Montebello City Council
June 24, 2026

PROFESSIONAL SERVICES AGREEMENT NO. _____

the Compensation for those Professional Services satisfactory performed on or before the effective date of termination.
b. Termination for Convenience. The CITY shall have the option, at its sole discretion and without cause, to terminate this Agreement in whole, or in part, by giving ten (10) business days’ written notice to the CONSULTANT. Upon the termination of this Agreement as provided herein, the CITY shall provide to the CONSULTANT the part of Compensation which would otherwise be payable to the CONSULTANT for services the CONSULTANT had completed as of the date of termination, less the amount of all previous payment with respect to the Compensation. Further, upon such a termination for convenience by the CITY, the Parties agree that the CONSULTANT shall be reimbursed for any “nonrefundable” costs that the CONSULTANT has incurred for its services under this Agreement, provided that: (1) such “non- refundable” costs were incurred by the CONSULTANT prior to the date of termination, and (2) that the CONSULTANT provides the CITY with adequate proof that the CONSULTANT incurred the costs, and is unable to be seek a refund for such costs. Such “non-refundable” costs may include, but are not limited to, travel reservations incurred by the CONSULTANT for its performance of services under this Agreement. The CONSULTANT agrees to cease all work under this Agreement on or before the effective date of any notice of termination.

SECTION 9. EMPLOYMENT OF CITY EMPLOYEES.

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

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

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

SECTION 11. INDEPENDENT CONSULTANT.
a. The CONSULTANT is and shall, at all times, remain as to the CITY a wholly independent consultant. Neither the CITY nor any of its elected officials, officers, employees, or agents shall have control over the conduct of the CONSULTANT except as expressly set forth in this Agreement. The CONSULTANT shall not at any time or in any manner represent that he or she is in any manner an elected official, officer, employee, or agent of the CITY. No employee benefits shall be available to the CONSULTANT in connection with the performance of this Agreement. Except as provided in this Agreement, the CITY shall not pay salary, wages, or other compensation to the CONSULTANT for performance hereunder for the CITY, the CITY shall not be liable for compensation to the CONSULTANT, the CONSULTANT’s employees or the CONSULTANT’s subconsultants for injury or sickness arising out of performing services hereunder. b. The parties further acknowledge and agree that nothing in this Agreement shall create or be construed to create a partnership, joint venture, employment relationship or any other relationship except as set forth in this Agreement. c. The CITY shall not deduct from the Compensation paid to the

PROFESSIONAL SERVICES AGREEMENT NO. _____

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

SECTION 12. CalPERS ANNUITANTS AND ELIGIBILITY INDEMNITY. a. If the CONSULTANT is a California Public Employees’ Retirement System (“CalPERS”) annuitant, the CONSULTANT must provide the City with written notification of such fact a minimum of 14 calendar days prior to commencement of services under this Agreement. Failure to provide such notification may result in termination of the Agreement, and any penalties or other costs relating thereto shall be borne by the CONSULTANT. If this Agreement remains in place, the CONSULTANT shall execute any amendment(s) to this Agreement requested by the City in order to comply with all laws and regulations applicable to CalPERS annuitants.
b. In the event that the CONSULTANT or any employee, agent, or subconsultant of the CONSULTANT providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the CITY, the CONSULTANT shall indemnify, defend, and hold harmless the CITY for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of the CONSULTANT or its employees, agents, or subconsultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the CITY.
c. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, the CONSULTANT and any of its employees, agents, and subconsultants providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by the CITY, including but not limited to eligibility to enroll in PERS as an employee of the CITY and entitlement to any contribution to be paid by the CITY for employer contribution and/or employee contributions for PERS benefits.

SECTION 13. LEGAL RESPONSIBILITIES.

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

SECTION 14. INDEMNIFICATION.

The CONSULTANT agrees to, and shall defend, indemnify, protect and hold harmless, the CITY, its elected and appointed boards, officers, officials, employees, agents and volunteers from and against any and all claims, demands, lawsuits, defense costs, civil, penalties, expenses, causes of action, and judgments at law or in equity, or liability of any kind or nature which the CITY, its elected and appointed

PROFESSIONAL SERVICES AGREEMENT NO. _____

boards, officers, officials, employees, agents and volunteers may sustain or incur or which may be imposed upon them for injuries or deaths of persons, or damage to property arising out of the CONSULTANT’s negligent or wrongful act, or omission under the terms of this Agreement, except only liability arising out of the sole negligence of the CITY.

SECTION 15. INSURANCE COVERAGE.
a. During the term of this Agreement, the CONSULTANT shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with CONSULTANT’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:
• Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis for bodily injury and property damage, including products-completed operations, personal injury, and advertising injury, with limits no less than $1,000,000 per occurrence. If a general aggregate limit applies, the limit shall be twice the required occurrence limit.
• Automobile Liability Insurance: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if CONSULTANT has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage. • Worker's Compensation insurance as required by the laws of the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
• Professional Liability insurance appropriate to the CONSULTANT’S profession, with limit no less than $1,000,000 per occurrence or claim, $2,000,000 aggregate.
b. If the CONSULTANT maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the CONSULTANT.
c. The CONTACTOR shall require each of its subconsultants, if any, to maintain insurance coverage that meets all of the requirements of this Agreement. d. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a current rating of at least A:VII in the latest edition of Best's Insurance Guide.
e. Each insurance policy required above shall state that coverage shall not be canceled, except after thirty (30) days’ prior written notice (ten [10] days for non-payment) has been given to the CITY. The CONSULTANT agrees that if it does not keep the aforesaid insurance in full force and effect the CITY may either (i) immediately terminate this Agreement for Cause; or (ii) take out the necessary insurance and pay, at the CONSULTANT’s expense, the premium thereon.

PROFESSIONAL SERVICES AGREEMENT NO. _____

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

City of Montebello
Attn: Risk Manager
1600 West Beverly Boulevard
Montebello, CA 90640
Email: [insert designated email]
Coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits, non-renewed, or materially changed for any reason, without thirty (30) days prior written notice thereof given by the insurer to the CITY by U.S. mail, or by personal delivery, except for nonpayment of premiums, in which case ten (10) days prior notice shall be provided.
g. Evidence of Insurance during the entire term of the Agreement. At all times during the term of this Agreement, the CONSULTANT shall maintain on file with the CITY’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and naming the CITY as an additional insured. The CONSULTANT shall, prior to commencement of work under this Agreement, file with the CITY’s Risk Manager such certificate(s). h. The CONSULTANT shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages. i. The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming the CITY, its officers, employees, agents and volunteers as additional insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to the CITY. The CONSULTANT agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.
j. The insurance provided by the CONSULTANT shall be primary to any coverage available to the CITY. Any insurance or self-insurance maintained by the CITY, its officers, employees, agents, or volunteers, shall be in excess of CONSULTANT’s insurance and shall not contribute with it. k. All insurance coverage provided pursuant to this Agreement shall not prohibit the CONSULTANT, and CONSULTANT’s employees, agents or subconsultants, from waiving the right of subrogation prior to a loss. The CONSULTANT hereby waives all rights of subrogation against the CITY.

PROFESSIONAL SERVICES AGREEMENT NO. _____

l. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, the CONSULTANT shall either reduce or eliminate the deductibles or self-insured retentions with respect to the CITY, or the CONSULTANT shall procure a bond guaranteeing payment of losses and expenses.
m. Procurement of insurance by the CONSULTANT shall not be construed as a limitation of the CONSULTANT'S liability or as full performance of CONSULTANT’s duties to indemnify, hold harmless and defend under the indemnity covenants of this Agreement.

SECTION 16. SUBCONTRACT, ASSIGNMENT OR DELEGATION.

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

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

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

SECTION 17. NO WAIVER.

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

SECTION 18. DISPUTE RESOLUTION; GOVERNING LAW.

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

SECTION 19. ATTORNEY’S FEES AND COSTS.

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

PROFESSIONAL SERVICES AGREEMENT NO. _____

be entitled.

SECTION 20. WARRANTIES.

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

SECTION 21. MISCELLANEOUS.
a. The descriptive paragraph headings of this Agreement are included for purposes of convenience only and shall not control or affect the construction of interpretation of any of its provisions.
b. Whenever the context hereof shall so require, the singular shall include the plural, the male gender shall include the female gender, and the neuter and vice versa.
c. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained herein.
d. The representations and warranties made by the parties to this Agreement shall survive the consummation of the transaction herein described. e. This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile transmission, shall for all purposes be treated as if it were delivered containing an original manual signature of the party whose signature appears in the facsimile and shall be binding upon such party in the same manner as though an originally signed copy had been delivered. f. Each of the parties acknowledges that it has been represented by independent counsel of its own choosing, or if it has not been so represented, it has been admonished to obtain independent counsel and has freely and voluntarily waived and relinquished the right to counsel. Each party who has not obtained independent counsel acknowledges that the failure to have

PROFESSIONAL SERVICES AGREEMENT NO. _____

independent legal counsel will not excuse such party’s failure to perform under this Agreement or any agreement referred to in this Agreement.

SECTION 22. NOTICE.

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

If to CITY: City of Montebello
Attn: Raul Alvarez, City Manager
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200
Email: [email protected]
With a copy to: City of Montebello – Department Name
Attn: Name and Title of Department Head
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200 ext.

Email: [ENTER EMAIL ADDRESS]
If to Consultant: Consultant Name
Attn: ___________________
Address
City, CA #####
(###) ###-####
Email:

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 23. NON-DISCRIMINATION AND EQUAL OPPORTUNITY EMPLOYER.

In the performance of this Agreement, the CONSULTANT shall not discriminate against any employee, sub-consultant, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, mental condition or sexual orientation. The CONSULTANT will take affirmative action to ensure that subconsultant and applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.

PROFESSIONAL SERVICES AGREEMENT NO. _____

SECTION 24. CONFLICT OF INTEREST.

The CONSULTANT covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by the CONSULTANT under this Agreement, or which would conflict in any manner with the performance of its services hereunder. The CONSULTANT further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, the CONSULTANT shall avoid the appearance of having any interest that would conflict in any manner with the performance of its services pursuant to this Agreement.

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

SECTION 25. ENTIRE AGREEMENT.

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

PROFESSIONAL SERVICES AGREEMENT NO. _____

IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Agreement as of the date first written above. (“CITY”) (“CONSULTANT”)

CITY OF MONTEBELLO CONSULTANT NAME
Raul Alvarez, City Manager Full Name, Title
ATTEST:

Christopher Jimenez, City Clerk
APPROVED AS TO FORM:

Arnold M. Alvarez-Glasman, City Attorney
EXHIBITS:
• Exhibit A – Request for Proposals for Services and
Contractor’s Proposal
• Exhibit B – Schedule of Compensation
• Exhibit C – Labor Law Requirements [Delete if not applicable and/or continue listing Exhibits as applicable]
• Exhibit D – Live Scan Fingerprinting Requirement [Delete if not applicable and/or continue listing Exhibits as applicable]

EXHIBIT ‘B’
CONTRACTOR’S PROPOSAL

REFERENCES SHEET

5

ITEM # 23

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 SUBJECT: ADOPT RESOLUTION APPROVING A LEASE AGREEMENT WITH MAOF PROPERTIES, INC. FOR THE USE OF A DIGITAL MESSAGE
BOARD FOR THE PROPERTY LOCATED AT 401 N. GARFIELD
AVENUE
DATE: June 24, 2026
RECOMMENDATIONS:

It is recommended that the City Council:

1. Adopt Resolution No. 26-45, approving Sign Lease Agreement No. 4524 between the City of Montebello and MAOF Properties Inc.; and

2. Authorize the City Manager, or designee, to execute the Agreement and any nonsubstantive administrative documents necessary to implement the Agreement; and

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

FISCAL IMPACT:

Sign Lease Agreement No. 4524 (the “Agreement”) requires the City to pay annual rent of one dollar ($1.00) per year. No additional operational, maintenance, utility, or capital expenditures are anticipated. Any costs associated with preparing and submitting City advertisements would be absorbed within existing departmental budgets.

BACKGROUND/DISCUSSION:

The Mexican American Opportunity Foundation (MAOF) owns property located at 401 North Garfield Avenue in the City of Montebello. MAOF is proposing the installation and operation of a digital message board on its property, subject to applicable City of Montebello approvals and permitting requirements.

CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 24, 2026

Pursuant to the Agreement, the City would periodically utilize the sign's display time for municipal communications, public service announcements, community events, emergency notifications, and other informational messaging that serves Montebello residents and businesses. The proposed Sign Lease Agreement establishes the terms under which the City may utilize the digital message board while preserving MAOF's ownership and operational control of the sign.

ENVIRONMENTAL:

The proposed action consists of approval of a lease agreement governing the City's use of advertising space on a digital message board and does not, by itself, authorize construction or physical changes to the environment. The action is not a project pursuant to Section 15378 of the California Environmental Quality Act (CEQA) Guidelines.

Alternatively, the action may be considered exempt under CEQA Guidelines Section 15061(b)(3), the common-sense exemption, because it can be seen with certainty that approval of the Agreement will not have a significant effect on the environment.

ANALYSIS:

The proposed Agreement provides the City with a non-exclusive right to display City announcements, sponsored events, programs, and other public information on the digital message board located at 401 North Garfield Avenue. Under the Agreement, the City may advertise up to twelve (12) City-sponsored events per calendar year and may utilize up to five percent (5%) of the sign's total advertising time. City advertisements would generally be displayed during the two-week period preceding an advertised event and would be incorporated into the sign's normal operating schedule.

The Agreement would become effective upon execution and would commence when the sign becomes operational. The initial lease term is ten (10) years, with automatic annual renewals thereafter unless terminated in accordance with the Agreement.

The City will pay MAOF an annual lease payment of one dollar ($1.00) per year. MAOF would be responsible for all costs associated with operation, maintenance, repairs, electricity, and other utilities necessary for operation of the sign. The City would incur no maintenance or utility obligations under the Agreement.

The Agreement contains customary provisions regarding termination, assignment, notices, attorney fees, governing law, and mutual indemnification. The indemnification language requires each party to defend and indemnify the other against claims arising from its own acts or omissions.

Approval of the Agreement would provide the City with a valuable public communication tool at minimal cost while expanding opportunities to promote community events, public programs, emergency notifications, and other information of public interest.

CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 24, 2026

SUMMARY:

The proposed Sign Lease Agreement advances the City’s strategic goals of enhancing community engagement, improving public communication, and strengthening partnerships with community-based organizations. The Agreement provides the City with a cost-effective platform to disseminate information regarding City programs, events, public safety messaging, and community initiatives to residents and visitors along a major commercial corridor.

Staff recommends approval of the proposed Sign Lease Agreement because it provides a valuable public communication resource at a nominal cost to the City while leveraging a partnership with MAOF to expand outreach opportunities for City services, programs, and events.

ATTACHMENT(S)

1. Attachment A - CC Resolution 26-45_MAOF Sign Lease Agreement

2. Attachment B - Lease Agreement_MAOF

3. Attachment C - MAOF Montebello Sign Plans

ATTACHMENT A
RESOLUTION NO. 26-45

A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF

MONTEBELLO APPROVING A SIGN LEASE AGREEMENT WITH
MAOF PROPERTIES INC. FOR THE PROPERTY LOCATED AT 401

NORTH GARFIELD AVENUE

RECITALS
WHEREAS, the City of Montebello (the “City” or “Lessee”) intends to utilize a digital sign owned by MAOF Properties Inc. (“Lessor”) for the periodic display of public messaging at 401 North Garfield Avenue, Montebello, California (Los Angeles County Assessor's Parcel Number 6343-027-014) (the “Property”); and WHEREAS, Lessor is the owner of the proposed digital sign to be located on the Property; and
WHEREAS, the City desires to enter into a Sign Lease Agreement (the “Lease”) with Lessor for a ten (10) year term to allow the City to display City announcements, sponsored events, public service information, and other City-related messaging on the digital sign; and
WHEREAS, pursuant to the Lease, the City shall have the right to advertise up to twelve (12) City events per calendar year and utilize up to five percent (5%) of the sign's total advertising time; and
WHEREAS, the City shall pay to Lessor annual rent in the amount of one dollar ($1.00) per year commencing on the date the digital sign becomes operational; and WHEREAS, the City Council finds that the Lease will provide a valuable public communication resource to disseminate information regarding City programs, services, events, emergency notifications, and other matters of public interest; and WHEREAS, the City desires to enter into the Lease to further its public outreach and community engagement efforts.

NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY RESOLVES, FINDS, AND DECLARES AS FOLLOWS:

SECTION 1. The City Council hereby finds that the foregoing recitals are true and correct and are incorporated herein by this reference.

SECTION 2. Based upon all information presented to the City Council during its consideration of this matter, the City Council hereby approves Sign Lease Agreement No. 4524 between the City of Montebello and MAOF Properties Inc., substantially in the form presented to the City Council and approved as to form by the City Attorney.

RESOLUTION NO. 26-45

SECTION 3. The City Council hereby authorizes the City Manager, or designee, to execute the Sign Lease Agreement and any ancillary documents reasonably necessary to implement, administer, and effectuate the intent of this Resolution.

SECTION 4. The adoption of this Resolution is not subject to the California Environmental Quality Act (“CEQA”) pursuant to CEQA Guidelines Section 15060(c)(2) because the activity will not result in a direct or reasonably foreseeable indirect physical change to the environment. In addition, the action is exempt from CEQA pursuant to CEQA Guidelines Section 15061(b)(3), the common-sense exemption, because it can be seen with certainty that there is no possibility that approval of the Lease will have a significant effect on the environment. The Lease merely authorizes the City's use of advertising space on a privately owned digital sign and does not authorize construction or any physical modification to the Property.

SECTION 5. The City Council finds that approval of the Lease advances the City's Strategic Plan goals of enhancing community engagement, improving public communication, and strengthening partnerships with community-based organizations by providing a cost-effective platform for dissemination of City information and public service announcements.

SECTION 6. The City Clerk shall certify to the passage and adoption of this Resolution, and the same shall thereupon take effect and be in full force and effect.

APPROVED AND ADOPTED this 24th day of June, 2026.

_______________________________
Georgina Tamayo, Mayor
ATTEST: APPROVED AS TO FORM:

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

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF MONTEBELLO )

RESOLUTION NO. 26-45

I, Christopher Jimenez, City Clerk of the City of Montebello, County of Los Angeles, State of California, hereby certify that the foregoing Resolution No. 26-45 was passed and adopted by the City Council of the City of Montebello, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 24th day of June 2026 and that said Resolution was adopted by the following vote, to-wit:

AYES:

NOES:

ABSTAIN:

ABSENT:

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

DATE:

Christopher Jimenez, City Clerk

ATTACHMENT B

CITY OF MONTEBELLO
SIGN LEASE AGREEMENT NO. 4524
WITH THE MEXICAN AMERICAN OPPORTUNITY FOUNDATION (“MAOF”) PROPERTIES INC.

This Sign Lease Agreement (“Lease”) is made and effective on _________ (“Effective Date”), by and between the MAOF Properties Inc. (“Lessor”) and the City of Montebello, a municipal corporation (referred to as either “Lessee” or “City”). The Lessor and Lessee are at times collectively referred to hereinafter as the “Parties” or individually as the “Party.” THEREFORE, in consideration of the mutual promises herein, contained and other good and valuable consideration, it is agreed by the Parties as follows:

1. SIGN. Lessor does hereby lease and demise to Lessee, for outdoor advertising purposes, a digital sign fronting the Lessor’s property located at 401 N. Garfield Ave., Montebello, California 90640 or Los Angeles County Assessor’s Parcel No. 6343-027-014 (the “Sign”) as legally described and depicted in Exhibit “A-1 and A-2” attached hereto and incorporated by this reference.

The Sign shall remain the exclusive property of Lessor and Lessor shall have the right to remove the Sign at the expiration or earlier termination of this Lease. Lessor desires to lease the Sign to Lessee, and Lessee desires to lease the Sign from Lessor subject to the terms and upon the covenants, conditions, and provisions herein set forth.

2. TERM OF LEASE. The term of this Lease shall be ten (10) years commencing on the date the Sign becomes operational (the “Initial Term”). This Lease will renew automatically at the end of the Initial Term on a year-to-year basis (“Extended Term”), on the same terms as set forth herein, unless this lease is terminated pursuant to Paragraph 3.

3. TERMINATION OF LEASE. During the Initial Term or any Extended Term, either Party may terminate this Lease if the other Party breaches the terms set forth herein. The non-breaching Party shall send written notice to the breaching Party specifying the breach. The breaching Party shall then have thirty (30) days to cure the specified breach. If the breaching Party fails to cure the specified breach within such period of time, the non-breaching Party may terminate this Lease. After the Initial Term, either Party terminate this Lease at any time upon giving thirty (30) days written notice of termination.

4. RENTAL. Lessee shall pay to Lessor annual rent in the amount of one dollar ($1.00) per year commencing on the Sign’s Operational Date. For purposes of this Section, the Operational Date shall mean the date that the Sign is legal and functionally capable of displaying advertising or messages.

5. LESSEE’S RIGHT TO USE SIGN. Lessor hereby grants Lessee a non-exclusive right to use the Sign for the advertisement of City announcements, sponsored events, and programs that serve the needs of the City and its residents and businesses (“City Ad”). Lessee is permitted to advertise up to (12) City events per calendar year and the right to use up to five percent (5%) of the total advertising time for City Ads. The City Ad shall be displayed during the Sign’s operating hours spread out equally through the Sign’s operating hours for a period of two (2) weeks prior to the advertised City event in the same manner as other advertisements displayed on the Sign, but in no case shall the City Ad be displayed for less than eight (8) seconds at a time. The City shall submit a proposed copy to Lessor not less than ten (10) business days prior to the date the copy is proposed to be displayed. All proposed City Ads shall be prepared by and submitted at the City’s sole cost and, shall be in a format ready for posting on the Sign. Lessor, in its sole discretion, shall have the right to reject, in writing to the Lessee no less than five (5) business days prior to the date the copy is proposed to be displayed. Lessee represents and warrants that all copy, content, and materials

LEASE AGREEMENT NO. 4524

supplied by City for display under this Lease: (i) are owned or duly licensed by Lessee and do not infringe or misappropriate the rights of any other person or entity; (ii) comply with all applicable federal, state, and local laws, rules and regulations and any industry codes or rules by which Lessee and/or Lessor may be bound and do not contain any obscene, libelous, slanderous or otherwise defamatory materials or refer in an offensive manner to the gender, race or ethnicity of any individual or group; (iii) are accurate and that all claims contained therein have been substantiated; and (iv) do not infringe upon any copyright, trademark or other intellectual property or privacy right of any third party. The Sign shall operate seven (7) days per week, 365 days per year.

