to their respective officers duly authorized signatures in that behalf.
CITY OF MONTEBELLO
(“CITY”)
By: ___________________________________
Raul Alvarez, City Manager
Date: __________________________________
ATTEST:
_____________________________________
Christopher Jimenez, City Clerk
APPROVED AS TO FORM
_______________________________________
Arnold M. Alvarez-Glasman, City Attorney
MONARKA DEVELOPMENT CORP.
(“CONTRACTOR”)
By: ________________________________
Edar Aceituno, CEO
Date: ________________________________
By: ________________________________
Janette Aceituno, CFO
Date:____________________________
EXHIBITS:
• Exhibit A – Insurance Requirements
• Exhibit B – Performance Bond
• Exhibit C – Labor and Materials Payment Bond
• Exhibit D – Contractor’s Proposal
EXHIBIT “A”
INSURANCE REQUIREMENTS
On or before beginning any of the work called for by any term of this Agreement , CONTRACTOR, at its own cost and expense, shall carry, maintain for the duration of this Agreement, and provide proof thereof that is acceptable to the CITY of its procurement of the insurance specified below from insurers and under forms of insurance satisfactory in all respects to the CITY. Such insurance shall not be in derogation of CONTRACTOR ’s obligations to provide indemnity under this Agreement.
1. Comprehensive General Liability and Automobile Liability Insurance Coverage.
CONTRACTOR shall carry and maintain Comprehensive General Liability and Automobile Liability Insurance which provides the following:
Minimum coverage: Bodily injury limits of $ 1,000,000 for each person and $1 ,000,000 for each occurrence; property damage limits of $1 ,000,000 for each occurrence, $2,000,000 aggregate.
Products/Completed Operations Hazard Insurance in an amount of not less than TWO MILLION DOLLARS ($2,000,000);
A combined single limit policy with aggregate limits in an amount of not less than TWO MILLION DOLLARS ($ 2,000,000) shall be considered equivalent to the said required minimum limits set forth herein above.
If a Commercial General Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non- owned real property and automobiles. Insurance coverage shall not be subject to any type of pollution exclusion or owned property exclusions.
2. Automobile Liability.
CONTRACTOR shall carry and maintain Automobile Liability Insurance which provides a minimum coverage of at least $1 ,000,000 per accident for bodily injury and property damage.
3. Worker's Compensation.
CONTRACTOR shall carry and maintain worker’s compensation in the amount of $1,000,000 as required by the California Labor Code for all persons employed directly or indirectly in connection with this Agreement by CONTRACTOR. To the extent that
CONTRACTOR utilizes any SUB-CONTRACTOR for the performance of any part of the work under this Agreement , CONTRACTOR shall require and assure that such SUB- CONTRACTOR also carry and maintain worker’s compensation as required by the California Labor Code for all persons directly or indirectly in connection with this Agreement.
4. Additional Insureds.
The CITY, its officers, agents and employees must be named as additional insureds or as additional loss payees in all insurance policies required by this Agreement . An endorsement to this effect shall be delivered to the CITY prior to the commencement of any work. Satisfaction of any deductible requirement shall be the responsibility of CONTRACTOR. Such insurance shall be primary and noncontributory with any other insurance maintained by the CITY.
5. Notice of Cancellation.
CONTRACTOR agrees to oblige its insurance agent or broker and insures to provide CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
6. Severability Clause.
Each of the policies of insurance shall contain a clause substantially as follows:
The insurance afforded by this policy applies separately to each insured against whom a claim or suit is made or suit is brought, except with respect to the limit of the insurer's liability.
7. Qualifications of Insurer.
All policies of insurance shall be issued by an insurance company acceptable to the CITY and authorized to issue said policy in the State of California.
8. Approval of Insurer.
The insurance carrier providing the insurance shall be chosen by CONTRACTOR subject to approval by the CITY, provided that such approval shall not be unreasonably withheld.
9. Payment of Premiums.
All premiums on insurance policies shall be paid by CONTRACTOR making payment, when due, directly to the insurance carrier, or in a manner agreed to by the CITY.
10. Subrogation.
To the fullest extent permitted by law, the Contractor hereby waives its rights and its insurer(s)’ rights of recovery against the City of Montebello under all the required insurance for any loss arising from or relating to this Contract. The Contractor shall require its insurers to execute any waiver of subrogation endorsements which may be necessary to effect such waiver.
11. Evidence of Insurance and Claims.
CONTRACTOR shall provide certificates of insurance to the CITY as evidence of insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. The CITY ’s Risk Manager must approve insurance certificates and endorsements prior to commencement of performance. Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement. The CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.
(Use of City Bond Form is Required)
EXHIBIT “B”
PERFORMANCE BOND
PUBLIC WORK
(CALIFORNIA)
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, the Principal and the City of Montebello (“ Obligee”) have entered into a written Agreement, hereinafter called the Agreement , a copy of which is or may be attached hereto, dated the ______ day of ____________________, ______ referred to and made a part hereof for __________________________________________________________________________ and all appurtenant work in accordance with Project No. , which agreement requires the Principal to provide Obligee with this bond.
NOW THEREFORE, we, _______________________________________, as Principal, and ___________________________________________, a corporation organized under the laws of _________________________, and duly authorized to transact business in the State of California, as Surety, are held firmly bound unto the City of _____________________________, as Obligee, in the sum of _________________________________________________________________ Dollars ($_______________________), lawful money of the United States of America, for the payment whereof well and truly to be made the Principal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
The address at which the Surety may be served with notices, papers and other documents is:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
The address at which the Principal may be served with notices, papers and other documents is:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
The condition of the foregoing obligation is such that if the Principal, his or its heirs, executors, administrators, successors or assigns, and each of his or its SUB -CONTRACTORs shall well and truly perform and fulfill all the undertakings, covenants, terms, conditions, and agreements of said Agreement, and during the life of any guaranty required under the Agreement, and shall also well and truly perform and fulfill all the undertakings, covenants, terms, conditions, and agreements of any and all duly authorized modifications of said Agreement that may hereafter be made, then this obligation shall be void; otherwise it shall be and remain in full force and effect.
As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the obligee in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it
does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications.
This document is signed by the respective parties on the dates next to their names.
Principal
By: __________________________________
Title: ________________________________
Surety
By: __________________________________
Title: ________________________________
Date: ________________________________
Date: ________________________________
I declare under penalty of perjury under the laws of the State of California that the contents of the above Faithful Performance Bond are true and correct, and that I have been duly authorized to sign this Faithful Performance Bond on behalf of Surety. This Declaration is signed on , in the City of , State of California.
--OR--
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document
State of California )
)
County of ___________________________ )
On ______________ before me, ____________________________________(here insert name and title of the officer), personally appeared
___________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature __________________________________ (Seal)
-- AND –
(Proof of signature authorization or power of attorney must be attached)
APPROVED AS TO FORM:
_________________________
City Attorney
(Use of City Bond Form is Required)
EXHIBIT “C”
Labor and Materials Payment Bond
PUBLIC WORK (CALIFORNIA)
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, ________________________________________, as Principal, has entered into an Agreement dated ___________________, _____, (the " Agreement") with the City of _____________________________ (Obligee) referred to and made a part hereof to perform the following work of public improvement, to wit:
________________________________________________________________________________ ________________________________________________________________________________ ____________________________________________________________________and all appurtenant work in accordance with the plans and specifications for Project No._______, which requires Principal to file this bond to secure claims made under Civil Code Sections 9550-9554..
NOW THEREFORE, we, ____________________________________, as Principal, and ___________________________________________, a corporation organized under the laws of ______________________ and duly authorized to transact business in the State of California, as Surety, are held firmly bound unto the City of _____________________________, as Obligee, and all SUB-CONTRACTORs, laborers, material persons and other persons employed in the performance of the referenced agreement, in the sum of
_________________________________________________ Dollars ($_______________________), lawful money of the United States of America, which is 100% of the amount of the Agreement, for the payment whereof well and truly to be made the Principal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
The address at which the Surety may be served with notices, papers and other documents is:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
The address at which the Principal may be served with notices, papers and other documents is:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
If the above bounden Principal, his or its heirs, executors, administrators, successors, assigns, or any of his or its SUB -CONTRACTORs, fails to pay for any materials, provisions, provender, or other supplies, or teams, implements or machinery, used in, upon, for or about the performance of the work a greed to be done, or for any work or labor to persons named in Section 9100 of the Civil Code, or for amounts due under the Unemployment Insurance Code with respect to such work or labor performed under the Ag reement, or for any amounts required to be deducted, withheld and paid over to the Employment Development Department from the wages of employees of the CONTRACTOR and SUB-CONTRACTORs pursuant to Section 13020 of the Unemployment Insurance Code, then the Surety on this bond will pay the same, in an amount not exceeding the sum specified in this bond, and also, in case suit is brought upon this bond, a reasonable attorney's
fee, which shall be awarded by the court to the prevailing party in said suit, said attorney's fee to be taxed as costs in said suit and to be included in the judgment herein rendered.
As part of the obligation secured hereby, the Surety shall not be exonerated or released from the obligation of the bond by any change, alteration, or modification in or of any Agreement , plans, specifications, or agreement pertaining or relating to any scheme or work of improvement or pertaining or relating to the furnishing of labor, materials, or equipment therefor, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme of work of improvement, nor by any rescission or attempted rescission of the Agreement, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such Agreement or agreement, or under the bond, nor, where the bond is given for the benefit of claimants, by any fraud practiced by any person other than the claimant seeking to recover on the bond.
This bond shall inure to the benefit of any and all persons, companies and corporations named in Civil Code Section 9100 so as to give them a right of action in a suit on this bond.
This bond is executed for the purpose of complying with the laws of the State of California designated as Title 3, Chapter 5, Payment Bond, commencing with Section 9550 of the Civil Code of the State of California and all amendments thereto, and shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code of the State of California.
This document is signed by the respective parties on the dates next to their names.
Principal
By: _________________________________
Title: ________________________________
Surety
By: _________________________________
Title: ________________________________
Date: ________________________________
Date: ________________________________
I declare under penalty of perjury under the laws of the State of California that the contents of the above Labor and Materials Payment Bond are true and correct, and that I have been duly authorized to sign this Labor and Materials Payment Bond on behalf of Surety. This Declaration is signed on ______ , in the City of _____, State of California.
--OR--
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document
State of California )
)
County of ___________________________ )
On ______________ before me, ____________________________________(here insert name and title of the officer), personally appeared
___________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature __________________________________ (Seal)
-- AND –
(Proof of signature authorization or power of attorney must be attached)
APPROVED AS TO FORM:
________________________
City Attorney
EXHIBIT “D”
Contractor’s Proposal
Item No. Description Quantities Unit Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount Unit Price Total Amount 1 MOBILIZATION 1 LS $2,950.00 $2,950.00 $2,900.00 $2,900.00 $8,000.00 $8,000.00 $5,000.00 $5,000.00 2 TRAFFIC CONTROL 1 LS $850.00 $850.00 $1,300.00 $1,300.00 $1,500.00 $1,500.00 $9,200.00 $9,200.00 3 IMPLEMENTATION OF BMPs 1 LS $940.00 $940.00 $1,200.00 $1,200.00 $500.00 $500.00 $2,800.00 $2,800.00 4 ELECTRONIC BILLBOARD, 6MM PIXEL
WATCHFIRE LED DISPLAY 1 LS $88,120.00 $88,120.00 $90,610.00 $90,610.00 $104,177.00 $104,177.00 $165,000.00 $165,000.00 5 $0.00 $0.00 $0.00
6 $0.00 $0.00 $0.00
$92,860.00 $96,010.00 $114,177.00 $182,000.00
VOLTAIRE ENGINEERING BRAVO SIGN & DESIGN
Attachment B - Bid Results
LED SIGN CITY HALL ( CP-933)
TOTALS
MONARKA DEVELOPMENT SQUARE SIGNS LLC
Attachment B
ITEM # 16
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: Cesar Roldan, Director of Public Works
SUBJECT: AWARD AGREEMENT NO. 4449 TO CARTER ENTERPRISE GROUP, INC. (DBA PAVEMENT REHAB COMPANY) FOR THE CITYWIDE
AMERICANS WITH DISABILITIES ACT (ADA) ENHANCEMENTS (CP
939)
DATE: January 14, 2026
RECOMMENDATIONS:
It is recommended that the City Council:
1. Award Construction Contract Agreement to Pavement Rehab Company for the Citywide ADA Enhancements Project (CP 939) as the most responsive, responsible bidder for the amount of $1,234,000; and
2. Approve a fifteen percent (15%) construction contingency in the amount of $185,100; and
3. Authorize the City Clerk’s Office to release all other bidders’ bonds; and
4. Authorize the City Manager to execute the construction agreement and all change orders in good faith; and
5. Take such additional, related action that may be desirable.
FISCAL IMPACT:
Staff recommend awarding Agreement No. 4449 to Pavement Rehab Company as the most responsive and responsible bidder for the amount of $1,234,000. Additionally, a fifteen percent (15%) construction contingency in the amount of $185,100 is requested in the event of any unforeseen unaccounted costs, risks, events, or changes in scope that may affect the project’s cost over the course of its life, bringing the total contract amount to $1,419,100. The project -- citywide Americans with Disabilities (ADA) enhancements (CP 939) is part of the adopted Fiscal Year 2025-26 Capital Improvement Program (CIP) budget.
