1. CALL MEETING TO ORDER
*Note: All City Council memberships are reflected in their City Council titles.
2. ROLL CALL
MAYOR BETTENCOURT, MAYOR PRO TEM ALARC
Ó
N, COUNCILMEMBERS
BISHOP, LOA, OHLSEN
3. PLEDGE OF ALLEGIANCE AND MOMENT OF SILENCE
4. PRESENTATIONS
4.1 Announcement and introduction by City Manager of Captain Josh Bardon, Los Angeles County Sheriff's Department – Palmdale Station.
4.2 Presentation of Proclamations declaring and celebrating September 15 - October 15 as Hispanic Heritage Month.
4.3 Presentation of a Proclamation declaring September as Childhood Cancer Awareness Month.
4.4 Presentation of a Proclamation declaring October as Breast Cancer Awareness Month.
CITY COUNCIL MEETING
SUCCESSOR AGENCY
CITY COUNCIL CHAMBERS
38300 SIERRA HIGHWAY
SUITE B
PALMDALE, CA 93550
WEDNESDAY, OCTOBER
4, 2023
5:00 PM
www.cityofpalmdale.org
WELCOME
City Council
Wednesday, October
4, 2023
4.5 Presentation of a Proclamation declaring October 8 - 14, 2023 as Code Enforcement Officer Week.
4.6 Presentation on #FightFentanylAV Campaign.
5. WAIVER OF FULL READING OF RESOLUTION(S) and ORDINANCE(S) Staff Recommendation: Move to waive full reading of the Resolution (s) and/or Ordinance(s) to be considered and voted on at this meeting. (Voice Vote - Requires a majority to waive.)
6. PUBLIC COMMENT RULES:
“(California Government Code Section 54954.3).
(a) Every agenda for regular meetings shall provide an opportunity for members of the public to directly address the legislative body on any item of interest to the public, before or during the legislative body’s consideration of the item, that is within the subject matter jurisdiction of the legislative body, provided that no action shall be taken on any item not appearing on the agenda unless the action is otherwise authorized by subdivision (b) of Section 54954.2 [section omitted].
(b) (1) The legislative body of a local agency may adopt reasonable regulations to ensure that the intent of the subdivision (a) is carried out, including, but not limited to, regulations limiting the total amount of time allocated for public testimony on particular issues and for each individual speaker.
(2) Notwithstanding paragraph (1), when the legislative body of a local agency limits time for public comment, the legislative body of a local agency shall provide at least twice the allotted time to a member of the public who utilizes a translator to ensure that non- English speakers receive the same opportunity to directly address the legislative body of a local agency.”
In furtherance of Section 54954.3 of the Brown Act, the public is allotted to speak a total of three (3) minutes on the entirety of the Consent Calendar, New Business and Closed Session, and, if desired, an additional two (2) minutes on items not on the agenda that are within the subject matter jurisdiction of the City Council. As specified in the Brown Act, a speaker utilizing a translator will receive twice the amount of time specified.
7. PUBLIC COMMENTS:
CONSENT CALENDAR, NEW BUSINESS AND CLOSED SESSION:
Now is the time
for public participation on items listed on the Consent Calendar, New Business and Closed Session. Each speaker is allotted three (3) minutes total on the entirety of the above sections.
City Council
Wednesday, October
4, 2023
8. CONSENT CALENDAR
All matters listed under the Consent Calendar will be enacted by one motion unless an item(s) is pulled by Council, in which case the item(s) will be removed from the Calendar and will be considered separately following this portion of the Agenda.
8.1 Receive and file the Monthly Investment Activity Reports for August 2023.
1. Staff_Report_-_Investment_Report_AUG_2023.docx
02 Aug 2023 City & Successor Investment Report.pdf
8.2 Adopt Resolution No. CC 2023-058, a Resolution of the City Council of the City of Palmdale authorizing the City Manager's signature authority of up to $250,000 per transaction for the purchase of performers or entertainment services.
1._Staff_Report_to_Council_re_Entertainment_Signature_Authority___Funding.docx
2._Resolution_CC_2023-058_for_sig_authority_for_events.doc
8.3 Approve Agreement for Claims Administration Services between the City of Palmdale and Sedgwick Claims Management Services, Inc. for a not-to-exceed amount of $207,799 for the five year term.
SR_-_Sedgwick.docx
City of Palmdale - Sedgwick 2023-2028 CSA FINAL.pdf
8.4 Approve the City Council's Discretionary Funds Policy and Procedures.
SR Discretionary Funds.docx
City Council Discretionary Funds Program.docx
8.5 Approve Agreement with Dell Technologies, Inc. to provide data center hardware, configuration services, and hardware support for a not-to-exceed amount of $344,822 for a term of five (5) years.
Staff Report for A-8493 Dell SAN 2023.docx
A-8493.pdf
8.6 Approve First Amendment to Agreement with Datalink Networks, Inc. for Microsoft Licensing to increase the contract price by $292,804 for an amount not to exceed $677,964 for the remainder of the term, through October 4, 2025.
SR_Datalinks_Amendment (3).docx
A-8052 Amendment 1.pdf
8.7 Approve Agreement with Wilson Events, Inc., to provide entertainment booking and management services for an amount not to exceed $250,000 for a term of 2 years.
Staff_Report-Wilson_Events_Inc._2023.edited.docx
City of Palmdale - Wilson Events, Inc. (A-8504) - 08-22-2023 - Preview (1).pdf City Council
Wednesday, October
4, 2023
8.8 Receive and File Annual Reports for the Palmdale Tourism Improvement District Reports for 2022-2023 and 2023-2024.
Staff_Report_PTID_Annual_Report.docx
FINAL PTID Annual Report FY22-23.pdf
Final PTID Annual Report FY23-24.pdf
8.9 Award Request for Proposal 23-001-2100 for temporary Planning staff services to Interwest Consulting Group and approve Agreement with Interwest Consulting Group to provide temporary Planning staff services in an amount not to exceed $400,000 for a term of 3 years, through 2026.
Staff_Report_RFP_23-001-2100_A-8518.docx
A-8518.pdf
8.10 Approve Amendment No. 1 to Agreement with Interwest Consulting Group to increase the contract price by $150,000 for an amount not to exceed $250,000 for Ritter Ranch Planning services.
Staff_Report_First_Amendment_to_A-7581.docx
City of Palmdale - AGENDA ITEM_ Interwest Consulting Group, Inc. (A-7581) Amendment # 1- 09-12-2023 - Preview.pdf
A-7581.pdf
8.11 Approve Agreement with Parsons Transportation Group for Environmental and Design Services for PN 860, Avenue R at Sierra Highway Railroad Crossing Improvement Project, in the amount of $706,404 for a term of 600 days.
Staff Report Reference Parsons Agreement.docx
Parsons Transportation Group - PN860 -(A-8339).pdf
8.12 Adopt Resolution No. CC 2023-054, a Resolution of the City Council of the City of Palmdale authorizing the application for grant funds from the Recreational Trails Program for the Barrel Springs Trail Improvement Project.
BARREL SPRINGS-Staff Report-RTP 2023.docx
BARREL SPRINGS-Resolution 2023-054.doc
8.13 Accept a grant provided by Antelope Valley Air Quality Management District (AVAQMD) and approve the program to fund residential Electrical Vehicle (EV) charging equipment, in the amount of $100,000.
SR - Acceptance of AVAQMD Grant.docx
Palmdale Your Ride Is EPIC Agreement Final.pdf
8.14 Notice of Completion - Accept Public Improvements for Tract 60028 located between 67th Street East and 70th Street East at Avenue R-4.
SR-09202023__19-20_.docx
EXHIBIT A 19-20.docx
EXHIBIT B (19-20).docx
City Council
Wednesday, October
4, 2023
NOC_19-20 ST IMPROVEMENTS.doc
8.15 Notice of Completion - Accept Public Improvements for Tract 60028-1 located at the southeast corner of Avenue R and 65th Street East.
SR-09202023 (18-33).docx
EXHIBIT A 18-33.docx
EXHIBIT B (18-33).docx
NOC_18-33 ST IMPROVEMENTS.doc
8.16 Notice of Completion - Accept Public Improvements for Tract 60028-2 located at the southwest corner of Avenue R and 70th Street East.
SR-09202023 (19-16).docx
EXHIBIT A 19-16.docx
EXHIBIT B (19-16).docx
NOC_19-16 ST IMPROVEMENTS.doc
8.17 Award IFB No. 23-001-3610 Professional Arboricultural Services and Approve agreement with Tip Top Arborists, Inc. in an amount not to exceed $2,750,000 over a five-year term.
SR_Award_IFB___Approve_Agreement_-_Tip_Top_Arborists.docx
1. IFB No. 23-001-3610 Arboricultural Services Bid Tabulation.pdf
2. Agreement No. A-8507 Tip Top Arborists Inc._DRAFT.pdf
8.18 Approve long-term Bundled Renewable Energy Resale Agreement between Energy for Palmdale's Independent Choice (EPIC) and Shell Energy North America (US), L.P.
20231004_Palmdale Staff Report_EPIC CCA_Shell RPS_TS.docx
Power Purchase Agreement A-8540.pdf
8.19 Adopt Resolution No. CC 2023-053, a Resolution of the City Council of the City of Palmdale adopting the Joint Resolution of the Board of Supervisors of the County of Los Angeles acting in behalf of the Los Angeles County General Fund, Los Angeles County Consolidated Fire Protection District, and the Los Angeles County Waterworks #40 - Antelope Valley and the governing bodies of the Antelope Valley Cemetery District, Antelope Valley Mosquito and Vector Control District, Antelope Valley Resource Conservation District, City of Palmdale, and the Antelope Valley - East Kern Water Agency approving and accepting negotiated exchange of property tax revenues resulting from Annexation No. 14-447 to County Sanitation District No. 14.
092023__SR_Tax_Shared_Annex._No._14-447__CC_2023-053 Final.doc
092023__Resolution_No._CC_2023-053.docx
092023, LACSD Transmittal Letter.pdf
092023, County Joint Resolution Annex 14-447.pdf
City Council
Wednesday, October
4, 2023
092023, Property Tax Resolution Worksheet Annex 14-447.pdf
092023, Exhibit A_Annexation Map No. 14-447.pdf
8.20 Approve the minutes from the previous meetings.
CC/SA - August 2, 2023
CC/SA - August 16, 2023
CC/SA - September 6, 2023
City Council_SA 08 02 2023.pdf
City Council 08 16 2023.pdf
City Council_SA
09 06 2023.pdf
9. NEW BUSINESS
9.1 Discussion regarding designating a representative to the Fallen Heroes Committee.
10. NON-AGENDA PUBLIC COMMENTS
:
Now is the time for public participation on
items not listed on the agenda. Each speaker is allotted two (2) minutes total on items not listed on the agenda.
11. INFORMATIONAL REPORT FROM MAYOR AND / OR COUNCILMEMBERS ON
THEIR VARIOUS COMMITTEE MEMBERSHIPS AND MEETINGS ATTENDED AT
PUBLIC EXPENSE
11.1 Council Reports on Committee Memberships and Meetings Attended at Public Expense.
Bettencourt Informational Report Sept 2023.pdf
Alarcon Informational Report Sept 2023 FINAL 1.pdf
Bishop Informational Report Sept 2023.pdf
LOA Informational Report Sept 2023 FINAL.pdf
Ohlsen Informational Report September 2023.pdf
12. CITY COUNCIL ANNOUNCEMENTS AND REQUESTS FOR NEW AGENDA ITEMS
13. CITY MANAGER’S REPORT
14. PRESENTATION BY CITY ATTORNEY
14.1 CONFERENCE WITH LEGAL COUNSEL - EXISTING LITIGATION Shanae Smith, Patricia Nevarez and Michael "Mike" Behen vs. City of Palmdale, et al.
Los Angeles County Superior Court
City Council
Wednesday, October
4, 2023
Case No. 22STCV18219
This closed session is being held pursuant to the authority of California Government Code Section 54956.9(d)(1).
14.2 PUBLIC EMPLOYMENT
Title: City Attorney
15. ANNOUNCEMENT BY CITY ATTORNEY
16. ADJOURN
meeting to October 18, 2023, in honor of Deputy Ryan "Clink" Clinkunbroomer, at 5:00 p.m. in the City Hall Council Chamber located at 38300 Sierra Highway, Suite B, Palmdale, California.
Americans with Disabilities Act (ADA) Accommodations
In accordance with the Americans with Disabilities Act of 1990, if you require a disability- related modification or accommodation to participate in this meeting, please contact the City Clerk’s Office at (661) 267-5151 at least 72 hours prior to the meeting.
If you require oral Spanish translation, please contact the City Clerk’s Office at (661) 267- 5151 at least 72 hours prior to the meeting.
City Council
Wednesday, October
4, 2023
City Council Staff Report
DATE: OCTOBER 4, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER’S OFFICE – FINANCE DIVISION
DISTRICT: ALL
SUBJECT: RECEIVE AND FILE THE MONTHLY INVESTMENT ACTIVITY REPORTS FOR AUGUST 2023
ISSUE
Receive and file the monthly investment activity reports for August 2023.
