Electronic deposit using Remote Deposit Capture
For images that can’t be forwarded for collection because they don’t meet Check 21 requirements, we send an email notification to you on the next business day.
5. Is the deposit adjustment documentation different from cash deposits and check deposits? What is the minimum adjustment amount? How soon would support documentation of a deposit discrepancy be provided to the City and in what form is the notification provided? Deposit adjustments vary by channel—branch, check or vault.
We process all adjustments regardless of dollar amount. We internally manage adjustments below a predetermined sundry amount without posting the corrected entries and related fees to your account.
Both vault and branch transactions are subject to the $2.00 sundry amount.
The deposit adjustment information provided to you includes: the deposit ticket date, credit date, verified date, declared deposit amount, verified deposit amount, denominational breakdown and any adjustments along with the associated reason code.
Please see the below for adjustment information.
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Cash (Branch)
Branch cash adjustments are available by mail and are reported on the online portal and the bank statement.
The mail advice contains the following data:
● Account number
● Location number
● Customer name and address on the deposit ticket
● Credit date
● Declared total deposit
● Amount declared cash deposit amount
● Verified cash deposit amount
● Cash adjustment amount
● Processing branch ID number and processing branch name Check
Check deposit adjustments may originate from either the system that processed the initial deposit or from Adjustments Operations.
Check deposit adjustment mail advices from the deposit system contain the following data:
● Account number
● Location number
● Transaction reference number
● Customer name and address
● Credit date
● Verified date
● Declared deposit amount
● Adjustment amount
● Detailed adjustment reason with explanation (supporting documentation is included with some error types)
● Check processing location ID and name
● Processing teller ID number and approver teller ID number 379
Section F – Deposit Activity | 62 |
Refer to the previous question (#4) for timing and delivery method information regarding support documentation for deposit discrepancies.
6. What are the cut-off times for deposits at the bank’s local branch and at the bank’s Processing Center to ensure same-day credit? Where is the Processing Center/Cash Vault located? Will the City deal directly with the Cash Vault on deposit adjustments or with a local representative? You will work directly with your CSA for any deposit adjustments or questions.
The City receives same-day funds availability for cash deposits, incoming wire, ACH transactions and checks drawn on us. The cutoff time for each transaction is detailed below.
Deposit cutoff times
Cash deposits
Branch deposits Times vary by location, but are typically between 5:00 p.m. and 6:00 p.m. branch time.
Branch night drop
deposits
7:30 a.m. branch time.
• Select branches offer a second opening in the early afternoon. Deposit cutoff times are clearly indicated on the face of each depository, as required by law.
ATM deposits 8:00 p.m. PT.
• Deposit cutoff times are clearly posted at each ATM.
Vault We recommend you use our Los Angeles vault location. Our Los Angeles vault has the following cutoff times:
• Cash-only deposit: 8:00 p.m. local time of the vault
• Mixed (cash and check) and check-only deposit 5:00 p.m. local time of the vault We regularly review vault activity as a business practice, which may result in openings, closings and changes to cutoff times.
Coin deposits greater than $10.00 may be credited to your account on a delayed basis.
Check-only deposits
Remote deposits Remote Deposit Capture (including mobile): 7:00 p.m. PT, with same-day ledger availability based on endpoint.
• With ACH: 7:00 p.m. PT for same-day ledger availability based on endpoint. All transactions cleared as ACH debits are fully available the next business day.
Electronic deposits
Wire transfers Wire transfers are credited and available in near real time throughout the day. The cutoff time for incoming credits is the close of Fedwire, which is 3:45 p.m. PT.
ACH For ACH credits, you receive availability (memo post) for ACH collection on opening of the business day on the settlement date. A hard post of the funds happens at the end of the business day.
For ACH debits, any same-day originations are settled at the end of the business day.
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The City can contact your designated CSA for assistance with deposit adjustments.
7. Please describe the bank’s returned item handling and notification procedures. Is an automatic re- clear option available? How long does it take for returned items to be sent to the City and is what form is the notification provided?
Your return item handling instructions are maintained within a comprehensive database at the bank. During the check clearing process, the paying bank may return deposited checks for a number of reasons, including non-sufficient funds (NSF), uncollected funds, stop payment, account closed, etc. We route most returned items through the Federal Reserve System to regional return processing areas.
After processing the City’s return items per your handling instructions, the return system generates a debit to the designated demand deposit account (DDA). We match the actual return items to a return item advice and mail them to the DDA statement address via First Class U.S. mail. The return advice lists the dollar amount and the reason for return for each item.
Non-standard options—return items
To meet the City’s return item needs, we offer a variety of options, including posting options, delivery options, and redeposit options, and automatic redepositing and options for such, as described in detail.
During your account implementation process, your onboarding specialist works with you in setting up the options to assist you in managing your returned items.
Return item advice and options
General
Advices are generated throughout the day and sent via First Class U.S. mail. Advices contain actual return items and the following information:
• Processing date (debit date)
• Advice number
• Deposit account bank number
• Deposit account number
• Dollar amount of each return
• Return reason for each return
• Internal bank sequence number per each
return
• Total debit amount for the advice
Choose the following optional information to include on the advice:
• Alternate chargeback account bank number: Receive returned items and the accompanying advice at an address different from the account statement address • Location number: Receive the location (up to 10 digits) number for return item reporting:
Deposit tickets to include the location number in the MICR line Endorsement stamp for each location to include that number • Maker name for each return: As required for RCK, receive check writer’s name (data-keyed by the bank up to 12 characters)
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Return item advice and options
Advice options
• Standard advice: Lists up to eight returned checks
If location processing is requested, advices produced by location If requested, the maker’s name (first initial and last name) included on the advice • Cash letter advice: Lists all return checks processed during the current cycle, multiple advices may be created during the processing day
• Extended data advice: If extended data keyed, additional fields appear on advice • Single item advice: Each return appears on a single advice Posting options
• Single item posting: Each return posts individually to your account • Advice-level posting: The account debits at the advice level • End-of-day posting: All returns for the day’s processing post as a lump sum to the account Additional delivery options
• Alternate mailing address: Returned items and the accompanying advice sent to an address different from the account statement address
• Expedited delivery: Return items and accompanying advices via an overnight delivery service, and you supply the billing account number, contact name, preaddressed labels and envelopes • Duplicate advice: Mailed copy of the return item advice at a second address, with expedited delivery also available
• Duplicate check copy: Mailed copy of the actual returned item at a second address, with expedited delivery also available
Non-standard options—automatic redeposits
The City’s eligible checks returned for the first time can be automatically redeposited. We can redeposit all eligible returned checks, only checks under a certain dollar amount or only checks greater than or equal to a certain dollar amount. Collection float for the redeposited items posts to the City’s account.
Automatic redeposit and options
Redeposit posting and notification
We provide three options for redeposit posting and notification:
• Option 1: The redeposit does not appear on either advice or post to the account • Option 2: The redeposit appears on advice and posts as debit and credit to the account • Option 3: The redeposit appears on return item advice but does not post to the account 382
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Automatic redeposit and options
Additional information
• Multicurrency deposited items are not eligible for redeposit • Returned foreign currency checks are converted to U.S. dollars on the date the bank receives notice of dishonor
Online image viewing via our online portal
The online portal allows the City next-day access to return and redeposit item information and images. This solution allows your authorized users to electronically retrieve returns and redeposited item images. Our portal provides secure 24-hour, high-speed online access to your return and redeposit images.
To find an image, run a Returns and Exceptions Report or the Balance and Transaction Report on the online portal. The front and back of the returned item is available. Then click on the icon for the return item image to view, print or export the image.
Return item notification and reporting
The City receives email notification as text-only or as text with image delivered via encrypted secure email.
The email message contains the return item detail, and a separate attachment contains the returns images (front and back).
We offer flexibility:
● Group email addresses
● Choice of returns only, redeposits only, returns and redeposits, items over a certain amount ● Timing for email notification, such as immediate, hourly, end-of-day Information reporting
View all return debits via our online portal. The data available depends on the posting option—single item or lump sum—that you select.
Current day
Throughout the day, your available balances are reduced to account for the end-of-day posting of returned items and for redeposit float
Each item is a reportable transaction and contains summary information: transaction type, check number and dollar amount. We process all returned items received during the day, which may be after the end of your business day.
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Prior day
Prior-day reports are typically available by 7:00 a.m. local time of account domicile. Single-item posting data includes dollar amount, return reason, and, if enabled, location number and maker name.
We include the following data, if available: check number, original deposit amount and original deposit date.
Lump-sum posting data includes dollar amount, location number (if enabled), advice number and number of items included in the debit.
Prior-day returns data is also available via BAI2 transmission, which includes the same data as described above.
Below are illustrative examples of how each type appears in prior-day information reporting, on the bank statement and in the BAI2 file. Actual data reported and record layouts vary depending on the return service options you select.
Posting
examples
Prior-day reporting, bank statement and BAI2
layout Comments
Single item
posting with
some optional
fields
DEP ITEM RETURN
DEPOSITED ITEM RETURNED NSF 2nd
00289 MR MAKER
#OFITEMS00001CK#00000131
DEP AMT000000024325960DEP DATE020110
CK AMT0000058549
16,555,58549,,000000000000,/
88,DEPOSITED ITEM RETURNED NSF 2nd 00289
88, MR MAKER # OF ITEMS00001CK#00000131DEP
AMT
88, 0000024325960DEP DATE020110CK
AMT0000058549
• Return Reason = NSF 2
nd
• Store/Location Number = 00289 (if
enabled)
• Maker name = MR MAKER (if
keyed)
• Check Number = 131 (if available)
• Deposit Amount = $243,259.60 (if
available)
• Original Deposit date = 020110 (if
available)
Lump-sum
posting with
location number
DEP ITEM RETURN
DEPOSITED ITEM RETURNED 258574 SUB289
# OF ITEMS00003
___________________________________________
__
16,555,2210551,,000000000000,/
88,DEPOSITED ITEM RETURNED 258574
88,SUB289 # OF ITEMS00003
• Advice # = 258574
• Lump sum posting will still be at the
store/location level = 0000000289
• # of items = 3 (total number of items
on advice)
The Returns and Exceptions Report is available through our online banking platform. This functionality lets the City choose between a preformatted report and a data file. 384
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The following information is available for prior-day returns: depository account number (or alternate account number), processing date, original deposit date, check amount, MICR line information of the item (RT number, account number and check number), return reason code, disposition code (return, redeposit or RCK conversion), location number (if used) and maker name (if used).
Returns and Exceptions Report
Figure 6
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Section F – Deposit Activity | 68 |
8. The City utilizes a desktop deposit scanner to deposit most of its checks. What is your dollar amount limit for desktop/remote deposit? Is the City required to use specific equipment for this, or is our current desktop scanner model (TellerScan TS240) compatible with your system? We place no limits on number of deposits per day. Checks are scanned in batches and the City may create multiple batches throughout the day.
Equipment
We recommend either the Panini or the Epson product line depending on the items being captured.
The Panini EverneXT is generally used for check only scanning, and the Epson DS 770 II is used for checks and documents.
The City can purchase and/or use your own scanning equipment as long as it meets the supported scanners requirements. For a current list of our supported scanners and the requirements, please visit https://www.jpmorgan.com/solutions/treasury-payments/remote-capture-resource-center
9. If the City is required to purchase new equipment that is compatible with your system, please provide any cost and/or credit associated with the required purchase.
After your remote capture service implementation, the City will be able to purchase scanners with your transition credit. Our Remote Deposit Capture Resource Center site provides a link to the vendor site where you place your order. Although not required, the vendor also offers compatible endorsement stamps. 386
Section G – Wire Transfers | 69 |
Section G – Wire Transfers
The City currently transacts outgoing domestic wire transfers online and receives incoming domestic wires.
1. Please describe the bank’s online wire transfer capabilities (e.g., templates, one-time wires, two-party approvals, etc.) What is the deadline for initiating domestic wire transfers to ensure same-day processing?
Our online portal provides you with a complete range of funds transfer services supporting U.S. dollar and multicurrency payments. Our solution supports wires (Fedwire and CHIPS), book transfers, drafts, account transfers and U.S. drawdown transaction initiations using both predefined (repetitive) templates and free-form formats. The deadline for initiating domestic wires transfers for same day processing is 3:15 p.m.
PT for a Fedwire and 4:15 p.m. PT for a book transfer (internal). Additional times are listed in the cutoff times section below.
Receive a client confirmation number immediately upon release to the funds transfer processing platform.
Confirmation numbers are accessible using the cash reporting features of the banking portal.
Future-date capability is available, supporting 365 calendar days for same-currency wires initiated from U.S. accounts. We also support multibank payments, where you initiate wires from non-J.P. Morgan accounts.
Payment initiation via the internet
Our online portal makes it easy to initiate and manage transactions with the Payments functionality, a fully integrated function within the banking platform.
Templates
J.P. Morgan Access provides for a common set of intuitive templates for every payment method. For example, the City easily creates beneficiary templates with lockable and editable fields to set up recurring/repetitive payments.
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Our online portal offers two kinds of templates to support the setup of repetitive wires.
Standard templates
Standard templates (City-verified, repetitive instructions) are controlled by you and are immediately available for use once approved and activated by your authorized users. You must supply the amount and value date, and may change fields that are eligible to be edited, such as payment details.
Enhanced templates
Enhanced Templates are setup and approved by the City but have the added feature of being verified and activated by the bank prior to use. Bank activation of these templates is usually a 24-48 hour turnaround, after which the template is available for use. With enhanced templates you supply only the amount and value date. Depending on the payment method and the account, you can also enter between one to four lines of payment details, as well as optional information on regulatory reporting and instruction code tabs.
Controls
J.P. Morgan Access allows complete flexibility for the City to designate the rights of each user on the platform. This includes comprehensive and configurable user entitlements, limits and approval workflow to provide optimal control. Services available accommodate a wide range of security options, including dual control among users and daily or transaction limits.
You can help reduce the risk of fraud or compromised data by separating duties, accounts and approval workflow. Your security administrators are the only individuals able to assign users with transaction initiation privileges.
Standard security administrator model
Figure 7
*The City may waive the requirement that a security administrator cannot make a change to their own profile providing a second security administrator approves those changes.
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Section G – Wire Transfers | 71 |
Cutoff times
Payment/receipt processing operates from 6:00 p.m. PT each Sunday through 4:00 p.m. PT each Friday, excluding U.S. Federal holidays. We provide our clients with generous cutoff times to enable same-day execution of their payment instructions by actively participating in the extended CHIPS and Fedwire operating hours.
USD clearing opens on Saturdays at 7:00 p.m. PT for Monday value date processing of book transfers initiated through the weekend and Monday, if also a holiday. Clients will have the ability to process their U.S. dollar book transfer straight through payments during these additional hours; however, repaired payments are delayed until the normal operating hours of the FED and CHIPS.
Timeframes are outlined below. Please note, payments requiring repair have a cutoff time 30 minutes prior to the times stated below. Payment instructions received after these cutoff times are completed on a reasonable-effort basis.
The cutoff times for wire transfers originated via the internet are as follows:
● Fedwire: 3:15 p.m. PT
● Book transfer/internal: 4:15 p.m. PT
● Drawdown (via Fedwire): 2:30 p.m. PT
2. What safeguards and security measures does the bank have in place to protect the City against fraud or unauthorized wire transfers?
Helping the City prevent wire transfer fraud on your accounts is a high priority for us. In addition to our online portal security features, the administration functions and implementation options offer you the ability to choose settings and features that help prevent fraud, including:
● We use multi-layered security designed to protect your data and transactions ● J.P. Morgan Access automatically prevent a single user from performing all actions (create, approve and release) on a single payment, even if the user is entitled to create, approve and release ● Our online portal provides two-factor authentication via RSA SecurID® token technology for those functions that demand an extra level of security
● Portable Security Transaction Protocol (PSTB), a patent-pending technology developed by us, uses RSA SecurID devices to digitally sign transactions and provide a level of security formerly available only using digital certificates
● The City can set up our online portal with strict controls over user access to functions and accounts, helping to enforce compliance with internal audit requirements while enhancing security; some of the available fraud prevention options include:
Enabling IP filtering to restrict access by limiting authorized users' ability to log on from only IP addresses you designate
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Section G – Wire Transfers | 72 |
Customizing the payment approval process by creating rules that determine the number and identity of approvers for different types of transactions, including separate approval rules for repetitive templates and free-form wires, as well as the order in which that review must occur Separating duties, accounts and approval workflows, the City can help reduce the risk of fraud or compromised data; your security administrators are the only individuals able to assign users with transaction initiation privileges
Limiting each user to a single, designated computer
Requiring transaction and daily aggregate limits at the account and user level as a security measure to help reduce losses associated with erroneous or unauthorized transactions Creating templates with payment details to prevent wires from being initiated and executed without prior approval of the recipient bank account numbers and template details
3. What is the process for authorizing wire transfers, and are there any limits or approvals required? The City establishes user entitlements. Your security administrators authorize users to create, modify, delete, approve and/or release wire transactions, as well as create, modify, delete, approve and activate predefined templates.
We require at least one approver for free-form wires or those initiated via repetitive templates.
J.P. Morgan Access automatically prevents a single user from performing all actions (create, approve and release) on a single payment, even if the user is entitled to create, approve and release.
At the point of release, the application requires two distinct users are involved in the payment life cycle, which includes the creation, approval and release of the payment initiated. Even if a user has all three entitlements, the user will still not be able to take all three actions on a payment on their own.
Two distinct users are also required in the creation, approval and activation of any underlying template.
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Section G – Wire Transfers | 73 |
Using the administration functions within the Manager menu in our online portal Customize the payment approval process by creating rules that determine the number and identity of approvers for different types of transactions, including separate approval rules for repetitive templates and free-form wires, as well as the order in which that review must occur. The elements of an approval rule are:
● Payment Type
● Payment Creation Method
● Accounts/Account Groups
● Templates
● Transaction Amount Limit
● Approval Type (Sequential or Non-Sequential)
● Number, Type and Priority of Approvers
Categories enable you to classify users, tying approvals to a group or job function rather than a particular individual.
391
Section H – Automated Clearing House (ACH) Service Requirements | 74 | Section H – Automated Clearing House
(ACH) Service Requirements
The City utilizes direct deposit services for bi-weekly payroll for the City. Approximately 100% of the City’s employees take advantage of the direct deposit service. Please address the following:
1. Describe the bank’s direct deposit services, including the software requirements and transmission options available.
Your employees can receive automatic electronic payroll payments to a designated checking or savings accounts when using our ACH service. No special software is required.
Typically, one or two days in advance of the designated payday, you send us a file containing the total amount to be paid electronically to your employees’ designated accounts. For an additional charge, payroll transactions may be initiated with same day settlement, provided cutoff times are met. The offsetting amount is charged to your designated account with us on the day of settlement (payday).
Direct deposit options
Origination method
Larger volume We recommend you use direct send transmission. You create a transaction file in standard Nacha format using industry standard applications. You will then transmit the file to us through a common protocol such as SFTP. The transmission is encrypted and sent to us for final ACH processing.
Lower volume We suggest using our online portal. The banking portal allows your authorized users to enter the required ACH payment details in the fields provided as free-form payments or by initiating using a pre-approved template. In addition to initiating payroll, you can use the banking portal for ACH and wire disbursements and concentration.
Transaction type
Prearranged payment
and deposit (PPD)
Supply PPD files for next-day credits. For your employees to receive funds as available balances for ATM withdrawals on payday, you must deliver the file to us by 7:00 p.m. PT two business days prior to the settlement date. The file will be processed at the earliest ACH processing cycle so that the receiving depository financial institutions can post the credits to the employees’ accounts by open of business on payday.
Same-day ACH credits Send same-day ACH credits. All ACH credit transactions, except for international transactions (IATs) and transactions above $1,000,000 are eligible for same-day processing.
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Section H – Automated Clearing House (ACH) Service Requirements | 75 |
2. Do you offer ACH services for both credits (e.g., payments to employees, vendors) and debits (e.g., collections, payments from customers)?
Yes. We offer ACH services for both credit and debit origination.
3. What ACH file formats are supported (e.g., NACHA-compliant formats), and can your system integrate with the city’s financial software (Finance Enterprise by Central Square) for seamless ACH processing?
We support the industry standard Nacha format via file import on our online portal or direct transmission with host-to-host connectivity.
You may also use the import mapping utility to create maps when you want to import you proprietary delimited or fixed-width file for U.S. ACH payments into our online portal.
4. Is there direct support for file testing?
Yes. We provide direct support for testing the ability to submit ACH files via file transmission and our online portal, J.P. Morgan Access.
The City’s dedicated onboarding specialist serves as your primary point of contact and coordinates the implementation of your services. A technical implementation specialist will:
● Coordinate with the onboarding specialist to coordinate setup activities for your data file transmissions.
● Assemble a team of production and systems experts to work closely with you throughout the process.
● Presents connectivity options.
● Provides set up and tests the connectivity link, and sends test files.
5. Discuss screening measures that the bank uses to minimize errors on files sent to the bank. Describe the process and timing available for file/error correction.
We have an 11-month duplicate detection capability; any file transmitted with the same Origin ID, Company ID and effective date of the first batch within the file, and exact item count and amount will be rejected.
Additionally, if our system determines that the file received is a duplicate, we will call you the same day to verify.
Acknowledgements and confirmations are provided for successfully processed files, as well as files with errors identified during processing. Corresponding returns and rejects are provided through the same connectivity used for transmission. Our files are transmitted to clients with clear markers indicating whether a problem has occurred in processing. This allows for quick resolution and helps prevent payment delays.
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Section H – Automated Clearing House (ACH) Service Requirements | 76 | We will respond to each input file with a level one confirmation. A level one response consists of file level validation and control information. It will also include J.P. Morgan front-end transaction validation. Each accepted transaction will be reflected with a confirmation record. Each rejected transaction will be reflected with a confirmation and reject record. A file trailer will also be sent. Additional levels of acknowledgements will be provided where applicable (FX transactions, ASC X12 processing etc.).
For J.P. Morgan Access uploads, you will receive a status of the file and whether there were any failed items.
ACH Imports
Figure 8
6. Describe your bank’s prenote process to verify new direct deposit account numbers, and its length of time.
Prenotifications are no longer required, so it’s up to the originator to choose if they’re necessary. We recommend:
● Using prenotifications if you have time to respond to corrections or errors generated by a notification of change on the prenotification and correct the information prior to the first payment ● Prenotifications be originated at least three banking days prior to live-dollar origination, but we can accommodate any timing scenario
The prenotes are charged as standard ACH transactions.
As an alternative to using prenotes, the City can benefit from using our Account Validation Service (AVS).
AVS provides an electronic response for each account inquiry. The response includes information about the account status and ownership. Please see Section S – Service Enhancements for a complete overview of this service.
7. The City deposits Payroll funds to employees at 12:01AM every other Thursday. Please indicate the submission deadline of ACH files to meet this deposit deadline.
Typically, one or two days in advance of the designated payday, you send us a file containing the transactions to be paid electronically to your employees’ designated accounts.
Cutoff times for ACH initiation and additional details are provided below.
394
Section H – Automated Clearing House (ACH) Service Requirements | 77 | Initiation method Next-day ACH
Direct Send transmission 1,2 7:00 p.m. PT (prefund) and 7:00 p.m. PT ACH payments via J.P. Morgan Access 1 7:00 p.m. PT (prefund) and 7:00 p.m. PT
1. ACH PPDs must be received two business days in advance.
2. If later deadlines are required, this should be discussed with your relationship team.
8. The City currently makes some payments electronically (e.g., pension payments, State and Federal tax withholdings, medical benefit payments, and utilities). Describe the program used by the bank to facilitate these payments.
Depending upon your operational requirements, originate ACH payments using direct transmission or through our online banking portal.
We offer a file delivery solution that allows the City to send and receive ACH files using:
● SSL session encryption
● Browser-based file exchange (HTTPS)
● SFTP with PGP (Pretty Good Privacy) or GNUPG (GNU Privacy Guard) file encryption Our delivery methods leverage the internet and readily available software packages to make transferring files simple and secure without the added cost of proprietary software installation.
Our online portal supports manual entry, file upload and payments originated from pre-approved templates for both ACH and wire transactions. You can also use a generic tax form to create a template for U.S. ACH tax payments or to send a federal tax payment via wire.
9. Do you allow pre-authorizations for ACH payments? Do you flag unauthorized debits for approval? Please describe your process for this.
We offer you protection from unauthorized ACH items with ACH Transaction Blocking or ACH Transaction Blocking with Positive Pay. These services offer protection from third-party organizations who originate ACH transactions against your accounts.
Unauthorized debits
As discussed previously in Section C – Demand Deposit Accounts, question #8, ACH Transaction Blocking with ACH Positive Pay allows entitled users to review ACH blocked transactions, allowed transactions or all transactions prior to posting the item to the DDA account.
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Section H – Automated Clearing House (ACH) Service Requirements | 78 | With ACH Transaction Blocking with ACH Positive Pay:
● You receive an email notification every hour if ACH transactions require review Sunday through Friday starting from 9:00 p.m. PT through 6:00 p.m. PT; a reminder email notification is sent one hour before the decision cutoff time if there are unactioned exceptions ● You have until 6:00 p.m. PT (2:00 p.m. PT for same-day CTX transactions) on the effective date to submit decisions
● If a Pay or Return decision isn’t submitted by you, the default rules are applied
10. Is there a dedicated account manager or support team for ACH services, and how can the City reach them if there’s an issue or urgent need?
Yes, the City can contact your designated CSA for ACH services support.
Our Transmissions team provides support for initiating file transfer or receiving reporting via Direct Transmissions. Specialized staff is available to assist with your product and technical support for Host to Host, ACH Data Transmission issues related to file delivery, file processing, file confirmation and partner key management.
ACH transmission support is available Monday through Friday, 5:00 a.m. to 8:00 p.m. PT. 396
Section I – Investment Sweep Account | 79 |
Section I – Investment Sweep Account
The City may choose to utilize a DDA Sweep with all collected funds exceeding a designated balance swept into an investment fund.
1. Describe the types of sweep accounts offered by your financial institution that are available to maximize the City’s potential investment earnings.
Recent central bank actions have resulted in an evolving rate environment, making an optimized, flexible account structure a key component of a successful business strategy.
The J.P. Morgan Hybrid DDA combines the power of a DDA with earnings credit and an interest-bearing DDA, allowing you to earn both a competitive earnings credit rate (ECR) and interest from a single account.
This innovative solution opens the door to a simplified account structure, allows for balances to offset service fees and minimizes time spent managing investments.
How it works
The Hybrid DDA offers a solution similar to the functionality of an overnight sweep service. However, unlike an overnight sweep, 100% of the funds in this account are collateralized per California State requirements with Treasuries, enabling the City to feel secure entrusting J.P. Morgan with its public funds.
In the Hybrid DDA solution, balances earn an earnings credit allowance up to a predetermined threshold to offset bank service fees with balances above the threshold earning hard dollar interest. Thus, instead of sweeping to a separate account each night, your excess balance remains in the DDA and earns interest. Additionally, the Hybrid DDA does not have an investment cap like an end-of-day money market fund (MMF) sweep solution.
Balances up to a predetermined threshold (“the peg balance”) earn an earnings credit allowance at the proposed earnings credit rate of 2.92%. Funds up to the peg balance are used to offset bank service fees.
Balances above the peg balance threshold earn hard dollar interest at a proposed rate of 3.75%. Interest accrues daily and is paid monthly. The below illustrates how the Hybrid DDA works. 397
Section I – Investment Sweep Account | 80 |
Hybrid DDA structure
Figure 9
The peg balance can be changed at any time prior to the next billing cycle (and applied on a go forward basis) to adjust for unplanned changes in service fees (e.g., significant volume changes, service additions/deletions, to compensate for periods in which minimum balance levels fall below the peg balance amount).
Calculation of ECR and interest
The earnings credit rate and interest rate are bank managed rates that are reviewed and updated periodically by us after considering a range of factors, including the market rate environment. Using a managed rate helps maintain pricing flexibility while also helping protect you from the short-term rate volatility that could result from using an indexed rate.
The earnings credit allowance is calculated and applied on a monthly basis on the balances up to the peg balance threshold.
Monthly earnings credit allowance calculation
(Average monthly investable balance x ECR x actual number of days in month) Actual number of days in year
Hard dollar interest accrues on a daily basis on the closing daily balance above the ECR peg and is paid on a monthly basis.
398
Section I – Investment Sweep Account | 81 |
Daily interest accrual calculation
(Daily positive collected balance above the peg x account interest rate) Actual number of days in year
Sweep to money market fund
We offer both end-of-day and intraday investment sweeps to us and select third-party money market funds (MMF) helping you efficiently invest account balances, maintain liquidity and meet investment guidelines.
Investment sweep services afford competitive returns while simultaneously providing fluid integration with operating accounts.
Our sweep product offering provides you visibility of accounts and returns online through J.P. Morgan Access Liquidity Solutions, available via the online portal.
Use our breadth of services, reputation, and financial strength and stability to build upon the efficiency and value of our own cash management operation. Below, please see investment details on the sweep offering available to you.
You can combine intraday and end-of-day investments as a way to address any cash flow activity that may take place after intraday investment cutoff times.
End-of-day
Receive end-of-day sweep options with us and select third-party money market funds (MMFs) to implement an effective sweep structure. The amount invested via the sweep is determined by the available account balance at sweep time in conjunction with pre-established, sweep parameters you define.
End-of-day sweep offering
Money market funds (MMF)
Exposure The specific MMF selected; see prospectus at
Rating https://am.jpmorgan.com/us/en/asset-management/liq/ Timing Last transaction of the business banking day
Return of funds The morning of the next business day
Interest/Dividends Dividends accrue daily, paid monthly on a 365-day basis Restrictions/Comments • U.S. corporations/entities must invest in U.S.-registered funds • Non-U.S. entities may be available to invest in offshore funds subject to applicable laws, rules, and regulations
• End-of -day sweep: Investment cap established based on average stable balance See prospectus for fund details
399
Section I – Investment Sweep Account | 82 |
Set your parameters, such as target balance and sweep increments, during the initial sweep setup, and you can modify parameters by contacting Customer Service.
Highlights of end-of-day sweeps
End-of-day sweeps are based on a target balance set by you which should be maintained in the account at all times.
Benefit when balances exceeding the target are moved by the sweep system into the selected investment vehicle in increments you define:
• End-of -day collected balances that exceed the target balance are automatically invested up to the account’s investment cap. Balances above the cap may also be invested depending on availability of shares. • End-of -day sweeps are processed as the last transaction of the business day. MMFs are automatically returned the morning of the next trading day.
• For maximum flexibility, we permit sweep increments as small as $1.00. • An investment cap is established for each account based on the estimated average sweep balances.
Please refer to the table below for funds availability and cutoff times.
End-of-day money market funds availability and cutoff times J.P. Morgan fund Cutoff time
U.S. Government Money Market Fund Last transaction of the day U.S. Treasury Plus Money Market Fund Last transaction of the day 100% U.S. Treasury Money Market Fund Last transaction of the day Note: Select third-party provider funds may be available. The Prime Fund calculates its net asset value to four decimals (e.g., $1.0000) using market-based pricing and operates with a floating net asset value.
2. What sweep investments or funds are available for public agency clients? Does the fund meet the California Government Code for allowable investments?
End-of-day investment sweeps provided are below:
● J.P. Morgan Government Fund Morgan Share Class
● J.P. Morgan Treasury Plus Fund Morgan Share Class
● J.P. Morgan 100% Treasury Fund Morgan Share Class
Please note that we are not licensed to provide direct advice on whether a fund matches specific risk policies.
Typically, our approach involves providing the prospectus to the client, who then confirms if it aligns with their risk policy. However, we can certainly facilitate a review by engaging our Asset Management (AM) team.
They are well-equipped to assess and advise on whether the fund offering is consistent with your policy requirements.
Investment sweeps into J.P. Morgan’s MMFs have minimum investment balance requirements for each share class. The end-of-day sweep uses the Morgan share class. The minimum investment requirement for the Morgan share class is indicated in the following table and set forth in the fund’s prospectus. 400
Section I – Investment Sweep Account | 83 |
J.P. Morgan money market funds end-of-day share class minimum Share class Minimum investment balance
Morgan $1,000
3. What are the costs associated with sweep (monthly maintenance, set-up fees, fund expenses, transaction fees, etc.)?
The only charge is 25bps fees. There is no other monthly maintenance charge.
4. Provide historical rates on your sweep fund(s) for the past 12 months.
Money market fund (MMF) share classes are dependent on the investment amount and investment channel.
Historical rates are provided on the current fund prospectus located in the following link:
https://am.jpmorgan.com/us/en/asset-management/gim/liq/products/performance-and-yields/liquidity
401
Section J – State Activity/LAIF Transfers | 84 |
Section J – State Activity/LAIF Transfers
The City transacts State of California Local Agency Investment Fund (LAIF) transfers on a regular basis and receives State electronic payments.
1. Please describe the LAIF transfer process. Are the transfers done by telephone, email, fax, wire transfer, etc.? How is the accuracy of transfers assured? The transfer process is outlined as follows.
Transfers to LAIF
You will initiate Investment transfers to the State via our online portal and post to the State via wire transfer.
We work with government clients in the State of California to promote compliance with State procedures for LAIF investment transactions. Note that the following are general procedures, and that you are encouraged to confirm with LAIF to be sure they are in receipt of contracted instructions specific to the City:
● For same day transactions, LAIF must be contacted by 10:00 a.m. PT. ● 15 total transactions per month are allowed, which include both deposits and withdrawals. ● Transaction amounts should be in thousand dollar increments with a minimum of $5,000. ● Withdrawals of $10 million or more require at least a one-day advance notice to LAIF. ● Future-dated transactions can be requested up to 10 calendar days in advance. ● Verbal acknowledgment must be initiated by your authorized personnel prior to funds transfer.
Transfers from LAIF
Investment transfers from the State will be initiated by the City via LAIF by phone or online and posted directly through us into your designated account. LAIF transfers can be executed by the City online through the LAIF portal.
2. What is the charge per transfer to LAIF? From LAIF?
Please see Appendix 3 for our pricing proforma.
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Section J – State Activity/LAIF Transfers | 85 |
3. Does the bank have an office in Sacramento that maintains a direct DDA banking relationship with the State Treasurer’s office and the State Controller’s office? Yes, we have an office in Sacramento with a direct DDA banking relationship with the State Treasurer's Office and the State Controller's Office.
4. Is the bank an approved State of California depository? JPMorgan Chase Bank, N.A. is a qualified depository for public funds in California. We facilitate activity on behalf of municipalities with redemption and investment Local Agency Investment Fund (LAIF) transactions.
5. What is the charge for the deposit of State electronic payments? State warrants? Please refer to the pricing section of the response for any applicable charges. 403
Section K – Online Bank Processes and Information Reporting | 86 | Section K – Online Bank Processes and
Information Reporting
The City currently utilizes a web-based online system to perform a variety of processes, such as placing stop payments, wire transfers, maintenance of ACH preauthorizations, administration of account users, and accessing online balance reporting information for all accounts.
1. Please describe the bank’s online banking and information reporting system(s), including a list of all services provided.
With our online portal, the City receives a highly intuitive and easy to use, cash management solution that seamlessly integrates all treasury activities through a secure portal using a single authentication process.
Whether you keep cash in one or multiple accounts, our online portal puts critical cash management information and tools at your fingertips, and the unparalleled experience of J.P. Morgan at your service.
Advantage for the City: J.P. Morgan Access ranked #1 in payments and treasury management. 2024 Coalition Greenwich Digital Transformation
Benchmarking Study
Our service is proof of our dedication to investing in leading edge technology, product innovation and improving the client experience.
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Section K – Online Bank Processes and Information Reporting | 87 | Our comprehensive cash management system at a glance
Figure 10
Dynamic home page
It starts with Home, the home page of our online portal, where an improved user interface brings you critical information immediately upon logging onto the system.
Benefit from using a customizable dashboard home page. The difference is apparent immediately. Our home page consolidates critical information in one place.
With just one click, access urgent action items, access your accounts, recent activity, reports and statements. Transparent workflows show current status and next steps. Receive transaction information on demand. Bring the information you need together with customized cash position views.
Make the advantage yours
Users receive critical
information on the customizable
dashboard, all in one place.
Improve your experience with
every click.
405
Section K – Online Bank Processes and Information Reporting | 88 | A customizable dashboard to meet your treasury needs
Figure 11
View key information and frequently performed tasks readily available from the home page.
From Home, connect to your key information, such as Account Balances, Controlled Disbursements, Reports, Statements, Loans, Online Payment Activity and Pending Actions, through our customizable dashboard for all your treasury needs.
A combination of user entitlements and preference settings determines what each user views upon logon.
It’s easy to set a new default landing page. Establish user-defined account groups for viewing and reporting purposes.
Users can also find information quickly using robust search tools and configure a variety of system notifications that can be viewed online and via email. Additionally, your users have the ability to customize the dashboard by expanding and collapsing the view of all available information.
Your users connect to functions they need via the summary dashboard Payments Make payments via wires, book transfers, checks, ACH Checks Receive positive pay services, stop payment services, reconciliation reporting and data download
Reports View, print or download reports with balance and transaction information, cash concentration, disbursement, funds transfer and liquidity
Statements View, print or download bank, billing and liquidity statements from a central repository 406
Section K – Online Bank Processes and Information Reporting | 89 | Your users connect to functions they need via the summary dashboard Administration Save time with a powerful and innovative entitlement engine that saves time, increases productivity and controls everything users can see and do Liquidity Solutions View reports and make decisions about cash balances and cash investment positions, cash concentration structures and flows, inter-company positions and accruals Merchant Services Simplify payments reconciliation, find opportunities for improving profitability around payments, and receive alerts for quicker awareness to fraud
More Services Access a single point of entry to a wide range of additional treasury management services that includes our configurable receivables solution, Receivables Online
Our Mobile app
Our Mobile app delivers features you need in today’s fast-paced environment to access banking information and perform tasks on the move.
Secure and easy sign in
Sign in is simple, using your same credentials for the online portal and Mobile.
Password-only users can choose to enable device biometrics if their device is supported. Security administrators can restrict or enable biometrics based on your organization’s security standards.
Your users can also reset their password on the Sign In page quickly and easily.
Simple navigation
The home screen includes easier navigation and provides quick visibility to accounts and features based on your user entitlements.
View account balances and transactions
Leverage the app to see a quick snapshot of account balances. The app lets you drill into accounts and transaction details.
Mobile allows users to view account balances and transactions in all currencies and up to 14 business days of desktop and mobile activity
Deposit checks on the go
Save time by depositing U.S. denominated checks, drawn on a U.S. bank and uploading documents as soon as you receive them, instead of waiting for a trip to the bank. 407
Section K – Online Bank Processes and Information Reporting | 90 | Manage your payments
With the payments approval feature, users can easily approve and reject US ACH, wires, account transfers and book payments that are initiated Online. Payment workflow, rules and user entitlements from our online portal are integrated for a seamless experience. Mobile also supports digital signing for secure authorization of payments.
The power of J.P. Morgan Access in the palm of your hand
Figure 12
Mobile works with iPhone and Android smartphones. As new operating systems are certified to work with Jour online portal, we support a maximum of two major versions per operating system (one current and one prior).
Mobile set up and operation is simple. The service is highly secure and there is no additional cost for this service.
Users can download Mobile from the respective app store. User will go through a one-time mobile device registration process and biometric setup (if supported device). 408
Section K – Online Bank Processes and Information Reporting | 91 | J.P. Morgan Access features and benefits
Dashboard: Saves you time because everything is in one window How the City
benefits
• See recent payment activity and related processing statuses • Check balances and run reports from the home page
• Make payments directly from your Account Balances view • Find information quickly with the search tool
• View notifications online and set up to receive notifications via email Available services • Configurable notifications
• Search
• Payments, reports and statements
• Activity log
• Pending actions
• User preferences
• Help center
Checks (1): Efficiently manage paid check activity, monitor fraud and streamline account reconciliation processes
How the City
benefits
• Efficiently manage your check process
• Submit check issue information and retrieve reconciliation reports • Mitigate check and ACH fraud risk
• Streamline your account reconciliation process through our comprehensive check services solution
• Enhance security and fraud protection by sending check print files for bank printing and distribution to payees
Available services • Online check details and images
• Check Print
• Stop payments
• Positive pay
• Reverse positive pay
• ACH Transaction Blocking
Payments: Saves time by aligning to your workflow and the way you work How the City
benefits
• Use consistent payment workflows
• Initiate wires (including from non-J.P. Morgan accounts), book transfers, ACH, U.S. account transfers, draft/checks, drawdowns, and advice to receive (depending on entitlements) • Creation of, and modification to, enhanced templates (i.e., templates that have been bank verified)
• Easily view payment and template history within the workflow, including modified field details when approving transactions
• See account balances while making a payment
• See payment cutoff time while making or approving a payment • Use comprehensive and configurable user entitlements, limits and approval workflow to provide optimal control
Available services • Wire transfer (USD)
• U.S. ACH
• Account transfer
• Book transfer
• Print and export
• Multiple approval levels
• N ACHA file import
• Service requests (USD wire and book
transfer) 409
Section K – Online Bank Processes and Information Reporting | 92 | J.P. Morgan Access features and benefits
Reports: Readily customizable
How the City
benefits
• Organize accounts into groups
• Customize reports from a single page
• Schedule reports and share them with other users
• Use settings to tailor views of balances and reports
• View check and deposit images and research adjustment advice, where available Available services Reports include:
• Balance and Transactions, including
location view reports
• Checks/deposit ticket images
• Daily Account Balances
• Controlled Disbursement Funding
• Returns and Exceptions
• Payment and Template Reporting
• Checks Paid report
• Wire Detail report
Formats include:
• Prior-day, current -day or date range
• Online, Excel, PDF, CSV, BAI2, OFX,
ISO camt.052, camt.053, camt.054 and
Swift MT940/42
Statements: Quickly view, monitor and output statements How the City
benefits
• Delivers a high-level view with the ability to view or download statement information from a single page
• Comprehensive and efficient functionality to filter, search, and retrieve statements • Ability to view individual images of checks (front and back) or bulk downloads • Easily export statements (Excel, PDF and CSV) and paid check images • Online availability of historical statements
• Ability to retrieve up to three types of Liquidity Statements: Investments, Cash Concentration and Pooling
Available services • Bank statements
• Billing statements
• Liquidity statements
410
Section K – Online Bank Processes and Information Reporting | 93 | J.P. Morgan Access features and benefits
Manager: Create and manage users simply and quickly
How the City
benefits
• Browse relationships between accounts, products & users to understand your relationship structure
• View and report on all user entitlements from a single page • Follow step-by-step workflow for streamlined, effortless setup • Lock down security with precise user entitlements, limits and account settings • Manage credentials, including hard and soft token assignment Available services • Company overview
• User Setup/administration
• Administration reports
• User authentication credentials
• Entitlements support for products
• Clone entitlements
• User groups
• Account groups
• Transaction approval Workflow Rules
Liquidity Solutions: Online liquidity management tool with near real-time visibility of cash balances and investments
How the City
benefits
• Optimize return on excess cash
• Minimize risks
Available services • View and manage cash and investments across multiple entities, products, regions and currencies
• Invest in and redeem Money Market Mutual Funds
• Customize and run reports
Merchant Services: Integration
How the City
benefits
• Provides users with simplified payments reconciliation • Identifies opportunities for improving profitability around payments • Provides alerts for quicker awareness to fraudulent payments activity Available
services
• On-demand, user-defined reporting
• Customizable user entitlements
• Available in multiple languages
411
Section K – Online Bank Processes and Information Reporting | 94 | J.P. Morgan Access features and benefits
More Services: Single point of access to a wide range of additional treasury management services How the City
benefits
• Single sign on accessibility
Available services • ACH File Warehouse
• ACH Services U.S.
• Continuous linked settlement
• Digital Payments
• Electronic Specialty Account Portal
• Global ACH
• Host-to-Host Online
• Receivables Online and Remote Deposit Capture
• Supply chain finance
• Trade transactions
• Virtual Account Management
(1) U.S. accounts only.
2. What are the current computer hardware and software specifications for most effectively utilizing the bank’s online system?
Refer to Appendix 5 for our current J.P. Morgan Access Technology Checklist for computer hardware and software specifications.
3. At what time (Pacific Standard Time) is prior day information available? Prior day reporting is available by 7:00 a.m. PT.
4. Is the per item fee for prior day reporting based on the number of items reported or accessed? Fees are based on the number of items reporting and the retention period.
5. Can the reports be customized? Exported to Excel?
Yes. Our online portal offers the City a comprehensive list of predefined reports, as well as advanced filtering and criteria capabilities, and a powerful set of interactive features, allowing you to customize reports for different views or download them into different layouts to meet your varied reporting needs.
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Section K – Online Bank Processes and Information Reporting | 95 | For example, for balance and transaction reporting, the City can customize reports online with the following selection options:
● Select balances by account or groups of accounts
● Access prior business day, current business day or as of business day financial data; or select a date range of up to 2 years
● Evaluate account averages for this month, the prior month and year-to-date ● View balances, credits and debits
● Select from a variety of industry standard formats: Excel, CSV, PDF, MT940, ISO camt.054 and BAI2
In addition, the City can enhance the presentation of your information using the following Interactive Reporting functionalities:
● Move, show or hide fields or columns within the report ● Sort on single or multiple columns
● Use our web search tool to filter data
● Use graphs or charts to quickly visualize trends
● See your report change dynamically as you perform customization of your report ● Save and re-use the report template, print or export the report with the customized settings To enhance productivity, reports can be scheduled to run automatically via our Automated Scheduler at recurring intervals, e.g., daily, weekly or monthly. Additionally, customized reports can be shared by the creator with other the City users.
Once the scheduled reports are available in your users’ Reports Inbox, the users can download these reports at any time even outside of regular business hours, provided that this is not within our electronic banking system’s regular maintenance hours.
6. What types of security measures are in place? How is the assignment of user I.D.’s and passwords managed?
Our online portal uses a multi-layer security system designed to protect the privacy and identity of users, while maximizing data and transaction integrity.
● Control: The City’s security environment is maintained by your assigned security administrators, who create and authorize users for online services. Using online administration tools, security administrators can lock down security with precise user entitlements, limits and account settings and generate entitlement reports to meet auditing requirements. ● Two-step logon: The system uses an enhanced two-step logon to help validate that users are accessing the authentic J.P. Morgan Access website.
413
Section K – Online Bank Processes and Information Reporting | 96 | ● Single Sign-On: A distinct user ID and password give the City’s users access to the platform and product functions that do not involve the initiation of value-bearing transactions. Users entitled to transaction initiation or that fall under certain regulatory requirements will also require a security token to log on.
● User authentication: During the initial access to the server, users’ identities are validated against their registered profiles.
● Log on control: After three log on attempts, the system automatically locks out a user who enters an invalid password and generates an entry in the security log. The three failed log on attempt restriction prior to disabling a user is on a per session basis. This is set by our systems. ● Computer registration: Each time a user logs on through an unrecognized computer, the system prompts the user to re-register the unit using an activation code delivered via an out-of-band channel, such as email, help desk or in person by a City security administrator. ● Digital signature: Authentication is required for users accessing functions involving value-bearing transactions or security activities (e.g., wires and ACH). We use a two-factor authentication process:
Digital signature authentication is achieved through our patent-pending solution leveraging RSA SecurID token technology to provide signatures.
Users enter their user ID, password and RSA SecurID token code when logging on. They are prompted to re-enter their password and token code before moving funds during their secure session.
● Data protection: Industry-standard 256-bit Transport Layer Security encryption helps maintain confidential access and delivery of data, and transaction facilities. ● Session timeout: After 15 minutes of inactivity, users are automatically logged off. 414
Section K – Online Bank Processes and Information Reporting | 97 | J.P. Morgan Access login
Figure 13
Establishing authorized users
During implementation of J.P. Morgan Access, the City first provides initial security administrator user information. After signed acknowledgements are processed, security administrators begin establishing entitlements for authorized client users.
Users log on to the online portal to start the new user identification process with the secured information provided in a welcome email that is generated after the user was created and approved by your security administrators. The user validates their contact information, leverages a one-time pin and creates their own password. The system automatically creates a one-time pin after the user validates their contact information.
When a new user first logs in, they are required to use the one-time pin and then enter a password of their choice that meets required parameters.
Passwords must meet these requirements:
● Passwords must be different from user names
● Passwords must contain at least 6-8 characters for SecurID users and 8 to 20 characters for all other user types
● Passwords cannot include words such as “morgan”, “chase”, “test”, “admin”, “password”, “jpmc”, “qwerty” and “yesterday”
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Section K – Online Bank Processes and Information Reporting | 98 | Users are to confirm their identity by acknowledging their first name each time they log on, which will help further protect them against cyber fraud. The first name value is set by the security administrator upon creating that user profile.
J.P. Morgan Access requires users to change passwords on a periodic basis (i.e. every 90 days).Users may change their passwords at any point prior to expiration and security administrators may reset passwords prior to their expiration date.
Establishing entitlements
Passwords/IDs govern access to the banking portal. Product-specific controls are set at the client, account and user levels. The system provides flexible methods to customize user authorities through both individual assignments and entitlement user groups.
User setup methods offer you flexibility:
● Clone: Allows you to quickly and easily assign products, functions, accounts and group membership to a new user by cloning (replicating) the entitlements granted in the Manager administration menu from an existing user for all or select products.
● Custom setup: Provides advanced customization and lets you choose specific entitlements to products, functions, accounts and group membership.
● Profile only setup: This setup method enables you to establish user profile information without assigning entitlements. This may be the most efficient way if making use of the user group function.
Credential management
Our online portal offers features to simplify and streamline credential management. Rather than requiring security administrators to use a separate security administration app, credential services functionality is integrated into the Manager administration feature and allows you to:
● Perform self-service to order new security tokens and track the status of token requests ● Elect to use a software token that will enable users to generate a token code from their mobile device using the RSA SecurID® Software Token App
7. What is the bank’s contingency plan for providing this information in the event of an unexpected bank system problem or natural disaster?
We have established policies and assigned responsibilities to verify that appropriate contingency plans are developed and maintained for each business area that supports J.P. Morgan Access. The intent of these contingency plans is to support the continued operation of critical systems in the event of a disaster, emergency or other unforeseen events threatening interruption of these systems.
For additional information, refer to Appendix 6 for our Business Resiliency Client Letter. 416
Section K – Online Bank Processes and Information Reporting | 99 |
8. Does the bank offer electronic delivery of statements, reports, and notices? Yes. You will receive electronic delivery of your statements, reports and notices on our online portal.
Online bank statements
Access bank statements of your accounts in a timely and efficient manner via secure internet delivery on J.P. Morgan Access. Benefit from receiving electronic bank statements that are identical to mailed paper statements within two business days after the statement cutoff date.
Bank statements include all transactions posted to the account including all checks paid by check number with paid amount. Online bank statements also include images of checks paid during the statement cycle.
Correction entries made by the bank are also included on the statement.
Our online bank statements provide the City with the following benefits:
● Receive email alerts to notify authorized your users when the account bank statements are available for download
● Print and view a statement as it would be presented in its original paper form ● Search for transactions by opening the statement, and then clicking on the image icon next to the statement name to see an image of the front and back of the cancelled check ● Save and print the statement in PDF format, as well as export data to an Excel spreadsheet or in CSV format
Transmitted bank statement
Our statement transmission solution provides you with an automated transmission of your global, monthly bank account statements, via a secure host-to-host connection in the format of your choice.
Receive electronic statements directly into a statement archive, eliminating saving documents and paper copies manually. Choose from several format options: Excel, PDF and CSV.
417
Section K – Online Bank Processes and Information Reporting | 100 | Reports
The City can securely export reports and data from our online portal through the reports function to update your accounting, Enterprise Resource Planning (ERP) System and/or Treasury Workstation System (TWS).
The following formats are available:
● BAI2
● MT940/MT942
● CSV
● ISO camt.052, camt.053, camt.054
● OFX
The City can also download data and save in Excel or PDF formats.
In addition, our online portal offers a scheduling facility feature that can automatically create the file(s) ready for onward integration with your accounting or ERP and/or TWS.
Notifications via our online portal
Our online portal offers a wide variety of customizable business critical alert notifications to save you time and make sure you do not miss anything.
Alert notifications are free and activation is easy. Your users are auto-subscribed to some notifications and can subscribe to others, depending on the notification types and user entitlements. Your users can elect to receive alert notifications via email and/or online via the Alerts Inbox.
Define, manage and view messages from anywhere in the online portal. For example:
● Set up alerts for when balances are above or below a preferred level, transactions/checks are available, or payments require your attention, with links to supporting detail ● Choose to be alerted to new items in your payments inbox that require action, such as transactions pending approval or see templates that have been modified ● Receive an alert when a scheduled report is complete
Options are available for users to specify the type of transaction, the account, amount range etc., and in this case, your users can opt to receive an alert notification whenever an outgoing payment above a pre-defined amount is posted to the specified account. Designate up to 25 users to receive email alert notifications; personal email addresses are not allowed.
Additionally, online Security Alerts are delivered automatically to help you identify any unauthorized activity on your accounts and online profile. You cannot unsubscribe from these alert notifications. However, you can specify the delivery method.
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Section K – Online Bank Processes and Information Reporting | 101 |
9. What are the administrative capabilities for staff to create user profiles, and grant rights to certain functions?
Your assigned security administrators maintain the City’s security environment in our online portal using the online administration tools available in Manager.
Manager provides simplified, self-service administration capabilities. It’s the security administrator’s one- stop-shop for all administration functions. It all starts with the Manager menu.
Manager navigation
Figure 14
Manager menu options help security administrators take action. View your administration options in the main Manage menu including:
● Manager Home is where you access your Company Overview to view your relationship summary and navigate to common pages to view more detail, including accounts, products and users; additionally you can approve requests and initiate user management. ● Relationship Browser is where you can see relationships between accounts, products & users to understand your relationship structure and verify user entitlements. ● Security is where you set up location groups, default user limits and same-day ACH functions, as well as manage tokens.
● Workflow & Configuration is the place to select approvers, set up approval rules and categories. ● Action Items is where you create new requests and view and edit user details.
User entitlements
The City nominates your own security administrators to establish and approve users for accounts, services and functions using an online entitlement feature. As a standard practice, and to help the City maintain audit controls, a minimum of two security administrators are required for user setup and maintenance. ● One security administrator establishes users for accounts, services (e.g., ACH initiation, funds transfer initiation or balance reporting), and functions (e.g., reporting, transaction initiation and transaction approval or release).
419
Section K – Online Bank Processes and Information Reporting | 102 | ● A second security administrator approves the user entitlements granted by the first security administrator.
● For each user created by a City security administrator, we establish basic authentication user IDs.
Digital signature authentication IDs are established for users authorized for transaction initiation and administrative functions.
● RSA SecurID tokens are assigned by the security administrator to those users who need to perform digital signatures.
● Users log on to the portal to start the new user identification process with the secured information provided in a welcome email generated after the user was created and approved by the security administrators. The user validates their contact information, leverages a one-time pin and creates their own password.
This logon procedure, in combination with the acknowledgement and pre-established user entitlements, creates an electronic user profile that is employed for all J.P. Morgan Access communications with us. Each user’s desktop view of the portal reflects the accounts, services and functions to which that user has been entitled.
Standard security administrator model
Figure 15
You can waive the requirement that a security administrator cannot make a change to their own profile providing that a second security administrator approves those changes.
420
Section L – Account Reconciliation | 103 |
Section L – Account Reconciliation
The City currently issues checks from the General and Payroll checking accounts and utilizes Full Account Reconciliation with Positive Pay services for its disbursement accounts.