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
The project costs will utilize appropriations from multiple funding sources: Account No. 222-99-7116 (Measure M, Non-Departmental, Improvements Other Than Building) in the amount of $375,000, Account 220-99-7116 (Measure R, Non-Departmental, Improvements Other Than Building) in the amount of $375,000, Account 215-99-7117 (Proposition C, Non-Departmental, Improvements Other Than Building – Paving The Way) in the amount of $375,000, and Account 210-99-7116 (Proposition A, Non- Departmental, Improvements Other Than Building) in the amount of $294,100. These appropriations are included in the FY 2025-26 budget, therefore no budget amendment is needed as part of the recommended actions.
BACKGROUND/DISCUSSION:
On November 12, 2025, City Council authorized adoption of specifications for the Citywide Americans with Disabilities Act (ADA) Enhancements project (CP 939) and to proceed with bid advertisement. Staff have identified locations across all five City Council districts for the removal and replacement of damaged and lifted sidewalks in an effort to improve ADA paths of travel. Many sidewalks have been damaged and lifted several inches due to tree root intrusion, creating safety hazards for pedestrians. The work will be carried out in conjunction with the Sidewalk Improvements Project (CP 941) and will address areas where sidewalk displacement exceeds 2½ inches of lift.
The Notice Inviting Bids (NIB) was published on November 13, 2025, in a local newspaper of general circulation. Bidders accessed the contract specifications via PlanetBids. A total of nine (9) bids were received electronically via PlanetBids on December 10, 2025. The following is the tabulation based on the lowest to the highest bids received:
No. Contractors Bid Totals ($)
1 Towo Enterprise, Inc. $1,165,240.00
2 Pavement Rehab Company $1,234,000.00
3 CJ Concrete Construction, Inc. $1,282,000.00
4 Greenfield Landscaping & Construction $1,586,888.00
5 PaveCo Construction, Inc. $1,631,470.00
6 Vido Samarzich, Inc. $1,678,080.00
7 Hardy & Harper, Inc. $1,774,300.00
8 Axiom Group $1,920,200.00
9 CT&T Concrete Paving, Inc. $1,969,950.00
In accordance with the City’s procurement policies, staff conducted a comprehensive review of all submitted bids, including an evaluation of bidder responsiveness and responsibility. Based on this review and analysis, staff determined that the second lowest bidder satisfied all requirements and is the lowest most responsible and responsive bidder. Staff recommends award of the construction contract to Pavement Rehab Company (Attachment A). The remaining bid proposals are available in the City Clerk’s Office for review and the itemized bid results for comparative analysis are included in
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
Attachment B.
ENVIRONMENTAL:
N/A
ANALYSIS:
N/A
SUMMARY:
Staff recommend City Council award Agreement No. 4449t to Pavement Rehab Company for the Citywide ADA Enhancements Project (CP 939) for $1,234,000; and additionally, $185,100 in construction contingency in the event of any unforeseen unaccounted costs, risks, events, or changes in scope that may affect the project's cost over the course of its life -- bringing the total project amount to $1,419,100. The project costs will utilize appropriations from multiple funding sources: Account No. 222-99-7116 (Measure M, Non-Departmental, Improvements Other Than Building) in the amount of $375,000, Account 220-99-7116 (Measure R, Non-Departmental, Improvements Other Than Building) in the amount of $375,000, Account 215-99-7117 (Proposition C, Non- Departmental, Improvements Other Than Building – Paving The Way) in the amount of $375,000, and Account 210-99-7116 (Proposition A, Non-Departmental, Improvements Other Than Building) in the amount of $294,100. This project is included in the adopted FY 2025-26 CIP budget, therefore no budget amendments are needed as part of the recommended actions.
Additionally, staff requests that the City Council authorize the City Clerk’s Office to release all other bidders’ bonds; and authorize the City Manager to execute the contract and all change orders in good faith.
ATTACHMENT(S)
1. Attachment A - Agr. No. 4449 - Carter Enterprise Group, Inc.
2. Attachment B - Bid Results - CP939 ADA Enhancements (Citywide)
PUBLIC WORKS AGREEMENT NO. 4449
WITH CARTER ENTERPRISE GROUP, INC.
THIS STANDARD PUBLIC WORKS AGREEMENT (“AGREEMENT”) is made and entered into on January 14, 2026 , (“Effective Date”) by and between the CITY OF MONTEBELLO, a California municipal corporation (the “CITY”) and CARTER ENTERPRISE GROUP, INC. , a California corporation doing business as Pavement Rehab Company (“CONTRACTOR”). The CITY and CONTRACTOR are sometimes referred to herein individual as the “Party,” and jointly as the “Parties.”
RECITALS
WHEREAS, the CITY duly advertised a Notice Inviting Bids on November 13, 2025, C.P. No. 93 9 for Citywide Americans with Disabilities Act (ADA) Enhancements project (“PROJECT”).
WHEREAS, on January 14, 2026, the City Council accepted the bid of CONTRACTOR as the lowest responsible, responsive bid received and directed that a written contract be entered into with CONTRACTOR for the PROJECT.
NOW, THEREFORE, in consideration of the promises and the mutual covenants and agreements herein contained, the parties do hereby agree as follows:
SECTION 1. INCORPORATION OF RECITALS AND CONTRACT DOCUMENTS
a. The above-referenced Recitals constitute a material part hereof and shall hereby be incorporated by reference. Moreover , the (“CONTRACT DOCUMENTS”) for the PROJECT shall consist of the Notice Inviting Sealed Bids, the Instructions to Bidders, Bidders Proposal, Add endums, CONTRACTOR’s Bid for the PROJECT , Scope of Work, general specifications and all referenced specifications, details, standard drawings, and appendices, together with this Agreement and all required bonds, and insurance certificates. All of the CONTRACT DOCUMENTS are intended to complement the other documents so that any work called for in one, and not mentioned in the others, or vice versa, is to be executed the same as if mentioned in all of said documents. The CONTRACT DOCUMENTS are incorporated herein by this reference and made part hereof as though they were fully set forth herein.
b. In case any of the CONTRACT DOCUMENTS conflict with each other, the order of preference for the CONTRACT DOCUMENTS is:
1. This AGREEMENT and its Exhibits and or Attachments, including any and all addenda or supplemental agreements.
2. Appendices
3. Standard drawings
4. Details
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
5. Special Provisions, if any
6. Addendums
7. General Specifications and all referenced specifications
8. Bidders Proposal
9. Instructions to Bidders
10. Notice Inviting Sealed Bids
SECTION 2. THE WORK
For and in consideration of the payments and agreements to be made and performed by the CITY, CONTRACTOR agrees to furnish all materials and perform all work required for the PROJECT and to fulfill all other obligations as set forth in the CONTRACT DOCUMENTS.
SECTION 3. TERM; AND TIME FOR COMPLETION
a. This Agreement shall expire June 30, 2027, 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.
SECTION 4. COMPENSATION
CONTRACTOR hereby agrees to receive and accept the total amount of One Million Two Hundred Thousand Thirty-Four Dollars ($1,234,000), which is based on performing all of the work shown on Bidders Proposal as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder . Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the CONTRACT DOCUMENTS, and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work. CITY shall herein retain five percent (5%) of said price until said time as the provisions of SEC. 18 herein have been met.
4.1. Progress Payments
Progress Payments shall be made in accordance with Section 7 the General Provisions and the provisions of this Section 4.1. Upon receipt of a properly presented payment request, the CITY shall process the payment request in accordance with Public Contract Code Section 20104.5 0. The CITY shall review the payment request as soon as possible. If the CITY rejects the payment request, it shall be returned to the CONTRACTOR
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
within seven (7) days of its receipt by the CITY with an explanation for the reasons of its rejection. If the payment request is approved in writing by the CITY, payment shall be made in thirty (30) days of receipt of an undisputed and properly presented payment request.
Late payments shall bear interest at the legal rate of interest in accordance with Code of Civil Procedure 685.010. The CITY shall pay CONTRACTOR a sum based upon ninety five percent (95%) of the Agreement price apportionment of the labor and materials incorporated into the work under the Agreement during the period covered by said statement. The remaining five percent (5%) thereof shall be retained as performance security. Refer to Section 4.2 of this Agreement for retention of funds.
4.2. Retention of Funds
Progress payments shall be made in accordance with the provisions of Section 4.1 of this Agreement. In accordance with said section, the CITY shall pay CONTRACTOR a sum based upon ninety five percent (95%) of the Agreement price in proportion to the labor and materials incorporated into the work under the Agreement during the month covered by said statement. The remaining five percent (5 %) thereof shall be retained as performance security to be paid to the CONTRACTOR within sixty (60) days after final acceptance of the work by the City Council of the CITY (“City Council”) , after CONTRACTOR shall have furnished the CITY with a release of all undisputed Agreement amounts, if required by the CITY. In the event there are any claims specifically excluded by CONTRACTOR from the operation of the release, the CITY may retain proceeds (per Public Contract Code 7107) of up to 150% of the amount in dispute. CITY ’s failure to deduct or withhold shall not affect CONTRACTOR’s obligations hereunder.
4.3. Substitution of Securities
Pursuant to Public Contract Code Sec. 22300, CONTRACTOR shall be allowed to substitute securities for any moneys withheld by the CITY to ensure performance under an Agreement, unless, federal regulations or policies, or both, do not allow the substitution of securities. At the request and expense of CONTRACTOR, securities equivalent to the amount withheld shall be deposited with the CITY , or with a state or federally chartered bank in this state as the escrow agent, who shall then pay those moneys to CONTRACTOR.
Upon satisfactory completion of the Agreement, the securities shall be returned to CONTRACTOR.
SECTION 5. UNDOCUMENTED WORKERS
CONTRACTOR hereby promises and agrees to comply with all of the provisions of Federal and/or State law as the same shall apply to this PROJECT pertaining to the employment of unauthorized aliens as defined therein. Should CONTRACTOR so employ unauthorized aliens for the performance of work and/or services covered by this Agreement, and should the Federal Government impose sanctions against the CITY for use of unauthorized aliens, CONTRACTOR hereby agrees to, and shall, hold harmless, indemnify and defend CITY for the cost of all such sanctions imposed, together with any and all costs, including attorneys’ fees, incurred by the CITY in connection therewith.
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
SECTION 6. NOTICE TO PROCEED
CONTRACTOR shall commence work on the date specified in the Notice to Proceed to be issued in writing to CONTRACTOR by the CITY and shall complete work on the PROJECT within Ninety (90) Working Days from the commencement thereof.