RECOMMENDATION
Staff recommends that the City Council receive and file the monthly investment activity reports for the City of Palmdale and Successor Agency for August 2023.
BACKGROUND
Pursuant to Section 16 of the City of Palmdale and Successor Agency Investment Policy, the City Treasurer shall prepare and present monthly and quarterly reports on investments to the City Manager/Executive Director and the City Council/Directors. The reports shall detail the type of investment, name of the issuer, purchase date, date of maturity, amount of deposit, and rate of interest. This information shall be provided for all City and Successor Agency pooled investments, as well as for Certificates of Participation, Revenue Bonds, Tax Allocation Bonds, Assessment Districts and Community Facilities District accounts which are managed by outside Fiscal Agents.
The monthly reports provide a synopsis of the investment activity for the City of Palmdale and Successor Agency. The reports provide information on assets, allocations, average maturities, yields, and book valuations.
The interest rates presented are the mo st current rates available as of the date of this report.
The market values presented for pooled City and Successor Agency investments are based on closing prices for the related investment as of the date of this report. This information was obtained from the Wall Street Journal, Bloomberg Financial Markets, Capital Market Finances, or other reliable source of market prices.
Report to Mayor and City Council
Re: Monthly Reports on Investments
October 4, 2023
DISCUSSION
Compliance with Investment Policy
For August, the invested portfolio amount for the City of Palmdale totaled $305,100,084, a decrease of $8,868,270 from the previous month, and an increase of $17,168,174 in comparison to last year. The monthly decrease is the result of a withdrawal from LAIF to cover operating expenses and debt service payments for the month.
The par value of Successor Agency’s portfolio as of August was $7,904,745. The balance decreased by $6,522,352 from last month due to debt service payments made during the month.
All investments meet criteria appropriate to Section 8 of the Investment Policy. The portfolios are based on a combination of various investments, including CDs, Corporate Notes, U.S. Treasury Securities and Government Agency Paper, each adhering to portfolio percentage limitations.
The Finance Division is the custodian for the City and Successor Agency’s investment portfolio and follows the three main principles of both entity’s investment policy to 1) Investment in financial instruments that mitigate the risk of monetary losses stemming from market fluctuations; 2) Establish and maintain a portfolio that has sufficient liquidity to allow the City and Successor Agency to meet all anticipated cash requirements; and 3) Seek out investment instruments that provide a competitive market rate of return.
Liquidity
One core approach the Finance Division focuses on is providing liquidity to measure up to the City and Successor Agency’s operational requirements. Thus, the Finance Department is currently investing in two pooled funds, LAIF and CAMP. These are intended for daily operational activities and used for economic uncertainties and maintenance needs. The pooled funds provide a higher liquidity ratio to ensure the City and Successor Agency meet cash flow requirements.
The total LAIF balance for the City of Palmdale at the end of August is $132,455,024, a decrease of $8,907,000 compared to the prior month. Decreases from the prior month are the result of withdrawals from LAIF to pay for ongoing operating and debt service expenses.
Successor Agency LAIF balance at the end of August was $7,027,790. A decrease of $6,000,000 compared to the prior month due to a withdrawal to cover debt service obligations.
CAMP’s balance for City of Palmdale at the end of August was $261,702 compared to July balance of $260,481. The slight increase is due to interest earned during the month.
Report to Mayor and City Council
Re: Monthly Reports on Investments
October 4, 2023
The interest rates presented are the most current rates available as of the date of this report. As of August 31, 2023, the interest rates for LAIF and CAMP investments were at 3.434 percent and 5.52 percent, respectively. By comparison, the LAIF and CAMP interest rates at the end of July were at 3.305 percent and 5.31 percent. Both rates have slightly increased within this month. This time last year, LAIF and CAMP rates were at
1.276 percent and 2.30, respectively.
The chart above shows both the Local Agency Investment Fund and California Asset Management Program’s average monthly yields beginning November 2022 through August 2023.
We anticipate that rates will remain fairly consistent, increasing only in small percentages in the upcoming months, considering the history in the past year and the current state of the economy. The difference between the performance of the two funds is partly due to the varying pool characteristics. CAMP’s portfolio composition is much more subject to market volatility, resulting in performance variation.
Diversity
The Finance Department aims to diversify the investment portfolios to avoid incurring unreasonable and avoidable risks regarding specific security types or individual financial institutions.
The City of Palmdale and Successor Agency’s investment portfolios remain strongly diversified. The monthly reports include all investments held by both entities and current book values as of August 31, 2023.
2.01% 2.17% 2.43%
2.62% 2.83% 2.87% 2.99% 3.17% 3.30% 3.43%
3.90% 4.30% 4.53% 4.73% 4.80% 4.97% 5.16% 5.24% 5.31%
5.52%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
Nov Q2 Dec Jan Feb Q3 Mar Apr May Q4 Jun Jul Aug
Pooled Investments Monthly Yields
LAIF CAMP
Report to Mayor and City Council
Re: Monthly Reports on Investments
October 4, 2023
It is anticipated that both the City of Palmdale and Successor Agency will have sufficient sums of money to meet its expenditure requirements for the next 6 months. The Finance Department will continue to monitor current economic conditions and the impact on interest rates.
Attached are summaries of the investments in the City of Palmdale and Successor Agency’s books as of August 31, 2023.
FISCAL IMPACT
There is no fiscal impact associated with the recommended actions for this report.
STRATEGIC PLAN
Goal II: Ensure long-term fiscal health of the City and maintain funding for services.
B. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.
C. Involve and expand engagement to enhance public oversight and transparency.
Prepared by: Gohar Avetisyan, Senior Financial Analyst
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, Interim City Attorney
ATTACHMENTS
1. Monthly Reports on City of Palmdale Investments
2. Monthly Report on Successor Agency Investments
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
AUGUST 31, 2023
PURCHASE MATURITY ACCOUNT/ FDIC INTEREST PAR PURCHASE INVESTED DATE DATE FUND INSTITUTION Number RATE AMOUNT AMOUNT AMOUNT U.S. TREASURY SECURITIES Yield
05-31-19 04-30-24 CITY 9128286R6 U.S. Treasury Note 2.03 5,000,000.00 5,051,650.00 4,870,312.50 03-19-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 3,000,000.00 3,260,634.36 2,856,570.00 05-11-21 02-28-26 CITY 9128286F2 U.S. Treasury Note 0.66 3,000,000.00 3,261,331.50 2,843,100.00 05-11-21 12-31-24 CITY 9128283P3 U.S. Treasury Note 0.40 3,000,000.00 3,200,040.56 2,872,020.00 06-04-21 12-31-23 CITY 912828V23 U.S. Treasury Note 0.20 4,000,000.00 4,210,026.50 3,940,320.00 07-12-21 12-31-23 CITY 9128285U0 U.S. Treasury Note 2.63 5,000,000.00 5,289,959.94 4,934,950.00 07-12-21 12-31-25 CITY 9128285T3 U.S. Treasury Note 2.63 5,000,000.00 5,451,958.35 4,760,950.00 07-12-21 12-31-23 CITY 912828V23 U.S. Treasury Note 2.25 5,000,000.00 5,244,161.50 4,925,400.00 12-17-21 12-15-23 CITY 91282CBA8 U.S. Treasury Note 0.56 10,000,000.00 9,913,130.25 9,772,300.00 12-17-21 12-15-24 CITY 91282CDN8 U.S. Treasury Note (UBS) 0.85 10,000,000.00 10,045,505.25 9,410,200.00 12-22-21 12-15-23 CITY 91282CBA8 U.S. Treasury Note 0.56 5,000,000.00 4,957,270.88 4,886,150.00 12-22-21 12-15-24 CITY 91282CDN8 U.S. Treasury Note 0.88 5,000,000.00 5,018,208.38 4,705,100.00 12-20-21 12-15-24 CITY 91282CDN8 U.S. Treasury Note (Stifel) 1.00 5,000,000.00 5,017,187.50 4,705,078.10 03-08-23 03-31-26 CITY 9128286L9 U.S. Treasury Note (UBS) 2.25 3,200,000.00 3,029,330.80 3,010,496.00 TOTAL U.S. TREASURY SECURITIES 71,200,000.00$ 72,950,395.77$ 68,492,946.60$
GOVERNMENT AGENCY PAPER
06-10-20 06-16-25 CITY 3133ELK37 Federal Farm Credit 0.78 5,000,000.00 5,000,000.00 4,604,401.25 08-07-20 05-06-24 CITY 3133EL2X1 Federal Farm Credit 0.42 2,000,000.00 2,000,000.00 1,914,808.08 08-27-20 11-27-24 CITY 3134GWNG7 Freddie Mac Domestic 0.50 2,000,000.00 2,000,000.00 1,867,580.54 04-01-21 04-01-25 CITY 3133EMUP5 Fed Farm Credit 0.71 5,000,000.00 5,000,000.00 4,629,334.75 05-11-21 09-04-25 CITY 3133EJYM5 FFCB Bond 0.59 1,000,000.00 1,103,275.25 963,220.00 05-11-21 09-04-25 CITY 3133EJYM5 FFCB Bond 0.57 0.57 2,000,000.00 2,208,460.00 1,926,440.00 06-04-21 11-07-25 CITY 3135G06G3 Fannie Mae 0.55 3,000,000.00 2,993,675.25 2,718,300.00 06-04-21 08-01-24 CITY 3130AMHH8 FHLB NOTE 0.41 4,000,000.00 4,000,000.00 3,784,890.08 06-07-21 06-07-24 CITY 3130AMQR6 FHLB NOTE 0.35 3,000,000.00 3,000,000.00 2,857,869.93 06-30-21 12-30-25 CITY 3130AMRQ7 FHLB NOTE 0.88 3,000,000.00 3,000,000.00 2,724,400.26 07-29-21 04-29-26 CITY 3130AN5C0 FHLB NOTE 1.05 4,000,000.00 4,010,455.13 3,606,160.00 12-17-21 11-12-25 CITY 3134GXBM5 FHLMC Note 1.15 1,150,000.00 1,125,785.50 1,036,575.50 12-17-21 12-30-24 CITY 3130AQDY6 FHLB 1.00 6,750,000.00 6,750,000.00 6,327,843.39 12-17-21 06-23-25 CITY 3133ENHW3 FFCB 1.17 10,000,000.00 10,000,000.00 9,275,883.70 12-20-21 07-30-25 CITY 3136G4ZP1 FANNIE MAE 0.65 3,500,000.00 3,444,175.00 3,203,308.12 12-20-21 09-24-25 CITY 3134GWUG9 FREDDIE MAC 0.57 10,000,000.00 9,806,600.00 9,088,861.70 12-21-21 12-22-26 CITY 3133ENJC5 FFCB 1.29 5,000,000.00 5,000,000.00 4,487,676.35 01-14-22 01-14-25 CITY 3130AQEA7 FHLB 1.05 7,000,000.00 7,000,000.00 6,561,152.22 06-29-22 08-12-25 CITY 3133EL3P7 Federal Farm Credit Bank 3.34 1,810,000.00 1,660,349.20 1,650,002.84 06-29-22 03-28-25 CITY 3130A5DH9 Federal Home Loan Bank 3.34 1,950,000.00 1,937,715.00 1,873,133.09 06-24-22 02-26-27 CITY 3130AL5A8 Federal Home Loan Bank 3.33 5,000,000.00 4,479,000.00 4,355,784.25 08-17-22 10-27-26 CITY 3134GW4C7 Freddie Mac Global Unsecured 0.80 5,000,000.00 4,539,500.00 4,429,309.65 01-06-23 02-25-27 CITY 3130AQRH8 Federal Home Loan Bank 4.38 5,000,000.00 4,590,638.89 4,571,978.55 01-06-23 04-19-27 CITY 3130ARHJ3 Federal Home Loan Bank 4.38 5,000,000.00 4,801,354.86 4,742,725.40 05-18-23 05-18-27 CITY 3133EPKC8 Federal Farm Credit Bank Unsec 5.39 5,000,000.00 5,000,000.00 4,949,700.35 06-05-23 05-30-28 CITY 3133EPLE3 Federal Farm Credit Bond 4.67 2,815,000.00 2,822,746.50 2,753,942.65 TOTAL GOVERNMENT AGENCY PAPER 108,975,000.00$ 107,273,730.58$ 100,905,282.65$