6. ASSIGNMENTS AND SUBLEASES. Lessee may not assign or otherwise transfer this Lease or any interest herein, and this Lease is not assignable by operation of law without Lessor’s prior written consent. Lessor shall respond in writing within thirty (30) days of receipt of any request by Lessee for an assignment or sublease of this Lease.

7. UTILITIES. Lessor shall be responsible for electricity and other services and utilities in connection with the use and operation of the Sign during the Term of the Lease. Lessee shall have no responsibility for any utilities costs, fees, or assessments associated with the operation of the Sign whatsoever.

8. PROPERTY TAXES. Lessor shall pay, prior to delinquency, all general real estate taxes and installments of special assessments coming due during the lease term.

9. MAINTENANCE AND REPAIR. Lessor shall be responsible for all the repair and maintenance of the Sign and related improvements on the premises at the sole cost of the Lessor.

Lessor does not guarantee that the Sign will be operational at all times. Lessor shall run City Ads so long as the Sign is operational.

10. MUTUAL INDEMNIFICATION. Each Party hereby agrees to indemnify, defend and hold the other Party, its officials, officers, employees, consultants, contractors, and agents (collectively, “Representatives”) harmless from and against any and all damages or other amounts payable to a third party claimant, as well as any reasonable attorneys’ fees and costs of litigation (collectively, “Damages”) arising out of or resulting from any claim, suit, proceeding or cause of action (each, a “Claim”) brought by a third party against a Party or its Representatives based on any act or omission by the indemnifying Party or its Representatives. .

11. ATTORNEYS FEES. In the event that any action is brought by either Party as against the other Party for the enforcement or declaration of any right or remedy in or under this Lease or for the breach of any covenant or condition of this Lease, the prevailing party will be entitled to recover, and the other party agrees to pay, all fees and costs to be fixed by the court including, but not limited to, attorneys’ fees.

12. NOTICE. Lessor and Lessee shall each have the right from time to time to change the place notice is to be given under this paragraph by written notice thereof to the other Party. Any notice required or permitted under this Lease shall be deemed sufficiently given or served if sent by United States certified mail, return receipt requested, addressed as follows:

If to Lessor: MAOF Properties Inc.
401 N. Garfield Avenue
Montebello, CA 90640
Attn: Real Estate Department
If to Lessee: City of Montebello
1600 W. Beverly Blvd.

LEASE AGREEMENT NO. 4524

Montebello, CA 90640
Attn: Director of Planning and Community Development

13. FINAL AGREEMENT. This Lease constitutes the entire agreement among the Parties and there are no conditions, representations, or agreements regarding the subject matter of this Lease, which are not expressed herein. This Lease supersedes any prior or contemporaneous agreements, representations, and negotiations.

14. MODIFICATIONS. Neither modification of this Lease nor any waiver of a provision hereof shall be of any force or effect unless the same is in writing and signed by the Parties hereto.

Lessor and Lessee agree to mutually consider reasonable requests for amendments to this Lease that may be made by either of them, provided such requests are consistent with this Lease and would not materially alter the basic terms included in this Lease.

15. TITLES AND HEADINGS. Titles and headings used in this Lease are for convenience of reference only and shall not be considered in interpreting the meaning of any provision of this lease.

16. SEVERABILITY. If any term, provision, condition or covenant of this Lease or its application to any Party or circumstance is held, to any extent, invalid or unenforceable, the remainder of this Lease, or the application of the term, provision, condition or covenant to persons or circumstances other than those as to whom or which it is held invalid or unenforceable, will not be affected and will be valid and enforceable to the fullest extent permitted by law.

17. GOVERNING LAW. This Lease shall be governed, construed and interpreted by, through and under the laws of the State of California.
[Signatures on the following page]

LEASE AGREEMENT NO. 4524

IN WITNESS WHEREOF, the Parties have executed this Lease as of the day and year first above written.

MAOF PROPERTIES INC. (“Lessor”)
By:______________________________

Its:___________________
Date:_____________________________
CITY OF MONTEBELLO, a municipal
corporation (“Lessee”)
By:_______________________________
Raul Alvarez, City Manager
Date:_____________________________
ATTEST:

By:______________________________
Christopher Jimenez, City Clerk
APPROVED AS TO FORM:

By:______________________________
Arnold M. Alvarez-Glasman
City Attorney
EXHIBITS:
• A-1
• A-2

Exhibit “A-1”

LEGAL DESCRIPTION
P M 265-19-20 LOT 2

Exhibit “A-2”

SITE AERIAL

Proposed Sign Location

401 N Garfield Ave., Montebello, CA 90640
Vicinity Map
Scale: NTS 1
Location:

MAOF
401 N Garfield Ave
Montebello, CA 90640
05/08/2025
Melissa Nava
Vincent Nino
As Noted
5/29/25 opt 2, add details
R01
00000
1 5
1 ATTACHMENT C

Plot Plan
Scale: nts
1 A
Location:

MAOF
401 N Garfield Ave
Montebello, CA 90640
05/08/2025
Melissa Nava Vincent Nino
As Noted
5/29/25 opt 2, add details
R01
00000
25 1

Northeast Elevation - Proposed Signage
Scale: nts 1
401 N
Garfield Ave
Location:

MAOF
401 N Garfield Ave
Montebello, CA 90640
05/08/2025
Melissa Nava
Vincent Nino
As Noted
5/29/25 opt 2, add details
R01
00000
3 5
1

Sign Elevation Layout Square Footage: 24.00
Qty: One (1) Required Scale: ½” = 1’-0” A
Manufacture and install signle face illuminated pylon sign Cabinet: (1) S/F LED board
Returns: 12” deep painted to match PMS 7455 C
Post: TBD by engineer
Pole cover: Aluminum painted to match PMS 7455 C
Note: Footing TBD by engineer
Side View
Scale: ½” = 1’-0” 1
4’-0” 4’-0”
6’-0”
8’-0”
401 N
Garfield Ave
2’-0”
1’-0”
Pole cover detail
Scale: ¾” = 1’-0” 2
401 N
Garfield Ave
10” 4” 2 ¾” 2 ¾”
1’-6”
White acrylic push thru
w/ 1st surface vinyl
White acrylic push thru
White acrylic FCO
Location:

MAOF
401 N Garfield Ave
Montebello, CA 90640
05/08/2025
Melissa Nava
Vincent Nino
As Noted
5/29/25 opt 2, add details
R01
00000
4 5
1

Construction Detail - Rear View
Scale: ½” = 1’-0” 1
Soil
Concrete footing per engineer
1 ½” sq. tube framing
4’-0” 4’-0”
8’-0”
2” x 2” x 3/16” aluminum
angle saddles with
½” machine thru bolts
Steel plate, refer to engineering for
plate specifications and install method
LED Display cabinet, rear view
6’-0”
2” x 2” x 3/16” angle iron saddles
bolted to horizontal
2 ½” x 2 ½” x 3/16 angle iron behind LED board with
½” machine thru bolts
½” machine thru bolts thru saddles to
4” standard steel square tube
1'-0”
Construction Detail - Side View
Scale: ½” = 1’-0” 2
Location:

MAOF
401 N Garfield Ave
Montebello, CA 90640
05/08/2025
Melissa Nava
Vincent Nino
As Noted
5/29/25 opt 2, add details
R01
00000
5 5
1

ITEM # 24

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager

BY: John Soria, Director of Transportation
SUBJECT: APPROVE BLANKET PURCHASE ORDERS WITH AFTERMARKET

PARTS COMPANY LLC, AMERICAN MOVING PARTS LLC, CUMMINS
CAL PACIFIC LLC, INLAND KENWORTH, INC., WAYNE HARMEIER, INC., AND RUSH TRUCK CENTERS OF CALIFORNIA INC. FOR

MAINTENANCE-RELATED BUS PARTS, FIRE APPARATUS PARTS,

AND VEHICLE FLEET PARTS
DATE: June 24, 2026
RECOMMENDATIONS:

It is recommended that the City Council:

1. Approve establishing a blanket purchase order (PO) with Aftermarket Parts Company LLC (Aftermarket Parts), for a total not-to-exceed (NTE) amount of $300,000, to purchase maintenance-related bus parts for Fiscal Year 2026-27; and

2. Approve establishing a blanket PO with American Moving Parts LLC (American Moving Parts), for a total NTE amount of $140,000, to purchase maintenancerelated bus and fire apparatus parts for both Montebello Bus Lines (MBL) and the Montebello Fire Department (MFD) for FY 2026-27; and

3. Approve establishing a blanket PO with Cummins Cal Pacific LLC (Cummins Pacific), for a total NTE amount of $140,000, to purchase maintenance-related bus and fleet parts for both MBL and the MFD for FY 2026-27; and

4. Approve establishing a blanket PO with Inland Kenworth, Inc. (Inland Kenworth), for a total NTE amount of $75,000, to purchase maintenance-related bus parts for FY 2026-27; and

5. Approve establishing a blanket PO with Wayne Harmeier, Inc. (dba Wayne Electric Company), for a total NTE amount of $80,000, to purchase maintenance-related bus parts for FY 2026-27; and

CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 24, 2026

6. Approve establishing a blanket PO with Western States Converters & Transmissions, Inc. (Western States), for a total NTE amount of $75,000, to purchase maintenance-related bus parts for FY 2026-27; and

7. Approve establishing a blanket PO with Rush Truck Centers of California, Inc. (Rush Truck), for a NTE amount of $100,000, to purchase maintenance-related bus and vehicle fleet parts for FY 2026-27; and

8. Take such additional, related, action as may be desirable.

FISCAL IMPACT:

Sufficient funds have been appropriated in the Fiscal Year 2026-27 adopted operating budget within the Transit Fund and General Fund for the various blanket purchase orders and related bus and vehicle parts and equipment purchases. Therefore, no budget amendment is required as part of the recommended actions. Tables 1-7 detail the allocated amounts and corresponding account numbers:

CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 24, 2026

BACKGROUND/DISCUSSION:

The City of Montebello operates Montebello Bus Lines (MBL), which includes a fleet of sixty-six (66) buses, nine (9) relief vehicles, and thirteen (13) support vehicles, which all require ongoing maintenance. The most efficient and cost-effective way to purchase replacement bus, fire apparatus, and vehicle fleet parts is to establish blanket purchase orders (POs) with the primary companies that supply these maintenance-related parts.

Staff will utilize the City’s procurement processes in accordance with the Montebello Municipal Code (MMC), Section 3.20.050(B) – Conformance with Bidding Procedures and Section 3.20.125(A-B) – Piggybacking Purchasing Agreements, as applicable. The sole-source and piggyback procurement methods will be used for the acquisition of various goods and services, including, but not limited to:

CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 24, 2026

• Aftermarket Parts: headlights, fan control modules, clamps, windshield wipers, coolants, airbags, clutches, stabilizers, and thrust washers. • American Moving Parts: engines, brake kits, air dryer cartridge kits, cables, filters, transmission drums, wheel linings, and sensor replacement. • Cummins Pacific: spark plug kits, fan supports, ignition coils, engine rods, electronic control modules, engine wiring harness, and water pumps. • Inland Kenworth: valves, relays, hoses, seals, cylinder heads, tubes, engine control modules, engine in-frame kits, coil extensions, and sensors. • Wayne Electric Company: EMP alternators, air conditioning compressors, toggle switches, fan drivers, farebox motors, pumps, and filters. • Western States: Transmission units and related parts. • Rush Truck: engine and emission parts, engine cooling components, and transmissions.

Montebello Municipal Code (MMC) Sections 3.20.050(B) and 3.20.125(A-B) authorize alternative procurement methods when formal bidding is not required or practical. Staff recommend establishing blanket POs through both the piggyback and sole-source procurement processes to ensure the timely acquisition of maintenance-related and OEM parts necessary for the continued operation of the Monteello Bus Lines (MBL) and Montebello Fire Department (MFD) fleets. This includes utilizing competitively awarded cooperative purchasing agreements through Sourcewell (Attachment B), as well as approved sole-source vendors that provide specialized parts and equipment. These procurement methods promote operational efficiency, cost savings, and compliance with the City's purchasing requirements.

ENVIRONMENTAL:

N/A
ANALYSIS:

N/A
SUMMARY:

For FY 2026-27, staff recommend the City Council approve establishing a blanket PO with Aftermarket Parts for a total not-to-exceed (NTE) amount of $300,000, to purchase maintenance-related bus parts; approve establishing a blanket PO with American Moving Parts for a total NTE amount of $140,000, to purchase maintenance-related bus and fire apparatus parts for both MBL and the MFD; approve establishing a blanket PO with Cummins Pacific for a total NTE amount of $140,000, to purchase maintenance-related bus and fleet parts for MBL and MFD; approve establishing a blanket PO with Inland Kenworth for a total NTE amount of $75,000, to purchase maintenance-related bus parts; approve establishing a blanket PO with Wayne Electric Company for a total NTE amount of $80,000, to purchase maintenance-related bus parts; approve establishing a blanket PO with Western States for a total NTE amount of $75,000, to purchase bus transmission

CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 24, 2026

units and related parts; approve establishing a blanket PO with Rush Truck for a total NTE amount of $100,000, to purchase maintenance-related bus and vehicle parts; and take such additional, related, action as may be desirable.

The adopted FY 2026-27 budget includes funding in the Transit and Fire Department budgets for the purchases of vehicle parts under each of these blanket purchase orders.

ATTACHMENT(S)

1. Attachment A – Purchase Orders

2. Attachment B – Sourcewell Contract No. 032824-RTG – Rush Truck Enterprises

032824-RTG
Rev. 3/2022 1
Solicitation Number: RFP #032824

CONTRACT
This Contract is between Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 (Sourcewell) and Rush Truck Centers of Texas, L.P., 555 IH-35 South Ste. 500, New Braunfels, TX 78130 (Supplier).

Sourcewell is a State of Minnesota local government unit and service cooperative created under the laws of the State of Minnesota (Minnesota Statutes Section 123A.21) that offers cooperative procurement solutions to government entities. Participation is open to eligible federal, state/province, and municipal governmental entities, higher education, K-12 education, nonprofit, tribal government, and other public entities located in the United States and Canada.

Sourcewell issued a public solicitation for Class 4-8 Chassis and Cabs with Related Equipment, Accessories, and Services from which Supplier was awarded a contract.

Supplier desires to contract with Sourcewell to provide equipment, products, or services to Sourcewell and the entities located in the United States that access Sourcewell’s cooperative purchasing contracts (Participating Entities).

1. TERM OF CONTRACT
A. EFFECTIVE DATE. This Contract is effective upon the date of the final signature below.

EXPIRATION DATE AND EXTENSION. This Contract expires July 9, 2028, unless it is cancelled sooner pursuant to Article 22. This Contract allows up to three additional one-year extensions upon the request of Sourcewell and written agreement by Supplier. Sourcewell retains the right to consider additional extensions beyond seven years as required under exceptional circumstances.

B. SURVIVAL OF TERMS. Notwithstanding any expiration or termination of this Contract, all payment obligations incurred prior to expiration or termination will survive, as will the following: Articles 11 through 14 survive the expiration or cancellation of this Contract. All other rights will cease upon expiration or termination of this Contract. 




 


 


 

032824-RTG
Rev. 3/2022 2

2. EQUIPMENT, PRODUCTS, OR SERVICES
A. EQUIPMENT, PRODUCTS, OR SERVICES. Supplier will provide the Equipment, Products, or Services as stated in its Proposal submitted under the Solicitation Number listed above.

Supplier’s Equipment, Products, or Services Proposal (Proposal) is attached and incorporated into this Contract.

All Equipment and Products provided under this Contract must be new and the current model.

Supplier may offer close-out or refurbished Equipment or Products if they are clearly indicated in Supplier’s product and pricing list. Unless agreed to by the Participating Entities in advance, Equipment or Products must be delivered as operational to the Participating Entity’s site.

This Contract offers an indefinite quantity of sales, and while substantial volume is anticipated, sales and sales volume are not guaranteed.

B. WARRANTY. Supplier warrants that all Equipment, Products, and Services furnished are free from liens and encumbrances, subject to the Notice of Security Interest attached hereto as Exhibit A for Participating Entities with deferred payment terms. Any warranties on any Equipment and Products sold by Rush are limited only to any printed warranty provided by the applicable manufacturer of the Equipment or Product. Supplier agrees to assist the Participating Entity in reaching a resolution in any dispute over warranty terms with the manufacturer. Supplier warrants that all services performed by Supplier for a Participating Entity, including repair, maintenance, and installation services (“Services”), will be performed in a good and workmanlike manner in accordance with industry standards (“Services Warranty”).

The Services Warranty is valid for a period of ninety (90) days from the date the Service is completed.

C. DEALERS, DISTRIBUTORS, AND/OR RESELLERS. Equipment, Products and Services will be offered for sale to Participating Entities through Supplier and its affiliates as stated in Supplier’s Proposal. Upon Contract execution and throughout the Contract term, Supplier must provide to Sourcewell a current means to validate or authenticate Supplier’s authorized dealers, distributors, or resellers relative to the Equipment, Products, and Services offered under this Contract, which will be incorporated into this Contract by reference. It is the Supplier’s responsibility to ensure Sourcewell receives the most current information.

3. PRICING
All Equipment, Products, or Services under this Contract will be priced at or below the price stated in Supplier’s Proposal.

When providing pricing quotes to Participating Entities, all pricing quoted must reflect a Participating Entity’s total cost of acquisition. This means that the quoted cost is for delivered 




 


 


 

032824-RTG
Rev. 3/2022 3
Equipment, Products, and Services that are operational for their intended purpose, and includes all costs to the Participating Entity’s requested delivery location.

Regardless of the payment method chosen by the Participating Entity, the total cost associated with any purchase option of the Equipment, Products, or Services must always be disclosed in the pricing quote to the applicable Participating Entity at the time of purchase.

A. SHIPPING AND SHIPPING COSTS. All delivered Equipment and Products must be properly packaged. Damaged Equipment and Products may be rejected. If the damage is not readily apparent at the time of delivery, Supplier must permit the Equipment and Products to be returned within a reasonable time at no cost to Sourcewell or its Participating Entities.

Participating Entities reserve the right to inspect the Equipment and Products at a reasonable time after delivery where circumstances or conditions prevent effective inspection of the Equipment and Products at the time of delivery. In the event of the delivery of nonconforming Equipment and Products, the Participating Entity will notify the Supplier as soon as possible and the Supplier will replace nonconforming Equipment and Products with conforming Equipment and Products that are acceptable to the Participating Entity.

Supplier must arrange for and pay for the return shipment on Equipment and Products that arrive in a defective or inoperable condition.

Sourcewell may declare the Supplier in breach of this Contract if the Supplier intentionally delivers substandard or inferior Equipment or Products.

B. SALES TAX. Each Participating Entity is responsible for supplying the Supplier with valid taxexemption certification(s). When ordering, a Participating Entity must indicate if it is a taxexempt entity.

C. HOT LIST PRICING. At any time during this Contract, Supplier may offer a specific selection of Equipment, Products, or Services at discounts greater than those listed in the Contract.

When Supplier determines it will offer Hot List Pricing, it must be submitted electronically to Sourcewell in a line-item format. Equipment, Products, or Services may be added or removed from the Hot List at any time through a Sourcewell Price and Product Change Form as defined in Article 4 below.

Hot List program and pricing may also be used to discount and liquidate close-out and discontinued Equipment and Products as long as those close-out and discontinued items are clearly identified as such. Current ordering process and administrative fees apply. Hot List Pricing must be published and made available to all Participating Entities. 




 


 


 

032824-RTG
Rev. 3/2022 4

4. PRODUCT AND PRICING CHANGE REQUESTS
Supplier may request Equipment, Product, or Service changes, additions, or deletions at any time. All requests must be made in writing by submitting a signed Sourcewell Price and Product Change Request Form to the assigned Sourcewell Supplier Development Administrator. This approved form is available from the assigned Sourcewell Supplier Development Administrator.

At a minimum, the request must:
x Identify the applicable Sourcewell contract number;
x Clearly specify the requested change;
x Provide sufficient detail to justify the requested change; x Individually list all Equipment, Products, or Services affected by the requested change, along with the requested change (e.g., addition, deletion, price change); and x Include a complete restatement of pricing documentation in Microsoft Excel with the effective date of the modified pricing, or product addition or deletion. The new pricing restatement must include all Equipment, Products, and Services offered, even for those items where pricing remains unchanged.

A fully executed Sourcewell Price and Product Change Request Form will become an amendment to this Contract and will be incorporated by reference.

5. PARTICIPATION, CONTRACT ACCESS, AND PARTICIPATING ENTITY REQUIREMENTS

A. PARTICIPATION. Sourcewell’s cooperative contracts are available and open to public and nonprofit entities across the United States and Canada; such as federal, state/province, municipal, K-12 and higher education, tribal government, and other public entities.

The benefits of this Contract should be available to all Participating Entities located in the United States that can legally access the Equipment, Products, or Services under this Contract.

A Participating Entity’s authority to access this Contract is determined through its cooperative purchasing, interlocal, or joint powers laws. Any entity accessing benefits of this Contract will be considered a Service Member of Sourcewell during such time of access. Supplier understands that a Participating Entity’s use of this Contract is at the Participating Entity’s sole convenience and Participating Entities reserve the right to obtain like Equipment, Products, or Services from any other source.

Supplier is responsible for familiarizing its sales and service forces with Sourcewell contract use eligibility requirements and documentation and will encourage potential participating entities to join Sourcewell. Sourcewell reserves the right to add and remove Participating Entities to its roster during the term of this Contract.





 


 


 

032824-RTG
Rev. 3/2022 5
B. PUBLIC FACILITIES. Supplier’s employees may be required to perform work at governmentowned facilities, including schools. Supplier’s employees and agents must conduct themselves in a professional manner while on the premises, and in accordance with Participating Entity policies and procedures, and all applicable laws.