SECTION 7. DISCOVERY OF HAZARDOUS OR LATENT CONDITIONS
a. CONTRACTOR shall, without disturbing the condition, notify the CITY in writing as soon as CONTRACTOR, or any SUB -CONTRACTOR, agent or employees have knowledge and reporting is possible, of the discovery of any of the following conditions:
1. The presence of any material that the CONTRACTOR believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code;
2. Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or,
3. Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Agreement.
b. Pending a determination by the CITY of appropriate action to be taken, CONTRACTOR shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person.
c. The CITY shall promptly investigate the reported conditions. If the CITY, through the City Engineer or his/her designee, and in the exercise of its sole discretion, determines that the conditions do materially differ, or do involve hazardous waste, and will cause a decrease or increase in CONTRACTOR’s cost of or time required for performance of any part of the work, then the CITY shall issue a change order.
d. In the event of a dispute between the CITY and CONTRACTOR as to whether the conditions materially differ or involve hazardous waste or cause a decrease or increase in CONTRACTOR’s cost of, or time required for performance of any part of the work, CONTRACTOR shall not be excused from any schedule completion date, and shall proceed with all work to be performed under the Agreement . CONTRACTOR shall retain any and all rights which pertain to the resolution of disputes and protests between the parties.
SECTION 8. MISCELLANEOUS STATUTORY REQUIREMENTS
8.1. CONTRACTOR License.
CONTRACTOR shall possess a california CONTRACTOR’s license type Class A for the performance of the Project.
8.2. Ineligible CONTRACTOR Prohibited.
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
Any CONTRACTOR or SUB-CONTRACTOR who is ineligible to perform work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code is prohibited from performing work under this Agreement.
8.3. Compliance with SB 854 Registration.
This P ROJECT is subject to compliance monitoring and enforcement by the Department of Industrial Relations. No prime CONTRACTOR or SUBCONTRACTOR may be awarded an Agreement for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. CONTRACTOR will be required to post job site notices as described in 8 California Code of Regulation section 16451(d).
8.4. Trench and Pipeline Safety.
If this Agreement is for more than $25,000 and involves excavation of any trench five feet or more in depth, CONTRACTOR shall submit a detailed plan of shoring, bracing, sloping or other provisions to be made for worker protection in accordance with Labor Code Section 6705. Such plan shall be approved by a qualified representative of the CITY.
8.5. Utility Relocation.
The CITY is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. The CITY shall reimburse CONTRACTOR for any costs incurred in locating, repairing damage not caused by CONTRACTOR and removing or relocating such unidentified utility facilities, including equipment idled during such work. CONTRACTOR shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.
8.6. Third Party Claims Notification.
The CITY shall timely notify CONTRACTOR in writing of any third party claims relating to the Agreement.
8.7. Unfair Business Practices Claims.
The CONTRACTOR or SUB-CONTRACTOR offers and agrees to assign to the CITY all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works Agreement or the sub-Agreement. This assignment shall be made and become effective at the time the CITY renders final payment to CONTRACTOR without further acknowledgment by the parties. (Section 7103.5, California Public Contract Code.).
8.8. Day’s Work.
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
CONTRACTOR acknowledges that under California Labor Code sections 1810 and following, eight (8) hours of labor constitutes a legal day’s work. CONTRACTOR will forfeit as a penalty to CITY the sum of $25.00 for each worker employed in the execution of this Agreement by CONTRACTOR or any SUB -CONTRACTOR for each calendar day during which such worker is required or permitted to work more than eight ( 8) hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Labor Code section 1810. (Labor Code § 1813).
8.9. Payroll Records.
CONTRACTOR shall maintain the certified payroll records required by Labor Codes Sec. 1776 and shall report such records directly to the California Labor Commissioner as required by Labor Code Sec. 1771.4. CONTRACTOR shall inform the CITY of the location of the records enumerated under Labor Code Sec. 1776, including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address.
8.10. Employment of Apprentices.
Nothing in this Agreement prevents CONTRACTOR or any SUB -CONTRACTOR from employing properly registered apprentices in the execution of the Agreement.
CONTRACTOR is responsible for compliance with Labor Code section 1777.5 for all apprenticeable occupations. This statute requires that CONTRACTORs and SUBCONTRACTORs must submit Agreement award information to the applicable joint apprenticeship committee, must employ apprentices in apprenticeable occupations in a ratio of not less than one hour of apprentice’s work for every five hours of labor performed by a journeyman (unless an exception is granted under §1777.5), must contribute to the fund or funds in each craft or trade or a like amount to the California Apprenticeship Council, and that CONTRACTORs and SUB-CONTRACTORs must not discriminate among otherwise qualified employees as apprentices solely on the ground of sex, race, religion, creed, national origin, ancestry or color. Only apprentices defined in Labor Code section 3077, who are in training under apprenticeship standards and who have written apprentice Agreements, may be employed on public works in apprenticeable occupations.
8.11. Records Audit
In accordance with Government Code, Section 8546.7, records of both the CITY and CONTRACTOR shall be subject to examination and audit by the Auditor General for a period of three (3) years after final payment.
SECTION 9. PREVAILING WAGES
a. CONTRACTOR shall pay prevailing Wage rates for this Project in accordance with the applicable rates referred to in the CONTRACT DOCUMENTS.
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
b. The following Labor Code sections are hereby referenced and made a part of this Agreement:
1. Section 1775 - Penalty for Failure to Comply with Prevailing Wage Rates.
2. Section 1777.4 - Apprenticeship Requirements.
3. Section 1777.5 - Apprenticeship Requirements.
4. Section 1813 - Penalty for Failure to Pay Overtime.
5. Sections 1810 and 1811 - Working Hour Restrictions.
6. Section 1775 - Payroll Records.
7. Section 1773.8 - Travel and Subsistence Pay.
SECTION 10. INDEMNITY, DEFENSE AND HOLD HARMLESS
a. CONTRACTOR shall indemnify, defend with legal counsel approved by the CITY, and hold harmless the CITY, its officers, officials, employees and volunteers from and against all liability, loss, damage, expense, cost (including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation) of every nature arising out of or in connection with CONTRACTOR's negligence, recklessness or willful misconduct in the performance of work hereunder or its failure to comply with any of its obligations contained in this Agreement, except such loss or damage which is caused by the sole or active negligence or willful misconduct of the CITY . Should conflict of interest principles preclude a single legal counsel from representing both the CITY and CONTRACTOR, or should the CITY otherwise find CONTRACTOR’s legal counsel unacceptable, then CONTRACTOR shall reimburse the CITY its costs of defense, including without limitation reasonable legal counsel fees, expert fees and all other costs and fees of litigation. CONTRACTOR shall promptly pay any final judgment rendered against the CITY (and its officers, officials, employees and volunteers) with respect to claims determined by a trier of fact to have been the result of CONTRACTOR’s negligent, reckless or wrongful performance. It is expressly understood and agreed that the foregoing provisions are intended to be as broad and inclusive as is permitted by the law of the State of California and will survive termination of this Agreement.
b. CONTRACTOR obligations under this section apply regardless of whether such claim, charge, damage, demand, action, proceeding, loss, stop notice, cost, expense, judgment, civil fine or penalty, or liability was caused in part or contributed to by an Indemnitee. However, without affecting the rights of the CITY under any provision of this agreement, CONTRACTOR shall not be required to indemnify and hold harmless the CITY for liability attributable to the active negligence of CITY , provided such active negligence is determined by agreement between the parties or by the findings of a court of competent jurisdiction. In instances where the CITY is shown to have been actively negligent and where the CITY’S active negligence accounts for only a percentage of the liability involved, the obligation of CONTRACTOR will be for that entire portion or percentage of liability not attributable to the active negligence of the CITY.
SECTION 11. BONDS
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
a. CONTRACTOR, before commencing said PROJECT, shall furnish and file with the CITY, a P erformance Bond, or bonds in the sum of one hundred percent (100%) of the Agreement price thereof conditioned upon the faithful performance of this Agreement in the form attached hereto as Exhibit “B.”.
b. CONTRACTOR, before commencing said PROJECT, shall furnish and file with CITY, a Payment Bond in the sum of 100% of the Agreement price, conditioned upon the payment of all labor and materials furnished in connection with this Agreement in the form attached hereto as Exhibit “C.”
SECTION 12. INSURANCE REQUIREMENTS
a. Prior to commencing work hereunder, CONRACTOR shall provide the CITY with proof of insurance naming the CITY and each of its directors, officers, agents, and employees as additional-named insureds on a policy or policies of insurance providing and maintaining the coverages set forth in the Insurance Schedule attached hereto as Exhibit A . The CITY shall have the right to hold the policies and policy renewals, and CONTRACTOR shall promptly furnish to CITY all renewal notices and all receipts of paid premiums. CITY may make proof of loss if not made promptly by CONTRACTOR.
b. Evidence of Insurance prior to commencement. CONTRACTOR shall provide to the CITY Certificate(s) of Insurance evidencing such coverage together with copies of the required policy endorsements no later than five (5) business days prior to commencement of service and at least fifteen (15) business days prior to the expiration of any policy. Unreasonable failure to provide such evidence may be cause for termination of the Agreement as provided herein or delay the services’ commencement date. The evidence of insurance shall be U.S. mail or email to:
City of Montebello
Attn: Risk Manager
1600 West Beverly Boulevard
Montebello, CA 90640
Email: [email protected]
SECTION 13. LIQUIDATED DAMAGES
In addition, pursuant to the authority of California Public Contract Code Section 7102, the CITY and CONTRACTOR agree that the determination of actual damages for any unreasonable delay in performance of this Agreement caused by CONTRACTOR would be extremely difficult or impractical to determine in the event of a breach of this Agreement by the CONTRACTOR. Therefore , if the CONTRACTOR is determined to be liable for such unreasonable delays, the CONTRACTOR and its sureties shall be liable to the C ITY for the sum of Five Hundred Dollars ($500.00) as liquidated damages for each working day of delay in the performance of any service required hereunder . Such sum is liquidated damages and shall not be construed as a penalty and may be deducted from payments due the Contractor if such delay occurs.
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
SECTION 14. DISPUTE RESOLUTION
14.1. Claims of $375,000 or Less
a. A claim by the CONTRACTOR for a time extension, for money damages for work, or a payment disputed by the CITY must be submitted to a resolution process in accordance with Public Contract Code Sections 20104-20104.4. A summary of Sections 20104-20104.4 are as follows:
(1) Informal negotiation between the CITY and CONTRACTOR. (2) Mediation with CONTRACTOR.
(3) Court mandated Arbitration.
(4) Court trial. If the party requesting the court trial does not prevail, then that party must pay all court costs and attorney's fees.
14.2 Public Contract Code 9204 Claims
CONTRACTOR shall comply with the procedure set forth in Public Contract Code section 9204 for any claim, as that term is defined therein, for one or more of the following:
1) a time extension, including, without limitation, for relief from damages or penalties for delay, 2) payment of money or damages arising from work done pursuant to this Agreement, and/or 3) payment of an amount disputed by the CITY under this Agreement. A summary of the provisions of Public Contract Code Section 9204 is as follows:
1. CONTRACTOR must send a claim to the CITY for a time extension, payment for work not in the Agreement, or payments disputed by the CITY by registered mail or certified mail with return receipt requested.
2. The CITY must respond within 45 days as to which claims are disputed and undisputed.
3. If claim remains in dispute, CONTRACTOR may request informal meet and confer meeting with the CITY.
4. After meet and confer, an disputed claim remaining shall be submitted to non- binding mediation.
5. All undisputed claims shall be paid within 60 days.
SECTION 15. TERMINATION
15.1. Termination for Convenience.
The CITY may terminate this Agreement , in whole or in part, with thirty ( 30) days’ written notice to CONTRACTOR when it is in the CITY’s best interest. CONTRACTOR shall be paid its costs, including Agreement close-out costs, and profit on work performed up to the time of termination. CONTRACTOR shall promptly submit its termination claim to the CITY to be paid the CONTRACTOR. If CONTRACTOR has any property in its possession belonging to the CITY, CONTRACTOR will account for the same, and dispose of it in the manner the CITY directs. CONTRACTOR may terminate this Agreement, in whole, with ninety (90) days’ written notice to the CITY.
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
15.2 Termination for Default.
If at any time CONTRACTOR is determined to be in material breach of the Agreement, a Notice of Potential Breach of Agreement shall be prepared by the CITY, and will be served upon CONTRACTOR and its sureties. If CONTRACTOR continues to neglect or refuses to comply with the Agreement or with the Notice of Potential Breach of Agreement to the satisfaction of the CITY within the time specified in such Notice, the CITY shall have the authority to terminate the Agreement for this Project.