CERTIFICATES OF DEPOSIT
TOTAL CERTIFICATES OF DEPOSIT -$ -$ -$
CITY OF PALMDALE INVESTMENTS
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
AUGUST 31, 2023
CORPORATE NOTES
5/17/2023 3/1/2026 CITY 30231GAT9 EXXON MOBIL CORPORATION 3.04 $1,000,000 $982,084 955,987.20 5/17/2023 3/2/2026 CITY 194162AQ6 COLGATE-PALMOLIVE CO GLOBAL4.80 $1,000,000 $1,035,553 1,003,302.97 5/17/2023 1/26/2026 CITY 742718FY0 PROCTER & GAMBLE CO/THE GLOGAL4.10 $1,000,000 $1,018,472 987,613.50 TOTAL CORPORATE BONDS $3,000,000 $3,036,109 2,946,903.67$
STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
09-01-84 n/a CITY ACCOUNT 98-19-620 0.78 53,217,293.97 53,217,293.97 53,217,293.97 06/23/08 n/a PCA ACCOUNT 40-19-060 0.78 56,228,187.21 56,228,187.21 56,228,187.21 n/a ARPA ACCOUNT 19-19-004 0.78 23,009,543.23 23,009,543.23 23,009,543.23 TOTAL LAIF ACCOUNTS 132,455,024.41$ 132,455,024.41$ 132,455,024.41$
CAMP- CALIFORNIA ASSET MANAGEMENT PROGRAM
6080-01 n/a CITY ACCOUNT 6080-01 0.30 261,701.77 261,701.77 261,701.77 TOTAL CAMP ACCOUNTS 261,701.77$ 261,701.77$ 261,701.77$
UBS FINANCIAL SERVICES
n/a n/a CITY ACCOUNT 0.00 38,224.84 38,224.84 38,224.84 TOTAL UBS FINANCIAL SERVICES ACCOUNTS 38,224.84$ 38,224.84$ 38,224.84$ TOTAL CITY INVESTMENTS 315,929,951.02$ 316,015,186.48$ 305,100,083.94$
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
AUGUST 31, 2023
PURCHASE MATURITY ACCOUNT INTEREST INVESTED
DATE DATE FUND NUMBER RATE AMOUNT
STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
11-20-84 n/a LIBRARY 16-19-012 0.78 12,779.53
TOTAL LIBRARY INVESTMENTS 12,779.53$
PURCHASE MATURITY ACCOUNT INTEREST INVESTED
DATE DATE FUND NUMBER RATE AMOUNT
BOND PROCEEDS
SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 05-10-95 n/a BOND 95421220 0.35 110.86
05-10-95 n/a IMPROVEMENT 95421222 0.10 161,099.62
City Held Cash(Fund 736-114000) ($255,912.67)
TOTAL SIERRA GATEWAY COMMUNITY FACILITIES DISTRICT 91-1 161,210.48$
BOND PROCEEDS
RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-06-95 n/a RESERVE-SEN 95420880 n/a 0.00
04-06-95 n/a IMPV-ACQUI 95420884 0.01 2,688,176.55
04-06-95 n/a BOND 95420887 0.15 0.15
City Held Cash(Fund 738-114000) ($1,000,675.82)
TOTAL RITTER RANCH COMMUNITY FACILITIES DISTRICT 93-1 2,688,176.70$
BOND PROCEEDS
ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1
Fiscal Agent: U.S. Bank National Association (fka First Trust) 08-01-19 n/a SP TAX - B BOND 242969000 0.00 1,103,505.68 08-01-19 n/a RESERVE 242969003 0.00 722,965.83
08-01-19 n/a SP TAX - REFUNDING BOND 242969004 0.01 15,150.29 08-01-19 n/a SP TAX - REFUNDING BOND COI242969005 0.01 Account Closed on 12/20/22 0.00 City Held Cash(Fund 734-114000) $1,773,665.72
TOTAL ANAVERDE COMMUNITY FACILITIES DISTRICT 2003-1 1,841,621.80$
LIBRARY INVESTMENTS
FISCAL AGENT CASH
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
AUGUST 31, 2023
BOND PROCEEDS
2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) Fiscal Agent: U.S. Bank National Association (fka First Trust) 08-02-05 n/a SPEC TRB SER A/B 790330000 0.01 0.00
08-02-05 n/a RESERVE FUND 790330002 0.01 0.00
City Held Cash(Fund 735-114000) $1,330,451.36
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) -$
BOND PROCEEDS
2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 2021 Fiscal Agent: U.S. Bank National Association (fka First Trust) n/a SPEC TRB SER A/B 251009000 0.01 709,669.69
n/a RESERVE FUND 251009001 0.01 639,057.15
City Held Cash
TOTAL 2005 $7.2M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) REFUNDED 20211,348,726.84$
BOND PROCEEDS
2006-1 Godde Hill Estate Sewer Improvements LOIB
Fiscal Agent: U.S. Bank National Association (fka First Trust) 11-08-06 n/a REDEMPTION FUND 106844000 0.01 129,877.02
11-08-06 n/a ADM EXP 106844002 0.01 1,657.74
11-08-06 n/a RESERVE FUND 106844003 0.01 98,187.29
City Held Cash(Fund 739-114000) $145,437.61
TOTAL 2006-1 Godde Hill Estate Sewer Improvements LOIB 229,722.05$
BOND PROCEEDS
2007 $19.9M COP Power Plant Land Acquisition
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-12-07 n/a LEASE PAYMENT 112055000 0.01 0.00
04-12-07 n/a RESERVE FUND 112055001 0.00 0.00
TOTAL 2007 $19.9M COP Power Plant Land Acquisition -$
BOND PROCEEDS
2007 $6.5M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) Fiscal Agent: U.S. Bank National Association (fka First Trust) 08-23-07 n/a BOND FUND 117856000 0.01 0.00
08-23-07 n/a RESERVE FUND 117856002 0.01 0.00
TOTAL 2007 $6.5M COMMUNITY FACILITIES DISTRICT 05-1 (TRADE AND COMMERCE CENTER) -$
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
AUGUST 31, 2023
PURCHASE MATURITY ACCOUNT INTEREST INVESTED
DATE DATE FUND NUMBER RATE AMOUNT
BOND PROCEEDS
2012 PFA $8.7M LEASE REVENUE BONDS
Fiscal Agent: U.S. Bank National Association (fka First Trust) 12-19-12 n/a REVENUE FD 201546000 0.00 679,568.01
12-19-12 n/a INTEREST ACCOUNT 201546001 n/a 0.00
12-19-12 n/a PRINCIPAL ACCOUNT 201546002 n/a 0.00
TOTAL 2012 PFA $8.7M LEASE REVENUE BONDS 679,568.01$
2013 HA PALMDALE TRANSIT VILLAGE HOMES LLC ESCROW
Fiscal Agent: U.S. Bank National Association (fka First Trust) 10-11-13 n/a ESCROW FUND 206455000 0.00 2,979,512.65
TOTAL 2013 HA TRANSIT VILLAGE HOMES ESCROW 2,979,512.65$ 2015 HA DEBT SERVICE RESERVE
Fiscal Agent: Bank of America
11-19-15 n/a DEBT SVC RESERVE 1257964992 0.08 39,693.52 TOTAL 2015 HA DEBT SERVICE RESERVE 39,693.52$
PARS RESTRICTED CASH FOR PENSION STABILIZATION TRUST FUND 05-23-18 n/a CITY 104790895775 Public Agency Retirement Services2.60 7,691,720.96 TOTAL PARS PENSION TRUST FUND 7,691,720.96$
BOND PROCEEDS
2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS
Fiscal Agent: U.S. Bank National Association (fka First Trust) 09-03-15 n/a BOND FUND 277067000 0.00 73,434.07
09-03-15 n/a INTEREST ACCT 277067001 0.01 6.95
09-03-15 n/a BOND RESERVE 277067003 0.00 281,018.53
09-03-15 n/a REPAIR & REPLACE FUND 277067004 0.00 1,231,220.35 TOTAL 2015 HA $4.3M MULTIFAMILY HOUSING REVENUE BONDS 1,585,679.90$
BOND PROCEEDS
2017 PFA $17.4M LEASE REVENUE BONDS
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-05-17 n/a REVENUE FUND 271128000 0.00 0.19
04-05-17 n/a PRINCIPAL ACCT 271128002 n/a 0.00
TOTAL 2017 PFA $17.4M LEASE REVENUE BONDS 0.19$
Total City Held Cash (XXX-114000) $1,992,966.20
GRAND TOTAL - FISCAL AGENT CASH 17,896,906.26$
FISCAL AGENT CASH
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
AUGUST 31, 2023
Cash on Hand 11,527,226$
Pooled Cash Investments
City: 303,158,797$
Insur Fund: $1,941,287 305,100,084$
Library Investments $12,780
Subtotal 316,640,090$
City/AD/CFD/PCA/PFA/HA
Fiscal Agent Cash 17,896,906$
Grand total 334,536,996$
The interest rate quoted on LAIF, AIM, and Fiscal Agent/Trustee accounts is the most current rate available.
LAIF & AIM interest rates are as of August 31, 2023.
S:\Cash and Investment\Investment\Investment Reports\23-24\02 Aug 2023\[02 Aug 2023 Investment Report City.xls]Staff Report Notes
SUMMARY OF CASH AND INVESTMENTS
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
AUGUST 31, 2023
CITY OF PALMDALE
POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF), CALIFORNIA ASSET MANAGEMENT PROGRAM (CAMP), & UBS FINANCIAL SERVICES August 31, 2023
TRANSACTION INTEREST
DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
CITY ACCOUNT 98-19-620
Beginning Balance 53,217,293.97$
Subtotal -$ -$ -$ 53,217,293.97$ PCA ACCOUNT 40-19-060
Beginning Balance 61,228,187.21$
08-22-23 (5,000,000.00)$
Subtotal -$ (5,000,000.00)$ -$ 56,228,187.21$ LIBRARY ACCOUNT 16-19-012
Beginning Balance 12,779.53$
Subtotal -$ -$ -$ 12,779.53$ ARPA ACCOUNT 19-19-004
Beginning Balance 26,914,543.23$
08/03/23 (3,905,000.00)$
Subtotal -$ (3,905,000.00)$ -$ 23,009,543.23$
CAMP - CALIFORNIA ASSET MANAGEMENT PROGRAM
Beginning Balance 260,480.83$
08/31/23 1,220.94 $
Subtotal -$ -$ 1,220.94$ 261,701.77$ UBS Financial Services
Beginning Balance 716.02$
08/31/23 37,508.82$
Subtotal -$ -$ 37,508.82$ 38,224.84$ Total -$ (8,905,000.00)$ 38,729.76$ 132,767,730.55$ 132,506,028.78$
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
AUGUST 31, 2023
TN= US Treasury C= Call
FP= Federal Paper M= Maturity
CD= Certificate of Deposit CB= Corporate Bond
FACE
PURCHASE MATURITY VALUE INTEREST NET INVESTED GAIN/
ISSUER DATE DATE REDEEMED RECEIVED FUNDS AMOUNT (LOSS)
M -$ $0.00
M -$ -
M -$ -
M -$ -
M -$ -
M -$ -
-$ -$ -$ -$ $0.00 Total Number of Transactions: 0
CITY OF PALMDALE
POOLED CASH - INVESTMENTS MATURED OR CALLED
August 31, 2023
CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
AUGUST 31, 2023
TN = US Treasury
FP = Federal Paper
CD = Certificate of Deposit
CN = Corporate Notes ACCRUED
PURCHASE MATURITY FACE PREMIUM / PURCHASE INTEREST NET Yield
ISSUER DATE DATE VALUE (DISCOUNT) PRICE PURCHASED PURCHASE -$
- -$
- -$
- -$
- -$
-
-$ -$ -$ -$ -$ Total Number of Transactions: 0
CITY OF PALMDALE
POOLED CASH - INVESTMENTS PURCHASED
August 31, 2023
SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
August 31, 2023
PURCHASE MATURITY ACCOUNT/ INTEREST INVESTED
DATE DATE FUND INSTITUTION RATE AMOUNT TOTAL
STATE OF CALIFORNIA LOCAL AGENCY INVESTMENT FUND
09-01-84 n/a SA ACCOUNT 65-19-035 0.78 7,024,789.94
7,024,789.94$
FISCAL AGENT CASH
BOND PROCEEDS
CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) Fiscal Agent: U.S. Bank National Association
08-20-02 n/a RESERVE FUND 94460700 2.54 534,075.49
08-20-02 n/a INTEREST ACCT 94460701 0.04 15,142.53
08-20-02 n/a PRINCIPAL ACCT 94460702 0.04 254.12
TOTAL CRA - 2002 Sub Lien Tax Allocation Bonds $5.3M ($5,329,748.25) 549,472.14$
BOND PROCEEDS
2016 SA $31.5M Tax Allocation Refunding Bonds Series A
Fiscal Agent: U.S. Bank National Association (fka First Trust) 04-26-16 n/a DEBT SERVICE 245113000 0.00 2.05
04-26-16 n/a INTEREST ACCT 245113001 N/A 0.00
TOTAL 2016 SA $31.5M Tax Allocation Refunding Bonds Series A 2.05$ GRAND TOTAL - FISCAL AGENT CASH $549,474
SUMMARY OF CASH AND INVESTMENTS
Cash on Hand 330,481$ 339,008.49$
($8,528)
Pooled Cash Investments 7,024,790$ $0
330,480.99$
Successor Agency Fiscal Agent Cash 549,474$ *
Grand total 7,904,745$
* The interest rate quoted on LAIF and Fiscal Agent/Trustee accounts is the most current rate available.
LAIF interest rates are as of August 31, 2023.