1. Does the bank offer Full Account Reconciliation Services with Positive Pay? If so, please describe the service including accepted methods for receiving the Positive Pay data and the format specifications for that data.
Yes, we offer full account reconciliation with positive pay and describe in detail below.
Full reconciliation
Receive a reconciliation of outstanding and paid checks, with the option of reconciling accounts by the week, month, fiscal or calendar year in a format tailored to meet your needs.
Provide detailed check issue data, including account numbers, check numbers, issue dates, dollar amounts and reference information (up to 15 bytes) for full reconciliation.
Choose how you wish to supply this data, in a file transmission or by upload or manual key entry to J.P. Morgan Access, as needed by the check activity in each account.
With check issued data, we perform a full reconciliation of activity in the account, delivering a reconciliation report package via the online portal. The standard full reconciliation package contains an account statement, balance sheet, paid and outstanding check listing, plus a summary including check number, issue date, amount paid and paid date.
Reconciliation reporting
View your reconciliation report package on J.P. Morgan Access within five business days from the close of a cutoff cycle. Download reconciliation reports in PDF and daily paid files in TXT format from the Recon Output tab in Access Checks.
Data Download
Use the Data Download feature of the banking portal to reconcile accounts or perform extensive research on check activity. Data Download allows you to download disbursement transaction detail information in a CSV or QuickBooks format file (QBO).
Transactions available for full reconciliation accounts include outstanding and cancelled check status transactions along with paid, stop payment and return transactions. Non-Full ARP accounts only have paid, stop payment and return transactions reported.
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To meet your reporting needs, determine filters from these options:
● Account number
● Transaction status category
● Date paid
● Effective date
Each request is tracked and delivered in your inbox on the online portal.
With activation of reconcilement service, you incur a monthly maintenance fee on your account analysis statement.
Positive pay for checks
We provide positive pay services to help protect the City’s accounts.
Why are checks so susceptible to fraud? Everyday access to scanners, printers, desktop publishing software, and other tools used to print and alter checks makes it easy to create fraudulent items —written on your bank account! It is just easier to perpetrate fraud on paper checks than electronic payment methods.
However, we can all be proactive. Our positive pay service effectively helps protect the City from becoming a victim of check fraud.
You simply send us your check issue files via transmission or the internet. Our J.P. Morgan Access internet delivery channel provides a foundation for secure and traceable
communications between you and the bank.
We match checks presented on your account to those you have issued. If they don’t match, we provide images of exceptions to you via our online portal. You instruct us to pay or return by the deadline.
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Let us help prevent payment of duplicate or altered checks and minimize losses.
Positive pay—How it works
With positive pay, you provide us with a positive pay issue file containing check amounts, serial numbers, issue date, and payee name data. Simply supply issue data to us via file transmission, online upload or manual entry into J.P. Morgan Access. The deadline for you to submit manual entry or file upload via J.P. Morgan Access is 7:30 p.m. PT. The deadline for you to transmit check issuance files via direct transmission to the bank is 7:45 p.m. PT.
2. Does the bank offer Teller Positive Pay and Payee Positive Pay? Yes. We offer both offer Teller Positive Pay and Payee Positive Pay.
Teller line positive pay—How it works
Teller line positive pay is the strongest defense available to prevent check fraud. Within one hour of receipt of the issue file, we update our teller line system. When a check is presented for payment at a Chase teller window, the teller system determines the validity of the issued check prior to payment. We deny encashment on any items not found as matching open entries on the issue file. Checks deposited at a Chase ATM are screened against the positive pay records.
Payee verification—How it works
We also recommend using positive pay payee verification to provide an additional layer of fraud prevention protection. For payee verification, you provide the bank with payee names in your check issue file transmission, online file upload or by manual entry on our online portal.
While positive pay matches the MICR information of your presented check to the issue file, payee verification takes the additional step of validating that the payee name matches issue file payee information. Our payee name review digitally interrogates the payee name and also looks for alterations or additions above, below or to the right of the payee name that would change the payee identification. Mismatched items are visually evaluated to eliminate digital interrogation reading errors, and remaining items are sent in the daily positive pay exception reporting for decisioning.
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Our positive pay with payee verification
Figure 16
3. How are the exception items under the Positive Pay reported to the City? Once submitted, daily checks presented are systematically compared against your positive pay check issue file. We review and scrub any exceptions to verify that there are no misencoded items. J.P. Morgan Access generates an exception report the next business day that identifies any mismatched or no-issue information on file items. A notification is emailed based on your defined email groups at the beginning of the following business day.
Using “PUSH” technology, J.P. Morgan Access provides a daily positive pay email notification that indicates accounts with exception items (or discrepancies) or a notice stating, “no items today.” Notification is sent by 11:00 a.m. local bank time and includes a link to the online portal’s Access logon page. Local bank time is defined by the account’s processing state.
4. What is the procedure and timeline for paying or returning exception items? Your authorized users are provided the report of exceptions upon log on for pay/return decisioning.
Users simply click on the check number of each item to view front and back check images. They select the ‘pay’ or ‘return’ button for each item—or select the ‘pay all’ or ‘return all’ button—and then electronically submit the decisions to the bank. You have until 4:00 p.m. local bank time to notify the bank of your pay/no pay decisions. You receive an online confirmation indicating the submission was successful, which is saved electronically, or you can print it for future reference. This functionality requires no special software.
Optionally, receive a reminder email notification. If outstanding exceptions still require a decision at 3:00 p.m. local bank time, the bank sends out a reminder email notification indicating that the bank is awaiting a final payment decision. A default decision is applied to any positive pay exception item that is still awaiting a payment disposition by 4:00 p.m. local bank time. While the typical default is setup as return, you determine specific default parameters during implementation.
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5. Does the bank provide online check imaging for exception items? Yes. Our online portal enables you to use the internet to review digital images of all exception items and provide instruction to pay or return each item from a single page. The exception items report provides both a front and back image of each item. Payee name exceptions are conveniently delivered along with all other types of exceptions, so you are able to easily employ the most up-to-date fraud protection services. Email notification offers a convenient way to know when exceptions are available for review.
6. Describe the bank’s check truncation service. Is online check imaging available for paid items? Deposit slips? Bank correction advices?
Yes. Images of all on-us transactions (paid checks, deposit tickets, advices/adjustments) and account reconciliation (ARP) reports are available via our banking portal. Check images and ARP reports are stored for 7 years (standard) with an option to extend retention up to 10 years.
7. Describe the bank’s online stop-payment service and features. How long is a stop-payment effective? Stop payment requests remain in effect for one year and can renew for an additional six years. To streamline the City’s stop payment process, we offer the following options:
● Internet: Place stop payments online via the banking portal, either directly from within the “Stops” function or more efficiently by using the “Inquiry” function where the check numbers are validated against the issued items
● File Transmission: Send a stop (or revoke) payment transaction within the positive pay issue files, allowing stops to be processed in batch
● Manual: For back up, contact your designated CSA to assist in placing a stop payment Online stop payment requests
When placing stop requests via the banking portal, the system searches 90 days of transaction history to identify if the check has been paid (extended retention periods are available) for payment requests entered manually.
If the check has been paid, the system reports the date the item was paid, and you can; ● Choose to continue to request the stop by clicking “enter” (e.g.: to prevent payment of a second presentment of an item with the same check information) ● Choose to cancel by clicking on the “cancel” button If you do not want to place the stop Once the stop payment request is submitted appropriately, it will be processed within one hour. We provide confirmation online of successful placement of the stop payment request. Print or download details as needed.
Additionally, a stop payment activity report is available online. The final status of the item at the time the stop was placed is available on the activity report the following business morning. 425
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8. The City is not currently making virtual payments, but please describe your capabilities, procedures, and costs for these programs.
Please see our response including PaymentWorks and virtual card.
PaymentWorks
We select only the most innovative fintechs to complement and support our payment strategies. After a thorough vetting process, we chose PaymentWorks to work with for supplier identity management and validation. PaymentWorks enables a combined supplier management and payables optimization solution that is a dramatic and disruptive improvement over yesterday’s inefficient, cumbersome model.
Forging relationships with payment processors and enablers increases the number of “monetization channels” we can offer your suppliers. Solving for the needs of specific suppliers ultimately grows monetized spend, resulting in greater rebate and working capital.
PaymentWorks is a platform that mitigates the risk of business payments fraud, reduces cost and automates the payee management process. Using PaymentWorks, your suppliers follow a simple registration process that includes self-selecting one of the payment methods you choose to offer (virtual card, ACH, check), which is then passed back to Finance Enterprise, Central Square. Your suppliers also use this self-service portal to update their payment information securely and monitor the status of their invoices.
PaymentWorks’ digital supplier onboarding includes
payment security monitoring and a supplier self-
service portal all in one. Once you implement the
PaymentWorks platform as part of your supplier
onboarding and payments workflow, the City will no
longer need to manually update supplier payment
information for any of your suppliers—new and
existing. PaymentWorks also verifies that each
electronic ACH payment you disburse ties to a
validated vendor and shifts the payment liability away
from the City to cover domestic ACH fraud with
indemnification of $2 million per occurrence.
With PaymentWorks’ robust supplier identity
verification tools, the City will have more secure,
compliant and optimized business payments
1 .
1 For the avoidance of doubt, J.P. Morgan and any third parties listed on this page have not entered into a legal partnership to provide the services described above. Third party trademarks, brand names, and descriptions of products and services that appear on this page are provided by the respective third party. J.P. Morgan is not liable or responsible for such trademarks, brand names, descriptions of products, companies and or services.
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Reducing ACH risk
To reduce the friction in supplier identity authentication and onboarding, and to address the growing fraud risk associated with this payment type, we suggest the City consider also leveraging our collaboration with PaymentWorks as part of your ACH payment strategy.
Managing your suppliers can be time consuming, costly and stressful. It increases your layers of administration and can expose you to compliance and tax risks, as well as payments fraud. PaymentWorks helps protect against business-to-business (B2B) payments fraud, provides tools to support regulatory compliance and delivers supplier payment optimization.
With PaymentWorks, you receive:
● Risk transfer for fraudulent business payments. All supplier types onboarded via the platform are assessed for payments fraud risk. All domestic ACH payments made to suppliers who have been risk assessed are covered by the $2 million fraud warranty 2 .
● Time savings and increased efficiency by having PaymentWorks automate manual tasks, like Supplier Master Request Forms, W-9s, sanctions checks or answering invoice status questions. ● Compliance risk mitigation via continuous sanctions monitoring, auditable approval and submission trails and the collection of insurance, conflict of interest and diversity documentation. ● Increased automation with efficient, electronic and secure supplier onboarding. 2 For the avoidance of doubt, J.P. Morgan and any third parties listed on this page have not entered into a legal partnership to provide the services described above. Third party trademarks, brand names, and descriptions of products and services that appear on this page are provided by the respective third party. J.P. Morgan is not liable or responsible for such trademarks, brand names, descriptions of products, companies and or services.
Gain benefits with PaymentWorks
Once you implement PaymentWorks, you will no longer manually update supplier payment information for any of your suppliers—new or existing. With PaymentWorks’ robust identity verification tools, the City will reduce risk exposure to payments fraud scams, compliance issues and manual mistakes.
PaymentWorks automatically reviews all supplier and payment information to verify you’re making accurate payments to your intended beneficiary. Additionally, PaymentWorks:
● Provides indemnification for all domestic ACH payments made to suppliers on their platform, with up to $2 million per fraud occurrence
● Continuous sanction lists monitoring
● Establishes internal and external compliance requirements for your suppliers (e.g., diversity certifications, insurance certificates with automated notifications of expiration and Conflicts of Interest attestation)
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● Eliminates the need for the City’s staff to update supplier bank account information via phone or email or have it visible/stored in the ERP
● Eliminates collecting paper, e.g., Supplier Master Request Forms, W-9s, bank account documents ● Provides an auditable onboarding and approval log for each input and change of supplier data Virtual card overview
We offer a single-use, multi-authorization, electronic, credit card-based payment method to help the City more efficiently manage payments, reduce costs and transform traditional areas of expense into potential revenue generators.
Gain the flexibility, float and rebate of a purchasing card coupled with powerful payment controls, anti-fraud and reconciliation features of virtual cards.
Virtual cards are equal to the approved payment amount. There is just one account per payment to help make sure the merchant only has access to approved funds for a specific payment.
Virtual card reconciliation is based on matching four key elements of purchase payments to transactions:
account number, validity dates, dollar value and merchant category code (MCC). When these items match, reconciliation occurs automatically, and you gain further efficiencies by integrating into your Finance Enterprise, Central Square system.
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Section M – Daylight Overdraft Protection
The City currently requires daylight overdraft protection.
1. Describe any issues, concerns, and charges associated with the use of daylight overdraft facility.
Recognizing a client’s credit standing, an appropriate intraday credit limit will be made available to make sure your transactions flow smoothly and efficiently through our systems. This limit is electronically verified by our Funds Transfer Balance Control System. Payments within the limit, plus the current cash position in your account, will instantly flow through to the appropriate execution mechanism.
Ifa payment takes your account balances over the intraday limit, we store the transfer electronically and refer it to a funds control officer for approval. If we receive covering funds while storing the payment, the transfer is automatically released without manual intervention.
One important feature of our system is the ability to group designated accounts together into a single relationship for intraday credit purposes. This provides for the release of payments when the total balance and intraday limit in your grouped accounts is sufficient.
2. Will the bank guarantee payment of all the items even if it results in the account being overdrawn temporarily for the day?
Yes, payment will occur even if it results in the account being overdrawn temporarily for the day.
We establish an intraday limit and describe our process below.
Considering the established credit standing, an appropriate intraday credit limit is made available to make sure your transactions flow smoothly and efficiently through our systems. The limit is electronically verified by our Funds Transfer Balance Control System. Payments within the limit, plus the current cash position in your account, are executed.
Should a payment take your account balances over the intraday limit, the transfer will be stored electronically and referred to your funds control officer for approval. If covering funds are received while the payment is stored, the transfer will be automatically released without manual intervention.
An important feature of our system is the ability to group designated accounts together into a single relationship for intraday credit purposes. This provides for the release of payments when the total balance and intraday limit in your grouped accounts is sufficient.
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Section N – Merchant Bankcard
The City currently accepts Visa, MasterCard, Discover, and American Express credit and debit card payments. The City currently has six (6) merchant locations or I.D.s accepting payment for the City for services. The City prefers a single point of contact for technical issues, configuration changes, upgrades, maintenance, and troubleshooting for any merchant bankcard issues.
1. Please describe the bank’s Merchant Bankcard and Point-of-Sale processing capabilities.
Merchant Services is a trusted industry leader in payments processing and a critical line of business under our J.P. Morgan Payments group, helping clients optimize, grow, simplify and protect their payments. More than 4,000 Merchant Services’ employees help organizations like the City implement and advance more secure and efficient payments programs that matter most to your customers, while establishing an optimum processing environment to help you streamline operations and optimize the cost of doing business.
Our market leadership is more than just numbers. We actively participate in industry and regulatory initiatives, and we are a leading institution in the development of international industry standards. We hold important positions on committees that shape the course and direction of each market where we provide customer payment solutions and pass the benefits of this influence and experience on to our clients.
Our global merchant processing volume for 2024 was more than $2.58 trillion and comprised of clients across a broad range of industries, segments and locations. Our proprietary platforms enable us to offer the City integrated solutions for all major payment types – from credit and debit processing to digital, alternative and mobile payment options. We support a variety of point-of-sale and card-not-present environments while providing security and reliability and a full spectrum of payments services we can tailor to meet your objectives
2. Please describe your reporting methodology and how adjustments and chargebacks and other debit adjustments are netted from daily proceeds. Are they debited from daily proceeds or debited separately? Is the discount fee refunded when a chargeback or refund occurs? What is the rebuttal process?
This is dependent on your set up, we usually debit disputes/chargebacks from your main operating account but can debit them separately from your daily funding credits. We process debit and credit card disputes/chargebacks and other debit adjustments during the daily settlement process.
We support referenced refunds, but they are treated as stand-alone, distinct transactions, therefore transaction fees apply. Refunds receive interchange credit determined by the payment brands on how the refund qualifies, but not necessarily at the rate of the sale.
For a customer-disputed chargeback, you may choose to provide a rebuttal letter or respond with other documentation within the chargeback solution. The payment brands require certain documentation, with which your chargeback analyst can assist. You also have access to a reason code user manual if needed.
You must respond by the “Due Date” printed on the dispute/chargeback documents or as shown in our chargeback solution.
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3. When and how will the City receive funds for each day’s transactions? Are settlement amounts listed separately on the bank statement or will they appear in one lump sum? Will the bank break out settlement amounts by merchant location?
Funding occurs based on how you configure your company level at setup. You may fund at the company level or designate one or more business units (BU) under the company level where funds transfer instructions (FTIs) are established. The number of allowed DDAs for funding will depend on the company level structure.
Net settlement clients will designate a single DDA, while gross settlement clients may designate up to five DDAs. Net settlement clients are eligible for next business day funding when they settle to a J.P. Morgan DDA. Gross settlement clients may also be eligible for next business day funding when they designate the same J.P. Morgan DDA for all deposit and fee debits. Next business day funding is not available when multiple bank accounts are selected within the funding categories. Deposits can be made by funding category (i.e., deposits, fees, chargebacks, financial adjustments). Each category can be funded separately or netted into one or several separate amounts. Deposits can be made individually by merchant number or can be rolled up by chain. We send these transfers individually, but it is up to each merchant bank’s reporting as to whether or not the individual transfers are separated.
4. What is the cutoff time for card transactions?
Next business day funding is available if you have a J.P. Morgan DDA, with all transactions received by our 8:59 p.m. PT cut-off settlement time sent to your bank for value as defined below; transfers on bank holidays occur one business day later than normal. This late window allows access to Visa, Mastercard, and debit funds that are deposited into your J.P. Morgan account by 6:00 a.m. PT on the next business day (i.e., excluding weekends and bank holidays); Saturday and Sunday settlements are funded Monday. Gross settlement clients must designate the same J.P. Morgan DDA for all funding categories to be eligible for next business day funding.
If you do not have a J.P. Morgan DDA, our cut-off settlement times are 10:00 a.m. PT and 2:00 a.m. PT. Our window of 10:00 a.m. PT allows for access to Visa, Mastercard and debit funds that we deposit into the bank of your choice the next business day. Our deposit window of 2:00 a.m. PT allows you to submit ‘whole day’ processing at one time for funding the following business day. Separate funding is provided, according to the chart below, if we receive multiple settlement files within each settlement time. Saturday and Sunday settlements are grouped with Monday’s settlements for transferring funds to your bank account(s).
You may send all card types in one file; there is no need to send separate files for non-bank card transactions. Non-bank card deposits are electronically conveyed for settlement to the appropriate company, and you receive payment directly from that company. Funds will be electronically deposited into the account(s) specified by your organization via ACH transfer. Based on your contract with American Express, and your processing agreement with J.P. Morgan, American Express transactions can be settled through us or conveyed.
Our reports break out each day’s deposits, fees, chargebacks, etc. in detail, including Saturday and Sunday.
Our multibank account system allows you to choose one or many bank settlement accounts in one or many financial institutions. Each merchant number you establish is linked to a specific bank settlement account. 431
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J.P. Morgan DDA* clients Non-J.P. Morgan DDA clients
File to Merchant Services Client credited via
ACH **
File to Merchant Services Client credited via ACH
8:59 p.m. PT 6:00 a.m. PT 10:00 a.m. PT Next business day Next business day 2:00 a.m. PT*** Next business day
*The designated settlement account for merchant funds must be a DDA with JPMorgan Chase Bank, N.A. **Funding day is calculated based upon the day and time the settlement file is received ***Preferred settlement time for “whole day” processing
5. The City has purchased three (3) credit card terminals. Can the bank supply the City with additional terminals if needed? We are currently using FD150 and Clover, is this equipment compatible with yours? If the current equipment is not compatible, please provide pricing for the required new equipment.
No, FD and Clover terminals are proprietary terminals that are not compatible with J.P. Morgan.
We sell point-of-sale equipment through our vendor or the City may opt to obtain point-of-sale equipment that is certified to our network from a third-party vendor.
Class A terminals that are actively sold, certified and supported by us include:
● Ingenico Android: DX4000 (IP/Ethernet only) $399 per device and DX8000 (WiFi/4G only) stand- alone terminals $499 per device
6. Is the bankcard relationship managed by a separate unit of the bank, or by the Account Relationship Manager? Please briefly describe the structure of this program.
You will have one team working to support your overall financial needs, understand your current objectives and provide a strategic approach to solving your challenges. The team will recommend comprehensive solutions, allowing you to maximize efficiencies across your entire commerce cycle.
Your relationship team will work closely with your Banker, Veronica Villasenor and your Treasury Manager, John Wacaster, to support the City throughout your journey, understand your current objectives and provide a strategic approach to solve your challenges.
7. When and how are the merchant fees charged to the City? Can this fee be paid through account analysis? Is tiered pricing available?
The current pricing structure is for daily discount; however, other options exist but require review and approval and may incur an additional fee.
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8. Is reporting information available online? What is the fee associated with this service? Is a “corporate level” view available to see all the merchant accounts? Our reporting solution provides 24/7 access to your payments processing data (e.g., front-end point-of-sale and back-end reconciliation data). Generate, view, print and export a variety of summary, detail and trending reports on a daily, weekly and monthly basis, including financial and transaction and portfolio-based detail, retrievals and chargebacks, and customized analytical summaries. Download data files and select from a broad variety of standard reports to suit your documentation needs, all to help you effectively manage your payments processing data, review deposit activity to improve cash flow, and view and analyze payment data efficiently for cost savings analysis.
Our reporting solution offers numerous standard features, including secure access with card masking.
Administrative tools allow you to create and remove users and change user entitlements for reports and modules. The Bank Lookup capability allows you to search for card issuing information to assist in research, and the Merchant Search capability helps you find locations within your hierarchy. Tailor the reporting tools and filters per your user preferences that make the most sense for your organization. User guides and tools are also available online to help get your users up to speed.
The following modules of our reporting solution offer you a host of features and capabilities:
Chargeback Management System module: Use this interactive module to manage items such as disputes/chargebacks and retrievals online. View and immediately respond to inquiries, disputes or accept disputes/chargebacks, and fulfill retrieval requests. Respond to us using an email address, a scanned sales receipt or other documentation, or a combination of both.
Instant Alerts module: Receive Instant Alerts via email notifying you of potential financial risks from card payment exceptions or special conditions (e.g., multiple disputes or chargebacks, repetitive high-volume card usage). We continuously review your payments processing data for triggered exceptions and special conditions based on thresholds you set. Timely notification of these types of issues through Instant Alerts gives you the opportunity to correct them immediately and focus on locations that may require procedural changes, helping you save time and reduce expense and resource costs.
Virtual Transaction Manager (VTM) module: Gain real-time access to your front-end point-of-sale, batch and transaction data so that you can view transactions within seconds. VTM offers summary and detail reports, as well as the ability to search for transactions meeting certain search criteria. You can view data at a merchant or higher hierarchy level, specify date ranges and other applicable criteria, and view results quickly.
Available reports include All Transactions, Batch Summary (batch and transaction detail), Card Type Summary, Suspense Batch Summary and Transaction Search.
Recon Solution module: Access comprehensive reports to support your reconciliation, research and analytical needs. Quickly view deposits, batch activity, transaction detail, card totals, qualification information, funding data, processing fees, adjustments, retrievals and chargebacks, authorization detail, and statements online. Available reports include:
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Recon Solution reports
Figure 17
9. What portal/program will be used for front-end and back-end operations? Please refer to our response in question number 8. above
10. Do you offer an implementation credit for purchasing equipment, scanning devices, and credit card machines if our equipment is not compatible with your system? No, a merchant services implementation is not included in this pricing proposal.
11. Please explain your rate increase policies. Can the rates be fixed for any period during the City’s Agreement?
Merchant services pricing is confirmed for the length of the Agreement. Card brand interchange and assessments will be passed thru to the City at cost.
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12. What payment gateway platforms are accepted or provided? Our clients benefit from the flexibility and convenience that our relationships with third-party service providers offer. From terminal hardware to gateway technology, hundreds of technology providers are certified to us. In addition, we closely collaborate with certain industry service providers, so our clients have access to a variety of available resources when building their processing environment. We would be pleased to work closely with you to review any e-commerce platforms you may be contemplating and ensure the best-fit path for payment acceptance is ultimately implemented.
13. What is your involvement with maintaining PCI compliance? We support the City by assisting in the clarification of PCI DSS requirements. We act as the liaison between you and the various payment brands’ security programs. We also host conference calls and client meetings/training, as needed. These training sessions serve to educate OSU about cardholder data security requirements and payment brands mandates for compliance to PCI DSS.
As a founding member of the PCI SSC Board of Advisors, we continue to serve your interests, as a participating organization member and liaison to the PCI Council. We further facilitate discussions with the Qualified Security Assessor (QSA) and payment brands representatives surrounding accelerated compliance strategies and risk mitigation techniques. We frequently publish awareness bulletins and articles to update you on new technologies, training opportunities, regulatory changes and emerging fraud/compromise risks.
Additionally, we provide PCI DSS compliance resources at:
https://merchantservices.chase.com/support/protect-your-business/datasecurity .
The following are links to the data security programs of the Visa, Mastercard, American Express, Discover and the Payment Card Industry Security Standards Council’s (PCI SSC):
Organization Program name/link
Visa Cardholder Information Security Program (CISP)
Mastercard Site Data Protection and PCI – Mastercard
American Express American Express – Data Security
Discover Credit Card Security – Discover Card
PCI SSC PCI DSS, PA-DSS
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Section O – Purchasing Card
The City currently has a purchasing card program in place for employees to make various types of purchases and incur expenses for City-related business.
1. Provide an overview of your purchasing card program and its features.
We offer several Commercial Card solutions and highlight them at-a-glance below.
Whether it be traditional plastic cards for procurement and travel expense or advanced payables solutions like virtual cards, let us design the optimal program solutions to help the City transform your business.
Commercial Card solutions
Purchasing Card
Plastic and cardless (ghost) payment solution
• Reduce costs: Increase efficiency, streamline processes and reduce costly manual processing on low-value/high-frequency spend
• Enhance control: Enhance employee convenience with spend controls and added visibility to promote policy adherence and minimize misuse • Realize gains: Create potential for rebate revenue and cash flow optimization
Corporate Card
Plastic travel and entertainment payment solution
• Empower travelers: Empower business travelers to make purchases within the limits and boundaries set by the organization
• Improve convenience: Take advantage of broad acceptance at millions of locations worldwide and increase spend capture
• Increase visibility: Level III travel data is available within PaymentNet (if passed by the merchant) for display and reporting to allow for spend visibility and policy monitoring.
One Card
One solution to manage multiple types of spend
• Simplify processes: Simplify program administration and place essential program functionality at the fingertips of your users
• Enhance control: Greater employee convenience and streamlined purchasing control with one card to carry and one set of spend controls
• Aggregate spend: Aggregate spend capture as you consolidate the rebate revenue stream for optimal earning potential
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Commercial Card solutions
Virtual Card
Virtual, electronic single-use payables solution
• Automate control (to the penny): Automate higher value spend requiring accounts payable control or “one-off” transactions
• Get it all: Receive the benefits of a Purchasing Card with the controls of a check (payee, date, amount) and the efficiencies of ACH
• Realize gains: Take advantage of earning rebate revenue, extending float, increasing liquidity and streamlining the payment process
Leverage the experience of a market leader
What does that mean to you?
It means we provide you with proven solutions and time-tested features tailored to your complex needs— regardless of the size of your program, range of spend, specific business challenges, goals and technology.
Being one of the most strongly capitalized bank-holding companies means you benefit from our flexibility to pursue technology enhancements and capital investments into new products and services, to continually seek innovative concepts and ways to increase operating efficiencies.
Leverage our consultative approach at all stages of your program Our consultative approach means we are relationship focused. We design, implement and manage a solution to meet your needs, subject to your approval.
From implementation to ongoing support, dedicated in-house implementation helps you get started and in-house service provides ongoing client care to help solve problems quickly.
We begin by taking the time to learn more about the issues that confront your organization each day, your processes, how these processes work, and what you are trying to achieve.
Once we have assessed your needs, we recommend the program that works for you to enhance control, simplify payments and optimize cash flow.
Leverage our scale
With one of the highest acceptance rates in the industry, we put the convenience of you and your cardholders first. We can help you drive adoption and capture more spend, using our large supplier network, extensive recruitment experience and broad base of acceptance.
Leverage our specialists to
optimize your payment
strategy in areas of:
Industry benchmarking
Program communications
Program consistency
Spend segmentation
analysis
Program value
quantification
Supplier recruitment
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Capture scale from a payments leader and engage J.P. Morgan Commercial Card Solutions to earn more rebates, drive operating efficiencies and enhance control.
2. Does the bank offer a purchasing card service? If so, please describe the service.
Yes. Streamline and simplify your payables process with our Purchasing Card.
Better value with Purchasing Card solutions
Identifying opportunities to improve your efficiency
• Increase rebate revenue with spend
• Manage cash flow via accelerated payments that increase float • Gain greater insight into supplier consolidation opportunities due to enhanced spend visibility and increased leverage with vendors in price negotiations
Achieve efficiencies
• Save time with reduced manual processes for low-dollar, high-frequency spend • Integrate Purchasing Card with your enterprise resource planning (ERP) system to consolidate visibility into payment data
• Implement transaction and/or velocity spend controls to reduce time spent on monitoring adherence
Improve the employee experience
• Connect cardholders with easy access to user-friendly online and mobile solutions • Provide cardholders with tools like receipt imaging and automated allocation to improve reconciliation • Render clear insight to cardholders by providing transparent guidelines, control and usage at their fingertips
• Offer the convenience of global acceptance
• Offer onshore global cardholder customer service support 24/7
Enhance supplier relationships
• Reduce disputes over late and/or delayed payments
• Lower carrying costs
Increase control over the purchasing process
Improve your program with increased control over your purchasing process.
Our proprietary PaymentNet software provides you with detailed financial system mapping, precise front- and back-end controls, web-based program management functions, automated alerts to flag potential non- compliance, and reports to help verify supplier rates and usage.
A wide range of spend reports help you be more productive with accurate transaction data for more reliable financial reporting.
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3. Please detail all the fees associated with the service and/or any rebate available with the program.
Refer to Appendix 9 for our Commercial Card Consortium pricing.
4. How often are the statements and reports available to the City? Is the reporting available online? Statements are available for viewing within two business days after the billing cycle ends.
Use PaymentNet’s online statement functionality to view statements. Cardholder access to the online statement feature is granted by the City’s program administrators.
Billing cycles and payment terms
We offer a wide range of billing cycle closing dates, allowing the City to select the date that is most appropriate for your calendar. This date can vary for each subsidiary that has its own accounting system.
Billing runs on a 30-day cycle with payment due 14 days after the end of the cycle for Purchasing Card and 25 days after the end of the cycle for corporate (travel) cards.
PaymentNet reporting helps you manage your program
Our proprietary PaymentNet system provides the tools and information for the City to effectively manage your commercial card program activity. PaymentNet reports all data passed by merchants at the point of sale.
We develop PaymentNet reports based on best practices and actual client usage to make them effective, practical and convenient.
PaymentNet feature How you benefit
A library of reports covering
key operational categories
Meet common program needs with reports categories of accounts, administration, cardholders, merchants, and transactions, as well as in-depth reports if you use our virtual cards
Options for generating reports
on-demand or on a pre-set
schedule
Create daily, weekly, monthly, by cycle, quarterly and annual reports in real time or set up reports for automatic generation based on your goals Tools to tailor reports Use filters and queries to refine report information and yield the precise details to meet specific objectives, provide to special audiences
Flexible output formats Download for further analysis or archive reports in Excel, PDF and CSV format and print copies as needed.
Email notification Set up notification via email when a report is ready to view or download Information access 24/7/365 Simply use a secure web browser (e.g., Firefox or Chrome) and enable JavaScript and cookies for authorized users to virtually access their PaymentNet accounts and reports
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5. Is there an interface available to download cardholder purchase information, either in an Excel format or directly to the City’s accounting system?
PaymentNet displays all information provided by merchants at the point of sale, including level II and level III detail. The City can download transaction data from PaymentNet to your ERP system daily.
Data collection process flow
Figure 18
We offer several file feeds customized for accounting software packages, as well as a range of data transfer options, including SFTP, XML and HTTP over TLS.
After downloading your transaction data, the City can have it sent directly to your ERP system or to your PaymentNet user interface. You select your file transmission method during implementation. Transaction data will remain in the PaymentNet user interface until a user manually downloads it to your system. Files within the PaymentNet user interface are available for 365 days and can be deleted as necessary.
Mappers
We have extensive experience in mapping commercial card data. Our flexible technical integration capabilities will allow the City to import your transaction information into your ERP system daily, weekly, monthly or by billing cycle.
We offer three file options to fit the needs for data formatting: a standard transaction file, a flex mapper utility and an internal development tool called the Data Extract Utility (DEU). The standard transaction file and flex mapper allow clients to run files without additional assistance from us, while our DEU is available for clients with more extensive or complex requirements.
Standard transaction file
Our standard transaction file allows the City to load data into your systems without additional assistance from us.
This static, tab-delimited file is available within the PaymentNet user interface and contains more than 700 data elements, giving you access to a wide range of details, including transactions, merchants, chart of 440
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accounts (when applicable) and reporting hierarchy. If merchants have passed level III or enhanced data with transactions, that information is also included in the file.
This file option is available through the user interface and may be created and generated through the mapper utility. We also provide technical resources and a developer’s guide to help you easily map data elements.
Flex mapper
Our flex mapper offers 90 data elements (65 standard data elements plus custom fields created by the user, up to the maximum of 25 custom fields), making it most useful for clients that require only basic transaction information.
Like the standard transaction file, the flex mapper allows the City to build and maintain files without assistance with files available through the PaymentNet user interface. The flex mapper also allows you to determine which elements are exported, the order in which they are arranged and the file format.
This file option is offered at no additional cost, and our PaymentNet user guide helps you easily use the file and see which data elements are accessible with this method.
Data Extract Utility (DEU)
Our DEU was developed for clients requiring more extensive capabilities than those offered by our flex mapper. With the DEU, the City can develop file specifications that we will build and deliver at no additional cost.
The DEU allows for output fields to be grouped together, calculated fields and counters, and a vastly expanded range of data elements, including transaction, order and account elements. Level III data (as well as most data displayed in the PaymentNet user interface) may also be accessed with the DEU. Additionally, the tool offers a broad choice of formatting and file output options.
6. Do you provide an online application to review/approve procurement card transactions and to manage other aspects of the program?
Yes. We offer the City PaymentNet, our fully hosted online solution that requires no client-side software and is accessible from virtually any secure internet browser.
Streamline program management
Automate administration of your card program, simplify cardholder tasks and streamline account reconciliation with PaymentNet.
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Be more efficient with the right tool
No software to install or maintain
• PaymentNet’s web-based solution means nothing to install • Our fully-hosted system means we take ownership of hardware platform needs, not you • Access PaymentNet on the go with our mobile website—great for cardholders, too
Handle everyday tasks more quickly and efficiently
• Access key information, address core tasks and make payments directly from the home page • Make real-time profile changes, adjustments of account controls • Reduce the need for repetitive manual effort with mass updates
Monitor, analyze and report on your program spend—your way • Design custom reports to fit your needs--or choose from standard report options • Save time and schedule reporting to run automatically • Create and save report queries in a way that meets your needs
Create hierarchy structures that meet your business needs • Save time and establish defaults to simplify reporting and transaction approval • Built-in hierarchy support gives authorized personnel access to a wide range of administrative options • Hierarchy structures allow cardholders to benefit from convenient, self-service features
Set controls with real-time adjustments to promote adherence to expense policy • Enforce spend policies before a transaction is even initiated • Limit unauthorized usage while still giving employees exceptional flexibility • PaymentNet puts you in control, from the cardholder to the program administrator to the auditor
Gain greater transparency and insights into your program spend • Minimize manual tasks while increasing administrative speed and accuracy • Provide transparency and accountability to management with a full range of audit trails • Get the information you need to enable you to break down and analyze your program spend
Use a one-step, paperless process to capture the entire card application • Manage each step online—from card application to approval to card request within PaymentNet • Give program administrators full traceability and cardholders online status of their application • Save more time by establishing user access roles for each account during card issuance
Upload data to your general ledger to streamline the posting process • Populate your general ledger as often as needed, automatically with the latest transaction data • Specify different record types, order and sorting based on your system requirements • Eliminate time-consuming manual input of data into existing general ledgers
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Maximize control—put essential functions at your users’ fingertips Get features and functionality not confined to the standard (and often limited) functionality of third-party reporting tools.
Experience a new level of efficiency and control with PaymentNet
Figure 19
Simplify account management
Appreciate the user-friendly, intuitive navigation developed by the largest U.S. commercial card bank issuer (Nilson Report, Issue 1263, May 2024).
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Stay current with a snapshot view of your program
Figure 20
Screenshot is for illustrative purposes only. Some features of the dashboard may not be visible depending on the organization and hierarchy settings.
We offer PaymentNet at no charge. To help you get the most out of PaymentNet, we provide comprehensive training for your program administrator, as well as a variety of training options and materials for cardholders and other users.
Your valuable data is protected through industry-proven Transport Layer Security (TLS) encryption technology. All sensitive data is masked, the login process is password protected and security access levels can be configured to help make sure that only authorized City personnel have access to critical information.
7. Does the online application allow employees to enter accounting codes for transactions and attach supporting documentation such as receipts?
Yes. With PaymentNet, the City manages reconciliation by assigning default accounting codes, then reallocating or splitting transactions. When reconciliation is complete, users can simply mark transactions as reviewed and submit them for approval based on rules you establish. 444
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Assigning default accounting codes
PaymentNet’s custom accounting code system can imitate your existing system, allowing the City to define your accounting code segments. The segments can also accommodate multiple codes within each segment.
Once your codes are set up in the system, PaymentNet will automatically attach default accounting codes to each transaction based on transaction defaulting rules for employee, hierarchy, merchant, MCC, account or customer code. Each accounting code has a flexible number of alphanumeric characters, giving you the flexibility needed to accurately and easily allocate transactions.
Default accounting codes
Figure 21
Default accounting codes are automatically attached to transactions in PaymentNet.
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Reallocating transactions
Within two business days of merchant posting, PaymentNet users access transactions, edit chart of account segments and custom transaction field(s) attributes before downloading data into the City’s general ledger.
As users review the information, each transaction is shown with pre-populated accounting codes. Users manually allocate accounting codes by free-form input or select the appropriate code from a drop-down menu. The accounting codes displayed within the menus are appropriate for each user based on the user’s role in your hierarchy.
The City’s managers, auditing teams and program administrators benefit from being able to effectively monitoring which transactions have been edited, viewed and approved.
Splitting transactions
Users can split transactions up to 99 times among accounting codes. PaymentNet’s Transaction Allocation report tracks how each transaction is being split among cost centers. Your program administrator and managers can use the report to confirm that charges are being reassigned to the correct accounting codes.
Receipt imaging
Our receipt imaging feature lets users scan and upload or fax receipts into PaymentNet and associate them with transactions for easy reference and retention.
Cardholders attach receipts to their transactions and program administrators receive a daily bulk export file of the uploaded receipt images.
Receipts can be associated with reference data such as a description, the receipt date and the amount.
Once a receipt is uploaded, the information can be viewed and downloaded via a link next to the transaction.
Multiple receipt images can be downloaded in one action. You also have the option to receive a file transmission daily containing all receipt images that were uploaded the previous day.
The images are available online for 24 months via PaymentNet. 446
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Adding receipts to transactions
Figure 22
Users can easily append receipts to transactions for more efficient oversight, increased control and policy compliance, and reduced costs.
8. Is there a card payment program available for vendors, such as a virtual card or “ghost” card? Describe the program and remittance process.
Yes. We offer virtual cards as well as ghost cards.
Virtual cards on PaymentNet
Virtual cards at J.P. Morgan provide an electronic, credit card-based payment method that helps clients like the City more efficiently manage your payment process. Virtual cards also help reduce costs and transform traditional areas of expense into potential revenue generators.
We offer a true virtual card solution. Each virtual card has a credit limit equal to the approved payment amount. With a design that creates just one account per payment, the merchant only has access to approved funds for a specific payment.
When all four key elements of purchase payments to transactions match—account number, dates, dollar amount and merchant category code (MCC)—reconciliation occurs automatically. A reconciliation file is then delivered to the City’s ERP system.
We offer various integration options for virtual cards—API, batch and online—that leverage PaymentNet.
Several of our clients leverage API and batch for specific use cases. These clients enjoy a cohesive/consistent experience with the robust capabilities that PaymentNet offers. 447
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Couple powerful payment control, anti-fraud and reconciliation features with the flexibility, float and rebate of a purchasing card.
When you replace less efficient payment methods, such as checks, with virtual cards, you hold onto cash longer while paying suppliers sooner.
Remittance information
Most often, our clients request that we send payment information directly to their suppliers via email. We encourage suppliers to set up secure email during enrollment. This is a one-time process and allows the supplier to receive remittance information and complete payment information (comprised of full virtual card number, expiration date and three-digit security code). As an alternative, the City can communicate payment and remittance information directly to your suppliers following your own internal communication processes.
Secure email
We offer secure email functionality using SecureMail. Secure email provides full account information in a single, encrypted email message.
The full account information includes:
● 16-digit account number
● Expiration date
● Card security code (also known as CVV/CVV2)
● Billing zip code
Suppliers will receive a verification link and will be directed to our secure reader portal to choose their preferred verification method.
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Ghost cards
Purchasing card account numbers can be given to your authorized suppliers to keep on file for use in all organizational transactions. These ‘ghost’ accounts allow your organization to make purchases through a single purchasing card and account number.
The transaction becomes an electronic form of a purchase order, reducing manual purchase orders.
The City can use our ghost accounts to combine billings for regularly used suppliers and isolate expenses for cardholders as well as non- cardholders.
Use PaymentNet to view ghost card transactions and create reports that can be downloaded to your general ledger or accounts payables system. The online statement and payment function in PaymentNet allows authorized employees to view statements and balances, as well as make payments electronically.
Our processor (TSYS) requires that a plastic card be issued for ghost accounts. The cardholder can provide the account number to your vendors to keep on file for all future transactions.
9. In case of emergency, will the City have the ability to request a temporary blanket limit increase for key personnel assigned to an emergency event?
We establish an aggregate line of credit that governs your entire organization. This limit is based on anticipated annual spend and other factors of your program. The limit is set at a level high enough that you should not encounter unwarranted restrictions.
In the event of an emergency, we are dedicated to working with the City to increase limits in an urgent manner to the best of our ability and in accordance with bank policy.
10. What security measures are in place to prevent unauthorized use or fraud for purchasing card transactions? What is the process for reporting and resolving fraudulent or unauthorized transactions on a purchasing card?
Educating your cardholders about proper use of cards is an effective way to promote card usage for legitimate business purchases. We work closely with your organization to develop effective communication and training tools that accommodate your objectives.
In conjunction with ongoing training, we recommend that you develop formal policies and procedures governing your commercial card program. We can assist you in preparing this documentation.
To further assist you with cardholder compliance, we offer a wide range of card controls to help your organization efficiently manage adherence to your internal policies.
Ghost accounts help you:
Control supplier spending
Consolidate purchases into
a single bill and payment
Make sure preferred
suppliers are used
Make sure transactions are
marked for accounting
purposes by utilizing cost
centers or department
codes
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Program controls
We offer numerous card controls and key administrative features such as full hierarchy support, real-time adjustments of spend controls online and denial at the point of sale for transactions that do not meet your requirements.
The City’s program administrator can establish dollar, transaction, merchant category code (MCC) and cash advance limits at any level of your hierarchy: by individual, department or for the entire organization.
Control options by hierarchy level
Figure 23
PaymentNet provides a variety of controls for all level of your organizational hierarchy.
Standard controls available for our commercial cards include:
● Dollar limits: Dollar limit controls include cycle spend, transaction amount, daily spend amount, monthly spend, and spend limits by MCC
● Transaction limits: Limits can be placed on the number of transactions allowed per day and per month
● MCC restrictions: Limits can be applied to MCCs with a dollar amount, transaction value or the number of transactions allowed per day
● Cash advance controls: You have the ability to control monthly cash advance amounts or totally restrict the ability to use the cash advance options
● Guidance line: Suspends your ability to continue to use the card when the total balance reaches its limit
The graphic below shows how you can change a cardholder’s account limits. 450
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Adjusting account limits
Figure 24
J.P. Morgan enables program administrators to easily change account limits and velocity controls online.
MCC blocking
The merchant category code (MCC) can be used to block merchants and set card limits. The City specifies acceptable and restricted merchant types and set restrictions for individual cardholders, departments or the entire organization.
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Leverage up to 180 MCCs per group in as many as nine MCC groups. MCC groups can have a custom name applied for your internal purposes. Available limits include daily number of transactions, daily spend amount and monthly number of transactions. We can also place boundaries by MCC group to determine how much a cardholder can spend at a group of merchants. This MCC group limitation can be restricted by daily number of transactions, transaction amount and monthly spend.
As a best practice, clients usually establish templates of MCC groups that apply to different cardholder profiles. We are happy to assist you in opening or blocking MCC groups as needed.
Virtual card controls
Our virtual cards provide superior control over transactions, as each account is used for a single transaction and is only valid for that specific payment. The following controls can be assigned to each virtual card:
● Single, daily, and/or monthly limits
● Credit limit—to the penny
● Merchant category code (MCC) restrictions
● Number of authorizations
● Start and end date
● Dollar amount or percentage tolerance
● Estimated freight and tax
Benefit from fraud screening 24/7/365
As a result of our screening process, fraud rates for our Commercial Card programs are far lower than the fraud associated with consumer cards, which speaks to the strength of our fraud prevention practices, as well as our relationships with clients in establishing effective card controls.
Our team of experienced fraud prevention analysts use specialized screening tools to constantly monitor transactions for suspicious activity and to aid in detecting fraud and minimizing losses.
The fraud detection systems we use are flexible and target both general and specific fraud trends.
The screening process uses several indicators to identify possible fraud.
The categories we monitor include unusual purchases such as jewelry or electronics, high-risk MCCs and questionable geographic areas.
Cash advances are also monitored for high-risk locations and large dollar amounts. Suspicious transactions are further identified based on details that include the authorization type, merchant type, location of recent fraud trends, account history, Screening for fraud
Criteria are defined based on
analysis of data from current
fraud trends:
Fraud patterns
Specific or high-risk
Merchant Category Codes
(MCCs)
Dollar amounts and cash
advances
Geographic location
Specific merchants and
unusual purchases such as
jewelry or electronics
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expiration date entered and decline reason. If authorizations meet these pre-defined criteria, the account is sent to a fraud handling queue or blocked for referral.
Upon request, our Fraud team will provide a detailed walkthrough to the City’s executives and program administrators explaining how we address fraud in depth. The walkthrough includes collaboration with your program administrators to identify and implement ongoing improvements.
Communication process
When a potentially fraudulent transaction is identified, a fraud analyst will evaluate the account’s history and activity. If fraud is still suspected, the analyst will contact the cardholder to confirm card possession, verify the cardholder using security identifiers on file and validate the transaction(s).
As an option, cardholders can enroll to receive fraud alerts via text message or email. Fraud alerts notify cardholders when suspicious transactions are identified on their account and allows them to quickly respond to validate transactions.
Depending on the circumstances, we may continue to monitor the account for suspicious charges or suspend it temporarily to minimize potential fraud losses. If we suspect employee misuse of funds, we will contact the City’s program administrator directly.
Enroll to receive potential fraud alerts via SMS text message or email
Under most circumstances, an email is sent to the cardholder at the email address on file and a temporary hold is place on the card. The hold will remain on the account until an authorized party contacts us to confirm the validity of the transaction. After the first attempt, we will email the cardholder a second time. On the third attempt, we will email the cardholder and program administrator.
Cardholders can sign up for SMS and email through the fraud alerts process by visiting ccportal.jpmorgan.com. Once the cardholder is registered for alerts, the cardholder is notified via an alert when we find suspicious activity on their account.
If the cardholder is signed up for SMS alerts and a transaction is identified as suspicious, an SMS alert is sent to the cardholder’s registered phone number. If the transaction is valid, the cardholder can respond indicating such and the hold is removed. If the cardholder responds indicating the transaction is fraudulent, the hold remains and the cardholder is required to call Customer Service. 453
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Process for identifying and communicating fraud (if not enrolled in alerts)
Figure 25
These steps help to mitigate fraud losses.
Additional fraud protection
As a client you also benefit from our third-party fraud waiver and Mastercard’s/Visa’s liability waiver for employee fraud to complement our fraud screening.
Due to the sensitive nature of fraudulent transactions, we require that fraud be reported by phone to an expert in our Fraud department. Reporting fraud by phone makes sure that all fraudulent transactions are identified as soon as possible. The card is blocked and no further transactions can be processed, immediately stopping fraud attempts.
There are also systematic processes to provide for timeliness of opening and resolving a fraud case, as well as requirements put in place by Mastercard/Visa. In most cases, we can provide a complete resolution in one call, which avoids multiple call-back attempts and saves time on resolving any open issues. 454
Section P - Technological Controls & Cybersecurity | 137 | Section P - Technological Controls &
Cybersecurity
1. Provide a detailed summary of your bank’s technological controls including physical access, logical access, change controls, remote access, cyber security training frequency, and defenses against any form of cyber-attack.
The firm is committed to protecting the Firm’s employees, visitors, buildings, information, assets, and reputation. The Firm's Global Security (GS) organization sets out a framework for keeping safe the people, technology and facilities of the Firm. GS integrates an array of technologies and people with processes to form a depth and layered approach to security, which monitors, records and deters potential malicious activity.
Physical security controls include but are not limited to the following:
● Integral to delivering this requirement are three Global Security Operations Centers (GSOC) in New York, London and Singapore, that operate 24/7 and act as communication and situational awareness hubs for the Firm's Crisis Management structure.
● An access card is issued to every employee, and access to individual areas is checked and restricted by the user’s entitlements.
● The Firm has a visitor management policy that requires all visitors to be registered and escorted whilst on premises, which is enforced by Front of House teams. Some vendors may be allowed access and an access card upon successful completion of screening/vetting in line with the Firm’s contingent worker process.
● Protecting the Firm’s sensitive physical areas, such as, Technical and Engineering Rooms, Data Centers & Commodity Locations with an enhanced layered security model. ● Protecting the Firm’s data from theft, fraud, corruption, or natural disaster. ● Protecting the Firm’s staff whilst travelling (Executive Protection, Event Security for employees, clients, and guests).
Each of the Firm’s facilities has security systems installed (as per GS standards and procedures) and 24/7 personnel monitoring alarms to manage access control and visual surveillance. All data is retained in accordance with the Firm’s data retention policy, which is aligned with local legislation and requirements.
Guarding Physical Assets (24/7 Site Security Teams) – A combination of full time employees and vendor guard force manages security operation and alarm responses, and detect and resolve on site incidents through a layered security model. A full phased training program is in place for all associated staff, and regular testing, including penetration tests, take place on a consistent basis.
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Section P - Technological Controls & Cybersecurity | 138 | All production computing environments are required by our policy to maintain adequate physical and environmental controls. Physical control requirements include physical locking mechanisms at all external and internal access points to computing facilities, and controls governing how authorized visitors are permitted physical access to these facilities. Visitors must be issued identification badges, accompanied by authorized personnel while on the premises of the computing environments and their arrivals and departures must be recorded. A process is in place to periodically recertify that physical access remains commensurate with job responsibilities, or to periodically revoke all users requiring re-approval of their access.
Environmental control requirements include the presence and periodic testing of backup sources of electrical power and switchover mechanisms to allow use of these sources in the event of the failure of municipal power facilities. Environmental control requirements also include the presence of fire suppression systems, temperature and humidity control systems, and automated monitoring of smoke, temperature and humidity conditions within the computing environments.
Please also refer to Appendix 7 for our Cybersecurity Client Letter and Appendix 6 for our Business Resiliency Client Letter.
2. Are there specific cybersecurity policies and practices that your bank implements to meet government and public sector standards?
Yes. The Firm's Cybersecurity & Technology Controls (CTC) organization is embedded in a governance structure designed to identify, escalate, and mitigate information security risks. CTC legal and regulatory functions together with the firmwide Legal and Regulatory organizations to ensure that legal and regulatory requirements are understood, managed, and observed.
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Section Q - City Disaster Preparedness Program | 139 | Section Q - City Disaster Preparedness
Program
The City requires assurance of the ability to provide financial services in the event of a major emergency and during the disaster recovery period.
1. Please describe any processes in place to assist the City in the event of a natural disaster.
Recovering from, or even avoiding a service disruption, whether a component failure or a full-scale disaster, depends on a comprehensive and effective contingency and business resiliency planning process combined with experienced people to execute the plan. Our business resiliency plans address all aspects of the business—including employees, facilities, systems, telecommunications, and third parties. Our business resiliency plans are living documents that we update on an ongoing basis to incorporate lessons learned. They are also tested regularly to validate the effectiveness and
completeness of the plans.
The preparation
We understand how critical it is to have a business resiliency program in place. When the news hits about potential disaster situations, such as a hurricane, our business resiliency planning program has already activated.
We do extensive planning to be ready for situations where our clients may lose critical infrastructure and resources necessary to transact business, including payroll and deposits, through typical channels.
Our preparation involves information gathering about our clients in the impacted region. This allows us to provide clients with alternative options for issuing checks, submitting payroll and other file transmissions before a hurricane or other disaster event strikes the region. An overview of our Business Resiliency Program is included in Appendix 6. Additional considerations are listed in the below section for helping you plan your organization’s business resiliency program.
Planning for disasters
The importance of preparation
Our global footprint provides built-in
redundancy for many core processing,
operations and service delivery functions.
We have strategically located data
centers and operation centers throughout
the world. This geographic distribution
helps to reduce the impact of a local
disruption on our business.
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Section Q - City Disaster Preparedness Program | 140 | Considerations when creating your business resiliency program We also recommend best practices for our clients’ internal business resiliency planning efforts, such as the following:
● Ensure your mobile information is updated with us, so we can contact you in the event that you are unable to
reach your offices.
● Plan for having sufficient cash on hand to be ready
when your business reopens.
● Ensure any services that are part of your business
resiliency planning program are setup in advance. For
example:
Use J.P. Morgan Access to upload files if you
are unable to send in a direct transmission.
Use J.P. Morgan Access to manually enter transactions. Submit same-day ACH files to originate transactions less than $1,000,000. Update “opt out” status, if applicable.
Consider deadlines for check print outsourcing as part of your business resiliency planning. — Next-day mail – 5:00 p.m. PT
— Same-day mail – 5:30 a.m. PT
Coin and currency
— When using vault, confirm armored courier contact information is up-to-date with your courier.
— When using night drop, consider alternative locations in case the primary location is not available.
Commercial card clients may want to consider contacting your commercial card relationship manager or program manager for assistance with increasing limits, expanding merchant category code groups or verifying account status.
How we helped
We understand the need to have a bank that helps clients navigate both living and working through an actual disaster and the aftermath. We have employees on the ground for these natural disasters, just like our clients, so we understand how our collective businesses and people are impacted by a disaster. We work hard to be there for you and our own people. Understanding our clients and their businesses is key. We were here for our clients when they needed us most. The following examples illustrate how we help our clients during these events:
We’re here to help!
The importance of preparation
In the event of a disaster, we strive to
maintain service at the levels established
during normal operations. We will work
hard to keep our clients informed
throughout the entire event.