15.3 Waiver of Remedies for any Breach.
In the event that the CITY elects to waive its remedies for any breach by CONTRACTOR of any covenant, term or condition of this Agreement , such waiver by the CITY shall not limit the CITY’s remedies for any succeeding breach of that or of any other term, covenant, or condition of the Agreement.
SECTION 16. CONTRACTOR'S FAILURE TO PROCURE COMPLETION OF
PROJECT
In the event CONTRACTOR fails to furnish tools, equipment, or labor in the necessary quantity or quality, or fails to prosecute the work or any part thereof contemplated by this Agreement in a diligent and workmanlike manner, and if CONTRACTOR for a period of three (3) calendar days after receipt of written demand from the CITY or its designated representative to do so, fails to furnish tools, equipment, or labor in the necessary quantity or quality, and to prosecute its work and all parts thereof in a diligent and workmanlike manner, or after commencing to do so within said three (3) calendar days, fails to continue to do so; then the CITY may exclude CONTRACTOR from the premises, or any portion thereof, and take possession of said premises or any portion thereof, together with all material and equipment thereon, and may complete the work contemplated by this Agreement or any portion of said work, either by furnishing the tools, equipment, labor or material necessary, or by letting the unfinished portion of said work, or the portion taken over by the CITY to another contractor or by a combination of such methods. In any event, the procuring of the completion of said work, or the portion thereof taken over by the CITY, shall be a charge against CONTRACTOR, and may be deducted from any money due or becoming due to CONTRACTOR from the CITY, or CONTRACTOR shall pay the CITY the amount of said charge, or the portion thereof unsatisfied. The sureties provided for under this Agreement shall become liable for payment should CONTRACTOR fail to pay in full any said cost incurred by the CITY.
SECTION 17. COMPLIANCE WITH APPLICABLE LAWS
CONTRACTOR hereby promises and agrees to comply with all provisions of all applicable state and federal laws in connection with the performance of its obligations under this Agreement.
SECTION 18. NOTICE OF COMPLETION
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
Upon completion of the PROJECT and acceptance of same by the City Council, the CITY shall have cause to be recorded a Notice of Completion with the office of the Los Angeles County Recorder; and, after thirty -five (35) days from the date said Notice of Completion is recorded, the Director of Finance of CITY shall release the funds retained pursuant to SEC. 4 hereof; provided there have been no mechanics’ liens or stop notices filed against said work which have not been paid, withdrawn or eliminated as liens against said work.
SECTION 19. AUTHORITY
Any person executing this Agreement on behalf of CONTRACTOR warrants and represents that he or she has the authority to execute this Agreement on behalf of CONTRACTOR and has the authority to bind CONTRACTOR to the performance of its obligations hereunder.
SECTION 20. ENTIRE AGREEMENT
This Agreement, including the Agreement Documents and any other documents incorporated herein by specific reference, represents the entire and integrated Agreement between the CITY and the CONTRACTOR. This Agreement supersedes all prior oral or written negotiations, representations or agreements. This Agreement may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties that expressly refers to this Agreement.
SECTION 21. ATTORNEY’S FEES AND COSTS
If either party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement , the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation.
All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.
SECTION 22. INDEPENDENT CONTRACTOR
CONTRACTOR is and shall at all times remain as to the CITY , a wholly independent CONTRACTOR. Neither the CITY , nor any of its officers, employees or agents shall have control over the conduct of CONTRACTOR or any of CONTRACTOR’S officers, employees or agents, except as herein set forth. CONTRACTOR shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the CITY , nor shall the CITY officers, employees or agents be deemed the officers, employees, or agents of CONTRACTOR as a result of this Agreement.
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
SECTION 23. NOTICE
All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered via e- mail (an “Electronic Notice” as further defined below), personally or on the second (2nd) business day after the deposit thereof in the United States mail, postage prepaid, registered or certified, addressed as hereinafter provided. All notices, demands, requests, or approvals hereunder shall be given to the following addresses or such other addresses as the Parties may designate by written notice:
To the CITY: City of Montebello
Attn: Raul Alvarez, City Manager
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200
Email: [email protected]
With copy to: City of Montebello – Department of Public Works Attn: Cesar Roldan, Public Works Director
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1462
Email: [email protected]
To CONTRACTOR: Carter Enterprise Group, Inc.
Attn: Corey R. Kirschner, CEO
22711 La Palma Ave
Yorba Linda, CA 92887
(714) 238-1444
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.
SECTION 24. PROHIBITION AGAINST ASSIGNMENT
The experience, knowledge, capability and reputation of CONTRACTOR, its principals and employees were a substantial inducement for the CITY to enter into this Agreement. Neither this Agreement nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of the CITY. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of CONTRACTOR, taking all transfers into account on a cumulative basis. In the event of any
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
such unapproved transfer, including any bankruptcy proceeding, this Agreement shall be void. No approved transfer shall release CONTRACTOR or any surety of CONTRACTOR of any liability hereunder without the express consent of the CITY.
SECTION 25. CUMULATIVE REMEDIES
The provisions of this Agreement are cumulative and in addition to and not in limitation of any rights or remedies available to the CITY.
SECTION 26. COUNTERPARTS
This Agreement may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes.
[SIGNATURE PAGE TO FOLLOW]
STANDARD PUBLIC WORKS AGREEMENT NO. 4449
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed on the date next to their respective officers duly authorized signatures in that behalf.
CITY OF MONTEBELLO
(“CITY”)
By: ___________________________________
Raul Alvarez, City Manager
Date: __________________________________
ATTEST:
_____________________________________
Christopher Jimenez, City Clerk
APPROVED AS TO FORM
_______________________________________
Arnold M. Alvarez-Glasman, City Attorney
CARTER ENTERPRISE GROUP, INC.
dba PAVEMENT REHAB COMPANY
(“CONTRACTOR”)
By:
________________________________
Corey R. Kirschner, CEO
Date:
________________________________
By:
________________________________
Richard Devos, CFO
Date:____________________________
EXHIBITS:
• Exhibit A – Insurance Requirements
• Exhibit B – Performance Bond
• Exhibit C – Labor and Materials Payment Bond
• Exhibit D – Contractor’s Proposal
EXHIBIT “A”
INSURANCE REQUIREMENTS
On or before beginning any of the work called for by any term of this Agreement , CONTRACTOR, at its own cost and expense, shall carry, maintain for the duration of this Agreement, and provide proof thereof that is acceptable to the CITY of its procurement of the insurance specified below from insurers and under forms of insurance satisfactory in all respects to the CITY. Such insurance shall not be in derogation of CONTRACTOR ’s obligations to provide indemnity under this Agreement.
1. Comprehensive General Liability and Automobile Liability Insurance Coverage.
CONTRACTOR shall carry and maintain Comprehensive General Liability and Automobile Liability Insurance which provides the following:
Minimum coverage: Bodily injury limits of $ 2,000,000 for each person and $2 ,000,000 for each occurrence; property damage limits of $2 ,000,000 for each occurrence, $5,000,000 aggregate.
Products/Completed Operations Hazard Insurance in an amount of not less than FIVE MILLION DOLLARS ($5,000,000);
A combined single limit policy with aggregate limits in an amount of not less than FIVE MILLION DOLLARS ($ 5,000,000) shall be considered equivalent to the said required minimum limits set forth herein above.
If a Commercial General Liability Insurance form or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the work to be performed under this Agreement or the general aggregate limit shall be at least twice the required occurrence limit. Such coverage shall include but shall not be limited to, protection against claims arising from bodily and personal injury, including death resulting therefrom, and damage to property resulting from activities contemplated under this Agreement, including the use of owned and non- owned real property and automobiles. Insurance coverage shall not be subject to any type of pollution exclusion or owned property exclusions.
2. Automobile Liability.
CONTRACTOR shall carry and maintain Automobile Liability Insurance which provides a minimum coverage of at least $5 ,000,000 per accident for bodily injury and property damage.
3. Worker's Compensation.
CONTRACTOR shall carry and maintain worker’s compensation in the amount of $1,000,000 as required by the California Labor Code for all persons employed directly or indirectly in connection with this Agreement by CONTRACTOR. To the extent that
CONTRACTOR utilizes any SUB-CONTRACTOR for the performance of any part of the work under this Agreement , CONTRACTOR shall require and assure that such SUB- CONTRACTOR also carry and maintain worker’s compensation as required by the California Labor Code for all persons directly or indirectly in connection with this Agreement.
4. Additional Insureds.
The CITY, its officers, agents and employees must be named as additional insureds or as additional loss payees in all insurance policies required by this Agreement . An endorsement to this effect shall be delivered to the CITY prior to the commencement of any work. Satisfaction of any deductible requirement shall be the responsibility of CONTRACTOR. Such insurance shall be primary and noncontributory with any other insurance maintained by the CITY.
5. Notice of Cancellation.
CONTRACTOR agrees to oblige its insurance agent or broker and insures to provide CITY with a thirty (30) day notice of cancellation (except for nonpayment for which a ten (10) day notice is required) or nonrenewal of coverage for each required coverage.
6. Severability Clause.
Each of the policies of insurance shall contain a clause substantially as follows:
The insurance afforded by this policy applies separately to each insured against whom a claim or suit is made or suit is brought, except with respect to the limit of the insurer's liability.
7. Qualifications of Insurer.
All policies of insurance shall be issued by an insurance company acceptable to the CITY and authorized to issue said policy in the State of California.
8. Approval of Insurer.
The insurance carrier providing the insurance shall be chosen by CONTRACTOR subject to approval by the CITY, provided that such approval shall not be unreasonably withheld.
9. Payment of Premiums.
All premiums on insurance policies shall be paid by CONTRACTOR making payment, when due, directly to the insurance carrier, or in a manner agreed to by the CITY.
10. Subrogation.
To the fullest extent permitted by law, the Contractor hereby waives its rights and its insurer(s)’ rights of recovery against the City of Montebello under all the required insurance for any loss arising from or relating to this Contract. The Contractor shall require its insurers to execute any waiver of subrogation endorsements which may be necessary to effect such waiver.
11. Evidence of Insurance and Claims.
CONTRACTOR shall provide certificates of insurance to the CITY as evidence of insurance coverage required herein, along with a waiver of subrogation endorsement for workers’ compensation. The CITY ’s Risk Manager must approve insurance certificates and endorsements prior to commencement of performance. Current certification of insurance shall be kept on file with the CITY at all times during the term of this Agreement. The CITY reserves the right to require complete, certified copies of all required insurance policies, at any time.
(Use of City Bond Form is Required)
EXHIBIT “B”
PERFORMANCE BOND
PUBLIC WORK
(CALIFORNIA)
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, the Principal and the City of Montebello (“ Obligee”) have entered into a written Agreement, hereinafter called the Agreement , a copy of which is or may be attached hereto, dated the ______ day of ____________________, ______ referred to and made a part hereof for __________________________________________________________________________ and all appurtenant work in accordance with Project No. , which agreement requires the Principal to provide Obligee with this bond.
NOW THEREFORE, we, _______________________________________, as Principal, and ___________________________________________, a corporation organized under the laws of _________________________, and duly authorized to transact business in the State of California, as Surety, are held firmly bound unto the City of _____________________________, as Obligee, in the sum of _________________________________________________________________ Dollars ($_______________________), lawful money of the United States of America, for the payment whereof well and truly to be made the Principal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
The address at which the Surety may be served with notices, papers and other documents is:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
The address at which the Principal may be served with notices, papers and other documents is:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
The condition of the foregoing obligation is such that if the Principal, his or its heirs, executors, administrators, successors or assigns, and each of his or its SUB -CONTRACTORs shall well and truly perform and fulfill all the undertakings, covenants, terms, conditions, and agreements of said Agreement, and during the life of any guaranty required under the Agreement, and shall also well and truly perform and fulfill all the undertakings, covenants, terms, conditions, and agreements of any and all duly authorized modifications of said Agreement that may hereafter be made, then this obligation shall be void; otherwise it shall be and remain in full force and effect.
As part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including reasonable attorney's fees, incurred by the obligee in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the agreement or to the work to be performed thereunder or the specifications accompanying the same shall in any way affect its obligations on this bond, and it
does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the agreement or to the work or to the specifications.
This document is signed by the respective parties on the dates next to their names.