S:\Cash and Investment\Investment\Investment Reports\23-24\02 Aug 2023\[02 Aug 2023 Successor Investment Report.xls]Aug 2023 Monthly
SUCCESSOR AGENCY TO THE COMMUNITY REDEVELOPMENT AGENCY OF THE CITY OF PALMDALE
TREASURER'S REPORT OF INVESTMENTS
8/31/2023
POOLED CASH - LOCAL AGENCY INVESTMENT FUND (LAIF)
July 31, 2023
TRANSACTION INTEREST
DATE DEPOSIT WITHDRAWAL RECEIVED BALANCE
SA ACCOUNT 65-19-035
Beginning Balance 13,024,789.94$
08/17/23 (6,000,000.00)$
Subtotal -$ (6,000,000.00)$ -$ 7,024,789.94$ City Council Staff Report
DATE: OCTOBER 4, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: FINANCE DIVISION
DISTRICT: ALL
SUBJECT: ADOPT RESOLUTION NO. CC 2023 -058, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE AUTHORIZING THE
CITY MANAGER ’S SIGNATURE AUTHORITY OF UP TO $250,000
PER TRANSACTION FOR THE PURCHASE OF PERFORMERS OR
ENTERTAINMENT SERVICES
ISSUE
Adopt Resolution No. CC 2023-058, a Resolution of the City Council of the City of Palmdale authorizing the City Manager's signature authority of up to $250,000 per transaction for the purchase of performers or entertainment services.
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Resolution No. CC 2023 -058, a Resolution of the City Council of the City of Palmdale authorizing the City Manager's signature authority of up to $250,000 per transaction for the purchase of performers or entertainment services.
BACKGROUND
The City of Palmdale began hosting summer concerts at Marie Kerr Park in 1995, and with the construction of the Palmdale Amphitheater, summer concerts were relocated in 2005. Each year, the City of Palmdale purchases the services of various performers and entertainers to perform at special events and the Palmdale Playhouse; therefore, to secure entrainment services, establishing an appropriate signature authority polic y is necessary.
Resolution No. CC 2016-096 was approved by the City Council in December of 2016, authorizing the City Manager's signature authority not to exceed $100,000 per transaction. Since this time, costs for goods and services have continued to rise nationwide; as such, artists' fees and show production costs have also increased.
Pursuant to Palmdale Municipal Code 3.08.240, the City Manager has the authority to review, approve , and execute contracts on behalf of the City, up to $100,000 per purchase order or contract. The current authority level is insufficient to procure performers or entertainment services; therefore, an updated Resolution is necessary to address the complexities of these purchases.
Report to Mayor and City Council
Re: Resolution 2023-058
October 4, 2023
DISCUSSION
The Palmdale Amphitheater is celebrating our 20th season in summer 2024. To commemorate this monumental occasion with an enhanced entertainment season and allow for the purchase of a broader caliber of entertainers, the amended signature authority is recommended.
With nationwide economic increases to the cost of doing business, performers retiring due to the pandemic, increased demand for entertainment as venues restore services and new venues are established, the cost of entertainment has continued to rise. The City Manager’s spending authority of $100,000 does not allow the City to expeditiously secure performances that exceed this amount, respond to market conditions, and quickly changing artist availability.
Without the ability to make financial offers to performers immediately, the City risks losing available performance dates to other purchasers and hindering the City’s ability to take advantage of artist performances in our region.
This resolution will increase the City Manager’s signature authority for performers or entertainment services up to $250,000 per transaction. This will provide the City with the ability to purchase a broader range of entertainment for concerts held in conjunction with the Palmdale Amphitheater’s 20th anniversary.
FISCAL IMPACT
There is no fiscal impact associated with this action. Funds are budgeted and available in Contract Services, Concert Program account 101-42001-722134-1088 to secure concert entertainment in Fiscal Year 23/24.
STRATEGIC PLAN
Goal IV: Maintain a desirable community where everyone wants to live, work and play.
D. Develop and maintain diverse programs and events that inspire growth, pride, and lifelong learning.
Prepared by: Janelle Samson, Director of Finance
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, Interim City Attorney
ATTACHMENTS
Resolution CC 2023-058
CITY COUNCIL
CITY OF PALMDALE, CALIFORNIA
RESOLUTION NO. CC 2023-058
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PALMDALE AUTHORIZING THE CITY MANAGER’S SIGNATURE AUTHORITY OF
UP TO $250,000 PER TRANSACTION FOR THE PURCHASE OF
PERFORMERS OR ENTERTAINMENT SERVICES.
WHEREAS, the City of Palmdale secures performers and entertainment services at various venues and events each year; and
WHEREAS, the City Manager’s spending authority limits the City’s ability to expeditiously respond to market conditions and secure performances exceeding $100,000 in a timely fashion; and
WHEREAS, increasing the City Manager’s spending authorization will allow the City to broaden the scope of performers and entertainers and secure services in a timely manner; and
WHEREAS, the purchase of performers and entertainer services are considered professional services and are addressed in the City’s purchasing procedures; and WHEREAS, the total entertainment budget for future fiscal years will be established by the City Council annually and shall not be exceeded by the City Manager.
NOW THEREFORE, BE IT RESOLVED, THE CITY COUNCIL OF THE CITY OF
PALMDALE DOES HEREBY FIND, DETERMINE, RESOLVE AND ORDER AS FOLLOWS:
SECTION 1 . Subject to the budget authorized by the City Council, the City Manager shall have signature authority up to $250,000 per transaction for the purchase of performers or entertainer services.
SECTION 2. Future fiscal year funding for performers or entertainer services will be approved by the City Council annually as part of the budget process.
SECTION 4. The City Clerk shall certify to the adoption of this resolution.
Resolution No. CC 2023-058
PASSED, APPROVED and ADOPTED this 4th day of October, 2023 _________________________________
Approved as to form: Laura Bettencourt, Mayor
ATTEST:
___________________________ _________________________________ William P. Curley, III Rochelle Scott, Acting City Clerk Interim City Attorney
I, Rochelle Scott, Acting City Clerk of the City of Palmdale, California, do hereby certify that the foregoing resolution was duly passed, approved, and adopted by the City Council of the City of Palmdale at a regular meeting of said Council held on the 4 th day of October, 2023 by the following roll call vote:
AYES:
NOES:___________________________________________________________ ABSTAIN:______________________ABSENT:___________________________ Date:
Rochelle Scott, Acting City Clerk
City Council Staff Report
DATE: OCTOBER 4, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY ATTORNEY’S OFFICE
DISTRICT: ALL
SUBJECT: APPROVE AGREEMENT WITH SEDGWICK CLAIMS
MANAGEMENT SERVICES INC. FOR CLAIMS ADMINISTRATION
SERVICES FOR A NOT-TO-EXCEED AMOUNT OF $207,799 FOR A
FIVE-YEAR TERM
ISSUE
Approve agreement with Sedgwick Claims Management Services Inc. for claims administration services for a not-to-exceed amount of $207,799 for a five-year term.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve Agreement with Sedgwick Claims Management Services, Inc.
2. Authorize the City Manager or her designee to execute Agreement with Sedgwick Claims Management Services, Inc. including non-substantive changes.
BACKGROUND
Sedgwick Claims Management Services (“Sedgwick”) has been the City’s third-party claims administrator since 2018 and under agreement until August 30, 2023. The company was founded in 1969 and has grown from a regional claims administrator to a leading global provider of technology -enabled risk, benefits , and integrated business solutions with 30,000+ colleagues, located across 80 countries. Through innovative product development and strategic acquisitions, Se dgwick’s offerings continue to evolve beyond claims processing to meet the current and future needs of their clients while simplifying the process and reducing complexity to make it easy and effective.
DISCUSSION
Staff proposes that the Council approve Agreement A -8479 with Sedgwick and authorize the City Manager or her designee to execute the agreement. This will ensure there is no lapse in claims administration . Sedgwick would continue to adjust and provide oversight of the loss adjustment process and monitor case reserves.
Report to Mayor and City Council
Re: Approve Agreement for Claims Administration Services between the City of Palmdale and Sedgwick Claims Management Services, Inc. (A-8479) October 4, 2023
FISCAL IMPACT
The fiscal impact for FY 2023-2024 will be $39,140, with a not-to-exceed amount of $207,799 for the five (5) year term of the agreement. Funds for this agreement are budgeted and available in the Risk Management - Liability Insurance Claims account 15014101-712000.
STRATEGIC PLAN
Goal I: Maintain effective public safety and protection for life, property, and the environment.
A. Be prepared to protect life, property, and the environment in the event of catastrophic disasters and emergencies.
Prepared by: Angie Barajas, Legal & Risk Coordinator
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, Interim City Attorney
ATTACHMENTS
Agreement with Sedgwick Claims Management Services (A-8479) 1 32132
AGREEMENT NO. A-8479
AGREEMENT FOR CLAIMS ADMINISTRATION SERVICES BETWEEN THE CITY OF PALMDALE AND SEDGWICK CLAIMS MANAGEMENT SERVICES, INC.
This Contract for services (“Contract” herein) is entered into the first day of September, 2023 (the “Effective Date”) by and between the City of Palmdale, a public body corporate and politic (hereinafter called “CITY”, and Sedgwick Claims Management Services, Inc. (hereinafter called “CONTRACTOR”).
WHEREAS, CITY desires to retain CONTRACTOR pursuant to terms and provisions of this Contract to provide Claims Administration Services on claims arising out of CITY’s self -insured general liability, automobile liability, property liability insurance programs (hereinafter collectively and individually referred to as the “Program”); and WHEREAS, CONTRACTOR desires to be retained by CITY pursuant to the terms and provisions of this Contract to provide Claims Administration Services on claims arising out of the Program; and
WHEREAS, CONTRACTOR, by ent ering into this Contract, will be obligated to provide Claims Administration Services to CITY on the terms and conditions set forth herein.
NOW THEREFORE, for an in consideration of the promises set forth hereinabove, and other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, CONTRACTOR and CITY agree as follows:
I. DEFINITIONS
A. “Claims Administration Services” shall include the administration, adjustment, management, oversight and handling of claims arising out of CITY’S Program.
Claims Administration Services shall also include, but not limited to, the following services:
1. Providing supervision of the loss adjustment process
2. Determining and implementing appropriate claims practices to conclude Claims in accordance with CONTRACTOR’s established practices;
3. Adhering to high standards of professional conduct;
4. Adjusting and managing Claims to assure that CITY and claimants receive high quality service;
5. Establishing, monitoring and timely revisions of case reserves;
6. Settling Claims within the applicable coverage terms and conditions (as advised by CITY)
7. Maintaining current knowledge of applicable adjustment practices and procedures, local practices, applicable insurance coverage, court decisions, 2 32132
current guidelines in the claims function, and Program changes and modifications (as advised by CITY);
8. Assisting in the preparation of Claims f or suit, hearing, trial or subrogation as appropriate;
9. Acting as CITY’s liaison with medical bill review ers, first notice of loss reporting services and defense counsel;
10. Reviewing bills of service providers and attorneys
11. Preparing and submitting status and administrative reports in accordance with CONTRACTOR’s established practices; and
12. Preserving subrogation rights and overseeing subrogation recovery.
B. “Claim” or “Claims” shall mean claims, arising under the Program and which are referred to CONTRACTOR for adjusting during the term of this Contract.
C. “Loss Adjustment Expense” shall mean, in addition to fees to be paid with Exhibit A of this Contract, all reasonable expenses necessary to the adjustment of a Claim in accordance with this Contract, i ncluding but not limited to, legal fees, court costs and fees for court reporters, expert witnesses, investigation, photocopies, subpoenas, photographs, bill review, utilization review and any other similar cost, fee, or expense reasonably chargeable to th e investigation, negotiation, settlement or defense of a Claim, loss, subrogation right or recovery. CONTRACTOR may, but need not, elect to utilize its own staff or affiliated entities to perform these services.
D. “Systems” shall mean severally or collectiv ely, CONTRACTOR’s proprietary claims handling system.
II. TERM OF CONTRACT
The term of this Contract shall commence on September 1, 2023, and shall continue until August 31, 2028 (the “Term”). This Contract may be terminated by either party at any time, provided that at least sixty (60) days’ prior written notice of the effective date of termination is given to the other party
III. CLAIMS ADMINISTRATION SERVICES
CITY hereby retains CONTRACTOR to provide Clai ms Administration Services, as set forth in this Contract, including Exhibit A attached hereto, for the Claims that arise out of CITY’s Program and that are assigned by CITY to CONTRACTOR.
A. The Claims Administration Services to be rendered by CONTRACTOR shall be in conformance with the requirements and provisions of this Contract together with applicable rules, orders and interpretations issued by the applicable regulatory authorities as of the date hereof.
3 32132
B. CONTRACTOR shall perform Claims Administrat ion Services for each Claim assigned to it hereunder in accordance with this Contract and Exhibit A.
C. CONTRACTOR acknowledges that execution of this Contract does not guarantee that CONTRACTOR will be assigned any particular number of Claims by CITY.