458
Section Q - City Disaster Preparedness Program | 141 | ● After a natural disaster, we immediately begins its recovery efforts, including prioritizing cash shipments to branches with the greatest needs, and refunding or waiving certain fees to eligible customers in the affected areas.
● Relationship managers worked with clients to quickly
determine cash flow concerns.
● Our client services associate’s (CSA) knowledge and
understanding of their clients helps them identify the need for action. The constant outreach by our CSAs, coupled
with their understanding of our clients’ needs is an
invaluable asset for J.P. Morgan that provides many
benefits for our clients.
● Our product teams evaluate the storm and take action to determine how the storm may affect our clients. This
prompted a relationship manager and client service manager to reach out to a client to determine their immediate needs. One client’s large geographically disbursed retail presence had them making fast decisions and quick changes. The client was extremely appreciative of our efforts and stressed that of all of their banks, J.P. Morgan was the most effective with communication. We provided daily reports about open branches, allowing this client to make informed decisions about how to make deposits, while battling the floods and effects of the storm. ● Our employees receive emergency housing or other assistance from us after a natural disaster has happened. While the business is focused on taking care of its employees, the bank prepares to help communities across the country—even before a natural disaster has happened. That includes making sure ATMs and branches have enough funds and are up and running so customers can have access to their money when they need it.
Strengthening resiliency during times of uncertainty
Business resiliency planning is key to managing through disruption and J.P. Morgan’s suite of tools can help.
The J.P. Morgan Corporate Treasury Consulting team created a suite of resiliency tools to help you prepare for crisis.
Our suite of tools can help with business resiliency planning
Figure 26
How we helped!
Communication
Understanding time-sensitivity
Understanding client needs
Looking out for fraud
Escalating issues and change
requests
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Section Q - City Disaster Preparedness Program | 142 |
2. If City services are interrupted, would the bank be able to redeposit the last ACH payroll file? Yes. We offer a customized delayed redeposit process for ACH.
3. In case of emergency, does the City have the capability to issue manual checks? Yes, we offer check print services. The City submits check print instruction files through a file upload or manual entry of check data via our online portal.
4. How is the manual check information sent to the bank for inclusion in Positive Pay? The City’s positive pay files can be manually keyed into J.P. Morgan Access.
5. Please describe in detail the bank’s compliance with state and federal regulations pertaining to this area.
The Firm has a Firmwide resiliency policy that meets or exceeds relevant professional standards (e.g., ISO 22301, 22313 & 22317) and industry best practice. The policy is based on a variety of regulatory requirements that exist across various countries.
The Firmwide policy and standards set forth a logical and detailed structure of guidance for identifying business resiliency risks and establishing appropriate controls to enable the recovery and resumption of the firm’s business operations should they become disrupted.
Resiliency activities of J.P. Morgan must comply with and are governed by several agencies that have laws, rules, and regulations. Within the firm's policy, requirements have been defined for each critical business process to provide essential business and technology service levels to comply with resiliency requirements of the US Office of the Comptroller of the Currency, the US Federal Financial Institutions Examination Council (FFIEC), the Interagency White Paper on Sound Practices to Strengthen the Resilience of the US Financial System and other national regulatory authorities (UK Financial Conduct Authority, UK Prudential Regulation Authority, The Monetary Authority of Singapore, European Central Bank) within the different geographic regions in which we operate.
6. Please describe the testing of core service applications and systems that assure information backup, anti-intrusion, and other privacy requirements.
The Firm has a dedicated Technology Resiliency Program that establishes critical services, capabilities, controls, and procedures designed to promote continuity and recovery of operations in the event of a disruption.
Traditional Data Recovery: Requires applications to fail out of their primary data center, operate from the alternate data center, and return to the primary data center on the same weekend.
Enhanced: Requires applications to exit over a two-week period and operate from an alternate data center for a minimum of five business days. Demonstrates there is sufficient capacity to sustain the displaced load . 460
Section Q - City Disaster Preparedness Program | 143 | Common Invocation Plan (CIP): Exercises most recovery capabilities needed for a true loss-of-site disaster.
Critical and dependent applications are failed out on the same weekend but sustain production workload for at least five business days.
The Firm employs a comprehensive testing approach to regularly validate the effectiveness of the resiliency program under different impact scenarios:
● Tests include simulation exercises and physical tests of recovery strategies; ● Test results are communicated to the Firm's senior management across business and technology functions, as appropriate; and
● The Firm regularly participates in market-wide and industry sponsored exercises.
7. Please describe the operational driver and geographic dispersal of service centers.
Our North American data center locations:
● J.P. Morgan’s North American data centers are located in the Mid-Atlantic, Northeastern and Rocky Mountain geographic regions of the United States.
● J.P. Morgan data centers are located in separate zones from the production location they support. ● Due to confidentiality purposes, we do not release specific details on the location of primary or backup data centers and/or processing sites.
● Additional details on our data center locations cannot be disclosed.
Information on where our data resides:
● Due to confidentiality purposes, the exact location of where particular client data resides cannot be disclosed.
● We generally reserve the right to store, access, view or process data where it deems appropriate, subject to applicable law and contractual agreements
● We have Global Service Centers that process client data. These centers support customers, clients and business segments and back office processing outside of the continental U.S. ● As a global firm we operate several data centers simultaneously for business resiliency purposes and in limited circumstances, we may not keep all data exclusively within the U.S. ● Processing takes place within our proprietary network on protected platforms. ● Data is subject to our internal policies, including risk and control policies, data retention policies, privacy policies and applicable law
Data Center Modernization
We have 32 data centers globally, and recently invested approximately $2 billion to build four new, modern, private cloud-based, highly reliable and efficient data centers in the United States. To date, about 50% of our 461
Section Q - City Disaster Preparedness Program | 144 | applications run a large part of their processing in the public or private cloud. Approximately 70% of our data is now running in the public or private cloud. By the end of 2024, we aim to have 70% of applications and 75% of data moved to the public or private cloud. The new data centers are around 30% more efficient than our existing legacy data centers. Going to the public cloud can provide 30% additional efficiency if done correctly (efficiency improves when your data and applications have been modified, or “refactored,” to enable new cloud services). We have been constantly updating most of our global data centers, and by the end of this year, we can start closing some that are larger, older and less efficient.
8. Can you provide an overview of your bank's disaster preparedness program and business continuity planning?
The firm maintains a world class telecommunications network infrastructure across our global operating facilities and data centers designed to maintain communications in the event of a disaster. Our network is designed with resiliency as a key criterion such that there is site, component, telecom carrier and path diversity to ensure no single event can affect our ability to continue to transact business.
Refer to Appendix 6 for our Business Resiliency Client Letter.
9. What types of disasters or emergencies are covered in your disaster preparedness plan (e.g., natural disasters, cyberattacks, power outages)?
Please refer to Appendix 7 for our Cybersecurity Client Letter and Appendix 6 for our Business Resiliency Client Letter.
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Section R - Implementation Plan | 145 |
Section R - Implementation Plan
1. Describe the overall plan your financial institution would implement to ensure a smooth transition from our current banking partner.
We assign your onboarding specialist, Briana Burtley, to serve as your primary point of contact throughout the process. Your onboarding specialist, who has end-to-end ownership and accountability of the implementation, is responsible for communicating regularly with you and coordinates all activities across the bank. They hold regular, often weekly, meetings to share information and measure progress.
Your onboarding specialist works with you to validate your solutions, establish timelines for implementation and then coordinates with the necessary teams across your organization and ours to complete the setup.
We view the implementation process as a pivotal phase in our relationship and an opportunity to demonstrate the value of our expertise and consultative capabilities.
The onboarding specialist is responsible for:
● Forwarding new account and product documentation, file specifications, start-up packet(s) and procedure manuals to the City.
● Contacting your designated representative(s) to complete all required documentation and determine specific product instructions.
● Reviewing and completing product questionnaires with you, as appropriate. ● Opening required accounts.
● Ordering depository supplies.
● Coordinating with our operations group to make sure products are set up to your specifications. ● Coordinating file and transmission testing with the technical implementation specialist for both teams, which includes:
Transmission options review and setup
File testing
File security
Providing test and reports
Examining all reports and elements of file testing and processing Updating all parties on progress
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● Confirming delivery of personal identification numbers (PINS) and instruction guides. ● Providing required training or other assistance, as needed. ● Monitoring initial depository activity and confirming depository products are working as expected. ● Organizing a post-implementation meeting to review your first account analysis statement ● Coordinating the hand-off to your dedicated CSA for ongoing servicing.
We follow an established project flow and framework when executing the setup of products and services. A sample implementation plan is included in Appendix 8.
Proven project management approach for adding new services
Figure 27
We confirm terms of the proposed process with you. Upon accepting the proposed process:
● Your sales team shares the terms of the proposed process with our Implementation team ● Your sales and Implementation teams discuss the proposed process, exceptions, your goals and special conditions
● Your implementation team schedules a kickoff call, reviews the project plan, identifies needed documentation and establishes a meeting schedule
● You return the required core DDA documents and product-specific documents to Implementation ● Our implementation team works to complete your request and verifies our systems reflect your correct information
● Your CSA is notified of product setup completions
● We coordinate and schedule training requirements with your designated contact(s) ● We provide training, including product manuals and sample completed order forms, at no cost ● We monitor your account for a period of time (to be determined) to verify proper setup, availability, exceptions, etc.
● Your onboarding specialist confirms with you that products are working properly and sets up a meeting to review your first analysis statement
● Your account officially transitions to your designated CSA for ongoing servicing. 464
Section R - Implementation Plan | 147 |
Our proven approach to provide a smooth implementation of your new commercial card program
When you select us as your commercial card provider, we review common issues and best practices during the assessment phase of your program implementation to identify what is working well, what needs to be improved and what benefits you will enjoy from a more optimized program.
Trust a methodology based on 30 years of experience implementing commercial card programs.
We leverage our proven methodology to deliver the City a comprehensive yet streamlined implementation that serves as a strong foundation for your new commercial card program.
Proven project management approach to deliver for your business
Figure 28
You will be assigned a dedicated product implementation specialist who has extensive experience in the commercial card industry. Your product implementation specialist serves as your primary point of contact throughout your implementation. They will manage the implementation process and resources, as well as provide consultation on best practices and process improvement suggestions.
Additionally, a highly trained commercial card support team experienced in implementing programs similar to yours, will assist your assigned product implementation specialist. The support team consists of designated card relationship managers, training officers and technical consultants (who provide expert technical software support). Weekly updates serve to maintain key communication throughout the implementation process.
Each member of your implementation team has well-defined support responsibilities as discussed below.
Rely on your product implementation specialist as your primary point of contact • Oversees all implementation meetings, task lists and
communications
• Confirms that project goals are met
• Develops and maintains the project
dashboards/assessments
• Consults on the design of your card program
• Consults with your organization on cardholder
controls, such as spend limits and MCC allowances
• Determines card issuance requirements
• Sets up cardholder files and coordinates cardholder
settings
• Verifies data integrity and quality for processor
configuration
• Manages hierarchy setup discussions and accounting
code configuration
• Obtains mapper interface requirements for
reconciliation
• Works with you to determine go-live time frame
• Coordinates training requirements and delivery
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Get the technical support you need from your technical consultant • Serves as a point of contact for your technical staff • Assists with data mapping, file transfer and
connectivity
• Offers best practices for data solutions
• Consults on standard and custom technology tools
As a best practice, the same product implementation specialist is assigned for the duration of your implementation. A back-up product implementation specialist may be engaged should your product implementation specialist become unavailable (e.g., vacation, medical leave, etc.). Primary working hours are 6:30 a.m. to 3:00 p.m. PT, Monday through Friday. We work with you to adopt a mutually agreeable time frame, as needed.
2. Describe the on-site training to the City’s staff for the operation and use of the financial institution’s services and automated systems for areas of service.
We are dedicated to providing training that fits the City’s needs. Should on-site training be required to supplement online provisions, your Relationship Manager and Treasury Management Officer can be available to travel to the City and support the Bank’s training curriculum on-site as needed.
We offer onsite initial program administrator training for our Procurement card services. Training is tailored during implementation and delivered after the program is live, and focuses on platform features, best practices and system usage.
3. What is the overall timeline for implementing the banking services, from contract signing to full operation? Please include a timeline and Milestones chart. The City will likely implement various components in a phased-in approach (e.g. 1. Banking services, 2. Procurement card, 3. Virtual AP Payments). Banking is our main priority, while procurement cards and virtual payments can be implemented later in calendar year 2026.
The table below provides the average implementation time for setup of the requested services. Time is measured from receipt of completed documentation.
Treasury services are listed below:
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Section R - Implementation Plan | 149 |
Implementation time averages, resources and critical success factors Service
Expected lead
time (1) Resources Critical factors
Account opening
(2)
2 days • Bank onboarding
specialist
• City cash manager
• Confirm setup requirements
• Receipt of signed documentation
• Due to the U.S. PATRIOT Act and “Customer
Identification Program” regulations, we must
receive all required documentation, properly
and fully completed, before we open an
account
• Information pursuant to the BSA that requires
us to collect and validate the personal
identification information of beneficial owners
and at least one controller
Depository
services
4-10 days • Bank onboarding
specialist
• City cash manager
• Deposit tickets
• Endorsement stamps
• Tamper-resistant plastic depository bags
• Deposit ticket MICR specification sheets are
available electronically; your onboarding
specialist will provide these upon request
ACH Debit Block
Check returns
End-of-day
sweep
1-5 days • Bank onboarding
specialist
• City cash manager
• Confirm setup requirements
• Receipt of signed documentation
J.P. Morgan
Access
2-4 weeks • Bank onboarding
specialist
• Bank training team
• City security
administrators
• City end users
• City IT
• City’s banks
• Confirm setup requirements
• Receipt of Security Administration
Designation Form
• Security administrator and end-user ID
activation
• User and entitlement setup
• Security administrator and product training
• Create ACH/wire files and test upload
process, if applicable
• Non-banks begin reporting
Cash vault 2-3 weeks
(new).
Changes to
existing cash
vault are much
quicker
• Bank onboarding
specialist
• City cash manager
• Confirm setup requirements
• Order supplies for deposits
• IVR instructions for ordering cash
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Implementation time averages, resources and critical success factors Service
Expected lead
time (1) Resources Critical factors
Controlled
disbursement
Positive pay with
payee name
2-4 weeks
4-6 weeks
(with
transmissions)
• Bank onboarding
specialist
• Bank training team
• City A/P team
• City security
administrators
• City end users
• Confirm setup requirements
• MICR and payee name testing
• Create positive pay file and test upload
process
• User and entitlement setup
• End user ID activation
• Product training
• Activate positive pay
Remote Deposit
Capture
Without
lockbox 2-3
weeks
With lockbox
3-4 weeks
• Bank onboarding
specialist
• Bank training team
• City A/R team
• City end users
• Confirm setup requirements
• Order scanner
• Scanner installation
• Product training
ACH direct send
File transmission
connectivity for
prior and/or
current-day BAI2
transmission
Positive pay
transmission
Reconciliation
4-6 weeks • Bank onboarding
specialist
• Bank technical IPM
• Bank connectivity
• City IT
• City connectivity
• Confirm setup requirements
• User acceptance testing setup
• Successful file and connectivity testing
• User acceptance testing sign-off
• Partner key exchange
• Successful production verification test
File
Transmission
Payments (3)
ACH
Wires
Check print
8-10 weeks
(standard file
format)
12-16 weeks
(custom file
format)
• Bank onboarding
specialist
• Bank host-to-host
project manager
• Bank host-to-host
release manager
• Bank technical IPM
• Bank connectivity
analyst
• City A/P manager
• City IT
• City connectivity
• Confirm payment types, file format and
connectivity
• Confirm setup requirements
• Receive check print logo and signatures
• Review/approve statement of work
• Conduct technical/mapping discussion
• User acceptance testing setup and
programming
• Successful file and connectivity testing
• User acceptance testing signoff
• Partner key exchange
• Successful production verification test
(1) The expected lead times are estimates for standard product setups. Actual lead-time varies according to complexity of business requirements. Complex and/or large implementations may take longer than described above. (2) Original paperwork must be received before setup may begin 468
Section R - Implementation Plan | 151 |
(3) The standard file format represents the formats that are implemented without development on the bank side (i.e., ISO20022, ANSI and Global Flat File). The custom file format represents the formats that we support but require development by us.
Your onboarding specialist follows a structured project framework to execute the setup of products and services that have five key phases:
● Phase 1: Initiation and consultation
● Phase 2: Requirements and planning
● Phase 3: Documentation and services setup
● Phase 4: Testing and live implementation
● Phase 5: Transition to Client Service
Actual timelines and resources are outlined once the scope of work has been completed and approved. Your assigned onboarding specialist provides you with a project plan that is specific to each service being implemented. The plan also identifies responsibility for each step of the implementation process.
The implementation lead time is defined within the sample project plan. The start of the services setup is dependent on the City’s availability to confirm the setup details and provide signed documentation.
Procurement card
The following is a high-level example of our implementation timeline:
ACTION TIMEFRAME COMMENTS
Verbal agreement received
Credit approval Prior to contract issuance Banker determines credit extension Assignment of implementation specialist Within 2 business days of notification
Implementation specialist performs
introductory call, if required, with client
to begin the implementation process
Implementation process
Implementation call and implementation
presentation
Scheduled at client’s
convenience
1 or 2 calls (depending on client
requirements and program complexity)
that follow a structured format and
checklist
Receipt and execution of contract Within 10 business days after credit approval
Contract emailed from J.P. Morgan;
should be returned within 5 days to
implement as quickly as possible
Completion of forms (program administrator,
company record, auto debit [if applicable],
cardholder account)
Within 5 business days of
presentation
All forms completed and authorized by
client and sent to implementation
specialist, who is available to answer
questions throughout the process
469
Section R - Implementation Plan | 152 |
ACTION TIMEFRAME COMMENTS
Verbal agreement received
Credit approval Prior to contract issuance Banker determines credit extension Assignment of implementation specialist Within 2 business days of notification
Implementation specialist performs
introductory call, if required, with client
to begin the implementation process
Implementation process
Receipt of cards 7-10 days from receipt of
paper enrollment form or
spreadsheet listing
cardholders
Cards are processed after all forms are
completed and authorized
Card usage begins
Online PaymentNet reporting tool available 1-3 business days for access
Training is typically
completed within 10-20
business days
Contact to schedule client training
within 5 business days. Training is
scheduled and conducted by a
PaymentNet trainer
Please be aware that, before we can begin, we will need a signed contract in place. Also be aware that we require various forms to be completed at different points during the implementation process. Such forms might include completed authorized signer and company record forms as well as cardholder account forms or a cardholder enrollment file (spreadsheet). We also require that two to three years of audited financial statements be reviewed by a J.P. Morgan banker to support the establishment of a line of credit for your program.
Your implementation specialist will work with the appropriate the City managers to determine your program objectives and structure your program to achieve those results for your organization. We can help optimize your program and identify expansion opportunities. In addition, your implementation team will collaborate with you to configure your hierarchy structure and the reports, formats, and reporting methods suited to your organization.
Once the program build is complete and cards are delivered, your product implementation specialist will transition you to our service team.
Implementation for virtual card programs
Our virtual card implementation process is focused on integrating our solution with your existing financial systems and your current purchasing and payment processes.
Once you have an approved purchase or payment, your system simply requests a virtual card to append to that approved document. This allows users to continue employing your current systems for all procurement and reporting activities, without the need to access a separate J.P. Morgan system.
The timeline to implement a virtual card program is generally 75 days and our approach is easy. 470
Section R - Implementation Plan | 153 |
Three-phased, easy implementation approach for virtual card
Design
• You engage with your experienced J.P. Morgan product implementation specialist • You provide insights into your organization, your culture, program objectives and processes • Our product implementation specialist recommends program solutions to meet your needs efficiently and expeditiously
Build
• We finalize program elements together so the solution meets your expectations • We assist your Technology team with file development and integration with your financial system
Launch
• Your product implementation specialist confirms your program is successfully integrated into your organization
• Next, your product implementation specialist provides the tools and resources for successful supplier recruitment and onboarding
• As you continue to work with your vendors, you can confidently manage your program
The following is a high-level project plan for the critical activities and milestones for the proposed solution.
Project Plan
Figure 29
Please note that the campaign management and supplier recruitment process runs concurrently with implementation. It typically takes approximately 12 weeks to complete (including preparation and campaign time), but may be shorter or longer based on your number of suppliers to contact and on your level of engagement.
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Throughout the course of implementation, product implementation specialist and other service team members conduct regular project status and progress review updates including:
● Weekly implementation status calls with the J.P. Morgan implementation team to review overall status and cover key action items and outstanding issues for both technical and business teams ● Weekly recruitment reports to summarize and detail progress of the J.P. Morgan supplier recruitment campaign
4. Can you provide examples of similar governmental implementations you have successfully completed? Please include the city name and contact information.
Please see our references and contact information in Section B – Bank Services to Public Sector, References.
5. Will a dedicated implementation manager or team be assigned to oversee the transition and ensure deadlines are met?
Yes. Your onboarding specialist will serve as your primary point of contact throughout the process. They will have end-to-end ownership and accountability of the implementation, will be responsible for communicating regularly with you and coordinating all activities across the bank.
6. Describe the conversion allowance the bank will provide for the City. Please state a specific dollar amount and identify the supplies, products, and/or services included.
The transition credit is $6,000 and can be used over the first 9 months of the contract. It can be applied to the purchase of remote deposit scanners, deposit supplies, and general banking services.
7. Please detail all costs and the party responsible (bank or City) associated with the conversion of all new services and equipment.
We have waived the $1,000 implementation cost; all other costs are outlined in our proforma. 472
Section S - Service Enhancements | 155 |
Section S - Service Enhancements
The City values improving, streamlining, and enhancing current processes and services. Based on the information provided in this RFP and your knowledge of the public sector, please describe any services or technological enhancements not previously mentioned that should be considered for further improving effectiveness of the City’s treasury management operations and fraud prevention programs.
Our particular expertise lies in adapting and aligning our vast breadth of solutions to the specific operating requirements and environments of our clients.
We accomplish this by listening to our clients and developing an understanding of their operating environments. We then construct a solution that not only meets our clients’ existing operational needs, but also challenges them to consider additional operational improvements.
It is our intent to bring this same approach to the City as we endeavor to strengthen and grow our relationship.
The services below are proposed to augment and complement the requirements included in the RFP. Each of these services is incremental to the solutions presented in the body of our response. Pricing for these services will be provided upon request. Some of these services may be familiar from our past discussions in 2024. ● Account Validation Service (AVS)
● J.P. Morgan Entity Validation Services (EVS)
● J.P. Morgan Concourse™
● ACH eLockbox
● Paymentus® J.P. Morgan relationship
Account Validation Service (AVS)
As reliance on electronic payments continues to grow, so does the need to validate and authenticate payment data. Our industry-leading Account Validation Service (AVS) allows you to originate payments with confidence, combatting fraudsters and reducing risk.
AVS is a routing engine and service offering for validating counterparty payee information using the bank’s Early Warning® databases. Using data provided by you, the service verifies the status and/or ownership of a U.S. demand deposit account (DDA).
AVS offers:
● Account Verification: Uses bank routing and account number to provide real-time account status for consumer and business accounts ● Owner Authentication: Confirms customer and business identities and enables clients to confirm account owner or authorized user AVS for the U.S.
government
In 2023, the United States
Treasury Department
selected J.P. Morgan to
provide Account Validation
Services to federal
government agencies after a
competitive selection process.
Using our advanced
technology, we will verify
critical payment information for
the U.S. government before
payments are issued.
473
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Account Verification and Owner Authentication are not required to be done together.
Additionally, Account Validation Services:
● Enables proactive validation of accounts and does not rely upon a single data provider ● Offers a waterfall approach, which allows querying across multiple data providers, expanding reach ● Queries J.P. Morgan proprietary data—both credit and debit ACH transactions ● Offers a complete solution set to meet your account validation requirements and to satisfy compliance requirements with the Nacha WEB Debit rule
Act to combat fraudsters and reduce risk with J.P. Morgan Account Validation Services
Figure 30
Our solution allows for integration through multiple interface options, including API, file transmission or through manual single- or batch-level entry of inquiries into our J.P. Morgan Access online portal. Although we see that most clients only implement and leverage a single connectivity method, all three connectivity options can be used alone or in conjunction with each other and will leverage a range of data elements for the following attributes:
● Verify ABA and account number
● Verify account open or closed status
● Verify historical risk on accounts
Our AVS solution was built specifically to allow us to offer validation services to our client base without being tied to a single data or service provider. AVS optimizes the flow of information and real-time validation by leveraging multiple data sources, including proprietary J.P. Morgan ACH and account data, Early Warning and additional third-party fintech services and micro deposits to increase validation rates. 474
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How J.P. Morgan Account Validation Services works
Figure 31
(1) AVS with EWS databases meets the Nacha Rule Requirement (2) Option available based on clients’ needs
J.P. Morgan Entity Validation Services (EVS)
J.P. Morgan Entity Validation Services (EVS) delivers a convenient and secure method to help verify individual identity or business entity information in connection with your payments initiated through J.P. Morgan to help prevent fraud and manage risk. Product availability, features and functionality are subject to change. 475
Section S - Service Enhancements | 158 |
Consider the following uses for EVS as you think of fortifying your business processes
Figure 32
EVS provides two key verification functions
Identity Verification automates the verification of your individual client’s or counterparty’s personal identity data such as name, date of birth, address and government issued ID number(s) against internal and third- party sources prior to onboarding and initiating payments.
Business Verification automates the verification of a business entity’s data such as a business’ name, registered principal business address and government issued ID number(s). Also, you can expect verification of submitted related parties such as Underlying Beneficial Owners of the business and authorized signers.
EVS is currently in pilot and is expected to be generally available at the end of first quarter 2025. Please note product availability, features and functionality are subject to change.
How EVS works
Figure 33
476
Section S - Service Enhancements | 159 |
(1) May include underlying variance details, third party summary score, third party reason indicators Help your business operate more smoothly—and securely
EVS offers many advantages to help your business:
● Mitigates the risk of fraud: Verify identity of those that you do business with—in real time—to onboard counterparties onto payments platform
● Detect potential fraud: Review information from payee change requests before updating details, mitigating risk of redirection of funds to unauthorized recipients ● Increase operational efficiency: Custom response mapping to support client decisioning based on internal payment risk tolerance, reducing operating costs of manual reviews ● Accelerate expansion of marketplace solutions: Validate counterparties for successful onboarding to your platform and be ready to sell and receive payments ● Enhanced security: EVS uses J.P. Morgans global network of trusted data sources and does not retain personally identifiable information
Make EVS work for you
Figure 34
Notice:
These services are not intended to, and do not, satisfy any regulatory or other requirements for the establishment or maintenance of any Sanctions, Anti-Money Laundering, or Know-Your-Customer program. Clients using entity validation service products remain subject to and solely responsible for compliance with their own regulatory and sanctions obligations. Use of the services does not constitute a guarantee that transactions will be processed for verified or screened counterparties.
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J.P. Morgan Concourse™
Our vision provides the City with the flexibility to control your customer experience while leveraging J.P. Morgan’s access to payment channels as they come to life.
Our new digital platform, J.P. Morgan Concourse™, is a secure, digital experience for consumer and small business payments which encourages electronic payment adoption and reduces the burden of collecting, storing, and validating payee payment information. You can securely initiate electronic payments with just an email address.
Concourse offers the flexibility for the City to initiate payments to your counterparties intelligently and offer them a variety of payment options to choose from. You can opt to offer traditional payment methods such as same day or next day ACH, or you may choose more “instant” options, such as Zelle, J.P. Morgan Real Time Payments, or push to card (Visa or Mastercard-branded debit or reloadable prepaid card).
In the future, Concourse will also support Push to Wallet into the recipients’ PayPal or Venmo wallet.
The City is in control, and we can easily add (or remove) methods of payment available as you desire. This flexibility even extends to changing options among different programs to meet respective line-of-business needs where regulatory requirements might exist.
Concourse is primarily positioned as a B2C payment solution that also supports the ability for vendors and suppliers (B2SB) to enroll and receive electronic payments.
Providing a streamlined and intuitive user experience to the customer Our Concourse platform offers a modern, intuitive and simple interface to payees receiving payments from the City. Concourse offers automatic payment communications to payees via a City-branded email or SMS text. In addition, a City-branded customer portal is available where payees can review payment details and accept payments through their preferred payment method made by you.
We offer a seamless experience for the City’s payees to select their preferred method of payment based on the payment options that you make available. Whether that individual is representing themselves or their small business, our model is designed to support the City’s beneficiaries.
You can customize the payment reference information to make information available to payees in the Concourse interface, including adding specific legal verbiage or marketing adage.
Concourse provides the City the ability to apply customized content and styling to your payee facing portal while supporting multiple languages, such as English, French and Spanish.
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Online and Mobile Portal
Concourse’s online and mobile portals are user-friendly and enable your payees to accept electronic payments quickly and efficiently.
Concourse is highly configurable to match the look and feel of your organization. It supports robust branding and style customizations on the website. You can include your logo, colors and themes, and terminology. In addition, you have the option to co-brand with the Chase logo, providing your payee with additional assurance that a trusted financial services provider powers their payment experience.
Concourse’s online and mobile portals provide an integrated experience. The mobile portal automatically adjusts the layout when using a mobile device. This technique, known as responsive design, provides a unified way for the City to integrate desktop and mobile user experiences into your payment process.
Concourse supports a variety of digital workflows that can be configured to the specific use cases you want to support, including:
● Enrollment to receive recurring electronic payments
● Guest checkout for one-time payments
● Viewing historical payments and remittances
● Viewing and editing user profile information
The City’s Concourse portal can be integrated with your existing website in one of the following ways:
● Direct Access URL: A web address that is specific to your Concourse portal and can be distributed to your payees
● Secure Session Transfer: Place a session transfer button on your website that can link directly to your Concourse logon page using HTML (POST), or securely transfer an authenticated payee directly into Concourse without having to log on a second time
● Embedded Widgets: Leverage your existing supplier (payee) portal and embed Concourse screens to display or capture payment methods, giving you peace of mind knowing all payment information is stored securely on Concourse servers
● API Only: Build your own payee experience using our security and our payment capabilities. Concourse securely stores your payee’s bank account information for payees to use for future payments Concourse’s online and mobile portal is designed to provide your payees with seamless and efficient self- service capabilities. Concourse’s extensive configurability serves clients across a broad spectrum of industries and verticals. It is specifically positioned to help the City achieve your payables goals.
The City supplies your payee’s email address, payment amount, name and desired remittance data to send a payment through Concourse.
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We then send an email to your payee that contains a link to launch our intuitive payee portal—branded to the City. ● The payee has the option to accept the payment and enter in their preferred payment method ● Accepted payments are sent into the payee’s account
● For rejected payments, you have the option to have us print and mail a check ● You determine the remittance data that is provided to the consumer and the length of time the consumer has to accept a payment offer before it expires
If the payee does not accept the payment offer in the designated time, you can have us turn the payment offer into a mailed paper check with no further action needed from you.
ACH eLockbox overview
We offer you an electronic payment consolidation service to help you save time, improve productivity and reduce costs.
Here’s how we can help you streamline receivables posting with this service:
● Consolidation of electronic payments received from multiple sources into a single deposit
● Quickly crediting your account on the morning of the next business day after receipt of payments
● Convenient posting to your back-office system because our Transaction Repair service allows you to review and repair exception items online
● Streamlined single accounts receivable data file that’s uploaded into your back-office system
WHY WORK WITH US?
We offer eLockbox consolidation
for bill payments and remittances
from more than 70 providers,
including Fiserv, FIS, MasterCard
RPPS, IPP, ORCC, i-Pay,
MoneyGram, Western Union,
Yodlee, U.S. Government agencies,
and the Federal Reserve Bank,
among others, enabling you to
streamline your accounts receivable
update process. 480
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Transaction Repair is available through J.P. Morgan Access We designed Transaction Repair to help you review and repair exception items online for faster posting to your back-office system. Just submit returns and notifications of change to your originators online through our Transaction Repair service or J.P. Morgan Access Transaction Services to correct future issues and improve straight-through processing.
How ACH eLockbox works
● First, the City notifies your payment processors to send the payment files directly to your ACH eLockbox. We work with each processor on your behalf to complete the payment redirection. ● Your customers send you payments electronically (e.g., online banking, credit cards, bank by phone, government remitters).
● After validating the billing account numbers and data match each transaction, we consolidate the payments automatically on receipt.
● A single credit, along with remittances, posts to your account—all in the same business day.
ACH eLockbox: How it works
Figure 35
Added security
We help protect your account information by issuing you the City-specific account number that’s used to collect payments into your ACH eLockbox account. This account number is translated to your actual account number by our back office.
GIVING YOU AN ADVANTAGE
ACH eLockbox service improves
consumer satisfaction through
faster:
Payment posting
Research
Problem resolution
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Section S - Service Enhancements | 164 |
Streamlined information reporting
We format daily remittance data into either our standard accounts receivable format or your proprietary format, such as:
● Billing data
● Corresponding dollar amounts
● Transaction edits
Data gets routed directly to your back office through ACH eLockbox. Plus, we provide batch ranges for the electronic payments.
We also offer you the choice of integrating the data into our file management service (File Transmission Receivables and Advising Reporting), which retrieves and consolidates lockbox, ACH and wire payment details and transmits it to your accounts receivable system.
Improved settlement and customer service
With ACH eLockbox, you have access to timely payment information, which allows you to respond to your customer inquiries without delays. It also helps you avoid unnecessary service disruptions by shortening the payment settlement process by up to two days.
Efficient exception processing
With ACH eLockbox you receive an exception report that shows where payment edits failed. This helps you reduce manual exception processing hassles and collection costs linked with your bill payment service providers’ “check and list” information. As a result, your staff can:
● Address and return exceptions more quickly to the originator ● Have notification of changes automatically sent to the payment originator for payee database updates ● Search and view remittance information online
● Return transactions and submit notifications of change to originators to correct future transactions Remember to submit returns and notification of change requests using our Transaction Repair service or through J.P. Morgan Access Transaction Services.
ACH eLockbox Transaction Repair
Transaction Repair is an option through J.P. Morgan Access that streamlines the exception process. Use Transaction Repair to review and repair exception items online for faster posting to your back-office system.
We match incoming transactions against your posting rules (e.g., customer reference number or account number) and send you a list of exceptions to review and repair online via the online portal to facilitate posting. 482
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Transaction Repair allows you to return transactions you cannot post or submit notifications of change electronically to the originators to correct future transactions to improve straight-through processing.
Additionally, you can:
● Act on and validate payments from your customers to accept incoming CIE, CCD, CCD+, CTX, web, TEL, PPD and PPD+ transactions
● Automatically receive and review transactions that don’t meet your edit/validation instructions and correct these transactions securely online
When we receive your online corrections by the established cutoff time, we will remit the corresponding payments to you in your designated eLockbox posting file that same day. Further reduce future exceptions with our Auto Repair feature, where any repairs you make will be automatically applied to any future incoming items with that same erroneous information.
ACH eLockbox Transaction Review and Repair: How it works
Figure 36
Auto Repair Option: Let us correct and repair transactions automatically and then send to you for automatic posting.
Reporting, posting and funding
We post one payment to your bank account at the opening of bank business. This total correlates to the total of the detailed payment file transmitted to you. The daily posting files and other standard reports are delivered through J.P. Morgan Access.
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ACH eLockbox funds movement timeline
Figure 37
* Subject to applicable cutoff times.
Convenient cutoff times
● Opening of bank business: We consolidate payment activity through 12:00 a.m. PT (subject to applicable cutoff times) each banking day and render settlement and data to you by the opening of bank business. ● Intraday payment file: We report intraday payments, whereby payments made by consumers or corporations that are received by us by 11:00 a.m. PT are reported to you by 2:00 p.m. PT.
Paymentus® J.P. Morgan relationship
Your constituents expect modern methods to view and pay their bills. J.P. Morgan has joined with Paymentus to offer a market-leading, paperless electronic bill presentment and payment solution. Through our collaborative relationship, we offer your customers a seamless and fast payment experience.
Our relationship with Paymentus, the industry-leading eBilling and payment solutions provider, unites innovative technology with the security and confidence of a world-class treasury and merchant services bank.
The resulting solution, Digital Bill Payment, meets your needs for a simplified, secure and customizable experience. It gives your constituents the ability to pay when, where and how they want.
SIMPLIFY AND STREAMLINE
Stay close to the payment
life cycle
Improve reconciliation
Reduce paper float, improving
working capital
Expedite collections with
electronic payments
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Digital Bill Payment provides a single, integrated solution for web, mobile, interactive voice response (IVR) and in- person payments and more. Your constituents can easily view invoices electronically through an online portal and pay a single invoice or multiple invoices with:
● eCheck
● Credit or debit card
● Digital wallets
● In-person cash payments
Keeping it simple
As a fully hosted, single-vendor solution, Digital Bill Payment eases the burdens, pitfalls and fees that come with coordinating various systems. Our solution helps you better manage your billing and payment process. You get access to a spectrum of services and capabilities with one connection and one integration.
Digital Bill Payment provides you with an omni-channel payment solution to meet your current requirements and your future growth opportunities, including PayPal, Venmo and many digital wallets. You choose when and how you enable them—whether it’s today or down the line as your needs change.
No cost services
In addition to our value-added services, J.P. Morgan strongly believes in delivering value without charging clients additional costs to use our services. The table below illustrates that commitment.
No cost services
Notifications Event notifications, including Payment Needs Repair, Transaction Completed, Balance Threshold, User Pending Approval and many more (over 50) to help manage your accounts.
J.P. Morgan Access
Transaction Services
Provides 7 years of wire details for both incoming and outgoing USD wires.
J.P. Morgan Access
Transaction Services
Offers 15 months of historical transaction information on all ACH originated and received payments.
J.P. Morgan Access
Mobile
Provides authorized users with mobile access to account activity, ability to deposit checks and approve U.S. ACH, wires, account transfers and book transfers payments.
J.P. Morgan Access
Help Center
The City is invited to join training webinars found online in the Access Help Center. Our webinars are live facilitator-led web conferences that include question and answer sessions that allow full participation between the audience and the presenter.
You can register for training webinars via Access Help Center.
Online bank statements Provides retention for 7 years of bank statements.
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J.P. Morgan Payments Insights app
We also offer our J.P. Morgan Payments Insights app, which provides timely and relevant payments news and thought leadership.
The J.P. Morgan Payments Insights app makes it easy for treasury, payments, marketing and technology professionals to discover the latest digital and connected commerce insights from our experts.
Current and future app features
Client Stories Solution Insights Event Insights
News Videos Podcasts
Download today
Search for J.P. Morgan Payments Insights in the Apple and Android app stores and download today.
APPLE
Scan with your phone or ctrl + click the QR code
to download from the Apple Store
ANDROID
Scan with your phone or ctrl + click the QR code
to download from Google Play
486
Section T - Additional Services | 169 |
Section T - Additional Services
1. Please discuss the employee benefit programs for City employees and indicate if the bank would be able to participate in City-hosted employee benefits presentations.
Yes, we would be happy to participate in City-hosted employee benefits presentations. We have provided information on the following two services that City employees may find beneficial:
Chase Secure Banking
Chase Secure Banking is a low-cost banking product that can help provide consumers access to a checking account and traditional banking relationship, including those consumers new to banking or who have had trouble getting or keeping a banking account in the past.
Chase Secure Banking works like a traditional checking account but does not allow check writing or wire transactions (incoming or outgoing), and is designed to only allow the bank to authorize transactions against sufficient funds in their account so the consumer will not get overdraft fees.
With Chase Secure Banking, consumers can:
● Access Chase ATMs and branches
● Access the Chase Mobile app and Chase.com to check their balance, send money to friends and family, pay bills, and monitor their credit
● Deposit checks and get direct deposits from an employer ● Make electronic payments (ACH) and set up bill pay
● Use a debit card which is accepted almost everywhere Visa debit cards are accepted ● Access Chase Offers, available on the Chase Mobile app as a way to get more value from purchases
Consumers can sign up for Chase Secure Banking online at chase.com/securebanking or at any Chase branch location.
The monthly service fee for Secure Banking is $4.95/month ($60/year), which allows Chase to deliver a sustainable product, and also provides access to a significantly less expensive banking product for unbanked customers. Consumers can avoid the monthly service fee by having $250 in electronic deposits each monthly statement period. Product terms are subject to change.
The bank continues to innovate and develop products that meet the needs of the communities it serves. Its thousands of branches provide access to home lending, small business funding, and advice on reaching personal and business financial goals, in addition to personal banking needs. 487
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Chase Home Lending Employee Benefit Program
The City’s employees are invited in the opportunity to participate in the Chase Home Lending Employee Benefit Program. This program is a powerful program that provides your employees cost saving benefits on the financing cost of a new home purchase or refinance. This program also provides education and tools that can assist your employees in deciding whether buying or renting a home is the best solution.
The Chase Home Lending Benefit program is only available to employees and retirees of participating companies, universities or governmental agencies that host our offer on their HR/Benefits site. The Chase Home Lending Employee Benefit is supported by a high level dedicated team of Home Lending Advisors that will make certain employees have a team to personally guide them through the entire home lending process.
The program and benefits are not currently available at any of our Chase Banking Centers.
There is no cost to the City to participate in the Chase Home Lending Employee Benefit Program. Once the City agrees to opt-into the terms and conditions and agrees to host our customized URL on your HR/Benefits portal, we will provide you with a dedicated URL giving your employees immediate and ongoing access to the Chase Home Lending benefits and online tools. To see a sample of the page we will create for you once your enrollment is received, click here
.
A team of Home Lending Advisors are ready to serve your employees. Your employees will never need to visit a branch, and their entire mortgage process can be completed online, via the Chase MyHome app and over the phone.
Ready to enroll and/or learn more visit: www.Chase.com/ExclusiveBenefits .
2. What types of programs will your bank offer City employees to open accounts and have their paychecks direct deposited? What provisions will your bank make for employees to cash their checks if they do not have an account with your bank?
The City employees may be eligible to open a variety of Chase checking and savings accounts. Information regarding our consumer banking products and retail branch locations can be found at www.chase.com or by
visiting any Chase retail branch.
We will cash the City’s payroll checks drawn on J.P. Morgan with proper identification. You may elect to have fees charged to the payees or to absorb fees on behalf of the payees. This applies only to payees without Chase; Chase account holders will not incur fees. Reasonable thresholds will be established for you based on the expected activity and risk for the account. The threshold represents a maximum per check limit. 488
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Section U - Compensation and
Reimbursement
1. Please describe how you intend to charge for banking, merchant, and cash management services.
Provide a comprehensive and detailed fee schedule for the proposed services.
Banking services are charged via account analysis and if there is an amount owed, we debit monthly from the City’s designated billing account.
For merchant services, we debit monthly from the City’s designated billing account.
Please see Appendix 3 for our pricing proforma, Appendix 9 for our Commercial Card Consortium pricing and Appendix 10 for our Merchant Services pricing Schedule A.
2. Detail all start-up, and any recurring fees.
Please refer to our pricing proforma in Appendix 3.
3. Outline billing and payment expectations, including timing and method of payment.
As the standard option, J.P. Morgan offers monthly settlement with fees debited on the 15 th calendar day of
the month following the close of the billing period.
Account analysis statements are generated monthly. J.P. Morgan’s electronic billing statements are available online through J.P. Morgan Access on the sixth business day after the close of the billing period.
4. Please define any “extra” services and describe if such services will be billed at a different hourly rate or describe other methods of billing for extra services.
Not applicable.
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Section V - Additional Information | 172 |
Section V - Additional Information
In this section, provide any other information that the Proposer believes is applicable to the evaluation of the proposal or your qualifications for providing the banking and merchant services set forth in this RFP.
You may use this section to address the aspects of your services that distinguish you from others.
Leadership, quality, client advocacy, investment, along with unparalleled scale and commitment to delivering our services on your behalf, differentiates us from other providers and position us to help you achieve your treasury goals.
Differentiator: Industry-leading client service and implementation
Client service. J.P. Morgan earned a Greenwich Excellence Award for customer service in 2023. Based on our client survey for the second half of 2023, 88 percent of clients reported top overall satisfaction ratings with Commercial Banking Client Service, and agreed it is easy to do business with us. We are focused on delivering an outstanding service experience that is responsive, dedicated, proactive, engaged and experienced. Further, our expert team approach includes access to back-up support.
Implementation. In our 2023 post-implementation survey, nearly 90 percent of our Commercial Banking clients surveyed rated their overall experience post implementation as very good to exceptional. We know change can be hard and has a big impact on you, your team and your business. To simplify your banking experience, our onboarding model delivers simple, fast, digital and resilient access to the resources you need.
Differentiator: Insight into industry trends and best practices
Thought leadership. We can help you improve your ability to more effectively and efficiently manage cash while achieving operational cost savings, allowing you to focus on your strategic objectives. Our financial experts leverage their in-depth knowledge of current trends, challenges and opportunities in treasury management to provide tailored financial solutions to help you meet your goals.
Treasury optimization. We develop tactical, analytical outputs to help you with bank and account rationalization, centralized treasury structures, performance benchmarking diagnostics, payables and receivables optimization.
Guidance. Integrate a new treasury practice seamlessly as our dedicated Corporate Actions team shares guidance on mergers and acquisitions, spin-offs, divestitures and asset sales. We help you prepare by evaluating existing banking services and cash processes, developing customized treasury integration plans for specific transaction targets and constructing roadmaps to consolidate, simplify and scale treasury activity to improve visibility and overall efficiencies.
Differentiator: Safety and security
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Cybersecurity. We invest significantly every year in cybersecurity to maintain our defenses and actively enhance our threat resiliency. While we do a lot by investing millions in cybersecurity annually to protect our systems, it’s most critical to educate our clients—and you in turn, educate your employees—on how to take action to counter fraud and mitigate risk. We help keep you abreast of the latest potential threats with our webinars. And when you experience a threat, leverage our Cyber Security Operations Centers working 24/7 around the world with dedicated cybersecurity staff providing follow-the-sun coverage.
Safer payment methods. Besides providing fraud protection services like positive pay, we can help you accelerate conversion to electronic payments, use technology to monitor and reconcile transactions and outsource non-key functions, such as check printing.
As fraudsters become more sophisticated, we’ve collaborated with Early Warning to offer an authentication service for payer or payee account information prior to transaction processing. Let us help mitigate risk for your supplier payments and customer collections and curb the potential for fraudulent electronic activity and administrative returns.
Differentiator: Payment leader
Scale advantage: Capture scale from the firm that ranks #1 in U.S. dollar treasury and commercial clearing—as of 2023, processing $3.5 trillion in daily wire payments and $40.3 trillion in originated annual ACH payments. You benefit from later deadlines, faster clearing and operating efficiencies.
Proprietary platforms. Integrate payments seamlessly through our proprietary payments and imaging platforms, as well as commercial card and merchant processing solutions.
Industry influence. Our key industry positions in organizations like Nacha, the Faster Payments Task Force and the New York Federal Reserve lend us opportunities to impact the payment industry and share first-hand insight on modernizing payments and drive change for our clients. We translate that to better products and services for you.
Differentiator: Treasury integration
Open banking: For years we’ve supported integration of clients using SAP, Oracle, PeopleSoft, J.D. Edwards, Microsoft, etc. to our banking systems. We build upon our experience to help clients reduce implementation efforts by integrating value-added services through our collaboration with key ERP, TMS providers and FinTech.
API: This enhancement provides opportunities to explore new ways to deliver our capabilities, services and information to clients on-demand.
Enjoy seamless communication and a more fluid end-user experience as APIs accelerate the shift from batch to real-time processing. Additionally, APIs enable batch processing of payments across multiple banks and assist with information received to reconcile payments.
What can be better than saving money, boosting efficiency and reducing your environmental footprint?
491
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In response to persistent competitive and regulatory pressures, organizations around the world are developing new policies and adopting best practices to boost financial performance, such as:
● Faster payments
● Fraud and risk mitigation
● Adoption of payments standard ISO 20022
● Environmentally responsible paper production and consumption practices ● Mobile and tokenized payments
Leverage your treasury strategy to improve working capital, reduce processing costs, mitigate risk and build a business case for automation.
We are here to help
Automating may be easier than the City thinks, and we are here to help. Get the help you need from our variety of tools to help treasury managers:
● Review current operations
● Develop a strategy to migrate to a paperless environment ● Reduce redundancy by adopting an electronic treasury platform We are going where you need us to be. We are delivering on a global scale, all built on the same principle: valuing our relationships so we can make things easier for you.
We are building the business you have asked for so we can help you grow. Building relationships that last, we help you unlock a brighter future with solutions that match your needs and make your treasury operations more efficient.
Our connectivity vision involves fully hosted solutions that offer streamlined integration with leading Enterprise Resource Planning (ERP) and Treasury Management Systems (TMS) providers, as well as a growing API suite that provide enhanced experiences.
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Section V - Additional Information | 175 |
Focus on progress
First, the City may want to determine the electronic payment method that provides the optimal cost and efficiency benefits by treasury function, while also considering the steps that are easiest to implement.
Next, identify key barriers to meeting optimal automation and work with service providers to overcome them.
Consider using enrollment/procurement portals and technology platforms to exchange invoice and remittance information.
Then, remember to decide how to measure success—establish goals and develop metrics to measure progress.
Quantifying cost savings and benefits can help make a compelling business case to management. You may find it helpful to offer incentives to staff, customers and suppliers to accelerate the move to the electronic method of choice.
Moving from paper-intensive approaches to electronic processing
Figure 38
Making progress and moving from paper-intensive approaches to electronic processing is the key to realizing cost savings and a green treasury.
Keeping current and competitive
Our clients need to easily integrate innovative solutions into their daily business operations to take advantage of greater convenience, information accuracy and increased efficiency. We work closely with our clients to understand their current needs and anticipate future needs.
For example, J.P. Morgan has a long-term commitment to leading the industry’s transition to electronic payments.
We support the expansion of check image, Internet-based technologies and the use of artificial intelligence for improving transaction return processing and limiting administrative returns, as well as automating fraud detection and prevention efforts.
Leadership and influence
Our clients benefit from our industry influence. J.P. Morgan Treasury Services is an active member of industry forums and roundtables sponsored by groups such as the Bank Administration Institute (BAI), Association of 493
Section V - Additional Information | 176 |
Financial Professionals (AFP), X9 Accredited Standards Committee, hardware/software vendors, the Federal Reserve and the National Automated Clearing House Association (Nacha).
Our involvement on boards and operational committees lends us opportunity to share the course and direction of the payments market. For example, our active participation on the Nacha Board of Directors, the Rules and Operating Committee and the Clearing House Payments Association, allowed J.P. Morgan to play an integral part in the formation of the new Nacha Same Day ACH Rule changes on behalf of our clients.
Blockchain
The promises and potential implications of blockchain technology are too significant to ignore. As part of our approach to blockchain, the Blockchain Center of Excellence (BCOE) was established in 2015 to execute a comprehensive distributed ledger technology strategy. J.P. Morgan is a member of the industry consortia Enterprise Ethereum Alliance and the Linux Foundation’s Hyperledger Project. Our investments focus on research and development of blockchain solutions and applications of this brand-new industry-leading technology to bring value to our clients. The BCOE is engaged in:
● Building an industry leading, enterprise ready distributed ledger technology (DLT) stack by working with highly talented engineers and leveraging open source and in-house built systems ● Developing and maintaining strategic relationships with DLT providers, whether startups, established technology vendors or industry consortia
● Leading the industry’s adoption of this technology via targeted and active participation in key industry forums and building relationships with other industry participants ● Working with industry regulatory and organizations to ensure legal, regulatory compliance and information risk considerations are evaluated and properly addressed when driving industry adoption The pipeline of business use cases is constantly evolving and communication of our efforts within specific use cases is limited to what is disclosed in the press already. Two of these include cross-border wholesale payments processing and post-trade securities services
The firm sees a lot of potential with technology, which eliminates a redundant middleman by applying decentralized trust models while at the same time creating transparency and faster settlement of transactions.
J.P. Morgan is actively involved in both the business requirement development and engineering research and development work needed to bridge the gap between proof-of-concept and production technology. Mass adoption timing depends on cooperation and collaboration in the marketplace.
Innovation
Client feedback and demand drive the development, design and implementation of our product enhancements. We constantly evaluate existing product delivery platforms and processes, gathering information from direct customer contact, internal customer contact personnel, other banks and regulators.
An example of this commitment was the creation of new alerts and Transaction Services within our portal, J.P. Morgan Access. Clients asked to be alerted when there were issues with executing a wire transfer or when Fed or CHIP wire transfer funds were returned. These alerts are now available on the portal’s home page. 494
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Our financial strength and scale allow for significant investments in technology that enhance the bank’s ability to provide ongoing improvements as technologies advance.
The bank’s product and market management teams actively participate in the design and deployment of new and enhanced services. We continually innovate to enhance our client solutions, reduce processing costs and increase operating efficiency.
Minimizing disruptions
As any change or update we make to our products has the potential to affect our clients, we focus on minimizing disruption when adding new features and enhancing functionality. Our development teams have years of treasury management experience. Our track record for implementing product enhancements quickly and effectively speaks for itself. Additionally, because we do not outsource development, clients work closely with our development teams and bankers to fine tune solutions, implementation and operations.
Development of new services
We continually enhance services based on client input, product expertise and quality management feedback.
Benefit from our commitment to significant resources and investments into product development and technology upgrades to continuously improve service quality and product offerings.
We evaluate all ideas and opportunities to understand client needs, market trends and strategic fit, then drive opportunities through a disciplined product development process, with standard deliverables and value-based decisioning along with entrance and exit criteria.
Clients say our approach fosters lasting relationships and positions us as innovators • Assess: Gather clients to confirm market penetration, competitive positioning and demand • Define: Work with clients or prospects to evaluate the value proposition and proposed pricing models, and identify high-level requirement
• Develop: Engage clients in hands-on evaluation of the proposed product or user interfaces • Validate: Live client interaction with production-ready capabilities to influence general availability and ongoing development schedule
Our New Business Initiative Approval Group manages product innovation and development life cycles by involving a cross-functional executive team. Hear about new bank initiatives and opportunities from John Wacaster. 495
Exhibits | 178 |
Exhibits
Exhibit A – Banking Services Bid Form
Complete the attached Bid Form with pricing information (Attachment 3).
Please see our pricing for Exhibit A on the following pages.