6. PARTICIPATING ENTITY USE AND PURCHASING
A. ORDERS AND PAYMENT. To access the contracted Equipment, Products, or Services under this Contract, a Participating Entity must clearly indicate to Supplier that it intends to access this Contract; however, order flow and procedure will be developed jointly between Sourcewell and Supplier. Typically, a Participating Entity will issue an order directly to Supplier or its authorized subsidiary, distributor, dealer, or reseller. If a Participating Entity issues a purchase order, it may use its own forms, but the purchase order should clearly note the applicable Sourcewell contract number. All Participating Entity orders under this Contract must be issued prior to expiration or cancellation of this Contract; however, Supplier performance, Participating Entity payment obligations, and any applicable warranty periods or other Supplier or Participating Entity obligations may extend beyond the term of this Contract.

Supplier’s acceptable forms of payment are included in its attached Proposal. Participating Entities will be solely responsible for payment and Sourcewell will have no liability for any unpaid invoice of any Participating Entity.

B. ADDITIONAL TERMS AND CONDITIONS/PARTICIPATING ADDENDUM. Additional terms and conditions to a purchase order, or other required transaction documentation, may be negotiated between a Participating Entity and Supplier, such as job or industry-specific requirements, legal requirements (e.g., affirmative action or immigration status requirements), or specific local policy requirements. Some Participating Entities may require the use of a Participating Addendum, the terms of which will be negotiated directly between the Participating Entity and the Supplier or its authorized dealers, distributors, or resellers, as applicable. Any negotiated additional terms and conditions must never be less favorable to the Participating Entity than what is contained in this Contract.

C. SPECIALIZED SERVICE REQUIREMENTS. In the event that the Participating Entity requires service or specialized performance requirements not addressed in this Contract (such as ecommerce specifications, specialized delivery requirements, or other specifications and requirements), the Participating Entity and the Supplier may enter into a separate, standalone agreement, apart from this Contract. Sourcewell, including its agents and employees, will not be made a party to a claim for breach of such agreement.

D. TERMINATION OF ORDERS. Participating Entities may terminate an order, in whole or in part, immediately upon notice to Supplier in the event of any of the following events:





 


 


 

032824-RTG
Rev. 3/2022 6

1. The Participating Entity fails to receive funding or appropriation from its governing body at levels sufficient to pay for the equipment, products, or services to be purchased; or

2. Federal, state, or provincial laws or regulations prohibit the purchase or change the Participating Entity’s requirements.

E. GOVERNING LAW AND VENUE. The governing law and venue for any action related to a Participating Entity’s order will be determined by the Participating Entity making the purchase.

7. CUSTOMER SERVICE
A. PRIMARY ACCOUNT REPRESENTATIVE. Supplier will assign an Account Representative to Sourcewell for this Contract and must provide prompt notice to Sourcewell if that person is changed. The Account Representative will be responsible for:

x Maintenance and management of this Contract;
x Timely response to all Sourcewell and Participating Entity inquiries; and x Business reviews to Sourcewell and Participating Entities, if applicable.

B. BUSINESS REVIEWS. Supplier must perform a minimum of one business review with Sourcewell per contract year. The business review will cover sales to Participating Entities, pricing and contract terms, administrative fees, sales data reports, performance issues, supply issues, customer issues, and any other necessary information.

8. REPORT ON CONTRACT SALES ACTIVITY AND ADMINISTRATIVE FEE PAYMENT A. CONTRACT SALES ACTIVITY REPORT. Each calendar quarter, Supplier must provide a contract sales activity report (Report) to the Sourcewell Supplier Development Administrator assigned to this Contract. Reports are due no later than 45 days after the end of each calendar quarter. A Report must be provided regardless of the number or amount of sales during that quarter (i.e., if there are no sales, Supplier must submit a report indicating no sales were made).

The Report must contain the following fields:
x Participating Entity Name (e.g., City of Staples Highway Department); x Participating Entity Physical Street Address;
x Participating Entity City;
x Participating Entity State/Province;
x Participating Entity Zip/Postal Code;
x Participating Entity Contact Name;
x Participating Entity Contact Email Address;
x Participating Entity Contact Telephone Number;





 


 


 

032824-RTG
Rev. 3/2022 7
x Sourcewell Assigned Entity/Participating Entity Number; x Item Purchased Description;
x Item Purchased Price;
x Sourcewell Administrative Fee Applied; and
x Date Purchase was invoiced/sale was recognized as revenue by Supplier.

B. ADMINISTRATIVE FEE. In consideration for the support and services provided by Sourcewell, the Supplier will pay an administrative fee to Sourcewell on all Equipment, Products, and Services provided to Participating Entities. The Administrative Fee must be included in, and not added to, the pricing. Supplier may not charge Participating Entities more than the contracted price to offset the Administrative Fee.

The Supplier will submit payment to Sourcewell for the percentage of administrative fee stated in the Proposal multiplied by the total sales of all Equipment, Products, and Services purchased by Participating Entities under this Contract during each calendar quarter. Payments should note the Supplier’s name and Sourcewell-assigned contract number in the memo; and must be mailed to the address above “Attn: Accounts Receivable” or remitted electronically to Sourcewell’s banking institution per Sourcewell’s Finance department instructions. Payments must be received no later than 45 calendar days after the end of each calendar quarter.

Supplier agrees to cooperate with Sourcewell in auditing transactions under this Contract to ensure that the administrative fee is paid on all items purchased under this Contract.

In the event the Supplier is delinquent in any undisputed administrative fees, Sourcewell reserves the right to cancel this Contract and reject any proposal submitted by the Supplier in any subsequent solicitation. In the event this Contract is cancelled by either party prior to the Contract’s expiration date, the administrative fee payment will be due no more than 30 days from the cancellation date.

9. AUTHORIZED REPRESENTATIVE
Sourcewell's Authorized Representative is its Chief Procurement Officer.

Supplier’s Authorized Representative is the person named in the Supplier’s Proposal. If Supplier’s Authorized Representative changes at any time during this Contract, Supplier must promptly notify Sourcewell in writing.

10. AUDIT, ASSIGNMENT, AMENDMENTS, WAIVER, AND CONTRACT COMPLETE A. AUDIT. Pursuant to Minnesota Statutes Section 16C.05, subdivision 5, the books, records, documents, and accounting procedures and practices relevant to this Contract are subject to examination by Sourcewell or the Minnesota State Auditor for a minimum of six years from the 




 


 


 

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end of this Contract. This clause extends to Participating Entities as it relates to business conducted by that Participating Entity under this Contract.

B. ASSIGNMENT. Neither party may assign or otherwise transfer its rights or obligations under this Contract without the prior written consent of the other party and a fully executed assignment agreement. Such consent will not be unreasonably withheld. Any prohibited assignment will be invalid.

C. AMENDMENTS. Any amendment to this Contract must be in writing and will not be effective until it has been duly executed by the parties.

D. WAIVER. Failure by either party to take action or assert any right under this Contract will not be deemed a waiver of such right in the event of the continuation or repetition of the circumstances giving rise to such right. Any such waiver must be in writing and signed by the parties.

E. CONTRACT COMPLETE. This Contract represents the complete agreement between the parties. No other understanding regarding this Contract, whether written or oral, may be used to bind either party. For any conflict between the attached Proposal and the terms set out in Articles 1-22 of this Contract, the terms of Articles 1-22 will govern.

F. RELATIONSHIP OF THE PARTIES. The relationship of the parties is one of independent contractors, each free to exercise judgment and discretion with regard to the conduct of their respective businesses. This Contract does not create a partnership, joint venture, or any other relationship such as master-servant, or principal-agent.

11. INDEMNITY AND HOLD HARMLESS

Supplier must indemnify, defend, save, and hold Sourcewell and its Participating Entities, including their agents and employees, harmless from any claims or causes of action, including attorneys’ fees incurred by Sourcewell or its Participating Entities, brought or alleged by unaffiliated third parties arising out of any negligent act or omission in the performance of this Contract by the Supplier or its agents or employees; this indemnification includes injury or death to person(s) or property alleged to have been caused by the negligent act or omission of Supplier relating to the Equipment, Products, or Services provided by Supplier under this Contract. Sourcewell’s responsibility will be governed by the State of Minnesota’s Tort Liability Act (Minnesota Statutes Chapter 466) and other applicable law.

12. GOVERNMENT DATA PRACTICES
Supplier and Sourcewell must comply with the Minnesota Government Data Practices Act, Minnesota Statutes Chapter 13, as it applies to all data provided by or provided to Sourcewell 




 


 


 

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under this Contract and as it applies to all data created, collected, received, maintained, or disseminated by the Supplier under this Contract.

13. INTELLECTUAL PROPERTY, PUBLICITY, MARKETING, AND ENDORSEMENT A. INTELLECTUAL PROPERTY

1. Grant of License. During the term of this Contract:
a. Sourcewell grants to Supplier a royalty-free, worldwide, non-exclusive right and license to use the trademark(s) provided to Supplier by Sourcewell in advertising and promotional materials for the purpose of marketing Sourcewell’s relationship with Supplier.
b. Supplier grants to Sourcewell a royalty-free, worldwide, non-exclusive right and license to use Supplier’s trademarks in advertising and promotional materials for the purpose of marketing Supplier’s relationship with Sourcewell.

2. Limited Right of Sublicense. The right and license granted herein includes a limited right of each party to grant sublicenses to their respective subsidiaries, distributors, dealers, resellers, marketing representatives, and agents (collectively “Permitted Sublicensees”) in advertising and promotional materials for the purpose of marketing the Parties’ relationship to Participating Entities. Any sublicense granted will be subject to the terms and conditions of this Article. Each party will be responsible for any breach of this Article by any of their respective sublicensees.

3. Use; Quality Control.
a. Neither party may alter the other party’s trademarks from the form provided and must comply with removal requests as to specific uses of its trademarks or logos.
b. Each party agrees to use, and to cause its Permitted Sublicensees to use, the other party’s trademarks only in good faith and in a dignified manner consistent with such party’s use of the trademarks. Upon written notice to the breaching party, the breaching party has 30 days of the date of the written notice to cure the breach or the license will be terminated.

4. Termination. Upon the termination of this Contract for any reason, each party, including Permitted Sublicensees, will have 30 days to remove all Trademarks from signage, websites, and the like bearing the other party’s name or logo (excepting Sourcewell’s pre-printed catalog of suppliers which may be used until the next printing). Supplier must return all marketing and promotional materials, including signage, provided by Sourcewell, or dispose of it according to Sourcewell’s written directions.

B. PUBLICITY. Any publicity regarding the subject matter of this Contract must not be released without prior written approval from the Authorized Representatives. Publicity includes notices, informational pamphlets, press releases, research, reports, signs, and similar public notices prepared by or for the Supplier individually or jointly with others, or any subcontractors, with respect to the program, publications, or services provided resulting from this Contract. 




 


 


 

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C. MARKETING. Any direct advertising, marketing, or offers with Participating Entities must be approved by Sourcewell. Send all approval requests to the Sourcewell Supplier Development Administrator assigned to this Contract.

D. ENDORSEMENT. The Supplier must not claim that Sourcewell endorses its Equipment, Products, or Services.

14. GOVERNING LAW, JURISDICTION, AND VENUE
The substantive and procedural laws of the State of Minnesota will govern this Contract. Venue for all legal proceedings arising out of this Contract, or its breach, must be in the appropriate state court in Todd County, Minnesota or federal court in Fergus Falls, Minnesota.

15. FORCE MAJEURE
Neither party to this Contract will be held responsible for delay or default caused by acts of God or other conditions that are beyond that party’s reasonable control. A party defaulting under this provision must provide the other party prompt written notice of the default.

16. SEVERABILITY
If any provision of this Contract is found by a court of competent jurisdiction to be illegal, unenforceable, or void then both parties will be relieved from all obligations arising from that provision. If the remainder of this Contract is capable of being performed, it will not be affected by such determination or finding and must be fully performed.

17. PERFORMANCE, DEFAULT, AND REMEDIES
A. PERFORMANCE. During the term of this Contract, the parties will monitor performance and address unresolved contract issues as follows:

1. Notification. The parties must promptly notify each other of any known dispute and work in good faith to resolve such dispute within a reasonable period of time. If necessary, Sourcewell and the Supplier will jointly develop a short briefing document that describes the issue(s), relevant impact, and positions of both parties.

2. Escalation. If parties are unable to resolve the issue in a timely manner, as specified above, either Sourcewell or Supplier may escalate the resolution of the issue to a higher level of management. The Supplier will have 30 calendar days to cure an outstanding issue.

3. Performance while Dispute is Pending. Notwithstanding the existence of a dispute, the Supplier must continue without delay to carry out all of its responsibilities under the Contract that are not affected by the dispute. If the Supplier fails to continue without delay to perform its responsibilities under the Contract, in the accomplishment of all undisputed 




 


 


 

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work, the Supplier will bear any additional costs incurred by Sourcewell and/or its Participating Entities as a result of such failure to proceed.

B. DEFAULT AND REMEDIES. Either of the following constitutes cause to declare this Contract, or any Participating Entity order under this Contract, in default:

1. Nonperformance of contractual requirements, or

2. A material breach of any term or condition of this Contract.

The party claiming default must provide written notice of the default, with 30 calendar days to cure the default. Time allowed for cure will not diminish or eliminate any liability for liquidated or other damages. If the default remains after the opportunity for cure, the non-defaulting party may:
x Exercise any remedy provided by law or equity, or
x Terminate the Contract or any portion thereof, including any orders issued against the Contract.

18. INSURANCE

A. REQUIREMENTS. At its own expense, Supplier must maintain insurance policy(ies) in effect at all times during the performance of this Contract with insurance company(ies) licensed or authorized to do business in the State of Minnesota having an “AM BEST” rating of A- or better, with coverage and limits of insurance not less than the following:

1. Workers’ Compensation and Employer’s Liability.

Workers’ Compensation: As required by any applicable law or regulation.

Employer's Liability Insurance: must be provided in amounts not less than listed below:

Minimum limits:
$500,000 each accident for bodily injury by accident
$500,000 policy limit for bodily injury by disease
$500,000 each employee for bodily injury by disease

2. Commercial General Liability Insurance. Supplier will maintain insurance covering its operations, with coverage on an occurrence basis, and must be subject to terms no less broad than the Insurance Services Office (“ISO”) Commercial General Liability Form CG0001 (2001 or newer edition), or equivalent. At a minimum, coverage must include liability arising from premises, operations, bodily injury and property damage, independent contractors, products-completed operations including construction defect, contractual liability, blanket contractual liability, and personal injury and advertising injury. All required limits, terms and conditions of coverage must be maintained during the term of this Contract.

Minimum Limits:





 


 


 

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$1,000,000 each occurrence Bodily Injury and Property Damage $1,000,000 Personal and Advertising Injury
$2,000,000 aggregate for products liability-completed operations $2,000,000 general aggregate

3. Commercial Automobile Liability Insurance. During the term of this Contract, Supplier will maintain insurance covering all owned, hired, and non-owned automobiles in limits of liability not less than indicated below. The coverage must be subject to terms no less broad than ISO Business Auto Coverage Form CA 0001 (2010 edition or newer), or equivalent.

Minimum Limits:
$1,000,000 each accident, combined single limit

4. Umbrella Insurance. During the term of this Contract, Supplier will maintain umbrella coverage over Employer’s Liability, Commercial General Liability, and Commercial Automobile.

Minimum Limits:
$2,000,000
Failure of Supplier to maintain the required insurance will constitute a material breach entitling Sourcewell to immediately terminate this Contract for default.

B. CERTIFICATES OF INSURANCE. Prior to commencing under this Contract, Supplier must furnish to Sourcewell a certificate of insurance, as evidence of the insurance required under this Contract. Prior to expiration of the policy(ies), renewal certificates must be mailed to Sourcewell, 202 12th Street Northeast, P.O. Box 219, Staples, MN 56479 or sent to the Sourcewell Supplier Development Administrator assigned to this Contract. The certificates must be signed by a person authorized by the insurer(s) to bind coverage on their behalf.

Failure to request certificates of insurance by Sourcewell, or failure of Supplier to provide certificates of insurance, in no way limits or relieves Supplier of its duties and responsibilities in this Contract.

C. ADDITIONAL INSURED ENDORSEMENT AND PRIMARY AND NON-CONTRIBUTORY INSURANCE CLAUSE. Supplier agrees to list Sourcewell and its Participating Entities, including their officers, agents, and employees, as an additional insured under the Supplier’s commercial general liability insurance policy with respect to liability arising out of activities, “operations,” or “work” performed by or on behalf of Supplier, and products and completed operations of Supplier. The policy provision(s) or endorsement(s) must further provide that coverage is primary and not excess over or contributory with any other valid, applicable, and collectible insurance or self-insurance in force for the additional insureds. 




 


 


 

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D. WAIVER OF SUBROGATION. Supplier waives and must require (by endorsement or otherwise) all its insurers to waive subrogation rights against Sourcewell and other additional insureds for losses paid under the insurance policies required by this Contract or other insurance applicable to the Supplier or its subcontractors. The waiver must apply to all deductibles and/or self-insured retentions applicable to the required or any other insurance maintained by the Supplier or its subcontractors. Where permitted by law, Supplier must require similar written express waivers of subrogation and insurance clauses from each of its subcontractors.

E. UMBRELLA/EXCESS LIABILITY/SELF-INSURED RETENTION. The limits required by this Contract can be met by either providing a primary policy or in combination with umbrella/excess liability policy(ies), or self-insured retention.

19. COMPLIANCE
A. LAWS AND REGULATIONS. All Equipment, Products, or Services provided under this Contract must comply fully with applicable federal laws and regulations, and with the laws in the states and provinces in which the Equipment, Products, or Services are sold.

B. LICENSES. Supplier must maintain a valid and current status on all required federal, state/provincial, and local licenses, bonds, and permits required for the operation of the business that the Supplier conducts with Sourcewell and Participating Entities.

20. BANKRUPTCY, DEBARMENT, OR SUSPENSION CERTIFICATION
Supplier certifies and warrants that it is not in bankruptcy or that it has previously disclosed in writing certain information to Sourcewell related to bankruptcy actions. If at any time during this Contract Supplier declares bankruptcy, Supplier must immediately notify Sourcewell in writing.

Supplier certifies and warrants that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from programs operated by the State of Minnesota; the United States federal government or the Canadian government, as applicable; or any Participating Entity. Supplier certifies and warrants that neither it nor its principals have been convicted of a criminal offense related to the subject matter of this Contract. Supplier further warrants that it will provide immediate written notice to Sourcewell if this certification changes at any time.

21. PROVISIONS FOR NON-UNITED STATES FEDERAL ENTITY PROCUREMENTS UNDER

UNITED STATES FEDERAL AWARDS OR OTHER AWARDS
Participating Entities that use United States federal grant or FEMA funds to purchase goods or services from this Contract may be subject to additional requirements including the 




 


 


 

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procurement standards of the Uniform Administrative Requirements, Cost Principles and Audit Requirements for Federal Awards, 2 C.F.R. § 200. Participating Entities may have additional requirements based on specific funding source terms or conditions. Within this Article, all references to “federal” should be interpreted to mean the United States federal government.

The following list only applies when a Participating Entity accesses Supplier’s Equipment, Products, or Services with United States federal funds.

A. EQUAL EMPLOYMENT OPPORTUNITY. Except as otherwise provided under 41 C.F.R. § 60, all contracts that meet the definition of “federally assisted construction contract” in 41 C.F.R. § 60-

1.3 must include the equal opportunity clause provided under 41 C.F.R. §60-1.4(b), in accordance with Executive Order 11246, “Equal Employment Opportunity” (30 FR 12319, 12935, 3 C.F.R. §, 1964-1965 Comp., p. 339), as amended by Executive Order 11375, “Amending Executive Order 11246 Relating to Equal Employment Opportunity,” and implementing regulations at 41 C.F.R. § 60, “Office of Federal Contract Compliance Programs, Equal Employment Opportunity, Department of Labor.” The equal opportunity clause is incorporated herein by reference.

B. DAVIS-BACON ACT, AS AMENDED (40 U.S.C. § 3141-3148). When required by federal program legislation, all prime construction contracts in excess of $2,000 awarded by nonfederal entities must include a provision for compliance with the Davis-Bacon Act (40 U.S.C. § 3141-3144, and 3146-3148) as supplemented by Department of Labor regulations (29 C.F.R. § 5, “Labor Standards Provisions Applicable to Contracts Covering Federally Financed and Assisted Construction”). In accordance with the statute, contractors must be required to pay wages to laborers and mechanics at a rate not less than the prevailing wages specified in a wage determination made by the Secretary of Labor. In addition, contractors must be required to pay wages not less than once a week. The non-federal entity must place a copy of the current prevailing wage determination issued by the Department of Labor in each solicitation. The decision to award a contract or subcontract must be conditioned upon the acceptance of the wage determination. The non-federal entity must report all suspected or reported violations to the federal awarding agency. The contracts must also include a provision for compliance with the Copeland “Anti-Kickback” Act (40 U.S.C. § 3145), as supplemented by Department of Labor regulations (29 C.F.R. § 3, “Contractors and Subcontractors on Public Building or Public Work Financed in Whole or in Part by Loans or Grants from the United States”). The Act provides that each contractor or subrecipient must be prohibited from inducing, by any means, any person employed in the construction, completion, or repair of public work, to give up any part of the compensation to which he or she is otherwise entitled. The non-federal entity must report all suspected or reported violations to the federal awarding agency. Supplier must be in compliance with all applicable Davis-Bacon Act provisions.

C. CONTRACT WORK HOURS AND SAFETY STANDARDS ACT (40 U.S.C. § 3701-3708). Where applicable, all contracts awarded by the non-federal entity in excess of $100,000 that involve the employment of mechanics or laborers must include a provision for compliance with 40 U.S.C. §§ 3702 and 3704, as supplemented by Department of Labor regulations (29 C.F.R. § 5). 




 


 


 

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Under 40 U.S.C. § 3702 of the Act, each contractor must be required to compute the wages of every mechanic and laborer on the basis of a standard work week of 40 hours. Work in excess of the standard work week is permissible provided that the worker is compensated at a rate of not less than one and a half times the basic rate of pay for all hours worked in excess of 40 hours in the work week. The requirements of 40 U.S.C. § 3704 are applicable to construction work and provide that no laborer or mechanic must be required to work in surroundings or under working conditions which are unsanitary, hazardous or dangerous. These requirements do not apply to the purchases of supplies or materials or articles ordinarily available on the open market, or contracts for transportation or transmission of intelligence. This provision is hereby incorporated by reference into this Contract. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.