IV. DUTIES OF CONTRACTOR
A. CONTRACTOR will maintain sufficient staff with the necessary experience and management oversight. Adjusters assigned to Claims shall have a caseload that allows proper attention to the work.
B. To the extent required by law, CONTRACTOR will utilize only l icensed adjusters and licensed private investigators, where applicable, and such adjusters and investigators shall in the rendering of their services conform to the provisions of all applicable laws, rules, orders or written interpretations issued the appl icable regulatory authorities.
C. CONTRACTOR will investigate, evaluate, negotiate, settle or deny Claims within the standing authority granted to CONTRACTOR from time to time by CITY.
CONTRACTOR may settle Claims in excess of its standing authority limits only with prior written approval of CITY, which the CITY shall, in writing, promptly grant or deny upon CONTRACTOR’s request for authority.
D. CONTRACTOR acknowledges that all the Claims files in its possession are the property of CITY and agrees to promptly provide access to or deliver any such file to CITY, at CITY’s expense, at any time upon CITY’s request. In exchange for CITY’s absolute right to obtain the Claims files, CITY agrees that it shall not have the right to set off any sums claimed due fro m CONTRACTOR against fees due CONTRACTOR under this Contract.
E. CONTRACTOR expressly agrees to hold all funds and assets of CITY that come into its control or possession during the term of this Contract subject to regulatory limitations of deposits insured by FDIC.
F. CONTRACTOR will make available, through CONTRACTOR’s proprietary claims system, claim-related data with “web-enabled” access. CONTRACTOR will have “view only” access to the system. CONTRACTOR will bear its own hardware, software, connection and similar costs for accessing CONTRACTOR’S electronic claims management system.
G. During the Term of this Contract and at all times that there are open Claims being handled by CONTRACTOR, CONTRACTOR will fully cooperate with CITY.
H. During the Term of this Agreement and thereafter until all Claims assigned hereunder are closed CONTRACTOR agrees to:
4 32132
1. Maintain in force a fidelity bond or equivalent insurance, such as third-party crime insurance, for the protection of CITY, at a limit not less than one million dollars ($1,000,000), to cover the risk of loss due to the wrongful conversion of any funds and risk of loss due to the wrongful conversion of any funds and assets of CITY by CONTRACTOR or its employees or independent contractors during the term of this Contract;
2. Maintain in force a professional/errors and omissions policy, at a limit not less than one million dollars ($ 2,000,000) per wrongful act ; If policy is provided on a claims -made basis, CONTRACTOR will continue to renew the insurance for a period of three (3) years after this Contract expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Contrac t and will cover CONTRACTOR, or its officers, employees, or agents during the time this Contract was in effect.
3. Maintain in force a commercial general liability policy which provides limits not less than one million dollars ($1,000,000) per occurrence, two million dollars ($2,000.000) aggregate and two million dollars ($2,000,000) products/completed operations aggregate;
4. Maintain in force a workers’ compensation policy as required by the State of California and employers liability policy, which provides coverage to employees of CONTRACTOR at limits not less than one million dollars ($1,000,000); and
5. Maintain in force a commercial automobile liability policy with a combined single limit including owned, non -owned and hired coverage of not less than one million dollars ($1,000,000).
6. Policies providing for bodily injury and property damage coverage shall contain the following: An endorsement extending coverage to the City as an additional insured, as respects liability arising out of the performance of any work under the Contract. Commercial General Liability & Auto Liability insurance shall be primary insurance, as respects the interest of the CITY, any other insurance maintained by the CITY shall be considered excess coverage and not contributing insurance with the insurance required hereto..
I. CONTRACTOR will notify CITY’s insurer of all claims which may affect the insurer’s coverage in excess of CITY’s self-insured retention layer in accordance with the instructions of CITY’s insurer as provided to CONTRACTOR pursuant to Section V(A) of this Contract.
V. DUTIES OF CITY
A. CITY shall promptly provide CONTRACTOR with such information as CONTRACTOR may require, including but not limited to any copy of documents 5 32132
describing its Program, and all amendments thereto, including but not limited to documents submitted to any governmental tribunals for approval of the Program, as well as incident reports and information related thereto in CITY’s possession and otherwise cooperate with CONTRACTOR in carrying out CONTRACTOR’s tasks hereunder.
B. Upon receipt of loss notices, CITY shall promptly assign the loss to CONTRACTOR for adjusting.
C. CITY shall p romptly make funds available for Claim and Loss Adjustment Expense payments with respect to Claims referred to CONTRACTOR and respond to CONTRACTOR’s requests to issue checks in payment of Claims and such checks shall be distributed in accordance with CITY’s Claims processing procedures. CONTRACTOR, as CONTRACTOR may elect, shall have the right to suspend or discontinue its services hereunder in the event CITY does not timely provide such checks. Alternatively, CITY may direct that CONTRACTOR open and maintain an account to pay Claims and Loss Adjustment Expense with Funds provided by CITY as required for that purpose. All bank charges associated with these accounts shall be borne by CITY. CITY shall defend, indemnify and hold harmless CONRACTOR from and against all claims, costs, and expenses (including, but not limited to, attorneys’ fees and court costs) related to or arising out of CITY’s failure to timely fund the account. CONTRACTOR may (but shall not be required to) withdraw from the account funds to pay undisputed bills from CONTRACTOR to CITY and to pay the undisputed portions of undisputed bills from CONTRACTOR to CITY.
D. CITY shall provide CONTRACTOR with training material, along with initial and subsequent training on CITY’s forms and other documents affecting CITY’s obligations which are provided to CONTRACTOR and any written interpretation thereof issued by CITY or any applicable regulatory body. During the Term of this Contract and at all times that there are open Claims being handled by CONTRACTOR, CITY shall fully cooperate with CONTRACTOR.
E. CITY covenants and agrees that CITY , its employees, agents or independent contractors, will not misuse information contained within the Claims files.
CITY further covenants and agrees to maintain the confidentiality of the information contained within the Claims files, as required by applicable State and Federal law and regulations.
F. CITY shall pay CONTRACTOR for Claims Administration Services in accordance with Section VII of this Contract.
VI. SYSTEMS AND DATA PROCESSING
A. Although CONTRACTOR authorizes CITY to use or have access to its Systems in performance of Claims Administration Services enumerated in this Contract, this does not license CONTRACTOR’s system to CITY nor shall CITY have, or assert, any property interest w hatsoever in the Systems during and/or in the course of 6 32132
CONTRACTOR’s performance under this Contract, whether or not such improvements or additions were made at the suggestions, request or direction of CITY. Notwithstanding the foregoing, CONTRACTOR expressly agrees that Claim-related data generated and/or maintained in connection with this Contract or any Exhibit hereto shall be and remain the sole property of CITY and CONTRACTOR shall have no right, title, or interest in such data other than such rights n ecessary to perform Claim Administration Services.
CONTRACTOR shall use anonymized, aggregated data for auditing, compliance, internal assessments, process improvement and related analytics.
B. This Contract grants to CITY no right to possess or reproduce all or any part of the Systems used, owned, or controlled by CITY performing all or any part of Claims Administration Services and CITY covenants that it shall not do so.
C. CONTRACTOR warrants any System furnished against malfunctions, errors or loss of data which are due solely to errors on its part. If CITY notifies CONTRATOR in writing and furnishes adequate documentation of any such malfunction, error, and loss data then:
1. In the event of a ma lfunction, error, or loss of data, upon notice by CITY within twenty (20) days of the malfunction, CONTRACTOR will without any additional fee re-create the reports designated by CITY, using data as of the recreation date; and
2. The maximum and only liabil ity of CONTRACTOR for such malfunction, error or loss of data shall be its obligation to reprocess reports or regenerate data as described above.
D. THE WARRANTIES STATE IN THIS SECTION ARE IN LIEU OF ALL
OTHER WARRANTIES, EXPRESS OR IMPLIED INCLUDING, BUT NOT LIMITED TO,
ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS OFR A PARTICULAR
PURPOSE, ANY SOFTWARE, HARDWARE, EQUIPMENT OR DATA SUPPLIED TO CITY BY CONTRACTOR. IN NO EVENT SHALL CONTRACTOR BE LIABLE FOR ANY
LOSS OR DAMAGE TO REVENUES, PROFITS OR GOODWILL OR OTHER SPECIAL,
INDIRECT, INCIDENTAL OR CONSEQUENTIAL DAMAGES OF ANY KIND RESULTING
FROM ITS PERFORMANCE OR FAILURE TO PERFORM UNDER THIS SECTION OR
RESULTING FROM THE FURNISHING, PERFORMANCE, USE OR LOSS OF USE OF
ANY SOFTWARE PROVIDED TO CITY HE REUNDER, INCLUDING WITHOUT
LIMITATION ANY INTERRUPTION OF BUSINESS, EVEN IF CONTRACTOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH LOSS OR DAMAGE. THIS SECTION OF THE CONTRACT SHALL SURVIVE THE TERMINATION OF THE CONTRACT.
VII. COMPENSATION
A. CONTRACTOR shall be entitled to receive, and CITY shall be obligated to pay such fees, allowances, costs, reimbursements, or other compensation as are specified in Exhibit A.
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B. CITY shall pay CONTRACTOR the fees under Exhibit A of this Contract no later than thirty (30) days after CITY’s receipt of CONTRACTOR’s invoice as rendered from time to time. Timely payment is an express condition of CONTRACTOR’s obligations hereunder. CITY shall identify the CONTRACTOR’s invoice to which the payment applies and in the absence of said identifier, CITY approves CONTRACTOR’s application of the payment to the oldest outstanding fees, costs, or invoice. If CITY disagrees with any item on any bill, CITY shall set forth the particulars of such disagreement in writing within thirty (30) days of receipt of the bill and pay the undisputed portion of the bill. Unless CITY sets forth its disagreement with a bill as aforesaid, a bill shall be conclusively presumed valid and correct. Notwithstanding the prior sentence, in the event an aud it by either party discovers that CITY has underpaid or was under billed, invoices shall be adjusted to reflect agreed upon fees. Any bills not paid within fifteen (15) days after notice that it is past due shall bear interest at the lessor of the one and one-half percent (1 ½%) per month or he interest rate allowed by law. If CONTRACTOR engages an attorney to collect past due amounts, the reasonable cost of such attorney together with interest as aforesaid and court costs shall be added to the amount and shall be recoverable as part thereof.
VIII. AUDIT
A. CONTRACTOR will maintain books, records, report, and other documents, in electronic or other format reasonably acceptable to CITY relating solely and exclusively to its Claims Administration Services performed under this Contract. All such records and documents pertaining to Claims and the Claims Administration Services rendered by CONTRACTOR shall be the property of CITY and be open for inspection, audit and copying, at CITY’s expense, by CITY and its agents or their representatives at a time and place and in a manner mutually to both parties during regular business hours with reasonable prior written notice to CONTRACTOR. CONTRACTOR will cooperate fully with all such agents or other representatives of C ITY during audits or examinations conducted by CITY or its agents. CITY agrees to the disclosure to CONTRACTOR of all information and reports resulting from access to records pursuant to the subsection above. If an auditing agency is utilized by CITY to pe rform an audit pursuant to this Contract, the auditing agency will afford the CONTRACTOR an opportunity for an audit exit conference and an opportunity to comment on the pertinent portions of the draft audit report. The final audit report will include the written comments, if any, of the audited parties. The preceding notwithstanding, it shall be a condition precedent that prior to any third party inspection, audit or copying that such third party shall have entered into a nondisclosure agreement with Cont ractor upon terms and conditions reasonably acceptable to Contractor.
B. For six (6) months following termination of this Contract, CITY shall have the right to conduct the audit described in Section VIII (A) at CITY’s expense plus CONTRACTOR’s then current service charge for audit support services. 8 32132
C. Audits pursuant to this Section VIII shall be conducted in a manner that does not interfere with CONTRACTOR’s daily operations.
IX. CONFIDENTIALITY
A. Both parties hereto acknowledge and agree that CITY’s information, data, and documentation, including but not limited to, non -public and personal information subject to the provisions of the Gramm -Leach-Billey Act, 15 U.S.C. Subchapter 1, Sections 6801 -6809 et. Seq. , personal health information under the Heal th Insurance Portability and Accountability Act, 42 U.S.C. 1301, et seq., and further including, but without limitation, all information, data and documentation related to manuals, lists, policyholder information, operating and other systems, business prac tices and procedures, any information regarding insureds insurance policies, claimants and Claims, any business, governmental or regulatory matters of CITY, and other information furnished to or obtained by CONTRACTOR, pursuant to or in connection with thi s Contract or in connection with the Claims Administration Services to be rendered, may be confidential (“Confidential Information”). CONTRACTOR will not divulge, disclose, or use the Confidential Information except for purposes of this Contract, or as may be expressly agreed in writing by the parties, or as may otherwise be required or directed by applicable law or judicial process. This Section IX shall survive the termination of this Contract, regardless of the reason for termination.
B. During the Term of this Contract, and after its termination for any reason, CITY shall have the right to request in writing and receive from CONTRACTOR a copy of CITY’s Claim files and Claim -related records in CONTRACTOR’s possession.