496
Item City's Current Volume
(average per month) Per Unit Cost Total Monthly
Cost
Est. Total Annual
Cost
General Account Services
Zero Balance Account - Base Fee (General) 1 $ - $ - $ - Zero Balance Account - Maintenance (General) 1 $ 5.000 $ 5.000 $ 60.000 Zero Balance Account - Base Fee (Payroll) 1 $ - $ - $ - Zero Balance Account - Maintenance (Payroll) 1 $ 5.000 $ 5.000 $ 60.000 Depository Services
Armored Carrier Pickups 16 -$ $ - -$ Armored Carrier Deposit 51.5 2.000$ $ 103.000 1,236.000$ Armored Carrier Deposit (currency and coin) $6,403.70 0.750$ $ 4.500 54.000$ Cash Branch Deposit 12.30 1.500$ $ 18.450 221.400$ Cash Branch Deposit (per $1) $10,264.00 -$ $ - -$ Desktop Deposit - Monthly Base 1 5.000$ $ 5.000 60.000$ Desktop Deposit - Deposited Items 151 0.050$ $ 7.550 90.600$ Returned Item Service 1 -$ $ - -$ Returned Item Chargeback 1.38 -$ $ - -$ Redeposited Returned Item 1.33 1.500$ $ 1.995 23.940$ Deposit Correction 1 -$ $ - -$ Positive Pay - General 415.8 0.020$ $ 8.316 99.792$ Positive Pay - Payroll 31 0.020$ $ 0.620 7.440$ Positive Pay Exception Checks Returned 4 5.000$ $ 20.000 240.000$ Payee Validation - General 415.4 0.020$ $ 8.308 99.696$ Payee Validation - Payroll 28.4 0.020$ $ 0.568 6.816$ Check Disbursement Services -$
Check Paid - Accounts Payable 418.2 0.035$ $ 14.637 175.644$ Checks Paid - Payroll 28.6 0.035$ $ 1.001 12.012$ Stop Pay - Manual 1.88 10.000$ $ 18.800 225.600$ Wire Transfer Services -$
Online Wire Templates 27 -$ $ - -$ Incoming Wire - Domestic 1.44 5.000$ $ 7.200 86.400$ Outgoing Wire - Domestic 4.3 2.000$ $ 8.600 103.200$ ACH Services -$
ACH Module - Debit 1 5.000$ $ 5.000 60.000$ ACH Module - Credit 0 5.000$ $ - -$ ACH Deposit Items - General 144.4 0.020$ $ 2.888 34.656$ ACH Deposit Items - Payroll 75.5 0.020$ $ 1.510 18.120$ ACH - Same Day 5.2 0.050$ $ 0.260 3.120$ ACH - Future Dated Item 2384.5 0.020$ $ 47.690 572.280$ ACH Fraud Filter Review 10.2 5.000$ $ 51.000 612.000$ ACH Special Transmission 4.9 -$ $ - -$ Credit Transactions Processed 279.5 -$ $ - -$ Exhibit A
City of Murrieta - Banking Services Bid Form
This is a sample bid form, providing the City's current average monthly volumes. Please complete all of the items listed on this form. If the bank does not/cannot provide the service listed, please indicate this using "NP" for "no proposal", and if applicable, recommend an alternative service. If the proposing bank chooses not to use this form, the bid should include, at a minimum, the items listed on this form and estimated annual cost. Please add any additional services offered or provided that are not listed on this form.
3/18/2025
1497
Item City's Current Volume
(average per month) Per Unit Cost Total Monthly
Cost
Est. Total Annual
Cost
ACH Notification of Change 3.5 1.000$ $ 3.500 42.000$ Credit Cards
Number of Ghost Cards 35 -$ $ - -$ Monthly Average $166,090.59 -$ $ - -$ Number of Cal Cards 214 -$ $ - -$ Monthly Average $144,092.17 -$ $ - -$ Online Reporting n
Previous Day Maintenance - General Account 1 -$ $ - -$ Previous Day Maintenance - Payroll Account 1 -$ $ - -$ Previous Day Reporting Items (combined) 895.5 -$ $ - -$ Check Imaging 19 0.035$ $ 0.665 7.980$ Reconciliation Services
Check - Positive Pay (General and Payroll) 2 20.000$ $ 40.000 480.000$ Sweep Account
Sweep Account Base Fee 1 -$ $ - -$ Sweep Account Position Report 1 -$ $ - -$ Bank Supplies/Services
Currency Furnished by Branch $512.00 -$ $ - -$ Endorsement Stamps 4 -$ $ - -$ Deposit Slips As Needed -$ -$
Deposit Bags As Needed -$ -$
Grand Total: $ 391.058 4,692.70$
3/18/2025
2498
Exhibits | 181 |
Exhibit C – Relevant Cash Management Agreements
Agreement for Professional Services with the City of Murrieta (PSA1 - Professional Services Agreement Template Final(962073.4)_202501101217579854 (2)) J.P. Morgan is willing to utilize the sample Agreement included in the RFP, subject to such terms being negotiated and mutually agreed to by both parties, and incorporating J.P. Morgan’s account terms and service terms. The services contemplated by this RFP are standard financial services subject to particular requirements in the financial services industry, and as such, we have attached our form agreements for the services contemplated in the RFP. The account terms and service terms provided by J.P. Morgan relate directly to and articulate the specific services J.P. Morgan is proposing to the City of Murrieta. J.P. Morgan is amenable to discussing modifications to the agreements where appropriate to try and meet the City’s needs. Further, if J.P. Morgan is mandated as the winning bidder, J.P. Morgan will negotiate the sample Contract with the City.
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Exhibits | 182 |
Exhibit D – Financial Statements and Ratings
Provide the most recent audited financial statements or annual report for the bank (a reference to electronic availability will suffice). Also include your current Standard and Poor’s, Moody’s, and/or Fitch credit ratings, where available.
JPMorganChase is a well-capitalized institution with a rock-solid foundation. Both the firm and the bank are routinely rated by industry experts Moody’s, Standard & Poor’s and Fitch. Ratings are shown as of March 1, 2025.
JPMorgan Chase & Co. credit ratings – as of March 1, 2025 Moody's Standard & Poor’s Fitch
Outlook Positive Stable Stable
Long-term issuer rating A1 A AA-
Short-term issuer rating P-1 A-1 F1+
Subordinated debt A3 A- A
Junior Subordinated Baa1 BBB BBB+
Preferred stock Baa2 BBB BBB+
JPMorgan Chase Bank, N.A. credit ratings – as of March 1, 2025 Moody's Standard & Poor’s Fitch
Long-term issuer rating Aa2 AA- AA
Short-term issuer rating P-1 A-1+ F1+
Long-term domestic deposits Aa1 N/A AA+
Subordinated debt Aa3 A- A+
These credit ratings are provided for information purposes only. Credit ratings are solely the opinions of the rating These credit ratings are provided for information purposes only. Credit ratings are solely the opinions of the rating agencies. J.P. Morgan does not endorse, and accepts no responsibility for, the credit ratings issued by the rating agencies. Credit ratings may be changed, superseded or withdrawn by the rating agencies at any time.
For the City’s convenience, J.P. Morgan makes our financial statements and other publicly filed documents available through our website: https://www.jpmorganchase.com/corporate/investor-relations/annual-report- proxy.htm. This link provides past and current JPMorgan Chase & Co. Annual Reports, which include audited financial statements.
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Exhibits | 183 |
Attachment 2: Vendor Application & W9 Form
Please see the Vendor Application and W9 form on the following pages. 501
City business license comment and link.
JPMorgan Chase Bank, N.A. (J.P. Morgan) is a national banking association, organized and existing under the laws of the United States pursuant to a charter issued by the U.S. Office of the Comptroller of the Currency (OCC).
Deposits in J.P. Morgan are insured by the FDIC as provided by law and regulation. JPMorgan Chase Bank, N.A. is a successor to institutions dating back to 1799.
https://sites.jpmchase.com/sites/todayjpmc/Pages/index.aspx#/template?id=1401&s=legalhome
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Documentation | 187 |
Documentation
The sample documents cover the comprehensive set of products and services that may be offered to our Commercial Banking clients in general, and the standard package may include terms for products and services that are not within the scope of services currently proposed to the City. At the time of your implementation, and based on the specific services you elect to use, you will receive the applicable agreements to be executed from your implementation project manager.
● Sample account opening documents:
● Sample product and service terms and agreements:
● Sample consolidates service terms
● Sample master card agreement
J.P. Morgan has received City of Murrieta (CA), (the “Solicitation”), issued by City of Murrieta (“Issuer”) and is submitting its proposal or requested information in response (the “Response”), which outlines its product and service capabilities and/or pricing as requested in the Solicitation. The Solicitation includes requests that the bidder/proposer provide certain certifications or sworn statements (collectively “Certifications”) and/or specific comments to or modifications of included standard terms and conditions, sample agreements, incorporated procurement rules, laws, and the like referenced in the Solicitation (collectively, “Issuer’s Standard Terms”). In addition, the Solicitation may indicate that any response provided by bidders/proposers constitutes an acceptance of all Issuer’s Standard Terms and concurrence with Certifications, unless expressly modified or objected to within the response.
J.P. Morgan has robust internal procedures under which Certifications and Issuer’s Standard Terms are thoroughly reviewed and vetted, from a legal, business, and factual perspective prior to entering any agreement or offer that confirms the accuracy of Certifications (if any) and/or agreement to Issuer’s Standard Terms. Except for those Certifications that we have specifically included within our Response, (“Express Certifications”), we have not invoked our internal review process in connection with any other Certifications or Issuer’s Standard Terms that may be included within this Solicitation and, accordingly our Response should not be construed as and does not constitute any express or inferred acceptance of the other Certifications and/or Issuer’s Standard Terms. Rather, in lieu of any agreement to Issuer’s Standard Terms or attestation of matters contained within the Certifications, we have enclosed within the Response our standard Account Terms, Addendum to Account Terms, United States of America, Consolidated Service Terms and Master Card Agreement and other documents that may be required by us from time to time to provide products or services to you (“Account and Service Terms”). The current Account and Service Terms applicable to the services and types of accounts that are the subject of the Solicitation are included in Appendix 11. These are provided in addition to the other components of our Response, relative to product/service descriptions and pricing.
If we are awarded the business referenced in the Solicitation, or conditionally awarded the business, subject to agreement between us as to terms and conditions under which the services are to be performed and the certifications to be provided by J.P. Morgan, we will discuss modifications to these Account and Service Terms and incorporation of specific Certifications, where appropriate, to try to meet your needs and specific legal requirements applicable to you. These will be incorporated within a mutually agreeable contract between us.
Please keep in mind, however, that J.P. Morgan’s policies do not allow for:
● The provision of unlimited indemnities;
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● Conveyance of intellectual property rights;
● Acceptance of liability except to the extent caused by our breach of contract, negligence, or willful misconduct;
● Acceptance of consequential, incidental, or special damages; ● Liquidated damages;
● Agreement to miscellaneous laws, regulations, ordinances, codes, etc. that do not on their face apply to J.P. Morgan as provider of the services that are the subject of the Solicitation; or ● Deviations from the insurance coverage J.P. Morgan carries Except as modified by our negotiations following notification of award or conditional award of the business referenced in the Solicitation and set forth in the final agreement between us, we anticipate that the Account and Service Terms, as applicable to services and accounts contemplated by the Solicitation will be incorporated within such final agreement. Other that those matters that are expressly affirmed in the Express Certifications contained in our Response, any Certifications and/or Issuer Standard Terms that the Solicitation may otherwise impute to any bidder/proposer submitting a response thereto, are not incorporated into, and may not be inferred, as a result of this Response.
Know Your Customer (KYC)
J.P. Morgan is required to know its customer and to adhere to policies and procedures intended to meet those regulatory requirements that apply to safety and soundness and to fight against the funding of terrorism, money laundering and sanction related activities including performing certain transaction screenings. This means J.P. Morgan will request information about the City and its management and those having authority to transact business with J.P. Morgan in order for J.P. Morgan to comply with its policies and procedures. This is an ongoing requirement and the provision of services pursuant to this proposal and any additional products or services that may be requested is subject to and conditioned upon the ongoing satisfaction of those policies and procedures and compliance by the City with applicable law with respect to the services provided and J.P. Morgan’s policies of which the City is informed.
Contract Length
If J.P. Morgan is awarded the contract, all pricing and fees included in this proposal shall remain fixed for a 3-year period from the start of the contract. Any extension period shall be subject to negotiation of mutually agreeable terms, pricing and fees.
Exceptions
J.P. Morgan has identified below the requirements, terms or conditions that we respectfully request be modified in accordance with our recommended revisions. We are willing to discuss mutually agreeable modifications to the contract terms. The proposed changes are indicated by comments in plain gray font, additions in italic, underlined, black bold text and deletions by strikethrough, red text. 504
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SECTION I
PURPOSE OF REQUEST FOR PROPOSAL AND GENERAL TERMS AND CONDITIONS
1.0 PURPOSE OF REQUEST FOR PROPOSAL (RFP)
The City of Murrieta Finance Department is currently seeking proposals from qualified financial institutions to provide comprehensive banking and merchant services for its bank accounts and related cash management. The primary objective of this proposal is to obtain the most efficient, high-quality services at the most reasonable cost. The City plans to establish a three (3) year contract with the option of two (2) additional one (1) year extensions, effective upon approval of the City Council.
J.P. Morgan agrees to enter into a contract that will be mutually agreed to by both parties, incorporating J.P. Morgan’s account terms and service terms.
1.7 EXCEPTIONS
If a Proposer takes exception to any part of these specifications as written, or as amended by any addenda subsequently issued, or the Agreement, they must do so in writing. Said exceptions must be submitted with the proposal. Failure to do so will be construed as acceptance of all items of the specification and the Agreement.
As a highly regulated financial institution and service provider to numerous public sector clients, Respondent is subject to certain banking and regulatory laws that may require Respondent to negotiate RFP specifications and contract terms. Respondent may request changes that are mutually agreed to in writing by both parties.
Respondent reserves the right to make further comments and take further exceptions if awarded the mandate pursuant to this solicitation.
1.14 INSURANCE REQUIREMENTS
The City of Murrieta requires a certificate of insurance prior to the commencement of any work. Please see Exhibit E of the attached sample agreement for the City’s insurance requirements.
The certificate of insurance will be provided upon award. Please see the document section above for additional information.
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1.18 TERM OF THE AGREEMENT
The Agreement awarded through this RFP is expected to be effective for a period of 3 year(s), with the option of two (2) additional one-year extensions, at the discretion of the authorized City representative as mutually agreed upon by the Parties.
1.19 CONTRACTUAL DOCUMENTS
In the event of a conflict between documents, the following order of precedence shall apply:
● 1. City of Murrieta Agreement, inclusive of all exhibits, attachments and appendices, including Respondent’s Account Terms and Service Terms;
● 2. City of Murrieta Request for Proposal, as amended by Respondent’s Proposal, inclusive of any exceptions.
● 3. Proposal
1.23 CONFLICT OF INTEREST
Proposers should identify any other public agency or private representation that may have a conflict of interest with the City of Murrieta.
The City requires a Statement of Economic Interests (Form 700) to be filed by any Proposer who is involved in the making, or participation in the making, of decisions that may foreseeably have a material effect on any City financial interest [reference Government Code § 82019].
J.P. Morgan and its affiliates may be providing treasury services, debt financing, equity capital or other services (including financial advisory services) to other companies, organizations or governmental entities with which you may have conflicting interests. J.P. Morgan does not believe that the provision of such services, products or financing arrangements in the ordinary course of its business to any such entity would interfere with its ability to provide the services contemplated by this proposal.
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SECTION III
PROPOSER’S MINIMUM QUALIFICATIONS & EXPERIENCE
3.0 REQUIREMENTS
In addition to meeting all other requirements of this RFP, all responding Proposers shall furnish verifiable evidence that their organization and key staff can clearly demonstrate the experience, skill, and expertise necessary to successfully plan, implement, and provide ongoing banking and merchant services.
Information shall include:
● j. Evidence that Proposer is in compliance and good standing with the Community Reinvestment Act.
The most recent CRA performance examination completed by the Office of the Comptroller of the Currency covered CRA activities from January 1, 2014, to December 31, 2019, and resulted in an overall “Satisfactory” rating.
Agreement for Professional Services with the City of Murrieta J.P. Morgan is willing to utilize to the sample Agreement included in the RFP, subject to such terms being negotiated and mutually agreed to by both parties, and incorporating J.P. Morgan’s account terms and service terms. The services contemplated by this RFP are standard financial services subject to particular requirements in the financial services industry, and as such, we have attached our form agreements for the services contemplated in the RFP. The account terms and service terms provided by J.P. Morgan relate directly to and articulate the specific services J.P. Morgan is proposing to the City of Murrieta. J.P. Morgan is amenable to discussing modifications to the agreements where appropriate to try and meet the City’s needs. Further, if J.P. Morgan is mandated as the winning bidder, J.P. Morgan will negotiate the sample Contract with the City.
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Disclosure statement | 192 |
Disclosure statement
This document was prepared exclusively for the benefit and internal use of the party to whom it is directly addressed and del ivered (the “Organization”) in order to assist the Organization in evaluating certain products or services that may be provided by J.P. Morgan.
Chase, J.P. Morgan, and JPMorganChase and InstaMed are marketing names for certain businesses of JPMorgan Chase & Co. and its affiliates and subsidiaries worldwide (if and as used herein may include as applicable employees or officers of any or all of such entities irrespective of the marketi ng name used). Products and services may be provided by commercial bank affiliates, securities affiliates or other J.P. Morgan affiliates or entities. In particular, securities brokerage services other than those which can be provided by commercial bank affiliates under applicable law will be provided by registered broker/dealer affiliates such as J.P. Morgan Securities LLC, J.P. Morgan Institutional Investments Inc. or by such other affiliates as may be appropriate to provide such services under applicable law. Such securities are not deposits or other obligations of any such commercial bank, are not guaranteed by any such commercial bank and are not insured by the Federal Deposit Insurance Corporation. We are not responsible for the performance of our partners, their continued service levels, or their ability to provide services.
The information herein does not purport to set forth all applicable issues and is not intended to constitute advice on legal, tax, investment, accounting, regulatory or any other matters. J.P. Morgan makes no representations as to such matters or any other effects of any transaction and shall have no responsibility or liabi lity to you with respect thereto. You should consult with your own advisors regarding such matters and the suitability, permissibility and effect of any transaction. In no event shall J.P. Morgan nor any of its directors, officers, employees or agents be liable for any use of, for any decision made or action taken in reliance upon, or for any inaccuracies or errors in, or omissions from, the information herein. The information herein is not intended as nor shall it be deemed to constitute advice or a recommendation regarding the issuance of municipal securities or the use of any municipal financial products. J.P. Morgan is not providing any such advice or acting as the Organization’s agent, fiduciary or advisor, including, without limitation, as a Municipal Advisor under Section 15B of the Securities and Exchange Act of 1934, as amended.
Money Market Funds:
NOT FDIC INSURED ∙ NO BANK GUARANTEE ∙ MAY LOSE VALUE
You could lose money by investing in a money market fund. With respect to a money market fund that qualifies as a “retail” or “government” money market fund under applicable money market fund regulations, although the money market fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. In the case of a money market fund that does not qualify as a “retail” or “government” money market fund, because the share price of the money market fund will fluctuate, when you sell your shares they may be worth more or less than what you originally paid for them. If a money market fund does not qualify as a “government” money market fund, effective October 14, 2016, the money market fund may impose a fee upon sale of your shares or may temporarily suspend your ability to sell shares if the money market fund’s liquidity falls below required minimums because of market conditions or other factors. An investment in a money market fund is not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. A money market fund’s sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will provide financial support to the fund at any time.
For J.P. Morgan Funds – Call 1-800-766-7722 for a fund prospectus. You can also visit us online at www.jpmorganfunds.com. Investors should carefully consider the investment objectives and risk as well as charges and expenses of the mutual fund before investing. The prospectus contains this and other information about the mutual fund. Read the prospectus carefully before investing.
JPMorgan Funds are distributed by JPMorgan Distribution Services, Inc., which is a subsidiary of JPMorgan Chase & Co. JPMorgan Chase Bank, N.A. may receive compensation from the fund, the management company for the fund and/or the distributor of the fund for providing services as described in the prospectus for the funds. Affiliates of JPMorgan Chase & Co. also receive fees for providing various services to the funds. Securities may be provided by J.P. Morgan Institutional Investments, Inc., member FINRA/SIPC.
For Third Party Funds – The distributors of the third-party funds are not affiliated with J.P. Morgan. J.P. Morgan may receive compensation from a third-party fund, the management company for the third-party fund and/or the distributor of a third-party fund for providing services as described in the prospectus for the funds.
For all Funds – Carefully consider a fund’s investment objectives, risks, charges and expenses before investing. This and other important information is included in the fund’s prospectus, which should be read carefully before investing. Prospectuses for mutual funds can be obtained by contacting your relationship manager.
This proposal is subject to and conditioned upon a mutually agreeable contract between the Organization and J.P. Morgan. J.P. Morgan also requires execution of all applicable product and service agreements. Implementation of products and services is subject to and conditioned upon the condition of satisfactory completion of J.P. Morgan’s “Know Your Customer” due diligence and meeting product requirements. These steps are included in J.P. Morgan’s client onboarding process.
This document may contain information that is confidential and/or proprietary to J.P. Morgan, which may only be used in order to evaluate the products and services described herein and may not be disclosed to any other person. Such information is marked “confidential” and may not be copied, published or used, in whole or in part, for any purpose other than as expressly authorized by J.P. Morgan.
Additionally, this document may contain content pertaining to J.P. Morgan initially generated by AI or other automated technologies.
To help the United States government fight the funding of terrorism and money laundering activities, U.S. law (Section 326 of the USA PATRIOT Act) requires banks and certain other financial institutions to obtain, verify, and record information that identifies each client that opens an account. What this means for our clients: Before opening a new account, we will require you to provide name, address, taxpayer identification number, and other information and/or documentation that will allow us to identify the account owner(s), as required by law.
Please note that we do not issue cards and prohibit use of our cards in any country against which the United States has imposed sanctions. A current list of such sanctioned countries, as well as information about sanctions, is available on the U.S. Department of the Treasury website: treas.gov/offices/enforcement/ofac.
J.P. Morgan is licensed under U.S. Pat Nos. 5,910,988 and 6,032,137.
PaymentNet® is a registered trademark of JPMorgan Chase & Co. MasterCard® and smartdata.gen2™ are trademarks of MasterCard International. Visa® is a registered trademark of Visa Inc.
Microsoft®, Excel®, and Internet Explorer® are registered trademarks of Microsoft Corporation. Adobe Acrobat® is a registered trademark of Adobe Systems Incorporated.
If this is a Commercial Card product proposal, this proposal is valid for 60 days from March 7, 2025. J.P. Morgan reserves the right to amend this proposal thereafter.
All trademarks, trade names and service marks appearing herein are the property of their respective owners.
This document does not constitute a commitment by any J.P. Morgan entity to extend or arrange credit. © 2024 JPMorgan Chase & Co. All Rights Reserved. JPMorgan Chase Bank, N.A. Member FDIC. Deposits held in non-U.S. branches are not FDIC insured.
J.P. Morgan supports sustainable business practices and adheres to the principles of environmental sustainability wherever possible.
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VERONICA VILLASENOR
Relationship Manager
12860 El Camino Real, Fl 2
San Diego, CA 92130
(858) 284-5810
[email protected]
JOHN WACASTER
Treasury Management Officer
3 Park Plz, Fl 09
Irvine, CA 92614-8505
(949) 833-6637
[email protected]
509
June 25, 2025
Cynthia Rockwell
Purchasing & Contracts Coordinator
1 Town Square
Murrieta, CA 92562
Dear Cynthia:
On behalf of JPMorgan Chase Bank, N.A., (J.P. Morgan), thank you for the opportunity to present our response to the City of Murrieta’s (the City’s) Request for Proposal (RFP) for Banking and Merchant Services on March 10,2025. It has been our distinct privilege and pleasure to engage in conversation with the City over the last several months to refine our proposal in a Best and Final Offer (BAFO) process.
We offer the following as clarifications/updates to the original terms of our proposal dated 3/10/25:
1) Purchase card rebates in alignment with the grid on p. 268 of RFP response. Additional rebate can be earned by either paying faster (up to +14 bps additional) and/or implementing JPMorgan’s virtual card solution. Our virtual card solution is a leader in the market and on average, we grow program spend of +189% versus other banks. In short, we would be happy to help the City drive spend adoption resulting in increased rebate revenue.
2) Ability for armored car fees to be included in account analysis. 3) Adjustment of the contract term from 3 years with 2, 1-year extensions, to 5 years with 2, 1-year extensions
4) Expansion of the account analysis fee waiver from 9 months or $6,000 (whichever comes first) to 12 months valued at $8,000 (whichever comes first)
5) Revision of the Hybrid DDA interest offered to the City to:
a. 3.85% on balances of $110M or greater
b. 3.75% on balances over $75M
c. 3.50% on balances below $75M
As discussed, our goal would be to maintain a dialogue so that we are aligned with the City’s plans in terms of liquidity management. Similarly, the bank manages its rates actively and the above rate offerings are subject to adjustment based on market conditions. While consistency is our goal, our approach is to assess trends over time and adjust accordingly in the context of an open dialogue with the City.
6) In addition to the City’s Banking Services Bid Form included in Exhibit A of our RFP response, we had included a Pricing Proforma in Appendix 3 which included pricing for some elements that could not be included in the Bid Form. We have attached an updated proforma that excludes the cost to insure the balances (“Balance Based Charges” on page 3 of the proforma in the amount of $11,753.42). The City
RFP for Banking & Merchant Services
Proposal Addendum for City of Murrieta
510
still will be paying this pass-through cost to insure deposits, however this cost (approximately 13 basis points) was already deducted from the Earnings Credit Rate (ECR) we originally offered of 2.92%. In other words, our ECR offering is essentially 3.05% but is 2.92% minus that cost. Hopefully this should make it easier to compare total monthly banking fees across bank proposals. JPMorgan’s estimated monthly banking fees based on volumes provided are approximately $700.
We stand ready to answer any questions or provide any additional clarifying information needed. Please do not hesitate to contact me should the need arise.
Sincerely,
Veronica Villasenor
Relationship Manager
(858) 284-5810
[email protected]
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CITY OF MURRIETA
City Council Meeting Agenda
Report
8/19/2025
Agenda Item No. 13.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Evan Crockett, Management Analyst - Finance SUBJECT:
Agreement with Spicer Consulting Group for Community Facilities Districts Formation, Annual Administration, and Other Special Services
RECOMMENDATION
Approve an agreement with Spicer Consulting Group for Community Facilities Districts formation, annual administration, and other special services not to exceed $74,999; Authorize the exemption from bidding requirements; and
Authorize the City Manager to execute the agreement.
PRIOR ACTION/VOTE
On September 7, 2022, the City Manager approved an agreement between the City of Murrieta and Spicer Consulting Group, a California Limited Liability Company (Consultant), to conduct a long-term General Fund analysis related to the fiscal impact of new development on Public Safety Services and the formation of a Safety Services Community Facilities District.
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
DISCUSSION
On September 7, 2022, the City of Murrieta (City) approved an agreement with Spicer Consulting Group (SCG) to conduct a long-term General Fund analysis related to the fiscal impact of new development on Public Safety Services and the formation of a Safety Services Community Facilities District (CFD). The engagement necessitated a two-phase approach to evaluating the fiscal impacts of new development on public safety services and supporting the formation of a Public Safety CFD.
Phase I involved conducting an analysis to understand the impact on public safety services and aCITY OF MURRIETA Printed on 8/14/2025Page 1 of 3 powered by Legistar™
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Phase I involved conducting an analysis to understand the impact on public safety services and a comprehensive fiscal analysis to determine impacts on the City's General Fund. Phase I included a revenue analysis of new residential development, specifically evaluating sources such as property tax, sales tax, and franchise fees. Their analysis incorporated information from various documents, such as the General Plan, biennial budget, and the long-term financial plan, to identify the funding gap and estimated costs associated with adding public safety personnel and operating resources needed to maintain the current service level.
Phase II focused on establishing a Public Safety CFD to mitigate increased demands on police, fire, ambulance, and paramedic services resulting from new development. The CFD rate structure is guided by the fiscal impact findings from Phase I, ensuring new development contributes equitably to the cost of maintaining public safety services.
As a result of the engagement with SCG, the City has established a citywide annexable CFD for public safety services (CFD 2025-S), maintenance services (CFD 2025-2), and development-specific facilities CFDs for infrastructure financing. The table below summarizes the established CFDs and annexations.
Now that these CFD formations are complete, the City desires and is in need of annual administration services. The objective of this new engagement with SCG is to provide administrative support to the City’s recently formed CFDs for infrastructure financing, maintenance services, and public safety services. As these newly formed CFDs begin to realize new development, SCG will evaluate the development status of each parcel and determine how much to levy on the property tax bill to cover the expected costs for the upcoming fiscal year in time for the annual enrollment of property taxes to the County. SCG will prepare the budgets for City review and approval, determining the appropriate amount to levy. The proposed annual levy will be CITY OF MURRIETA Printed on 8/14/2025Page 2 of 3
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brought to the City Council for approval, as currently occurs for existing districts.
Murrieta Municipal Code Section 3.08.280(D) permits exceptions to the competitive bidding process. Since SCG established the referenced CFDs, has in-depth knowledge of the City’sfinancial condition and future plans, and can ensure continuity of services with minimal disruption, City staff recommends entering into a new agreement with SCG for CFD formation, annual administration, and other special services. Staff plans to issue a Request for Proposal for CFD services prior to June 2026.
FISCAL IMPACT
The fiscal impact associated with the annual administration for CFD 2025-S (Safety Services), CFD 2025-2 (Maintenance Services), Annexation No. 1, and CFD 2025-4 (Rustic Meadows) is $9,000. The annual administration services are paid for by the special district administrative funds; therefore, there is no impact on the City's general fund.
The Consultant proposes a fixed fee schedule below for CFD Formation, Annexation, and Bond Issuance Services, should they be needed during Fiscal Year 2025/26. The costs for the services may be recovered through developer deposits and bond issuances.
ATTACHMENTS
1. Agreement with Spicer Consulting Group for Community Facilities Districts Formation, Annual Administration, and Other Special Services
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AGREEMENT FOR PROFESSIONAL SERVICES
WITH THE CITY OF MURRIETA (“CITY”)
Project Name/Description (“ Project”): Community Facilities Districts formation, annual administration, and other special services
Contract Number:
Consultant Name (“Consultant”): Spicer Consulting Group Consultant Business Type:Limited Liability Company (LLC) Consultant Address: 41880 Kalmia Street, Suite 145, Murrieta, CA 92562 Consultant Representative Name and Title (“ Consultant Representative ”): Shane Spicer, Managing Director
Consultant Representative Work Phone and Email: (951) 208-7870, [email protected] Termination Date: September 30, 2026
Total Not-To-Exceed Contract Amount (“Contract Sum”): $74,999 City Department Contact (“Department Contact”): Javier Carcamo Department Contact Work Phone and Email: (951) 461-6090, [email protected] Is Federal Funding Being Used to Fund Any Part of The Project (Yes/No):No
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RECITALS
The City desires to contract with a Consultant to provide professional services as further set forth herein.
As result of the existing signed agreement dated on September 7, 2022 with Spicer Consulting Group to provide Community Facilities Districts (CFDs) f ormation services, the City desires to enter into a new agreement to engage Spicer Consulting Group to assist the City with new CFD formation, manage the recent CFD formations, and provide annual administration services until September 30, 2026. Prior to S eptember 30, 2026, the City will circulate a Request for Proposals for CFD formation, annual administration, and other special services.
Consultant submitted a proposal to City to provide the above -described professional services.
City is recommending to enter into a new agreement for annual CFD services considering the Consultant has prior knowledge of City’s financial condition, understands City’s future endeavors and to minimize interruption in the services.
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AGREEMENT FOR PROFESSIONAL SERVICES
WITH THE CITY OF MURRIETA (“CITY”)
THIS AGREEMENT FOR SERVICES (“Agreement”) is made and entered into as of the effective on the date executed by the City by and between CITY OF MURRIETA, a California municipal corporation (“ City”) and (“ Consultant”). City and Consultant may be referred to individually as “Party” or collectively as “Parties.” In consideration of the mutual promises and covenants made by the Parties and contained herein and other consideration, th e value and adequacy of which are hereby acknowledged, the Parties agree as follows:
ARTICLE 1. SERVICES OF CONSULTANT
1.1 Scope of Services. In compliance with all terms and conditions of this Agreement, Consultant shall provide those services specified in the “ Scope o f Services ” attached hereto as Exhibit A and incorporated herein by this reference, which may be referred to herein as the “ services” or “ work” hereunder. As a material inducement to City entering into this Agreement, Consultant represents and warrants: a) it has the qualifications, experience, and facilities necessary to properly perform the Services required under this Agreement b) all services set forth in the Scope of Services will be performed in a competent and satisfactory manner; c) all materials used for services will be both of good quality as well as fit for the purpose intended; and, d) Consultant shall follow the highest professional standards and practices in performing the services required hereunder.
1.2 Consultant’s Proposal. The Scope of Services shall include the scope of services or work included in Consultant’s proposal or bid , which shall be incorporated herein by this reference as though fully set forth herein. In the event of any inconsistency between the terms of such proposal or bid, and this Agreement, the terms of this Agreement shall govern. No other terms and conditions from Consultant’s proposal or bid, other than description of scope of services or work, shall apply to this Agreement, unless specifically agreed to by City in writing.
1.3 Compliance with Law. All services rendered hereunder shall be provided in accordance with all ordinances, resolutions, statutes, rules and regulations of City and any federal, State or local governmental agency having jurisdiction in effect at the time services are rendered. City, and its officers, employees and agents, shall not be liable at law or in equity for failure of Consultant to comply with this Section.
1.4 Licenses, Permits, Fees and Assessments. Consultant shall obtain at its sole cost and expense such licenses, permits and approvals as may be required by law for the performance of the services required by this Agreement. Consultant shall have the sole obligation to pay for any fees, assessments and taxes, plus applicable penalties and interest, which may be imposed by law and arise from or are necessary for Consultant’s performance of the services required by this Agreement, and shall indemnify, defend and hold harmless City against any such fees, assessments, taxes, penalties or interest levied, assessed or imposed against City hereunder.
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1.5 Familiarity with Work. By executing this Agreement, Consultant represents and warrants Consultant: a) has thoroughly investigated and considered services to be performed, b) has carefully considered how services should be performed, and c) fully understands the facilities, difficulties and restrictions attending performance of services under this Agreement.
1.6 Software and Computer Services. If the Scope of Services includes the provision and/or installation of any software, computer system, or other computer technology, Consultant represents and warrants that it is familiar with and/or has inspected City’s current infrastructure, equipment, computer system and software and that the software, computer system, or other computer technology provided and/or installed by Consultant under this Agreement is compatible, and shall be fully functional, with such infrastructure, equipment, computer system and software of City. Consultant ac knowledges that City is relying on this representation by Consultant as a material consideration in entering into this Agreement.
1.7 Prevailing Wages. If services include any “public work” or “maintenance work,” as those terms are defined in California Labor Code section 1720 et seq. and California Code of Regulations, Title 8, section 16000 et seq. , and if the total compensation is $1,000 or more, Consultant shall pay prevailing wages for such work and comply with the requirements in California Labor Code section 1770 et seq. and 1810 et seq., and all other applicable laws.
1.8 Special Requirements. Additional terms and conditions of this Agreement, if any, which are made a part hereof are set forth in the “Special Requirements” attached hereto as Exhibit B and incorporated herein by this reference. In the event of a conflict between the provisions of Exhibit B and any other provisions of this Agreement, the provisions of Exhibit B shall govern.
ARTICLE 2. COMPENSATION AND METHOD OF PAYMENT
2.1 Contract Sum. Subject to any limitations set forth in this Agreement, City agrees to pay Consultant the rates specified in the “Schedule of Compensation” attached hereto as Exhibit C and incorpo rated herein by this reference . The total compensation for all work, including reimbursement for actual expenses, shall not exceed the Contract Sum set forth above . Compensation may include reimbursement, for actual and necessary expenditures , if both are specified in the Schedule of Compensation, as well as approved by City in advance.
2.2 Invoices. Unless some other method of payment is specified in Exhibit C, Schedule of Compensation, in any month in which Consultant wishes to receive payment, no later than the first business day of such month, Consultant shall submit to City, in a form approved by City’s Finance Director, an invoice for services rendered prior to the date of the invoice. By submitting an invoice for payment under this Agreement, Consultant is certifying compliance with all provisions of this 518
Agreement. Except as provided in Section s 7.3, 7.4 and 7.5, City shall pay Consultant for all expenses stated thereon which are approved by City pursuant to this Agreement generally within thirty (30) da ys, and City will use its best efforts to make payment no later than forty -five (45) days, from the submission of an invoice in an approved form. In the event any charges or expenses are disputed by City, the original invoice shall be returned by City to Consultant for correction and resubmission. Review and payment by City for any invoice provided by Consultant shall not constitute a waiver of any rights or remedies provided herein or any applicable law. Each invoice is to include (unless otherwise specified by City): 1) line items for all personnel describing the work performed, the number of hours worked, and the hourly rate; 2) line items for all materials and equipment properly charged to the Services; 3) line items for all other approved reimbursable expenses claimed, with supporting documentation ; and 4) l ine items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.
ARTICLE 3. PERFORMANCE SCHEDULE
3.0 Time of Essence. Time is of the essence in the performance of this Agreement.
3.1 Term. The Agreement shall commence and become effective upon the date executed by the City and will continue until the Termination Date. This Agreement may be extended for up to two, additional one -year periods upon the mutu al agreement in writing of both parties.
Unless earlier terminated in accordance with Article 7 of this Agreement, this Agreement shall continue in full force and effect until completion of any ongoing services, which shall be no later than the Termination Date set forth above.
Notwithstanding the foregoing, the Indemnification and Insurance provisions set forth in Article 5 shall survive the termination of this Agreement.
3.2 Schedule of Performance. Consultant shall commence the services pursuant to this Agreement upon receipt of a written notice to proceed from City and shall perform all services within the time period(s) established in the “Schedule of Performance” attached hereto as Exhibit D and incorporated herein by this reference.
3.3 Force Majeure. The time period(s) specified in the Schedule of Performance for performance of the services rendered pursuant to this Agreement shall be extended because of any delays due to unforeseeable causes beyond the control and without the fault or negligence of Consultant, including, but not restricted to, acts of God or of the public enemy, unusually severe weather, fires, earthquakes, floods, epidemics, quarantine restrictions, riots, strikes, freight embargoes, wars, litigation, and/or acts of any governmental agency, including City, if Consultant shall within ten (10) days of the commencement of such delay notify City in writing of the causes of the delay. City shall ascertain the facts and the extent of delay, and extend the time for performing the services for the period of the enforced delay when and if in the judgment of City such delay is justified. City’s determination shall be final 519
and conclusive upon the Parties to this Agreement. In no event shall Consultant be entitled to recover damages against City for any delay in the performance of this Agreement, however caused, Consultant’s sole remedy being extension of this Agreement pursuant to this Section.
ARTICLE 4. COORDINATION OF WORK
4.1 Representative of Consultant. The Consultant Representative is authorized to act on Consultant’s behalf with respect to the work or services specified herein and to make all decisions in connection therewith. It is expressly understood that the experience, knowledge, capability and reputation of the representative was a substantial inducemen t for City to enter into this Agreement. Therefore, the representative shall be responsible during the term of this Agreement for directing all activities of Consultant and devoting sufficient time to personally supervise the services hereunder. For purposes of this Agreement, the representative may not be replaced nor may their responsibilities be substantially reduced by Consultant without the express written approval of City.
4.2 Department Contact for City . The Department Contact (or other person designated by the City Manager) shall be the primary person on behalf of City responsible for the administration of the Agreement. It shall be Consultant’s responsibility to assure that the Department Contact is kept informed of both the progress of the performance of the services as well as any decisions which must be made by City.
4.3 Approvals from City. City approvals or actions, pursuant to the authority of this Agreement, are to be made (unless otherwise specified) either by the Contract Manager, City Manager or by their delegate as provided for in writing.
4.4 Independent Co ntractor. Neither City , nor any of its officers, employees or agents, shall have any control over the manner or means by which Consultant , or its officers, employees, agents or subcontractors , perform the services required herein, except as otherwise set forth herein. Consultant shall perform all services required herein as an independent contractor of City and shall remain under only such obligations as are consistent with that role. Consultant shall not at any time or in any manner represent that it, or any of its officers, employees, agents or subcontractors, are officers, employees or agents of City. City shall not in any way or for any purpose become or be deemed to be a partner of Consultant in its business or otherwise or a joint venturer or a member of any joint enterprise with Consultant.
Consultant shall not incur or have the power to incur any debt, obligation or liability whatever against City, or bind City in any manner. Consultant represents and warrants that the personnel used to provide services to City pursuant to this Agreement shall at all times be under Consultant’s exclusive control and direction.
No City employee benefits shall be available to Consultant, its officers, employees, agents or subcontractors, in connection with the performance of this Agreement.
City shall not be liable for compensation or indemnification to Consultant , its officers, employees, agents or subcontractors, for injury or sickness arising out of performing services hereunder. In the event that Consultant or any officer, 520
employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a federal or state agency, a court of competent jurisdiction, or the California Public Employees’ Retirement System, to be classified as other than an independent contractor for City, then Consultant shall indemnify, defend, and hold harmless City for the payment of any and all assessed fines, penalties, judgments, employee and/or employer contributions, and any other damages and costs assessed to City as a consequence of, or in any way attributable to, the assertion that Consultant , or any officer, employee, agent, or subcontractor Consultant used to provide services under this Agreement, is/are employees of City.
4.5 Subcontracting or Assignment. The experience, knowledge, capability and reputation of Consultant, its principals and employees were a substantial inducement for City to en ter into this Agreement. Therefore, without express written approval of City, Consultant shall not contract with any other City to perform in whole or in part services required hereunder without express written approval of City , and n either this Agreement nor any interest herein may be transferred or assigned. No approved transfer shall release Consultant, or any surety or insured of Consultant, of any liability hereunder without express written consent of City.
ARTICLE 5. INSURANCE AND INDEMNIFICATION
5.1 Insurance Cover ages. Prior to commencement of any services under this Agreement, and without limiting Consultant’s indemnification obligation to City, Consultant shall procure and maintain, at its sole cost and expense, in a form and content satisfactory to City, for the duration of the Agreement, primary policies of insurance of the type and amounts set forth in the “Insurance Requirements” attached hereto as Exhibit E and incorporated herein by this reference.
5.2 Indemnification.
(a) General Obligations. Consultant agrees, to the full extent permitted by law, to indemnify, defend and hold harmless City and its elected and appointed officers, employees and agents (each an “ Indemnitee” and collectively, “ Indemnitees”) against, and will hold and save them and each of them harmles s from, whether actual or threatened, any and all actions, either judicial, administrative, arbitration or regulatory claims, damages to persons or property, losses, costs, penalties, obligations, errors, omissions or liabilities (herein “ Claims or Liabili ties”) that may be asserted or claimed by any person, firm or City arising out of or in connection with the negligent performance of the work, operations or activities provided herein of Consultant, its officers, employees, agents, subcontractors, or invitees, or any individual or City for which Consultant is legally liable (each an “Indemnitor” and collectively, “ Indemnitors”), or arising from Indemnitors’ reckless or willful misconduct, or arising from Indemnitors’ negligent performance of or failure to p erform any term, provision, covenant or condition of this Agreement, and in connection therewith: 1) Consultant will defend any action or actions filed or threatened in connection with any such Claims or Liabilities, or at option of Indemnitee(s) will reimburse and pay for all costs and expenses, including 521
legal costs and attorneys’ fees, incurred by Indemnitee(s) in connection therewith; and, 2) Consultant will promptly pay any judgment rendered against Indemnitee(s) for any such Claims or Liabilities, and will save and hold Indemnitee(s) harmless therefrom.
(b) Further Provisions. The indemnity obligation herein shall be binding on successors, assigns and heirs of Consultant and shall survive termination of this Agreement. Consultant shall incorporate similar indemnity agreements as provided herein with its subcontractors, and if Consultant fails to do so Consultant shall be fully responsible to indemnify City hereunder therefor. Failure of City and/or City Parties (collectively “City” for solely this Section 5 .2(b)) to monitor compliance with any of the indemnification provisions herein shall not be a waiver hereof. The indemnification provisions herein do not apply to claims or liabilities occurring as a result of City’s sole negligence or willful misconduct, but, to the fullest extent permitted by law, shall apply to claims and liabilities resulting in part from City’s negligence, except that design professionals’ indemnity hereunder shall be limited to claims and liabilities arising out of the negligence, rec klessness or willful misconduct of the design professional. The indemnification provided herein includes Claims or Liabilities arising from any negligent or wrongful act, error or omission, or reckless or willful misconduct of Indemnitors in the performanc e of professional services hereunder. Payment of invoices by City is not a condition precedent to enforcement of the indemnity obligation herein. In the event of any dispute between Consultant and City, as to whether liability arises from the sole negligence or willful misconduct of City, Consultant will be obligated to pay for City’s defense until such time as a final judgment has been entered adjudicating City as solely negligent or responsible for willful misconduct. Consultant will not be entitled in the absence of such a determination to any reimbursement of defense costs including but not limited to attorney’s fees, expert fees and costs of litigation. (c) Pursuant to the full language of California Civil Code §2782, Design Professionals agrees to indemnif y, including the cost to defend, City and its officers, officials, employees, and volunteers from and against any and all claims, demands, costs, or liability that arise out of, or pertain to, or relate to the negligence, recklessness, or willful misconduc t of Design Professional and its employees or agents in the performance of services under this contract, but this indemnity does not apply to liability for damages arising from the sole negligence, active negligence, or willful acts of the City; and does not apply to any passive negligence of the City unless caused at least in part by the Design Professional. The City agrees that in no event shall the cost to defend charged to the Design Professional exceed that professional’s proportionate percentage of fa ult. This duty to indemnify shall not be waived or modified by contractual agreement or acts of the parties.
5.3 Professional Liability. When the law establishes a professional standard of care for Consultant’s services, to the fullest extent permitted by law, Consultant shall indemnify, defend and hold harmless Indemnitees against, and will hold and save them and each of them harmless from, whether actual or threatened, any and all Claims and Liabilities, consistent with all obligations provided for in this Se ction
5.3, to the extent same are caused in whole or in part by any negligent or wrongful 522
act, error or omission, or reckless or willful misconduct of Indemnitors in the performance of professional services under this Agreement.
ARTICLE 6. RECORDS, REPORTS AND RELEASE OF INFORMATION
6.1 Records. Consultant shall keep, and require subcontractors to keep, such ledgers, books of accounts, invoices, vouchers, canceled checks, reports, studies or other documents relating to the disbursements charged to City and services performed hereunder (“books and records ”) as shall be necessary to perform the services required by this Agreement and enable City to evaluate the performance of such services. Any and all such books and records shall be maintained in accordance with generally accepted accounting principles, shall be complete and detailed, and shall be readily accessible . City shall have full and free access to such books and records at all times during normal business hours of City, including the right to inspect, copy, audit and make records and transcripts. Such books and records shall be maintained for a period of three (3) years following completion of the services hereunder. City shall have access to such books and records in the event any audit is required. Consultant shall fully cooperate with City in providing access to any and all Consultant records and documents if a public records request is made and disclosure is required by law including but not limited to the California Public Records Act.
6.2 Ownership of Docume nts. All drawings, specifications, maps, designs, photographs, studies, surveys, data, notes, computer files, reports, records, documents and other materials (“ documents and materials ”) prepared by Consultant, its officers, employees, agents and subcontractors in the performance of this Agreement shall be the property of City and shall be delivered to City upon request of City and/or upon the termination of this Agreement, and Consultant shall have no claim for further employment or additional compensation as a result of the exercise by City of its full rights of ownership , use, reuse, or assignment of the documents and materials hereunder. Consultant may retain copies of such documents and materials for its own use. Consultant shall have the right to use the concepts embodied therein. All subcontractors shall provide for assignment to City of any documents and materials prepared by them, and in the event Consultant fails to secure such assignment, Consultant shall indemnify City for all damages resulting the refrom. Moreover, with respect to any Consultant documents and materials that may qualify as “works made for hire” as defined in 17 U.S.C. § 101, such documents and materials are hereby deemed “works made for hire” for City.
6.3 Confidentiality and Release of Information. All information gained or work product produced by Consultant in its performance of this Agreement shall be considered confidential, unless such information is in the public domain or already known to Consultant. Consultant shall not release or disclose any such information or work product to persons or entities other than City without prior written authorization from City. Consultant, its officers, employees, agents or subcontractors, shall not, without prior written authorization from City or unless requested by the City Attorney, voluntarily provide documents, declarations, letters of support, testimony at depositions, response to interrogatories or other 523
information concerning the work performed under this Agreement. Response to a subpoena or court order shall not be considered “voluntary” provided Consultant immediately gives City notice of such court order or subpoena. If Consultant, or any officer, employee, agent or subcontractor of Consultant, provides any information or work product in violation of this Agreement, then City shall have the right to reimbursement and indemnity from Consultant for any damages, costs and fees, including attorney’s fees, caused by or incurred as a result of Consultant’s conduct. As concerning, r egarding or related to, in any way, this Agreement and the work performed thereunder: a) Consultant shall immediately notify City should Consultant, its officers, employees, agents or subcontractors be served with any summons, complaint, subpoena, notice of deposi tion, request for documents, interrogatories, request for admiss ions or other discovery request, court order or subpoena from any party ; b) City retains the right, but has no obligation, to represent Consultant or be present at any deposition, hearing or similar proceeding; and, c) Consultant agrees to cooperate fully with City and to provide City with the opportunity to review any response to discovery requests provided by Consultant , however, this right to review any such response does not imply or mean t he right by City to control, direct, or rewrite said response.
ARTICLE 7. ENFORCEMENT OF AGREEMENT AND TERMINATION
7.1 California Law. This Agreement shall be interpreted, construed and governed both as to validity and to performance of the Parties in accordance with the laws of the State of California. Legal actions concerning any dispute, claim or matter arising out of or in relation to this Agreement shall be instituted in the Superior Court of the County of Riverside, State of California, or any other appropriate court in such county, and Consultant agrees to submit to the personal jurisdiction of such court in the event of such action. In the event of litigation in a U.S. District Court, venue shall lie exclusively in the Central District of California, in the County of Riverside, State of California.
7.2 Suspension, or Termination, Prior to Expiration of Term. This Section shall govern any termination of this Agreement except as specifically provided in Section
7.4 for termination for cause. City reserves the right to terminate or suspend this Agreement, or any portion hereof, at any time, for any reason, with or without cause, upon ten (10) days’ notice to Consultant, except that where termination or suspension is due to the fault of Consultant, the period of notice may be such shorter time as determined by City. Upon receipt of any notice of termination or suspension, Consultant shall immediately cease all services hereunder , unless the notice provides otherwise, or except such as specifically approved by City. Upon submittal of an invoice consistent with Section 2. 2, Consultant shall be entitled to compensation for all services rendered prior to the effective date of the notice of termination or suspension and for any services authorized by City thereafter in accordance with the Schedule of Compensation, or such a s may be approved by City, except as provided in Section 7.5. In event of termination , or suspension, 524
without cause pursuant to this Section, there is no need to provide opportunity to cure pursuant to Section 7.3.
7.3 Default of Consultant and Opportunity to Cure. In the event that Consultant is in default under the terms of this Agreement, City shall not have any obligation or duty to continue compensating Consultant for any work performed after the date of default. Instead, City may give notice to Consultant of the default and the reasons for the default. The notice shall include the timeframe in which Consultant may cure the default. This timeframe is presumptively t en (10) days, but may be extended, or reduced, if circumstances warrant, as determined by City. During the period of time that Consultant is in default, City shall hold all invoices and shall, when the default is cured, proceed with payment on the invoices , without liability for interest. In the alternative, City may, in its sole discretion, elect to pay some or all of the outstanding invoices during the period of default. If Consultant does not cure the default by conclusion of noticed timeframe , City may immediately both terminate this Agreement with notice to Consultant as well as pursue the remedy in Section 7.4, without prejudice to any other rem edy to which City may be entitled at law, in equity or under this Agreement . Any failure on the part of City to give notice of Consultant’s default shall not be deemed to result in a waiver of City’s legal rights or any rights arising out of any provision of this Agreement.
7.4 Termination for Default of Consultant. If termination is due to the failure of Consultant to fulfill its obligatio ns under this Agreement, City may, after compliance with the provisions of Section 7.3, take over the work and prosecute the same to completion by contract or otherwise, and Consultant shall be liable to the extent that the total cost for completion of the services required hereunder exceeds the compensation herein stipulated (provided that City shall use reasonable efforts to mitigate such damages), and City may withhold any payments to Consultant for the purpose of set-off or partial payment of the amount s owed City therefor.
7.5 Retention of Funds. Consultant hereby authorizes City to deduct from any amount payable to Consultant (whether or not arising out of this Agreement) (i) any amounts the payment of which may be in dispute hereunder or which are necessary to compensate City for any losses, costs, liabilities, or damages suffered by City, and (ii) all amounts for which City may be liable to third parties, by reason of Consultant’s acts or omissions in performing or failing to perform Consultant’s obligation under this Agreement. In the event that any claim is made by a third party, the amount or validity of which is disputed by Consultant, or any indebtedness shall exist which shall appear to be the basis for a claim of lien, City may withhold from any payment due, without liability for interest because of such withholding, an amount sufficient to cover such claim. The failure of City to exercise such right to deduct or to withhold shall not, however, affect the obligations of Consultant to insure, i ndemnify, and protect City as elsewhere provided herein.
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7.6 Waiver. Waiver by any Party to this Agreement of any term, condition, or covenant of this Agreement shall not constitute a waiver of any other term, condition, or covenant. Waiver by any Party of any breach of the provisions of this Agreement shall not constitute a waiver of any other provision or a waiver of any subsequent breach or violation of any provision of this Agreement. Acceptance by City of any work or services by Consultant shall not constitute a waiver of any of the provisions of this Agreement. No delay or omission in the exercise of any right or remedy by a non -defaulting Party on any default shall impair such right or remedy or be construed as a waiver. Any waiver by either Party of any default must be in writing and shall not be a waiver of any other default concerning the same or any other provision of this Agreement. Consultant acknowledges and agrees that any actual or alleged failure on the part of City to inform Consultant of non -compliance with any requirement of this Agreement imposes no additional obligations on City nor does it waive any rights hereunder. Payment to Consultant for work performed pursuant to this Agreement shall not be deemed to waive any defects in work performed by Consultant.
7.7 Rights and Remedies are Cumulative. Except with respect to rights and remedies expressly declared to be exclusive in this Agreement, the rights and remedies of the Parties are cumulative and the exercise by either Party of one or more of such rights or remedies shall not preclude the exercise by it, at the same or different times, of any other rights or remedies for the same default or any other default by the other Party.
7.8 Legal Action. In addition to any other rights or remedies, either Party may take legal action, in law or in equity, to cure, correct or remedy any default, to recover damages for any default, to compel specific performance of this Agreement, to obtain declaratory or injunctive relief, or to obtain any other remedy consistent with the purposes of this Agreement. Notwithstanding any contrary provision herein, Consultant shall file a statutory claim pursuant to Government Code sections 905 et seq. and 910 et seq., in order to pursue a legal action under this Agreement.
7.9 Attorneys’ Fees. If either Party to this Agreement is required to initiate or defend or made a party to any action or proceeding in any way connected with this Agreement, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorneys ’ fees. Attorneys’ fees shall include attorneys ’ fees on any appeal, and a Party entitled to attorneys’ fees shall be entitled to all other reasonable costs for investigat ing such action, consultants’ fees, taking depositions and discovery and all other necessary costs the court allows which are incurred in such 526
litigation. Such fees and costs shall be enforceable whether or not such action is prosecuted to judgment.
ARTICLE 8. INDIVIDUAL LIABILITY, CONFLICTS AND NON-DISCRIMINATION
8.1 Non-liability of City Officers and Employees. No officer or employee of City shall be personally liable to Consultant, or any successor in interest, in the event of any default or breach by City or for any a mount which may become due to Consultant or to its successor, or for breach of any obligation of the terms of this Agreement.