Principal
By: __________________________________
Title: ________________________________
Surety
By: __________________________________
Title: ________________________________
Date: ________________________________
Date: ________________________________
I declare under penalty of perjury under the laws of the State of California that the contents of the above Faithful Performance Bond are true and correct, and that I have been duly authorized to sign this Faithful Performance Bond on behalf of Surety. This Declaration is signed on , in the City of , State of California.
--OR--
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document
State of California )
)
County of ___________________________ )
On ______________ before me, ____________________________________(here insert name and title of the officer), personally appeared
___________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature __________________________________ (Seal)
-- AND –
(Proof of signature authorization or power of attorney must be attached)
APPROVED AS TO FORM:
_________________________
City Attorney
(Use of City Bond Form is Required)
EXHIBIT “C”
Labor and Materials Payment Bond
PUBLIC WORK (CALIFORNIA)
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, ________________________________________, as Principal, has entered into an Agreement dated ___________________, _____, (the " Agreement") with the City of _____________________________ (Obligee) referred to and made a part hereof to perform the following work of public improvement, to wit:
________________________________________________________________________________ ________________________________________________________________________________ ____________________________________________________________________and all appurtenant work in accordance with the plans and specifications for Project No._______, which requires Principal to file this bond to secure claims made under Civil Code Sections 9550-9554..
NOW THEREFORE, we, ____________________________________, as Principal, and ___________________________________________, a corporation organized under the laws of ______________________ and duly authorized to transact business in the State of California, as Surety, are held firmly bound unto the City of _____________________________, as Obligee, and all SUB-CONTRACTORs, laborers, material persons and other persons employed in the performance of the referenced agreement, in the sum of
_________________________________________________ Dollars ($_______________________), lawful money of the United States of America, which is 100% of the amount of the Agreement, for the payment whereof well and truly to be made the Principal and Surety bind themselves, their heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
The address at which the Surety may be served with notices, papers and other documents is:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
The address at which the Principal may be served with notices, papers and other documents is:
______________________________________________________________________ ______________________________________________________________________ ______________________________________________________________________
If the above bounden Principal, his or its heirs, executors, administrators, successors, assigns, or any of his or its SUB -CONTRACTORs, fails to pay for any materials, provisions, provender, or other supplies, or teams, implements or machinery, used in, upon, for or about the performance of the work a greed to be done, or for any work or labor to persons named in Section 9100 of the Civil Code, or for amounts due under the Unemployment Insurance Code with respect to such work or labor performed under the Ag reement, or for any amounts required to be deducted, withheld and paid over to the Employment Development Department from the wages of employees of the CONTRACTOR and SUB-CONTRACTORs pursuant to Section 13020 of the Unemployment Insurance Code, then the Surety on this bond will pay the same, in an amount not exceeding the sum specified in this bond, and also, in case suit is brought upon this bond, a reasonable attorney's
fee, which shall be awarded by the court to the prevailing party in said suit, said attorney's fee to be taxed as costs in said suit and to be included in the judgment herein rendered.
As part of the obligation secured hereby, the Surety shall not be exonerated or released from the obligation of the bond by any change, alteration, or modification in or of any Agreement , plans, specifications, or agreement pertaining or relating to any scheme or work of improvement or pertaining or relating to the furnishing of labor, materials, or equipment therefor, nor by any change or modification of any terms of payment or extension of the time for any payment pertaining or relating to any scheme of work of improvement, nor by any rescission or attempted rescission of the Agreement, agreement or bond, nor by any conditions precedent or subsequent in the bond attempting to limit the right of recovery of claimants otherwise entitled to recover under any such Agreement or agreement, or under the bond, nor, where the bond is given for the benefit of claimants, by any fraud practiced by any person other than the claimant seeking to recover on the bond.
This bond shall inure to the benefit of any and all persons, companies and corporations named in Civil Code Section 9100 so as to give them a right of action in a suit on this bond.
This bond is executed for the purpose of complying with the laws of the State of California designated as Title 3, Chapter 5, Payment Bond, commencing with Section 9550 of the Civil Code of the State of California and all amendments thereto, and shall inure to the benefit of any of the persons named in Section 9100 of the Civil Code of the State of California.
This document is signed by the respective parties on the dates next to their names.
Principal
By: _________________________________
Title: ________________________________
Surety
By: _________________________________
Title: ________________________________
Date: ________________________________
Date: ________________________________
I declare under penalty of perjury under the laws of the State of California that the contents of the above Labor and Materials Payment Bond are true and correct, and that I have been duly authorized to sign this Labor and Materials Payment Bond on behalf of Surety. This Declaration is signed on ______ , in the City of _____, State of California.
--OR--
A notary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document
State of California )
)
County of ___________________________ )
On ______________ before me, ____________________________________(here insert name and title of the officer), personally appeared
___________________________________________________________________, who proved to me on the basis of satisfactory evidence to be the person(s) whose name(s) is/are subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instrument the person(s), or the entity upon behalf of which the person(s) acted, executed the instrument.
I certify under PENALTY OF PERJURY under the laws of the State of California that the foregoing paragraph is true and correct.
WITNESS my hand and official seal.
Signature __________________________________ (Seal)
-- AND –
(Proof of signature authorization or power of attorney must be attached)
APPROVED AS TO FORM:
________________________
City Attorney
EXHIBIT “D”
Contractor’s Proposal
Towo Enterprise
Inc
Towo Enterprise
Inc
Pavement Rehab
Company
Pavement Rehab
Company
CJ Concrete
Construction, Inc
CJ Concrete
Construction, Inc
Greenfield
Landscaping &
Construction
Greenfield
Landscaping &
Construction
Paveco
Construction,
Inc.
Paveco
Construction,
Inc.
Vido Samarzich,
Inc. Vido Samarzich, Inc. Hardy & Harper,
Inc
Hardy & Harper,
Inc Axiom Group Axiom Group CT&T Concrete
Paving, Inc.
CT&T Concrete
Paving, Inc.
Item
No. Item Description Qty. Unit Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total Unit Price Total 1 MOBILIZATION (Not to exceed 3% of total of all other prime contract Bid Items) 1 LS $ 25,000.00 $ 25,000.00 $ 22,679.00 $ 22,679.00 $ 2,500.00 $ 2,500.00 $ 46,059.00 $ 46,059.00 $ 42,500.00 $ 42,500.00 $ 40,000.00 $ 40,000.00 $ 16,500.00 $ 16,500.00 $ 57,500.00 $ 57,500.00 $ 50,000.00 $ 50,000.00 2 TRAFFIC CONTROL (Not to exceed 8% of total of all other prime contract Bid Items) 1 LS $ 15,000.00 $ 15,000.00 $ 44,000.00 $ 44,000.00 $ 2,500.00 $ 2,500.00 $ 25,795.00 $ 25,795.00 $ 115,000.00 $ 115,000.00 $ 60,000.00 $ 60,000.00 $ 55,000.00 $ 55,000.00 $ 12,500.00 $ 12,500.00 $ 130,000.00 $ 130,000.00 3 STORM WATER POLLUTION PREVENTION (SWPPP) BMP’S 1 LS $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 5,000.00 $ 2,500.00 $ 2,500.00 $ 10,000.00 $ 10,000.00 $ 7,500.00 $ 7,500.00 $ 20,000.00 $ 20,000.00 $ 4,400.00 $ 4,400.00 $ 12,500.00 $ 12,500.00 $ 14,000.00 $ 14,000.00 4a REMOVE AND CONSTRUCT 4” PCC EXISTING CONCRETE
SIDEWALK 60000 SF $ 10.50 $ 630,000.00 $ 11.00 $ 660,000.00 $ 11.50 $ 690,000.00 $ 11.50 $ 690,000.00 $ 14.25 $ 855,000.00 $ 15.00 $ 900,000.00 $ 16.00 $ 960,000.00 $ 17.50 $ 1,050,000.00 $ 18.80 $ 1,128,000.00 4b CLEARING, GRUBBING COMPACTION SUBGRADE AND
INSTALLING NEW SIDEWALK PER CITY STANDARDS 7280 SF $ 5.00 $ 36,400.00 $ 12.00 $ 87,360.00 $ 15.00 $ 109,200.00 $ 13.05 $ 95,004.00 $ 13.50 $ 98,280.00 $ 16.00 $ 116,480.00 $ 17.00 $ 123,760.00 $ 3.13 $ 22,786.40 $ 18.00 $ 131,040.00 4c CLEARING, GRUBBING COMPACTION SUBGRADE AND
INSTALLING NEW SIDEWALK PER CITY STANDARDS AT 1405
S. BLUFF RD AND 1413 S. BLUFF RD
440 SF $ 16.00 $ 7,040.00 $ 15.00 $ 6,600.00 $ 25.00 $ 11,000.00 $ 32.00 $ 14,080.00 $ 13.50 $ 5,940.00 $ 25.00 $ 11,000.00 $ 22.00 $ 9,680.00 $ 17.50 $ 7,700.00 $ 18.00 $ 7,920.00 5a REMOVE AND CONSTRUCT 6” CURB AND GUTTER PER CITY
STANDARDS 1500 LF $ 72.00 $ 108,000.00 $ 61.00 $ 91,500.00 $ 70.00 $ 105,000.00 $ 65.00 $ 97,500.00 $ 70.00 $ 105,000.00 $ 70.00 $ 105,000.00 $ 99.00 $ 148,500.00 $ 118.75 $ 178,125.00 $ 65.00 $ 97,500.00 5b REMOVE AND CONSTUCT 8” CURB AND GUTTER PER CITY
STANDARDS 1500 LF $ 75.00 $ 112,500.00 $ 63.00 $ 94,500.00 $ 70.00 $ 105,000.00 $ 76.50 $ 114,750.00 $ 72.50 $ 108,750.00 $ 75.00 $ 112,500.00 $ 104.00 $ 156,000.00 $ 118.75 $ 178,125.00 $ 70.00 $ 105,000.00 6 REMOVE AND CONSTRUCT 6” PCC DRIVEWAY
APRONS/APPROACHES 3000 SF $ 16.00 $ 48,000.00 $ 18.00 $ 54,000.00 $ 15.00 $ 45,000.00 $ 21.75 $ 65,250.00 $ 19.00 $ 57,000.00 $ 18.00 $ 54,000.00 $ 25.00 $ 75,000.00 $ 25.00 $ 75,000.00 $ 20.00 $ 60,000.00 7 REMOVE AND CONSTRUCT 4” A.C. SLOT PATCH FOR CURB &
GUTTER, DRIVEWAY APRONS/APPROACHES, AND CURB
RAMPS
5500 SF $ 12.00 $ 66,000.00 $ 6.00 $ 33,000.00 $ 12.00 $ 66,000.00 $ 30.00 $ 165,000.00 $ 12.00 $ 66,000.00 $ 14.00 $ 77,000.00 $ 14.00 $ 77,000.00 $ 15.00 $ 82,500.00 $ 17.00 $ 93,500.00 8 STEPS AT THE MUNICIPAL GOLF COURSE AND MONTEBELLO
CITY PARK BASKETBALL COURT AREA 2 EA $ 4,500.00 $ 9,000.00 $ 14,000.00 $ 28,000.00 $ 6,500.00 $ 13,000.00 $ 7,500.00 $ 15,000.00 $ 6,500.00 $ 13,000.00 $ 20,000.00 $ 40,000.00 $ 3,900.00 $ 7,800.00 $ 6,250.00 $ 12,500.00 $ 12,400.00 $ 24,800.00 9 REPAIR AND REPLACE WITH 4” AC PAVEMENT DAMAGED
BY TREE ROOTS 3000 SF $ 15.00 $ 45,000.00 $ 7.00 $ 21,000.00 $ 13.00 $ 39,000.00 $ 18.50 $ 55,500.00 $ 14.00 $ 42,000.00 $ 14.00 $ 42,000.00 $ 10.00 $ 30,000.00 $ 13.75 $ 41,250.00 $ 16.00 $ 48,000.00 10 CONSTRUCT CONCRETE CURB RAMPS 11 EA $ 4,800.00 $ 52,800.00 $ 6,963.00 $ 76,593.00 $ 7,500.00 $ 82,500.00 $ 7,500.00 $ 82,500.00 $ 9,750.00 $ 107,250.00 $ 8,500.00 $ 93,500.00 $ 9,400.00 $ 103,400.00 $ 16,250.00 $ 178,750.00 $ 6,500.00 $ 71,500.00 11 INSTALL DETECABLE WARNING SURFACES (TRUNCATED
DOMES) 11 EA $ 500.00 $ 5,500.00 $ 888.00 $ 9,768.00 $ 800.00 $ 8,800.00 $ 950.00 $ 10,450.00 $ 750.00 $ 8,250.00 $ 600.00 $ 6,600.00 $ 660.00 $ 7,260.00 $ 1,000.00 $ 11,000.00 $ 790.00 $ 8,690.00 $ 1,165,240.00 $ 1,234,000.00 $ 1,282,000.00 $ 1,486,888.00 $ 1,631,470.00 $ 1,678,080.00 $ 1,774,300.00 $ 1,920,236.40 $ 1,969,950.00 Bid Results
CP 939 - ADA ENHANCEMENTS (CITYWIDE)
Attachment B
ITEM # 17
CITY OF MONTEBELLO
CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager
BY: Cesar Roldan, Director of Public Works
SUBJECT: ADOPT SPECIFICATIONS FOR CONSTRUCTION OF FISCAL YEAR 2025-26 SB1 RUBBERIZED ASPHALT STREET ENHANCEMENT
PROJECT (CP 944) AND PROCEED WITH BID ADVERTISEMENT
DATE: January 14, 2026
RECOMMENDATIONS:
It is recommended that the City Council:
1. Approve Environmental Assessment pursuant to 14 California Code of Regulations § 15301 as a Class 1 categorical exemption under the California Environmental Quality Act (CEQA); and
2. Adopt construction specifications for Fiscal Year 2025-26 SB 1 Rubberized Asphalt Street Enhancement Project (CP 944); and