CONTRACTOR agrees that CONTRACTOR m ay seek an injunction by a court of competent jurisdiction enjoining CONTRACTOR from violating any terms of this Contract or the confidentiality and non-use provisions of this Section IX. Injunctive relief shall be in addition to any other remedies that CI TY may have under the law. Notwithstanding the foregoing, CONTRACTOR may retain, during the Term of this Contract and after its termination, a copy of Claims files and the data therein including any Confidential Information contained in any computers, hard drives, servers or other data storage systems of CONTRACTOR, for accounting, insurance, archival audit, and similar purposes. CONTRACTOR will secure said record copy against improper use or disclosure.
C. CONTRACTOR shall be solely responsible for inform ing its employees, officers, and directors of the provisions of this Section and for any acts of its employees, officers or directors that violate the provision of this Section.
D. Notwithstanding the foregoing, CITY agrees that information used for adjusting Claims is not subject to statutory or regulatory restrictions against disclosure for that purpose.
X. INDEMNIFICATION
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A. CONTRACTOR agrees to indemnify CITY and its directors, officers and-, employees from and against any and all causes of action, claims, damage, loss, costs and expenses (including, without limitation, fines, damages, liabilities, liens, losses, costs and expenses, including reasonable attorney’s fees and litigation expenses) incurred by CITY, its directors, officers, employees, arising directly from any material breach of this Contract, or to the extent attributable to any negligent act, negligent omission , or willful misconduct, in each case by CONTRACTOR, its officers, directors, attorneys, employees or agents but only to the extent such causes of action, claims, damage, loss, costs and expenses (including, without limitation, fines, damages, liabilities, liens, losses, costs and expenses, including reasonable attorney’s fees and litigation expenses) are not due to the City’s own acts or omissions.
B. CITY agrees to indemnify, defend and hold harmless CONTRACTOR and its directors, officers, employees, and agents, from and against any and all causes of action, claims, damage, loss, costs and expenses (including, without limitation, fines, damages, liabilities, l iens, losses, costs and expenses, including reasonable attorney’s fees and litigation expenses) incurred by CONTRACTOR, its directors, officers, attorneys, employees and agents, to the extent such cause of action, claim, damage, loss, cost or expense is no t attributable to CONTRACTOR’s material breach of this contract, or the negligent or otherwise wrongful act or omission of CONTRACTOR.
Notwithstanding anything to the contrary contained in the above paragraph, it is understood and agreed that if City, directly or through a subcontractor or vendor of City’s choosing (“City Subcontractor”), retains administration of a claim or performs any services for a claim Contractor administers, or if City otherwise directs the administration of a claim, City will indem nify, defend, and hold Contractor, its officers, directors and employees harmless from the losses, damages, costs, judgments and expenses (including attorneys’ fees and costs) as a result of any litigation or proceeding, fines, penalties, revocation of license, or any other state regulatory investigation or action arising against Contractor related to the acts or omissions of City or the City Subcontractor.
If City’s access to claim data includes the ability to add and modify data, Contractor shall not be required to verify, or otherwise be responsible for, the accuracy of data added or modified by City. City shall indemnify, defend and hold Contractor, its officers, directors, and employees harmless for any loss, cost (including attorney’s fees), claim or judgment which is attributable to City’s input or modification of data C. The above defense, indemnification and hold harmless undertakings shall survive the termination of this Contract.
D. CITY acknowledges that CONTRACTOR has been engaged to provide professional services and that it is not the intent of the parties that CONTRACTOR assume any insurance risk. CONTRACTOR shall not act as an insurer for CITY , and this Contract shall not be construed as an insurance policy or a contract or agreement of indemnity; it being understood that CONTRACTOR is in no event financially responsible for payment or satisfaction of claims, lawsuits, or any form of cause of action a gainst 10 32132
CITY. The parties agree that the foregoing defense, indemnification, and hold harmless undertakings represent a reasonable allocation of commercial risk between the parties.
E. Except as regards CITY’s obligation to pay fees in accordance with Section VII of this Contract, the parties agree that in no event shall the liability of either party under this Contract exceed the fees paid or due to CONTRACTOR for the six (6) months immediately prior to the event from which the claim or matter arises.
XI. BREACH AND TERMINATION
A. If a material breach by either party of this Contract occurs, the non - breaching party shall indemnify the breach by delivery of written notice thereof to the breaching party.
B. Upon delivery of written notification of breach, the breaching party shall have a period of five (5) calendar days within which time the breaching party shall cure the breach. Should the breaching party fail to fully cure the breach within the designated time frame, the non -breaching party may terminate this Contract: (i) immediately by CONTRACTOR if breach due to failure to pay fees due CONTRACTOR under Exhibit A, or (ii) in thirty (30) days by delivery of written notice of termination to breaching party. Any notice of breach or termination shall be delivered pursuant to Section XIII(C) hereto.
C. This Contract may be terminated by a party without the necessity of any notice or right to cure, upon the occurrence of any of the following events:
1. The expiration of the Term set forth in Section II or an y renewal thereof; or
2. The commencement of bankruptcy, insolvency, or
conservatorship proceedings by the other party, or, if such proceedings are brought against the other party, the other party’s failure to have such proceedings dismissed within forty-five (45) days.
D. CONTRACTOR may terminate this Contract and discontinue Claims Administration Services immediately upon notice to CITY, if CITY fails to maintain sufficient balances in the account to properly and adequately fund daily maintenance and indemnity needs, as well as settlement of Claims and any Loss Adjustment Expense. At no time shall CONTRACTOR be liable or obligated to make any payments, out of CONTRACTOR’S own funds, of any type or character on behalf of CITY, including benefits CITY is legally require d to provide to its employees.
XII. EQUITABLE ADJUSTMENT
A. CITY shall have the right to direct CONTRACTOR to perform additional services or to perform services in a specific or different way.
Notwithstanding the foregoing, the pricing for the account was developed with the understanding that CONTRACTOR shall determine the appropriate service 11 32132
providers for Loss Adjustment Expense, including without limitation the provider of managed care services.
B. This Contract contemplates that the stan dards applicable to this Contract are those in effect on the date of this Contract, whether such standards are set forth in statutes, regulations, rules, orders, case law or otherwise.
C. In the event of a directive from CITY as set forth in Section XII(A) or a change in a standard as set forth in Section XII(B), CONTRACTOR shall be entitled to an equitable adjustment in its compensation if such directive or change increases CONTRACTOR’s cost of providing the services CONTRACTOR renders under this Contract or reduces its profitability.
XIII. GENERAL
A. CONTRACTOR shall not be liable or deemed in default for any delay or failure in performance under this Contract or any Exhibit of this Contract, or any interruption of Claims Administration Serv ices resulting directly or indirectly, from acts of God, civil or military authority, or any similar cause beyond the reasonable control of CONTRACTOR for as long as such condition exists. CONTRACTOR will give notice to CITY as soon as practicable, of an y delay or failure in performance or of any interruption of Claims Administration Services that has or may occur as soon as CONTRACTOR becomes aware of such events.
B. If any dispute or claim arises hereunder that the parties are not able to resolve amicabl y, the parties agree and stipulate that such litigation shall be resolved in the court of competent jurisdiction in the State of California, and the parties irrevocably submit to the exclusive venue and jurisdiction of either such court for the purpose of any such action or proceeding. In the event of a dispute between the parties resulting in litigation, the prevailing party may, in addition to any other relief obtained, recover its court costs and reasonable attorney’s fees.
C. All notices which are requ ired to be given or submitted pursuant to this Contract shall be in writing and shall be transmitted or delivered by certified mail, return-receipt requested or by a commercial overnight delivery service to the parties at the addresses set forth below, or to such other addresses as a party may, by notice, specify:
Notices to CONTRACTOR shall be delivered to:
Sedgwick Claims Management Services Inc.
8125 Sedgwick Way
Memphis, TN 38125
Attention: General Counsel - Americas
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Notices to CITY shall be delivered to:
City of Palmdale
City Attorney’s Office
38300 Sierra Highway, Suite A
Palmdale, CA 93550
Attention: Angie Barajas, Legal & Risk Coordinator
D. This Contract and any Exhibit made a part hereof constitute the entire Contract between the parties and supersedes and merges any and all prior discussions, representations, negotiations, correspondence, writing, and other agreements and together states th e entire understanding and agreement between CITY and CONTRACTOR with respect to Claims Administration Services to be provided hereunder.
Except as unilateral changes made by the CITY pursuant to Section XII, for which CONTRACTOR shall be entitled to an eq uitable adjustment in its compensation, this Contract may be amended or modified only in writing if agreed to and signed by CITY and CONTRACTOR and shall be deemed to have been entered into and executed in the State of California and shall be construed, performed and enforced in all respects in accordance with the laws of the State of California.
E. No party hereto shall be deemed to have waived any rights or remedies accruing to it hereunder unless such waiver is I writing and signed by such party. No delay or omission by either party hereto in exercising any right shall operate as a waiver of said right on any future occasion. All rights and remedies hereunder shall be cumulative and may be exercised singularly or concurrently.
F. The descriptive heading s of this Contract are intended for reference only and shall not affect the construction or interpretation of this Contract.
G. Wherever the singular of any term is used herein it shall be deemed to include the plural wherever the plural thereof may be applicable.
H. No party may assign its rights or obligations under this Contract; provided, however, that CONTRACTOR may subcontract part of the Claims Administration Services, required hereunder and may at its discretion delegate to a subsidiary or affiliate such of its duties as it deems appropriate, provided that such subcontracting or delegation shall not relieve CONTRACTOR of any of its obligations hereunder.
I. It is expressly understood and agreed that the relationship of CONTRACTOR to CITY shall be that of an independent contractor at all times, and nothing herein shall constitute either the CONTRACTOR or CITY as the partner, agent, or legal representative of the other, for any purpose whatsoever, except to the extent that CONTRACTOR is the agent of CITY for the purpose of adjusting Claims. CONTRACTOR shall have no right or authority to bind or obligate CITY with respect to any matter that is 13 32132
not specifically provided for in this Contract without the prior approval of CITY . All employees or agents of CONTRACTOR performing duties hereunder for CONTRACTOR shall be solely and exclusively under the direction and control of CONTRACTOR and shall not be deemed employees of CITY.
J. Nothing in this Contract is intended to require CONTRACTOR to engage in the practice of law and Claims Administration Services provided shall not be considered legal advice.
K. CITY shall not utilize CONTRACTOR’s trade names, l ogos, trademarks, service marks or other identification in any press release, advertisement, marketing materials, promotional literature, article, presentation or other type of communication without the prior written consent of CONTRACTOR, which consent may be withheld or denied in CONTRACTOR’s sole discretion.
L. CITY shall not hire any employee of CONTRACTOR or induce any employee of CONTRACTOR to terminate his or her employment (or encourage, and aid or abet any third party to do the same) at any time during which this Contract or any extension or renewal thereof is in effect and for a period of twelve (12) months thereafter.
CITY agrees and acknowledges that CONTRACTOR has invested time and resources in training its personnel and familiarizing them with CITY’s account and that CONTRACTOR will suffer harm, the extent of which is difficult to quantify, should CITY directly or indirectly cause CONTRACTOR’s employee to terminate their employment with CONTRACTOR.
Therefore, in the event that CITY violates this provision, CITY shall be liable to CONTRACTOR for liquidated damages in a sum equal to the employee’s salary for two (2) years based on the employee’s salary over the two (2) months prior to the termination of that employee’s employment with CONTRACTOR.
IN WITNESS WHEROF, the parties hereto have read and signed this Contract and it is effective as of the Effective Date of this Contract first above written.
CITY OF PALMDALE SEDGWICK CLAIMS
MANAGEMENT SERVICES, INC.
____________________________ ______________________________ Ronda Perez J. Edward Peel
City Manager Vice President
Dated: ______________ Dated:_________________
September 6, 2023
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APPROVED AS TO FORM:
_____________________________
William P. Curley, III
Interim City Attorney
ATTEST:
_____________________________
Roxanne Faber
Acting City Clerk
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EXHIBIT A
City will pay a flat annual fee for claims administration on a Life of Contract basis for the services provided during the term of this Contract as follows:
Contract Period Flat Annul Rate
9/1//2023 – 8/31/2024 $39,140.00
9/1/2024 – 8/31/2025 $40,314.00
9/1/2025 – 8/31/2026 $41,523.00
9/1/2026 – 8/31/2027 $42,769.00
9/1/2027 – 8/31/2028 $44,053.00
Life of Contract applies to claims reported during the contract term and covers handling until conclusion without additional charge so long as the CITY continues to renew subsequent contracts. If any subsequent contract is cancelled or not renewed, the CITY may require CONTRACTOR to return all open claims, unless CONTRACTOR and the CITY agree that CONTRACTOR will continue the administration of open claims for an additional negotiated fee per open claim feature or time and expense.
The flat annual rate includes access for one (1) ViaOne user at no charge.
CONTRACTOR will make available, through Sedgwick’s proprietary claims system, claim-related data with “web-enabled” access. CITY will have “view only” access to the system for the term. CITY will bear responsibility for its own hardware, software, connection and similar costs for accessing the electronic claims management system.