8.2 Conflict of Interest. Consultant covenants that neither it, nor any officer or principal of its firm, has or shall acquire any interest, directly or indirectly, which would conflict in any manner with the interests of City or which would in any way hinder Consultant’s performance of services under this Agreement. Consultant further covenants that in the performance of this Agreement, no person having any such interest shall be employed by it as an officer, employee, agent or subcontractor without the express written consent of City. Consultant agrees to at all times avoid conflicts of interest or the appearance of any conflicts of interest with the interests of City in the performance of this Agreement. City, in its sole discretion, shall determine the existence of a conflict of interest and may terminate this Agreement in the event such a conflict of interest exists upon sending Consultant written notice describing the conflict. No officer or employee of City shall have any financial interest, direct or indirect, in this Agreement nor shall any such officer or employee participate in any decision relating to this Agreement which affects their financial interest or the financial interest of any corporation, partnership or association in which they are, directly or indirectly, interested, in violation of any State statute or regulation. Consultant warrants that it has not paid or given and will not pay or give any third party any money or other consideration for obtaining this Agreement.
8.3 Covenant Against Discrimination. Consultant covenants that, by and for itself, its heirs, executors, assigns, and all persons claiming under or through them, that there shall be no discrimination against or segregation of, any person or group of persons on account of race, color, creed, religion, sex, gender, sexual orientation, marital status, national origin, ancestry or other protected class in the pe rformance of this Agreement. Consultant shall take affirmative action to insure that applicants are employed and that employees are treated during employment without regard to their race, color, creed, religion, sex, gender, sexual orientation, marital sta tus, national origin, ancestry or other protected class.
ARTICLE 9. MISCELLANEOUS PROVISIONS
9.1 Notices. Any notice or other communication either Party desires or is required to give to the other Party or any other person in regards to this Agreement must be in writing and may be given either by (i) personal service, (ii) delivery by a reputable document delivery service, such as but not limited to, Federal Express, which provides a receipt showing date and time of delivery, or (iii) mailing in the United States Mail, certified mail, postage prepaid, return receipt requested, in the case of 527
City addressed to City Clerk at City of Murrieta, 1 Town Square, Murrieta California 92562, and in the case of Consultant, to the person(s) at the address designated on the cover page of this Agreement. Either Party may change its address by notifying the other Party of the change of address in writing. Notice shall be deemed communicated at the time personally delivered or in seventy -two (72) hours from the time of mailing if mailed as provided in this Section.
9.2 Interpretation. The terms of this Agreement shall be construed in accordance with the meaning of the language used and shall not be construed for or against either Party by reason of the authorship of this Agreement , headings used, or any other rule of construction which might otherwise apply.
9.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original, and such counterparts shall constitute one and the same instrument.
9.4 Integration; Amendment. This Agreement including the attachments hereto is the entire, complete and exclusive expression of the understanding of the Parties as to the Agreement . It is understood that there are no oral agreements between the Parties hereto affecting this Agreement, and this Agreement supersedes and cancels any and all prior and contemporaneous negotiations, arrangements, agreements and understandings, if any, between the Parties, concerning this Agreement, and none shall be used to interpret this Agreement. No amendment to or modification of this Agreement shall be valid unless made in writing and approved by Consultant and by City.
9.5 Severability. Should a portion of this Agreement be declared invalid or unenforceable by a judgment or decree of a co urt of competent jurisdiction, such invalidity or unenforceability shall not affect any of the remaining portions of this Agreement which are hereby declared as severable and shall be interpreted to carry out the intent of the Parties unless the invalid pr ovision is so material that its invalidity deprives either Party of the basic benefit of their bargain or renders this Agreement meaningless.
9.6 No Undue Influence. Consultant declares and warrants that no undue influence or pressure was used against or in co ncert with any officer or employee of City in connection with the award, terms or implementation of this Agreement, including any method of coercion, confidential financial arrangement, or financial inducement. No officer or employee of City has or will re ceive compensation, directly or indirectly, from Consultant, or from any officer, employee or agent of Consultant, in connection with the award of this Agreement or any work to be conducted as a result of this Agreement. Violation of this Section shall be a material breach of this Agreement entitling City to remedies in Section 7.4 and any and all remedies at law or equity.
9.7 Corporate Authority. The persons executing this Agreement on behalf of the Parties hereto warrant that (i) such Party is duly organized and existing, (ii) they are duly authorized to execute and deliver this Agreement on behalf of said Party, 528
(iii) by so executing this Agreement, such Party is formally bound to the provisions of this Agreement, and (iv) entering into this Agreement does not violate any provision of any other agreement to which said Party is bound. This Agreement shall be binding upon the heirs, executors, administrators, suc cessors and assigns of the Parties.
9.8 Federal Funding. If federal funding is being utilized to fund any part of the Project, as indicated on the Cover Page of this Agreement, the terms of Exhibit F are hereby incorporated herein by this reference. If no federal funding is being utilized, Exhibit F may be omitted.
[SIGNATURES ON FOLLOWING PAGE]
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01375.0001/962082.2 -15-
IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date and year first-above written.
CITY:
CITY OF MURRIETA, a California municipal
corporation
By:
Justin Clifton, City Manager
ATTEST: Effective Date:
Cristal McDonald, City Clerk
Date:
APPROVED AS TO FORM:
ALESHIRE & WYNDER, LLP
Tiffany Israel, City Attorney
Date:
CONSULTANT:
Two corporate officer signatures required when Consultant is a corporation, with one signature required from each of the following groups: 1) Chair person of the Board,
President or any Vice President; and 2) Secretary, any
Assistant Secretary, Chief Financial Officer or any
Assistant Treasurer. (Cal. Corp. Code § 313.) Appropriate attestations shall be included as may be required by the bylaws, articles of incorporation or other rules or
regulations applicable to Consultant’s business City.
By:
Name:
Title:
Date:
By:
Name:
Title:
Date:
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EXHIBIT "A"
SCOPE OF SERVICES
I. Consultant will perform the following Services:
COMMUNITY FACILITIES DISTRICT FORMATION SERVICES
Kickoff Meeting and Gathering Information: SCG will participate in regular meetings relating to the financing of the project. We will work to establish lines of communication and gain understanding of the specific goals, components and criteria to meet the City and the project’s needs. SCG will meet with the City’s Staff, legal counsel, team of consultants and project proponents to confirm the CFD’s schedule of events, procedural and financial considerations, establish the appropriate land use classificatio ns and discuss and identify the boundaries of the proposed CFD.
Data Collection: SCG will obtain the latest assessor’s parcel maps and equalized tax roll information from the Riverside County Assessor’s Office for the parcels within the proposed District, and Geographic Information System (GIS) shape files for creating the database and for mapping the proposed boundaries of the CFD.
Tax Spread: SCG will recommend a special tax structure by establishing a Special Tax formula for the necessary revenues to c over the approved public facilities improvement costs including administrative costs. Based on the proposed structure of the Special Tax formula, SCG will determine the appropriate methodology for allocating the costs to the various land use classifications and maintain consistency with the previously approved methodology of the City’s Goals and Policy for public financing.
Rate and Method of Apportionment: SCG will prepare a proposed Rate and Method of Apportionment (RMA) that takes into consideration the various land use classifications, tax zones and improvement areas, and provides the necessary flexibility for a variety of developments to be included in the CFD. The RMA will take into consideration: clarity of language in the definition of terms, abilit y of the property to be assigned to different tax classifications, and presence of a mechanism to levy taxes in the event of a change in projects and usage.
Public Report Preparation: SCG will prepare the CFD public report, including a description of the facilities to be included and projected annual special tax and present it to the City Council at the Public Hearing.
Boundary Map: SCG will prepare the Boundary Map illustrating the boundaries of territory proposed for inclusion in the district capturing the entirety of any parcel subject to taxation by the proposed district. The map shall meet the requirements of the Mello -Roos Act and the Riverside County Recorder’s Office. Additionally, SCG will record the map with the Recorder’s Office on 531
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behalf of the City.
Document Review and Preparation: SCG will review and prepare the required documents for the formation of the CFD. SCG will also assist the formation team in reviewing staff reports, resolutions, election materials and bond / legal documents for the formation of the CFD. SCG will assist in document preparation related to the CFD formation, presentation to the City Council, rating agencies, investors, and other stake holders as appropriate.
Notice of Special Tax Lien: SCG will prepare and provide a l ist of Assessor’s Parcels for the Notice of Special Tax Lien and records the notices.
Landowner Election: SCG will prepare a list of the owner names and acreages and obtain a certificate from the Registrar of Voters whether confirming there are, or are not, registered voters within the boundaries of the CFD.
Consulting Services: SCG will provide consulting services and advice to the City as necessary, including due diligence to ensure accuracy in the process and clear written documentation in our approach when structuring the Rate and Method of Apportionment and the Special Tax roll. SCG will assist with other duties as assigned by the City and /or its financial advisor.
Meetings: SCG will attend two (2) informal meetings or hearings held for the purpose of disseminating information to the public, including attending property owner meetings requested for property owner associations (POA) that may request to annex into the CFD. Prior to such meetings or hearings, SCG will be prepared to make a complete and factual presentation. We will also attend two (2) public meetings, as required by the appropriate improvement act(s), fully prepared to present necessary testimony and respond to public comments.
Landowner Election: SCG will prepare a list of the owner na mes and acreages and obtain a certificate from the Registrar of Voters whether confirming there are, or are not, registered voters within the boundaries of the annexation.
Notice of Special Tax Lien: SCG will provide a list of Assessor’s Parcel for the Notice of Special Tax Lien and record the notices.
COMMUNITY FACILITIES DISTRICT BOND SALE SERVICES
Kickoff Meeting and Gathering Information: The purpose of this task is to establish lines of communication and gain understanding of the specific goals, components and criteria to meet the City’s needs. SCG will meet with City Staff, legal counsel, team of consultants and project proponents to confirm the CFD’s schedule of events, procedural and financial considerations, establish the appropriate land use cla ssifications and discuss and identify the boundaries of the proposed CFD.
Data Collection: SCG will obtain the latest assessor’s parcel maps and equalized tax roll 532
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information from the Riverside County Assessor’s Office for the parcels within the proposed District, and Geographic Information System (GIS) shape files for our in-house GIS platform.
Bond Documents Table Preparation and Review: SCG will prepare and provide final calculation to the finance team for inclusion in the Preliminary Official Stateme nt (POS) and Official Statement (OS) to include: i) Assessed Values; ii) Assigned Special Taxes; iii) Delinquency; iv) Overlapping debt table; v) Sample tax bill; vi) Value-to-Lien ratios; vii) Top ten property owners; and viii) Aggregate tables. SCG will review the POS, OS and other legal documents as they relate to any items included in the CFD Public Report, the boundary map and any tables SCG provides.
Vicinity Maps: SCG will prepare location and area maps for inclusion in the POS and OS.
Special Tax Certificate: SCG will prepare and sign the Special Tax Consultant Certificate that certifies that the maximum special tax rates are sufficient to meet debt service requirements and coverage ratios for bonds to be issued.
COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES) ANNEXATION
SERVICES
Gathering Information: SCG will meet with the City’s Staff, legal counsel, team of consultants and project proponents to confirm the annexation schedule of events, procedural and financial considerations, estab lish the appropriate land use classifications, and discuss and identify the boundaries of the proposed annexation.
Data Collection: SCG will obtain the latest assessor’s parcel maps and equalized tax roll information from the Riverside County Assessor’s O ffice for the parcels within the proposed Districts, and Geographic Information System (GIS) shape files or the annexation.
Services Data: SCG will coordinate with the City in determining what the necessary levels of services that would be required for p roper allocation per the Rate and Method of Apportionment for the annexation.
Public Safety Tax Rates: SCG will establish a Special Tax Rates for each annexation determining the necessary revenues to cover operations costs including administrative costs. Based on the structure of the Special Tax formula, SCG will determine the appropriate methodology for allocating the costs to the various land use classifications consistent with the previously approved methodology of the City’s safety programs.
Annexation Boundary Map: SCG will prepare the Annexation Boundary Map, illustrating the boundaries of territory proposed for inclusion in the district, capturing the entirety of any parcel subject to taxation by the district. The map shall meet the requirements of the Mello-Roos Act and the Riverside County Recorder’s Office. Additionally, SCG will record the map with the Recorder’s Office.
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Consulting Services: SCG will provide consulting services and advice to the City as necessary.
This includes due diligence to ensure accuracy in the process, and provide clear written documentation in our approach to structuring the Rate and Method of Apportionment and the Special Tax roll. To assure and maintain quality assurance, SCG has instituted an internal auditing and review policy that requires a minimum of two individuals with the appropriate expertise to review and audit any information prior to dissemination of that information to the client.
Meetings: SCG will attend two (2) informal meetings or hearings held for th e purpose of disseminating information to the public, including attending property owner meetings requested for property owner associations (POA) that may request to annex into the CFD. Prior to such meetings or hearings, SCG will be prepared to make a complete and factual presentation. We will also attend two (2) public meetings, as required by the appropriate improvement act(s), fully prepared to present necessary testimony and respond to public comments.
Landowner Election: SCG will prepare a list of t he owner names and acreages and obtain a certificate from the Registrar of Voters whether confirming there are, or are not, registered voters within the boundaries of the annexation.
Notice of Special Tax Lien: SCG will provide a list of Assessor’s Parcel for the Notice of Special Tax Lien and record the notices.
COMMUNITY FACILITIES DISTRICT NO. 2025 -2 (MAINTENANCE SERVICES)
ANNEXATION SERVICES
Data Collection: SCG will obtain the latest assessor’s parcel maps and equalized tax roll information from the Riverside County Assessor’s Office for the parcels within the proposed Districts, and Geographic Information System (GIS) shape files or the annexation.
Maintenance Data: SCG will coordinate with the City in determining what the necessary levels of services that would be required for proper allocation per the Rate and Method of Apportionment for the annexation.
Maintenance Tax Rates: SCG will establish a Special Tax Rates for each annexation determining the necessary revenues to cover operations and maintenance costs including administrative costs.
Based on the structure of the Special Tax formula, SCG will determine the appropriate methodology for allocating the costs to the various land use classifications consistent with the previously approved methodo logy of the City’s landscape, lighting, street, parks, and drainage maintenance programs.
Annexation Boundary Map: SCG will prepare the Annexation Boundary Map, illustrating the boundaries of territory proposed for inclusion in the district, capturing the entirety of any parcel subject to taxation by the district. The map shall meet the requirements of the Mello-Roos Act and the Riverside County Recorder’s Office. Additionally, SCG will record the map with the Recorder’s Office.
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Consulting Services: SCG w ill provide consulting services and advice to the City as necessary.
This includes due diligence to ensure accuracy in the process, and provide clear written documentation in our approach to structuring the Rate and Method of Apportionment and the Special Tax roll. To assure and maintain quality assurance, SCG has instituted an internal auditing and review policy that requires a minimum of two individuals with the appropriate expertise to review and audit any information prior to dissemination of that information to the client.
Meetings: SCG will attend two (2) informal meetings or hearings held for the purpose of disseminating information to the public, including attending property owner meetings requested for property owner associations (POA) that may req uest to annex into the CFD. Prior to such meetings or hearings, SCG will be prepared to make a complete and factual presentation. We will also attend two (2) public meetings, as required by the appropriate improvement act(s), fully prepared to present necessary testimony and respond to public comments.
Landowner Election: SCG will prepare a list of the owner names and acreages and obtain a certificate from the Registrar of Voters whether confirming there are, or are not, registered voters within the boundaries of the annexation.
Notice of Special Tax Lien: SCG will provide a list of Assessor’s Parcel for the Notice of Special Tax Lien and record the notices.
COMMUNITY FACILITIES DISTRICT NO. 2025 -S (SAFETY SERVICES)
ADMINISTRATION
Land Use Research: SC G will use all resources available including tract maps, parcel maps and regular parcel data updates from the Assessor’s Offices. We are confident we are able to quickly identify residential and commercial/industrial developments, conduct Assessor’s parcel research, and provide accurate database management.
Subdivision Research: SCG will identify and obtain copies of all final tract or parcel maps recorded within the boundaries of the CFD. SCG will verify this information with the additional resources available.
Development Research: SCG will conduct development research to identify building permit issuance, building square footage and sites address for the new properties. Upon determination of this information, SCG will be able to provide the City with related GIS Data to be used for its own GIS database and that of the City, as appropriate.
Assessor’s Parcel Research: SCG will review any current Assessor’s Parcel Maps for updating the APN’s within the CFD Boundary.
Levy Audit Maps: SCG will generate annual Audit Maps and provides them to the City depicting the current year’s levied properties within the boundaries of the CFD through the implementation 535
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of our GIS platform. This will help us insure accuracy in identifying any parcel changes.
Database Mana gement: SCG will maintain a comprehensive database of the CFD and parcel information in a form such that the annual levy submission to Riverside County will follow the guidelines as outlined in the County’s fixed charge submission packet. SCG will maintain all data related to individual parcels including special tax information, a regularly updated delinquency history (delinquent amounts for each parcel including penalties and interest, reference to those referred to foreclosure action, and paid prior year delinquency information), current property ownership information, assessed valuation information, and much more.
Classification of Property: SCG will determine the appropriate property classification in accordance to the rate and method of apportionment. SCG will review the land use code information from the latest equalized roll for Riverside County and update our database for the special tax calculations annually.
Exempt Property: SCG will identify all property owned by public agencies or entities exempt from the special tax and classify them in accordance to the rate and method of apportionment. SCG will communicate these classifications to the City and report them on our annual levy detail reports.
We will confirm the location of these properties using our GIS database and illustrate them on our annual audit map.
Taxable Property: SCG will identify all taxable properties and classify them in accordance with the rate and method of apportionment. SCG will communicate with the City these classifications and report them on our annual levy detail reports. We will confirm the location of these properties using our GIS database and illustrate them on our annual audit map.
Budget Preparation: SCG will apply the rate and method of apportionment and calculate the annual special taxes to be levied for the current Fiscal Year. SCG will report this information to the City to assist in the budget review process. SCG will determine, with the City’s approval, the amount needed to meet the anticipated maintenance and administrative expenses for each Tax Zone for the current Fiscal Year. The CFD budgets will include accurate cost -recovery accounting including; a) ensuring the appropriate maintenance contract costs, b) any administrative expenses, c) material costs, d) cap ital costs, e) reserves and replacement costs, and f) other incidental costs are incorporated into the CFD budget to achieve maximum cost -to-benefit equity. We will also determine whether adequate and appropriate fund balances are identified.
Special Tax Rates: SCG will calculate the special tax rates for each Tax Zone and report this information to the City prior to submittal to the Riverside County Auditor’s-Controller’s Office.
Report Preparation: Once finalized, SCG will provide the City with a hard copy and an electronic copy of the Annual Levy Report containing the information used to calculate the annual installment amount for each parcel, as well as a summary of the total annual levy for the CFD.
Enrollment of Special Taxes: In consultation with t he City, SCG will determine the Levy 536
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requirement for the current Fiscal Year on or before August 10. SCG will calculate and prepare the annual levy for the CFD in a format and media acceptable for direct submission to the Auditor- Controller's Office prior to the statutory deadline, and shall perform adjustments and corrections to the levies on the property tax rolls as necessary.
Roll Changes and Adjusted Property Tax Bills: Upon determination that changes to the secured tax roll necessitates corrections/revisions after the deadline, SCG will research, recalculate, and with the City’s approval, rectifies the issue.
Responses to Property Owner Questions: SCG will serve as the initial and primary contact to the CFD property owners, title companies and other interested parties regarding the CFD proceedings and annual installments.
Toll Free Number: SCG will provide a toll free phone number for the City to refer property owners, title companies and other interested parties to in regard to CFD proceedings and a nnual installments.
Disclosure: SCG will prepare for the City approval any State and/or Federal Disclosure reporting requirements, including AB 2109 and AB 1666, pertaining to the CFD as applicable.
Electronic Format: SCG will provide an electronic copy of each report, as well as a hard copy of each report, to the City for internal use.
COMMUNITY FACILITIES DISTRICT NO. 2025 -2 (MAINTENACE SERVICES) ZONE 1 -
ADMINISTRATION
Land Use Research: SCG will use all resources available including tract maps, parc el maps and regular parcel data updates from the Assessor’s Offices. We are confident we are able to quickly identify residential and commercial/industrial developments, conduct Assessor’s parcel research, and provide accurate database management.
Subdivision Research: SCG will identify and obtain copies of all final tract or parcel maps recorded within the boundaries of the CFD. SCG will verify this information with the additional resources available.
Development Research: SCG will conduct develop ment research to identify building permit issuance, building square footage and sites address for the new properties. Upon determination of this information, SCG will be able to provide the City with related GIS Data to be used for its own GIS database and that of the City, as appropriate.
Assessor’s Parcel Research: SCG will review any current Assessor’s Parcel Maps for updating the APN’s within the CFD Boundary.
Levy Audit Maps: SCG will generate annual Audit Maps and provides them to the City depicting 537
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the current year’s levied properties within the boundaries of the CFD through the implementation of our GIS platform. This will help us insure accuracy in identifying any parcel changes.
Database Management: SCG will maintain a comprehensive database of the CFD and parcel information in a form such that the annual levy submission to Riverside County will follow the guidelines as outlined in the County’s fixed charge submission packet. SCG will maintain all data related to individual parcels including special tax information, a regularly updated delinquency history (delinquent amounts for each parcel including penalties and interest, reference to those referred to foreclosure action, and paid prior year delinquency information), current property ownership information, assessed valuation information, and much more.
Classification of Property: SCG will determine the appropriate property classification in accordance to the rate and method of apportionment. SCG will review the land use code information from the latest equalized roll for Riverside County and update our database for the special tax calculations annually.
Exempt Property: SCG will identify all property owned by public agencies or entities exempt from the special tax and classify them in accordance to the rate and method of apportionment. SCG will communicate these classifications to the City and report them on our annual levy detail reports.
We will confirm the location of these properties using our GIS database and illustrate them on our annual audit map.
Taxable Property: SCG will identify all taxable properties and classify them in accordance with the rate and method of apportionment. SCG will communicate with the City these classifications and report them on our annual levy detail reports. We will confirm the location of these properties using our GIS database and illustrate them on our annual audit map.
Budget Preparation: SCG will apply the rate and method of apportionment and calculate the annual special taxes to be levied for the current Fiscal Year. SCG will report this information to the City to assist in the budget review process. SCG will determine, with the City’s approval, the amount needed to meet the anticipated maintenance and administrative expenses for each Tax Zone for the current Fiscal Year. The CFD budgets will include accurate cost -recovery accounting including; a) ensuring the appropriate maintenance contract costs, b) any administrative expenses, c) material costs, d) capital costs, e) reserves and replacement costs, and f) other incidental costs are incorporated into the CFD budget to achieve maximum cost -to-benefit equity. We will also determine whether adequate and appropriate fund balances are identified.
Special Tax Rates: SCG will calculate the special tax rates for each Tax Zone and report this information to the City prior to submittal to the Riverside County Auditor’s-Controller’s Office.
Report Preparation: Once finalized, SCG will provide the City with a hard copy and an electronic copy of the Annual Levy Report containing the information used to calculate the annual installment amount for each parcel, as well as a summary of the total annual levy for the CFD.
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Enrollment of Special Taxes: In consultation with the City, SCG will determine the Levy requirement for the current Fiscal Year on or before August 10. SCG will calculate and prepare the annual levy for the CFD in a format and media acceptable for direct submission to the Auditor- Controller's Office prior to the statutory deadline, and shall perform adjustm ents and corrections to the levies on the property tax rolls as necessary.
Roll Changes and Adjusted Property Tax Bills: Upon determination that changes to the secured tax roll necessitates corrections/revisions after the deadline, SCG will research, reca lculate, and with the City’s approval, rectifies the issue.
Responses to Property Owner Questions: SCG will serve as the initial and primary contact to the CFD property owners, title companies and other interested parties regarding the CFD proceedings and annual installments.
Toll Free Number: SCG will provide a toll free phone number for the City to refer property owners, title companies and other interested parties to in regard to CFD proceedings and annual installments.
Disclosure: SCG will prepare for the City approval any State and/or Federal Disclosure reporting requirements, including AB 2109 and AB 1666, pertaining to the CFD as applicable.
Electronic Format: SCG will provide an electronic copy of each report, as well as a hard copy of each report, to the City for internal use.
COMMUNITY FACILITIES DISTRICT NO. 2025 -4 (RUSTIC MEADOWS)
ADMINISTRATION
Debt Service Component: SCG will coordinate with the City’s fiscal agent to review debt service schedules and determine the amount needed to pay principal and interest on the outstanding bonds.
We independently maintain a debt service schedule for the District as quality assurance and verify the appropriate debt service amounts are identified.
Calculation of Special Taxes: SCG will annually calculate and apportion the special taxes for the District in accordance with the Rate and Method of Apportionment (RMA) of the Special Tax.
The annual calculation will consist of assigning the special tax classes to each parcel within the District per the RMA and determine the special tax amount that will satisfy the special tax requirement.
Annual Levy Preparation and Submittal: SCG will determine the Annual Levy requirement for the current Fiscal Year on or before August 10. SCG will calculate and prepare the annual levy for the District in a format and media acceptable for direct submission to the Riverside County Auditor - Controller's Office, including the enabling resolution, prior to the statutory deadline and shall perform adjustments and corrections to the levies on the property tax rolls as necessary.
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Staffing and Contact Information: SCG will provide a toll -free telephone number, of SCG designation, for inclusion on the regular property tax billing next to the specific line item to facilitate contact with the public, and provide payoff calculations, if requested. City Staff may also refer property owners, title companies and other interested parties to that toll -free number in regards to the special tax proceedings and annual installments.
Annual Levy Report: SCG will prepare any necessary documentation required for assessments of the special tax to be submitted to the County for enrollment. SCG will also provide the City with a Levy Report for the tax enrollments for the District. These reports will provide the City a full listing of the parcels levied for the District including information relevant to the calculation of the assessment for the City’s approval.
Disclosure for Prospective Property Purchases: SCG will assist City staff with providing the proper disclosure of Assessment information for prospective property purchases as required by Sections 53340.2 (b) and 53341.5 of the State of California Government Code.
Annual Continuing Disclosure: SCG will prepare Annual Continuing Disclosure Reports that meet the guidelines of the Continuing Disclosure requirements for the District as stated by the continuing disclosure certificate under SEC Rule 10b-5and 15c2-12. SCG will provide this report to the City for review and approval. Upon approval SCG wi ll disseminate the reports with the Municipal Securities Rule Making Board (MSRB) using Electronic Municipal Market Access (EMMA) and to any other party directed by the applicable continuing disclosure agreement.
Bond Call: SCG will perform an analysis to determine the par amount of the bonds to be called, to calculate any applicable premium, and to determine which maturities to call from and prepare a revised debt service schedule. SCG will coordinate the bond call with the Fiscal Agent/Trustee to ensure that bonds are called per the redemption provisions of the bond issue.
Release of Lien: SCG will prepare the Release of Lien, required by Revenue and Taxation Code 163, upon confirmation a prepayment has been made by the property owner. SCG will record th e release within five (5) days of receiving the signed release and provide a copy to the City.
Delinquency Monitoring: SCG will provide delinquency management services to the City regarding the District. SCG will monitor delinquencies as required for the Annual Continuing Disclosure agreement and provide delinquency reporting, prepare notifications to property owners, coordinate with the City and Foreclosure Counsel, assist in the collection process, and help monitor any payment plans.
Foreclosure Coordin ation (Bonded Districts Only): SCG will assist in preparing documents submitted by the City requesting authorization of foreclosure action. This includes preparation and recordation of the Notice of Intent to Commence Foreclosure, preparation of Exhibits f or the Resolution commencing foreclosure, and coordination of the removal of the assessments approved for foreclosure from the tax roll. SCG will provide delinquent amounts (including penalty and interest at the time the foreclosure is transferred) to City staff. 540
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Bond Rating Agencies: SCG will assist City staff in providing information to bond rating agencies when needed.
Current and Future CFD Laws: SCG is well versed in all case laws approved affecting assessment and special tax districts. We continue to attend educational seminars and conferences and discuss these issues with other industry professionals on an annual basis. SCG will provide City Staff with periodic updates as new case law is approved and keep the City in compliance with all statutory and regulatory laws related to the City’s special finance district.
Notice of Special Tax: SCG will provide and record a Notice of Special Tax Disclosure as required by California Government Code Sections 53340.2(b) and 53341.5.
SB 165 Reporting: SCG will provide all materials to assist the City in preparing reports for the legislation that was approved in 2001 requiring additional reporting requirements outlined in Section 53411 of the Government Code (a) and (b).
AB 2109: SCG will prepare all reports for the City’s approval of any State and/or Federal reporting requirements including the Assembly Bill 2109, if applicable.
California Debt and Investment Advisory Commission (CDIAC): SCG will prepare all reports for the City’s approval of any State and/or Federal reporting requirements pertaining to the District including the California Debt and Investment Advisory Commission (CDIAC), if applicable.
Annual Reporting AB 1666: SCG will provide an Annual Report (AB 1666) to the City which will include identification of the Community Facilities District (CFD) administrative cost items eligible for the recovery by the public agency, review of fund balances and any surplus/deficit funds, debt service requirements, delinquency reporting, and a cover letter providi ng any related recommendations or issues. The report will include a series of schedules, including a District summary that will be useful for City staff to reference.
Meetings: SCG will attend City Meetings, Public Hearings, and/or staff meetings annually as determined by the City for the annual enrollment. We will attend additional hearings and public meetings as required by the appropriate improvement act(s) fully prepared to present all necessary testimony and to respond to all public comments.
Data Collection: SCG has the latest assessor’s parcel maps and equalized tax roll information from the Riverside County Assessor’s Office, including Geographic Information System (GIS) shape files for the parcels within the District. The database will include fin al tract and/or parcel map recordation information, building permits, and the appropriate building and parcel information, as well as certificate of compliance information for properties within each District to be used for the calculation of the annual district assessments and made readily viewable using a KML file accessible and searchable, including APN and street address, using Google Earth.
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Budget Review: SCG will review the District budget provided by the City and coordinate with City staff to assist with accurate cost-recovery accounting, incorporating the actual maintenance costs into the District budget to achieve maximum cost-to-benefit equity.
Annual Enrollment Correspondence: SCG will prepare all Proposition 218 compliance forms for each fund number utilized by the City for the Auditor-Controller’s Office, as well as any summary statements and authorized signature forms. SCG will identify and discuss with City staff any legislation impacts and changes made to the documents.
Resubmittals and Adjusted Property Tax Bills: If any changes to the secured tax roll necessitate corrections/revisions after the deadline, SCG will research, recalculate and, with the City approval, rectify the issue. We will notify the City of the assessor’s parcel numbers that were rejected by the County and therefore may not be assessed.
Handbills: SCG will prepare and mail hand bills for those parcels the County does not generate a tax bill. The hand bills would include the City letterhead, invoices with two (2) installmen ts, and would be payable to the directly to the City.
Prepayment Calculation: SCG will calculate the special tax prepayment amount for a parcel(s) and provide any additional information as requested related thereto. The party requesting the calculation shall pay the fee of any prepayment calculation.
Indenture Compliance: SCG will periodically review and monitor the City’s compliance with the Indenture of Trust or Fiscal Agent Agreement as it relates to the flow of the special taxes. This will be incorporated in the annual budget review process.
II. All work product is subject to review and acceptance by the City, and must be revised by the Consultant without additional charge to the City until found satisfactory and accepted by City.
III. Consultant will utilize the following personnel to accomplish the Services:
SCG will meet with the City’s Staff, legal counsel, team of consultants and project proponents to confirm the CFD’s schedule of events, procedural and financial considerations, establish t he appropriate land use classifications and discuss and identify the boundaries of the proposed CFD.
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EXHIBIT "B"
SPECIAL REQUIREMENTS
(Superseding Contract Boilerplate)
N/A
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EXHIBIT “C”
SCHEDULE OF COMPENSATION
I. City will compensate Consultant for the Services performed upon submission of a valid invoice. Each invoice is to include
A. Line items for all personnel describing the work performed, the number of hours worked, and the hourly rate.
B. Line items for all materials and equipment properly charged to the Services.
C. Line items for all other approved reimbursable expenses claimed, with supporting documentation.
D. Line items for all approved subcontractor labor, supplies, equipment, materials, and travel properly charged to the Services.
II. The total compensation for all Services shall not exceed the Contract Sum as provided in the Cover Page of this Agreement.
III. Consultant’s billing rates for any hourly Services are attached as Exhibit C -1. In connection with the services provided pursuant to the terms of this Agreement, City will pay Consultant upon City’s receipt of a written invoice provided by Consultant no more than monthly. City will pay Consultant for work completed, billed in increments of six minutes (0.1 hours), not to exceed the Contract Sum. The City will reimburse the Consultant for reasonable out -of-pocket expenses related to performing services on behalf of the Client that are approved in advance in writing by the City such as mileage, copies, binding costs, postage, parking, travel, and lodging expenses as part of the not to exceed Contract Sum. To receive reimbursements, the Consultant must provide the City with a receipt and a description of the expense incurred along with the invoice.
No mark up on expenses may be added.
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EXHIBIT “C-1”
COMPENSATION
I. SCG proposes a fixed fee schedule below for CFD Formation, Annexation, and Bond Sale Services performed according to the scope of services listed in Exhibit A.
Hourly Rates
A. For the services performed related to the projects which are not listed herein, compensation shall be at the hourly rates set forth, together with reimbursement, at cost, for incidental expenses incurred in connection with such services, together with reimbursement for outside services at cost plus 15%.
II. SCG proposes a fixed fee schedule below for the annual administration for CFD 2025-S (Safety Services), CFD 2025-2 (Maintenance Services), Annexation No. 1, and CFD 2025-4 (Rustic Meadows), mentioned in Exhibit A.
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Hourly Rates
A. For the services performed related to the projects which are not listed herein, compensation shall be at the hourly rates set forth, together with reimbursement, at cost, for incidental expenses incurred in connection with such services, together with reimbursement for outside services at cost plus 15%.
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EXHIBIT "D"
SCHEDULE OF PERFORMANCE
I. Consultant shall perform Services as set forth in Exhibit A as requested by City staff.
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II. The Department Contact may approve extensions for performance of the Services in accordance with Section 3.2.
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EXHIBIT E
INSURANCE REQUIREMENTS
Consultant shall procure and maintain for the duration of the contract insurance against claims for injuries to persons or damages to property which may arise from or in connection with the performance of the work hereunder by the Consultant, its agents, representatives, or employees.
MINIMUM SCOPE AND LIMIT OF INSURANCE
Coverage shall be at least as broad as:
1. Commercial General Liability (CGL): Insurance Services Office Form CG 00 01 covering CGL on an “occurrence” basis, including products and completed operations, property damage, bodily injury and personal & advertising injury with limits no less than $2,000,000 per occurrence. If a general aggregate limit applies, either the general aggregate limit shall apply separatel y to this project/location (ISO CG 25 03 or 25 04) or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: 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.
3. Workers’ Compensation insurance as required by 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. (Not required if consultant provides written verification it has no employees)
4. Professional Liability (Errors and Omissions) Insurance appropriates to the Consultant’s profession, with limit no less than $2,000,000 per occurrence or claim, $2,000,000 aggregate.
5. Cyber: Vendor/Consultant shall procure and maintain for the duration of the contract insurance against claims for security breaches, system failures, injuries to persons, damages to software, or damages to property (including computer equipment) which may arise from or in connection with the performance of the work hereunder by the Vendor, its agents, representatives, or employees. Vendor shall procure and maintain for the duration of the contract insurance claims arising out of their services and including, but not limited to loss, damage, theft or other mi suse of data, infringement of intellectual property, invasion of privacy and breach of data.
Cyber Liability Insurance, with limits not less than $2,000,000 per occurrence or claim, $2,000,000 aggregate. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by Vendor in this agreement and shall include, but not be 548
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limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic information, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.
6. Technology Professional Liability Errors & Omissions (Only if vendor is providing a technology service (data storage, website designers, etc.,) or product (software providers)
Technology Professional Liability Errors and Omissions Insurance appropriate to the Consultant’s profession and work hereunder, with limits not less than $2,000,000 per occurrence. Coverage shall be sufficiently broad to respond to the duties and obligations as is undertaken by the Vendor in this agreement and shall include, but not be limited to, claims involving security breach, system failure, data recovery, business interruption, cyber extortion, social engineering, infringement of intellectual property, including but not limited to infringement of copyright, trademark, trade dress, invasion of privacy violations, information theft, damage to or destruction of electronic inf ormation, release of private information, and alteration of electronic information. The policy shall provide coverage for breach response costs, regulatory fines and penalties as well as credit monitoring expenses.
a. The Policy shall include, or be endorsed to include, property damage liability coverage for damage to, alteration of, loss of, or destruction of electronic data and/or information “property” of the Agency in the care, custody, or control of the Vendor.
If the Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.
Other Insurance Provisions
The insurance policies are to contain, or be endorsed to contain, the following provisions:
Additional Insured Status
The City, its officers, officials, employees, and volunteers are to be covered as additional insureds on the CGL policy with respect to liability arising out of work or operations performed by or on behalf of the Consultant including materials, parts, or equipment furnished in connection with such work or operations. General liability coverage can be provided in the form of an endorsement to the Consultant's insurance (at least as broad as ISO Form CG 20 10 11 85 or if not available, through the addition of both CG 20 10, CG 20 26, CG 20 33, or CG 20 38; and CG 20 37 if a later edition is used).
Primary Coverage
For any claims related to this contract, the Consultant’s insurance coverage shall be primary and non -contributory and at least as broad as ISO CG 20 01 04 13 as respects the City, its officers, officials, employees, and volunteers. Any insurance or self -insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Consultant’s insurance 549
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and shall not contribute w ith it. This requirement shall also apply to any Excess or Umbrella liability policies.
Umbrella or Excess Policy
The Consultant may use Umbrella or Excess Policies to provide the liability limits as required in this agreement. This form of insurance will be acceptable provided that all of the Primary and Umbrella or Excess Policies shall provide all of the insurance coverages herein required, including, but not limited to, primary and non -contributory, additional insured, Self -Insured Retentions (SIRs), indemnity, and defense requirements. The Umbrella or Excess policies shall be provided on a true “following form” or broader coverage basis, with coverage at least as broad as provided on the underlying Commercial General Liability insurance. No insurance policies maintained by the Additional Insureds, whether primary or excess, and which also apply to a loss covered hereunder, shall be called upon to contribute to a loss until the C onsultant’s primary and excess liability policies are exhausted.
Notice of Cancellation
Each insurance policy required above shall provide that coverage shall not be canceled, except with notice to the City.
Waiver of Subrogation
Consultant hereby grants to City a waiver of any right to subrogation which any insurer of said Consultant may acquire against the City by virtue of the payment of any loss under such insurance.
Consultant agrees to obtain any en dorsement that may be necessary to affect this waiver of subrogation, but this provision applies regardless of whether or not the City has received a waiver of subrogation endorsement from the insurer.
Self-Insured Retentions
Self-insured retentions must be declared to and approved by the City. The City may require the Consultant to purchase coverage with a lower retention or provide proof of ability to pay losses and related investigations, claim administration, and defense expenses within the retention. The policy language shall provide, or be endorsed to provide, that the self -insured retention may be satisfied by either the named insured or City. The CGL and any policies, including Excess liability policies, may not be subject to a self -insured retention (SIR) or deductible that exceeds $25,000 [fill in the amount for your comfort level for the specific Con sultant and job – it could be much higher, or in the case of a very small Consultant, you might want it lower] unless approved in writing by City. Any and all deductibles and SIRs shall be the sole responsibility of Consultant or subcontractor who procured such insurance and shall not apply to the Indemnified Additional Insured Parties. City may deduct from any amounts otherwise due Consultant to fund the SIR/deductible. Policies shall NOT contain any self -insured retention (SIR) provision that limits the satisfaction of the SIR to the Named. The policy must also provide that Defense costs, including the Allocated Loss Adjustment Expenses, will satisfy the SIR or deductible. City reserves the right to obtain a copy of any policies and endorsements for verification.
Acceptability of Insurers
Insurance is to be placed with insurers authorized to conduct business in the state with a current A.M. Best’s rating of no less than A:VII, unless otherwise acceptable to the City. 550
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Claims Made Policies (note – should be applicable only to professional liability, see below) If any of the required policies provide claims-made coverage:
1. The Retroactive Date must be shown, and must be before the date of the contract or the beginning of contract work.
2. Insurance must be maintained and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
3. If coverage i s canceled or non -renewed, and not replaced with another claims -made policy form with a Retroactive Date prior to the contract effective date, the Consultant must purchase “extended reporting” coverage for a minimum of five (5) years after completion of work.
Verification of Coverage
Consultant shall furnish the City with original certificates and amendatory endorsements or copies of the applicable policy language effecting coverage required by this clause and a copy of the Declarations and Endorsements Pages of the CGL and any Excess policies listing all policy endorsements. All certificates and endorsements and copies of the Declarations & Endorsements pages are to be received and approved by the City before work commences. However, failure to obtain the required documents prior to the work beginning shall not waive the Con sultant’s obligation to provide them. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements required by these specifications, at any time.
City reserves the right to modify these requirements, including limits, based on the nature of the risk, prior experience, insurer, coverage, or other special circumstances.
Subcontractors
Consultant shall require and verify that all subcontractors maintain insurance meeting all the requirements stated herein, and Contractor shall ensure that City is an additional insured on insurance required from subcontractors.
Duration of Coverage
CGL & Excess liability policies for any construction related work, including, but not limited to, maintenance, service, or repair work, shall continue coverage for a minimum of 5 years for Completed Operations liability coverage. Such Insurance must be maintained, and evidence of insurance must be provided for at least five (5) years after completion of the contract of work.
Special Risks or Circumstances
City reserves the right to modify these requirements, including limits, based on the nature of th e risk, prior experience, insurer, coverage, or other special circumstances.
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EXHIBIT F
FEDERAL REQUIREMENTS
(Only applicable if required on cover page of agreement)
N/A
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CITY OF MURRIETA
City Council Meeting Agenda
Report
8/19/2025
Agenda Item No. 14.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: RN Mendoza, Financial Analyst
SUBJECT:
Approve Agreement with ClearGov Inc. for Digital Budget Book, Capital Budgeting and Transparency Software
RECOMMENDATION
Amend the Fiscal Year 2025/26 Operating Budget and establish an additional appropriation of $1,250; Approve a four year service agreement with ClearGov Inc. for the Digital Budget Book, Capital Budgeting and Transparency Software for a total amount not to exceed $186,751.17; Waive the competitive bidding requirements; and
Authorize the City Manager, or his designee, to execute the ClearGov Service Order/Agreement.
PRIOR ACTION/VOTE
On June 3, 2025, the City Council adopted Joint Resolution No. 25-4837, MLB 25-201; CSD 25-285, RSA 25- 35, MHA 25-45 approving the Operating Budget for Fiscal Years 2025/26 and 2026/27, authorizing Unassigned Fund Balances to be set aside in various Operating and Sustainability Reserves, approving the use of previously set aside Sustainability Reserves, and authorizing the transfer of those funds (Vote: 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
DISCUSSION
Historically, the City of Murrieta (City) Finance Department staff has been using a combination of reports from its Enterprise Resource Planning System (ERP or financial software) and manual spreadsheets using Microsoft Excel to prepare, present, and publish its Operating Budget and the Capital Improvement Plan (CIP) Budget. In Spring 2022, the City embarked on an informal solicitation process and live demonstrations of commercially available governmental budget book software from OpenGov, ClearGov, Questica, and other CITY OF MURRIETA Printed on 8/14/2025Page 1 of 3
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Agenda Item No. 14.
software companies.
Digital Budget Book Software
In July 2022, the City entered into an agreement with ClearGov Inc. for their Digital Budget Book software under the City Manager’ssigning authority. Since using the Digital Budget Book software in 2023 and again in 2025 to prepare the biennial budget book, Finance has streamlined creating the Budget Book by enabling different departments to collaborate directly within this cloud-based software, alongside the Finance team. The Digital Budget Book has also ensured that a current version of the budget is maintained, providing consistent formatting, data integrity, and transparency for our stakeholders. As a result of using this module, the City has continued to receive acclaim and recognition for its Operating Budget Report from the Government Finance Officers Association.
Capital Budgeting Software
The CIP and budget are currently developed using Microsoft Excel, Word, and other applications to prepare, present, and publish the report. Similarly, by fully integrating with a cloud-based software for the CIP budget process, staff can collaborate concurrently with the Finance team. The single CIP module portal will enhance collaboration by eliminating the need for multiple budget templates. It will also provide historical analytics, create a cohesive and transparent budget, reduce data entry and formatting hours, and make the final budget available immediately. Staff have received acclaim and recognition for the CIP budget from the California Society of Municipal Finance Officers and should expect to receive and produce a compliant and award- winning budget by switching to ClearGov’s digital CIP budget software.
Transparency Portal Software
To continue the City’s tradition in conveying and visualizing the City’s budget vs. actuals, programs, and performance metrics to different stakeholders in a transparent online platform, the Finance team proposes moving its transparency portal to ClearGov. The transparency portal, combined with the Digital Budget Book and Capital Budget software, visualizes the impact of each project by sharing interactive details while still presenting a clear and concise narrative on the budget process, key performance metrics, and interactive project and program details. The transparency portal provides stakeholders with a more engaging tool to display financial information, making it more easily understood at both high-level and granular levels.
To enhance efficiency, cost-effectiveness, and the quality of service offered to stakeholders, the Finance team has conducted a review of its current budget book and transparency software services. Staff proposes consolidating the digital budget book, capital improvement budget, and transparency portal into a single vendor solution. The proposed agreement will eliminate the need for multiple software services to achieve a single transparency portal, digital budget book, and capital budget software. In the same vein, some of the City’sneighboring communities in Riverside County and Southern California have chosen ClearGov in the past few years, namely, Lake Elsinore, Beaumont, Corona, Downey, Redondo Beach, South El Monte, Dana Point, La Palma, Lake Forest, Manhattan Beach, and Tustin. To continue the tradition and excellence in providing a transparent budget and a robust, public-facing, and transparent financial platform, staff recommend selecting ClearGov Inc. and awarding a four year contract through June 30, 2029.
Section 3.08.280.G of the Murrieta Municipal Code allows the City Council to waive competitive bidding procedures when it determines that doing so would be inefficient, impractical, or unnecessary. Staff recommend waiving the formal request for proposal process, as it will create inefficiency, requiring renegotiation of the terms of a new module, and could potentially necessitate reallocating resources to re- implement different software. This would delay the preparation of the Fiscal Year (FY) 2026/27 CIP and budget and continued use of the Digital Budget Book. As a courtesy, ClearGov has maintained the City’sDigital Budget Book on the City’s website despite a lapse in the current agreement.
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Agenda Item No. 14.
FISCAL IMPACT
The total cost of the four year agreement with ClearGov Inc. will not exceed $186,751.17.
The current biennial budget includes an approved allocation of $27,550 for the transparency portal software and $14,162.50 for the digital budget book. To fully fund the initial set-up and additional modules, Finance recommends that the City Council approve an additional appropriation of $1,250 in FY 2025/26 (GL 1102600- 62160).
The contract reflects a 20% discount, amounting to approximately $27,720, applied to the initial set-up and continues through the full term of the agreement, due to the inclusion of both the Capital Improvement and Transparency modules. By transitioning from OpenGov to ClearGov for the Transparency Module, the City is projected to save an additional $9,786 over the life of the agreement. This switch not only results in cost savings but also provides access to a new tool for developing the Capital Improvement Budget Book, ultimately reducing both expenses and staff workload.
Future year allocation considerations will be included in a future quarterly budget update and biennial budget process.
ATTACHMENTS
1. ClearGov Service Agreement for Digital Budget Book
2. ClearGov Service Agreement for Capital Budgeting and Transparency Portal CITY OF MURRIETA Printed on 8/14/2025Page 3 of 3
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Service Order
2 Mill & Main; Suite 630; Maynard, MA 01754
Created by Order Date
Contact Phone Order valid if signed byContact Email
Customer Contact Billing Contact
Address Title Title
City, St, Zip Email Email
Phone PO # (If any)
Subscription Services Tier Service Fees
Billing Terms and Conditions
Valid Until
Payment
Initial Period
Rate Increase
Rate Increase
Original Service Order
Taxes
Michael Lanza Jul 3, 2025
(617) 816-7726
[email protected]
City of Murrieta Jennifer Terry Accounts Payable
1 Town Square Finance Manager Accounts Payable
Murrieta, CA 92562 [email protected] [email protected] 951-304-2489
ClearGov Base Platform - Civic Edition Tier 4 $ 4,500.00 ClearGov Digital Budget Book - Civic Edition Tier 4 $ 16,100.00 Pricing set forth herein is valid only if ClearGov Service Order is executed on or before this date.
All invoices are due Net 30 days from the date of invoice. 3% per annumDuring the Initial Service Period, the Annual Subscription Service Fee shall automatically increase by this amount. 6% per annumAfter the Initial Service Period, the Annual Subscription Service Fee shall automatically increase by this amount.
As of Jul 1, 2026, this ClearGov Service Order supersedes the ClearGov Service Order with an Order Date of June 23, 2022, (the "Original Service Order"). The Original Service Order shall be null and void as of Jul 1, 2026.
The Service Fees and Billing amounts set forth above in this ClearGov Service Order include applicable taxes.
In accordance with the laws of the applicable state, in the event that sales, use or other taxes apply to this transaction, ClearGov shall include such taxes on applicable invoices and Customer is solely responsible for such taxes, unless documentation is provided to ClearGov demonstrating Customer's exemption from such taxes.
Aug 29, 2025
Customer Information
The Services you will receive and the Fees for those Services are...
ClearGov will provide your Services according to this schedule...
To be clear, you will be billed as follows...
General Terms & Conditions
Total ClearGov Subscription Service Fee - Billed ANNUALLY IN ADVANCE $ 20,600.00 Aug 29, 2025
Net 30
DO NOT
Period Start Date End Date Description
Initial
Billing Date(s) Amount(s) Notes
Jul 1, 2026 Jun 30, 2029 ClearGov Subscription Services Jul 1, 2026 $20,600.00
Jul 1, 2027 $21,218.00
Jul 1, 2028 $21,854.54
Annual Subscription Fee
Annual Subscription Fee
Annual Subscription Fee
Additional subscription years and/or renewals will be billed annually in accordance with pricing and terms set forth herein.
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Term & Termination
Auto-Renewal
Agreement
Signature Signature
Name Name
Title Title
Select Order Type for this Service Order If XS: Original Service Order Date Subject to the termination rights and obligations set forth in the ClearGov BCM Service Agreement, this ClearGov Service Order commences upon the Order Date set forth herein and shall continue until the completion of the Service Period(s) for the Service(s) set forth herein. Each Service shall commence upon the Start Date set forth herein and shall continue until the completion of the applicable Service Period. To be clear, Customer shall have the option to Terminate this Service Order on an annual basis by providing notice at least thirty (30) days prior to the end of the then current Annual Term.
After the Initial Period, the Service Period for any ClearGov Annual Subscription Services may renew for successive annual periods (each an “Annual Term”), upon the written agreement of both parties prior to the end of the then current Annual Term.
The signature below affirms your commitment to pay for the Service(s) ordered in accordance with the terms set forth in this ClearGov Service Order and also acknowledges that you have read and agree to the terms and conditions set forth in the attached BCM Service Agreement. This Service Order incorporates by reference the terms of such BCM Service Agreement. In event of any conflict between the terms set forth in this ClearGov Service Order and any terms or conditions set forth in the ClearGov BCM Service Agreement, the terms of this ClearGov Service Order shall prevail.
Justin Clifton Bryan A. Burdick
City Manager President
RI
Customer ClearGov, Inc.
Order type (ClearGov internal use only)
Please e-mail signed Service Order to [email protected] or Fax to (774) 759-3045 557
ClearGov BCM Service Agreement
ClearGov, Inc. Service Agreement ver. 02.02.23 Page 1 of 4 This ClearGov BCM Service Agreement (the “Agreement”) is made and entered into by and between ClearGov, Inc. (“ClearGov”), a Delaware corporation with its principal offices at 2 Mill & Main; Suite 630, Maynard, MA 01754 and Customer (as defined in the applicable ClearGov Service Order) (each a “Party” and collectively the “Parties”). This Agreement governs the terms and conditions under which Customer may utilize the ClearGov Service as set forth herein and as specified in one or more applicable ClearGov Service Order(s) executed by Customer in connection herewith and incorporated herein (the “ClearGov Service Order(s)”). In event of any conflict between the terms set forth in this Agreement and any terms or conditions of any applicable ClearGov Service Order, the terms of the applicable ClearGov Service Order shall prevail. WHEREAS ClearGov owns and operates the ClearGov Service, a Web-based SaaS solution that includes a variety of ClearGov App(s) and provides various features and functionality via such ClearGov App(s); and WHEREAS Customer wishes to utilize the ClearGov Service in order to convey fiscal budget, key metrics and other information to the public as well as to leverage the functionality of such ClearGov App(s); NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, ClearGov and Customer hereby agree as follows: 1) Definitions. Capitalized terms used in this Agreement, and not otherwise defined herein, shall have the following meanings: 1.1) "Account" means an access point for the ClearGov Service that requires registration by the Customer. 1.2) “ClearGov API” means an application programming interface that provides access to specified content and functionality within certain ClearGov Apps. 1.3) “ClearGov Apps” means collectively all of the Web applications hosted by ClearGov and available via the ClearGov Service, including but not limited to the applications listed in any applicable ClearGov Service Order. All features, functionality, reports, etc. for each ClearGov App are included as material elements of the applicable ClearGov App. ClearGov may modify, combine, add or delete ClearGov Apps from the ClearGov Service from time to time at its sole discretion, provided that in the event that ClearGov terminates or deletes any ClearGov App to which Customer is actively subscribing, ClearGov shall provide a pro-rata refund for the applicable portion of the Subscription Service Fee for the remainder of the then current Service Period. 1.4) “ClearGov Data” means any aggregated and normalized key metrics and benchmarking data collected by ClearGov for the delivery of the ClearGov Service. 1.5) “ClearGov Service” means the complete set of ClearGov software and related materials including but not limited to the ClearGov Apps, ClearGov Data, ClearGov Web Site, the Documentation and the Software. 1.6) “ClearGov Web Site” means the Web site owned and operated by ClearGov and made available at the following URL: http://www.ClearGov.com and/or any successor site(s). 1.7) “Customer PDF” means one or more PDF files of Customer’s digital documents created by Customer using the ClearGov Apps. 1.8) “Customer Data” means any data provided to ClearGov by or on behalf of Customer or any data entered or uploaded into the ClearGov Service by or on behalf of Customer, including Sensitive Data entered or provided by Customer.