D. RIGHTS TO INVENTIONS MADE UNDER A CONTRACT OR AGREEMENT. If the federal award meets the definition of “funding agreement” under 37 C.F.R. § 401.2(a) and the recipient or subrecipient wishes to enter into a contract with a small business firm or nonprofit organization regarding the substitution of parties, assignment or performance of experimental, developmental, or research work under that “funding agreement,” the recipient or subrecipient must comply with the requirements of 37 C.F.R. § 401, “Rights to Inventions Made by Nonprofit Organizations and Small Business Firms Under Government Grants, Contracts and Cooperative Agreements,” and any implementing regulations issued by the awarding agency. Supplier certifies that during the term of an award for all contracts by Sourcewell resulting from this procurement process, Supplier must comply with applicable requirements as referenced above.

E. CLEAN AIR ACT (42 U.S.C. § 7401-7671Q.) AND THE FEDERAL WATER POLLUTION CONTROL ACT (33 U.S.C. § 1251-1387). Contracts and subgrants of amounts in excess of $150,000 require the non-federal award to agree to comply with all applicable standards, orders or regulations issued pursuant to the Clean Air Act (42 U.S.C. § 7401- 7671q) and the Federal Water Pollution Control Act as amended (33 U.S.C. § 1251- 1387). Violations must be reported to the Federal awarding agency and the Regional Office of the Environmental Protection Agency (EPA).

Supplier certifies that during the term of this Contract will comply with applicable requirements as referenced above.

F. DEBARMENT AND SUSPENSION (EXECUTIVE ORDERS 12549 AND 12689). A contract award (see 2 C.F.R. § 180.220) must not be made to parties listed on the government wide exclusions in the System for Award Management (SAM), in accordance with the OMB guidelines at 2 C.F.R. §180 that implement Executive Orders 12549 (3 C.F.R. § 1986 Comp., p. 189) and 12689 (3 C.F.R. § 1989 Comp., p. 235), “Debarment and Suspension.” SAM Exclusions contains the names of parties debarred, suspended, or otherwise excluded by agencies, as well as parties declared ineligible under statutory or regulatory authority other than Executive Order 12549. Supplier certifies that neither it nor its principals are presently debarred, suspended, proposed for debarment, declared ineligible, or voluntarily excluded from participation by any federal department or agency.





 


 


 

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G. BYRD ANTI-LOBBYING AMENDMENT, AS AMENDED (31 U.S.C. § 1352). Suppliers must file any required certifications. Suppliers must not have used federal appropriated funds to pay any person or organization for influencing or attempting to influence an officer or employee of any agency, a member of Congress, officer or employee of Congress, or an employee of a member of Congress in connection with obtaining any federal contract, grant, or any other award covered by 31 U.S.C. § 1352. Suppliers must disclose any lobbying with non-federal funds that takes place in connection with obtaining any federal award. Such disclosures are forwarded from tier to tier up to the non-federal award. Suppliers must file all certifications and disclosures required by, and otherwise comply with, the Byrd Anti-Lobbying Amendment (31 U.S.C. § 1352).

H. RECORD RETENTION REQUIREMENTS. To the extent applicable, Supplier must comply with the record retention requirements detailed in 2 C.F.R. § 200.333. The Supplier further certifies that it will retain all records as required by 2 C.F.R. § 200.333 for a period of 3 years after grantees or subgrantees submit final expenditure reports or quarterly or annual financial reports, as applicable, and all other pending matters are closed.

I. ENERGY POLICY AND CONSERVATION ACT COMPLIANCE. To the extent applicable, Supplier must comply with the mandatory standards and policies relating to energy efficiency which are contained in the state energy conservation plan issued in compliance with the Energy Policy and Conservation Act.

J. BUY AMERICAN PROVISIONS COMPLIANCE. To the extent applicable, Supplier must comply with all applicable provisions of the Buy American Act. Purchases made in accordance with the Buy American Act must follow the applicable procurement rules calling for free and open competition.

K. ACCESS TO RECORDS (2 C.F.R. § 200.336). Supplier agrees that duly authorized representatives of a federal agency must have access to any books, documents, papers and records of Supplier that are directly pertinent to Supplier’s discharge of its obligations under this Contract for the purpose of making audits, examinations, excerpts, and transcriptions. The right also includes timely and reasonable access to Supplier’s personnel for the purpose of interview and discussion relating to such documents.

L. PROCUREMENT OF RECOVERED MATERIALS (2 C.F.R. § 200.322). A non-federal entity that is a state agency or agency of a political subdivision of a state and its contractors must comply with Section 6002 of the Solid Waste Disposal Act, as amended by the Resource Conservation and Recovery Act. The requirements of Section 6002 include procuring only items designated in guidelines of the Environmental Protection Agency (EPA) at 40 C.F.R. § 247 that contain the highest percentage of recovered materials practicable, consistent with maintaining a satisfactory level of competition, where the purchase price of the item exceeds $10,000 or the value of the quantity acquired during the preceding fiscal year exceeded $10,000; procuring 




 


 


 

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solid waste management services in a manner that maximizes energy and resource recovery; and establishing an affirmative procurement program for procurement of recovered materials identified in the EPA guidelines.

M. FEDERAL SEAL(S), LOGOS, AND FLAGS. The Supplier cannot use the seal(s), logos, crests, or reproductions of flags or likenesses of Federal agency officials without specific pre-approval.

N. NO OBLIGATION BY FEDERAL GOVERNMENT. The U.S. federal government is not a party to this Contract or any purchase by a Participating Entity and is not subject to any obligations or liabilities to the Participating Entity, Supplier, or any other party pertaining to any matter resulting from the Contract or any purchase by an authorized user.

O. PROGRAM FRAUD AND FALSE OR FRAUDULENT STATEMENTS OR RELATED ACTS. The Contractor acknowledges that 31 U.S.C. 38 (Administrative Remedies for False Claims and Statements) applies to the Supplier’s actions pertaining to this Contract or any purchase by a Participating Entity.

P. FEDERAL DEBT. The Supplier certifies that it is non-delinquent in its repayment of any federal debt. Examples of relevant debt include delinquent payroll and other taxes, audit disallowance, and benefit overpayments.

Q. CONFLICTS OF INTEREST. The Supplier must notify the U.S. Office of General Services, Sourcewell, and Participating Entity as soon as possible if this Contract or any aspect related to the anticipated work under this Contract raises an actual or potential conflict of interest (as described in 2 C.F.R. Part 200). The Supplier must explain the actual or potential conflict in writing in sufficient detail so that the U.S. Office of General Services, Sourcewell, and Participating Entity are able to assess the actual or potential conflict; and provide any additional information as necessary or requested.

R. U.S. EXECUTIVE ORDER 13224. The Supplier, and its subcontractors, must comply with U.S.

Executive Order 13224 and U.S. Laws that prohibit transactions with and provision of resources and support to individuals and organizations associated with terrorism.

S. PROHIBITION ON CERTAIN TELECOMMUNICATIONS AND VIDEO SURVEILLANCE SERVICES OR EQUIPMENT. To the extent applicable, Supplier certifies that during the term of this Contract it will comply with applicable requirements of 2 C.F.R. § 200.216.

T. DOMESTIC PREFERENCES FOR PROCUREMENTS. To the extent applicable, Supplier certifies that during the term of this Contract will comply with applicable requirements of 2 C.F.R. § 200.322.





 


 


 

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22. CANCELLATION
Sourcewell or Supplier may cancel this Contract at any time, with or without cause, upon 60 days’ written notice to the other party. However, Sourcewell may cancel this Contract immediately upon discovery of a material defect in any certification made in Supplier’s Proposal. Cancellation of this Contract does not relieve either party of financial, product, or service obligations incurred or accrued prior to cancellation.

Sourcewell Rush Truck Centers of Texas, L.P.

By: __________________________ By: __________________________ Jeremy Schwartz Michael Lyons
Title: Chief Procurement Officer Title: Associate General Counsel Date: ________________________ Date: ________________________ 




 


 


 

 






 







032824-RTG
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Exhibit A
Notice of Security Interest





 


 


 

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Bid Number: RFP 032824 Vendor Name: Rush Enterprises





 


 


 

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Bid Number: RFP 032824 Vendor Name: Rush Enterprises





 


 


 

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Bid Number: RFP 032824 Vendor Name: Rush Enterprises





 


 


 

Table 16: Category 2 - Depth and Breadth of Offered Equipment Products and Services Indicate below if the listed types or classes of equipment, products, and services are offered within your proposal. Provide additional comments in the text box provided, as necessary.

Proposers seeking an award in Category 2, as defined herein, must include at least one solution offered within the scope of Category 2 for electric propulsion systems only. See RFP Section II. B. 1 for details.

We will not be submitting for Table 16: Category 2 - Depth and Breadth of Offered Equipment Products and Services Line
Item Category or Type Offered * Comments
80 Battery Electric Vehicle (BEV)
Class 4 Chassis
Yes
No
Rush Truck Centers is not offering an OEM that has a BEV vehicle for the class 4 space. 81 Battery Electric Vehicle (BEV)
Class 5 Chassis
Yes
No
Isuzu is looking to offer a BEV class 5 unit towards the end of 2024/beginning of 2025. Although pricing isn t currently available, once made available to Rush Truck Centers, we intend to work with Sourcwell to have this model added to the contract.
82 Battery Electric Vehicle (BEV)
Class 6 Chassis
Yes
No
Rush Truck Centers is not offering an OEM that has a BEV vehicle for the class 6 space on. 83 Battery Electric Vehicle (BEV)
Class 7 Chassis
Yes
No
Rush Truck Centers is not offering an OEM that has a BEV vehicle for the class 7 space. 84 Battery Electric Vehicle (BEV)
Class 8 Chassis
Yes
No
Rush Truck Centers is not offering an OEM that has a BEV vehicle for the class 8 space. 85 Related equipment, accessories, parts, upfitting,
services, used chassis and Class 3 chassis
Yes
No
Rush Truck Centers is offering the Ford E-Transit line which we are offering on this proposal.

Exceptions to Terms, Conditions, or Specifications Form Only those Proposer Exceptions to Terms, Conditions, or Specifications that have been accepted by Sourcewell have been incorporated into the contract text.

Documents
Ensure your submission document(s) conforms to the following:

1. Documents in PDF format are preferred. Documents in Word, Excel, or compatible formats may also be provided.

2. Documents should NOT have a security password, as Sourcewell may not be able to open the file. It is your sole responsibility to ensure that the uploaded document(s) are not either defective, corrupted or blank and that the documents can be opened and viewed by Sourcewell.

3. Sourcewell may reject any response where any document(s) cannot be opened and viewed by Sourcewell.

4. If you need to upload more than one (1) document for a single item, you should combine the documents into one zipped file. If the zipped file contains more than one (1) document, ensure each document is named, in relation to the submission format item responding to. For example, if responding to the Marketing Plan category save the document as "Marketing Plan." Pricing - MSRP Pricing.zip - Thursday March 28, 2024 13:53:27 Financial Strength and Stability - 2023 10-K Final.pdf - Tuesday March 26, 2024 10:49:33 Marketing Plan/Samples (optional)
WMBE/MBE/SBE or Related Certificates (optional)
Warranty Information - Exhibit C - Rush Limited Warranty.pdf - Thursday March 28, 2024 12:41:37 Standard Transaction Document Samples - Sourcewell Docs Example.pdf - Thursday March 28, 2024 14:24:57 Requested Exceptions - RFP_033824_Class_4-8_Chassis_&_Cabs_Contract_Template_Rush revisions.docx - Tuesday March 26, 2024 11:39:46 Upload Additional Document - Additional Documents.zip - Thursday March 28, 2024 12:40:50 Bid Number: RFP 032824 Vendor Name: Rush Enterprises





 


 


 

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ITEM # 25

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager

BY: John Soria, Director of Transportation
SUBJECT: ADOPT RESOLUTION NO. 26-47 AUTHORIZING THE RECEIPT OF

FEDERAL TRANSIT ADMINISTRATION (FTA) GRANT FUNDS

AWARDED TO THE CITY OF MONTEBELLO FOR THE PURCHASE OF

HYDROGEN FUEL CELL ELECTRIC BUSES AND COMPRESSED

NATURAL GAS BUSES
DATE: June 24, 2026
RECOMMENDATIONS:

It is recommended that the City Council:

1. Adopt Resolution No. 26-47 authorizing the receipt of Federal Transit Administration (FTA) grant funds, in the amount of $9,434,183, awarded to the City of Montebello for the purchase three (3) hydrogen Fuel Cell Electric Buses (FCEBs) and nine (9) Compressed Natural Gas (CNG) buses; and

2. Amend the Transportation Department’s Fiscal Year 2026-27 adopted operating budget to appropriate the FTA grant funds ($9,434,183) in Account No. 270-9068- 2026-070 to purchase three (3) FCEBs and nine (9) CNG buses; and

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

FISCAL IMPACT:

In June 2026, the FTA approved the use of grant funding ($9,434,183) awarded to the City (Grant No. CA-2026-070-00), for the purchase of Fuel Cell Electric Buses (FCEBs) and Compressed Natural Gas (CNG) buses (Attachment A). This grant is categorized under the FTA Section 5307 (Section 5307) Funding Program and distributed through the Los Angele County Metropolitan Transportation Authority (Metro) – Bus Operators Subcommittee (BOS). The Transportation Department’s Fiscal Year 2026-27 adopted operating budget must be amended to utilize these funds by increasing appropriations by $9,434,183 in Account No. 270-9068-2026-070 (Transit Grants, FTA CA-2026-070, FY 2025-26, CAL OES (Emergency Safety)).

In addition, the FTA grant requires a 20% non-Federal local match. The non-Federal local

CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 24, 2026

match ($2,358,546), which will utilize Senate Bill 1/State Transit Assistance (SB1/STA) funds, was approved by the City Council on May 27, 2026, through Agreement Nos. 4415 and 4419 with New Flyer of America. The total cost for these bus purchases is $11,792,729. The federal grant funding by project is as follows:

BACKGROUND/DISCUSSION:

The FTA’s Urbanized Area Formula Grant Program, authorized under Section 5307 of Title 49 of the United States Code, provides federal funding to eligible public transit operators for capital projects, planning activities, and certain operating expenses. Section 5307 funds are apportioned annually based on a statutory formula that considers population, transit service levels, and other factors reported through the National Transit Database (NTD). Eligible activities include bus replacement and rehabilitation, preventive maintenance, transit facility improvements, security enhancements, passenger amenities, and other transit capital investments.

As an eligible recipient of Section 5307 funding, the City must comply with all applicable federal requirements, including annual Certifications and Assurances, grant management regulations, civil rights requirements, procurement standards, and reporting obligations established by the FTA. To receive and utilize these funds, projects must be included in applicable transportation planning documents and programmed through grant applications submitted in the FTA's Transit Award Management System (TrAMS).

Metro serves as the designated recipient for Section 5307 funds within the Los Angeles Urbanized Area and is responsible for administering and allocating these funds to eligible transit operators. Through Metro's annual apportionment process, Montebello Bus Lines (MBL) receives a share of Section 5307 funding to support transit capital and operating needs. As a result, the City was awarded Grant No. CA-2026-070-00 under the FTA Urbanized Area Formula Grant Program under Section 5307 of Title 49 U.S.C. Chapter 53 (49 U.S.C. § 5307).

Section 5307 funds are allocated annually and must generally be obligated within five years of apportionment to avoid lapsing. Over the past five fiscal years, MBL has received Section 5307 allocations as follows:
• FY 2021: $4,510,751

CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 24, 2026

• FY 2022: $5,423,813
• FY 2023: $5,745,219
• FY 2024: $5,601,540
• FY 2025: $4,749,827
Funds from Fiscal Years 2021, 2022, and 2023 were programmed toward Grant No. CA2026-070-00 (see Table 1). The project will replace twelve (12) aging hybrid-electric and CNG buses with new 40-foot FCEBs and CNG buses. These buses have reached or exceeded their federally defined useful life benchmark (ULB) of 12 years and/or 500,000 miles and will be retired in accordance with FTA requirements. The replacement buses will comply with all applicable federal safety, accessibility, and environmental regulations, including the Americans with Disabilities Act (ADA) and Clean Air Act (CAA) standards.

Replacing these buses is critical to MBL's mission of providing safe, reliable, and accessible public transportation throughout its service area. The project will improve fleet reliability, reduce maintenance costs, enhance service quality, and support the City's transition toward a more reliable and modernized transit fleet. Additionally, the project will help ensure continued access to employment, education, healthcare, and other essential services for residents, including those living in disadvantaged communities served by MBL.

ENVIRONMENTAL:

N/A
ANALYSIS:

N/A
SUMMARY:

Staff recommend that the City Council adopt Resolution No. 26-47 (Attachment B) authorizing the receipt of FTA awarded grant funds, in the amount of $9,434,183, for the purchase of three (3) hydrogen FCEBs and nine (9) CNG buses; amend the Transportation Department’s FY 2026-27 adopted operating budget to appropriate the FTA grant funds ($9,434,183) in Account No. 270-9068-2026-070 (Transit Grants, FTA CA-2026-070, FY 2025-26, CAL OES (Emergency Safety)); and take such additional, related action as may be desirable.

ATTACHMENT(S)

1. Attachment A – Grant CA-2026-070-00

2. Attachment B – Resolution No. 26-47

DOT FTA
U.S. Department of Transportation Federal Transit Administration Application
Federal Award Identification Number (FAIN) CA-2026-070
Application Number CA-2026-070-00
Temporary Application Number 1657-2025-1
Award Name FY21, FY22, and FY23 Section 5307 Bus
Replacements
Application Status Final Concurrence / Reservation
Budget Revisions 0
Period of Performance Start Date N/A
Original Period of Performance End Date 9/30/2028
Current Period of Performance End Date 9/30/2028 Revision #: 0 Approved?: No Budget Period Start Date N/A
Budget Period End Date 9/30/2028
Part 1: Recipient Information
Name: CITY OF MONTEBELLO
Recipient ID Recipient OST Type Recipient Alias UEI DUNS 1657 City Montebello Bus Lines JLK3HRGGC6T3 174479642
Location Type Address City State Zip
Mailing Address 1600 WEST BEVERLY BLVD. MONTEBELLO CA 90640 Physical Address 400 S TAYLOR AVE MONTEBELLO CA 90640
Union Information
Union Name AFSCME

Address 1 801 NORTH BRAND BOULEVARD
Address 2 STE 950
City Glendale
State CA
Zipcode 91203
Contact Name DANA MARTINEZ
Telephone (818) 973-3204
Fax (213) 623-0171
E-mail [email protected]
Website http://www.bushgottlieb.com
Union Name AFSCME
Address 1 3375 E. SLAUSON AVE
Address 2
City Vernon
State CA
Zipcode 90058
Contact Name AL CROMER
Telephone (213) 252-1395
Fax (213) 263-9884
E-mail [email protected]
Website http://www.afscme-3634.org/
Union Name AFSCME
Address 1 3375 E. SLAUSON AVE.

Address 2
City Vernon
State CA
Zipcode 90058
Contact Name VERONICA GUNN
Telephone (213) 252-1395
Fax (213) 263-9884
E-mail [email protected]
Website http://www.afscme-3634.org/
Union Name AFSCME
Address 1 3375 E. SLAUSON AVE.

Address 2
City VERNON
State CA
Zipcode 90058
Contact Name DARCY DEL CAMBRE

Telephone (213) 252-1395
Fax (213) 252-1395
E-mail [email protected]
Website [email protected]
Union Name AMALGAMATED TRANSIT UNION
Address 1 1744 N. MAIN STREET
Address 2 LOCAL 1277
City LOS ANGELES
State CA
Zipcode 90031
Contact Name ERROL FRAZIER
Telephone (323) 222-1277
Fax (323) 222-1335
E-mail [email protected]
Website http://www.atu1277.com/1277
Union Name AMALGAMATED TRANSIT UNION
Address 1 1744 N. MAIN STREET
Address 2 LOCAL 1277
City LOS ANGELES
State CA
Zipcode 90031
Contact Name JOHN DIRITO
Telephone (323) 222-1277
Fax (323) 222-1335
E-mail [email protected]
Website http://www.atu1277.com/1277
Union Name AMALGAMATED TRANSIT UNION
Address 1 1744 N. MAINT STREET
Address 2 ATU LOCAL 1277
City LOS ANGELES
State CA
Zipcode 90031
Contact Name MAURO VARELA
Telephone (323) 222-1277
Fax (323) 222-1335
E-mail [email protected]
Website http://www.atu1277.com/1277
Union Name AMALGAMATED TRANSIT UNION
Address 1 369 PINE STREET

Address 2
City SAN FRANCISCO
State CA
Zipcode 94104
Contact Name WILLIAM FLYNN
Telephone (415) 567-9440
Fax (415) 567-9445
E-mail [email protected]
Website
Union Name AMALGAMATED TRANSIT UNION
Address 1 1744 N. MAIN STREET
Address 2 LOCAL 1277
City LOS ANGELES
State CA
Zipcode 90031
Contact Name JEFFREY SHAFFER
Telephone (323) 222-1277
Fax (323) 222-1335
E-mail [email protected]
Website http://www.atu1277.com/1277
Union Name AMALGAMATED TRANSIT UNION
Address 1 1744 N. MAIN STREET
Address 2 LOCAL 1277
City LOS ANGELES
State CA
Zipcode 90031
Contact Name ARTURO AGUILAR
Telephone (323) 222-1277
Fax (323) 222-1335
E-mail [email protected]
Website http://www.atu1277.com/1277
Union Name TEAMSTERS, LOCAL 911
Address 1 9900 FLOWER STREET
Address 2 LOCAL 911
City BELLFLOWER
State CA
Zipcode 90706
Contact Name CRISTIAN LEIVA
Telephone (562) 595-4518

Fax (562) 427-7298
E-mail [email protected]
Website http://www.teamsters911.com/
Union Name TEAMSTERS, LOCAL 911
Address 1 9900 FLOWER STREET
Address 2 LOCAL 911
City BELLFLOWER
State CA
Zipcode 90706
Contact Name RAYMOND WHITMER
Telephone (562) 595-4518
Fax (562) 427-7298
E-mail [email protected]
Website http://www.teamsters911.com/
Union Name TEAMSTERS, LOCAL 911
Address 1 9900 FLOWER STREET
Address 2 LOCAL 911
City BELLFLOWER
State CA
Zipcode 90706
Contact Name JOSE MONJARAS
Telephone (562) 595-4518
Fax (562) 427-7298
E-mail [email protected]
Website http://www.teamsters911.com/
Union Name TRANSPORTATION COMMUNICATIONS UNION
Address 1 1 GATEWAY PLAZA
Address 2 TCU LOCAL 1315 - MS:99-2-18
City LOS ANGELES
State CA
Zipcode 90012
Contact Name AYESHA DOUGLAS
Telephone (213) 922-6198
Fax (213) 922-5945
E-mail [email protected]
Website www.goiam.org/index.php/tcunion
Union Name TRANSPORTATION COMMUNICATIONS UNION
Address 1 1 GATEWAY PLAZA
Address 2 LOCAL 1315 , MS: 99-2-18B

City LOS ANGELES
State CA
Zipcode 90012
Contact Name JOSHUA OTT
Telephone (213) 922-1667
Fax (213) 922-5945
E-mail [email protected]
Website www.goiam.org/index.php/tcunion
Union Name TRANSPORTATION COMMUNICATIONS UNION
Address 1 490 BAUCHET ST.