Miscellaneous Expenses:
Additional access to ViaOne is available for a fee of $870.00 per user per year, if needed.
Outside Activity/Field Investigations are not included in the flat annual rate.
MMSEA/SCHIP Medicare report fee: One-time $9 charge per claim for claims involving bodily injuries (workers’ compensation, liability, no fault).
City Council Staff Report
DATE: OCTOBER 4, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: CITY MANAGER DEPARTMENT
DISTRICT: ALL
SUBJECT: APPROVAL OF THE CITY COUNCIL’S DISCRETIONARY FUNDS
POLICY AND PROCEDURES
ISSUE
Approval of the City Council’s Discretionary Funds Policy and Procedures.
RECOMMENDATION
Staff recommends approval of the City Council’s Discretionary Funds Policy and Procedures.
BACKGROUND
Commencing with Fiscal Year 2023-2024, each Council District was appropriated $15,000 annually to serve different community benefit purposes. Some examples of Discretionary Funding classifications include and are not limited to local needs within the Council District, community programs, events, and initiatives . Specific categories may be developed through Council practice over the years and are subject to change.
DISCUSSION
The Discretionary Funds Policy and Procedures provides a mechanism for members of the City Council to foster transparency and accountability in using the Funding.
By law, all public funds must be used for a public purpose. Any entity requesting discretionary funding must demonstrate the benefit that funded programs or services will have on the community.
Requesting parties shall submit a funding request via email to [email protected]. Funding requests wil l be forwarded to the appropriate Councilmember for review. A member of the City Manager’s Department will notify the requestor whether the request has been approved or denied.
A report of eligible requests will be provided to all members of the City Council, and copies will be publicly available at City Hall and published on the City’s website.
Report to Mayor and City Council
Re: Approval of the City Council’s Discretionary Grant Policy and Procedures October 4, 2023
Each awardee will submit a report with receipts and proof of expenditures of the funds and appropriate backup documentation as outlined in the policy. The report will be submitted within 30 days of project completion or by June 30 of the fiscal year in which the funds were awarded, whichever is sooner.
FISCAL IMPACT
The FY 23-24 budget includes funding for the City Council Discretionary Funds at $15,000 per Council District for a combined total of $75,000. Funds are budgeted under General Fund Accounts: 10111001-741160-0001, 10111001-741160-0002, 10111001-741160- 0003, 10111001-741160-0004, and 10111001-741160-0005.
STRATEGIC PLAN
Goal IV: Maintain a desirable community where everyone wants to live, work and play.
Objective A: Support opportunities to celebrate rich traditions and diverse cultures in the community.
Objective B: Provide inclusive access to a variety of supportive services that build a resilient and healthy community.
Prepared by: Terrie Zayas, City Council Chief of Staff
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, Interim City Attorney
ATTACHMENTS
1. Discretionary Funds Policy & Procedures
CITY COUNCIL
DISCRETIONARY FUNDS POLICY &
PROCEDURES
Effective: October 4, 2023
CITY COUNCIL DISCRETIONARY FUNDS POLICY & PROCEDURES
TABLE OF CONTENTS
Introduction .......................................................................................................... 1 Finding of Public Purpose and Consideration to the City of Palmdale ................. 1 What is Discretionary Funding? ........................................................................... 1 Demonstrating Public Benefit ............................................................................... 1 Eligibility Standards .............................................................................................. 2 Request and Approval Process ............................................................................ 3 Disbursement and Use of Funds .......................................................................... 3 Post Funding Requirements ................................................................................. 3 1 Introduction
As stewards of public funds, the City recognizes that the community deserves to know that discretionary funds are going to recipients with the capacity and integrity to provide quality community services. Members of the City Council are authorized to designate Discretionary Funds to meet local needs and fill gaps in City services.
The City Council has established a set of processes for transparency and accountability in the use of Discretionary Funding, including:
A report of eligible requests will be provided to all members of the City Council, and copies will be publicly available at City Hall and published on the City’s website and
To ensure that the recipient and Councilmembers comply with the guidelines.
This guide describes the discretionary funding policies and procedures of the Palmdale City Council. It is for all interested persons, including community members seeking City Council discretionary funds, City Staff, the public, and all persons, firms, and entities.
Finding of Public Purpose and Consideration to the City of Palmdale The City recognizes, appreciates, and hereby finds and declares the value of local community members who provide community services and programs that benefit the community and enrich the well-being of its residents. These programs present valuable benefits and consideration while fulfilling public purposes that the City Council and each member deem substantial and material value to the City of Palmdale.
What is Discretionary Funding?
Discretionary funding is an appropriated amount of money in the City’s annual budget allocated to a Member of the City Council.
Each Council District receives an annual amount of $15,000 to serve different community benefit purposes. Some examples of discretionary funding categories include but are not limited to local needs within the Council District, community programs, events, and initiatives. Specific categories may be developed through Council practice over the years and are subject to change.
Demonstrating Public Benefit
By law, all public funds, no matter how awarded, must be used for a public purpose. In general, a public purpose is defined as an activity or service that is open and accessible to all public members regardless of race, creed, gender, sexual orientation, religious affiliation, etc., without restriction. It is imperative for the entity requesting funding through 2 this program to demonstrate the benefit that funded programs or services will have on the Palmdale Community.
Where it is appropriate for the City to allocate public funds are as follows:
When an entity provides a service that complements or enhances a service that the City also provides;
When there is an identifiable secondary or indirect benefit to the City; and, When the entity provides a service to augment/complement City services.
Eligibility Standards
Eligibility:
To be eligible for funding, the requestor:
Must be located within the City of Palmdale or provide community, environmental, or social services to the Palmdale community;
Must directly provide the community service(s) for which the City funds are sought; Must have no outstanding debt due to the City;
Must not be financially dependent upon receiving City support to meet the budget and operational requirements;
Can be a recognized entity under the rules of the California Franchise Tax Board, Secretary of State, and the Federal Internal Revenue Service, if applicable Have a current Palmdale Business License, if applicable.
Ineligibility:
City discretionary funds may not be used for any of the following activities unless expressly requested by a Council Member:
Individuals;
For profit-organizations;
Political Action Committees (PAC), political candidates, or political campaigns; Using funds to challenge City activities, plans, or actions; or The payment of outstanding debts
The purchase of alcoholic beverages;
Travel, meals, lodging, or entertainment expenses;
Permanent improvements to any non-City owned structure or property so that it becomes an integral part of the real property, and its removal would do harm to the building or land, including those improvements that are bolted, nailed, screwed, or wired into the wall, ceiling, or floor; or,
3 General operating expenses or expenses to support the ongoing operation of the applicant, including, but not limited to, salaries, utilities, and rent expenses.
Request and Approval Process
1. The requesting parties shall submit a funding request via email to [email protected].
2. A member of the City Manager’s Department will notify the awardee in an email response whether the request is approved or denied.
3. A member of the City Manager’s Department will reach out to the awardee for the following information:
a. An invoice that includes the following information:
i. Legal name and address of the awardee
ii. Invoice Date
iii. Description of service
iv. The Total Amount
b. A completed W-9 form https://www.irs.gov/pub/irs-pdf/fw9.pdf c. A current Palmdale Business License, if applicable.
4. Once all the required information is received, a payment request will be submitted to the Finance Department, and a check will be issued on the next scheduled check run per the City’s payment process.
Disbursement and Use of Funds
1. Funds approved for appropriations must be used per the approved request or returned to the City.
2. A copy of this policy will be included with the funding check payable to the awardee.
Post Funding Requirements
Each awarded entity shall submit a reasonably detailed report, with receipts and proof of expenditures of the funds and proper backup documentation to substantiate those funds were expended appropriately. The report shall be submitted within 30 days of the end of the project or by June 30 of the fiscal year in which funds were awarded. Mandatory documentation is as follows:
Invoices/receipts documenting the expenditure of funds; and A summary that explains all expenditures, including how they specifically benefited Palmdale residents, may include pictures or other documents illustrating the use of the funds.
If funds are not expended in accordance with the City’s Request and Approval Process, the awardee will be required to refund the award. The City reserves the right to request additional backup information to substantiate how funds received from the City were 4 expended. Failure to spend the funds within the approved fiscal year, to provide proper documentation, and/or to utilize the funds for the intended purpose may jeopardize future funding opportunities.
The Finance Department will maintain the pertinent records for the City Council Discretionary Funds, which are public records.
Copies of the written report specified in the section above must be submitted to the City Manager’s Department, 38300 Sierra Highway, Suite A, Palmdale, CA 93550, outlining how the funds were used within 30 days of the expenditure. This report may be any reasonable form that sets forth all required proof of records. If you have any questions regarding the Council’s Discretionary Funds, please contact the City Manager’s Department at 661-267-5115.
City Council Staff Report
DATE: OCTOBER 4, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: FINANCE DEPARTMENT
INFORMATION TECHNOLOGY DIVISION
DISTRICT: ALL
SUBJECT: APPROVE AGREEMENT WITH DELL TECHNOLOGIES, INC. TO
PROVIDE DATA CENTER HARDWARE, CONFIGURATION
SERVICES, AND HARDWARE SUPPORT IN THE NOT TO EXCEED
AMOUNT OF $344,822 FOR A TERM OF FIVE (5) YEARS.
ISSUE
Approve Agreement with Dell Technologies, Inc. to provide data center hardware, configuration services, and hardware support in the not to exceed amount of $344,822 for a term of five (5) years.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve Agreement No. A-8493 with Dell Technologies, Inc. in the not to exceed amount of $344,822 for a term of five (5) years.
2. Authorize the City Manager or her designee to execute the five-year Agreement A-8493 with Dell Technologies, Inc., with the option to extend the agreement for two (2) additional one -year terms, including making minimal or non -substantive changes.
BACKGROUND
The IT Division utilizes a central storage area network system (SAN), which is a computer network that provides access to consolidated, block -level data storage. The SAN provides direct -attached storage to approximately 90% of all current IT systems , supporting applications, file shares, and other critical services. The current centralized storage system w as purchased seven years ago for approximately $450,000 . The average lifespan for equipment of this type is typically 5 to 7 years. The manufacturer (NetApp) is discontinuing support on all systems in this product line by the end of 2023.
Report to Mayor and City Council
Re: Approve Storage and Server Infrastructure, Agreement No. A-8493 October 4, 2023
DISCUSSION
The central storage system is critical to every day City operations. A failure could result in the loss of department file shares and many internally hosted applications, including records management and maintenance asset/work order management. Furthermore, implementing the replacement system would not only replace the SAN but would also allow the IT Division to consolidate at least nine other physical servers within the same platform due to technological improvements. These physical servers are already due for replacement, which will save the City approximately $200,000 in additional hardware replacement costs in the next fiscal year.
Hardware, configuration services, and support for this agreement are being procured through Dell NASPO Computer Equipment PA – California contract code C000000181156.
FISCAL IMPACT
$344,822; Funds for this project are budgeted and available in account 15316001-774400 in Fiscal Year 2023-24.
SCOPE OF WORK COST
Hardware $280,648
Tax $22,391
Deployment and Professional Services $10,436
Contingency (10%) $31,347
Total Cost: $344,822
STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.
A. Seek innovative, cost-effective, customer-focused methods of service delivery.
Prepared by: Matthew Kunze, IT Analyst
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William Patrick Curley III, Interim City Attorney
A quote for your consideration
Based on your business needs, we put the following quote together to help with your purchase decision. Below is a detailed summary of the quote we’ve created to help you with your purchase decision.
To proceed with this quote, you may respond to this email, order online through your Premier page
, or, if you do not have Premier, use this
Quote to Order
.
Quote No.
3000158289890.2
Total
$313,474.66
Customer #
6940179
Quoted On
Aug. 10, 2023
Expires by
Sep. 09, 2023
Contract Name
Dell NASPO Computer
Equipment PA - California
Contract Code
C000000181156
Customer Agreement #
MNWNC-108 / 7-15-70-34-
003
Solution ID
18053992.29
Deal ID
23626292
Sales Rep
Charlie Ballon
Phone
(800) 456-3355, 80000
Email
[email protected]
Billing To
STUART THOMPSON
CITY OF PALMDALE
38300 SIERRA HWY
STE D
PALMDALE,
CA
93550-4611
Message from your Sales Rep
Please contact your Dell sales representative if you have any questions or when you are ready to place an order.
Thank you for shopping with Dell!