Customer Data specifically excludes ClearGov Data as well as any anonymized, customized, modified or derivative works related to the Customer Data. 1.9) “Customer State” means the state, commonwealth or territory in which the Customer is located. 1.10) “Customer Web Site” means any Web site owned and operated by Customer. 1.11) "Documentation" means any accompanying proprietary documentation made available to Customer by ClearGov for use with the ClearGov Service, including any documentation available online or otherwise. 1.12) “Sensitive Data: means any Customer Data that may reasonably be deemed sensitive and/or private in nature, including but not limited to personal wage garnishments, individual healthcare-related expenses, data protected by HIPAA, etc. 1.13) "Software" means the source code and/or other code which are material elements of the ClearGov Apps and ClearGov Service. 2) Service Usage & Licenses. 2.1) Account Password and Security. Customer shall protect its passwords and take full responsibility for Customer's own, as well as any third-party, use of the Customer Account(s). Customer is solely responsible for any and all activities that occur under such Customer Account(s), except for any activities performed by ClearGov as set forth herein. Customer agrees to notify ClearGov immediately upon learning of any unauthorized use of a Customer Account or any other breach of security. From time to time, ClearGov's support staff may log in to the Customer Account in order to maintain or improve service, including providing Customer assistance with technical or billing issues. Customer hereby acknowledges and consents to such access. 2.2) ClearGov License. Subject to the terms and conditions of this Agreement and as specifically set forth in the applicable ClearGov Service Order(s), ClearGov grants Customer a limited, revocable, non-exclusive, non-transferable, non-distributable, worldwide license to utilize the ClearGov Service for the following functionality: a) Content Delivery. Customer may integrate, link and publish applicable public-facing content from the applicable ClearGov Apps within one or more Customer Web Site(s); b) Application Access. Customer may access the ClearGov Apps via Customer’s Account to utilize the functionality provided within such ClearGov Apps; and c) API Access. Customer may access the ClearGov API to distribute and display public-facing content from the ClearGov Apps within one or more Customer Web Site(s). 3) Term and Termination. 3.1) Term. The duration of this Agreement shall be defined in accordance with the Term set forth in all applicable Service Order(s). The Term shall commence upon the Start Date set forth in the first ClearGov Service Order executed between the Parties and shall continue in full force and effect until the termination or expiration of all applicable ClearGov Service Order(s) (the “Term”). 3.2) Termination. This Agreement and/or any applicable ClearGov Service Order may be terminated prior to the expiration of the term as follows: a) Either Party may terminate this Agreement if the other Party fails to cure a material breach of the Agreement within thirty (30) days after receipt of written notice 558
ClearGov, Inc. Service Agreement ver. 02.02.23 Page 2 of 4 thereof. b) Either Party may terminate this Agreement if the other Party is involved in insolvency proceedings, receivership, bankruptcy, or assignment for the benefit of creditors. 3.3) Obligations. Upon expiration or termination of this Agreement: a) Each Party shall promptly return to the other all of the Confidential Information of the other Party in its possession or control; b) Customer shall cease use of the ClearGov Service and shall remove all links from the Customer Web Site(s) to any content provided by the ClearGov Apps, provided that Customer may continue to provide access to any Customer PDF(s). Customer shall be solely responsible for hosting and delivering such Customer PDF(s) as well as any ongoing costs for doing so; and c) Any outstanding fees shall become immediately due and payable, and termination of this Agreement shall not relieve Customer from its obligation to pay to ClearGov any such fees. 3.4) Survival. Sections 3.3, 3.4 and 4 through 8 inclusive shall survive any termination or expiration of this Agreement. 4) Fees and Billing. 4.1) Fees. Customer shall pay the Fees in accordance with the terms set forth in the applicable ClearGov Service Order. 4.2) Interest and Collections. Customer will be charged $50 for payments by checks that are returned due to insufficient funds. Any late payments will accrue interest equal to one and one-half percent (1.5%) per month, or the maximum amount allowable under law, whichever is less, compounded monthly. ClearGov shall be entitled to recover all reasonable costs of collection (including agency fees, attorneys’ fees, in-house counsel costs, expenses and costs) incurred in attempting to collect payment from Customer. 4.3) Taxes. Customer is solely responsible for all applicable sales, use and other taxes and similar charges based on or arising from this Agreement or any ClearGov Service Order. In the event that Customer is exempt from sales tax, Customer will provide ClearGov with a tax-exempt certificate upon request. 5) Intellectual Property. 5.1) General. Both Parties may only use the other Party’s intellectual property as expressly set forth herein. Nothing in this Agreement shall be construed in any manner to affect or modify either Party’s ownership rights in any preexisting or future works, trademarks, copyrights or technologies developed or created by either Party, including without limitation, their respective proprietary software used in connection with the development and provision of their respective Web sites, databases, systems, products and/or services. Unless specifically agreed by the Parties in writing, all intellectual property, including without limitation information that could become the subject of a patent, copyright or trade secret, developed by a Party in the context of performing its obligations under this Agreement shall be exclusively owned by that Party and the other Party shall cooperate with any reasonable requests to execute documents confirming such ownership. 5.2) Data Ownership and License. a) Customer represents and warrants that it has obtained all data subjects’ consent or otherwise has the full legal right necessary to provide the Customer Data to ClearGov for ClearGov’s use as contemplated by this Agreement. Customer acknowledges that ClearGov shall have no legal liability for its use and/or the display of the Customer Data as contemplated by this Agreement. b) Customer represents and warrants that Customer shall not provide or enter Sensitive Data to be displayed in any publicly available element of the ClearGov Service. To the extent that Customer enters or uploads any Sensitive Data into the ClearGov Service, Customer shall assume full responsibility for the disclosure of such Sensitive Data. ClearGov is under no obligation to review and/or verify whether or not Customer Data includes Sensitive Data. c) Customer Data shall remain the property of Customer, and Customer hereby grants ClearGov a limited, perpetual, irrevocable and royalty-free right to use, copy, modify, and display the Customer Data within any ClearGov App(s) and for the purpose of providing the ClearGov Service. 5.3) Proprietary Rights Notice. The ClearGov Service and all intellectual property rights in the ClearGov Service are, and shall remain, the property of ClearGov. All rights in and to the ClearGov Service not expressly granted to Customer in this Agreement are hereby expressly reserved and retained by ClearGov without restriction, including, without limitation, ClearGov's right to sole ownership of the ClearGov API, ClearGov Apps, ClearGov Data, ClearGov Web Site, Documentation and Software. Without limiting the generality of the foregoing, Customer agrees not to (and to not allow any third party to): (a) sublicense, copy, distribute, rent, lease, lend or use the ClearGov Service outside of the scope of the license granted herein or make the ClearGov Service available to any third party or use the ClearGov Service on a service bureau time sharing basis; (b) copy, modify, adapt, translate, prepare derivative works from, reverse engineer, disassemble, or decompile the ClearGov Service or otherwise attempt to discover or reconstruct any source code, underlying ideas, algorithms, file formats, program interfaces or other trade secrets related to the ClearGov Service; (c) use the trademarks, trade names, service marks, logos, domain names and other distinctive brand features or any copyright or other proprietary rights associated with the ClearGov Service for any purpose without the express written consent of ClearGov; (d) register, attempt to register, or assist anyone else to register any trademark, trade name, service marks, logos, domain names and other distinctive brand features, copyrights or other proprietary rights associated with ClearGov other than in the name of ClearGov; or (e) modify, remove, obscure, or alter any notice of copyright, trademark, or other proprietary right or legend appearing in or on any item included with the ClearGov Service. If the use of the ClearGov Service is being purchased by or on behalf of the U.S. Government or by a U.S. Government prime contractor or subcontractor (at any tier), in accordance with 48 C.F.R. 227.7202-4 (for Department of Defense (DOD) acquisitions) and 48 C.F.R. 2.101 and 12.212 (for non-DOD acquisitions), the Government's rights in the ClearGov Service, including its rights to use, modify, reproduce, release, perform, display or disclose any elements of the ClearGov Service, will be subject in all respects to the commercial license rights and restrictions provided in this Agreement. 6) Representations, Warranties, Indemnification and Liability. 6.1) By ClearGov. ClearGov represents and warrants that: (i) the ClearGov Service shall be provided in accordance with, and shall not violate applicable laws, rules or regulations; and (ii) by using the ClearGov Service, Customer will not violate or in any way infringe upon the personal or proprietary rights of any third party, (iii) to ClearGov’s knowledge, the ClearGov Service does not contain any virus, worm, Trojan horse, time bomb or similar contaminating or destructive feature; and (iv) 559
ClearGov, Inc. Service Agreement ver. 02.02.23 Page 3 of 4 ClearGov holds all necessary rights to permit the use of the ClearGov Service and all components thereof provided to Customer under this Agreement. 6.2) By Customer. Customer represents and warrants that: (i) it has all right, title, and interest in and to the Customer Data necessary for its use in connection with the ClearGov Service; and (ii) it shall not use the ClearGov Service in a manner or in connection with any activity that would violate this Agreement or any law, rule or regulation or rights of any third party. 6.3) By Both. ClearGov and Customer both represent and warrant that (i) each has full power and authority to enter into and perform its obligations under this Agreement; (ii) this Agreement is a legal, valid and binding obligation, enforceable against each Party in accordance with its terms; and (iii) entering into this Agreement will not knowingly violate the Agreement or any laws, regulations or third-party contracts. 6.4) Indemnification by ClearGov. At ClearGov’s cost, ClearGov agrees to indemnify, hold harmless and defend Customer against any cost, loss or expense (including attorney’s fees) resulting from any claims by third parties for loss, damage or injury (each, a “Claim”) arising out of or relating to (i) ClearGov’s breach of any term, condition, representation or warranty of this Agreement, (ii) ClearGov’s violation of any third party rights in connection with the ClearGov Service or (iii) ClearGov’s violations of applicable laws, rules or regulations in connection with the ClearGov Service. In such a case, Customer will provide ClearGov with written notice of such Claim. Customer shall cooperate as fully as reasonably required in the defense of any Claim. Customer reserves the right, at its own expense, to assume the exclusive defense and control of any matter subject to indemnification by ClearGov. Notwithstanding the foregoing, unless the settlement involves no cost, loss or continuing liability to Customer, ClearGov shall not settle any Claim, without the written consent of Customer, such consent not to be unreasonably withheld. 6.5) Limited Warranty. ClearGov warrants that the ClearGov Service will be delivered in a professional and workmanlike manner substantially in accordance with the statement of work set forth in the applicable ClearGov Service Order and that the ClearGov Service will operate in all material respects as described in its product descriptions and/or documentation. EXCEPT FOR THE EXPRESS WARRANTIES STATED IN THIS AGREEMENT, INCLUDING ANY APPLICABLE CLEARGOV SERVICE ORDER, CLEARGOV MAKES NO ADDITIONAL WARRANTY, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT, GUARANTEES, REPRESENTATIONS, PROMISES, STATEMENTS, ESTIMATES, CONDITIONS, OR OTHER INDUCEMENTS. 6.6) Limitation of Liability. NEITHER CLEARGOV NOR CUSTOMER WILL BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING, WITHOUT LIMITATION, LOST PROFITS), OR INCIDENTAL DAMAGES, WHETHER BASED ON A CLAIM OR ACTION OF CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY, OR OTHER TORT, BREACH OF ANY STATUTORY DUTY, INDEMNITY OR CONTRIBUTION, OR OTHERWISE, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE EXCLUSION CONTAINED IN THIS PARAGRAPH SHALL APPLY REGARDLESS OF THE FAILURE OF THE EXCLUSIVE REMEDY PROVIDED IN THE FOLLOWING SENTENCE. BOTH PARTIES’ TOTAL CUMULATIVE LIABILITY TO THE OTHER PARTY FOR ANY LOSS OR DAMAGES RESULTING FROM ANY CLAIMS, DEMANDS OR ACTIONS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL NOT EXCEED THE CUMULATIVE FEES PAID BY CUSTOMER TO CLEARGOV IN THE PRECEDING TWELVE (12) MONTHS. THE FOREGOING SHALL NOT LIMIT A PARTY'S (A) PAYMENT OBLIGATIONS UNDER THE AGREEMENT; (B) LIABILITY FOR INDEMNIFICATION OBLIGATIONS UNDER SECTION 6.4; (C) LIABILITY FOR ANY BREACH OF ITS CONFIDENTIALITY OBLIGATIONS UNDER SECTION 7; (D) LIABILITY FOR ANY BREACH OF ITS REPRESENTATIONS, WARRANTIES, OR OBLIGATIONS UNDER SECTION 5.2; OR (E) LIABILITY FOR ITS INFRINGEMENT OR MISAPPROPRIATION OF ANY PROPRIETARY RIGHTS OF THE OTHER PARTY. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS EXCLUDING OR LIMITING A PARTY’S LIABILITY FOR FRAUD OR ITS LIABILITY FOR DEATH OR PERSONAL INJURY ARISING FROM ITS NEGLIGENCE. 6.7) Essential Element. The provisions of this Section 6 are an essential element of the benefit of the consideration reflected in this Agreement. 7) Confidentiality. 7.1) Subject to any applicable open public records laws in the Customer State, each Party will keep the specific terms of this Agreement confidential, including the contents of the schedules and exhibits, and not disclose any portion of them to any third party (other than to its attorneys, accountants, advisors and potential investors who are bound to keep such information confidential) without the other Party’s prior written consent, except as required by law, including but not limited to open public record laws. 7.2) In addition, in connection with the negotiation and performance of this Agreement, a Party (the “Receiving Party”) may receive information from the other Party (the “Disclosing Party”) which is confidential or proprietary in nature, including without limitation information about a Party’s products, systems and services (“Confidential Information”). The Receiving Party agrees that, during the term of this Agreement and for a period of three (3) years thereafter, it will keep the Confidential Information in strictest confidence and protect such Confidential Information by similar security measures as it takes to protect its own Confidential Information of a similar nature, but in no event shall the Receiving Party take less than reasonable care with the Confidential Information of the Disclosing Party. The Receiving Party also agrees that it will not use any Confidential Information for any purpose other than in connection with the performance of its obligations under this Agreement. 7.3) The term “Confidential Information” shall not include information which A) is or becomes generally available to the public without breach of this Agreement, B) is in the possession of the Receiving Party prior to its disclosure by the Disclosing Party, C) becomes available from a third party not in breach of any obligations of confidentiality, D) is independently developed by the Receiving Party, or E) is required to be disclosed by the Receiving Party pursuant to law, rule, regulation, subpoena or court order, including but not limited to open public record laws. 7.4) The Parties recognize that the disclosure or use of a Disclosing Party’s Confidential Information by the Receiving Party in violation of the provisions of this Section 7 may cause irreparable injury to the Disclosing Party; therefore, in the event either Party breaches the provisions of this Section 7, the other Party, in addition to any other remedies it may have, shall be entitled to seek preliminary and permanent 560
ClearGov, Inc. Service Agreement ver. 02.02.23 Page 4 of 4 injunctive relief without the necessity of posting a bond. 8) Miscellaneous. 8.1) General. If any provision of this Agreement is held to be unenforceable for any reason, such provision shall be reformed to the extent necessary to make it enforceable to the maximum extent permissible so as to implement the intent of the Parties, and the remainder of this Agreement shall continue in full force and effect. A waiver of any default is not a waiver of any subsequent default. The relationship between ClearGov and Customer is one of independent contractors, not partnership, joint venture or agency. This Agreement shall be binding upon and inure to the benefit of the respective successors and permitted assigns of the Parties hereto. The United Nations Convention on Contracts for the International Sale of Goods and the Uniform Computer Information Transactions Act shall not apply to this Agreement. The Software is controlled by U.S. Export Regulations, and it may not be exported to or used by embargoed countries or individuals. 8.2) Entire Agreement. This Agreement and the accompanying ClearGov Service Order(s), together, constitute a valid and binding agreement between the Parties and are intended to be the Parties’ complete, integrated expression of the terms of their agreement with respect to the ClearGov Service, and any prior agreements or understandings with respect to such subject matter are superseded hereby and fully merged herein. 8.3) Assignment. Neither Party will assign this Agreement in whole or in part to any third party without the prior written consent of the other Party; provided, however, either Party may assign this Agreement without such consent to any subsidiary or parent company of such Party or to any successor by way of any merger, consolidation or other corporate reorganization of such Party or sale of all or substantially all of the assets of such Party or to an entity that assumes, by sale, license or otherwise, the business activities that are the subject of this Agreement, provided that such subsidiary or parent company or successor assumes or is otherwise fully bound by all of the obligations of the assigning Party under this Agreement. 8.4) Marketing Materials. Customer agrees that ClearGov may utilize Customer’s name solely to identify it as a ClearGov Customer on the ClearGov Web site, in client lists and other marketing materials. Any other uses of Customer’s name and/or logo (other than as included in the content and/or other items furnished to ClearGov by Customer) shall require Customer’s prior written consent. 8.5) Insurance. ClearGov shall maintain commercial general liability insurance, cybersecurity insurance, product liability insurance and auto liability insurance in amounts that are consistent with industry standards. ClearGov shall maintain Worker’s Compensation insurance as required by law. 8.6) No Boycott of Israel. ClearGov hereby certifies that ClearGov is not currently engaged in and shall not, for the duration of the Term of this Agreement, engage in a boycott of goods or services from the State of Israel; companies doing business in or with the State of Israel or authorized by, licensed by or organized under the laws of the State of Israel; or persons or entities doing business in the State of Israel. 8.7) Jurisdiction. This Agreement shall be governed by the applicable laws in the Customer State, without regard to conflict of laws rules. Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined exclusively by arbitration in the Customer State before a panel of three arbitrators. Such arbitration shall be administered by JAMS pursuant to JAMS’ Streamlined Arbitration Rules and Procedures. Judgment on an award, if any, may be entered in any court having jurisdiction. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. The Parties acknowledge that this Agreement evidences a transaction involving interstate commerce. Notwithstanding the provision with respect to applicable substantive law, any arbitration conducted pursuant to the terms of this Agreement shall be governed by the Federal Arbitration Act (9 U.S.C., Secs. 1-16). 8.8) Force Majeure. If the performance of this Agreement or any obligations hereunder is prevented or interfered with by reason of fire or other casualty or accident, strikes or labor disputes, war or other violence, any law, proclamation, regulation, or requirement of any government agency, or any other act or condition beyond the reasonable control of a Party hereto, that Party upon giving prompt notice to the other Party shall be excused from such performance during such occurrence. 8.9) Notices. All notices, requests, or other communications between the Parties that are required or permitted hereunder will be in writing and will be given by: (a) delivery in person or by prepaid courier service with a nationally recognized courier company, (b) delivery by registered or certified mail, postage prepaid, return receipt requested, (c) by confirmed fax, or (d) email to the address and/or fax number set forth in the applicable ClearGov Service Order. A Party may change the street or email address or fax number to which notice is to be sent by giving written notice of such change. Notices will be deemed given when received as evidenced by verification from the courier company, the mail or confirmation of email receipt or fax confirmation. 8.10) Titles & Subtitles. The titles and subtitles in this Agreement are used for convenience only and are not to be considered in construing it. 561
Service Order
2 Mill & Main; Suite 630; Maynard, MA 01754
Created by Order Date
Contact Phone Order valid if signed byContact Email
Customer Contact Billing Contact
Address Title Title
City, St, Zip Email Email
Phone PO # (If any)
Set up Services Tier/Rate Service Fees
Subscription Services Tier Service Fees
Billing Terms and Conditions
Valid Until
Payment
Initial Period
Rate Increase
Rate Increase
Michael Lanza Feb 26, 2025
(617) 816-7726
[email protected]
City of Murrieta Jennifer Terry Accounts Payable
1 Town Square Finance Manager Accounts Payable
Murrieta, CA 92562 [email protected] [email protected] (951) 304-2489
ClearGov Setup: Includes activation, onboarding and training for ClearGov solutions Tier 4 $ 9,000.00 ClearGov Setup: Bundle Discount - Discount for bundled solutions Tier 4 $ (1,800.00) ClearGov Capital Budgeting - Civic Edition Tier 4 $ 18,300.00 ClearGov Transparency - Civic Edition Tier 4 $ 14,100.00 ClearGov Bundle Discount: Discount for bundled solutions Tier 4 $ (6,480.00) Pricing set forth herein is valid only if ClearGov Service Order is executed on or before this date.
All invoices are due Net 30 days from the date of invoice. 3% per
annum During the Initial Service Period, the Annual Subscription Service Fee shall automatically increase by this amount. 6% per
annum After the Initial Service Period, the Annual Subscription Service Fee shall automatically increase by this amount.
Aug 29, 2025
Customer Information
The Services you will receive and the Fees for those Services are...
ClearGov will provide your Services according to this schedule...
To be clear, you will be billed as follows...
General Terms & Conditions
Total ClearGov Setup Service Fee - Billed ONE-TIME $ 7,200.00 Total ClearGov Subscription Service Fee - Billed ANNUALLY IN ADVANCE $ 25,920.00 Aug 29, 2025
Net 30
Period Start Date End Date Description
Setup
Pro-Rata
Initial
Billing Date(s) Amount(s) Notes
Sep 1, 2025 Sep 1, 2025 ClearGov Setup Services
Sep 1, 2025 Jun 30, 2026 ClearGov Subscription Services Jul 1, 2026 Jun 30, 2029 ClearGov Subscription Services Sep 1, 2025 $ 7,200.00
Sep 1, 2025 $ 21,600.00
Jul 1, 2026 $ 25,920.00
One Time Setup Fee
10 Month Pro-Rata Subscription Fee
Annual Subscription Fee
Additional subscription years and/or renewals will be billed annually in accordance with pricing and terms set forth herein.
562
Statement of Work
Taxes
Term & Termination
Auto-Renewal
Agreement
Signature Signature
Name Name
Title Title
This Service Order is a Customer
Upgrade If Yes: Original Service Order Date
ClearGov and Customer mutually agree to the ClearGov Service activation and onboarding process set forth in the attached Statement of Work. Please note that ClearGov will not activate and/or implement services for any Customer with outstanding balance past due over 90 days for any previous subscription services.
The Service Fees and Billing amounts set forth above in this ClearGov Service Order include applicable taxes. In accordance with the laws of the applicable state, in the event that sales, use or other taxes apply to this transaction, ClearGov shall include such taxes on applicable invoices and Customer is solely responsible for such taxes, unless documentation is provided to ClearGov demonstrating Customer's exemption from such taxes.
Subject to the termination rights and obligations set forth in the ClearGov BCM Service Agreement, this ClearGov Service Order commences upon the Order Date set forth herein and shall continue until the completion of the Service Period(s) for the Service(s) set forth herein. Each Service shall commence upon the Start Date set forth herein and shall continue until the completion of the applicable Service Period. To be clear, Customer shall have the option to Terminate this Service Order on an annual basis by providing notice at least sixty (60) days prior to the end of the then current Annual Term.
After the Initial Period, the Service Period for any ClearGov Annual Subscription Services may renew for successive annual periods (each an “Annual Term”), upon the written agreement of both parties prior to the end of the then current Annual Term.
The signature below affirms your commitment to pay for the Service(s) ordered in accordance with the terms set forth in this ClearGov Service Order and also acknowledges that you have read and agree to the terms and conditions set forth in the attached BCM Service Agreement. This Service Order incorporates by reference the terms of such BCM Service Agreement. In event of any conflict between the terms set forth in this ClearGov Service Order and any terms or conditions set forth in the ClearGov BCM Service Agreement, the terms of this ClearGov Service Order shall prevail.
Justin Clifton Bryan A. Burdick
City Manager President
Yes 6/23/22
DO NOT
Customer ClearGov, Inc.
Customer Upgrades (ClearGov internal use only)
Please e-mail signed Service Order to [email protected] or Fax to (774) 759-3045
563
Statement of Work
This Statement of Work outlines the roles and responsibilities by both ClearGov and Customer required for the activation and onboarding of the ClearGov Service. ClearGov will begin this onboarding process upon execution of this Service Order. All onboarding services and communications will be provided through remote methods - email, phone, and web conferencing. - ClearGov will activate ClearGov Service subscription(s) as of the applicable Start Date(s). ClearGov will create the initial Admin User account, and the Customer Admin User will be responsible for creating additional User accounts. - ClearGov will assign an Implementation Manager (IM) responsible for managing the activation and onboarding process. ClearGov IM will coordinate with other ClearGov resources, as necessary.
- ClearGov IM will provide a Kickoff Call scheduling link to the Customer’s Primary Contact. Customer should schedule Kickoff Call within two weeks after the Service Order has been executed.
- If Customer is subscribing to any products that require data onboarding:
- ClearGov IM will provide a Data Discovery Call scheduling link to the Customer’s Primary Contact. Customer should schedule Data Discovery Call based on the availability of Customer’s staff.
- ClearGov will provide Customer with financial data requirements and instructions, based on the ClearGov Service subscription(s). - ClearGov will review financial data files and confirm that data is complete, or request additional information, if necessary. Once complete financial data files have been received, ClearGov will format the data, upload it to the ClearGov platform and complete an initial mapping of the data. - After initial mapping, ClearGov will schedule a Data Review call with a ClearGov Data Onboarding Consultant (DOC), who will present how the data was mapped, ask for feedback, and address open questions. Depending upon Customer feedback and the complexity of data mapping requests, there may be additional follow-up calls or emails required to complete the data onboarding process. - ClearGov will inform Customer of all training, learning, and support options. ClearGov recommends all Users attend ClearGov Academy training sessions and/or read Support Center articles before using the ClearGov Service to ensure a quick ramp and success. As needed, ClearGov will design and deliver customized remote training and configuration workshops for Admins and one for End Users - via video conference - and these sessions will be recorded for future reference.
- ClearGov will make commercially reasonable efforts to complete the onboarding/activation process in a timely fashion, provided Customer submits financial data files and responds to review and approval requests by ClearGov in a similarly timely fashion. Any delay by Customer in meeting these deliverable requirements may result in a delayed data onboarding process. Any such delay shall not affect or change the Service Period(s) as set forth in the applicable Service Order.
- Customer's Primary Contact will coordinate the necessary personnel to attend the Kickoff and Data Discovery Calls within two weeks after the Service Order has been executed. If Customer needs to change the date/time of either of these calls, the Primary Contact will notify the ClearGov IM at least one business day in advance.
- If Customer is subscribing to any products that require data onboarding:
- Customer will provide a complete set of requested financial data files (revenue, expense, chart of accounts, etc.) to ClearGov in accordance with the requirements provided by ClearGov.
- Customer's Primary Contact will coordinate the necessary personnel to attend the Data Discovery and Data Review calls. It is recommended that all stakeholders with input on how data should be mapped should attend. Based on these calls and any subsequent internal review, Customer shall provide a detailed list of data mapping requirements and requested changes to data mapping drafts in a timely manner, and Customer will approve the final data mapping, once completed to Customer’s satisfaction. - Customer will complete recommended on-demand training modules in advance of customized training & configuration workshops. - Customer shall be solely responsible for importing and/or inputting applicable text narrative, custom graphics, performance metrics, capital requests, personnel data, and other such information for capital budget, personnel budget, budget books, projects, dashboards, etc.
ClearGov Responsibilities
Customer Responsibilities
564
ClearGov BCM Service Agreement
ClearGov, Inc. Service Agreement ver. 02.02.23 Page 1 of 4 This ClearGov BCM Service Agreement (the “Agreement”) is made and entered into by and between ClearGov, Inc. (“ClearGov”), a Delaware corporation with its principal offices at 2 Mill & Main; Suite 630, Maynard, MA 01754 and Customer (as defined in the applicable ClearGov Service Order) (each a “Party” and collectively the “Parties”). This Agreement governs the terms and conditions under which Customer may utilize the ClearGov Service as set forth herein and as specified in one or more applicable ClearGov Service Order(s) executed by Customer in connection herewith and incorporated herein (the “ClearGov Service Order(s)”). In event of any conflict between the terms set forth in this Agreement and any terms or conditions of any applicable ClearGov Service Order, the terms of the applicable ClearGov Service Order shall prevail. WHEREAS ClearGov owns and operates the ClearGov Service, a Web-based SaaS solution that includes a variety of ClearGov App(s) and provides various features and functionality via such ClearGov App(s); and WHEREAS Customer wishes to utilize the ClearGov Service in order to convey fiscal budget, key metrics and other information to the public as well as to leverage the functionality of such ClearGov App(s); NOW THEREFORE, in consideration of the mutual covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, ClearGov and Customer hereby agree as follows: 1) Definitions. Capitalized terms used in this Agreement, and not otherwise defined herein, shall have the following meanings: 1.1) "Account" means an access point for the ClearGov Service that requires registration by the Customer. 1.2) “ClearGov API” means an application programming interface that provides access to specified content and functionality within certain ClearGov Apps. 1.3) “ClearGov Apps” means collectively all of the Web applications hosted by ClearGov and available via the ClearGov Service, including but not limited to the applications listed in any applicable ClearGov Service Order. All features, functionality, reports, etc. for each ClearGov App are included as material elements of the applicable ClearGov App. ClearGov may modify, combine, add or delete ClearGov Apps from the ClearGov Service from time to time at its sole discretion, provided that in the event that ClearGov terminates or deletes any ClearGov App to which Customer is actively subscribing, ClearGov shall provide a pro-rata refund for the applicable portion of the Subscription Service Fee for the remainder of the then current Service Period. 1.4) “ClearGov Data” means any aggregated and normalized key metrics and benchmarking data collected by ClearGov for the delivery of the ClearGov Service. 1.5) “ClearGov Service” means the complete set of ClearGov software and related materials including but not limited to the ClearGov Apps, ClearGov Data, ClearGov Web Site, the Documentation and the Software. 1.6) “ClearGov Web Site” means the Web site owned and operated by ClearGov and made available at the following URL: http://www.ClearGov.com and/or any successor site(s). 1.7) “Customer PDF” means one or more PDF files of Customer’s digital documents created by Customer using the ClearGov Apps. 1.8) “Customer Data” means any data provided to ClearGov by or on behalf of Customer or any data entered or uploaded into the ClearGov Service by or on behalf of Customer, including Sensitive Data entered or provided by Customer.
Customer Data specifically excludes ClearGov Data as well as any anonymized, customized, modified or derivative works related to the Customer Data. 1.9) “Customer State” means the state, commonwealth or territory in which the Customer is located. 1.10) “Customer Web Site” means any Web site owned and operated by Customer. 1.11) "Documentation" means any accompanying proprietary documentation made available to Customer by ClearGov for use with the ClearGov Service, including any documentation available online or otherwise. 1.12) “Sensitive Data: means any Customer Data that may reasonably be deemed sensitive and/or private in nature, including but not limited to personal wage garnishments, individual healthcare-related expenses, data protected by HIPAA, etc. 1.13) "Software" means the source code and/or other code which are material elements of the ClearGov Apps and ClearGov Service. 2) Service Usage & Licenses. 2.1) Account Password and Security. Customer shall protect its passwords and take full responsibility for Customer's own, as well as any third-party, use of the Customer Account(s). Customer is solely responsible for any and all activities that occur under such Customer Account(s), except for any activities performed by ClearGov as set forth herein. Customer agrees to notify ClearGov immediately upon learning of any unauthorized use of a Customer Account or any other breach of security. From time to time, ClearGov's support staff may log in to the Customer Account in order to maintain or improve service, including providing Customer assistance with technical or billing issues. Customer hereby acknowledges and consents to such access. 2.2) ClearGov License. Subject to the terms and conditions of this Agreement and as specifically set forth in the applicable ClearGov Service Order(s), ClearGov grants Customer a limited, revocable, non-exclusive, non-transferable, non-distributable, worldwide license to utilize the ClearGov Service for the following functionality: a) Content Delivery. Customer may integrate, link and publish applicable public-facing content from the applicable ClearGov Apps within one or more Customer Web Site(s); b) Application Access. Customer may access the ClearGov Apps via Customer’s Account to utilize the functionality provided within such ClearGov Apps; and c) API Access. Customer may access the ClearGov API to distribute and display public-facing content from the ClearGov Apps within one or more Customer Web Site(s). 3) Term and Termination. 3.1) Term. The duration of this Agreement shall be defined in accordance with the Term set forth in all applicable Service Order(s). The Term shall commence upon the Start Date set forth in the first ClearGov Service Order executed between the Parties and shall continue in full force and effect until the termination or expiration of all applicable ClearGov Service Order(s) (the “Term”). 3.2) Termination. This Agreement and/or any applicable ClearGov Service Order may be terminated prior to the expiration of the term as follows: a) Either Party may terminate this Agreement if the other Party fails to cure a material breach of the Agreement within thirty (30) days after receipt of written notice 565
ClearGov, Inc. Service Agreement ver. 02.02.23 Page 2 of 4 thereof. b) Either Party may terminate this Agreement if the other Party is involved in insolvency proceedings, receivership, bankruptcy, or assignment for the benefit of creditors. 3.3) Obligations. Upon expiration or termination of this Agreement: a) Each Party shall promptly return to the other all of the Confidential Information of the other Party in its possession or control; b) Customer shall cease use of the ClearGov Service and shall remove all links from the Customer Web Site(s) to any content provided by the ClearGov Apps, provided that Customer may continue to provide access to any Customer PDF(s). Customer shall be solely responsible for hosting and delivering such Customer PDF(s) as well as any ongoing costs for doing so; and c) Any outstanding fees shall become immediately due and payable, and termination of this Agreement shall not relieve Customer from its obligation to pay to ClearGov any such fees. 3.4) Survival. Sections 3.3, 3.4 and 4 through 8 inclusive shall survive any termination or expiration of this Agreement. 4) Fees and Billing. 4.1) Fees. Customer shall pay the Fees in accordance with the terms set forth in the applicable ClearGov Service Order. 4.2) Interest and Collections. Customer will be charged $50 for payments by checks that are returned due to insufficient funds. Any late payments will accrue interest equal to one and one-half percent (1.5%) per month, or the maximum amount allowable under law, whichever is less, compounded monthly. ClearGov shall be entitled to recover all reasonable costs of collection (including agency fees, attorneys’ fees, in-house counsel costs, expenses and costs) incurred in attempting to collect payment from Customer. 4.3) Taxes. Customer is solely responsible for all applicable sales, use and other taxes and similar charges based on or arising from this Agreement or any ClearGov Service Order. In the event that Customer is exempt from sales tax, Customer will provide ClearGov with a tax-exempt certificate upon request. 5) Intellectual Property. 5.1) General. Both Parties may only use the other Party’s intellectual property as expressly set forth herein. Nothing in this Agreement shall be construed in any manner to affect or modify either Party’s ownership rights in any preexisting or future works, trademarks, copyrights or technologies developed or created by either Party, including without limitation, their respective proprietary software used in connection with the development and provision of their respective Web sites, databases, systems, products and/or services. Unless specifically agreed by the Parties in writing, all intellectual property, including without limitation information that could become the subject of a patent, copyright or trade secret, developed by a Party in the context of performing its obligations under this Agreement shall be exclusively owned by that Party and the other Party shall cooperate with any reasonable requests to execute documents confirming such ownership. 5.2) Data Ownership and License. a) Customer represents and warrants that it has obtained all data subjects’ consent or otherwise has the full legal right necessary to provide the Customer Data to ClearGov for ClearGov’s use as contemplated by this Agreement. Customer acknowledges that ClearGov shall have no legal liability for its use and/or the display of the Customer Data as contemplated by this Agreement. b) Customer represents and warrants that Customer shall not provide or enter Sensitive Data to be displayed in any publicly available element of the ClearGov Service. To the extent that Customer enters or uploads any Sensitive Data into the ClearGov Service, Customer shall assume full responsibility for the disclosure of such Sensitive Data. ClearGov is under no obligation to review and/or verify whether or not Customer Data includes Sensitive Data. c) Customer Data shall remain the property of Customer, and Customer hereby grants ClearGov a limited, perpetual, irrevocable and royalty-free right to use, copy, modify, and display the Customer Data within any ClearGov App(s) and for the purpose of providing the ClearGov Service. 5.3) Proprietary Rights Notice. The ClearGov Service and all intellectual property rights in the ClearGov Service are, and shall remain, the property of ClearGov. All rights in and to the ClearGov Service not expressly granted to Customer in this Agreement are hereby expressly reserved and retained by ClearGov without restriction, including, without limitation, ClearGov's right to sole ownership of the ClearGov API, ClearGov Apps, ClearGov Data, ClearGov Web Site, Documentation and Software. Without limiting the generality of the foregoing, Customer agrees not to (and to not allow any third party to): (a) sublicense, copy, distribute, rent, lease, lend or use the ClearGov Service outside of the scope of the license granted herein or make the ClearGov Service available to any third party or use the ClearGov Service on a service bureau time sharing basis; (b) copy, modify, adapt, translate, prepare derivative works from, reverse engineer, disassemble, or decompile the ClearGov Service or otherwise attempt to discover or reconstruct any source code, underlying ideas, algorithms, file formats, program interfaces or other trade secrets related to the ClearGov Service; (c) use the trademarks, trade names, service marks, logos, domain names and other distinctive brand features or any copyright or other proprietary rights associated with the ClearGov Service for any purpose without the express written consent of ClearGov; (d) register, attempt to register, or assist anyone else to register any trademark, trade name, service marks, logos, domain names and other distinctive brand features, copyrights or other proprietary rights associated with ClearGov other than in the name of ClearGov; or (e) modify, remove, obscure, or alter any notice of copyright, trademark, or other proprietary right or legend appearing in or on any item included with the ClearGov Service. If the use of the ClearGov Service is being purchased by or on behalf of the U.S. Government or by a U.S. Government prime contractor or subcontractor (at any tier), in accordance with 48 C.F.R. 227.7202-4 (for Department of Defense (DOD) acquisitions) and 48 C.F.R. 2.101 and 12.212 (for non-DOD acquisitions), the Government's rights in the ClearGov Service, including its rights to use, modify, reproduce, release, perform, display or disclose any elements of the ClearGov Service, will be subject in all respects to the commercial license rights and restrictions provided in this Agreement. 6) Representations, Warranties, Indemnification and Liability. 6.1) By ClearGov. ClearGov represents and warrants that: (i) the ClearGov Service shall be provided in accordance with, and shall not violate applicable laws, rules or regulations; and (ii) by using the ClearGov Service, Customer will not violate or in any way infringe upon the personal or proprietary rights of any third party, (iii) to ClearGov’s knowledge, the ClearGov Service does not contain any virus, worm, Trojan horse, time bomb or similar contaminating or destructive feature; and (iv) 566
ClearGov, Inc. Service Agreement ver. 02.02.23 Page 3 of 4 ClearGov holds all necessary rights to permit the use of the ClearGov Service and all components thereof provided to Customer under this Agreement. 6.2) By Customer. Customer represents and warrants that: (i) it has all right, title, and interest in and to the Customer Data necessary for its use in connection with the ClearGov Service; and (ii) it shall not use the ClearGov Service in a manner or in connection with any activity that would violate this Agreement or any law, rule or regulation or rights of any third party. 6.3) By Both. ClearGov and Customer both represent and warrant that (i) each has full power and authority to enter into and perform its obligations under this Agreement; (ii) this Agreement is a legal, valid and binding obligation, enforceable against each Party in accordance with its terms; and (iii) entering into this Agreement will not knowingly violate the Agreement or any laws, regulations or third-party contracts. 6.4) Indemnification by ClearGov. At ClearGov’s cost, ClearGov agrees to indemnify, hold harmless and defend Customer against any cost, loss or expense (including attorney’s fees) resulting from any claims by third parties for loss, damage or injury (each, a “Claim”) arising out of or relating to (i) ClearGov’s breach of any term, condition, representation or warranty of this Agreement, (ii) ClearGov’s violation of any third party rights in connection with the ClearGov Service or (iii) ClearGov’s violations of applicable laws, rules or regulations in connection with the ClearGov Service. In such a case, Customer will provide ClearGov with written notice of such Claim. Customer shall cooperate as fully as reasonably required in the defense of any Claim. Customer reserves the right, at its own expense, to assume the exclusive defense and control of any matter subject to indemnification by ClearGov. Notwithstanding the foregoing, unless the settlement involves no cost, loss or continuing liability to Customer, ClearGov shall not settle any Claim, without the written consent of Customer, such consent not to be unreasonably withheld. 6.5) Limited Warranty. ClearGov warrants that the ClearGov Service will be delivered in a professional and workmanlike manner substantially in accordance with the statement of work set forth in the applicable ClearGov Service Order and that the ClearGov Service will operate in all material respects as described in its product descriptions and/or documentation. EXCEPT FOR THE EXPRESS WARRANTIES STATED IN THIS AGREEMENT, INCLUDING ANY APPLICABLE CLEARGOV SERVICE ORDER, CLEARGOV MAKES NO ADDITIONAL WARRANTY, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, INCLUDING WITHOUT LIMITATION ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE OR NON-INFRINGEMENT, GUARANTEES, REPRESENTATIONS, PROMISES, STATEMENTS, ESTIMATES, CONDITIONS, OR OTHER INDUCEMENTS. 6.6) Limitation of Liability. NEITHER CLEARGOV NOR CUSTOMER WILL BE LIABLE TO THE OTHER PARTY FOR ANY INDIRECT, SPECIAL, PUNITIVE, CONSEQUENTIAL (INCLUDING, WITHOUT LIMITATION, LOST PROFITS), OR INCIDENTAL DAMAGES, WHETHER BASED ON A CLAIM OR ACTION OF CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY, OR OTHER TORT, BREACH OF ANY STATUTORY DUTY, INDEMNITY OR CONTRIBUTION, OR OTHERWISE, EVEN IF THE PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. THE EXCLUSION CONTAINED IN THIS PARAGRAPH SHALL APPLY REGARDLESS OF THE FAILURE OF THE EXCLUSIVE REMEDY PROVIDED IN THE FOLLOWING SENTENCE. BOTH PARTIES’ TOTAL CUMULATIVE LIABILITY TO THE OTHER PARTY FOR ANY LOSS OR DAMAGES RESULTING FROM ANY CLAIMS, DEMANDS OR ACTIONS ARISING OUT OF OR RELATING TO THIS AGREEMENT SHALL NOT EXCEED THE CUMULATIVE FEES PAID BY CUSTOMER TO CLEARGOV IN THE PRECEDING TWELVE (12) MONTHS. THE FOREGOING SHALL NOT LIMIT A PARTY'S (A) PAYMENT OBLIGATIONS UNDER THE AGREEMENT; (B) LIABILITY FOR INDEMNIFICATION OBLIGATIONS UNDER SECTION 6.4; (C) LIABILITY FOR ANY BREACH OF ITS CONFIDENTIALITY OBLIGATIONS UNDER SECTION 7; (D) LIABILITY FOR ANY BREACH OF ITS REPRESENTATIONS, WARRANTIES, OR OBLIGATIONS UNDER SECTION 5.2; OR (E) LIABILITY FOR ITS INFRINGEMENT OR MISAPPROPRIATION OF ANY PROPRIETARY RIGHTS OF THE OTHER PARTY. NOTHING IN THIS AGREEMENT SHALL BE CONSTRUED AS EXCLUDING OR LIMITING A PARTY’S LIABILITY FOR FRAUD OR ITS LIABILITY FOR DEATH OR PERSONAL INJURY ARISING FROM ITS NEGLIGENCE. 6.7) Essential Element. The provisions of this Section 6 are an essential element of the benefit of the consideration reflected in this Agreement. 7) Confidentiality. 7.1) Subject to any applicable open public records laws in the Customer State, each Party will keep the specific terms of this Agreement confidential, including the contents of the schedules and exhibits, and not disclose any portion of them to any third party (other than to its attorneys, accountants, advisors and potential investors who are bound to keep such information confidential) without the other Party’s prior written consent, except as required by law, including but not limited to open public record laws. 7.2) In addition, in connection with the negotiation and performance of this Agreement, a Party (the “Receiving Party”) may receive information from the other Party (the “Disclosing Party”) which is confidential or proprietary in nature, including without limitation information about a Party’s products, systems and services (“Confidential Information”). The Receiving Party agrees that, during the term of this Agreement and for a period of three (3) years thereafter, it will keep the Confidential Information in strictest confidence and protect such Confidential Information by similar security measures as it takes to protect its own Confidential Information of a similar nature, but in no event shall the Receiving Party take less than reasonable care with the Confidential Information of the Disclosing Party. The Receiving Party also agrees that it will not use any Confidential Information for any purpose other than in connection with the performance of its obligations under this Agreement. 7.3) The term “Confidential Information” shall not include information which A) is or becomes generally available to the public without breach of this Agreement, B) is in the possession of the Receiving Party prior to its disclosure by the Disclosing Party, C) becomes available from a third party not in breach of any obligations of confidentiality, D) is independently developed by the Receiving Party, or E) is required to be disclosed by the Receiving Party pursuant to law, rule, regulation, subpoena or court order, including but not limited to open public record laws. 7.4) The Parties recognize that the disclosure or use of a Disclosing Party’s Confidential Information by the Receiving Party in violation of the provisions of this Section 7 may cause irreparable injury to the Disclosing Party; therefore, in the event either Party breaches the provisions of this Section 7, the other Party, in addition to any other remedies it may have, shall be entitled to seek preliminary and permanent 567
ClearGov, Inc. Service Agreement ver. 02.02.23 Page 4 of 4 injunctive relief without the necessity of posting a bond. 8) Miscellaneous. 8.1) General. If any provision of this Agreement is held to be unenforceable for any reason, such provision shall be reformed to the extent necessary to make it enforceable to the maximum extent permissible so as to implement the intent of the Parties, and the remainder of this Agreement shall continue in full force and effect. A waiver of any default is not a waiver of any subsequent default. The relationship between ClearGov and Customer is one of independent contractors, not partnership, joint venture or agency. This Agreement shall be binding upon and inure to the benefit of the respective successors and permitted assigns of the Parties hereto. The United Nations Convention on Contracts for the International Sale of Goods and the Uniform Computer Information Transactions Act shall not apply to this Agreement. The Software is controlled by U.S. Export Regulations, and it may not be exported to or used by embargoed countries or individuals. 8.2) Entire Agreement. This Agreement and the accompanying ClearGov Service Order(s), together, constitute a valid and binding agreement between the Parties and are intended to be the Parties’ complete, integrated expression of the terms of their agreement with respect to the ClearGov Service, and any prior agreements or understandings with respect to such subject matter are superseded hereby and fully merged herein. 8.3) Assignment. Neither Party will assign this Agreement in whole or in part to any third party without the prior written consent of the other Party; provided, however, either Party may assign this Agreement without such consent to any subsidiary or parent company of such Party or to any successor by way of any merger, consolidation or other corporate reorganization of such Party or sale of all or substantially all of the assets of such Party or to an entity that assumes, by sale, license or otherwise, the business activities that are the subject of this Agreement, provided that such subsidiary or parent company or successor assumes or is otherwise fully bound by all of the obligations of the assigning Party under this Agreement. 8.4) Marketing Materials. Customer agrees that ClearGov may utilize Customer’s name solely to identify it as a ClearGov Customer on the ClearGov Web site, in client lists and other marketing materials. Any other uses of Customer’s name and/or logo (other than as included in the content and/or other items furnished to ClearGov by Customer) shall require Customer’s prior written consent. 8.5) Insurance. ClearGov shall maintain commercial general liability insurance, cybersecurity insurance, product liability insurance and auto liability insurance in amounts that are consistent with industry standards. ClearGov shall maintain Worker’s Compensation insurance as required by law. 8.6) No Boycott of Israel. ClearGov hereby certifies that ClearGov is not currently engaged in and shall not, for the duration of the Term of this Agreement, engage in a boycott of goods or services from the State of Israel; companies doing business in or with the State of Israel or authorized by, licensed by or organized under the laws of the State of Israel; or persons or entities doing business in the State of Israel. 8.7) Jurisdiction. This Agreement shall be governed by the applicable laws in the Customer State, without regard to conflict of laws rules. Any dispute, claim or controversy arising out of or relating to this Agreement or the breach, termination, enforcement, interpretation or validity thereof, including the determination of the scope or applicability of this agreement to arbitrate, shall be determined exclusively by arbitration in the Customer State before a panel of three arbitrators. Such arbitration shall be administered by JAMS pursuant to JAMS’ Streamlined Arbitration Rules and Procedures. Judgment on an award, if any, may be entered in any court having jurisdiction. This clause shall not preclude parties from seeking provisional remedies in aid of arbitration from a court of appropriate jurisdiction. The Parties acknowledge that this Agreement evidences a transaction involving interstate commerce. Notwithstanding the provision with respect to applicable substantive law, any arbitration conducted pursuant to the terms of this Agreement shall be governed by the Federal Arbitration Act (9 U.S.C., Secs. 1-16). 8.8) Force Majeure. If the performance of this Agreement or any obligations hereunder is prevented or interfered with by reason of fire or other casualty or accident, strikes or labor disputes, war or other violence, any law, proclamation, regulation, or requirement of any government agency, or any other act or condition beyond the reasonable control of a Party hereto, that Party upon giving prompt notice to the other Party shall be excused from such performance during such occurrence. 8.9) Notices. All notices, requests, or other communications between the Parties that are required or permitted hereunder will be in writing and will be given by: (a) delivery in person or by prepaid courier service with a nationally recognized courier company, (b) delivery by registered or certified mail, postage prepaid, return receipt requested, (c) by confirmed fax, or (d) email to the address and/or fax number set forth in the applicable ClearGov Service Order. A Party may change the street or email address or fax number to which notice is to be sent by giving written notice of such change. Notices will be deemed given when received as evidenced by verification from the courier company, the mail or confirmation of email receipt or fax confirmation. 8.10) Titles & Subtitles. The titles and subtitles in this Agreement are used for convenience only and are not to be considered in construing it. 568
CITY OF MURRIETA
City Council Meeting Agenda
Report
8/19/2025
Agenda Item No. 15.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Javier Carcamo, Finance Director
SUBJECT:
Second Reading of Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta
RECOMMENDATION
Conduct the second reading and adopt Ordinance No. 621-25, entitled: An Ordinance of the City Council of the City of Murrieta, California, Acting in its Capacity as the Legislative Body of Community Facilities District No.2025-S (Safety Services) of the City of Murrieta Authorizing the Levy of Special Taxes.
PRIOR ACTION/VOTE
On October 3, 2023, the City Council considered an Amendment to the Community Facilities District Goals and Policies and directed staff to present the recommendations in a workshop (Vote: 3-2).
On December 5, 2023, the City Council held a workshop on Community Facilities District Goals and Policies and adopted Resolution No. 23-4717 (Vote: 5-0).
On May 6, 2025, the City formed Community Facilities District No. 2025-1 (Safety Services), Community Facilities District No. 2025-2 (Maintenance Services), and Community Facilities District No. 2025-3 (Discovery Village) (Vote:5-0).
On June 3, 2025, the City Council adopted a Resolution of Intention (Resolution No. 25-4838) to establish Community Facilities District No. 2025-S (Safety Services) and set a public hearing for the formation of Community Facilities District No. 2025-S (Safety Services) for July 15, 2025 (Vote: 5-0).
On July 15, 2025, the City Council held a public hearing and approved the first reading of the Community Facilities District Ordinance No. 621-25 (CFD No. 2025-S Safety Services) (Vote 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability CITY OF MURRIETA Printed on 8/14/2025Page 1 of 4
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and organizational efficiency.
DISCUSSION
Community Facilities Districts
Community Facility Districts (CFDs) are formed pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Mello-Roos Act”). They are a widely used financing mechanism, frequently used to fund infrastructure associated with new significant (large) development projects, such as water and sewer facilities, storm drain facilities, roads, and parks, and to finance the provision of certain municipal services.
A simplified example of CFD implementation is as follows:
· A developer submits a petition to form the CFD to the City or Special District (water districts frequently form CFDs) to start formation proceedings.
· In the City’s case, staff presents the petition to the City Council for approval. · The district is formed by a vote of the property owners. · Once approved, the city will provide the services outlined in the formation documents. · The special tax will be applied to the property tax bills, which include an annual escalation. · The special tax will continue to be levied as long as the services are provided.
On December 5, 2023, the City Council adopted amendments to the Community Facilities District Goals and Policies. In addition to changes related to state law, other changes contained in the amended policy include:
· A list of eligible facilities that can be financed;
· Adding an escalator of up to two percent (2%) per year for facilities; · Adding an escalator for service or maintenance CFDs to cover increases in the cost of providing services;
· Allowing Development Impact Fees (DIF) to be financed; and · Increasing the maximum cap on the assessed value of a property from 1.8% to 2.0%.
Additional Authorized Services
The Mello-Roos Act also authorizes the City to establish a CFD to finance certain public services through the levy of a special tax. The services that can be funded include the following:
· Police protection services, including, but not limited to, criminal justice (limited to providing services for jails, detention facilities, and juvenile halls). · Fire protection and suppression services, and ambulance and paramedic services. · Recreation program services, library services, maintenance services for elementary and secondary school sites and structures, and the operation and maintenance of museums and cultural facilities
· Maintenance and lighting of parks, parkways, streets, roads, and open spaces. · Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, plowing and removal of snow, and sandstorm protection systems.
· Maintenance and operation of any real property or other tangible property with an estimated useful life of five or more years that is owned by the local agency or by another local agency (by CITY OF MURRIETA Printed on 8/14/2025Page 2 of 4
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useful life of five or more years that is owned by the local agency or by another local agency (by agreement).
Community Facilities District No. 2025-1 (Safety Services) On May 6, 2025, the City Council and the landowner for the Discovery Village project approved the formation of Community Facilities District No. 2025-1 (Safety Services) in order to finance public safety services. CFD No. 2025-1 currently consists only of the property within the Discovery Village development project and designated the remainder of the City as a “Potential Annexation Area,” whereby new development projects meeting certain design criteria will be required by the City to annex to CFD No. 2025-1. However, the Rate and Method of Apportionment of Special Tax for CFD No. 2025-1, as approved by the City Council and the landowner within CFD No. 2025-1 on May 6, 2025, included special tax rates for multi-family residential property and single-family residential property, and the special taxes for each category of property will increase annually each July 1 by four percent (4%), commencing July 1, 2026, but did not include a special tax for affordable housing residential property. When approving the Rate and Method of Apportionment of Special Tax for CFD No. 2025-1, the City Council directed staff to form a new public safety services CFD to apply to future development projects within the City. This new public safety services district will impose a special tax on affordable housing residential property, multi-family residential property, and single-family residential property, which includes an annual escalation of the special tax for each category of property. Therefore, it is not expected that future development projects within the City will be annexed into CFD No. 2025-1.
The Rustic Meadows Project, the Kensington Apartments Project, and Community Facilities District No. 2025-S (Safety Services)
The property owner of the proposed Rustic Meadows development project and the property owner of the proposed Kensington Apartments development project (collectively, the “PropertyOwners”)are required by the City’sCommunity Facilities District Goals and Policies, as amended in December 2023, to either annex to or request the formation of a Public Safety Services CFD. Accordingly, the Property Owners have submitted petitions requesting that the City form a new public safety services CFD, which includes a special tax on affordable housing residential property, multi-family residential property, and single-family residential property, which includes an annual escalation of the special tax for each category of property. The new public safety CFD is expected to be called Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta.
Similar to CFD No. 2025-1, CFD No. 2025-S will initially consist only of two developments, Rustic Meadows and the Kensington Apartments project; however, the remainder of the City will be designated as a “Potential Annexation Area,” and new development projects meeting certain design criteria will be required to annex to CFD No. 2025-S.
CFD No. 2025-S would levy a special tax in accordance with the Mello-Roos Act on parcels of residential property to finance public safety services. Services eligible to be financed by CFD No. 2025-S include police protection services (including but not limited to criminal justice services), fire protection and suppression services, and paramedic services. The special taxes within CFD No. 2025-S are $150 per unit of affordable housing residential property, $468 per unit of multi-family residential property, and $580 per unit of single- family property, and the special taxes for each category of property will increase annually each July 1 by four percent (4%), commencing July 1, 2026.
The Resolution of Intention adopted on June 3, 2025, was the first step in the process of forming CFD No. 2025-S and declared the City’sintention to establish CFD No. 2025-S, calling for a public hearing on the matter of the formation of CFD No. 2025-S that took place on July 15, 2025.
In connection with the public hearing, Spicer Consulting Group prepared a Public Hearing Report, which CITY OF MURRIETA Printed on 8/14/2025Page 3 of 4
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In connection with the public hearing, Spicer Consulting Group prepared a Public Hearing Report, which described and analyzed the services to be financed by CFD No. 2025-S and the estimated costs of such services. Following the close of the public hearing for CFD No. 2025-S, the City Council adopted a Resolution of Formation, which approved the formation of CFD No. 2025-S and the levy of the special taxes in CFD No. 2025-S in accordance with the Rate and Method of Apportionment for CFD No. 2025-S. The Resolution of Formation called for an election to submit to the qualified voters of CFD No. 2025-S ballot measures on the approval of the special taxes and appropriations limits for CFD No. 2025-S.