3. Authorize staff to proceed with bid advertisement for construction; and
4. Take such additional, related action that may be desirable.
FISCAL IMPACT:
Approval of this action allows staff to proceed with the bidding of this capital project. As soon as staff evaluate all bids, a recommendation will be made tentatively at the March 11, 2026 City Council meeting and include a well-defined structured budget. This project is part of the Fiscal Year 2025-26 Capital Improvement Program budget. Once bids are received and evaluated, staff will make a recommendation on a budget amendment as necessary, utilizing Senate Bill 1 (SB1) available funding.
BACKGROUND/DISCUSSION:
This project aims to resurface various streets adopted via Resolution No. 25-43 Fiscal Year 2025-26 SB1 Rubberized Asphalt Street Enhancement Project. The following are
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
the streets and their respective limits:
FY 2025-26 SB 1 Rubberized Asphalt Street Enhancement Project Street Names From To
W BURKE DR POPLAR AV END
N 6th ST W OAKMONT DR LINCOLN AVE
VIEWCREST E OAKMONT DR RAYWOOD AV
N VAIL AV LOMA RD WESTMORELAND DR
SAN ANTONIO DR N WILCOX AV 20TH ST
VIA SAN DELARRO BRADSHAWE ST West CITY LIMITS
N 19TH STREET ST W BEVERLY BLVD W MADISON AV
N 20TH ST W MADISON AV W LINCON AV
N LEONARD ST BARR AV DEWAR AV
FINDLAY AVE BEVERLY BLVD SOUTH CITY LIMITS
N 21ST STREET W BEVERLY BLVD W MADISON AV
N 7TH STREET W LINCOLN AV W MADISON AV
E FREMONT SQ POPLAR AV END
N 6TH ST W LINCOLN AV W MADISON AV
S 5TH ST W WHITTIER BLVD W OLYMPIC BLVD
S 2ND ST HARDING AV LOS ANGELES
N GREENWOOD AV W CLEVELAND AV W OLYMPIC BLVD
CALIFORNIA AV W WHITTIER BLVD LOS ANGELES AV
THYNNE ST FERGUSON DR END
JOYCE ST FERGUSON DR END
WORK ST FERGUSON DR END
HORNBY ST FERGUSON DR END
HEREFORD DR PICKERING WY S CONCOURSE AV
DATE ST S GREENWOOD AV SPRUCE ST
S SPRUCE ST DATE ST OAKWOOD ST
OAKWOOD ST S SPRUCE ST S GREENWOOD
CAROB WY E WASHINGTON BLVD JACMAR DR
GREENWOOD AVE SYCAMORE ST END
The final construction specifications are completed in accordance with applicable engineering standard specifications and are consistent with the City’s procurement and purchasing policies. The City Council is required to approve and adopt construction documents and authorize the bid request for all public projects. The bid advertisement process is consistent with Public Contract Code sections 20161 and 20162, which mandate California public works projects to be competitively bid. This action is also consistent with Montebello Municipal Code Section 3.20.110 - Bidding procedure
CITY COUNCIL AGENDA REPORT - MEETING OF JANUARY 14, 2026
prescribed.
With City Council's approval, staff will advertise the project for bid in a local newspaper of general circulation and submit the Notice Inviting Bid (NIB) to PlanetBids. The following tentative schedule has been identified for the bid process:
Tasks Timeline
Bid Period January 15, 2026 – February 11, 2026
Questions Request for Information
due date
January 29, 2026 at 12:00 PM
City Responses to Request for
Information due date
February 5, 2026 at 12:00 PM
Bid Opening February 11, 2026 at 11:00 AM
Award of Contract (Tentative) date March 11, 2026 City Council Meeting Commence Construction Project April/May 2026 – Tentative Complete Construction October 2026
Close out Project November 2026
ENVIRONMENTAL:
The proposed project is categorically exempt from the requirements of the California Environmental Quality Act (CEQA) pursuant to 14 California Code of Regulations § 15301 as a Class 1 categorical exemption (Existing Facilities). The project results in minor alterations to existing public facilities involving no significant expansion of the existing use. The project is not anticipated to have any significant impacts with regards to traffic, noise, air quality, or water quality.
ANALYSIS:
N/A
SUMMARY:
Staff recommends the City Council adopt 100% completed specifications for the FY 2025-26 SB1 Rubberized Asphalt Street Enhancement Project (CP 944); and approve Environmental Assessment pursuant to 14 California Code of Regulation § 15301 as a Class 1 categorical exemption under the California Environmental Quality Act (CEQA); and, authorize staff to proceed with bid advertisement for construction.
ATTACHMENT(S)
1. Attachment A - Specifications CP 944
2. Attachment B - CEQA NOE
1 CITY OF MONTEBELLO CALIFORNIA
CONTR
ACT DOCUMENTS SPECIFICATIONS AND STANDARD DRAWINGS
FOR
FY
2025-2026 SB1 RUBBERIZED ASPHALT STREET ENHANCEMENT PROJECT C.P. No. 944
GEORGINA TAMAYO – MAYOR
DANIELLE ROMERO – MAYOR PRO TEM
RIC ALONZO – COUNCILMEMBER
SCARLET PERALTA – COUNCILMEMBER
SALVADOR MELENDEZ – COUNCILMEMBER
RAUL
ALVAREZ – CITY MANAGER
CESAR ROLDAN – DIRECTOR OF PUBLIC WORKS
PREPARED BY:
CITY OF MONTEBELLO
PUBLIC WORKS DEPARTMENT
PROJECT SUBJECT TO PROJECT LABOR AGREEMENT NO. 4202
Bid Op
ening (Electronic Bid through PlanetBids) February 11, 2026 at 11:00 AM Attachment A
1 FY 2025-2026 SB1 RUBBERIZED ASPHALT STREET ENHANCEMENT PROJECT C.
P. No. 944
IN T
HE CITY OF MONTEBELLO
BID SCHEDULE
• Bid Period January 15, 2026 – February 11, 2026
• Questions Request for Information due date January 29, 2026 at 12:00 PM • City Responses to Request for Information due date February 5, 2026 at 12:00 PM • Bid Opening F ebruary 11, 2026 at 11:00 AM
• Award of Contract (Tentative) date March 11, 2026 City Council Meeting • Commence Construction Project April/May 2026 – Tentative • Complete Construction O ctober 2026 – Tentative
• Close out Project N ovember 2026 – Tentative
• Bid proposals will be received via PlanetBids
(https://www.montebelloca.gov/cms/one.aspx?portalId=58756&pageId=84839) until 11:00 A.M. on February 11, 2026.
o PROPOSALS WILL NOT BE RECEIVED IN PERSON
2 CI
TY OF MONTEBELLO
CALIFORNIA
TO PR
OSPECTIVE BIDDERS:
T
he City of Montebello invites you to become a prospective bidder on one of its public projects.
It is the City’s intention to provide you with thorough and complete information regarding this project and to present an accurate description of the necessary work so that you may successfully bid and construct the project.
S
ubmittal of your bid assumes that you have made a thorough and complete investigation of the project site and that you have discovered no apparent discrepancies between the scope of work set forth in the plans and specifications and the actual field conditions.
If
there are any questions regarding this project, please contact the City Public works/Engineering office at (323) 887-1460.
C
esar Roldan
Public Works Director
3 FY 2025-2026 SB1 RUBBERIZED ASPHALT STREET ENHANCEMENT PROJECT C.P. No. 944
IN
THE CITY OF MONTEBELLO
TAB
LE OF CONTENTS
NOTI
CE INVITING SEALED BIDS A-1 to A-3
INSTRUCTIONS TO BIDDERS B-1 to B-3
PROPOSAL C-1 to C-14
CONTRACT AGREEMENT D-1 to D-6
SPECI
AL PROVISIONS
PART
1 - GENERAL PROVISIONS GP-1 to GP-38
PART
2 – BID ITEM DESCRIPTION BD-1 to BD-23
PLAN
SHEETS APPENDIX “A”
LIST
OF STANDARD PLANS APPENDIX “B”
DEPA
RTMENT OF INDUSTRIAL RELATIONS (DIR) APPENDIX “C”
CONTRACTOR REGISTRATION NUMBER FORM
CONCRE
TE APPENDIX “D”
PROJ
ECT LABOR AGREEMENT NO. 4202 APPENDIX “E”
NOTICE INVITING SEALED BIDS
FOR
FY 2025-2026 SB1 RUBBERIZED ASPHALT STREET ENHANCEMENT PROJECT C.
P. No. 944
IN T
HE CITY OF MONTEBELLO
P
UBLIC NOTICE IS HEREBY GIVEN that the City of Montebello as AGENCY, invites bids for the above stated project and will receive such bids Bid proposals will be received via PlanetBids (https://www.montebelloca.gov/cms/one.aspx?portalId=58756&pageId=84839) until 11:00 A.M. on February 11, 2026.
• PROPOSALS WILL NOT BE RECEIVED IN PERSON
SCOPE OF WORK: The work to be performed or executed under these specifications consists of furnishing all materials, equipment, tools, labor, and incidentals as required by the contract documents to construct the above stated project. It is the intent of this contract to have the contractor perform the “Project”, and other appurtenances in accordance with the latest Standard Plans for Public Works Construction (SPPWC), Standard Specifications for Public Works Construction “Greenbook” and 2024 Caltrans Standard Plans and Specifications unless otherwise shown.
CO
NTRACT DOCUMENTS:
Copies of the contract documents and specifications are available through PlanetBids.
I
n order to be on the Planholder List for this project, each bidder must submit a Bidders Information Sheet through PlanetBids. Bids will not be accepted unless the bidder is on the Planholder List. All questions from plan holders must be sent through PlanetBids.
Questions: All questions related to this project shall be submitted electronically and received no later than 12:00 p.m. on January 29, 2026, prior to the opening of bids.
PREVAILING WAGE:
Pursuant to Section 1770, et seq., of the California Labor Code, the Contractor shall pay the general prevailing rate of per diem wages as determined by the Director of the Department of Industrial Relations of the State of California for the locality where the work is to be performed. A copy of said wage rates is available on -line at: B -2 www.dir.ca.gov/dlsr/DPreWageDetermination.htm.
The Contractor and any subcontractors shall pay not less than said specified rates and shall post a copy of said wage rates at the project site.
LABO
R COMPLIANCE:
To comply with SB 854, beginning January 1, 2015 the following applies:
1. N
o contractor or subcontractor may be listed on a bid proposal for public works project (submitted on or after March 1, 2015) unless registered with the Department of Industrial
Relations (DIR) pursuant to Labor Code section 1725.5 [with limited exceptions from this requirement for bid purposes only under Labor Code section 1771.1(a)].