Address 2 MS: 30-1-5
City LOS ANGELES
State CA
Zipcode 90012
Contact Name MANUEL F CHAVEZ
Telephone (213) 922-5083
Fax (213) 922-5945
E-mail [email protected]
Website www.goiam.org/index.php/tcunion
Union Name TRANSPORTATION COMMUNICATIONS UNION
Address 1 1 GATEWAY PLAZA
Address 2 TCU LOCAL 1315, MS:99-2-18
City LOS ANGELES
State CA
Zipcode 90012
Contact Name MICHAEL WINSTON
Telephone (213) 922-5930
Fax (213) 922-5945
E-mail [email protected]
Website www.goiam.org/index.php/tcunion
Union Name TRANSPORTATION COMMUNICATIONS UNION
Address 1 320 S SANTA FE AVE.

Address 2 LOCAL 1315 MS: 13-1-32
City LOS ANGELES
State CA
Zipcode 90012
Contact Name OLIVIA NELSON-RICHARD
Telephone (213) 922-5930
Fax (213) 922-5945

E-mail [email protected]
Website www.goiam.org/index.php/tcunion
Union Name SMART/UNITED TRANSPORTATION UNION
Address 1 801 NORTH BRAND BLVD
Address 2 SUITE 950
City GLENDALE
State CA
Zipcode 91203
Contact Name JULIE GUTMAN-DICKINSON
Telephone (818) 973-3228
Fax (818) 973-3201
E-mail [email protected]
Website
Union Name SMART/UNITED TRANSPORTATION UNION
Address 1 15999 CYPRESS AVENUE
Address 2 LOCAL 1565 (DIV. 7, 15, RAIL L
City IRWINDALE
State CA
Zipcode 91706
Contact Name QUINTIN WORMLEY
Telephone (626) 962-9980
Fax (626) 962-8079
E-mail [email protected]
Website http://www.gca875smart.org/
Union Name SMART/UNITED TRANSPORTATION UNION
Address 1 15999 CYPRESS AVENUE
Address 2
City IRWINDALE
State CA
Zipcode 91706
Contact Name JOHN ELLIS
Telephone (626) 962-9980
Fax (626) 962-8079
E-mail [email protected]
Website http://www.gca875smart.org/
Union Name SMART/UNITED TRANSPORTATION UNION
Address 1 15999 CYPRESS AVENUE
Address 2 LOCAL 1608 (DIV. 8)
City IRWINDALE

State CA
Zipcode 91706
Contact Name EDGAR MENENDEZ
Telephone (626) 962-9980
Fax (626) 962-8079
E-mail [email protected]
Website http://www.gca875smart.org/
Union Name SMART/UNITED TRANSPORTATION UNION
Address 1 15999 CYPRESS AVENUE
Address 2 LOCAL 1563 (DIV. 1, 2, 9, SCHED)
City IRWINDALE
State CA
Zipcode 91706
Contact Name ROBERT GONZALEZ
Telephone (626) 962-9980
Fax (626) 962-8079
E-mail [email protected]
Website http://www.gca875smart.org/
Union Name SMART/UNITED TRANSPORTATION UNION
Address 1 15999 CYPRESS AVENUE
Address 2 LOCAL 1564 (DIV. 5, 18)
City IRWINDALE
State CA
Zipcode 90706
Contact Name ANDY CARTER
Telephone (626) 962-9980
Fax (626) 962-8079
E-mail [email protected]
Website p://www.gca875smart.org/
Union Name SMART/UNITED TRANSPORTATION UNION
Address 1 15999 CYPRESS AVENUE
Address 2 LOCAL 1607 (DIV. 3, 10, 13)
City IRWINDALE
State CA
Zipcode 91706
Contact Name JULIO MEJIA
Telephone (626) 962-9980
Fax (626) 962-8079
E-mail [email protected]

Website http://www.gca875smart.org/
Union Name AFSCME
Address 1 3375 E. SLAUSON AVE.

Address 2
City Vernon
State CA
Zipcode 90058
Contact Name Q ARACHCHI
Telephone (213) 252-1395
Fax (213) 263-9884
E-mail [email protected]
Website http://www.afscme-3634.org/
Union Name TRANSPORTATION COMMUNICATIONS UNION
Address 1 1 GATEWAY PLAZA
Address 2 LOCAL 1315, MS:99-2-18
City LOS ANGELES
State CA
Zipcode 90012
Contact Name PATRICK DIAZ
Telephone (213) 922-5117
Fax (213) 922-5945
E-mail [email protected]
Website www.goiam.org/index.php/tcunion
Union Name TRANSPORTATION COMMUNICATIONS UNION
Address 1 1 GATEWAY PLAZA
Address 2 LOCAL 1315, MS:99-2-18
City LOS ANGELES
State CA
Zipcode 90012
Contact Name MIGUEL CORTEZ
Telephone (213) 533-1150
Fax (213) 922-5945
E-mail [email protected]
Website www.goiam.org/index.php/tcunion
Union Name TRANSPORTATION COMMUNICATIONS UNION
Address 1 1 GATEWAY PLAZA
Address 2 LOS ANGELES
City LOS ANGELES
State CA

Zipcode 90012
Contact Name PATRICIA CASILLAS
Telephone (424) 231-9264
Fax (213) 922-5945
E-mail [email protected]
Website www.goiam.org/index.php/tcunion
Union Name UNITED TRANSPORTATION UNION
Address 1 15999 Cypress Avenue
Address 2
City Irwindale
State CA
Zipcode 91706
Contact Name JOHNNY CABANAS JR
Telephone (626) 962-9980
Fax (626) 962-8079
E-mail [email protected]
Website http://www.gca875smart.org/
Union Name TEAMSTERS, LOCAL 911
Address 1 9900 FLOWER STREET
Address 2
City BELLFLOWER
State CA
Zipcode 90706
Contact Name MARY JAKLEVICK
Telephone (562) 595-4518
Fax (562) 427-7298
E-mail [email protected]
Website www.teamsters911.com
Union Name TEAMSTERS, LOCAL 911
Address 1 9900 FLOWER STREET
Address 2
City BELLFLOWER
State CA
Zipcode 90706
Contact Name MARTIN MACIAS
Telephone (562) 595-4518
Fax
E-mail [email protected]
Website www.teamsters911.com

Union Name AFSCME
Address 1 3375 E. SLAUSON AVE.

Address 2
City Vernon
State CA
Zipcode 90058
Contact Name MELVIN STOKES
Telephone (213) 252-1395
Fax (213) 263-9884
E-mail [email protected]
Website http://afscne-3634.org/
Union Name AFSCME
Address 1 3375 E. SLAUSON AVE.

Address 2
City Vernon
State CA
Zipcode 90058
Contact Name THANG TRAN
Telephone (213) 252-1395
Fax (213) 263-9884
E-mail [email protected]
Website http://afscme-3634.org/
Union Name AFSCME
Address 1 3375 E. SLAUSON AVE.

Address 2
City Vernon
State CA
Zipcode 90058
Contact Name FRANK FORDE
Telephone (213) 252-1395
Fax (213) 263-9884
E-mail [email protected]
Website http://afscme-3634.org/
Union Name AFSCME
Address 1 3375 E. SLAUSON AVE.

Address 2
City Vernon
State CA
Zipcode 90058

Contact Name JIM AVILA
Telephone (213) 252-1395
Fax (213) 263-9884
E-mail [email protected]
Website http://afscme-3634.org/
Union Name AFSCME
Address 1 3375 E. SLAUSON AVE.

Address 2
City Vernon
State CA
Zipcode 90058
Contact Name ERNIE PAREDES
Telephone (213) 252-1395
Fax (213) 263-9884
E-mail [email protected]
Website http://afscme-3634.org/
Union Name AFSCME
Address 1 3375 E. SLAUSON AVE.

Address 2
City Vernon
State CA
Zipcode 90058
Contact Name RICHARD WRIGHT
Telephone (213) 252-1395
Fax (213) 263-9884
E-mail [email protected]
Website http://afscme-3634.org/
Union Name AFSCME
Address 1 514 SHATTO PLACE
Address 2 SUITE 215, LOCAL 3634
City LOS ANGELES
State CA
Zipcode 90020
Contact Name DARRIN SPANN
Telephone (213) 252-1395
Fax (213) 263-9884
E-mail [email protected]
Website http://afscme-3634.org/
Union Name TRANSPORTATION COMMUNICATIONS UNION

Address 1 1 GATEWAY PLAZA
Address 2 LOCAL 1315, MS:99-2-18
City LOS ANGELES
State CA
Zipcode 90012
Contact Name MICHELLE CARDENAS
Telephone (213) 922-5117
Fax (213) 922-5945
E-mail [email protected]
Website www.goiam.org/index.php/tcunion
Union Name AFSCME
Address 1 3375 E. SLAUSON AVE.

Address 2
City Vernon
State CA
Zipcode 90058
Contact Name J JESUS SERRANO
Telephone (213) 252-1395
Fax
E-mail [email protected]
Website http://afscme-3634.org/
Union Name AFSCME
Address 1 3375 E. SLAUSON AVE.

Address 2
City Vernon
State CA
Zipcode 90058
Contact Name Cliff Kerce
Telephone (213) 252-1395
Fax (213) 263-9884
E-mail [email protected]
Website http://afscme-3634.org/
Union Name TRANSPORTATION COMMUNICATIONS UNION
Address 1 1 GATEWAY PLAZA
Address 2 LOCAL 1315, MS:99-2-18
City LOS ANGELES
State CA
Zipcode 90012
Contact Name FREDDIE FLORES

Telephone (213) 922-1667
Fax (213) 922-5945
E-mail [email protected]
Website www.goiam.org/index.php/tcunion
Union Name TRANSPORTATION COMMUNICATIONS UNION
Address 1 1 GATEWAY PLAZA
Address 2 LOCAL 1315, MS:99-2-18
City LOS ANGELES
State CA
Zipcode 90012
Contact Name BRIDGETTE TRAVENIA
Telephone (213) 922-6829
Fax (213) 922-5945
E-mail [email protected]
Website www.goiam.org/index.php/tcunion
Union Name Montebello Mid-Management Association
Address 1 400 South Taylor Avenue
Address 2
City Montebelllo
State CA
Zipcode 90640
Contact Name Roman Wilkinson
Telephone (323) 558-1625
Fax
E-mail [email protected]
Website
Union Name Montebello Police Officer's Association
Address 1 PO Box 913 PO Box 913
Address 2
City Montebello
State CA
Zipcode 90640
Contact Name Omar Rodriguez
Telephone (323) 246-0372
Fax
E-mail [email protected]
Website
Union Name Montebello Police Management Associate
Address 1 1600 W. Beverly Blvd.

Address 2
City Montebello
State CA
Zipcode 90640
Contact Name Stephen Sharpe
Telephone (323) 816-9434
Fax
E-mail [email protected]
Website
Union Name Montebello Firefighters’ Association (Montebello firefighters Local 3821)
Address 1 PO BOX 105
Address 2
City Montebello
State CA
Zipcode 90640
Contact Name Joel Bonilla
Telephone (213) 435-7801
Fax
E-mail [email protected]
Website
Union Name Montebello Fire Management Association
Address 1 25422 Gallup Circle
Address 2
City Laguna Hills
State CA
Zipcode 92653
Contact Name Craig Barker
Telephone (949) 303-8922
Fax
E-mail [email protected]
Website
Union Name Montebello City Employees’ Association
Address 1 4401 Atlantic Ave. Suite 200
Address 2
City Long beach
State CA
Zipcode 90807
Contact Name Eric Huerta

Telephone (323) 887-1200
Fax
E-mail [email protected]
Website
Union Name Montebello Supervisors’ Association
Address 1 1600 W. Beverly Boulevard
Address 2
City Montebello
State CA
Zipcode 90640
Contact Name Vanessa Padilla
Telephone (323) 887-1200
Fax
E-mail [email protected]
Website
Union Name SMART-TD
Address 1 25213 County Road 25
Address 2 SMART-TD
City La Junta
State CO
Zipcode 81050
Contact Name Justin Schrock
Telephone (719) 469-2428
Fax
E-mail [email protected]
Website
Union Name Montebello Management Professionals' Association Address 1 3516 Travis Ave.

Address 2
City Commerce
State CA
Zipcode 90040
Contact Name John Soria
Telephone (323) 804-7182
Fax
E-mail [email protected]
Website
Union Name Montebello Executive Management Association
Address 1 1600 W. Beverly Blvd.

Address 2
City Montebelllo
State CA
Zipcode 90640
Contact Name Ramon Figueroa
Telephone (323) 887-1377
Fax (323) 887-4667
E-mail [email protected]
Website
Union Name SMART-TD
Address 1 656 Raywood Avenue
Address 2
City Montebello
State CA
Zipcode 90640
Contact Name Cecilia Lopez
Telephone (323) 271-2659
Fax
E-mail [email protected]
Website
Part 2: Application Information
Title: FY21, FY22, and FY23 Section 5307 Bus Replacements Application
Number Application Status Award Type
Application
Cost Center
Date
Created
Last
Updated
Date
From
TEAM?
CA-2026-070-
00 Final Concurrence /
Reservation Grant Region 9 7/1/2025 7/1/2025 No
Application Executive Summary
This application is to request Section 5307 funds apportioned to the Los Angeles, CA (UZA #060020) in the amount of $9,434,183
Funding for all projects included in this grant application is provided by the following apportionment years and Urbanized areas (UZAs):

Section 5307, FFY 2021 Los Angeles (UZA #060020): $412,995 Section 5307, FYY 2022 Los Angeles (UZA #060020): $5,423,813 Section 5307, FFY 2023 Los Angeles (UZA #060020): $3,597,375 TOTAL Section 5307: $9,434,183

Overall grant funding:

Total Federal Funds: $9,434,183
Total Non-Federal Share: $2,358,546
Total Eligible Project Cost: $11,792,729
The City of Montebello (City) is hereby submitting this grant application in support of the following capital projects:
1) Bus Replacement - Compressed Natural Gas (CNG)
This grant applies $412,995 in FY 21 Section 5307 funds to purchase one (1) of nine (9) CNG buses that have met their minimum useful life of 12 years and/or 500,000 miles for nine low floor-40-foot CNG buses.
2) Bus Replacement - Compressed Natural Gas (CNG)
This grant applies $5,423,813 in FY 22 Section 5307 funds to purchase eight (8) of nine (9) CNG buses that have met their minimum useful life of 12 years and/or 500,000 miles for nine low floor-40-foot CNG buses.
3) Bus Replacement Hydrogen Fuel Cell Electric Buses (FCEB) This grant applies $3,597,375 in FY 23 Section 5307 funds to replace three (3) hybrid buses that have met their minimum useful life of 12 years and/or 500,000 miles for three low floor-40-foot FCEB buses.

The 0.75 percent safety requirement is achieved through the procurement of new buses, which enhance safety with more reliable vehicles in good condition and equipped with modern safety features.

Frequency of Milestone Progress Reports (MPR)
Quarterly
Frequency of Federal Financial Reports (FFR)
Quarterly
Does this application include funds for research and/or development activities? This award does not include research and development activities.

Pre-Award Authority
This award is using Pre-Award Authority.

Does this application include suballocation funds?
Recipient organization is suballocated these apportioned funds and can apply for and receive these funds directly.

Will this Grant be using Lapsing Funds?
Yes, this Grant will use Lapsing Funds.

Will indirect costs be applied to this application?
This award does not include an indirect cost rate.

Indirect Rate Details: N/A
Requires E.O. 12372 Review
No, this application does not require E.O. 12372 Review.

Delinquent Federal Debt

No, my organization does not have delinquent federal debt.

Award Description
Purpose
The purpose of this award is for the purchase of three (3) FCEBs and nine (9) CNG replacement buses for the City of Montebello (City).

Activities to be performed:

Funds will be used to purchase three (3) FCEBs and nine (9) CNG replacement buses.

Expected outcomes:

Funding will ensure the continuation of excellent service and the safety of Montebello Bus Lines' operations for commuters.

Intended beneficiaries:

City of Montebello and the riders that rely on its service will benefit from continued services.

Subrecipient Activities:

City of Montebello does not intend to subaward funds.

Application Point of Contact Information
First Name Last Name Title E-mail Address Phone
[email protected] General Engineer
Elizabeth Franco Deputy Director [email protected] (323) 558-1625 Application Budget Control Totals
Funding Source Section of
Statute
CFDA
Number Amount
5307 - Urbanized Area Formula Grants (2013 and
forward) 5307-2A 20507 $9,434,183
Local $2,358,546
Local/In-Kind $0
State $0
State/In-Kind $0
Other Federal $0
Transportation Development Credit $0
Adjustment $0
Total Eligible Cost $11,792,729
Application Budget

Project
Number Budget Item FTA Amount Non-FTA Amount
Total Eligible
Amount Quantity
CA-2026-
070-01-00
111-
00 (111-
A1)
BUS - ROLLING STOCK $412,995.00 $103,249.00 $516,244.00 1 CA-2026-
070-01-00 11.12.01
BUY

REPLACEMENT
40-FT BUS
$412,995.00 $103,249.00 $516,244.00 1
CA-2026-
070-02-00
111-
00 (111-
A2)
BUS - ROLLING STOCK $5,423,813.00 $1,355,953.00 $6,779,766.00 8 CA-2026-
070-02-00 11.12.01
BUY

REPLACEMENT
40-FT BUS
$5,423,813.00 $1,355,953.00 $6,779,766.00 8
CA-2026-
070-03-00
111-
00 (111-
A3)
BUS - ROLLING STOCK $3,597,375.00 $899,344.00 $4,496,719.00 3 CA-2026-
070-03-00 11.12.01
BUY

REPLACEMENT
40-FT BUS
$3,597,375.00 $899,344.00 $4,496,719.00 3
Discretionary Allocations
This application does not contain discretionary allocations.

Part 3: Project Information
Project Title: Bus Replacements - CNGs
Project Number Temporary Project Number Date Created Start Date End Date CA-2026-070-01-00 1657-2025-1-P1 7/1/2025 12/30/2025 5/30/2028 Project Description

PROJECT FUNDING
Federal Funds (80%)
FY 2021 Section 5307 (UZA #060020): $412,995
Total Federal Funds: $412,995
Local Match (20%)
Senate Bill 1 (SB1): $103,249
Total Project Cost: $516,244
This grant applies $412,995 in FY 21 Section 5307 funds to replace one of nine buses that have met their minimum useful life of 12 years and/or 500,000 miles.

Project Benefits
Replacing one (1) of nine (9) buses is crucial for maintaining operational reliability and safety.

Additional Information
N/A

Location Description
The City's Transportation Facility is located at:
400 S Taylor Ave
Montebello, CA 90640
Project Location (Urbanized Areas)
UZA Code Area Name
060000 California
060020 Los Angeles-Long Beach-Anaheim, CA
Congressional District Information
District State
28 California
31 California
37 California
38 California
42 California
34 California
Program Plan Information

STIP/TIP
Date: 10/30/2025
Description: Description: Purchase nine (9) replacement CNG buses.

TIP Project No/ID: LA9919475
TIP No/Amendment No.: 25-15 approved on October 30, 2025.

Project Name: CNG Buses
Urbanized Area: LA/Long Beach/Anaheim
UPWP
Date: N/A
Description: N/A
Long Range Plan
Date: N/A
Description: N/A
Project Control Totals
Funding Source Section of
Statute
CFDA
Number Amount
5307 - Urbanized Area Formula Grants (2013 and
forward) 5307-2A 20507 $412,995
Local $103,249
Local/In-Kind $0

State $0
State/In-Kind $0
Other Federal $0
Transportation Development Credit $0
Adjustment $0
Total Eligible Cost $516,244
Project Budget
Project
Number Budget Item FTA Amount
Non-FTA
Amount
Total
Eligible
Amount
Quantity
CA-2026-070-
01-00
111-
00 (111-
A1)
BUS - ROLLING STOCK $412,995.00 $103,249.00 $516,244.00 1 CA-2026-070-
01-00 11.12.01
BUY

REPLACEMENT
40-FT BUS
$412,995.00 $103,249.00 $516,244.00 1
Project Budget Activity Line Items
Budget Activity Line Item: 11.12.01 - BUY REPLACEMENT 40-FT BUS Scope Name / Code Line Item
#
Line Item Name Activity Quantity

BUS - ROLLING
STOCK (111-00) 11.12.01 BUY REPLACEMENT 40-FT BUS

BUY REPLACEMENTS -
CAPITAL BUS 1
Extended Budget Description

PROJECT FUNDING
Federal Funds (80%):

FY 2021 Section 5307 (UZA #060020): $412,995
Total Federal Funds: $412,995
Local Match (20%)
Senate Bill 1 (SB1): $103,249
Total Project Cost: $516,244
This grant applies $412,995 in FY 21 Section 5307 funds to replace one of nine buses that have met their minimum useful life of 12 years and/or 500,000 miles. The grant funds the purchase of one (1) of nine (9) replacement Compressed Natural Gas (CNG) buses that have an expected minimum useful life of 12 years and/or 500,000 miles. The one (1) of nine (9) bus that will be replaced have met their minimum useful life of 12 years and/or 500,000 miles and will be disposed of in accordance with Federal requirements. The CNG's will meet the Americans with Disabilities Act (ADA) requirements.