On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County for CFD No. 2025-S certifying that there are no registered voters residing within the boundaries of CFD No. 2025-S. Accordingly, under the Mello-Roos Act, only property owners owning land are eligible to vote at the election, with each owner having one vote for each acre (or portion thereof) that they own within CFD No. 2025-S. The Property Owners have each executed a consent and waiver of certain election procedures for CFD No. 2025-S with respect to the election, including certain timing requirements with respect to the election, in accordance with the Mello-Roos Act. Accordingly, the City Council approved the Resolution of Formation, and the City Clerk conducted the election. The Property Owners delivered their ballots to the City Clerk in advance of the public hearing, and the City Clerk announced the election results, and the City Council adopted Resolutions Certifying the Election Results for CFD No. 2025-S. Upon certification that 2/3rds of the votes cast were in favor of the propositions voted upon, the Resolution Certifying the Election Results directed the City Clerk to record a notice of special tax lien on the property within CFD No. 2025-S. The City Council introduced an ordinance authorizing the levy of the special tax within CFD No. 2025-S in accordance with the Rate and Method of Apportionment.
The property owner of the proposed Rustic Meadows project within the City is Whitewood-Murrieta, L.P. The Rustic Meadows project is located at the Southeast corner of the intersection of Clinton Keith Road and Whitewood Road. At full buildout, the project is proposed to include approximately 153 single-family homes and will be developed by Century Communities of California, LLC.
The proposed Kensington Apartments project is owned by Murrieta Pacific Associates, Inc. It is an affordable housing project located near the corner of Washington Avenue and Magnolia Street. Upon completion, it will include 126 multi-family units.
FISCAL IMPACT
The Property Owners have made deposits to pay for the costs of the formation proceedings of CFD No. 2025- S. The deposit made by Century Communities may be reimbursed to Century Communities from proceeds of a future bond issuance for a separate facilities CFD being formed in connection with the Rustic Meadows development. If established and subject to necessary Council and voter approvals, CFD No. 2025-S will annually levy special taxes on all the taxable property within the CFD No. 2025-S in accordance with the RMA (as attached to the Resolution of Intention). Such special taxes will be used to pay for the costs of safety services and administration of the CFD No. 2025-S. The levying of the special taxes for services is expected to alleviate some of the financial impact of the new development on the costs of providing such services to the Property by the City. At full build-out, special tax revenues are projected to total $88,740 for the Rustic Meadows project and $18,900 for the Kensington Apartments project.
ATTACHMENTS
1. Ordinance No. 621-25
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ORDINANCE NO. 621-25
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA ACTING IN ITS CAPACITY
AS THE LEGISLATIVE BODY OF COMMUNITY
FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES)
OF THE CITY OF MURRIETA AUTHORIZING THE LEVY
OF SPECIAL TAXES
Summary: The ordinance authorizes the levy of special taxes in accordance with the Rate and Method of Apportionment approved by Resolution No. 25 -4838. These taxes will fund public safety services and will be levied annually on taxable property within the district beginning in the fiscal year specified in the Rate and Method, and continuing each year so long as services are provided through such financing within the District.
WHEREAS, on June 3 , 2025 , the City Council (the “ City Council ”) of the City of Murrieta (the “ City”) adopted Resolution No. 25-4838 declaring its intention to form Community Facilities District No. 2025-S (Safety Services) of the City of Murrieta (the “District”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of Title 5 of the Government Code of the State of California (the “Act”); and
WHEREAS, on July 15, 2025 , after providing all notice re quired by the Act, the City Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the proposed levy of a special tax therein to finance certain safety services described in Resolution No. 25-4838; and
WHEREAS, at the July 15, 2025 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the proposed levy of the special tax to finance the safety services described in Resolution No. 25-4838 were heard and a full and fair hearing was held; and
WHEREAS, on July 15, 2025, the Board adopted Resolution No. 25-4874 which formed the District and called a special election within the District on July 15, 2025 on two propositions relating to the levy of a special tax within the District and the establishment of an appropriations limit within the District; and
WHEREAS, on July 15, 2025 , a special election was held within the District at which the qualified electors approved by a vote of two-thirds or more Propositions A and B authorizing the levy of a special tax within the District for the purposes described in Resolution No. 25-4875 and establishing an appropriations limit for the District; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA
ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-S (SAFETY SERVICES ) OF THE CITY OF MURRIETA ORDAINS AS FOLLOWS:
Section 1. The above recitals are all true and correct. 573
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Section 2. By the passage of this Ordinance, the Board authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment “C” to Resolution No. 25-4838, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter so long as the services authorized to be financed by the District, are provided through such financing within the District.
Section 3. Each of the Mayor, the City Manager, the Assistant City Manager , the Director of Finance, or their written designees (each, an “Authorized Officer”), acting alone, is hereby authorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within the District, in the manner and as provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the Rate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and directed t o provide all necessary information to the Treasurer -Tax Collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and collection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District in each fiscal year.
Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section D of the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. 25- 4838, or in a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment or an existing special tax as provided in Section 53334 of the Act.
Section 5. All of the collections of the special tax shall be used as provided for in the Act, the Rate and Method and Resolution No. 25-4838.
Section 6. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills), as such procedure may be modified by law or by this City Council from time to time.
Section 7. The Mayor of the City shall sign this Ordinance and the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) days after its passag e at least once in The Press Enterprise, a newspaper of general circulation published and circulated in the City of Murrieta.
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Section 8. The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.
Section 9. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer-Tax Collector of the County of Riverside , and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance.
Section 10. A full reading of this Ordinance is dispensed with prior to its final passage, a written or printed copy having been available to the City Council and the public a day prior to its final passage.
Section 11. This Ordinance shall take effect thirty days after its final passage.
PASSED AND ADOPTED by the City Council at a regular meeting held on the _____ day of _____, 2025.
CITY COUNCIL OF THE CITY OF
MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Ordinance No. 621 -25 was introduced by the City Council of the City of Murrieta, California, at its Regular meeting of July 15, 2025 and adopted at its Regular meeting of _____, 2025 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
CRISTAL MCDONALD, CITY CLERK
I, Cristal McDonald, City Clerk of the City of Murrieta, California further certify that Ordinance No. 621-25 was duly published according to law and the order of the City Council of said City and the same was so published in Press Enterprise, a newspaper of general circulation on the following date(s):
Adopted Ordinance: , 2025.
In witness whereof, I have hereunto subscribed my name this __ day of ______________, 2025.
Cristal McDonald, City Clerk
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City Council Meeting Agenda
Report
8/19/2025
Agenda Item No. 16.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Javier Carcamo, Finance Director
PREPARED BY: Javier Carcamo, Finance Director
SUBJECT:
Second Reading of Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta
RECOMMENDATION
Conduct the second reading and adopt Ordinance No. 622-25 entitled: An Ordinance of the City Council of the City of Murrieta, California, Acting in its Capacity as the Legislative Body of Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta Authorizing the Levy of Special Taxes.
PRIOR ACTION/VOTE
On October 3, 2023, the City Council considered an Amendment to the Community Facilities District Goals and Policies and directed staff to present the recommendations in a workshop (Vote: 3-2).
On December 5, 2023, the City Council held a workshop on and adopted the proposed Amendment to the Community Facilities District Goals and Policies.
On May 6, 2025, the City formed Community Facilities District No. 2025-1 (Safety Services), Community Facilities District No. 2025-2 (Maintenance Services), and Community Facilities District No. 2025-3 (Discovery Village) (Vote: 5-0).
On June 3, 2025, the City Council adopted a Resolution of Intention to establish Community Facilities District No. 2025-4 (Rustic Meadows) and set a public hearing for the formation of Community Facilities District No. 2025-4 (Rustic Meadows) for July 15, 2025 (Vote: 5-0).
On July 15, 2025, the City Council held a public hearing and approved the first reading of the Community Facilities District Ordinance No. 622-25 (CFD No. 2025-4 Rustic Meadows) (Vote 5-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
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DISCUSSION
Community Facilities Districts
Community Facility Districts (CFDs) are formed pursuant to the Mello-Roos Community Facilities Act of 1982, as amended (the “Mello-Roos Act”). They are a widely used financing mechanism, frequently used to fund infrastructure associated with new significant (large) development projects, such as water and sewer facilities, storm drain facilities, roads, and parks, and to finance the provision of certain municipal services.
A simplified example of CFD implementation is as follows:
· A developer submits a petition to form the CFD to the City or Special District (water districts frequently form CFDs) to start formation proceedings.
· In the City’s case, staff presents the petition to the City Council for approval. · The District is formed by a vote of the property owners. · Once approved, the city approves the issuance of bonds, which are sold to investors. · Proceeds from the sale of the bonds are used to build the infrastructure associated with the project.
· The bonds are paid off over time (typically 30 years) by the buyers of homes within the project as a part of their property tax bill.
On December 5, 2023, the City Council adopted amendments to the Community Facilities District Goals and Policies. In addition to changes related to state law, other changes contained in the amended policy include:
· A list of eligible facilities that can be financed;
· Adding an escalator of up to two percent (2%) per year for facilities; · Adding an escalator for service or maintenance CFDs to cover increases in the cost of providing services;
· Allowing Development Impact Fees (DIF) to be financed; and · Increasing the maximum cap on the assessed value of a property from 1.8% to 2.0%.
Additional Authorized Services
The Mello-Roos Act also authorizes the City to establish a CFD to finance certain public services through the levy of a special tax. The services that can be funded include the following:
· Police protection services, including, but not limited to, criminal justice (limited to providing services for jails, detention facilities, and juvenile halls). · Fire protection and suppression services, and ambulance and paramedic services. · Recreation program services, library services, maintenance services for elementary and secondary school sites and structures, and the operation and maintenance of museums and cultural facilities.
· Maintenance and lighting of parks, parkways, streets, roads, and open spaces. · Flood and storm protection services, including, but not limited to, the operation and maintenance of storm drainage systems, plowing and removal of snow, and sandstorm protection systems.
· Maintenance and operation of any real property or other tangible property with an estimated useful life of five (5) or more years that is owned by the local agency or by another local agency CITY OF MURRIETA Printed on 8/14/2025Page 2 of 5
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(by agreement).
The Rustic Meadows Project and Community Facilities District No. 2025-4 The property owner of the proposed Rustic Meadows project within the City is Whitewood-Murrieta, L.P. (the “Property Owner”), and the Property Owner submitted a petition requesting that the City form Community Facilities District No. 2025-4 (Rustic Meadows) of the City of Murrieta (“CFDNo. 2025-4”).The property to be included in the proposed CFD No. 2025-4 (the “Property”)is located at the southeast corner of the intersection of Clinton Keith Road and Whitewood Road. The Rustic Meadows project is proposed to include approximately 153 single-family homes at full buildout and will be developed by Century Communities of California, LLC. (the “Developer”).
The Property Owner has requested that the City form CFD No. 2025-4 to encompass the Property in accordance with the Mello-Roos Act to finance the costs of certain public improvements through the levy of a special tax and the issuance of bonds. The maximum amount of bonded indebtedness proposed is $5 million.
The proceeds of bonds to be issued by CFD No. 2025-4 are expected to be used to finance public facilities to be owned and operated by the City and by the Murrieta Valley Unified School District. Additionally, the bond proceeds will be used to finance the payment of DIF owed by the Property Owner to the City.
The Property Owner has requested that the boundaries of CFD No. 2025-4 include the area described in Attachment A of the Resolution of Intention to Establish CFD No. 2025-4 adopted by the City Council on June 3, 2025 (the “CFDNo. 2025-4 Resolution of Intention”),and that special taxes be levied within the boundaries of CFD No. 2025-4 in accordance with the Rate and Method of Apportionment for CFD No. 2025-4 (the “CFD No. 2025-4 RMA”)described in Attachment C to the Resolution of Intention. The proposed rates of the special tax range from $1,659 per unit for single-family homes less than 1,500 square feet to $2,108 per unit for single -family homes greater than 1,700 square feet, and also include tax rates of $41,763 per acre of multi-family property and non-residential property. The special tax rates within CFD No. 2025-4 will increase two percent (2%) annually on July 1, of each year, commencing July 1, 2026.
The CFD No. 2025-4 Resolution of Intention was the first step in the process of forming CFD No. 2025-4 and, together with the Resolution of Intention to Incur Bond Indebtedness by CFD No. 2025-4 adopted by the City Council on June 3, 2025, declared the City’sintention to establish CFD No. 2025-4, its intention to incur bonded indebtedness by CFD No. 2025-4, and called for a public hearing, which took place on July 15, 2025.
Notice of the public hearing was published in The Press Enterprise and mailed to the Property Owner.
In connection with the public hearing, Spicer Consulting Group prepared a Public Hearing Report, which describes and analyzes the facilities to be financed by CFD No. 2025-4 and the estimated costs of such facilities. Following the close of the public hearing, the City Council was asked to adopt the Resolution of Formation for CFD No. 2025-4 and the Resolution Determining Necessity to Incur Bonded Indebtedness by CFD No. 2025-4 which, together, approved the formation of the CFD No. 2025-4, the levy of the special taxes in CFD No. 2025-4 in accordance with the CFD No. 2025-4 Rate and Method of Apportionment (RMA) and determines the necessity for the Facilities CFD to issue bonds in an amount not to exceed $5,000,000. Such resolutions called for an election to submit to the qualified voters of the CFD No. 2025-4 ballot measures on the approval of the special taxes, the issuance of bonds, and an appropriations limit for the CFD No. 2025-4.
The CFD No. 2025-4 Resolution of Formation also approved the execution and delivery of an Acquisition, Construction and Funding Agreement with the Developer (the “Acquisition Agreement”). The Acquisition Agreement sets forth the terms pursuant to which CFD No. 2025-4 will acquire improvements constructed by the Developer from bond proceeds from CFD No. 2025-4 and how the Developer will be reimbursed for development impact fees from bond proceeds. In order to be eligible for acquisition, such facilities must be constructed in accordance with the terms and conditions of the Acquisition, Construction, and Funding CITY OF MURRIETA Printed on 8/14/2025Page 3 of 5
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constructed in accordance with the terms and conditions of the Acquisition, Construction, and Funding Agreement. The City and CFD No. 2025-4 are only required to pay for the acquisition of such facilities from the proceeds of bonds or special taxes levied in CFD No. 2025-4 and not from any other source.
The CFD No. 2025-4 Resolution of Formation also approved the execution and delivery of a Joint Community Facilities and School Facilities Mitigation Agreement among the City and the Murrieta Valley Unified School District (the “JCFA”).The JCFA sets forth the terms pursuant to which the Developer will be reimbursed from bond proceeds from CFD No. 2025-4 for certain school facility fees the Developer is required to pay to the Murrieta Valley Unified School District. To be eligible for acquisition, such facilities must be constructed in accordance with the terms and conditions of the Acquisition, Construction, and Funding Agreement. The City and CFD No. 2025-4 are only required to pay for the acquisition of such facilities from the proceeds of bonds or special taxes levied in CFD No. 2025-4 and not from any other source.
On file with the City Clerk is a Certificate of the Registrar of Voters of Riverside County certifying that there are no registered voters residing within the boundaries of the CFD No. 2025-4. Accordingly, under the Mello-Roos Act, only property owners owning land in CFD No. 2025-4 are eligible to vote at the election for CFD No. 2025- 4, with each owner having one vote for each acre (or portion thereof) that they own within CFD No. 2025-4.
The Property Owner executed a consent and waiver of certain election procedures with respect to the election, including certain timing requirements with respect to the election, in accordance with the Mello-Roos Act. On July 15, the City Council approved the Resolution of Formation and the Resolution Determining Necessity to Incur Bonded Indebtedness. The City Clerk conducted the election. The Property Owner delivered its ballot to the City Clerk in advance of the public hearing, and the City Clerk announced the election results. The City Council was asked to adopt the Resolution Certifying the Election Results. Upon certification that 2/3rds of the votes cast were in favor of the propositions voted upon in CFD No. 2025-4, the Resolution Certifying the Election Results directed the City Clerk to record a notice of special tax lien on the property within CFD No. 2025-4. The City Council was then asked to introduce an ordinance authorizing the levy of the special tax within CFD No. 2025-4, in accordance with the CFD No. 2025-4 RMA.
The Rustic Meadows project is also required to either annex to or request the formation of a public safety services CFD and a maintenance services CFD. Accordingly, the Property Owner has also requested the formation for Community Facilities District No. 2025-S (Safety Services) and that the Property be annexed to Community Facilities District No. 2025-2 (Maintenance Services) and on June 3, 2025, the City Council also adopted resolutions declaring its intention to form CFD No. 2025-S (Safety Services) and approved the annexation of the Rustic Meadows project into CFD No. 2025-2 (Maintenance Services), and held public hearings on July 15, 2025.
FISCAL IMPACT
The Developer made a deposit of $80,000 to pay for the costs of the formation proceedings, which may be reimbursed to the Property Owner from proceeds of a future bond issuance in accordance with the reimbursement agreement with the Developer. The City will annually levy the CFD No. 2025-4 special taxes on all taxable property within CFD No. 2025-4 in accordance with the CFD No. 2025-4 RMA. Such special taxes will be used to pay for the facilities, administration of the CFDs, and debt service on bonds. Any bonds issued by CFD No. 2025-4 are not obligations of the City and will be secured solely by the Special Taxes levied within CFD No. 2025-4.
ATTACHMENTS
1. Ordinance No. 622-25
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ORDINANCE NO. 622-25
AN ORDINANCE OF THE CITY COUNCIL OF THE CITY OF MURRIETA,
CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS ) OF
THE CITY OF MURRIETA AUTHORIZING THE LEVY OF SPECIAL TAXES Summary: The ordinance follows the approval by more than two -thirds of voters in a special election held July 15, 2025, which authorized the levy of special taxes, issuance of bo nds up to $5,000,000, and the establishment of an appropriations limit. The special tax will fund public infrastructure and repay bonded indebtedness, in accordance with the Rate and Method of Apportionment adopted by Resolution No. 25-4839. The tax will be collected annually on taxable properties within the district until all financial obligations are satisfied.
WHEREAS, on June 3, 2025, the City Council (the “City Council”) of the City of Murrieta (the “City”) adopted Resolution No. 25-4839 declaring its intention to form Community Facilities District No. 2025-4 of the City of Murrieta (Rustic Meadows ) (the “District”) pursuant to the Mello -Roos Community Facilities Act of 1982, as amended, comprising Chapter 2.5 of Part 1 of Division 2 of T itle 5 of the Government Code of the State of California (the “Act”), and its Resolution No. 25-4840 declaring its intention to incur bonded indebtedness for the District; and WHEREAS, on July 15, 2025 , after providing all notice required by the Act, the C ity Council conducted a noticed public hearing required by the Act relative to the proposed formation of the District, the proposed levy of a special tax therein to finance certain public facilities described in Resolution No. 25-4839 and to secure the payment of any bonded indebtedness of the District, and the proposed issuance of bonded indebtedness in one or more series in the maximum aggregate principal amount of $ 5,000,000, as described in Resolution No. 25-4840; and
WHEREAS, at the July 15, 2025 public hearing, all persons desiring to be heard on all matters pertaining to the formation of the District and the proposed levy of the special tax to finance the facilities described in Resolution No. 25-4839 and to secure the payment of bonded indebtedness in the maximum aggregate principal amount of $ 5,000,000 of the District as described in Resolution No. 25-4839 (the “Bonds”) were heard and a full and fair hearing was held; and WHEREAS, on July 15, 2025 , the City Council adopted Resolution Nos. 25-4876 and 25-4877 which formed the District and called a special election within the District on July 15, 2025 on three propositions relating to the levy of a special tax within the District, the issuance of the Bonds and the establishment of an appropriations limit within the District; and WHEREAS, on July 15, 2025 , a special election was held within the District at which the qualified electors approved by more than a two thirds vote Propositions A, B, and C authorizing the levy of a special tax within the District for the purposes described in Resolution 25-4876, the issuance of the Bonds as described in Resolution No. 25-4877 and establishing an appropriations limit for the District; and
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA,
CALIFORNIA, ACTING IN ITS CAPACITY AS THE LEGISLATIVE BODY OF COMMUNITY FACILITIES DISTRICT NO. 2025-4 (RUSTIC MEADOWS ) OF THE CITY OF MURRIETA DOES HEREBY ORDAIN AS FOLLOWS:
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Section 1. The above recitals are all true and correct.
Section 2. By the passage of this Ordinance, the City Coun cil authorizes and levies special taxes within the District pursuant to Sections 53328 and 53340 of the Act at the rates and in accordance with the rate and method of apportionment set forth in Attachment C to Resolution No. 25-4839, which is incorporated by reference herein (the “Rate and Method”). The special taxes are hereby levied commencing in the fiscal year specified in the Rate and Method and in each fiscal year thereafter until payment in full of the Bonds (including any bonds issued to refund the Bonds), payment of all costs of the public facilities and services authorized to be financed by the District, and payment of all costs of administering the District.
Section 3. Each of the Mayor, the City Manager, the Assistant City Manager, the Director of Finance, or their written designees (each, an “Authorized Officer”), acting alone, is hereby authorized and directed each fiscal year to determine the specific special tax rates and amounts to be levied in such fiscal year on each parcel of real property within th e District, in the manner and as provided in the Rate and Method. The special tax rate levied on a parcel pursuant to the Rate and Method shall not exceed the maximum rate set forth in the Rate and Method for such parcel, but the special tax may be levied at a lower rate. Each Authorized Officer is hereby authorized and directed to provide all necessary information to the Treasurer -Tax Collector of the County of Riverside and to otherwise take all actions necessary in order to effect proper billing and co llection of the special tax, so that the special tax shall be levied and collected in sufficient amounts and at times necessary to satisfy the financial obligations of the District in each fiscal year, and with respect to Special Tax, until the Bonds are p aid in full, the facilities have been paid for, and provision has been made for payment of all of the administrative costs of the District.
Section 4. Properties or entities of the state, federal or other local governments shall be exempt from the special tax, except as otherwise provided in Sections 53317.3 and 53317.5 of the Act and Section F of the Rate and Method. No other properties or entities are exempt from the special tax unless the properties or entities are expressly exempted in Resolution No. 25-4876 or i n a resolution of consideration to levy a new special tax or special taxes or to alter the rate or method of apportionment or an existing special tax as provided in Section 53334 of the Act.
Section 5. All of the collections of the special tax shall be used as provid ed for in the Act, the Rate and Method and Resolution No. 25-4876.
Section 6. The special tax shall be collected in the same manner as ordinary ad valorem property taxes are collected and shall be subject to the same penalties and the same procedure, sale and lien priority in case of delinquency as is provided for ad valorem taxes (which such procedures include the exercise of all rights and remedies permitted by law to make corrections, including, but not limited to, the issuance of amended or supplemental tax bills) , as such procedure may be modified by law or by this City Council from time to time.
Section 7. As a cumulative remedy, if any amount levied as a special tax for payment of the interest or principal of the Bonds (including any bonds issued to refund the Bonds), together with any penalties and other charges accruing under this Ordinance, are not paid when due, the City Council may, not later than four years after the due date of the last installment of principal on the Bonds (including any bonds issued to refund t he Bonds), order that the same be collected by an action brought in the superior court to foreclose the lien of such special tax, as authorized by the Act. 583
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Section 8. The Mayor of the City shall sign this Ordinance and the City Clerk or Deputy City Clerk (referred to herein as the “City Clerk”) shall attest to the Mayor’s signature and then cause the same to be published within fifteen (15) days after its passage at least once in The Press Enterprise , a newspaper of general circulation published and circulated in the City of Murrieta.
Section 9. The specific authorization for adoption of this Ordinance is pursuant to the provisions of Section 53340 of the Act.
Section 10. The City Clerk is hereby authorized to transmit a certified copy of this ordinance to the Treasurer -Tax Collector of the County of Riverside, and to perform all other acts which are required by the Act, this Ordinance or by law in order to accomplish the purpose of this Ordinance.
Section 11. A full reading of this Ordinance is dispensed with prior to its final passage, a written or pri nted copy having been available to the City Council and the public a day prior to its final passage.
Section 12. This Ordinance shall take effect thirty days after its final passage.
PASSED AND ADOPTED by the City Council at a regular meeting held on the _____ day of _____, 2025.
CITY COUNCIL OF THE CITY OF MURRIETA
By:_______________________________
Cindy Warren
Mayor of the City of Murrieta
ATTEST:
________________________________
Cristal McDonald
City Clerk of the City of Murrieta
APPROVED AS TO FORM:
Tiffany J. Israel, City Attorney
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STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )ss.
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, do hereby certify that the foregoing Ordinance was introduced by the City Council of the City of Murrieta, California, at its Regular meeting of July 15, 2025 and adopted at its Regular meeting of _____, 2025 and that the same was adopted by the following vote:
AYES:
NOES:
ABSENT:
CRISTAL MCDONALD, CITY CLERK
I, Cristal McDonald, City Clerk of the City of Murrieta, California further certify that Ordinance No. 622-25 was duly published according to law and the order of the City Council of said City and the same was so published in Press Enterprise, a newspaper of general circulation on the following date(s):
Adopted Ordinance: , 2025.
In witness whereof, I have hereunto subscribed my name this __ day of ______________, 2025.
Cristal McDonald, City Clerk
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City Council Meeting Agenda
Report
8/19/2025
Agenda Item No. 17.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Matt Henry, Chief of Police
PREPARED BY: Dawnn Jackson, Management Analyst - Administration SUBJECT:
Acceptance of a Grant from the California Highway Patrol Cannabis Tax Fund via the California Highway Patrol Impaired Driving Section
RECOMMENDATION
Adopt Resolution No. 25-4881 entitled: A Resolution of the City Council of the City of Murrieta, California, Authorizing Acceptance of Grant Funds in the Amount of $211,234.00 from the State of California Department of Highway Patrol and Authorizing the City Manager or Their Designee to Execute the Agreement on Behalf of the City; and
Amend the Fiscal Year 2025/26 Operating Budget to allocate and appropriate the grant funding.
PRIOR ACTION/VOTE
None.
CITY COUNCIL GOAL
Provide a high level of innovative public safety.
DISCUSSION
The Murrieta Police Department has been awarded a grant from the California Highway Patrol (CHP) Cannabis Tax Fund, administered through the CHP Impaired Driving Section, Cannabis Grants Unit. The grant's purpose is to improve public safety by enhancing the Department’sability to detect and deter impaired driving through training, equipment upgrades, and public education and enforcement programs.
The funding is made available through the California Revenue and Taxation Code Section 34019(f)(3)(B) and is contingent upon the availability of funds disbursed from the California Cannabis Tax Fund. The grant award total is $211,234.
This grant will allow the Murrieta Police Department to pursue a comprehensive approach to reduce impaired driving through enforcement, education, and community engagement. The project scope includes:
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· Purchase of a DUI/DUID Enforcement Vehicle ($85,000):
A new truck upfitted with emergency and radio equipment to tow the DUI checkpoint trailer, replacing a 2006 vehicle nearing end-of-life.
· Vehicle Upfitting ($35,000):
The vehicle will be upfitted with decals, emergency lights, radios, and computer equipment necessary for deployment.
· Training and Enforcement Personnel ($91,234):
o Host one three (3) day Standardized Field Sobriety Test (SFST) course. o Fund three (3) DUI checkpoints across the year.
o Conduct 20 DUI saturation patrols, distributed evenly across quarters.
These efforts aim to reduce DUI-related traffic collisions, injuries, and fatalities by increasing officer training and visibility in the community. Officers trained through this grant will retain their skills beyond the life of this funding, supporting long-term program sustainability.
FISCAL IMPACT
Staff recommends that the City Council amendment of the Fiscal Year 2025/26 Operating Budget to allocate and appropriate the grant funds in a special revenue fund as follows:
· Intergovernmental Revenue - Federal Reimbursement $211,234 · Capital Outlay - Vehicles $120,000
· Personnel Costs and Operating & Maintenance (various accounts) $91,234 There is no local fund match or cost-share requirement for this grant. This is a reimbursable grant, meaning the City must incur the expenditures prior to requesting reimbursement.
ATTACHMENTS
1. Resolution No. 25-4881
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RESOLUTION NO. 25-4881
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA, AUTHORIZING ACCEPTANCE OF
GRANT FUNDS IN THE AMOUNT OF $2 11,234.00 FROM THE STATE
OF CALIFORNIA DEPARTMENT OF HIGHWAY PATROL AND
AUTHORIZING THE CITY MANAGER OR THEIR DESIGNEE TO
EXECUTE THE AGREEMENT ON BEHALF OF THE CITY
WHEREAS, the State of California Department of Highway Patrol has notified the City of Murrieta that the Murrieta Police Department has been awarded the FY25/26 CTFGP Law Enforcement – Murrieta Police Department grant in the amount of $211,234.00 for the education, prevention, and the enforcement of laws related to driving under the influence of alcohol and other drugs, including cannabis and cannabis products; and
WHEREAS, the Agreement, attached hereto as Exhibit “A”, would provide funds to educate the public regarding the dangers of impaired driving, enforce impaired driving laws on the roadway, and improve the Police Department’s effectiveness through training and development of new strategies; and,
WHEREAS, the grant cycle is from 07/01/2025-06/30/2026 (FY25/26) and for a term of one (1) year.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF MURRIETA, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. That the City Council hereby authorizes acceptance of grant funds from the State of California Department of Highway Patrol. Section 2. That the FY25/26 CTFGP Law Enforcement – Murrieta Police Department Agreement between the City of Murrieta and the State of California Department of Highway Patrol is approved.
Section 3. That the City Manager or their designee is hereby authorized to execute the Agreement on behalf of the City of Murrieta.
Section 4. That the City Manager or his designee is authorized to amend the current year’s Fiscal Year Revenue and Expense Budget in accordance with the grant funds authorized by this Resolution; to carry forward unexpended budget grant funds from fiscal year to fiscal year throughout the term of the grant.
PASSED AND ADOPTED this 19th day of August, 2025.
____________________________
Cindy Warren, Mayor
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ATTEST:
_____________________________
Cristal McDonald, City Clerk
APPROVED AS TO FORM:
_____________________________
Tiffany Israel, City Attorney
STATE OF CALIFORNIA)
COUNTY OF RIVERSIDE) §
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4881 was duly passed and adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 19th day of August 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
_____________________________
Cristal McDonald, City Clerk
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State of California
DEPARTMENT OF CALIFORNIA HIGHWAY PATROL
GRANT AGREEMENT - Page 1
Award Number
23420
________________________________________________________________
1. GRANT TITLE
FY25/26 CTFGP Law Enforcement - Murrieta Police Department
2. NAME OF ORGANIZATION/AGENCY
Murrieta Police Department
3. ORGANIZATION/AGENCY SECTION TO ADMINISTER GRANT
Murrieta Police Department Traffic Division
4. PROJECT PERFORMANCE PERIOD
From: 07/01/2025 To: 06/30/2026
5. PURCHASE ORDER NUMBER
6. GRANT OPPORTUNITY INFORMATION DESCRIPTION
Law Enforcement grants provide financial assistance to allied agencies for the education, prevention, and the enforcement of laws related to driving under the influence of alcohol and other drugs, including cannabis and cannabis products.
The intent of the program is to educate the public regarding the dangers of impaired driving, enforce impaired driving laws on the roadway, and improve the Organization/Agency’s effectiveness through training and development of new strategies.
7. FUNDS ALLOCATED UNDER THIS GRANT AGREEMENT SHALL NOT EXCEED $211,234.00
8. TERMS AND CONDITIONS
The Grantee agrees to complete the Project, as described in the Project Description. The Grantee’s Grant Application, and the California Code of Regulations, Title 13, Division 2, Chapter 13, Sections 1890.00- 1890.27, are hereby incorporated into this Grant Agreement by reference.
The parties hereto agree to comply with the Terms and Conditions of the following attachments:
• Schedule A – Project Description, Problem Statement, Goals and Objectives, and Method of Procedure • Schedule B – Detailed Budget Estimate
• Schedule B-1 – Budget Narrative
We, the officials named below, hereby swear, under penalty of perjury under the laws of the State of California, that we are duly authorized to legally bind the Grant recipient to the above-described Grant Terms and Conditions.
IN WITNESS WHEREOF, this Grant Agreement is executed by the parties hereto.
9. APPROVAL SIGNATURES
A. AUTHORIZED OFFICIAL OF ORGANIZATION/AGENCY
Name: Matt Henry
Title: Chief of Police
Phone: (951) 461-6320
A
ddress: 2 Town Square
Murrieta, CA 92562
E-Mail: [email protected]
__
_________________________ _______________
(Signature) (Date)
B. AUTHORIZED OFFICIAL OF CHP
Name: Andrew Beasley Phone: (916) 843-4360
Title: Captain Fax: (916) 322-3169
A
ddress: 601 North 7th Street
Sacramento, CA 95811
E-Mail: [email protected]
__
_________________________ _______________
(Signature) (Date)
C. ACCOUNTING OFFICER OF CHP
Name: M. V. Fojas Phone: (916) 843-3531
Title: Commander Fax: (916) 322-3159
A
ddress: 601 North 7th Street
Sacramento, CA 95811
E-Mail: [email protected]
__
_________________________ _______________
(Signature) (Date)
10. AUT HORIZED FINANCIAL CONTACT TO RECEIVE
REIMBURSEMENT PAYMENTS
Name: Dawnn Jackson
Title: Management Analyst
Phone: (951) 461-6321
Address: 2 Town Square
Murrieta, CA 92562
590
TERMS AND CONDITIONS
Grantee shall comply with the California Code of Regulations, Title 13, Division 2, Chapter 13 Section 1890, et seq. and all other Terms and Conditions noted in this Grant Agreement. Failure by the Grantee to comply may result in the termination of this Grant Agreement by the California Highway Patrol (hereafter referred to as State). The State will have no obligation to reimburse the Grantee for any additional costs once the Grant Agreement has been terminated.
A. EXECUTION
1. The State (the California Highway Patrol) hereby awards, to the Grantee, the sum of money stated on page one of this Grant Agreement. This funding is awarded to the Grantee to carry out the Project set forth in the Project Description and the terms and conditions set forth in this Grant Agreement.
2. The funding for this Grant Agreement is allocated pursuant to California Revenue and Taxation Code Section 34019(f)(3)(B). The Grantee agrees that the State’s obligation to pay any sum under this Grant Agreement is contingent upon availability of funds disbursed from the California Cannabis Tax Fund to the State. If there is insufficient funding, the State shall have the option to either: 1) terminate this Grant Agreement; whereby, no party shall have any further obligations or liabilities under this Grant Agreement, or 2) negotiate a Grant Agreement Amendment to reduce the grant award and scope of work to be provided under this Grant Agree ment.
3. The Grantee is not to commence or proceed with any work in advance of receiving notice that the Grant Agreement is approved. Any work performed by the Grantee in advance of the date of approval by the State shall be deemed volunteer work and will not be reimbursed by the State.
4. The Grantee agrees to provide any additional funding, beyond what the State has agreed to provide, pursuant to this Grant Agreement, and necessary to complete or carry out the Project, as described in this Grant Agreement. Any modification or alteration of this Grant Agreement, as set forth in the Grant Application submitted by the Grantee and on file with the State, must be submitted in writing thirty (30) calendar days in advance to the State for approval.
5. The Grantee agrees to complete the Project within the timeframe indicated in the Project Performance Period, which is on page one of this Grant Agreement.
B. PROJECT ADMINISTRATION
1. The Grantee shall submit all reimbursements, progress, performance, and/or other required reports concerning the status of work performed in furtherance of this Grant Agreement on a quarterly basis, or as requested by the State.
2. The Grantee shall provide the State with a final report showing all Project expenditures, which includes all State and any other Project funding expended, within sixty (60) calendar days after completion of this Grant Agreement.
3. The Grantee shall ensure all equipment which is purchased, maintained, operated, and/or developed is available for inspection by the State.
4. Equipment purchased through this Grant Agreement shall be used for the education, prevention, and enforcement of impaired driving laws, unless the Grantee is funding a portion of the purchased price not dedicated to impaired driving and that portion is not part of the Project costs.
Equipment purchased under this Grant Agreement must only be used for approved Project- related purposes, unless otherwise approved by the State in writing.
5. Prior to disposition of equipment acquired under this Grant Agreement, the Grantee shall notify the State via e- mail, and by telephone, by calling the California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit at (916) 843-4360. 591
TERMS AND CONDITIONS
C. PROJECT TERMINATION
1. Grantee or the State may terminate this Grant Agreement at any time prior to the commencement of the Project. Once the Project has commenced, this Grant Agreement may only be terminated if the party withdrawing provides thirty (30) calendar days written notice of their intent to withdraw.
a. If by reason of force majeure the performance hereunder is delayed or prevented, then the term end date may be extended by mutual consent for the same amount of time of such delay or prevention. The term “force majeure” shall mean any fire, flood, earthquake, or public disaster, strike, labor dispute or unrest, embargo, riot, war, insurrection or civil unrest, any act of God, any act of legally constituted authority, or any other cause beyond the Grantee’s control which would excuse the Grantee’s performance as a matter of law.
b. Grantee agrees to provide written notice of an event of force majeure under this Grant Agreement within ten (10) calendar days of the commencement of such event, and within ten (10) calendar days after the termination of such event, unless the force majeure prohibits Grantee from reasonably giving notice within this period. Grantee will give such notice at the earliest possible time following the event of force majeure.
2. Any violations of law committed by the Grantee, misrepresentations of Project information by the Grantee to the State, submission of falsified documents by the Grantee to the State, or failure to provide records by the Grantee to the State when requested for audit or site visit purposes may be cause for termination. If the Project is terminated for the reasons described in this paragraph, the State will have no obligation to reimburse the Grantee for any additional costs once the Grant Agreement has been terminated.
3. The State may terminate this Grant Agreement and be relieved of any payments should the Grantee fail to perform the requirements of this Grant Agreement at the time and in the manner herein provided. Furthermore, the Grantee, upon termination, shall return grant funds not expended by the Grantee as of the date of termination.
4. If this Grant Agreement is terminated, the State may choose to exclude the Grantee from future Grant Opportunities.
D. FINANCIAL RECORDS
1. The Grantee agrees the State, or their designated representative, shall have the right to review and to copy all records and supporting documentation pertaining to the performance of this Grant Agreement. Grantee agrees to maintain such records for possible audit for a minimum of five (5) years after final payment, unless a longer period of records retention is stipulated or required by law. Grantee agrees to allow the auditor(s) access to such records during normal business hours and to allow interviews of any employees who might reasonably have information related to such records. Furthermore, the Grantee agrees to include a similar right for the State to audit all records and interview staff in any subcontract related to performance of this Grant Agreement.
E. HOLD HARMLESS
1. The Grantee agrees to indemnify, defend, and save harmless the State, its officials, agents and employees from any and all claims and losses accruing or resulting to any and all Grantee’s staff, contractors, subcontractors, suppliers, and other person, firm or corporation furnishing or supplying work services, materials, or supplies in connection with the performance of this Grant Agreement, and from any and all claims and losses accruing or resulting to any person, agency, firm, corporation who may be injured or damaged by the Grantee in performance of this Grant Agreement.
592
TERMS AND CONDITIONS
F. NONDISCRIMINATION
1. The Grantee agrees to comply with State and federal laws outlawing discrimination, including, but not limited to, those prohibiting discrimination because of sex, race, color, ancestry, religion, creed, national origin, physical disability (including HIV and AIDS), mental disability, medical condition (including cancer or genetic characteristics), sexual orientation, political affiliation, position in a labor dispute, age, marital status, and denial of statutorily-required employment- related leave. (GC 12990 [a-f] and CCR, Title 2, Section 8103.)
G. AMERICANS WITH DISABILITIES ACT
1. The Grantee assures the State it complies with the Americans with Disabilities Act (ADA) of 1990, which prohibits discrimination on the basis of disability, as well as all applicable regulations and guidelines issued pursuant to the ADA. (42 U.S.C. 12101 et seq.)
H. DRUG-FREE WORKPLACE
1. The Grantee shall comply with the requirements of the Drug-Free Workplace Act of 1990 and will provide a drug-free workplace by taking the following actions:
a. Publish a statement notifying employees that unlawful manufacture, distribution, dispensation, possession, or use of a controlled substance is prohibited and specifying actions to be taken against employees for violations.
b. Establish a Drug-Free Awareness Program to inform employees about:
i. The dangers of drug abuse in the workplace.
ii. The person's or Organization/Agency's policy of maintaining a drug-free workplace.
iii. Any available counseling, rehabilitation, and employee assistance programs.
iv. Penalties that may be imposed upon employees for drug abuse violations.
c. Every employee who works on the Project will:
i. Receive a copy of the company's drug-free workplace policy statement.
ii. Agree to abide by the terms of the company's statement as a condition of employment on the Grant Agreement.
2. Failure to comply with these requirements may result in suspension of payments under this Grant Agreement, or termination of this Grant Agreement, or both, and Grantee may be ineligible for award of any future Grant Agreements if the department determines that any of the following has occurred:
a. The Grantee has made false certification or violated the certification by failing to carry out the requirements, as noted above. (GC 8350 et seq.)
I. LAW ENFORCEMENT AGENCIES
1. All law enforcement Organization/Agency/Agency Grantees shall comply with California law regarding racial profiling. Specifically, law enforcement Organization/Agency/Agency Grantees shall not engage in the act of racial profiling, as defined in California Penal Code Section 13519.4.
593
TERMS AND CONDITIONS
J. LABOR CODE/WORKERS' COMPENSATION
1. The Grantee is advised and made aware of the provisions which require every employer to be insured against liability for Worker's Compensation or to undertake self-insurance in accordance with the provisions, and Grantee affirms to comply with such provisions before commencing the performance of the work of this Grant Agreement, (refer to Labor Code Section 3700).
K. GRANT APPLICATION INCORPORATION
1. The Grantee agrees the Grant Application and any subsequent changes or additions approved or required by the State is hereby incorporated into this Grant Agreement.
L. STATE LOBBYING
1. The Grantee is advised that none of the funds provided under this Grant Agreement may be used for any activity specifically designed to urge or influence a state or local legislator to favor or oppose the adoption of any specific legislative proposal pending before any state or local legislative body. Such activities include both direct and indirect (e.g., “grassroots”) lobbying activities, with one exception. This does not preclude a state official, whose salary is supported by this Grant Agreement, from engaging in direct communications with the state or local legislative officials, in accordance with customary state and/or local practice.
M. REPRESENTATION AND WARRANTIES
1. The Grantee represents and warrants that:
a. It is validly existing and in good standing under the laws of the State of California, has, or will have the requisite power, authority, licenses, permits, and the like necessary to carry on its business as it is now being conducted and as contemplated in this Grant Agreement, and will, at all times, lawfully conduct its business in compliance with all applicable federal, state, and local laws, regulations, and rules.
b. It is not a party to any Grant Agreement, written or oral, creating obligations that would prevent it from entering into this Grant Agreement or satisfying the terms herein.
c. If the Grantee is a Nonprofit Organization/Agency, it will maintain its “Active” status with the California Secretary of State, maintain its “Current” status with the California Attorney General’s Registry of Charitable Trusts, and maintain its federal and State of California tax - exempt status. If the Grantee subcontracts with a Nonprofit as part of this Grant Agreement, the Grantee shall ensure the Nonprofit will maintain its “Active” status with the California Secretary of State, maintain its “Current” status with the California Attorney General’s Registry of Charitable Trusts, and maintain its federal and State of California tax-exempt status.
d. All of the information in its Grant Application and all materials submitted are true and accurate.
N. AIR OR WATER POLLUTION VIOLATION
1. Under the state laws, the Grantee shall not be: (1) in violation of any order or resolution not subject to review promulgated by the State Air Resources Board or an air pollution control district; (2) subject to cease and desist order not subject to review issued pursuant to Section 13301 of the Water Code for violation of waste discharge requirements or discharge prohibitions; or (3) finally determined to be in violation of provisions of federal law relating to air or water pollution. 594
TERMS AND CONDITIONS
O. GRANTEE NAME CHANGE
1. Grantee agrees to immediately inform the State, in writing, of any changes to the name of the person within the Organization/Agency/Agency with delegated signing authority.
2. An Amendment is required to change the Grantee's name, as listed on this Grant Agreement. Upon receipt of legal documentation of the name change, the State will process the Amendment. Payment of invoices presented with a new name cannot be paid prior to approval of said Amendment.
P. RESOLUTION
1. A county, city, district, or other local public body shall provide the State with a copy of a resolution, order, motion, or ordinance of the local governing body, which by law, has authority to enter into a Grant Agreement, authorizing execution of the Grant Agreement.
Q. PAYEE DATA RECORD FORM STD. 204
1. This form shall be completed by all non-governmental Grantees.
R. FINANCIAL INFORMATION SYSTEM FOR CALIFORNIA GOVERNMENT AGENCY TAXPAYER ID FORM
1. This form shall be completed by all Grantees.
S. CONFLICT OF INTEREST
1. This section serves to make the Grantee aware of specific provisions related to current or former state employees. If Grantee has any questions regarding the status of any person rendering services or involved with the Grant Agreement, the Grantee shall contact the State (California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit) immediately for clarification.
2. Current State Employees:
a. No officer or employee shall engage in any employment, activity, or enterprise, from which the officer or employee receives compensation or has a financial interest, and which is sponsored or funded by any state agency, unless the employment, activity, or enterprise is required, as a condition of regular state employment.
b. No officer or employee shall contract on their own behalf, as an independent Grantee, with any state agency to provide goods or services.
3. Former State Employees:
a. For the two-year period from the date they left state employment, no former state officer or employee may enter into a contract in which they engaged in any of the negotiations, transactions, planning, arrangements, or any part of the decision-making process relevant to this Grant Agreement while employed in any capacity by any state agency.
b. For the 12-month period from the date they left state employment, no former state officer or employee may enter into a contract with any state agency if they were employed by that state agency in a policy-making position in the same general subject area as the proposed Grant Agreement within the 12-month period prior to their leaving state service.
4. The authorized representative of the Grantee Organization/Agency, named within this Grant Agreement, warrants their Organization/Agency and its employees have no personal or financial interest and no present or past employment or activity, which would be incompatible with 595
TERMS AND CONDITIONS
participating in any activity related to this Grant Agreement. For the duration of this Grant Agreement, the Organization/Agency and its employees will not accept any gift, benefit, gratuity or consideration, or begin a personal or financial interest in a party who is associated with this Grant Agreement.
5. The Grantee Organization/Agency and its employees shall not disclose any financial, statistical, personal, technical, media-related, and/or other information or data derived from this Grant Agreement, made available for use by the State, for the purposes of providing services to the State, in conjunction with this Grant Agreement, except as otherwise required by law or explicitly permitted by the State in writing. The Grantee shall immediately advise the State of any person(s) who has access to confidential Project information and intends to disclose that information in violation of this Grant Agreement.
6. The Grantee will not enter into any Grant Agreement or discussions with third parties concerning materials described in paragraph five (5) prior to receiving written confirmation from the State that such third party has a Grant Agreement with the State, similar in nature to this one.
7. The Grantee warrants that only those employees who are authorized and required to use the materials described in paragraph 5 will have access to them.
8. If the Grantee violates any provisions in the above paragraphs, such action by the Grantee shall render this Grant Agreement void.
T. EQUIPMENT-USE TERMS
1. The Grantee agrees any equipment purchased under this Grant Agreement shall be used for impaired driving efforts.
2. Law Enforcement Projects:
a. Oral Fluid Drug Screening Devices and Cannabis/Marijuana Breath Testing Equipment - The Grantee agrees to ensure all personnel using road-side drug testing equipment, including oral fluid drug testing devices and/or cannabis/marijuana breath testing devices, purchased with grant funds from this Grant Agreement, are trained to recognize alcohol and drug impairment.
At a minimum, personnel using these devices should receive Standardized Field Sobriety Testing training. These personnel are also encouraged to attend Advanced Roadside Impaired Driving Enforcement and Drug Recognition Evaluator training. Prior to using these devices, the Grantee agrees to obtain permission from their local prosecutor’s office, establish a policy ensuring appropriate use, and require the staff using these devices to receive appropriate training, which may include training from the manufacturer. This will help ensure the equipment is used appropriately. The Grantee shall advise the State (California Highway Patrol, Impaired Driving Section, Cannabis Grants Unit) of any legal challenges or other items of significance that may affect the use or legal acceptance of these devices.
Additionally, the State may request additional information about the performance of these devices, including information about their use, accuracy, and feedback from personnel using the devices.
b. Law Enforcement Vehicles – The Grantee agrees any law enforcement vehicles purchased with Grant funds, from this Grant Agreement, will be primarily used for the enforcement of driving under the influence laws and/or providing public education, related to the dangers of driving under the influence. Additionally, any vehicle purchased using funds from this Grant Agreement shall comply with all California Vehicle Code and California Code of Regulation requirements. The State may require the Grantee to mark these vehicles with a decal and/or emblem, indicating the vehicle is used for driving under the influence enforcement. 596
Schedule A
Murrieta Police Department
All grant awards, including any adjustments to requested funding, were made by the Cannabis Grants Unit based on the merits of the Grant Application, scale of operation, and in accordance with the Request for Application (RFA) requirements and associated regulations. As a result, not all Project activities and items detailed in Schedule A are applicable. Refer to Schedule B - Detailed Budget Estimate for approved Budget line items and Project activities. Project activities and items that are not clearly identified/specified in the Grant Agreement must be submitted to and approved by CGU prior to purchase.
Project Description
The Murrieta Police Department is trying to purchase new equipment to ensure we have the ability to service our DUI Checkpoints and maintain our presence in the community for the detection and enforcement of impaired driving and improving the safety of motorists in our service area. We believe the most effective use of monies to have the greatest impact on the community is updating our truck to serve the needs of the community for the next 20 years as our current truck for the DUI trailer is a 2006 and agi ng. Furthermore we would like to increase the number of officers trained in the detection and enforcement of impaired driving by allocating funds to have more officers complete the SFST and ARIDE Training, as well as getting more officers trained as trainers so we can put on future training to help the law enforcement community around us with the higher level of expertise. Lastly, we would like to use funds to have more DUI Saturation patrols as well as checkpoints. We believe taking the approach of high visibility patrols as well as publicized DUI checkpoints not only acts as a community deterrent but increases the likelihood of detection which can improve the safety by locating violators before they are involved in vehicle collision.
Problem Statement & Proposed Solution
The City of Murrieta is home to approximately 118,000 residents and is continuing to grow and expand. This expansion is estimated to continue at a growth rate of 1.47% per year and has increased the usage of the roads and increased the capacity for collisions, especially those related to impaired driving. In 2024, the Murrieta Police Department took 686 collision reports. Of those reports there were 25 involving alcohol or drugs and resulted in an injury. There were also 4 fatalities related to impaired driving in 2024. Furthermore the Murrieta Police Department services nearly 22,000 students across the different schools which require education about impaired driving. The department is dedicated to taking a multi-pronged approach to reducing the harm of impaired driving on the community. Utilizing the funding from the grant to get more training, better equipment and more opportunities for increased enforcement.
Performance Measures/Scope of Work
1 Truck outfitted with emergency equipment purchased in Q1 which will be put into the fleet as soon as practical. This truck will be used to transport our checkpoint trailer and equipment for DUI and DL checkpoints throughout the city.
3() DUI Checkpoints (Q2-(1 event), Q-3-(1 event), Q-4-1 event)): We are looking to increase awareness and prevention for drunken and drugged driving by increasing our presence in the community via checkpoints and reducing related collisions by 10%.
20 DUI Saturation Patrols (Q1-5, Q2-5, Q3-5, Q4-5): The increased patrol and presence in the community would look to reduce the number of deaths related to drunken and drugged driving by 10%.
Host and Instruct 1 SFST Course during Q1: We would train our own officers as well as invite officers from other agencies to attend the training. This would allow us to increase our proficiency in identifying drivers under the influence and expand our reach beyond just our department so the funds are better spent and invested.
Project Performance Evaluation
At the end of the reporting period, I will run statistical data through our reporting system. I will look to see a reduction in the number of collisions that are related to DUI and DUID. I will further examine this data to identify the seriousness of the collisions to see the reduction in fatal collisions. I will also look at our report management system to identify an increase in DUI and DUID arrests. This will help determine if the increased training and presence of officers leads to a year over year improvement in our enforcement activities as we address the problem through enforcement and education. 597
Schedule A
For the community education and outreach portion, I will look at the social media engagement data to keep track of how our posts and advertising of our activities are interacted with by members of the community. I will be able to identify our reach and when we post follow up information in reporting our stats from the activities to the community, how they respond.
Program Sustainability
The truck is a one time purpose that will replace old equipment that we already have. The department is committed to the servicing and upkeep of the new equipment to ensure it is useable for the long term thus not require any funding of significance. Additionally once the officers have gone through the training, they will then be able to deploy that training in the field. Furthermore they can informally train their partners up to bring the overall knowledge of the department up to a higher level of understanding. This knowledge will outlast the grant funds and be used into the future as officers are trained and gain more experience.
Administrative Support
The department currently and historically has been operating with funding from the OTS Grant. The OTS Grant is currently managed by myself, and I am aware of the documentation and reporting guidelines and how to manage and track the funding. We have a managerial analyst, who is the responsible party for the fiscal side of the grants. Dawnn Jackson has been in place for several years and knows the guidelines and tracking for grant funding to ensure we stay within budget and account for the monies entrusted to the department for reportable costs. The department as a whole has the staffing to ensure the funds are appropriately used in increasing our enforcement and presence in the community without impacting our day to day operations. We have enough trained staff that we can host an SFST course and train not only our officers but invite other local law enforcement agencies to train thus making the dollars used more valuable by helping other agencies and keeping California's roadways safer and our increasing our investigative prowess as it comes to DUI and DUID detection.
598
Schedule B
Detailed Budget Estimate
Award Number Organization/Agency Total Amount
23420 Murrieta Police Department $211,234.00
Cost Category Line Item Name Total Cost to Grant
Other Direct Costs
DUI/DUID Vehicle Outfitting $35,000.00
Category Sub-Total $35,000.00
Personnel
SFST Training-Instruct $11,304.00
DUI Saturation Patrols $43,180.00
DUI Checkpoint $36,750.00
Category Sub-Total $91,234.00
Equipment
DUI/DUID Vehicle $85,000.00
Category Sub-Total $85,000.00
Grant Total $211,234.00
599
Schedule B-1
Budget Narrative
Murrieta Police Department
Prior to engaging in grant-funded Saturation Patrols, DUI Checkpoints, or other enforcement activities in areas where the grantee does not have primary traffic jurisdiction, the grantee should consult with the agency having primary traffic jurisdiction.
Other Direct Costs
DUI/DUID Vehicle Outfitting
$35,000.00
The truck will need to be upfitted with decals, emergency equipment, radio equipment, and computer equipment.
The cost breakdown is approximately:
Decals 5,000.00
Emergency Equipment 23,000.00
Radio Equipment 10,000.00
Computer Equipment 2,000.00
Personnel
DUI Checkpoint
$36,750.00
3 DUI Checkpoints for 8 hours (all hours listed below are overtime rates including benefits):
1 Sgt / 134.92/ hour
10 line workers (officer up to sgt) / 134.92/ hour
1 Civilian / 47.23/hour (Civilian is responsible assisting in vehicle tows as well as tracking the vehicles through the checkpoint to comply with "Ingrasoll 8" for lawful checkpoints).
DUI Saturation Patrols
$43,180.00
20 patrols of 2 units working- 8 hour shifts (this is the highest level of overtime rate including benefits)
Any rank up to Sgt at 134.92/hour
SFST Training-Instruct
$11,304.00
Host a 3-day POST Certified SFST Course 3 Instructors up to rank of Sgt 134.92/hour (this is the overtime rate including benefits)= 24 hours of training and 3 hours of prep time to equal 27 hours per position. Food/snacks for hosting the training including a wet lab: $125/day of training
Equipment
DUI/DUID Vehicle
$85,000.00
The purchase of a new truck that will be used to tow the DUI Checkpoint Trailer to and from events. This cost includes the purchase of the truck, the installation of required emergency equipment, and any storage necessary for the truck to hold equipment related to the checkpoint activities and enforcement activities.