2. N
o contractor or subcontractor may be awarded a contract for public works on a public works project awarded on or after April 1, 2015, unless registered with the DIR.
3. Th
e project is subject to compliance monitoring and enforcement by the DIR.
4. Require the prime contractor to post job site notices prescribed by regulation (See 8 Calif.
Code Reg. §16451(d) for the notice that previously was required for projects monitored by the CMU) or the City must post the notices itself.
The Contractor shall fill in the Department of Industrial Relations (DIR) Contractor Registration Number Form provided in Appendix “B” and submit it with the sealed Bid.
T
he AGENCY hereby affirmatively ensures that minority business enterprises will be afforded full opportunity to submit bids in response to this notice and will not be discriminated against on the basis of race, color, national origin, ancestry, sex, marital status or religion in any consideration leading to the award of contract.
I
n entering into a public works contract, or subcontract, to supply goods, services, or materials pursuant to a public works contract, the Contractor, or the Subcontractors, offers and agrees to assign to the awarding body all rights, title and interest in, and to, all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) of under the Cartwright Act (Chapter 2 [commencing with Section 16700] of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services, or materials pursuant to the public work contract or the subcontract. This assignment shall be made and become effective as the time the awarding body tenders final payment to the Contractor, without further acknowledgement by the parties.
Bids must be prepared on the approved Proposal forms in conformance with the “Instructions to Bidders” and submitted in a sealed envelope plainly marked on the outside. The bid must be accompanied by certified or cashier’s check, or bidder’s bond, made payable to the AGENCY for an amount no less than ten percent of the amount bid.
Bi
dders must hold a valid California Class A Contractor’s License.
No
bid will be accepted from a Contractor who has not been licensed in accordance with provisions of the Business and Professions Code. The successful Contractor and his subcontractors will be required to possess business licenses from the City.
Th
e AGENCY will deduct five percent (5%) retention from all progress payments as specified in Section 7-3.2 of these Specifications. The Contractor may substitute an escrow holder surety of equal value to the retention and the Contractor shall be beneficial owner of the surety and shall receive any interest thereon.
T
he AGENCY reserves the right to reject any or all bids, to waive any irregularity and to take all bids, under advisement for a period of sixty (60) days.
The contract period for this project is Ninety (90) working days from the effective date of the Notice-to-Proceed to be issued by the City.
BY
ORDER OF: The City of Montebello, California
Christopher Jimenez, City Clerk
B-1
INSTRUCTIONS TO BIDDERS
FOR
FY 2025-2026 SB1 RUBBERIZED ASPHALT STREET ENHANCEMENT PROJECT C.P. No. 944
IN THE CITY OF MONTEBELLO
GENERAL INFORMATION
ELECTRONIC proposals, including all documents required to be submitted with the bid, will be received at the office of the Montebello City Clerk of said City until the date and time specified in the legal notice or addendum to the project documents, whichever occurs latest, for the construction of work described in the project documents or said legal notice. The ELECTRONIC Bid(s) will be evaluated and posted on PlanetBids, where they can be viewed publicly shortly after the bid closes.
O
NLY ELECTRONIC PROPOSALS ARE ACCEPTED.
I
n addition to the “ELECTRONIC” uploading of Proposal Documents described in the ‘INVITATION TO BIDDERS’, the fully executed original Bid Bond shall be delivered to the Montebello City Clerk on or before the actual bid opening day and time.
This project is subject to compliance monitoring and enforcement by the Department of Industrial Relations.
N
o contractor or subcontractor may be listed on a bid proposal for a Public Works project (submitted on or after March 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.
N
o contractor or subcontractor may be awarded a contract for public work on a Public Works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5.
PR
OPOSAL FORMS
B
ids shall be submitted directly through PlanetBids
(https://www.montebelloca.gov/cms/one.aspx?portalId=58756&pageId=84839) and contractors must use the Proposal forms provided by the AGENCY (contained within these contract specifications). All information requested therein must be clearly and legibly set forth in the manner and form indicated. The AGENCY will not consider any proposal not meeting these requirements.
• PROPOSALS WILL NOT BE RECEIVED IN PERSON
B-2
PROPOSAL GUARANTEE
P
roposals must be accompanied by a proposal guarantee consisting of a certified or cashier’s check or bid bond payable to the AGENCY in the amount not less than ten percent of the total amount bid. Any proposal not accompanied by such a guarantee will not be considered. If a bidder to whom a contract is awarded fails or refuses to execute the contract documents or furnish the required insurance policies and bonds as set forth in those documents, the proposal guarantee shall be forfeited to the AGENCY. The proposal guarantees of all bidders will be held until the successful bidder has properly executed all contract documents.
DELI
VERY OF PROPOSAL
Bi
ds shall be submitted directly through PlanetBids
Electronic Bids shall Bids shall be submitted electronically at https://www.montebelloca.gov/cms/one.aspx?portalId=58756&pageId=84839 by 11:00 A.M. on February 11, 2026. It is the bidder’s responsibility to ensure the bids have been successfully submitted thru PlanetBids. Bidders can contact the AGENCY’S Purchasing Officials for confirmation. Late proposals will not be considered.
• PROPOSALS WILL NOT BE RECEIVED IN PERSON
WITHDRAWAL OF PROPOSALS
A
proposal may be withdrawn by a written request signed by the bidder. Such requests must be delivered to the AGENCY’s designated official prior to the bid -opening hour stipulated in the Notice Inviting Sealed Bids. Proposals may not be withdrawn after said hour without forfeiture of the proposal guarantee. The withdrawal of the proposal will not prejudice the right of the bidder to submit a new proposal, providing there is time to do so.
I
RREGULAR PROPOSALS
U
nauthorized conditions, limitations, or provisions attached to a proposal will render it irregular and may cause its rejection. The completed proposal forms shall be without interlineations, alterations, or erasures. Alternative proposals will not be considered unless specifically requested.
No oral, telegraphic, telephonic, facsimile or electronic proposal, modification or withdrawal will be considered.
T
AXES
No mention shall be made in the proposal of Sales Tax, Use Tax, or any other tax, as all amounts contained in the bid will be deemed and held to include any such taxes, which may be applicable.
DISQUALIFICATION OF BIDDERS
In
the event that any bidder acting as a prime contractor has an interest in more than one proposal, all such proposals will be rejected, and the bidder will be disqualified. This restriction does not apply to subcontractors or suppliers who may submit quotations to more than one bidder, and while doing so, may also submit a formal proposal as a prime contractor. No proposal will be accepted
B-3
from a bidder who has not been licensed in accordance with the provisions of the State Business and Professions Code.
DI
SCREPANCIES AND MISUNDERSTANDINGS
B
idders must satisfy themselves by personal examination of the work site, Plans, Specifications, and other contract documents and by any other means as they may believe necessary, as to the actual physical conditions, requirements and difficulties under which the work must be performed.
No bidder shall at any time after submission of a proposal make any claim or assertion that there was any misunderstanding or lack of information regarding the nature or amount of work necessary for the satisfactory completion of the job. Any errors, omissions, or discrepancies found in the Plans, Specifications, or other contract documents shall be called to the attention of the AGENCY and clarified prior to the submission of proposals.
EQ
UIVALENT MATERIALS
A
lthough the bidder may believe that by use of a different material than that specified on/in the plans and specifications, a lower cost project/bid may result. The bidder is to bid the project on the basis of using the material(s) as named keeping in mind that all materials named herein by manufacturer is not to prohibit the bidder considering using in his bid what he considers to be an equal material except where the AGENCY has designated a sole product. Once the bids have been opened the successful Contr actor may discuss with the AGENCY the use of another product; which may result in a determination by the AGENCY that the other product is equal and possibly that by the AGENCY allowing the use of the Contractor proposed equal that a change in the contract amount may result.
LEGAL RESPONSIBILITIES
A
ll proposals must be submitted, filed, made, and executed in accordance with State and Federal laws relating to bids for contracts of this nature whether the same or expressly referred to herein or not. Any bidder submitting a proposal shall by such action thereby agree to each and all of the terms, conditions, provisions, and requirements set forth, contemplated, and referred to in the Plans, Specifications, and other contract documents, and to full compliance therewith.
AW
ARD OF CONTRACT
T
he award of contract, if made, will be to the lowest responsible bidder as determined solely by the AGENCY. Additionally, the AGENCY reserves the right to accept or reject any or all proposals, to waive any irregularity, and to make an award as may best serve the interests of the AGENCY.
S
URETY BOND PERIOD
Surety Faithful Performance Bond shall be maintained for one (1) year after completion of project construction.
C-1
PROPOSAL
FOR
FY 2025-2026 SB1 RUBBERIZED ASPHALT STREET ENHANCEMENT PROJECT C.
P. No. 944
IN T
HE CITY OF MONTEBELLO
TO THE CITY OF MONTEBELLO, as AGENCY
In accordance with AGENCY’s Notice Inviting Sealed Bids, the undersigned BIDDER hereby proposes to furnish all materials, equipment, tools, labor, and incidentals required for the above stated project as set forth in the Plans, Specifications, and contract documents therefor and to perform all work in the manner and time prescribed therein.
BIDDER declares that this proposal is based upon careful examination of the work site, Plans, Specifications, Instruction to Bidders, and all other contract documents. If this proposal is accepted for award, BIDDER agrees to enter into a contract with AGENCY at the unit and/or lump sum prices set forth in the following Bid Schedule. BIDDER understands that failure to enter into a contract in the manner and time prescribed will result in forfeiture to AGENCY of the guarantee accompanying this proposal. This bid may not be withdrawn within a period of sixty (60) days after the date of its proper opening by the City.
BI
DDER understands that a bid is required for the entire work and that the estimated quantities set forth in the Bid Schedule are solely for the purpose of comparing bids, and that final compensation under the contract will be based upon the actual quantities of work satisfactorily completed. THE
AGENCY RESERVES THE RIGHT TO INCREASE OR DECREASE THE AMOUNT OF ANY QUANTITY SHOWN AND TO DELETE ANY ITEM FROM THE CONTRACT. It is agreed that the unit and/or lump sum prices bid include all appurtenant expenses, taxes, royalties, and fees. In the case of discrepancies in the amounts bid, unit prices shall govern over extended amounts, and words shall govern over figures.
If awarded the Contract, the undersigned further agrees that in the event of the BIDDER’s default in executing the required contract and filing the necessary bonds and insurance certificates within ten working days after the date of the AGENCY’s notice of award of contract to the BIDDER, the proceeds of the security accompanying this bid shall become the property of the AGENCY and this bid and the acceptance hereof may, at the AGENCY’S option, be considered null and void.
The
foregoing quantities are approximate only, being given as a basis for the comparison of bids, and the City does not expressly or by implication agree that the actual amount of work will correspond therewith, but reserves the right to increase or decrease the amount of any class or portion of the work or to omit portions of t he work as may be deemed necessary or advisable by the engineer. All bids will be compared on the basis of the Engineer’s estimated quantities of work to be performed.
C-2
The contractor’s attention is directed to both sec. 7-3.5.2 “Increases of more than 25 percent” and sec. 7-3.5.3 “Decreases of more than 25 percent” of the Standard Specifications which have been eliminated and are replaced by the following:
N
o adjustments for any unit bid price for any quantity that will vary by more than 25% will be allowed.
The bidder agrees that in case of not executing the required contract with necessary bonds within ten (10) working days, after having received notice that the contract is ready for signature, the proceeds of the check or bond accompanying his/her bid shall become the property of the City of Montebello.
The bidder also certifies that the bid is a balanced bid. In accordance with section 7028.15 of the California Business and Professions Code, the undersigned certifies under penalty of perjury that the foregoing is true and correct.
C-3
BID PROPOSAL
FOR
FY 2025-2026 SB1 RUBBERIZED ASPHALT STREET ENHANCEMENT PROJECT C.
P. No. 944
IN T
HE CITY OF MONTEBELLO
T
he undersigned declares that he has carefully examined the location of the proposed work, that he has examined the specifications and read the accompanying instructions to bidders, and hereby proposes to do all the work in accordance with said specifications for the amounts set forth below:
Construct improvements as reiterated above, located in the City of Montebello, California, in accordance with the specifications for the unit price set forth in the following items:
ITEM
NO. DESCRIPTION UNIT EST.