This activity was included in the 2025 FTIP # LA9919475 with FTIP amendment 25-15 approved on October 30, 2025.

Will 3rd Party contractors be used to fulfill this activity line item?

Yes, 3rd Party Contractors will be used for this line item.

Propulsion Fuel Type Vehicle Condition Vehicle Size (ft.) N/A Compressed Natural Gas New 40-FT
Funding Source Section of
Statute
CFDA
Number Amount
5307 - Urbanized Area Formula Grants (2013 and
forward) 5307-2A 20507 $412,995
Local $103,249
Local/In-Kind $0
State $0
State/In-Kind $0
Other Federal $0
Transportation Development Credit $0
Adjustment $0
Total Eligible Cost $516,244
Milestone Name Est. Completion
Date Description
RFP/IFB Issue Date 12/30/2025
Contract Award Date 3/30/2026 The awarded contractor is New Flyer of America, Inc.

Initial Delivery Date 1/4/2028
Final Delivery Date 2/4/2028
Contract Closeout 5/30/2028
Project Environmental Findings
Finding: Class II(c) - Categorical Exclusions (C-List)
Class Level Description
Class II(c) consists of projects that do not have a significant environmental impact on the human or natural environment and are therefore categorically excluded from the requirement to prepare an environmental assessment or an environmental impact statement. FTA requires a sufficient project description to support a CE determination. The project may require additional documentation to comply with other environmental laws.

Categorical Exclusion Description
Type 07: Acquisition, installation, rehabilitation, replacement, and maintenance of vehicles or equipment, within or accommodated by existing facilities, that does not result in a change in functional use of the facilities, such as: equipment to be located within existing facilities and with no substantial off-site impacts; and vehicles, including buses, rail cars, trolley cars, ferry boats and people movers that can be accommodated by existing facilities or by new facilities that qualify for a categorical exclusion.

Date Description Date

Class IIc CE Approved
Scope Name /
Code
Line Item
Number Line Item Name Quantity FTA Amount
Total Eligible
Cost

BUS - ROLLING
STOCK (111-00) 11.12.01 BUY REPLACEMENT 40-FT BUS 1 $412,995.00 $516,244.00 Project Title: Bus Replacements - CNGs
Project Number Temporary Project Number Date Created Start Date End Date CA-2026-070-02-00 1657-2025-1-P2 7/1/2025 12/30/2025 5/30/2028 Project Description

PROJECT FUNDING
Federal Funds (80%):

Section 5307, FYY 2022 Los Angeles (UZA #060020): $5,423,813 Total Federal Funds: $5,423,813
Local Match (20%)
Senate Bill 1 (SB1): $1,355,953
Total Project Cost: $6,779,766
This grant applies $5,423,813 in FY22 Section 5307 funds to replace eight (8) of nine (9) buses that have met their minimum useful life of 12 years and/or 500,000 miles.

Project Benefits
Replacing eight (8) of nine (9) buses is crucial for maintaining operational reliability and safety.

Additional Information
None provided.

Location Description
The Citys Transportation Facility is located at:
400 S Taylor Ave
Montebello, CA 90640
Project Location (Urbanized Areas)
UZA Code Area Name
060000 California
060020 Los Angeles-Long Beach-Anaheim, CA
Congressional District Information
District State
28 California
31 California
37 California
38 California

42 California
34 California
Program Plan Information

STIP/TIP
Date: 10/30/2025
Description: Description: Purchase nine (9) replacement CNG buses.

TIP Project No/ID: LA9919475
TIP No/Amendment No.: 25-15 approved on October 30, 2025 Project Name: CNG Buses
Urbanized Area: LA/Long Beach/Anaheim
UPWP
Date: N/A
Description: N/A
Long Range Plan
Date: N/A
Description: N/A
Project Control Totals
Funding Source Section of
Statute
CFDA
Number Amount
5307 - Urbanized Area Formula Grants (2013 and
forward) 5307-2A 20507 $5,423,813
Local $1,355,953
Local/In-Kind $0
State $0
State/In-Kind $0
Other Federal $0
Transportation Development Credit $0
Adjustment $0
Total Eligible Cost $6,779,766
Project Budget
Project
Number Budget Item FTA Amount Non-FTA Amount
Total Eligible
Amount Quantity
CA-2026-
070-02-
00 111-
00 (111-
A2)
BUS - ROLLING STOCK $5,423,813.00 $1,355,953.00 $6,779,766.00 8

CA-2026-
070-02-
00 11.12.01
BUY

REPLACEMENT
40-FT BUS
$5,423,813.00 $1,355,953.00 $6,779,766.00 8
Project Budget Activity Line Items
Budget Activity Line Item: 11.12.01 - BUY REPLACEMENT 40-FT BUS Scope Name / Code Line Item
#
Line Item Name Activity Quantity

BUS - ROLLING
STOCK (111-00) 11.12.01 BUY REPLACEMENT 40-FT BUS

BUY REPLACEMENTS -
CAPITAL BUS 8
Extended Budget Description

PROJECT FUNDING
Federal Funds (80%):

FY 2022 Section 5307 (UZA #60020): $5,423,813
Total Federal Funds: $5,423,813
Local Match (20%)
Senate Bill 1 (SB1): $1,355,953
Total Project Cost: $6,779,766
This grant applies $5,423,813 in FY 22 Section 5307 funds to replace eight (8) of nine (9) buses that have met their minimum useful life of 12 years and/or 500,000 miles. The grant funds the purchase of eight (8) of nine (9) replacement Compressed Natural Gas (CNG) buses that have an expected minimum useful life of 12 years and/or 500,000 miles. The eight (8) of nine (9) buses that will be replaced have met their minimum useful life of 12 years and/or 500,000 miles and will be disposed of in accordance with Federal requirements. The CNG's will meet the Americans with Disabilities Act (ADA) requirements.

This activity was included in the 2025 FTIP # LA9919475 and is pending amendments to the FTIP.

Will 3rd Party contractors be used to fulfill this activity line item? Yes, 3rd Party Contractors will be used for this line item.

Propulsion Fuel Type Vehicle Condition Vehicle Size (ft.) N/A Compressed Natural Gas New 40-FT
Funding Source Section of
Statute
CFDA
Number Amount
5307 - Urbanized Area Formula Grants (2013 and
forward) 5307-2A 20507 $5,423,813
Local $1,355,953
Local/In-Kind $0
State $0
State/In-Kind $0
Other Federal $0
Transportation Development Credit $0
Adjustment $0

Total Eligible Cost $6,779,766
Milestone Name Est. Completion
Date Description
RFP/IFB Issue Date 12/30/2025
Contract Award Date 3/30/2026 The awarded contractor is New Flyer of America, Inc.

Initial Delivery Date 1/4/2028
Final Delivery Date 2/4/2028
Contract Closeout 5/30/2028
Project Environmental Findings
Finding: Class II(c) - Categorical Exclusions (C-List)
Class Level Description
Class II(c) consists of projects that do not have a significant environmental impact on the human or natural environment and are therefore categorically excluded from the requirement to prepare an environmental assessment or an environmental impact statement. FTA requires a sufficient project description to support a CE determination. The project may require additional documentation to comply with other environmental laws.

Categorical Exclusion Description
Type 07: Acquisition, installation, rehabilitation, replacement, and maintenance of vehicles or equipment, within or accommodated by existing facilities, that does not result in a change in functional use of the facilities, such as: equipment to be located within existing facilities and with no substantial off-site impacts; and vehicles, including buses, rail cars, trolley cars, ferry boats and people movers that can be accommodated by existing facilities or by new facilities that qualify for a categorical exclusion.

Date Description Date
Class IIc CE Approved
Scope Name /
Code
Line Item
Number Line Item Name Quantity FTA Amount Total Eligible Cost

BUS - ROLLING
STOCK (111-00) 11.12.01 BUY REPLACEMENT 40-FT BUS 8 $5,423,813.00 $6,779,766.00 Project Title: Bus Replacements - FCEBs
Project Number Temporary Project Number Date Created Start Date End Date CA-2026-070-03-00 1657-2025-1-P3 1/15/2026 12/30/2025 5/30/2028 Project Description

PROJECT FUNDING
Federal Funds (80%):

FY 2023 Section 5307 (UZA #060020): $3,597,375
Total Federal Funds: $3,597,375

Local Match (20%)
Senate Bill 1 (SB1): $899,344
Total Project Cost: $4,496,719
This grant applies $3,597,375 in FY 23 Section 5307 funds to replace three buses that have met their minimum useful life of 12 years and/or 500,000 miles.

Project Benefits
Replacing these three (3) buses is crucial for maintaining operational reliability and safety.

Additional Information
None provided.

Location Description
The City's Transportation Facility is located at:
400 S Taylor Ave
Montebello, CA 90640
Project Location (Urbanized Areas)
UZA Code Area Name
060000 California
060020 Los Angeles-Long Beach-Anaheim, CA
Congressional District Information
District State
28 California
31 California
37 California
38 California
42 California
34 California
Program Plan Information

STIP/TIP
Date: 12/16/2024
Description: Description: Purchase three (3) replacement Hydrogen Fuel Cell Electric buses TIP Project No/ID: LA9919107
TIP No/Amendment No.: 25-15 approved on October 30, 2025 Project Name: FCEBs
Urbanized Area: LA/Long Beach/Anaheim
UPWP
Date: N/A
Description: N/A
Long Range Plan
Date: N/A

Description: N/A
Project Control Totals
Funding Source Section of
Statute
CFDA
Number Amount
5307 - Urbanized Area Formula Grants (2013 and
forward) 5307-2A 20507 $3,597,375
Local $899,344
Local/In-Kind $0
State $0
State/In-Kind $0
Other Federal $0
Transportation Development Credit $0
Adjustment $0
Total Eligible Cost $4,496,719
Project Budget
Project
Number Budget Item FTA Amount Non-FTA Amount
Total Eligible
Amount Quantity
CA-2026-
070-03-00
111-
00 (111-
A3)
BUS - ROLLING STOCK $3,597,375.00 $899,344.00 $4,496,719.00 3 CA-2026-
070-03-00 11.12.01
BUY

REPLACEMENT
40-FT BUS
$3,597,375.00 $899,344.00 $4,496,719.00 3
Project Budget Activity Line Items
Budget Activity Line Item: 11.12.01 - BUY REPLACEMENT 40-FT BUS Scope Name / Code Line Item
#
Line Item Name Activity Quantity

BUS - ROLLING
STOCK (111-00) 11.12.01 BUY REPLACEMENT 40-FT BUS

BUY REPLACEMENTS -
CAPITAL BUS 3
Extended Budget Description

PROJECT FUNDING
Federal Funds (80%):

FY 2023 Section 5307 (UZA #060020): $3,597,375
Total Federal Funds: $3,597,375
Local Match (20%)
Senate Bill 1 (SB1): $899,344
Total Project Cost: $4,496,719

This grant applies $3,597,375 in FY 23 Section 5307 funds to replace three buses that have met their minimum useful life of 12 years and/or 500,000 miles. The grant funds the purchase of three (3) replacement fuel cell electric buses (FCEBs) that have an expected minimum useful life of 12 years and/or 500,000 miles. The three (3) buses that will be replaced have met their minimum useful life of 12 years and/or 500,000 miles and will be disposed of in accordance with Federal requirements. The FCEBs will meet the Americans with Disabilities Act (ADA) requirements.

This activity was included in the 2025 FTIP # LA9919107.

Will 3rd Party contractors be used to fulfill this activity line item? Yes, 3rd Party Contractors will be used for this line item.

Propulsion Fuel Type Vehicle Condition Vehicle Size (ft.) N/A Fuel Cell New 40-FT
Funding Source Section of
Statute
CFDA
Number Amount
5307 - Urbanized Area Formula Grants (2013 and
forward) 5307-2A 20507 $3,597,375
Local $899,344
Local/In-Kind $0
State $0
State/In-Kind $0
Other Federal $0
Transportation Development Credit $0
Adjustment $0
Total Eligible Cost $4,496,719
Milestone Name Est. Completion
Date Description
RFP/IFB Issue Date 12/30/2025
Contract Award Date 3/30/2026 The awarded contractor is New Flyer of America, Inc.

Initial Delivery Date 1/4/2028
Final Delivery Date 2/4/2028
Contract Completion
Date 5/30/2028
Project Environmental Findings
Finding: Class II(c) - Categorical Exclusions (C-List)
Class Level Description
Class II(c) consists of projects that do not have a significant environmental impact on the human or natural environment and are therefore categorically excluded from the requirement to prepare an environmental assessment or an environmental impact statement. FTA requires a sufficient project description to support a CE determination. The project may require additional documentation to comply with other environmental laws.

Categorical Exclusion Description

Type 07: Acquisition, installation, rehabilitation, replacement, and maintenance of vehicles or equipment, within or accommodated by existing facilities, that does not result in a change in functional use of the facilities, such as: equipment to be located within existing facilities and with no substantial off-site impacts; and vehicles, including buses, rail cars, trolley cars, ferry boats and people movers that can be accommodated by existing facilities or by new facilities that qualify for a categorical exclusion.

Date Description Date
Class IIc CE Approved
Scope Name /
Code
Line Item
Number Line Item Name Quantity FTA Amount Total Eligible Cost

BUS - ROLLING
STOCK (111-00) 11.12.01 BUY REPLACEMENT 40-FT BUS 3 $3,597,375.00 $4,496,719.00 Part 4: Fleet Details
Fleet Type: Fixed Route
Fleet Comments
May 21, 2026
Montebello Bus Lines is currently exceeding the spare ratio in anticipation of major upcoming events in Los Angeles, including the FIFA World Cup and the Olympic Games. These buses will be used to provide additional transportation services and support increased passenger demand during these large-scale events.

June 30, 2025
The City’s service levels have not yet returned to pre-pandemic standards; in addition, the driver shortage is impacting transit service recovery. In response, the Fleet Inventory is under major revision to address the resulting spare ratio overage. As part of a comprehensive fleet assessment, the City identified 17 vehicles that either met or exceeded their useful life benchmark (ULB). These 17 vehicles are designated for the Contingency Fleet and will be reserved or retained for emergencies or other unforeseen and FTAjustified activities. In addition, the City is following the FTA disposition requirements for three vehicles that have greatly exceeded their ULB. The City’s revised Fleet Inventory for active revenue service totals 49 vehicles. Both the revised Fleet Inventory Plan and the updated Contingency Fleet Plan documenting these changes will be uploaded to TrAMS accordingly.

Current Value
I. Active Fleet
A. Peak Requirement 39
B. Spares 10
C. Total (A+B) 49
D. Spare Ratio (B/A) 25.64%
II. Inactive Fleet
A. Other 17

B. Pending Disposal 0
C. Total (A+B) 17
III. Total (I.C and II.C) 66
Part 5: FTA Review Comments
Application Review Comments
Comment By Luis Lopez
Comment
Type Pre-Award Manager Returns Application
Date 5/20/2026
Comment Address comments per email on May 20, 2026.

ATTACHMENT _B_
RESOLUTION NO. 26-47

RESOLUTION OF THE CITY OF MONTEBELLO, CALIFORNIA,

APPROVING THE RECEIPT OF FEDERAL TRANSIT ADMINISTRATION SECTION 5307 FORMULA GRANT FUNDS AND AMENDING THE
FISCAL YEAR 2026-27 BUDGET TO APPROPRIATE FUNDS FOR THE

PROCUREMENT OF HYDROGEN FUEL CELL ELECTRIC BUSES AND

COMPRESSED NATURAL GAS BUSES

RECITALS
WHEREAS, the Federal Transit Administration (FTA) administers the Urbanized Area Formula Grant Program under Section 5307 of Title 49 of the United States Code to provide financial assistance for eligible public transportation capital projects and related transit improvements; and
WHEREAS, the City of Montebello, through Montebello Bus Lines (MBL), is an eligible recipient of FTA Section 5307 funding and receives annual formula allocations through the Los Angeles County Metropolitan Transportation Authority (Metro); and WHEREAS, the City has been awarded Grant No. CA-2026-070-00 in the amount of Nine Million Four Hundred Thirty-Four Thousand One Hundred Eighty-Three Dollars ($9,434,183) for the procurement of three (3) Hydrogen Fuel Cell Electric Buses (FCEBs) and nine (9) Compressed Natural Gas (CNG) buses; and
WHEREAS, the grant funding consists of Section 5307 apportionments from Fiscal Years 2021, 2022, and 2023 and is intended to support the replacement of aging transit vehicles that have reached or exceeded their federally established useful life benchmark; and
WHEREAS, in order to receive and utilize the grant funds, the City must amend the Fiscal Year 2026-27 Budget to appropriate the grant revenues and corresponding local matching funds into Account No. 270-9068-2026-070; and WHEREAS, the City Council finds that acceptance of the grant funds and amendment of the Fiscal Year 2026-27 Budget are in the best interests of the City and will support the continued provision of public transportation services to the community.

NOW THEREFORE, THE CITY COUNCIL OF THE CITY OF MONTEBELLO HEREBY RESOLVES, FINDS, AND DECLARES AS FOLLOWS:

APPROVES THE AMENDMENT OF THE FY 2026-27 BUDGET TO

APPROPRIATE FUNDS FOR THE PROCUREMENT OF HYDROGEN

FUEL CELL ELECTRIC BUSES AND COMPRESSED NATURAL GAS
BUSES
SECTION 1: Approvals and Certifications.

RESOLUTION NO. 26-47

1. Approves the receipt of Federal Transit Administration Grant No. CA-2026- 070-00 in the amount of Nine Million Four Hundred Thirty-Four Thousand One Hundred Eighty-Three Dollars ($9,434,183) for the procurement of three (3) Hydrogen Fuel Cell Electric Buses and nine (9) Compressed Natural Gas buses.

2. Authorizes the amendment of the Fiscal Year 2026-27 Budget to appropriate grant funding in the amount of $9,434,183 into Account No. 270-9068-2026-070 and to incorporate the required state and local matching funds associated with the grant-funded projects.

3. Authorizes the Director of Transportation, Finance Director, City Manager, and their designees to take all actions necessary to administer the grant, amend the budget, execute related documents, and implement the projects consistent with applicable federal, state, and local requirements.

4. Agrees to comply with all applicable federal, state and local laws, ordinances, rules, regulations and guidelines; and
SECTION 2: That the City Clerk shall certify to the passage and adoption of this Resolution and that the same shall be in full force and effect.

APPROVED AND ADOPTED this 24th day of June 2026.

_______________________________
Georgina Tamayo, Mayor
ATTEST: APPROVED AS TO FORM:

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

STATE OF CALIFORNIA )
COUNTY OF LOS ANGELES ) SS:

CITY OF MONTEBELLO )
I, Christopher Jimenez, City Clerk of the City of Montebello, County of Los Angeles, State of California, hereby certify that the foregoing Resolution No. 26-47 was passed and adopted by the City Council of the City of Montebello, signed by the Mayor and attested by the City Clerk at a regular meeting of said Council held on the 24th day of June 2026 and that said Resolution was adopted by the following vote, to-wit:

RESOLUTION NO. 26-47

AYES:

NOES:

ABSTAIN:

ABSENT:

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

DATE:

Christopher Jimenez, City Clerk

ITEM # 26

CITY OF MONTEBELLO

CITY COUNCIL AGENDA STAFF REPORT
TO: Honorable Mayor and City Council Members
FROM: Raul Alvarez, City Manager

BY: John Soria, Director of Transportation
SUBJECT: APPROVE AGREEMENT NO. 4545 WITH TRANSTRACK SYSTEMS

INC TO PROVIDE SUPPORT SERVICES FOR FEDERAL TRANSIT

ADMINISTRATION REPORTING
DATE: June 24, 2026
RECOMMENDATIONS:

It is recommended that the City Council:

1. Approve Agreement No. 4545 with Transtrack Systems, Inc. (Transtrack Systems) for a three-year (3 year) term for a total not-to-exceed amount of $128,205, to provide software licensing and support services in accordance with the Federal Transit Administration’s (FTA) reporting requirements for Montebello Bus Lines’ (MBL); and

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

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

FISCAL IMPACT:

The total three-year cost for Agreement No. 4545 is $128,205 (Attachment A). The funding will be provided through the Transportation Department’s Fiscal Year 2026-27 adopted operating budget (Account No. 600-90-900-6040.10: Transit fund, Transit Administration, Contract Services - Outside Contracts). Therefore, a budget amendment is not required. Subsequent fiscal year operating budgets will be developed to include the appropriate allocations needed to fund the scope of services provided.

Table 1 breaks down the anticipated annual funding allocations needed as follows:

CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 24, 2026

BACKGROUND/DISCUSSION:

The City operates Montebello Bus Lines (MBL) to provide safe, reliable, and accessible public transportation services to residents, businesses, and visitors throughout Montebello and the surrounding communities. Committed to serving a culturally diverse community, MBL continuously adapts its fixed routes and schedules to meet changing regional mobility needs. These ongoing operational updates improve service efficiency, reliability and overall customer satisfaction.

To support these efforts and ensure seamless day-to-day operations, MBL relies on specialized computer software to manage critical transit support functions. Transtrack Systems serves as a comprehensive transit management and reporting platform that provides essential support for FTA reporting requirements. The software functions as a centralized database for collecting, storing, analyzing, and reporting operational and performance data, enabling staff to monitor key performance indicators, maintain regulatory compliance, and make data-driven decisions regarding transit operations. In addition, the software facilitates efficient access to operational statistics, maintenance information, ridership trends, and other performance metrics necessary for managing the transit system.

Part of this agreement will also incorporate the APC-AVL (Automated Passenger Counting and Automatic Vehicle Location) module. The APC-AVL module will automate the collection of ridership and vehicle location data, significantly improving the accuracy and reliability of passenger counts and operational reporting. The implementation of this technology will eliminate the need for manual ridership data entry, reduce staff workload, minimize the potential for human error, and provide real-time operational insights. In addition, the automated collection of ridership and location information will enhance MBL's ability to analyze route performance, optimize service planning, support grant reporting requirements, and improve overall operational efficiency.