The truck is approximately $85,000.00
600
CITY OF MURRIETA
City Council Meeting Agenda
Report
8/19/2025
Agenda Item No. 18.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bob Moehling, Public Works Director
PREPARED BY: Jeff Hitch, City Engineer
SUBJECT:
Declaration that Emergency Conditions Persist in Connection with the Hayes Avenue Bridge at Miller Canyon Creek
RECOMMENDATION
Adopt Resolution No. 25-4882 entitled: A Resolution of the City Council of the City of Murrieta, California, Declaring that Emergency Conditions Persist in Connection with the Hayes Avenue Bridge at Miller Canyon Creek by a four/fifths vote.
PRIOR ACTION/VOTE
On June 20, 2023, the City Council authorized an on-call consulting services Agreement with Michael Baker International, Inc. for civil engineering services (Vote: 4-0).
On June 4, 2024, the City Council approved Resolution No. 24-4745, approving the Capital Improvement Plan Budget for Fiscal Year 2024/25, and the Fiscal Year 2024/25 to 2028/29 Capital Improvement Plan (Vote 5-0).
On March 18, 2025, the City Council adopted Resolution No. 25-4816, declaring an emergency condition for the Hayes Avenue Bridge at Miller Canyon Creek, authorizing a purchase order for Michael Baker International in the amount of $89,580.92, and amending the Capital Improvement Plan budget to create the Hayes Avenue Bridge at Miller Canyon Creek Project CIP No. 11004 and appropriate $725,000 of Area Drainage Fees (Vote 5-0).
On June 17, 2025, the City Council adopted Resolution No. 25-4847, declaring that Emergency Conditions persist in connection with the Hayes Avenue Bridge at Miller Canyon Creek (Vote 5-0) and On July 1, 2025, the City Council adopted Resolution No. 25-4863, declaring that Emergency Conditions persist, appropriating funding, and approving the execution of a contract for reconstruction of the Hayes Avenue Bridge at Miller Canyon Creek (Vote 4-0).
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
CITY OF MURRIETA Printed on 8/14/2025Page 1 of 3
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8/19/2025
Agenda Item No. 18.
DISCUSSION
On February 6, 2025, the City of Murrieta (City) staff encountered a pothole in the deck of the Hayes Avenue Bridge crossing Miller Canyon Creek, located generally between Ivy Street and B Street. Upon this discovery, Engineering staff believed the bridge could be unsafe and closed the bridge until further evaluation could be completed.
Michael Baker International (MBI) was contracted using the City’sexisting on-call agreement to perform a structural evaluation of the bridge. The evaluation was performed, and a report was generated and provided to the City. The report concluded that the bridge is structurally deficient for fire truck access and needs to be replaced. The bridge has a span that is 15-feet long, is 24-feet wide, and has concrete abutments with wooden girders and decking covered with asphalt concrete. MBI subsequently provided the City with a proposal to provide environmental and engineering services for engineering plans and emergency environmental permits necessary to replace the bridge with an alternate reinforced concrete box culvert. Environmental and engineering design has since been completed, and the permit documents are ready to be submitted once a contractor is ready to commence work.
The adoption of an emergency declaration on March 18, 2025, allowed for emergency permitting as well as foregoing the normal public works bidding requirements pursuant to the California Public Contract Code, allowing staff to negotiate a scope of work and fee with contractors to perform the necessary construction. The scope of work included removing the existing bridge structure, minor grading, and construction of a cast-in- place Reinforced Concrete Box (RCB), concrete wingwalls, rip rap energy dissipators, new pavement section over the RCB, and guardrail. Originally, construction was anticipated to commence within two (2) weeks of award and that it would take three (3) to four (4) weeks to complete.
A resolution was adopted extending the emergency declaration, and on July 1, 2025, a contract was awarded to Murrieta Development Construction to construct the bridge replacement subject to environmental permits and further extend the emergency declaration. However, the emergency permit has not yet been approved by the Regional Water Quality Control Board (RWQCB), and the RWQCB is requiring a modification to the design of the bridge structure from a box culvert design to a span bridge design which also requires coordination with Western Municipal Water District (WMWD) due to an adjacent waterline that is now impacted. As a result, the emergency declaration now needs to be extended until the final design can be determined.
Initiation of construction of the bridge is pending finalization of the bridge design, coordination with WMWD, and approval of the permits from RWQCB. Once the permits are approved, due to lead times to acquire bridge materials, staff is hopeful that construction will commence in November 2025.
The emergency conditions will remain until the bridge has been repaired. Under the California Public Contract Code, the City Council is required to periodically review whether the emergency conditions have abated and/or continue as well as to adopt a resolution by a four-fifths vote to confirm the continuation of the emergency or to declare the emergency to be concluded.
FISCAL IMPACT
There is no fiscal impact associated with this item. The additional cost of this project, if there is any, is unknown at this time.
ATTACHMENTS
1. Resolution No. 25-4882
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Agenda Item No. 18.
2. Vicinity Map
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01375.0024 2012316.1 6/10/2025
RESOLUTION 25-4882
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF MURRIETA,
CALIFORNIA, DECLARING THAT EMERGENCY CONDITIONS PERSIST
IN CONNECTION WITH THE HAYES AVENUE BRIDGE AT MILLER
CANYON CREEK
WHEREAS, after strong winter storms, o n February 6, 202 5, City of Murrieta (“City”) staff encountered a pothole in the deck of the Hayes Avenue Bridge crossing Miller Canyon Creek located generally between Ivy Street and B Street (“Bridge”), requiring the City to close the Bridge until further evaluation could be completed; and WHEREAS, on February 11, 2025, a contractor retained by the City conducted a structural evaluation of the Bridge and determined that the Bridge is structurally deficient for fire truck access and needs to be replaced . This unexpected occ urrence, which has not yet been remedied, poses a clear and imminent danger requiring immediate action to allow the City to continue providing fire truck access to all of its residents, which is an essential public serv ice, and the closure of the Bridge co nstitutes an “emergency” as defined in Public Contract Code § 1102; and
WHEREAS, pursuant to Public Contract Code §§ 20168 and 22050, contracts for emergency expenditures may be approved by the adopt ion, by a four -fifths vote, of a resolution declaring th at the public interest and necessity demand the immediate expenditure of public money to safeguard life, health, or property such that the City is authorized to procure the necessary equipment, services, and supplies for those purposes, without giving noti ce for bids to let contracts; and
WHEREAS, as a result of the unexpected occurrence the City desires to use the process authorized by Public Contract Code § 22050 to immediately investigate and replace the Bridge; and
WHEREAS, on March 18, 2025, the Cit y Council adopted Resolution No. 25 -4816 by a 5-0 vote to authorize investigations and emergency repair work to the Bridge pursuant to California Public Contract Code Sections 1102, 20168, and 22050; and
WHEREAS, the City Council adopted Resolution No. 2 5-4847, declaring that Emergency Conditions persist in connection with the Hayes Avenue Bridge at Miller Canyon Creek; and
WHEREAS, on July 1, 2025, the City adopted Resolution No. 25 -4863, declaring that Emergency Conditions persist, appropriating fundi ng, and approving the execution of a contract for reconstruction of the Hayes Avenue Bridge at Miller Canyon Creek ; however, the emergency permit has not yet been approved by the Regional Water Quality Control Board (RWQCB) and the RWQCB is requiring a mod ification to the design of the bridge structure which requires the project to be redesign and coordination with Western Municipal Water District (WMWD); and 604
01375.0024 2008311.1 5/27/2025
WHEREAS, the ongoing structural deficiency continues to constitute an “emergency” as that term is defined in Public Contract Code § 1102; and
WHEREAS, this item will be reviewed until the repair work has been completed, to ensure that the need to continue the emergency action continues to exist.
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF
MURRIETA, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
Section 1. The recitals above are true and correct and incorporated herein by this reference.
Section 2. The City Council finds that the facts set forth above constitute facts demonstrating that an emergency condition exists , has not abated, and that such emergency condition does not permit the delays which would result from a competitive solicitation for bids.
The City Council further finds that the immediate replacement of the Bridge is necessary to respond to the emergency conditions.
Section 3. The City Engineer shall cause a report on the status of the emergency circumstances to be agendized at a City Council meeting every sixty days until either the City Council finds that the repair work has been completed or that the emergency conditions have ceased to be present.
Section 4. The City Clerk shall certify to the adoption of this Resolution.
PASSED AND ADOPTED this 19th day of August, 2025.
Cindy Warren, Mayor
ATTEST:
Cristal McDonald, City Clerk
APPROVED AS TO FORM:
Tiffany J. Israel, City Attorney
605
01375.0024 2008311.1 5/27/2025
STATE OF CALIFORNIA )
COUNTY OF RIVERSIDE )§
CITY OF MURRIETA )
I, Cristal McDonald, City Clerk of the City of Murrieta, California, do hereby certify that the foregoing Resolution No. 25-4882 was duly passed an d adopted by the City Council of the City of Murrieta at the regular meeting thereof, held on the 19th day of August, 2025, and was signed by the Mayor of the said City, and that the same was passed and adopted by the following vote:
AYES:
NOES:
ABSENT:
ABSTAIN:
Cristal McDonald, City Clerk
606
607
CITY OF MURRIETA
City Council Meeting Agenda
Report
8/19/2025
Agenda Item No. 19.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bob Moehling, Public Works Director
PREPARED BY: Renée Santos, Administrative Assistant - Engineering SUBJECT:
First Amendment to the Agreement with Leighton Consulting, Inc. for On-Call Geotechnical Consulting Services
RECOMMENDATION
Approve the First Amendment to the Agreement with Leighton Consulting, Inc., to reflect the assignment of the agreement to Verdantas, Inc., following Verdantas’ acquisition of Leighton; and Authorize the City Manager to execute the amendment.
PRIOR ACTION/VOTE
On June 20, 2023, City Council authorized entering into an on-call geotechnical consulting services agreement with Leighton Consulting, Inc. (Vote: 4-0).
CITY COUNCIL GOAL
Maintain a high performing organization that values fiscal sustainability, transparency, accountability and organizational efficiency.
DISCUSSION
Leighton Consulting, Inc. (Leighton) is a geotechnical engineering firm that was awarded an on-call agreement with the City of Murrieta (City) in June 2023. The agreement has a three-year term and may be renewed for up to three additional one-year terms, subject to satisfactory performance and at the discretion of the City Manager.
Leighton recently notified the City that it was acquired by Verdantas, Inc. (Verdantas) in March 2024. As a result of this acquisition, an assignment of the agreement from Leighton to Verdantas is required. The attached First Amendment to the Agreement will address the assignment which transfers all rights and obligations under the existing agreement from Leighton to Verdantas, and Verdantas has accepted these obligations.
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Agenda Item No. 19.
FISCAL IMPACT
There is no fiscal impact associated with the recommended action. All services will be provided through budget established in the operating and Capital Improvement Plan (CIP) budgets.
ATTACHMENTS
1. First Amendment to the Agreement with Leighton Consulting, Inc.
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01375.0006 2023986.1
FIRST AMENDMENT TO AGREEMENT BETWEEN CITY OF MURRIETA
AND VERDANTAS, INC.
This First Amendment (“First Amendment”) is made and entered into this 19th day of August 2025, by and between the City of Murrieta, a municipal corporation (“City”), and Leighton Consulting, Inc., a California Corporation (“Consultant”) which has been acquired by and is now known as Verdantas, Inc., a Delaware Corporation (“Assignee”).
R E C I T A L S
WHEREAS, on or about June 20, 2023, City and Consultant entered into the “Agreement Between the City of Murrieta and Leighton Consulting, Inc.” (“Agreement”), pursuant to which Consultant agreed to provide construction inspection services; and
WHEREAS, pursuant to Section 15 of the Agreement, Consultant seeks the City’s written approval of the transfer and assignment of Consultant’s rights and obligations under the Agreement to Assignee; and
WHEREAS, at this time, City desires to consent to the transfer and assignment of Consultant’s rights and obligations under the Agreement to Assignee pursuant to this First Amendment;
A G R E E M E N T
The recitals contained above are incorporated herein by reference and the Agreement is hereby amended as follows:
1. Prior to the date of consideration of this First Amendment by the City, Assignee shall provide the City with updated proof of all required insurance and endorsements as set forth in Article 10 of the Agreement.
2. As of the date of this First Amendment, Section 2.3 will be amended to read as follows:
“2.3 This Agreement shall be administered on behalf of the parties hereto, and any notice desired or required to be sent to a party hereunder shall be addressed, as follows:
For CITY: Jeffrey J. Hitch, City Engineer
Address: City of Murrieta
One Town Square
Murrieta, CA 92562
Phone: (951) 461-6076
Facsimile: (951) 461-6049
For CONSULTANT: Kristin Williams, West Area Leader
CONSULTANT: Verdantas, Inc.
Address: 2600 Michelson Dr, Suite 400
610
01375.0006 2023986.1
Irvine, CA 92612
Phone: 949-681-4273
Facsimile: N/A
3. As of the date of this First Amendment, a new Section 15.1 is added to the Agreement to read as follows:
"Approval of Assignment. As of August 19, 2025, Verdantas, Inc., a Delaware Corporation (“Assignee”) agrees to accept the rights and responsibilities of Consultant in accordance with the terms of this Agreement and City has agreed to consent to the transfer and assignment of Consultant’s rights and obligations under the Agreement to Assignee. All references in the Agreement to ‘Consultant’ shall refer to 'Assignee' as of August 19, 2025."
4. Except as expressly provided herein, all other terms and conditions of the Agreement shall remain in full force and effect.
IN WITNESS WHEREOF, the parties hereto executed this First Amendment to be effective as of the date first written above.
CITY:
City of Murrieta, a municipal corporation
By: ______________________________
Justin Clifton, City Manager
ATTEST:
___________________________
Cristal McDonald, City Clerk
APPROVED AS TO FORM:
____________________________
Paul Early, City Attorney
CONSULTANT:
Leighton, Inc., a California Corporation
By: ______________________________
611
01375.0006 2023986.1
Sudhir Damle, Chief Executive Officer
Mailing address:
41715 Enterprise Circle N.
Suite 103
Temecula, CA 92590
ASSIGNEE:
Verdantas, Inc., a Delaware Corporation
By:
_____________________________
Name: Kristen Williams
Title: Secretary
By:
_____________________________
Name: Nikhila Srirangpatna
Title: Vice President
Mailing address:
2600 Michelson Dr
Suite 400
Irvine, CA 92612
612
CITY OF MURRIETA
City Council Meeting Agenda
Report
8/19/2025
Agenda Item No. 20.
TO: HONORABLE MAYOR AND MEMBERS OF THE CITY COUNCIL
FROM: Bob Moehling, Public Works Director
PREPARED BY: Garrett Strang, Civil Engineering Assistant SUBJECT:
Construction Contract for the Los Alamos Road, Antelope Road, and Elm Street Pavement Rehabilitation Project, CIP No. 13047
RECOMMENDATION
Award the Construction Contract for the Los Alamos Road, Antelope Road, and Elm Street Pavement Rehabilitation Project, Capital Improvement Plan No. 13047, to R.J. Noble Company in the amount of $3,377,678.35;
Authorize a 15% construction contingency of $506,651.75; Authorize the City Engineer to approve contract change orders not to exceed 15% of the contract amount; Approve Reimbursement Agreements with Eastern Municipal Water District and Frontier Communications; Amend the Fiscal Year 2025/26 Capital Improvement Plan and Operating Budget to include a revenue and expenditure appropriation of $56,262.50 in Reimbursement Agreement funds (Fund 319) available for use in Capital Improvement Plan No. 13047;
Amend the Fiscal Year 2025/26 Capital Improvement Plan Budget to transfer $2,870,565.95 of Road Repair and Accountability Act of 2017 funds (Fund 307) and $543,883.07 of Gas Tax funds (Fund 306) from Capital Improvement Plan No. 08043 and into Capital Improvement Plan No. 13047; Amend the Fiscal Year 2025/26 Capital Improvement Plan Budget and appropriate $350,000 from the Road Repair and Accountability Act of 2017 (Fund 307) unassigned Fund Balance into Capital Improvement Plan No. 13047; and
Authorize the Mayor to execute the Construction Contract and the two Reimbursement Agreements.
PRIOR ACTION/VOTE
On April 2, 2024, the City Council accepted the CalRecycle Grant No. TRP16-23-0020 award in the amount of $145,720 from the State of California Environmental Protection Agency, ratified the execution of the agreement, amended the Fiscal Year 2023/24 Capital Improvement Plan budget to appropriate an expenditure CITY OF MURRIETA Printed on 8/14/2025Page 1 of 4
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Agenda Item No. 20.
agreement, amended the Fiscal Year 2023/24 Capital Improvement Plan budget to appropriate an expenditure budget into Capital Improvement Plan Project No. 13047, and amended the Fiscal Year 2023/24 operating budget to appropriate a grant revenue budget (Vote 5-0).
On June 3, 2025, the City Council approved Resolution No. 25-4836, approving the Capital Improvement Plan Budget for Fiscal Year 2025/26, and the Fiscal Years 2025/26 to 2029/30 Capital Improvement Plan, which included the Los Alamos Road, Antelope Road, and Elm Street Pavement Rehabilitation Project, Capital Improvement Plan No. 13047 (Vote 5-0).
CITY COUNCIL GOAL
Plan, program and create infrastructure development.
BACKGROUND
The Los Alamos Road, Antelope Road, and Elm Street Pavement Rehabilitation Project, Capital Improvement Plan (CIP) No. 13047, will rehabilitate Los Alamos Road from Lincoln Avenue to Whitewood Road (approximately 1.1 miles), Antelope Road from Mapleton Avenue to Scott Road (approximately 0.7 miles), and Elm Street from Jefferson Avenue to Adams Avenue (approximately 0.35 miles). Improvements will consist of removal and replacement of failing pavement structural sections, grinding/cold milling of existing asphalt, placement of asphalt rubber hot mix overlay, asphalt rubber aggregate membrane pavement interlayer, asphalt concrete dike, cold central plant recycling, utility adjustments, subgrade base treatment, geotextile reinforcement, detector loop replacement and modifications, signing and striping, and removal and replacement of concrete curb ramps and other minor concrete improvements. CIP No. 13047 is funded by the Road Repair and Accountability Act of 2017 (SB-1), Rubberized Pavement Grant Program (CalRecycle), and Utility Reimbursement Agreements.
Utility Reimbursement Agreements
As part of the pavement rehabilitation process, Eastern Municipal Water District (EMWD) and Frontier Communications (Frontier) manholes need to be adjusted to accommodate construction. Staff has negotiated Reimbursement Agreements with EMWD and Frontier to allow the City’scontractor to adjust each of the utility company’sfacilities during construction and allow for reimbursement to the City for those expenses, up to $56,262.50. A summary of the agreement is as follows:
Reimbursement Agreement Reimbursable Amount
Eastern Municipal Water District $46,862.50
Frontier Communications $9,400.00
Total $56,262.50
Staff recommends establishing a revenue budget for utility company reimbursement funds, accepting funds in the total amount of $56,262.50, and amending the CIP Budget to include appropriation of these funds into CIP No. 13047. At the conclusion of the project, pursuant to the agreements, the City will invoice each of the utility companies for reimbursement of the funds.
Project Bidding and Determination
The City advertised the project on June 24, 2025, and received a total of four construction bids on July 15, 2025. The basis of the bid for determining the low bidder was defined in the specifications as the sum of the CITY OF MURRIETA Printed on 8/14/2025Page 2 of 4
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Agenda Item No. 20.
total Base Bid items and the Additive Bid items. The bid results are as follows:
Bidder Base Bid + Additive Bid Items
1. R.J. Noble Company $3,389,678.35
2. All American Asphalt $3,719,532.90
3. Vance Corporation $3,937,185.91
4. Nationwide Contracting Services $4,990,923.77
Bid items 69 through 73 were advertised as Additive Bid Items in order to allow EMWD, Frontier, and Southern California Edison (SCE) the option to self-perform adjustments to their facilities in lieu of reimbursing the City for the City’scontractor to perform their respective items of work. EMWD and Frontier have elected to have the City’scontractor perform the adjustments of their facilities for Additive Bid Items 69 through 72. Note that the sum of Additive Bid Items 69 through 72 does not match the sum of the Reimbursement Agreements due to contingency costs and estimated bid item values that were established prior to bid opening. SCE has elected to self-perform their own facility adjustments associated with Additive Bid Item 73. This adjustment will reduce the total contract amount to $3,377,678.35. A breakdown of the total contract award amount for the sum of the total Base Bid items and the selected Additive Bid items are as follows:
Bid Item Description Amount
Total Amount Base Bid Items $3,346,728.35
Additive Bid Item 69: Double Adjust Manhole (EMWD) $15,500.00 Additive Bid Item 70: Single Adjust Manhole (EMWD) $8,550.00 Additive Bid Item 71: Double Adjust Manhole (Frontier) $3,100.00 Additive Bid Item 72: Single Adjust Manhole (Frontier) $3,800.00 Additive Bid Item 73: Double Adjust Manhole (SCE) NOT USED Total Contract Award (Base Bid + Selected Additive Bid): $3,377,678.35 The Public Works Engineering Department has reviewed the bids and determined that the item prices are consistent with today’s construction market and recommends that the contract be awarded to the lowest responsible bidder, R.J. Noble Company, in the amount of $3,377,678.35 for the Total Base Bid and Additive Bid Items 69 through 72, plus a 15% contingency of $506,651.75, for a total of $3,884,330.10.
FISCAL IMPACT
The construction contract amount to be awarded is $3,377,678.35, plus an additional 15% contingency of $506,651.75, for a total of $3,884,330.10. Funding will be available in CIP No. 13047 upon approval of the following amendments to the Operating Budget and Capital Improvement Plan Budget for Fiscal Year 2025/26.
Staff recommends:
· Transferring budget/appropriation $2,870,565.95 of SB1 Funds (Fund 307) and $543,883.07 of Gas Tax Funds (Fund 306) from CIP No. 08043 and into CIP No. 13047. · Establishing a budget/appropriation of $350,000 in SB1 (Fund 307) unassigned fund balance into CIP No. 13047.
· Establish a revenue budget and expenditure budget/appropriation of $56,262.50 in Reimbursement Agreement funds (Fund 319) into CIP No. 13047.
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Agenda Item No. 20.
ATTACHMENTS
1. Contract between the City of Murrieta and R.J. Noble Company
2. Proposal from R.J. Noble Company
3. Bid Summary
4. Reimbursement Agreement Between the City and EMWD
5. Reimbursement Agreement Between the City and Frontier
6. Vicinity Map
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CITY OF MURRIETA, DEPARTMENT OF PUBLIC WORKS/ENGINE,ERING
CONTRACT
LOS ALAMOS ROAD, ANTELOPE ROAD, AND ELM STREET
PAW ME NT REHABILITATIO N :
CIP NO. 13047, CITY PROJECT NO.23-478
THIS CONTRACT, made and entered into the day of
between the Citv of Murr
R-.I. NOBI,E COMPANY
ieta, a municipal corporation, hereinafter referred to as ' hereinafter referred
2025,by and
'CITY," and
to as
.CONTRACTOR."
WITNESSETH:
That CITY and CONTRACTOR, for the consideration hereinafter named, mutually agree as follows:
CONTRACT DOCUMENTS. The complete Contract includes all of the Contract Documents, to wit: Notice Inviting Bids, Instructions to Bidders, Proposal, Performance Bond, Labor and Materials Bond, Plans and Special Provisions entitled "Los Alamos Road, Antelope Road and Elm Street Pavement Rehabilitation, CIP No. 13047, City Project No. 23478",Insurance Forms, this Contract, and all modifications and amendments thereto, and the 2015 version ofthe Standard Specifications for Public Works Construction, Parts 1 through 8, with the exception of Part 7, "Street Lighting and Traffic Signal Systems," and the addition of the Department of Transportation, State of California State Standard Specifications, Section 86, "Signals, Lighting and Electrical Systems," and Section 56, "Signs," and the Caltrans 20lE Standard Plans. The 2018 edition of the Standard Specifications for Public Works Construction (Green Book) will control the installation of ARAM. The 2024 edition of the Standard Specifications for Public Works Construction (Green Book) will control the installation and operation of Cold Central Plant Recycling (CCPR) The Los Alamos Road, Antelope Road, and Elm Street Pavement Rehabilitation Plans consist of:
Improvement Plans:
Sheet l: Title Sheet
Sheets 2 - 3: Detail Sheets and Construction Notes
Sheets 4 - 9: Street Rehabilitation Plans
Sheets l0 - 15: Signing & Striping Plans
Traflic Control Plans:
Sheets I - 5: Traf{ic Control Plans for Los Alamos Road (Appendix E) Curb Ramp Exhibits:
Los Alamos Road at Gibraltar/Parkcrest Curb Ramp Replacement (Exhibit A) Antelope Road at Heritage Marketplace Curb Ramp Replacement (Exhibit B) 1 Copies of the Standard Specifications for Public Works Construction are available from the publisher:
Building News, Inc. (BNi)
990 Park Center Drive, Suite E
CoNTRACT C-1 6t21t2025
SlEng\CIPU3-4?8 Los Alamos, Antelope, Cherry. Elm Pavem€nt R€habilitation (CIP 13047)\00-Desrgn Documents\Specifications\Specifications - CIP 13047 Pavement Rehabilitarion Los Alamos Antelope Elm - FINAL Ldocx 617
CITY OF MURRIETA, DEPARTMENT OF PT]BLIC WORKS/ENGINEERING The aforementioned Standard Specifications will control the general provisions, construction materials, construction methods and altemate materials for this Contract except as amended by the Plans and Specifications of this Contract.
In case of conflict between the Standard Specifications for Public Works Construction or State Standard Specifications, and the remaining Contract Documents, the remaining Contract Documents shall take precedence over and be used in lieu of such conflicting portions.
Where the Plans or Specifications describe portions of the work in general terms, but not in complete detail, it is understood that the item is to be fumished and installed completed and in place and that only the best general practice is to be used. Unless otherwise specified, CONTRACTOR shall furnish all labor, materials, tools, equipment, and incidentals. and do all the work involved in executing the Contract.
The Contract Documents are complementary, and what is called for by anyone shall be as binding as if called for by all. Any conflict between this Contract and any other Contract Document shall be resolved in favor of this Contract.
PE OF WORK. CONTRACTOR shall perform the work as shown on the Contract2 Drawings, shall fumish all the labor, materials. necessary tools. expendable equipment. and all utility and aansportation services required for the completion ofthe following project:
LOS ALAMOS ROAD, ANTELOPE ROAD, AND ELM STREET
PAVE M E NT RE IA B I LITAT I O N :
CIP NO. 13047, CITY PROTECT NO. 23-478
All of said work to be performed and materials to be fumished shall be in strict accordance with the Drawings and Specifications and the provisions of the Contract Documents hereinabove enumerated and adopted by CITY.
3. CITY APPROVAL. All labor , materials, tools, equipment. and services shall be fumished and work performed and completed under the direction and supervision and subject to the approval of CITY or its authorized representatives.
4. CONTRACT AMOL,]NT AND SCHEDULE. CITY agrees to pay and Contractor agrees to receive and accept the prices set forth in the proposal as full compensation for fumishing all materials, performing all work, and fulfilling all obligations hereunder. Said compensation shall cover all expenses, losses, damages, and consequences arising out of the nature of the work during its progress or prior to its acceptance, including those for well and faithfully completing the work and the whole thereof in the manner and time specified in the aforesaid contract documents and also including those arising from actions of the elements, unforeseen difficulties or obstructions encountered in the prosecution of the work, suspension or discontinuance of the work, and all other unknowns or risks of any description connected with the work. 6124t2025
vista, cA 92081
(760) 734-1113
www.hnibooks.com
CONTRACT C-2
S:\Eng\CIPU3-478 tas AlaInos, Antelope, Cherry, Elm Pavement Rehabilitation (ClP 13047 )\oo-Design Documents\Specifications\Sp€cifi.rtions - CtP I 3047 Pavement Rehabilitation [.os Alamos Anlelope Elm - FINAL I .docx 618
CITY OF MURRIETA, DEPARTMENT OF PUBLIC WORKS/ENGINEERING The work to be performed shall be completed within seventy-five (75) working days after execution of Contract and Notice to Proceed has been issued, commencing upon the date stated in the Notice to Proceed by CITY. Construction shall not commence until bonds and insurance are approved by CITY.
E RDERS All change orders shall be approved by the City Council, except that the City Manager or his/her designee is hereby authorized by the City Council to make, by written order, changes or additions to the work in an amount not to exceed fifteen (15) percent of this Contract amount and the City Manager or his designee shalt notif City Council in a public meeting if changes or additions to the work exceed ten (10) percent of this Contract amount.
6. PAYN4ENTS/ACCEPTANCE OF WORK. The text of Subsection 9-3.2 of the Standard Specifications for Public Works Construction is hereby deleted and replaced with the following:
The closure date for the purpose of making partial progress payments will be the last day of each month. CONTRACTOR shall prepare the approximate measurement of the work performed through the closure date and submit it to CITY for approval by the tenth (lOth) day of the following month. Payments will be withheld pending receipt of any outstanding reports required by the Contract Documents. A full five percent (5%) retention will be deducted from all progress payments. Partial payments on the Contract price shall not be considered as an acceptance of any part ofthe work.
Upon completion of the work, CONTRACTOR shall so notifu Engineer, in writing, submit satisfactory evidence of payment for equipment, materials and labor, submit 'CONTRACTOR'S AFFIDAVIT." Upon receipt of the notification, Engineer shall promptly, by personal inspection, determine the actual status of the work in accordance with the terms of the Contract. If he finds materials, equipment, or workmanship that do not meet the terms of the Contract, he shall prepare a preliminary punch list of such items and submit it to CONTRACTOR. Final determination of acceptability shall be made by CITY. Upon acceptance of the work, CITY shall file a Notice of Completion. The conditions of the guarantee shall commence on the date that CITY files a Notice of Completion. CITY shalt make final payment to CONTRACTOR in the manner provided by law following the expiration of thirty-five (35) days after filing the Notice of Completion.
The final payment shall include the entire sum found to be due hereunder after deducting all previous payments and such other la*f,il amounts as the terms ofthis Contract describe.
7. LIOUIDATED DAMAGES: EXTENSION OF TIME. In accordance with Govemment Code Section 53069.85, CONTRACTOR agrees to forfeit and pay to CITY the sum ofone thousand dollan ($1,000) per day for each calendar day completion is delayed beyond the time allowed pursuant to paragraph 4 of this Contract. Such sum shall be deducted from any payments due to or to become due to CONTRACTOR. CONTRACTOR will be granted an extension of time and will not be assessed liquidated damages for unforeseeable delays beyond the control of and without the fault or negligence of CONTRACTOR, including delays caused by CITY. CONTRACTOR is required to promptly notiry CITY of any such delay.
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Sr\EngnCIP\23-478 Irs Alamos. Anlelope, Cherr-v, Elm Pavement Rehabilitalion (ClP I 3047 )\00-Design Documents\Specifications\Specific-ations - CIP 13047 Pavement RelEbilitation Los Alamos Antelope Elm - FINAL l.docx
5.C
619
CITY OF MURRIETA, DEPARTMENT OF PUBLIC WORKS/ENGINEERING
8. WAIVER OF CLAIMS. Unless a shorter time is specified elsewhere in this Contract, on or before making final request for payment under paragraph 6 above. CONTRACTOR shall submit to CITY, in writing, all claims for compensation under or arising out of this Contract; the acceptance by CONTRACTOR ofthe final payment shall constitute a waiver of all claims against CITY under or arising out of this Contract except those previously made in writing and request for payment. CONTRACTOR shall be required to execute an affidavit, release, and indemnity agreement with each claim for payment.
9. PREVAILING WAGES. Pursuant to provisions ofSection 1773 ofthe Labor Code ofthe State of Califomia. the City Council has obtained the general prevailing rate ofper diem wages and the general rate for holiday and overtime work in this locality for each craft, classification, or type of workman needed to execute this Contract, from Director of the Department of Industrial Relations. These rates are on file with the City Clerk. Copies may be obtained at cost at the City Clerk's office of Murrieta.
CONTRACTOR shall post a copy of such rates at the job site and shall pay the adopted prevailing wage rates as a minimum. CONTRACTOR shall comply with the provisions of Sections 1771, 1773.8, 1774, 1775, 1776, 1777.5, 1777.6, 1813, and I 8 I 5 of the Labor Code.
Pursuant to the provisions of 1775 of the Labor Code, CONTRACTOR shall forfeit to CITY, as a penalty, the sum of fifty dollars ($50.00) for each calendar day, or portion thereof, for each laborer. worker, or mechanic employed, paid less than the stipulated prevailing rates for any work done under this Contract, by him or by any subcontractor under him. in violation ofthe provisions ofthe Contract.
10. woRKE N LIABILITY INSURANCE. CONTRACTOR, by
executing this Agreement, hereby certifies:
"l am aware of the provision of Section 3700 of the Labor Code that requires every employer to be insured against liability for Workers' Compensation or undertake self- insurance in accordance with the provisions of that Code. and I will comply with such provisions before commencing the performance ofthe work ofthis Contract." II. TIMEOFTHE ESSENCE. Time is of the essence in this Contract.
12. INDEMNI ICATION. All work covered by this Contract done at the site of construction or in preparing or delivering materials to the site shall be at the risk of CONTRACTOR alone. CONTRACTOR agrees to save, indemnift, hold harmless, and defend CITY, its oflicers. employees, and agents against any and all liability. injuries, or death of persons (CONTRACTOR's employees included) and damage to Property, arising directly or indirectly out of the obligations herein undertaken or out ofthe oPerations conducted by CONTRACTOR, save and except claims or litigations arising through the sole active negligence or sole willful misconduct of CITY.
CONTRACTOR ,S INDEPENDENT INVESTIGATION. No plea of ignorance of conditions that exist or that may hereafter exist or of conditions of difficulties that may be encountered in the execution ofthe work under this Contract, as a result offailure to make ooNTRACT c-4 612412025
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13. 620
CITY OF MURRIETA, DEPARTMENT OF PUBLIC WORKS/ENGINEERING the necessary independent examinations and investigations, and no plea of reliance on initial investigations or reports prepared by CITY for purposes olleuing this Contract out to bid will be accepted as an excuse for any failure or omission on the part of CONTRACTOR to fulfilt in every detail all requirements of this Contract. Nor will such reasons be accepted as a basis for any claims whatsoever for extra compensation or for an extension of time.
14. GRATUITIES. CONTRACTOR warrants that neither it nor any of its employees, agents, or representatives has offered or given any gratuities or promises to CITY's employees, agents, or representatives with a view toward securing this Conract or securing favorable treatment with respect thereto.
15. CONFLICT OF INTEREST CONTRACTOR warrants that he has no blood or marriage relationship, and that he is not in any way associated with any City officer or employee, or any architect, engineer, or other preparer of the Drawings and Specifications for this project.
CONTRACTOR further warrants that no person in his employ has been employed by CITY within one (l) year of the date of Notice Inviting Bids.
16. CONTRACTOR'S AFFIDAVIT. After completion of the work contemplated by this Contract, CONTRACTOR shall file with the City Manager his affidavit stating that all workmen and persons employed, all firms supplying materials, and all subcontractors upon the project have been paid in fult, and that there are no claims outstanding against the project for either labor or materials, except certain items, if any, to be set forth in an affidavit covering disputed claims or items in connection with a Stop Notice that has been filed under the provisions of the laws of the State of Califomia. t7. s T F CONTRACTOR
Comorations:
The signature must contain the name ofthe corporation, must be signed by the President and Secretary or Assistant Secretary, and the corporate seal must be affixed. Other persons may sign for the corporation in lieu ofthe above ifa certified copy ofa resolution ofthe corporate board ofdirectors so authorizing them to do so is on file in the City Clerk's office.
PartnershiDs:
Names of all persons comprising the partnership or co-partnership must be stated. Bid must be signed by all partners comprising the partnership unless proof in the form of a certified copy ofa certificate of pannership acknowledging signer to be a general partner is presented to the City Cterk, in which case the general partner may sign.
Bids submitted as joint ventures must so state and be signed by each joint venturer Individuals:
CONTRACT C.5
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Joint Ventures:
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CITY OF MURRIETA, DEPARTMENT OF PTIBLIC WORKS/ENGINEERING Bids submitted by individuals must be signed by the bidder, unless an up-to-date power of attomey is on file in the City Clerk's office, in which case said person may sign for the individual.
The above rules also apply in the case of the use ofa fictitious firm name. In addition, however, where the fictitious name is used, it must be so indicated in the signature.
18. SUBSTITUTED SECURITY. In accordance with Section 22300 of the Public Contracts Code, CONTRACTOR may substitute securities for any monies withheld by CITY to ensure performance under the Contracl. At the request and expense of CONTRACTOR, securities equivalent to the amount withheld shall be deposited with CITY or with a State or Federally chartered bank or an escrow agent who shall pay such monies to CONTRACTOR upon notification by CITY of CONTRACTOR's satisfactory completion of the Contract. The type of securities deposited and the method of release shall be approved by the City Attomey's office.
19. RESOLUTION OF CLAIMS. In the event of any dispute or controversy with the City over any matter whatsoever. the Contractor shall not cause any delay or cessation in or ofwork, but shall proceed with the performance ofthe work in dispute. The Contractor shall retain any and all rights provided that pertain to the resolution of disputes and protests between the Parties. The disputed work will be categorized as an "unresolved dispute" and payment, if any, shall be as later determined as set forth below. The Contractor shall keep accurate, detailed records of all disputed work, claims and other disputed matters.
Section 20104 et seq. of the Catifornia Public Contract Code prescribes a process utilizing informal conferences, non-binding judicial-supervised mediation, and judicial arbitration to resolve disputes on construction claims of $375,000 or less. Section 9204 of the Public Contract Code prescribes a process for negotiation and mediation to resolve disputes on construction claims. The intent of this Section is to implement Sections 20104 et seq. and Section 9204 ofthe Califomia Public Contract Code. This Section shall be construed to be consistent with said statutes.
For purposes ofthese procedures, "claim" means a separate demand by the Contractor, after the City has denied Contractor's timely and duly made request for payment for extra work and/or a time extension. for (A) a time extension, (B) payment of money or damages arising from work done by or on behalf of the Contractor pursuant to the Contract and payment ofwhich is not otherwise expressly provided for or the Contractor is not otherwise entitled to, or (C) an amount the payment of which is disputed by the City.
The following requirements apply to all claims to which this section applies:
(a) Claim Submittal. The claim shall be in writing and include the documents necessary to substantiate the claim. Claims govemed by this procedure must be filed on or before the date of final payment. Nothing in this section is intended to extend the time limit or supersede notice requirements otherwise provided in the Contract for the filing of CoNTRACT C€ 6t24t2025
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CITY OF MURRIETA, DEPARTMENT OF PUBLIC WORKS/ENGINEERING claims, including all requirements pertaining to compensation or payment for extra work, disputed work, and/or changed conditions. Failure to follow such contractual requirements shall bar any claims or subsequent lawsuits for compensation or payment thereon.
(b) Supporting Documentation. The Contractor shall submit all claims in the following format:
(i) Summary of the claim, including references to the specific Contract Document provisions upon which the claim is based.
(ii) List of documents relating to claim: (a) Specifications, (b) Drawings, (c) Clarifications (Requests for Information), (d) Schedules, and (e) Other. (iii) Chronology of events and correspondence related to the claim (iv) Statement of grounds for the claim.
(v) Analysis of the claim's cost, if any.
(vi) Analysis of the claim's time/schedule impact, if any (c) City's Response. Upon receipt ofa claim pursuant to this section, City shall conduct a reasonable review ofthe claim and, within a period not to exceed 45 calendar days, shall provide the Contractor a written statement identifring what ponion of the claim is disputed and what portion is undisputed. Any payment due on an undisputed portion of the claim will be processed and made within 60 calendar days after the City issues its written statement.
(i) Ifthe City needs approval from the City Council to provide the Contractor a written statement identifuing the disputed portion and the undisputed portion ofthe claim, and the City Council does not meet within the 45 calendar days orwithin the mutually agreed to extension oftime following receipt ofa claim sent by registered mail or certified mail, retum receipt requested, the City shall have up to three days following the next duly publicly noticed meeting of the City Council after the 45-day period, or extension, expires to provide the Contractor a written statement identifring the disputed portion and the undisputed ponion.
(ii) Within 30 calendar days of receipt of a claim. the City may request in wdting additional documentation supporting the claim or relating to defenses or claims the City may have against the Contractor. Ifadditional information is thereafter required, it shall be requested and provided pursuant to this subdivision, upon mutual Contract of City and the Contractor.
(iii) The City's written response to the claim, as further documented, shall be submitted to the Contractor within 30 calendar days (if the claim is less than $50,000, within 15 calendar days) a{ter receipt of the further documentation, or within a period of time no CONTRACT C-7
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CITY OF MURRIETA, DEPARTMENT OF PUBLIC WORKS/ENGINEERING greater than that taken by the Contractor in producing the additional information or requested documentation, whichever is greater.
(e) Mediation. Within l0 business days following the conclusion of the meet and confer conference. if the claim or any portion of the claim remains in dispute, the City shatl provide the Contractor a written statement identifuing the portion of the claim that remains in dispute and the portion that is undisputed. Any payment due on an undisputed portion ofthe claim shall be processed and made within 60 calendar days after the City issues its written statement. Any disputed portion of the claim, as identified by the Contractor in writing, shall be submitted to nonbinding mediation, with the City and the Contractor sharing the associated costs equally. The City and Contractor shall mutually agree to a mediator within l0 business days after the disputed portion ofthe claim has been identified in writing, unless the Parties agree to select a mediator at a later time. (i) If the Parties cannot agree upon a mediator. each Party shall select a mediator and those mediators shall select a qualified neutral third Party to mediate with regard to the disputed portion of the claim. Each Parry shall bear the fees and costs charged by its respective mediator in connection with the selection of the neutral mediator. (ii) For purposes ofthis section, mediation includes any nonbinding process, including, but not limited to, neutral evaluation or a dispute review board. in which an independent third party or board assists the Parties in dispute resolution through negotiation or by issuance ofan evaluation. Any mediation utilized shall conform to the timeframes in this section.
(iii) Unless otherwise agreed to by the City and the contractor in writing, the mediation conducted pursuant to this section shall excuse any further obligation under Public Contract Code Section 20104.4 to mediate after litigation has been commenced. (f) City's Responses. The City's failure to respond to a claim from the Contractor within the time periods described in this section or to otherwise meet the time requirements of this section shall result in the claim being deemed rejected in its entirety. A claim that is denied by reason of the City's failure to have responded to a claim, or its failure to otherwise meet the time requirements of this section, shall not constitute an adverse finding with regard to the merits ofthe claim or the responsibility of qualifications of the Contractor. City's failure to respond shall not waive City's rights to any subsequent procedures for the resolution ofdisputed claims.
CoNTRACT C{ 6124t2025
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(iv) All unresolved claims shall be consideredjointly in a single mediation, unless a new unrelated claim arises after mediation is completed.
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CITY OF MURRIETA, DEPARTMENT OF PUBLIC WORKS/ENGINEERING (g) Govemment Code Claims. If following the mediation, the claim or any portion remains in dispute, the Contractor must comply with the claim procedures set forth in Govemment Code section 900 et seq. prior to filing any lawsuit against the City. Such Govemment Code claims and any subsequent lawsuit based upon the Govemment Code claims shall be limited to those matters that remain unresolved after all procedures pertaining to extra work, disputed work, construction claims, and/or changed conditions, including any required mediation, have been followed by Contractor. If no such Govemment Code claim is submitted, or if the prerequisite contractual requirements are not satisfied, no action against the City may be filed. A Govemment Code claim must be filed no earlier than the date that Contractor completes all contractual prerequisites to filing a Govemment Code claim, including any required mediation. A Govemment Code claim shall be inclusive of all unresolved claims unless a new unrelated claim arises after the Govemment Code claim is submitted. For purposes of Govemment Code section 900 et seq., the running of the period of time within which a claim must be filed shall be tolled from the time the Contractor submits his or her written claim to the City until the time the claim is denied. including any period of time utilized by the meet and confer conference or mediation that does not result in a complete resolutions of all claims.
(h) Civil Actions for Claims of $375,000 or Less. The following procedures are established for all civil actions filed to resolve claims totaling $375,000 or less:
(i) Within 60 calendar days, but no earlier than 30 calendar days, following the filing or responsive pleadings, the court shall submit the matter to non-binding mediation unless waived by mutual stipulation of both Parties or unless mediation was held prior to commencement ofthe action in accordance with Public Contract Code section 9204 and the procedures in this Section. The mediation process shall provide for the selection within l5 calendar days by both Parties ofa disinterested third person as mediator. shall be commenced within 30 calendar days of the submittal, and shall be concluded within l5 calendar days from the commencement of the mediation unless a time requirement is extended upon a good cause showing to the court or by stipulation ofboth Parties. If the Parties fail to select a mediator within the l5day period, either Party may petition the court to appoint the mediator.
(iD Ifthe matter remains in dispute, the case shall be submitted to judicial arbitration pursuant to Chapter 2.5 (commencing with Section I l4l.l0) of Title 3 of Part 3 of the Code of Civil Procedure. notwithstanding Section ll4l.ll of that code. The Civil Discovery Act (Title 4 (commencing with Section 2016.010) of Part 4 of the Code of Civil Procedure) shall apply to any proceeding brought under this subdivision consistent with the rules pertaining to judicial arbitration.
(iii) Upon stipulation of the Parties, arbitrators appointed for these purposes shall be experienced in construction law, and, upon stipulation of the Parties, mediators and arbitrators shall be paid necessary and reasonable hourly rates ofpay not to exceed their customary rate, and such fees and expenses shall be paid equally by the Parties, except in the case of arbitration where the arbitrator, for good cause, determines a different division.
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CITY OF MURRIETA, DEPARTMENT OF PTIBLIC WORKS/ENGINEERING (iv) In addition to Chapter 2.5 (commencing with Section I l4l .10) of Title 3 of Part 3 ofthe Code of Civil Procedure, any Party who after receiving an arbitration award requests a trial de novo but does not obtain a more favorablejudgment shall, in addition to payment ofcosts and fees under that chapter. pay the attomey's fees ofthe other Party arising out of the trial de novo,
20 NOTICE TO CITY OF LABOR DISPUTES. Whenever CONTRACTOR has knowledge that any actual or potential labor dispute is delaying or threatens to delay the timely performance of the Contract, CONTRACTOR shall immediately give notice thereof, including all relevant information with respect thereto, to CITY.
21. BOOKS AND RECORDS. CONTRACTOR's books, records, and plans or such part thereofas may be engaged in the performance ofthis Contract, shall at all reasonable times be subject to inspection and audit by any authorized representative of CITY.
22. UTILITY LOCATION. CITY acknowledges its responsibilities with respect to locating utility facilities pursuant to Califomia Govemment Code Section 4215.
23. REGIONAL NOTIFICATION CENTERS. CONTRACTOR agrees to contact the appropriate regional notification center in accordance with Government Code Section 4216.2.
24. TRENCH PROTECTION AND EXCAVATION. CONTRACTOR shall submit its detailed plan for worker protection during the excavation oftrenches required by the scope ofthe work in accordance with Labor Code Section 6705.
A. CONTRACTOR shall, without disturbing the condition, notifu CITY, in writing, as soon as CONTRACTOR, or any of CONTRACTOR's subcontractors, agents, or employees have knowledge and reporting is possible, ofthe discovery of any ofthe following conditions:
(l) The presence of any material that CONTRACTOR believes is hazardous waste, as defined in Section 251l7 ofthe Health and Safety Code;
(2) Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or
(3 ) Unknown physical conditions at the site of any unusual nature, different materially for those ordinarily encountered and generally recognized as inherent in work of the character provided for in this Contract.
B. Pending a determination by CITY of appropriate action to be taken, CONTRACTOR shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person.
C. CITY shall promptly investigate the reported conditions. If CITY, through and in the exercise of its sole discretion, determines that the conditions do materially differ or do involve hazardous waste, and will cause a decrease or increase in CONTRACTOR's CONTRACT C.lO
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CITY OF MURRIETA, DEPARTMENT OF PT]BLIC WORKS/ENGINEERING cost of, or time required for, performance of any part ofthe work, then CITY shall issue a change order.
D. In the event of a dispute between CITY and CONTRACTOR as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in CONTRACTOR's cost of, or time required for. performance of any part of the work, CONTRACTOR shall not be excused from any scheduled completion date, and shall proceed with all work to be performed under the contract. CONTRACTOR shall retain any and all rights that pe(ain to the resolution of disputes and protests between the parties.
25. INSPECTION. The work shall be subject to inspection and testing by CITY and its authorized representatives during manufacture and construction and all other times and places, including, without limitation, the plans of CONTRACTOR and any of its suppliers. CONTRACTOR shall provide all reasonable facilities and assistance for the safety and convenience of inspectors. All inspections and tests shall be performed in such manner as to not unduly delay the work. The work shall be subject to final inspection and acceptance notwithstanding any payments or other prior inspections.
Such final inspection shall be made within a reasonable time after completion of the work.
26. DISCRIMINATI . CONTRACTOR represents that it has not. and agrees that it will not, discriminate in its employment practices on the basis ofrace, creed. religion, national origin, color, sex, age, or handicap.
27. GOVERNING LAW. This Contract and any dispute arising hereunder shall be govemed by the law of the State of Califomia.
28. WRITTEN NOTICE. Any wriuen notice required to be given in any part ofthe Contract Documents shall be perlormed by depositing the same in the U.S. Mai[. postage prepaid, directed to the address of CONTRACTOR as set forth in the Contract Documents, and to CITY addressed as follows:
Robert K. Moehling, P.E.
Director of Public Works
City of Murrieta
I Town Square
Murrieta, C A 92562
CONTRACT G11
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CITY OF MURRIETA, DEPARTMENT OF PUBLIC WORKS/ENGINEERING IN WITNESS WHEREOF, the parties hereto have caused this Contract to be executed on the date first above written.
DATED: o7ll5/2025 CoNTRACT0R:
By, X
Print or type NAME
VICE PRESIDENT
Print or type TITLE
714-637-t550
Phone Number
By:X
JENNIF M. VEGA
Print or type NAME
SECRETARY
Print or type TITLE
714-637-1550
Phone Number
DATED: CITYOFMURRIETA
By'-
APPROVED AS TO FORM:
Tiffany Israel, City Anomey
ATTEST:
Cristal McDonald. City Clerk
CONTRACT C-12
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STEVEN t.rdNo&A
628
629
Anotary public or other officer completing this certificate verifies only the identity of the individualwho signed the documenl to $rhich this certiticate is allached, and not the truthlulness, accuracy, or validity ofthat document.
CALIFONTiA ACKNOWLEDGTIENT CIVIL CODE 5 1189
State of California
ORANGECounty of
on
0711512025
before me, J. DEIONGH, NOTARY PUBLIC
Here lnserl Nome ond Title of the OfficerDote
JENNIFER M. VEGA
personally appeared
Nome(s) of Signer(s)
who proved to me on the basis of satisfactory evidence to be the person({ whose name{'f is&e subscribed to the within instrument and acknowledged to me that [5/she,ltfiCy executed the same in fri6/her/ttleiD( authorized capacity(i€E), and that by h*rherdfisixsignature(4 on the instrument the person(* or the entity upon behalf of which the persontsi acted, executed the instrument.
I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.J. DEIONGH
Notary Plbl,c . Glifornia
0r.nge Count,
Commirsion + ?458114
; WITNESS my hand and official seal
rlv Comm. Expires 0(t 2E. 2027
Plqce Notory Seol ond/or Stomp Above
Signature
oturc of Notory Public
OPTIONAL
Completing this informotion con detet olterotion of the document or froudulent reottochment of this fom to on unintended document.
Desc.iption of Attached Document
Title or Type of Document:
Document Date Number of Paoes:
Signe(s) Other Than Named Above:
Capacity(iesl Claimed by Signer(s)
O Corporate Officer - Title(s)
EI Partner - o Limited tr General
o lndividual El Attorney in Fact
El Trustee o Guardian or Conservator
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Signer is Representing
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o lndividual tr Attorney in Fact
El Trustee El Guardian or Conservator
f] Other:
02019 National Notary Association
Signer is Representing
Signer's Name:
x
630
A notary public or other oflicer completing this certilicate verifiesonly the identity ol the indMdualryho signed the document to which this certificate is anached, and not the truthfulness, accuracy, or validity of that document.
CAUFONNiA ACf,NOWLEDGMETT CIVIL CODE 5 II89
)
State of California
County of
071t512025
On before me, I. DEIONGH, NOTARY PUBLIC
Dote Here lnsetT Nome ond Title of the Offrcer
STEVEN L. MENT]OZA
Personally appeared
Nome6) of Signe(q
who proved to me on the basis of satisfactory evidence to be the person6) whose name(O isAlb subscribed to the within instrument and acknowledged to me that her$HEmy executed the same in hisrBrotdx authorized capacityf,d3t, and that by hislHgUlh[* signatu,e6] on the instrument the personF), or the entity upon behalf o, which the person6) acled, executed the inslrumenl.
J. DEIONGH
Not ry P!bii(. Califorfli.
0nnge Counc/
Cofimhllonr246r!1.
y Colnm. Erpire. Oct 28. 2027
Ploce Notory Seol ond/or Storr'p Above
I certify under PENALTY OF PERJURY under the
laws of the State of California that the foregoing
paragraph is true and correct.
WTNESS my h6nd and official seal.
I
of Notory Public
OPTIONAL
Completing this informotion con deter olterotion of the document or froudulent reottochment of this fom to on unintended document.
Dc3crlption of Attach€d Document
Title or Type of Document:
Document Oate Number ofPages:_
Signe(s) Other Than Named Above:
Csplclty(l6l Clllmed by Signer(s,
Signer's Name
tr Corporate Officer - Title(s):
tr Partner - tr Limited tr General
tr lndividual o Attorney in Fact
tr Trustee tr Guardian or Conservator
Signer's Name:
o Corporate Officer - Title(s):
tr Partner - O Limited tr General
tr lndividual tr Attorney in Fact
tr Trustee 0 Guardian or Conserystor
o Other o Other:
02019 National Notary Association
ORANGE
Signature
SignerisRepresenting:-SignerisRepresenting:-
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CITY OF MURRIETA, DEPARTMENT OF PUBLIC WORKS/ENGINEERING
PROPOSAL
***The entirety of this Proposal Section shall be completed, scanned, and submitted online with the electronic proposal in the PlanetBids Vendor Portal as identified in the Instructions to Bidders. The original, hardcopy ofthis proposal shall be submitted to the City Projcct Manager within three (3) days of the Bid Opening.***
TO THE CITY CLERK OF MURRIETA, CALIFORNIA:
BIDDER (Firnr Name) R.l. NOBLE COMPANY
The undersigned hereby proposes and agrees to furnish any and all materials, labor. and services for the following:
LOS ALAMOS ROAD, ANTELOPE ROA-D, AND ELM STREET
PAVE MENT REIUB ILITATIO N :
CIP NO. 13047, CITY PROJECT NO. 23-478
All in accordance with the City's Notice Inviting Bids. hereby proposes to fumish all materials. equipment. tools. labor. and incidentals required for the above-stated project as set forth in the Plans.