QTY.
UNIT
PRICE
EXTENDED
AMOUNT
1 Mobilization/ Demobilization (Not to exceed 3% of
total of all other prime contract Bid Items) LS 1 $ $
2 Traffic Control LS 1 $ $
3 Cold Mill Existing Asphalt Concrete (AC)
Pavement (2” depth) SF 1,200,000 $ $
4A Remove existing humps and furnish and install new
AC Speed Hump with advance warning pavement
markings and regulatory posted signs
EA 4
$
$
4B Furnish and install new AC speed hump on Via San
Delarro per City standard with advance warning
pavement markings and regulatory posted signs
EA 2
5 Construct 2”-Thick ARHM Overlay TON 16,000 $ $
6 Seal cracks in all existing lateral and longitudinal cross gutters where new AC joins per Appendix C LS LS
7 Adjust Existing Storm Drain Frames and Covers to
Finished Grade EA 2
$
$
8 Adjust Existing Sewer and Utility Manhole
Covers and frames to Finished Grade EA 86 $ $
9 Adjust Existing Water Valve Covers and Frames to
Finished Grade
EA 85
10 Furnish and Install Traffic Signal Loop Detectors
and Connect to DLC LS 1 $ $
11 Centerline Striping, Pavement Markings, in
thermoplastic and House Address and Curb Painting LS 1 $ $ $
$
$
$
$
$
C-4
12 Construction Survey, Staking, Re-establish Survey
Monuments and Centerline Ties LS 1 $ $
TOTAL AMOUNT BID IN FIGURES $
TO
TAL AMOUNT BID IN WORDS
D
ollars
Bidder’s Signature Title
Company Name
IN CASE OF DISCREPANCY BETWEEN THE WORDS AND FIGURES, THE WORDS SHALL PREVAIL.
*Contact will be awarded to the most responsive and lowest responsible bidder based on the amount contained in the “TOTAL AMOUNT BID SCHEDULE”.
C-5
DESIGNATION OF SUBCONTRACTORS
California Public Contract Code 6109
The City of Montebello cannot permit a contractor or subcontractor who is ineligible to bid or work on, or be awarded, a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code to bid on, be awarded, or perform work as a subcontractor on, a public works project.
In compliance with the Subletting and Subcontracting Fair Practices Act (Chapter 2, commencing at Section 4100, Division 5, Title 1 of the California Public Contract Code) and any amendments thereof, each bidder shall set forth below: (a) the name and location of the place of business of each subcontractor who will perform work or labor or render service to the prime contractor in or about the construction of the work or improvement to be performed under this contract in an amount in excess of one-half of one percent of the prime contractor's total bid, and (b) the portion of the work which will be done by each subcontractor under this act. The prime contractor shall list only one subcontractor for each such portion as is defined by the prime contractor in this bid.
If a prime contractor fails to specify a subcontractor or if a prime contractor specifies more than one subcontractor for the same portion of work to be performed under the contract in excess of one-half of one percent of the prime contractor's total bid, the prime contractor shall be deemed to have agreed that he/she is fully qualified and will perform that portion themselves.
No prime contractor whose bid is accepted shall (a) substitute any subcontractor, (b) permit any subcontract to be voluntarily assigned or transferred or allow it to be performed by anyone other than the original subcontractor listed in the original bid, or (c) subcontract any portion of the work in excess of one-half of one percent of the prime contractor's total bid as to which his/her original bid did not designate a subcontractor, except as authorized in the Subletting and Subcontracting Fair Practices Act. Subletting or subcontracting of any portion of the work in excess of one -half of one percent of the prime contractor's total bid a s to which no subcontractor was designated in the original bid shall only be permitted in cases of public emergency or necessity, and then only after a finding reduced to writing as a public record of the authority awarding this contract setting forth the facts constituting the emergency or necessity.
California Public Contract Code 7104
Contractor shall, in any activity involving trenching more than four feet deep, notify the Engineer of hazardous materials, subsurface or latent physical site conditions different from those indicated and any unusual site conditions. Contractor shall, in contracts exceeding $25,000, provide detailed plans for trenches or excavations of five feet or more in depth. Cal. Lab. Code § 6705.
C-6
DESIGNATION OF SUBCONTRACTORS
BIDDER proposes to subcontract certain portions of the work, which are in excess of one-half of one percent of the bid, and to procure materials and equipment from suppliers and vendors as follows:
NAME, ADDRESS, LICENSE NO.,
AND PHONE NUMBER OF
SUBCONTRACTORS, SUPPLIERS, PORTION OF WORK,
AND VENDORS MATERIALS, OR EQUIPMENT
Prior to award of contract, Contractor shall submit a list of suppliers and vendors, in writing, to the Public Works Director.
C-7
REFERENCES
The following are the names, addresses, and telephone numbers for three public agencies for which BIDDER has performed similar work within the past two years:
1. Name and Address of Agency
Name and telephone number of person familiar with project
Contract amount Type of work Date completed
2. Name and Address of Agency
Name and telephone number of person familiar with project
Contract amount Type of work Date completed
3. Name and Address of Agency
Name and telephone number of person familiar with project
Contract amount Type of work Date completed
The following are the names, addresses, and telephone numbers of all brokers and sureties from whom BIDDER intends to procure insurance and bonds:
C-8
EQUAL EMPLOYMENT OPPORTUNITY COMPLIANCE
BIDDER certifies that in all previous contracts or subcontractors, all reports which may have been due under the requirements of any AGENCY, State, or Federal equal employment opportunity orders have been satisfactorily filed, and that no such reports are currently outstanding.
AFFIRMATIVE ACTION CERTIFICATION
BIDDER certifies that affirmative action has been taken to seek out and consider minority business enterprises for those portions of the work to be subcontracted, and that such affirmative actions have been fully documented, that said documentation is open to inspection, and that said affirmative action will remain in effect for the life of any contract awarded thereunder.
Furthermore, BIDDER certifies that affirmative action will be taken to meet all equal employment opportunity requirements of the contract documents.
NON-COLLUSION AFFIDAVIT
BIDDER declares that the only persons or parties interested in this proposal as principals are those named herein; that no officer, agent, or employee of the AGENCY is personally interested, directly or indirectly, in this proposal; that this proposal is made without connection to any other individual, firm, or corporation making a bid for the same work and that this proposal is in all respects fair and without collusion or fraud.
C-9
BIDDER’S INFORMATION
BIDDER certifies that the following information is true and correct:
Bidder’s Name
Business Address:
Telephone
State Contractor’s License No. and Class:
Original Date Issued Expiration Date
The following are the names, titles, addresses, and phone numbers of all individuals, firm members, partners, joint ventures, and/or corporate officers having a principal interest in this proposal:
The date of any voluntary or involuntary bankruptcy judgments against any principal having an interest in this proposal is as follows:
All current and prior DBA’s, alias, and/or fictitious business names for any principal having an interest in this proposal are as follows:
C-10
IN WITNESS WHEREOF, BIDDER executes and submits this proposal with the names, title, hands, and seals of all forenamed principals this day of , 20 .
BIDDER
The undersigned declares under penalty of perjury under the laws of the State of California that the representations made hereto are true and correct.
Signature of Contractor’s Representative
Printed Name
Title
Subscribed and sworn to this day of ,20 .
NOTARY PUBLIC
C-11
Note: The standard printed bid bond form of any bonding company acceptable to the City of Montebello may be used in lieu of the following approved sample bond form, provided the security stipulations protecting the City of Montebello are not in any way reduced by use of the surety company’s printed standard form.
PROPOSAL GUARANTEE
BID BOND
FOR
FY 2025-2026 SB1 RUBBERIZED ASPHALT STREET ENHANCEMENT PROJECT
C.P. No. 944
IN THE CITY OF MONTEBELLO
KNOW ALL MEN BY THESE PRESENTS that
, as BIDDER, and
, as SURETY, are held and firmly
bound unto the City of Montebello, as AGENCY, in the penal sum of
dollars ($ ), which is ten percent of the
total amount bid by BIDDER to AGENCY for the above stated project, for the payment of which sum, BIDDER and SURETY agree to be bound, jointly and severally, firmly be these presents.
THE CONDITIONS OF THIS OBLIGATION ARE SUCH that, whereas BIDDER is about to submit a bid to AGENCY for the above stated project, if said bid is rejected, or if said bid is accepted and a contract is awarded and entered into by BIDDER in the manner and time specified, then this obligation shall be null and void, otherwise it shall remain in full force and effect in favor of AGENCY.
IN WITNESS WHEREOF the parties hereto have set their names, titles, hands, and seals, this day of , 20
.
BIDDER*
SURETY*
Subscribed and sworn to this day of , 20 .
NOTARY PUBLIC
*Provide BIDDER/SURETY name, address and telephone number and the name, title, address and telephone number of authorized representative.
C-12
BIDDER’S VIOLATION OF LAW/SAFETY QUESTIONNAIRE
FOR
FY 2025-2026 SB1 RUBBERIZED ASPHALT STREET ENHANCEMENT PROJECT
C.P. No. 944
IN THE CITY OF MONTEBELLO
In accordance with Government Code Section 14310.5, the BIDDER shall complete, under penalty of perjury, the following questionnaire.
QUESTIONNAIRE
Has the Bidder, any officer of the bidder or any employee of the Bidder who has a proprietary interest in the Bidder ever been disqualified, removed or otherwise prevented from bidding on or completing a Federal, State or local government project because of a violation of law or a safety regulation?
Yes No
If the answer is yes, explain the circumstances in the space provided.
C-13
Note: The following is to be used in case cash, a cashier’s check or a certified check accompanies the proposal.
PROPOSAL GUARANTEE
CASH, CASHIER’S CHECK, OR CERTIFIED CHECK
FOR
FY 2025-2026 SB1 RUBBERIZED ASPHALT STREET ENHANCEMENT PROJECT
C.P. No. 944
IN THE CITY OF MONTEBELLO
Accompanying this proposal is a certified check, a cashier’s check, or bidder’s bond payable to the order of the City of Montebello, or cash in the amount of
Dollars
($ ). The proceeds of the same shall become the property of said City if, in case this proposal shall be accepted by said City through the City Council, the undersigned shall fail to execute a contract, with and furnish the insurance and bonds required by the City of Montebello within the specified time; otherwise, the same is to be returned to the undersigned as set forth in the Instructions to Bidders.
Bidder
D-1
CONTRACT AGREEMENT
FOR
FY 2025-2026 SB1 RUBBERIZED ASPHALT STREET ENHANCEMENT PROJECT
C.P. No. 944
IN THE CITY OF MONTEBELLO
This Contract Agreement is made and entered into for the above stated project this day of , 20 . BY AND BETWEEN the City of Montebello, as AGENCY, and
as CONTRACTOR. WITNESSETH that AGENCY and CONTRACTOR have mutually agreed as follows:
ARTICLE I
The contract documents for the aforesaid project shall consist of the Notice Inviting Sealed Bids, Instructions to Bidders, Proposal, General Specifications, Standard Specifications, Special Provisions, Plans, and all referenced specifications, details, st andard drawings, and appendices, together with this Contract Agreement and all required bonds, insurance certificates, permits, notices, and affidavits; and also including any and all addenda or supplemental agreements clarifying, or extending the work contemplated as may be required to insure its completion in acceptable manner. All of the provisions of said contract documents are made a part hereof as though fully set forth herein.
ARTICLE II
For and in consideration of the payments and agreements to be made and performed by AGENCY, CONTRACTOR agrees to furnish all materials and perform all work required for the above stated project, and to fulfill all other obligations as set forth in the aforesaid contract documents.
ARTICLE III
CONTRACTOR agrees to receive and accept the unit or lump sum prices set forth in the Proposal as full compensation for furnishing all materials, performing all work, and fulfilling all obligations hereunder. Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the aforesaid contract documents; and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work.
ARTICLE IV
AGENCY hereby promises and agrees to employ, and does hereby employ, CONTRACTOR to provide the materials, do the work and fulfill the obligations according to the terms and conditions herein contained and referred to, for the prices aforesaid, and hereby contracts to pay the same at the time, in the manner, and upon the conditions set forth in the contract documents.