Montebello Municipal Code Section 3.20.050 – Conformance with Bidding Procedures, outlines exceptions to the formal bidding procedures for the purchase of supplies and equipment. Since Transtrack Systems is identified as a sole-source vendor due to the proprietary nature of the software and the unique attributes of the data collected, this solution will be procured in accordance with MMC 3.20.050 (B), when supplies and equipment can only be obtained from one source.

CITY COUNCIL AGENDA REPORT - MEETING OF JUNE 24, 2026

Therefore, staff recommend the City Council approve Agreement No. 4545 with Transtrack Systems, attached hereto in substantial form, to ensure MBL’s daily operations and essential services continue without disruption. Once approved, staff will complete a Sole Source Declaration form as written record for this vendor (Attachment B).

ENVIRONMENTAL:

N/A
ANALYSIS:

N/A
SUMMARY:

Staff recommend the City Council approve Agreement No. 4545 with Transtrack Systems, attached hereto in substantial form (Attachment A), for a 3-year term with the option for renewal of up to two (2) additional 1-year terms, for a total not-to-exceed amount of $128,205 (Attachment C), to provide software licensing and support services in accordance with the FTA’s reporting requirements for MBL; authorize the City Manager and/or his designee to execute the agreement on the City’s behalf; and take such additional, related action as may be desirable.

ATTACHMENT(S)

1. Attachment A – Proposed Draft Agreement No. 4545

2. Attachment B – Sole Source Declaration Form

3. Attachment C – Transtrack Systems Proposal

ATTACHMENT A

CITY OF MONTEBELLO
PROFESSIONAL SERVICES AGREEMENT NO. 4545

WITH TRANSTRACK SYSTEMS, INC
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is made and entered into on June 24, 2026 (“Effective Date”), by and between the CITY OF MONTEBELLO, a California municipal corporation (the “CITY”) and TRANSTRACK SYSTEMS INC (the “VENDOR”). The CITY and the VENDOR are sometimes referred to herein individual as the “Party,” and jointly as the “Parties.”

RECITALS
WHEREAS, the CITY desires to procure software licensing and support services in accordance with the Federal Transit Administration’s (FTA) reporting requirements for Montebello Bus Lines’ (MBL); and
WHEREAS, the VENDOR represents that it is fully qualified to provide such goods by virtue of its experience and the training, education, and expertise of its principals and employees.

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

SECTION 1. INCORPORATION OF RECITALS AND OTHER CONTRACT

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

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

2. All other documents, including but not limited to all applicable bonds, insurance certificates, notices, schedules, forms, certifications, and affidavits.
b. These documents shall be collectively referred to herein as the “Contract Documents.” In the event of a conflict among the Contract Documents, the order of precedence list above shall apply.

SECTION 2. SERVICES / COMPENSATION.
a. All terms, conditions, requirements, and provisions, as such is set forth fully in Exhibit “A” hereto, are hereby incorporated fully herein by this reference and shall be binding on the Parties. To the extent of a conflict between the terms of this Agreement and that set forth in any exhibits or attachments hereto, the terms of this Agreement shall govern.
b. The Vendor shall provide to the City all goods, equipment, materials, and incidentals necessary to provide software licensing and support services in accordance with the Federal Transit Administration’s (FTA) reporting requirements

PROFESSIONAL SERVICES AGREEMENT NO. 4545

for Montebello Bus Lines incorporated fully herein by this reference (hereinafter “Goods”).
c. The Vendor shall be compensated for performance of this Agreement as set forth in the Schedule of Compensation attached hereto as Exhibit “B” and incorporated fully herein by this reference (“Compensation”). The Vendor shall provide an itemized invoice to the City. The Vendor shall not incur fees or costs which exceed the Compensation without the prior written consent of the City.

SECTION 3. TERM.
a. This Agreement shall commence on the Effective Date and shall remain in effect until all software licensing, support services, and related deliverables have been provided and accepted by the City at 400 S Taylor Ave, Montebello, CA 90640, unless terminated earlier as hereinafter provided. b. Notice to Proceed. Any work or service contemplated under this Agreement shall not commence until the CITY has issued a written Notice to Proceed issued by CITY’s applicable, department head.

SECTION 4. PERFORMANCE.
a. The VENDOR shall at all times, faithfully, competently, and to the best of its ability, experience, and talent, perform all tasks described herein. b. The VENDOR shall employ, at a minimum, generally accepted standards and practices utilized by companies engaged in providing similar services, as are required of VENDOR hereunder, in meeting its obligations under this Agreement. c. The VENDOR shall be knowledgeable of and subject to all CITY ordinances, rules and regulations, standard operating procedures, and the supervisory chain of command.
d. The VENDOR shall have the right to retain, subject to the CITY's approval, additional individuals, VENDORs or subVENDORs to assist in the completion of services as herein defined. Compensation for additional individuals, VENDORs or subVENDORs shall be the sole and exclusive responsibility of the VENDOR. e. The VENDOR shall retain all original reports, field and office notes, correspondence, calculations, maps, and other documents specifically related to the services provided by the VENDOR pursuant to this Agreement, other than documents which are exempt from disclosure pursuant to the attorney-client privilege or any other law. Said documents shall be made available for inspection by the CITY upon request.

SECTION 5. WORK PRODUCT.
a. The VENDOR hereby agrees that all work product produced pursuant to this Agreement, and provided to the CITY during and upon completion of this Agreement, shall be the property of the CITY, and ownership of said work product shall be retained by the CITY. The VENDOR may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by the VENDOR.

PROFESSIONAL SERVICES AGREEMENT NO. 4545

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

SECTION 6. EXTRA SERVICES.

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

SECTION 7. CITY SUPERVISION.

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

SECTION 8. TERMINATION.

In the event that either Party hereto fails or refuses to perform any of the provisions of this Agreement at the time and in the manner required, the non-defaulting party shall give the defaulting party written notice of the default, the nature of the default, and of the steps necessary to cure the default.
a. Termination for Cause. In the event that any of the provisions of the Agreement are violated by either party, the non-defaulting Party may terminate the Agreement by serving written notice upon the other Party, listing the violation(s) and its intent to terminate such Agreement unless within ten (10) days after the serving of such notice, such violation shall cease or be rectified, the contract shall upon the expiration of an additional thirty (30) days cease and terminate. Violations by the VENDOR which cannot be corrected within ten (10) days, said contract shall at the option of the CITY cease and terminate upon the giving of like notice. In the event of any such termination for default by the VENDOR, the CITY may take over the work and prosecute the same to completion by contract or otherwise for the account and at the expense of the VENDOR. The VENDOR and his sureties shall be liable to the CITY for any excess cost occasioned in the event of any such termination.

This change shall not be construed to prevent the termination, for other causes authorized by law or other provisions of this contract. In the event of a termination for cause, the VENDOR shall only be entitled to the Compensation for those Professional Services satisfactory performed on or before the effective date of termination.
b. Termination for Convenience. The CITY shall have the option, at its sole discretion and without cause, to terminate this Agreement in whole, or in part, by giving ten (10) business days’ written notice to the VENDOR. Upon the termination of this Agreement as provided herein, the CITY shall provide to the VENDOR the part of Compensation which would otherwise be payable to the VENDOR for services the VENDOR had completed as of the date of termination, less the amount

PROFESSIONAL SERVICES AGREEMENT NO. 4545

of all previous payment with respect to the Compensation. Further, upon such a termination for convenience by the CITY, the Parties agree that the VENDOR shall be reimbursed for any “non-refundable” costs that the VENDOR has incurred for its services under this Agreement, provided that: (1) such “non- refundable” costs were incurred by the VENDOR prior to the date of termination, and (2) that the VENDOR provides the CITY with adequate proof that the VENDOR incurred the costs, and is unable to be seek a refund for such costs. Such “non-refundable” costs may include, but are not limited to, travel reservations incurred by the VENDOR for its performance of services under this Agreement. The VENDOR agrees to cease all work under this Agreement on or before the effective date of any notice of termination.

SECTION 9. EMPLOYMENT OF CITY EMPLOYEES.

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

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

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

SECTION 11. INDEPENDENT VENDOR.
a. The VENDOR is and shall, at all times, remain as to the CITY a wholly independent VENDOR. Neither the CITY nor any of its elected officials, officers, employees, or agents shall have control over the conduct of the VENDOR except as expressly set forth in this Agreement. The VENDOR shall not at any time or in any manner represent that he or she is in any manner an elected official, officer, employee, or agent of the CITY. No employee benefits shall be available to the VENDOR in connection with the performance of this Agreement. Except as provided in this Agreement, the CITY shall not pay salary, wages, or other compensation to the VENDOR for performance hereunder for the CITY, the CITY shall not be liable for compensation to the VENDOR, the VENDOR’s employees or the VENDOR’s subVENDORs for injury or sickness arising out of performing services hereunder.
b. The parties further acknowledge and agree that nothing in this Agreement shall create or be construed to create a partnership, joint venture, employment relationship or any other relationship except as set forth in this Agreement. c. The CITY shall not deduct from the Compensation paid to the VENDOR any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to the VENDOR. The CITY shall have no responsibility to provide the VENDOR, its employees or subVENDORs with workers’ compensation insurance or any other insurance.

SECTION 12. CalPERS ANNUITANTS AND ELIGIBILITY INDEMNITY. a. If the VENDOR is a California Public Employees’ Retirement System

PROFESSIONAL SERVICES AGREEMENT NO. 4545

(“CalPERS”) annuitant, the VENDOR must provide the City with written notification of such fact a minimum of 14 calendar days prior to commencement of services under this Agreement. Failure to provide such notification may result in termination of the Agreement, and any penalties or other costs relating thereto shall be borne by the VENDOR. If this Agreement remains in place, the VENDOR shall execute any amendment(s) to this Agreement requested by the City in order to comply with all laws and regulations applicable to CalPERS annuitants. b. In the event that the VENDOR or any employee, agent, or subVENDOR of the VENDOR providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of the CITY, the VENDOR shall indemnify, defend, and hold harmless the CITY for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of the VENDOR or its employees, agents, or subVENDORs, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of the CITY. c. Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, the VENDOR and any of its employees, agents, and subVENDORs providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by the CITY, including but not limited to eligibility to enroll in PERS as an employee of the CITY and entitlement to any contribution to be paid by the CITY for employer contribution and/or employee contributions for PERS benefits.

SECTION 13. LEGAL RESPONSIBILITIES.

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

SECTION 14. INDEMNIFICATION.

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

SECTION 15. INSURANCE COVERAGE.
a. During the term of this Agreement, the VENDOR shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with VENDOR’s

PROFESSIONAL SERVICES AGREEMENT NO. 4545

performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:
 Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis for bodily injury and property damage, including products-completed operations, personal injury, and advertising injury, with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, the limit shall be twice the required occurrence limit.
 Automobile Liability Insurance: Insurance Services Office Form Number CA 0001 covering, Code 1 (any auto), or if VENDOR has no owned autos, Code 8 (hired) and 9 (non-owned), with limit no less than $1,000,000 per accident for bodily injury and property damage.  Worker's Compensation insurance as required by the laws of the State of California, with Statutory Limits, and Employer’s Liability Insurance with limit of no less than $1,000,000 per accident for bodily injury or disease.
 Professional Liability insurance appropriate to the VENDOR’S profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.
b. If the VENDOR maintains higher limits than the minimums shown above, the CITY requires and shall be entitled to coverage for the higher limits maintained by the VENDOR.
c. The VENDOR shall require each of its subVENDORs, if any, to maintain insurance coverage that meets all of the requirements of this Agreement. d. The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a current rating of at least A:VII in the latest edition of Best's Insurance Guide.
e. Each insurance policy required above shall state that coverage shall not be canceled, except after thirty (30) days’ prior written notice (ten [10] days for non-payment) has been given to the CITY. The VENDOR agrees that if it does not keep the aforesaid insurance in full force and effect the CITY may either (i) immediately terminate this Agreement for Cause; or (ii) take out the necessary insurance and pay, at the VENDOR’s expense, the premium thereon. f. Evidence of Insurance prior to commencement. The Contractor shall provide to the CITY Certificate(s) of Insurance evidencing such coverage together with copies of the required policy endorsements no later than five (5) business days prior to commencement of service and at least fifteen (15) business days prior to the expiration of any policy. Unreasonable failure to provide such evidence may be cause for termination of the Agreement as provided herein or delay the services’ commencement date. The evidence of insurance shall be U.S. mail or email to:

City of Montebello
Attn: Risk Manager

PROFESSIONAL SERVICES AGREEMENT NO. 4545

1600 West Beverly Boulevard
Montebello, CA 90640
Email: [email protected]
Coverage shall not be suspended, voided, cancelled, reduced in coverage or in limits, non-renewed, or materially changed for any reason, without thirty (30) days prior written notice thereof given by the insurer to the CITY by U.S. mail, or by personal delivery, except for nonpayment of premiums, in which case ten (10) days prior notice shall be provided.
g. Evidence of Insurance during the entire term of the Agreement. At all times during the term of this Agreement, the VENDOR shall maintain on file with the CITY’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and naming the CITY as an additional insured. The VENDOR shall, prior to commencement of work under this Agreement, file with the CITY’s Risk Manager such certificate(s). h. The VENDOR shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Such proof will be furnished at least two (2) weeks prior to the expiration of the coverages. i. The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming the CITY, its officers, employees, agents and volunteers as additional insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to the CITY. The VENDOR agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.
j. The insurance provided by the VENDOR shall be primary to any coverage available to the CITY. Any insurance or self-insurance maintained by the CITY, its officers, employees, agents, or volunteers, shall be in excess of VENDOR’s insurance and shall not contribute with it.
k. All insurance coverage provided pursuant to this Agreement shall not prohibit the VENDOR, and VENDOR’s employees, agents or subVENDORs, from waiving the right of subrogation prior to a loss. The VENDOR hereby waives all rights of subrogation against the CITY.
l. Any deductibles or self-insured retentions must be declared to and approved by the CITY. At the option of the CITY, the VENDOR shall either reduce or eliminate the deductibles or self-insured retentions with respect to the CITY, or the VENDOR shall procure a bond guaranteeing payment of losses and expenses. m. Procurement of insurance by the VENDOR shall not be construed as a limitation of the VENDOR'S liability or as full performance of VENDOR’s duties to indemnify, hold harmless and defend under the indemnity covenants of this Agreement.

PROFESSIONAL SERVICES AGREEMENT NO. 4545

SECTION 16. SUBCONTRACT, ASSIGNMENT OR DELEGATION.

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

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

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

SECTION 17. NO WAIVER.

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

SECTION 18. DISPUTE RESOLUTION; GOVERNING LAW.

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

SECTION 19. ATTORNEY’S FEES AND COSTS.

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

SECTION 20. WARRANTIES.

Each of the parties represents and warrants to one another as follows:
a. It has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement; b. In executing this Agreement, it has carefully read this Agreement, knows the contents thereof, and has relied solely on the statements expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or

PROFESSIONAL SERVICES AGREEMENT NO. 4545

promise of any other party, or any other person or entity, not expressly set forth herein, nor upon the failure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever; and c. It is agreed that each party has the full right and authority to enter into this Agreement, and that the person executing this Agreement on behalf of either party has the full right and authority to fully commit and bind such party to the provisions of this Agreement.

SECTION 21. MISCELLANEOUS.
a. The descriptive paragraph headings of this Agreement are included for purposes of convenience only and shall not control or affect the construction of interpretation of any of its provisions.
b. Whenever the context hereof shall so require, the singular shall include the plural, the male gender shall include the female gender, and the neuter and vice versa.
c. In case any one or more of the provisions contained in this Agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect, such invalidity, illegality, or unenforceability shall not affect any other provision hereof and this Agreement shall be construed as if such invalid, illegal, or unenforceable provisions had never been contained herein.
d. The representations and warranties made by the parties to this Agreement shall survive the consummation of the transaction herein described. e. This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile transmission, shall for all purposes be treated as if it were delivered containing an original manual signature of the party whose signature appears in the facsimile and shall be binding upon such party in the same manner as though an originally signed copy had been delivered. f. Each of the parties acknowledges that it has been represented by independent counsel of its own choosing, or if it has not been so represented, it has been admonished to obtain independent counsel and has freely and voluntarily waived and relinquished the right to counsel. Each party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such party’s failure to perform under this Agreement or any agreement referred to in this Agreement.

SECTION 22. NOTICE.

All notices, demands, requests or approvals to be given under this Agreement shall be given in writing and conclusively shall be deemed served when delivered via email (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:

PROFESSIONAL SERVICES AGREEMENT NO. 4545

If to CITY: City of Montebello
Attn: Raul Alvarez, City Manager
1600 West Beverly Boulevard
Montebello, CA 90640
(323) 887-1200
Email: [email protected]
With a copy to: City of Montebello – Transportation
Attn: John Soria, Director of Transportation
400 South Taylor Avenue
Montebello, CA 90640
(323) 558-1625 ext. 1315
Email: [email protected]
If to VENDOR: Transtrack Systems Inc
Attn: Caren Lee, Manager – Custom Care
5625 Rockwell Drive, NE
Cedar Rapids, IA 52402
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 23. NON-DISCRIMINATION AND EQUAL OPPORTUNITY EMPLOYER.

In the performance of this Agreement, the VENDOR shall not discriminate against any employee, sub-VENDOR, or applicant for employment because of race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, mental condition or sexual orientation. The VENDOR will take affirmative action to ensure that sub-VENDOR and applicants are employed, and that employees are treated during employment, without regard to their race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.

SECTION 24. CONFLICT OF INTEREST.

The VENDOR covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by the VENDOR under this Agreement, or which would conflict in any manner with the performance of its services hereunder. The VENDOR further covenants that, in performance of this Agreement, no person having any such interest shall be employed by it. Furthermore, the VENDOR shall avoid the appearance of having any interest that would conflict in any manner with the performance of its services pursuant to this Agreement.

The VENDOR covenants not to give or receive any compensation, monetary or otherwise, to or from the ultimate vendor(s) of services to the CITY as a result of the

PROFESSIONAL SERVICES AGREEMENT NO. 4545

performance of this Agreement, or the services that may be procured by the CITY as a result of the recommendations made by the VENDOR. The VENDOR's covenant under this section shall survive the termination of this Agreement.

SECTION 25. ENTIRE AGREEMENT.

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

PROFESSIONAL SERVICES AGREEMENT NO. 4545

IN WITNESS WHEREOF, the parties, through their respective authorized representatives, have executed this Agreement as of the date first written above. (“CITY”) (“VENDOR”)

CITY OF MONTEBELLO TRANSTRACK SYSTEMS, INC
Raul Alvarez, City Manager Leanne Tribe, General Manager ATTEST:

Christopher Jimenez, City Clerk
APPROVED AS TO FORM:

Arnold M. Alvarez-Glasman, City Attorney
EXHIBITS:
 Exhibit A – VENDOR’s Proposal
 Exhibit B – Schedule of Compensation

EXHIBIT “A”
VENDOR’s Proposal

EXHIBIT “B”
Schedule of Compensation

Sole Source Declaration Form
Updated 03/2023

SOLE SOURCE DECLARATION
I, THE UNDERSIGNED, DO HEREBY CERTIFY to the best of my knowledge, after analyzing pertinent information available to us at this time, the item(s)/service(s) listed below can only be furnished by the following vendor due to the following justification(s):

Item/Service: SOFTWARE LICENSES AND SUPPORT SERVICES FOR FEDERAL

TRANSIT ADMINISTRATION (FTA) REPORTING
Vendor: TRANSTRACK SYSTEMS LLC
Address: 5265 ROCKWELL DRIVE NE.

City, State: CEDAR RAPIDS, IA 52402
Justification: Refer to Back Page of this Form for Accepted Justification and Indicate the Exception Claimed Below, Provide Additional Information as Needed Transtrack provides a robust database platform designed to streamline the analysis and reporting of operational performance within transportation systems. Its functionality spans various facets of transportation management, facilitating the collection, organization, and analysis of critical data for decision-making processes. Notably, Transtrack excels in centralizing disparate datasets, enabling transportation agencies to consolidate information from multiple sources into a single, accessible repository. This centralized approach simplifies data management and ensures data consistency and integrity, enabling more accurate analyses and reporting.

I declare under penalty of perjury that the foregoing is true and correct. _________________________________ ________________
John Soria
Director of Transportation Date

Under “Justification” on Page 1 of this form, indicate which exception to the Purchasing Municipal Code (Chapter 3.20 et al) is being claimed to deem this purchase a “sole source purchase:”
Acceptable and Allowed Exceptions:

1. Only one manufacturer makes the item(s) meeting required specifications, AND that manufacturer only sells direct/exclusively through one regional/national vendor/representative.

2. The original manufacturer can only perform maintenance or repair services, AND the manufacturer does not have multiple agents to perform the required services.

3. Replacement and/or spare parts are exclusively available from the original manufacturer, AND the original manufacturer does not have distributors for those parts.

4. Patented items or copyrighted materials that are only available from the patent or copyright holder.

5. A formal/informal survey has been conducted by the requesting Department and/or Finance Department to determine whether other vendors/consultants can satisfy the requirements of the item or service. The survey provides vendors/consultants with a list of detailed requirements, and they provide a written response regarding their capability to supply the item or service. If only one (1) vendor can meet all of the listed requirements, this survey may be used to support the sole source claim.

6. A collaborative project where a specific vendor/contractor/consultant is named by the funding agency and/or inter-agency agreement as the source of an item or service, and the use of the vendor/consultant is required for compatibility.

5625 Rockwell Drive, NE
Cedar Rapids, IA 52402
+1.319.361.0007
www.transtracksystems.net

June 5, 2026
John Soria
City of Montebello Bus Lines
400 South Taylor Avenue
Montebello, CA 90640
Subject: Maintenance & Support Contract Renewal
TransTrack Manager®
Dear Mr. Soria,
City of Montebello Bus Lines has expressed interest in extending their TransTrack Manager maintenance and support for 3 base years and 2 one-year option years for a total of a 5-year renewal. TransTrack is sharing the following information to assist Montebello Bus Lines in preparing for an upcoming board meeting.

The coverage period of this renewal is expected to be July 1, 2026 through June 30, 2031. The total renewal amount, for maintenance and support is $228,424. The breakdown is as follows:

Contract Year Coverage Period Amount
Year 1 July 1, 2026 – June 30, 2027 $40,270
Year 2 July 1, 2027 – June 30, 2028 $42,687
Year 3 July 1, 2028 – June 30, 2029 $45,248
Base Year Contract Value July 1, 2026 – June 30, 2029 $128,205 Option Year 1 July 1, 2029 – June 30, 2030 $48,415
Option Year 2 July 1, 2030 – June 30, 2031 $51,804
Total Contract Value July 1, 2026 – June 30, 2031 $228,424 Any additions to the contract which results in new recurring revenue will increase the annual maintenance and support costs outlined in this renewal.

5625 Rockwell Drive, NE
Cedar Rapids, IA 52402
+1.319.361.0007
www.transtracksystems.net

TransTrack has updated its standard Terms and Conditions (attached) to reflect our current approach to SaaS maintenance and support services. The pricing and coverage periods outlined in this letter are based on incorporating these updated terms into our renewal. We're flexible on how to structure this, whether through an amendment to the existing agreement or another approach that works for Montebello Bus Lines, and we are open to work with you to preserve your specific contractual requirements while ensuring the updated provisions governing our SaaS relationship are in place.

Sincerely,
Leanne Tribe, General Manager
TransTrack Solutions Group

2 APPENDIX 1
TransTrack SaaS TERMS AND CONDITIONS

1. Subscription Services. Supplier will make available to Customer (on a non-exclusive basis) the Subscription Services indicated in a SOW (the “Services”). Customer agrees that its purchase of a subscription to the Subscription Services is neither contingent upon the delivery of any future functionality or features nor dependent upon any oral or written public comments made by Supplier regarding future functionality or features.

2. Restrictions. Unless specifically indicated otherwise on an Order Form, Customer will use the Subscription Services only for its own, internal business purposes. Customer will not: (i) resell, license, rent, transfer, assign, copy, frame, or mirror any part or content of the Subscription Services; (ii) make the Subscription Services available for timesharing or service bureau purposes; or (iii) otherwise provide access to the Subscription Services to any third-party, except as such third-party access is expressly agreed to between the parties. Customer will not, subject to any non-waivable rights Customer may enjoy under applicable law, directly or indirectly: (i) reverse engineer, create derivative works, decompile, disassemble, or otherwise attempt to discover, the source code or underlying structure, ideas, know-how or algorithms relevant to the Subscription Services or any software, documentation or data related to the Subscription Services; (ii) interfere with or disrupt the integrity or performance of the Subscription Services or third-party data contained therein; (iii) attempt to gain unauthorized access to the Subscription Services or its related systems or networks; (iv) modify, translate, or create derivative works based on the Subscription Services; or (v) remove, modify, or obscure, any proprietary notices, markings, or labels. Customer may not access or use the Subscription Services or Supplier’s content or property (including but not limited to marketing and promotional materials), in order to build, support, or assist a third-party in building or supporting products or services that compete with Supplier or its offerings.

3. Supplier Software. Supplier may provide Customer with the ability to obtain certain Supplier software for use with the Subscription Services. If Supplier provides Supplier software to Customer and does not specify separate terms for such software, then such Supplier software is provided as part of the Subscription Services and Customer has the non-exclusive, worldwide, limited right to use such Supplier software, subject to the terms of this agreement (except for separately licensed elements of the Supplier software, which separately licensed elements are governed by the applicable separate terms), solely to facilitate Customer’s use of the Subscription Services. Customer may allow its users to use the Supplier software for this purpose, and Customer is responsible for their compliance with the license terms. Customer’s right to use any Supplier software will terminate on the earlier of Supplier’s notice (by web posting or otherwise) or the end of the Subscription Services associated with the Supplier software. Notwithstanding the foregoing, if Supplier software is licensed to Customer under separate terms, then Customer’s use of such software is governed by the separate terms.

Customer’s right to use any part of the Supplier software that is licensed under the separate terms is not restricted in any way by this Agreement.

4. Suspension. Supplier may suspend Customer’s access to or use of the Subscription Services if it believes (a) there is a significant threat to the functionality, security, integrity, or availability of the Subscription Services or any content, data, or applications in the Subscription Services; (b) Customer is accessing or using the Subscription Services to commit an illegal act; or (c) there is a violation of the acceptable use or restrictions described herein. When reasonably practicable and lawfully permitted,

3 Supplier will provide Customer with advance notice of any such suspension. Supplier will use reasonable efforts to re-establish the Subscription Services promptly after it determines that the issue causing the suspension has been resolved.

5. Technical Support. Supplier will provide Customer with reasonable technical support services (“Technical Support”) in accordance with Supplier’s standard practice during standard business hours.

Customer acknowledges and agrees that Technical Support is intended to address specific problems experienced by Customer relating to the Subscription Services and is not intended to train Customer’s employees or to support third-party products (“Other Assistance”). Supplier will advise Customer during a support session if Supplier considers such request to constitute Other Assistance. If the problem reported by Customer to Supplier is the result of hardware malfunction (not relating to Supported Hardware where such service is specified on the SOWs) or other causes external to the Subscription Services, Supplier will advise Customer to have the hardware/network repaired. Support resulting from hardware/network problems or issues associated with third-party products or services will be billed to Customer at Supplier’s then-current hourly rates.

6. Integrations/Interfaces. Integrations or interfaces to third-party vendor systems may be available, as indicated in the documentation associated with the Subscription Services. To the extent such third-party vendor system integrations or interfaces are available, Supplier will install or make available the integrations or interfaces as agreed between the parties. Customer will act as a liaison between Supplier and any third-party vendor(s) with which the Subscription Services will integrate or interface.

Customer will have its third-party vendor available at the time that Supplier is scheduled to connect the integration or interface and to assist with such connection, as required by Supplier. Transactions processed by a third-party vendor system may be subject to separate licensing requirements. Customer acknowledges and agrees that it has the sole obligation to obtain, or cause its third-party vendor to obtain, all such licenses.

7. Customer Development and Enhancement Requests. This Agreement does not include any programming services for custom development or modifications. Such work, if negotiated and agreed to between Supplier and Customer, will be the subject of a separate agreement for development services between the parties. Customer further acknowledges that the Subscription Services are a major and valuable asset of Supplier's business and, as such, Supplier will have complete control of the design and development of the Subscription Services, including with respect to any enhancements and modifications. Therefore, Supplier has the right, and sole discretion, to reject any request for enhancement or modification to the Subscription Services by Customer.

8. Professional Services. Supplier will provide Customer with the Professional Services, if any, set forth in the SOW (“Professional Services”). Subject to what is detailed in the SOW, such Professional Services will be scheduled as mutually agreed upon subject to Supplier's availability following receipt by Supplier of the signed Agreement and any related deposit. If Customer requires rescheduling of confirmed Professional Service dates, Supplier will make commercially reasonable efforts to accommodate Customer's request and provide Customer with the next available dates based on Supplier's then-current availability. Customer will be responsible for paying for any Professional Services that have been scheduled and confirmed between Customer and Supplier if canceled or rescheduled by Customer less than thirty (30) calendar days prior to the commencement of such Professional Services, unless (and only to the extent that) Supplier is able to reschedule the resource with another customer using commercially reasonable efforts.

4 9. Payment Terms. Customer agrees to pay the fees set out in the SOW. All fees are payable in accordance with the terms set out in, and in the currency specified in Appendix 3 (Pricing and Payment Milestones). Customer will also pay for Professional Services at Supplier’s then prevailing rates, unless otherwise indicated on the SOW. For Professional Services provided on-site at Customer’s site or another Customer designated location, Customer will also be responsible for including travel, meals, accommodation, and related expenses incurred by Supplier’s employees or agents. Unless otherwise indicated on the invoice, all invoices are due upon receipt. Fees stated in the SOW are exclusive of Taxes (as defined in Section 9). Other than as provided for pursuant to Section 16 (Indemnification), Supplier does not provide credits or refunds for fees already due or paid. If Customer wishes to decrease its use of the Subscription Services after the Initial Term (to the extent service capacity or usage is limited pursuant to the SOWs)), Customer may do so after the Initial Term if Customer notifies Supplier thirty (30) calendar days in advance. If Customer wishes to increase its use of the Subscription Services (to the extent service capacity or usage is limited pursuant to the SOWs), Customer must notify Supplier in advance and pay any applicable fees upon the parties’ execution of an amendment to the Agreement.

Any invoice disputes must be initiated by Customer in good faith and in writing; Customer will be entitled to notify Supplier of any invoice dispute by the due date of the applicable invoice, after which time the invoice will be deemed to be accepted by Customer and will be due and payable. If Customer initiates a dispute about a particular invoice, any undisputed amounts charged on such invoice will continue to be due and payable. Supplier and Customer agree to use reasonable efforts to address and attempt to resolve any invoice dispute within thirty (30) days after Supplier’s receipt of Customer’s notice to Supplier regarding such dispute. For any undisputed invoiced amount that is not paid when due, Supplier reserves the right to charge, and Customer agrees to pay, a late payment fee on the unpaid balance from the due date until paid (whether before or after judgment) equal to one percent (1%) per month. If it is determined that Supplier properly charged any amount disputed and withheld by Customer, the late fee will be assessed and paid on the disputed, withheld amount.

Except for a good faith dispute as outlined above, if Customer fails to make any payment hereunder when due, Supplier reserves the right to suspend or interrupt the provision of Customer’s access to the Subscription Services (and all related services provided hereunder) until such non-payment is remedied, provided that Supplier provides Customer with five (5) calendar days advance notice (including via email notification or other form of notification via the Subscription Services) that fees remain outstanding. In such event, Supplier will not be precluded from exercising any additional remedies that might be available to it under the terms of this Agreement or otherwise.

10. Taxes. Customer is responsible for paying all taxes, levies, duties, or similar governmental assessments of any nature, including, for example, value-added, sales, use or withholding taxes, assessable by any jurisdiction whatsoever (collectively, “Taxes”) associated with Customer’s purchases hereunder. Supplier is solely responsible for taxes assessable based on Supplier’s income, property, and employees. If Supplier has a legal obligation to pay or collect Taxes for which Customer is responsible under this Agreement, the appropriate amount will be computed based on Customer’s address listed herein and invoiced to and paid by Customer, unless Customer provides Supplier with a valid tax exemption certificate authorized by the applicable competent authority in the relevant jurisdiction (or such other form of confirmation supplied for the same purpose) at least five (5) business days prior to the due date of the applicable Supplier invoice. All fees are payable in full and without reduction or withholding for Taxes. If, for whatever reason, Customer is required by law to withhold any Taxes from fees payable hereunder, Customer will gross up its payments to Supplier so that Supplier receives the fees in full and free of any such deductions. Customer will, upon request of Supplier,

5 provide to Supplier proof that Taxes have been paid, if such payment is not made to Supplier directly. If Supplier pays any costs or expenses incurred in relation to any import duties, customs, formalities, permissions, or other requirements, then Customer will promptly reimburse Supplier for all such amounts in full.

11. Third-Party Components. To properly use the Subscription Services, Customer agrees it may require use of certain third-party components which, if any, will be listed in the SOW (“Third-Party Components”). Subject to the SOW, Customer acknowledges that Supplier will have no responsibility for the implementation or operation of such Third-Party Components. Supplier may provide certain notices to Customer in the program documentation, readmes or notice files and that apply to such third-party technology. The existence of a notice does not affect the terms under which third-party technology is licensed to Customer.

12. Ownership. Customer will own all right, title, and interest in and to any data, including digital files and unstructured content objects, entered or submitted by Customer by means of the Subscription Services (the “Customer Data”). At all times, Supplier will own all intellectual property rights (including copyright) in and to (i) the Subscription Services; (ii) any software (other than any Third-Party Components) to which access may be provided by means of the Subscription Services; (iii) all upgrades, enhancements, and modifications to the Subscription Services; and (iv) any software, applications, inventions, or other technology developed in connection with the Subscription Services. Supplier or its Suppliers retain all ownership and intellectual property rights to the programs, methodologies, Subscription Services, and Supplier content.

13. Customer Input. Supplier will have a royalty-free, worldwide, transferable, sub-licensable, irrevocable, perpetual license to use or incorporate into the Subscription Services any suggestions, enhancement requests, recommendations or other feedback provided by Customer, its employees, contractors, and agents relating to the operation or functionality of the Subscription Services (collectively, “Customer Input”). Supplier will have no obligation to incorporate Customer Input into the Subscription Services.

Customer will have no obligation to provide Customer Input.

14. Customer Responsibility. Customer agrees to name a Project Manager/System Administrator with responsibility for taking reasonable action to ensure a timely implementation set-up and training by Supplier of Customer staff. Customer is responsible for assigning security access to the Subscription Services and data of the Customer. Customer understands that satisfactory performance of the Subscription Services requires: up to date Microsoft Edge, Chrome, Firefox, or similar modern browsers. Customer is responsible for providing the hardware and appropriate software and operating systems specified herein.

15. Use of Logo for Promotional and Marketing Materials. Unless indicated otherwise in the applicable SOWs, Customer provides Supplier with permission to use its trademark, logo, and trade name (“Branding”) within Supplier’s promotional and marketing materials. Supplier is granted no other right to the Branding and acknowledges that it will not gain any proprietary interest in the same. Supplier is under no obligation to make use of, or to provide compensation for, the right or permission granted by Customer to the Branding. Supplier will be the exclusive owner of all right, title, and interest, including copyright in its promotional and marketing materials. The permission to use the Branding may be terminated at any time by Customer by providing Supplier with thirty (30) days’ prior written notice.

Upon such termination, Supplier will refrain from future use of the Branding; however, Supplier may continue to distribute and use the promotional and marketing materials where Customer’s Branding

6 has been previously printed prior to the notice of termination and where such placements cannot be discontinued or altered without Supplier incurring any losses.

16. Confidentiality.
(a) Definition of Confidential Information. “Confidential Information” means all information disclosed by a party (“Disclosing Party”) to the other party (“Receiving Party”), whether orally or in writing, that is designated as confidential or that reasonably should be understood to be confidential given the nature of the information and the circumstances of disclosure. Customer’s Confidential Information includes Customer Data; Supplier’s Confidential Information includes the Subscription Services and information regarding features, functionality and performance of the Subscription Services; and Confidential Information of each party includes the terms and conditions of this Agreement and all SOWs (including pricing), as well as business and marketing plans, technology and technical information, Intellectual property, trade-secrets, product plans and designs, and business processes disclosed by such party. However, Confidential Information does not include any information that (i) is or becomes generally known to the public without breach of any obligation owed to the Disclosing Party, (ii) was known to the Receiving Party prior to its disclosure by the Disclosing Party without breach of any obligation owed to the Disclosing Party, (iii) is received from a third-party without breach of any obligation owed to the Disclosing Party, or (iv) was independently developed by the Receiving Party. Any combination of information which comprises part of the Confidential Information shall not be deemed to be exempt from the obligations of confidentiality merely because individual parts of that information were publicly known, in the Receiving Party’s possession, or received by the Receiving Party, unless the combination itself was publicly known, in the Receiving Party’s possession, or received by the Receiving Party. (b) Protection of Confidential Information. The Receiving Party will use the same degree of care that it uses to protect the confidentiality of its own confidential information of like kind (but not less than reasonable care) and will: (i) not use any Confidential Information of the Disclosing Party for any purpose outside the scope of this Agreement; and (ii) except as otherwise authorized by the Disclosing Party in writing, limit access to Confidential Information of the Disclosing Party to those of its and its affiliates’ employees and contractors who need that access for purposes consistent with this Agreement and who have signed confidentiality agreements with the Receiving Party containing protections no less stringent than those herein. Neither party will disclose the terms of this Agreement or any SOWs to any third-party other than its affiliates, legal counsel, and accountants, without the other party’s prior written consent, provided that a party that makes any such disclosure to its affiliate, legal counsel, or accountants will remain responsible for such affiliate’s, legal counsel’s or accountant’s compliance with this Section 14. (c) Compelled Disclosure. The Receiving Party may disclose Confidential Information of the Disclosing Party to the extent compelled by law to do so, provided the Receiving Party gives the Disclosing Party prior notice of the compelled disclosure (to the extent legally permitted) and reasonable assistance, at the Disclosing Party's cost, if the Disclosing Party wishes to contest the disclosure. If the Receiving Party is compelled by law to disclose the Disclosing Party’s Confidential Information as part of a civil proceeding to which the Disclosing Party is a party, and the Disclosing Party is not contesting the disclosure, the Disclosing Party will reimburse the Receiving Party for its reasonable cost of compiling and providing secure access to that Confidential Information.

7 17. Data.
(a) Customer will have sole and exclusive responsibility for the accuracy, quality, integrity, legality, reliability, and appropriateness of all Customer Data, such responsibility also extends to the means by which the Customer Data was acquired. Customer will not send or store infringing, obscene, threatening, libelous or otherwise unlawful, or tortious material, including material that is harmful to children, violates third-party privacy or intellectual property rights, includes malicious code, or that will interfere with the integrity of the Subscription Services, or any other services or Products provided or contemplate herein.
(b) Apart from what limited information and data is strictly required for Supplier to perform or provide the Subscription Services, Professional Services, or Products, Customer agrees that sensitive personal data may not be submitted to the Subscription Services, including images, text, sounds or other data containing or revealing government-issued identification numbers; financial information (such as credit or debit card numbers, any related security codes or passwords, and bank account numbers); racial or ethnic origin, political opinions, religious or philosophical beliefs, trade-union membership, information concerning health or sex life; information related to an individual’s physical or mental health; and information related to the provision or payment of health care.

Additionally, Customer may not use the Subscription Services to create or analyze biometric identifiers such as face prints, voiceprints, fingerprints, or scans of eyes, hands or facial geometry, nor may Customer use the Subscription Services for the purposes of analyzing, profiling or targeting someone’s racial or ethnic origin, political opinions, religious or philosophical beliefs, trade union membership, age, gender, sex life, sexual orientation, criminal convictions, disability, health status or medical condition. Customer will not use the Subscription Services to (a) store or transmit infringing, libelous, or otherwise unlawful or tortious material, or to store or transmit material in violation of third-party rights, or (b) store or transmit malicious code (e.g., code, files, scripts, agents, or programs intended to do harm, including, viruses, worms, time bombs, and Trojan horses).
(c) Unless specifically stated otherwise in an SOW Supplier does not want nor does it require, nor will Customer provide or disclose (i) personal information or data, or personal identifiable information or data (each individually or together “PII”), as defined in the California Consumer Privacy Act (CCPA), and other applicable legislation; (ii) personal protected health information, as defined by the Health Insurance Portability and Accountability Act (HIPAA) and other applicable legislation, (“PHA”); or (iii) personal financial data, or payment card data or information (“PCI”) as defined by the Gramm-Leach-Bliley Act, the Payment Card Industry Data Security Standards, or other applicable legislation or standards, to the Subscription Services, or for any other reason specified in or contemplated by this Agreement or the services or Products provided herein. When applicable, Customer must categorize and identify its PII or PHA in accordance with ISO 27001, NIST, or an equivalent standard of equal rigor before sending it to Supplier. Supplier is not a payment processor, and as such is not subject to compliance with PCI standards; Supplier does not warrant that the Subscription Services, or any other services or Products supplied in this Agreement will be compliant with payment card industry requirements. Supplier will not accept any liability in connection with payment card industry, PII, or PHA, compliance.

8 (d) Each party agrees that, in the performance of its respective obligations under this Agreement, it will comply with the provisions of applicable data protection law to the extent it applies to each of them. The parties further agree that Customer is the data controller in respect of any personal data that Supplier processes while providing services for Customer. Accordingly, Supplier agrees that it will: (i) only process Customer’s personal data to provide the Subscription Services, Professional Services, or Products, or in accordance with any lawful instructions reasonably given by Customer from time to time; (ii) implement reasonable appropriate technical and organizational measures to protect personal data against unauthorized or unlawful processing and accidental destruction or loss; (iii) include provisions which are equivalent to those in this Section 17 in any contract with any subcontractors who will process personal data; (iv) take reasonable steps to ensure the reliability of its employees who have access to the personal data; and (v) as soon as reasonably practicable refer to Customer any requests, notices or other communication from data subjects, data protection or other law enforcement authority, for Customer to resolve. (e) Where Customer is subject to EU data protection laws, Customer acknowledges and agrees that Supplier may transfer personal data which it processes on Customer’s behalf to countries outside the European Economic Area to provide the Subscription Services and carry out Supplier’s other obligations under this Agreement.
(f) Supplier will notify Customer as soon as reasonably possible upon discovery of any data security incident impacting Customer Data. Supplier will not be responsible for any loss or damage to Customer Data unless such loss or damage was caused solely, entirely, and directly by Supplier. (g) Customer grants to Supplier a royalty-free, non-transferable, non-exclusive license for the term of this Agreement to use Customer Data to the extent necessary to perform the Subscription Services or Professional Services, or to deliver Product. Notwithstanding anything to the contrary, Supplier will have the right to collect and analyze data and other information relating to the provision, use, and performance of various aspects of the Subscription Services and related systems and technologies (including, without limitation, information concerning Customer Data and data derived therefrom), and Supplier will be free (during and after the term hereof) to (i) use such information and data to improve and enhance the Subscription Services and for other development, diagnostic and corrective purposes in connection with the Subscription Services and other Supplier offerings, and (ii) disclose such data solely in aggregate or other de- identified form in connection with its business.
(h) SUPPLIER RESERVES THE RIGHT AT ITS SOLE DISCRETION TO DELETE, AT ANY TIME AND FOR ANY

REASON, ANY CONTENT, APPLICATION OR SOFTWARE IN THE SUBSCRIPTION SERVICES, INCLUDING BUT NOT LIMITED TO ANY CUSTOMER DATA. ANY CONTENT, APPLICATION OR SOFTWARE MAY BECOME PERMANENTLY LOST IF SO DELETED. Supplier has no obligation to monitor the Customer Data, but at its sole discretion, may access, monitor, or review Customer’s activity, and the Customer Data in the Subscription Services. Customer has sole responsibility for the accuracy, quality, integrity, legality, reliability, appropriateness, and ownership of all Customer Data.
(i) Customer will obtain at its sole expense, any rights, and consents from third-parties necessary for the Customer Data and any other third-party content or vendors’ products provided by Customer that Customer uses with the Subscription Services, including such rights and consents as necessary for Supplier to provide the Subscription Services.