Regards,
Charlie Ballon
Shipping Group
1 of 3
Shipping To
MATHEW KUNZE
CITY OF PALMDALE
38300 SIERRA HWY
PALMDALE,
CA
93550
(661) 267-5537
Shipping Method
Standard Delivery
Install At
MATHEW KUNZE
CITY OF PALMDALE
38300 SIERRA HWY
PALMDALE,
CA
93550
(661) 267-5537
Solution Name:
5-Node NVMe
Product
Unit Price
Quantity
Subtotal
AX-750
$51,598.91
5 $257,994.55
Dell Marketing LP. U.S. only. Dell Marketing LP. is located at One Dell Way, Mail Stop 8129, Round Rock, TX 78682
Shipping Group
2 of 3
Shipping To
MATHEW KUNZE
CITY OF PALMDALE
38300 SIERRA HWY
PALMDALE,
CA
93550
(661) 267-5537
Shipping Method
Standard Delivery
Install At
MATHEW KUNZE
CITY OF PALMDALE
38300 SIERRA HWY
PALMDALE,
CA
93550
(661) 267-5537
Solution Name:
Switches
PowerSwitch S5224-ON
$11,326.64
2 $22,653.28
Shipping Group
3 of 3
Shipping To
MATHEW KUNZE
CITY OF PALMDALE
38300 SIERRA HWY
PALMDALE,
CA
93550
(661) 267-5537
Shipping Method
Standard Delivery
Install At
MATHEW KUNZE
CITY OF PALMDALE
38300 SIERRA HWY
PALMDALE,
CA
93550
(661) 267-5537
Solution Name:
Migration
Non-tied Enterprise Deployment and Professional Services - [DELLSTAR_1211]
$10,436.26
1 $10,436.26
Subtotal:
Shipping:
Non-Taxable Amount:
Taxable Amount:
Estimated Tax:
Total:
$291,084.09
$0.00
$72,639.46
$218,444.63
$22,390.57
$313,474.66
Dell Marketing LP. U.S. only. Dell Marketing LP. is located at One Dell Way, Mail Stop 8129, Round Rock, TX 78682
Shipping Group 1 of
3, Details
Shipping To
MATHEW KUNZE
CITY OF PALMDALE
38300 SIERRA HWY
PALMDALE,
CA
93550
(661) 267-5537
Shipping Method
Standard Delivery
Install At
MATHEW KUNZE
CITY OF PALMDALE
38300 SIERRA HWY
PALMDALE,
CA
93550
(661) 267-5537
Solution Name:
5-Node NVMe
Quantity
Subtotal
AX-750
Estimated delivery if purchased today:
Aug. 24, 2023
Contract # C000000181156
Customer Agreement #
MNWNC-108 / 7-15-70-34-003
$51,598.91
5 $257,994.55
Description
SKU
Unit Price
Quantity
Subtotal
2.5 Chassis
379-BDTF
-
5 -
NVMe Backplane
379-BDSX
-
5 -
No Rear Storage
379-BDTE
-
5 -
No GPU Enablement
379-BDSR
-
5 -
Dell EMC AX-750
210-BBSN
-
5 -
Azure Stack HCI Operating System
379-BEHV
-
5 -
Luggage Tag Label, Azure Stack HCI
350-BCBR
-
5 -
NVMe Node, Azure Stack HCI
350-BCCE
-
5 -
Lug Tag, Azure Stack HCI AX-750
350-BCGU
-
5 -
All NVMe Config
350-BCCB
-
5 -
IDM, AX-750
350-BCKG
-
5 -
Trusted Platform Module 2.0 V3
461-AAIG
-
5 -
2.5" Chassis with up to 24 NMVe Drives
321-BGXU
-
5 -
Intel Xeon Platinum 8358 2.6G, 32C/64T, 11.2GT/s, 48M Cache, Turbo, HT (250W) DDR4-3200
338-CBCH
-
5 -
Intel Xeon Platinum 8358 2.6G, 32C/64T, 11.2GT/s, 48M Cache, Turbo, HT (250W) DDR4-3200
338-CBCH
-
5 -
Additional Processor Selected
379-BDCO
-
5 -
Heatsink for 2 CPU with GPU configuration
412-AAVC
-
5 -
Performance Optimized
370-AAIP
-
5 -
3200MT/s RDIMMs
370-AEVR
-
5 -
C30, No RAID for NVME chassis
780-BCDO
-
5 -
No Controller
405-AACD
-
5 -
No Hard Drive
400-ABHL
-
5 -
UEFI BIOS Boot Mode with GPT Partition
800-BBDM
-
5 -
Very High Performance Fan x6
750-ADGJ
-
5 -
Dual, Hot-Plug,Power Supply Redundant (1+1), 1400W, Mixed Mode 450-AJHG
-
5 -
Riser Config 2, Full Length, 4x16, 2x8 slots, DW GPU Capable 330-BBRW
-
5 -
Dell Marketing LP. U.S. only. Dell Marketing LP. is located at One Dell Way, Mail Stop 8129, Round Rock, TX 78682
R750 Motherboard with Broadcom 5720 Dual Port 1Gb On-Board LOM
329-BFGT
-
5 -
iDRAC9 Datacenter 15G
528-CRVW
-
5 -
OpenManage Integration with MS Windows Admin Center Premium License for MSFT HCI Solutions, Perpetual
528-CJIT
-
5 -
Broadcom 57414 Dual Port 10/25GbE SFP28, OCP NIC 3.0
540-BCOC
-
5 -
Azure Stack HCI, 2U Standard Bezel
325-BEEY
-
5 -
BOSS-S2 controller card +
with 2 M.2 240GB (RAID 1)
403-BCMG
-
5 -
BOSS Cables and Bracket for R750 (Riser 1)
470-AERR
-
5 -
Quick Sync 2 (At-the-box mgmt)
350-BBYW
-
5 -
iDRAC,Legacy Password
379-BCSG
-
5 -
iDRAC Group Manager, Disabled
379-BCQY
-
5 -
Microsoft Azure Stack HCI OS 22H2
634-BZYZ
-
5 -
Windows Server 2022 Datacenter,16CORE,DF Recovery Image, Multi Lang, (Downgrade not included)
528-CSCT
-
5 -
Windows Server 2022 Datacenter,16CORE,Secondary OS,Media Kit, Multi Lang, (Downgrade not included)
634-BYLT
-
5 -
Windows Server 2022 Datacenter,No Media,WS2019 DC Downgrade DF Media, Multi Language
528-CSCS
-
5 -
Windows Server 2022 Datacenter,No Media, WS2019 DC Downgrade w/DVD Media,Multi Lang
634-BYLR
-
5 -
Windows Server 2022 Datacenter,16CORE,Secondary OS,No
MEDIA,Unlimited VMs
634-BYKB
-
5 -
ReadyRails Sliding Rails
770-BBBQ
-
5 -
Cable Management Arm, 2U
770-BDRQ
-
5 -
Fan Foam, HDD 2U
750-ACOM
-
5 -
No Systems Documentation, No OpenManage DVD Kit
631-AACK
-
5 -
PowerEdge R750 Shipping
340-CULS
-
5 -
PowerEdge R750 Shipping Material
481-BBFG
-
5 -
PowerEdge R750 CE Marking, No CCC Marking
389-DYHE
-
5 -
Dell/EMC label (BIS) for 2.5" Chassis
389-DYHF
-
5 -
Dell Hardware Limited Warranty Plus Onsite Service
865-7971
-
5 -
ProSupport Mission Critical 4-Hour 7X24 Onsite Service with Emergency Dispatch 3 Years
865-7974
-
5 -
ProSupport Mission Critical 4-Hour 7X24 Onsite Service with Emergency Dispatch 2 Years Extended
865-7978
-
5 -
ProSupport Mission Critical 7X24 Technical Support and Assistance 5 Years
865-7993
-
5 -
Dell Limited Hardware Warranty Plus Service, Extended Year(s) 975-3462
-
5 -
Thank you choosing Dell ProSupport. For tech support, visit //www.dell.com/support or call 1-800- 945-3355
989-3439
-
5 -
ProDeploy Plus No Charge Training 200
812-4011
-
5 -
ProDeploy Plus for AX 1U-2U
839-3618
-
5 -
32GB RDIMM, 3200MT/s, Dual Rank 16Gb BASE x8
370-AGDS
-
80 -
7.68TB Enterprise NVMe Read Intensive AG Drive U.2 Gen4 with carrier
400-BKGU
-
30 -
Dell Marketing LP. U.S. only. Dell Marketing LP. is located at One Dell Way, Mail Stop 8129, Round Rock, TX 78682
Power Cord - C13, 3M, 125V, 15A (North America, Guam, North Marianas, Philippines, Samoa, Vietnam)
450-AALV
-
10 -
C13 to C14, PDU Style, 12 AMP, 6.5 Feet (2m) Power Cord, North America
492-BBDI
-
10 -
Mellanox ConnectX-5 Dual Port 10/25GbE SFP28 Adapter, PCIe Low Profile, V2
540-BDIN
-
5 -
Dell Networking, Cable, SFP28 to SFP28, 25GbE, Passive Copper Twinax Direct Attach Cable, 3 Meter
470-ACEV
-
20 -
Windows Server 2022/2019 Datacenter Edition,Add
License,16CORE,NO MEDIA/KEY
634-BYJQ
-
15 -
Subtotal:
Shipping:
Estimated Tax:
Total:
$257,994.55
$0.00
$21,579.57
$279,574.12
Shipping Group 2 of
3, Details
Shipping To
MATHEW KUNZE
CITY OF PALMDALE
38300 SIERRA HWY
PALMDALE,
CA
93550
(661) 267-5537
Shipping Method
Standard Delivery
Install At
MATHEW KUNZE
CITY OF PALMDALE
38300 SIERRA HWY
PALMDALE,
CA
93550
(661) 267-5537
Solution Name:
Switches
Quantity
Subtotal
PowerSwitch S5224-ON
Estimated delivery if purchased today:
Aug. 21, 2023
Contract # C000000181156
Customer Agreement #
MNWNC-108 / 7-15-70-34-003
$11,326.64
2 $22,653.28
Description
SKU
Unit Price
Quantity
Subtotal
Dell EMC S5224F-ON Switch, 24x 25GbE SFP28, 4x 100GbE
QSFP28 ports, PSU to IO air, 2x PSU
210-APHT
-
2 -
Dell EMC S52XX-ON Series User Guide
343-BBLP
-
2 -
OS10 Enterprise, S5224F-ON
634-BRWJ
-
2 -
OS10 SmartFabric Services
634-BYIJ
-
2 -
Dell Hardware Limited Warranty 1 Year
818-4983
-
2 -
Mission Critical Package: 4-Hour 7x24 On-Site Service with Emergency Dispatch, 1 Year
818-4992
-
2 -
Mission Critical Package: 4-Hour 7x24 On-Site Service with Emergency Dispatch, Extended to 4 Years
818-4994
-
2 -
ProSupport Mission Critical:7x24 HW/SW Technical Support and Assistance, 5 Years
818-5006
-
2 -
Dell Limited Hardware Warranty Extended Year(s)
975-3461
-
2 -
Thank you choosing Dell ProSupport. For tech support, visit //www.dell.com/support or call 1-800- 945-3355
989-3439
-
2 -
Info 3rd Party Software Warranty provided by Vendor
997-6306
-
2 -
ProDeploy Plus Dell Networking S Series 5XXX Switch - Deployment 804-2152
-
2 -
Dell Marketing LP. U.S. only. Dell Marketing LP. is located at One Dell Way, Mail Stop 8129, Round Rock, TX 78682
ProDeploy Plus Dell Networking S Series 5XXX Switch - Deployment Verification
804-2153
-
2 -
ProDeploy Plus No Charge Training 500
812-4037
-
2 -
5 Years ProSupport OS10 Enterprise Software Support-Maintenance 848-8539
-
2 -
Dell Networking, Transceiver, SFP+, 10GbE, SR, 850nm Wavelength, 300m Reach
407-BCZR
-
4 -
Dell Networking Cable, 100GbE QSFP28 to QSFP28, Passive Copper Direct Attach Cable, 0.5 Meter
470-ABOU
-
2 -
Dell Networking, Jumper Cord, 250V, 12A, 2 Meters, C13/C14, US 450-AASX
-
2 -
Dell Networking, Jumper Cord, 250V, 12A, 2 Meters, C13/C14, US 450-AASX
-
2 -
Subtotal:
Shipping:
Estimated Tax:
Total:
$22,653.28
$0.00
$811.00
$23,464.28
Shipping Group 3 of
3, Details
Shipping To
MATHEW KUNZE
CITY OF PALMDALE
38300 SIERRA HWY
PALMDALE,
CA
93550
(661) 267-5537
Shipping Method
Standard Delivery
Install At
MATHEW KUNZE
CITY OF PALMDALE
38300 SIERRA HWY
PALMDALE,
CA
93550
(661) 267-5537
Solution Name:
Migration
Quantity
Subtotal
Non-tied Enterprise Deployment and Professional Services - [DELLSTAR_1211]
Estimated delivery if purchased today:
Aug. 16, 2023
Contract # C000000181156
Customer Agreement #
MNWNC-108 / 7-15-70-34-003
$10,436.26
1 $10,436.26
Description
SKU
Unit Price
Quantity
Subtotal
Data Migration Services: Remote Virtual V2V Migration 10-50 VMs (Per VM)
848-8795
-
43 -
Subtotal:
Shipping:
Estimated Tax:
Total:
$10,436.26
$0.00
$0.00
$10,436.26
Dell Marketing LP. U.S. only. Dell Marketing LP. is located at One Dell Way, Mail Stop 8129, Round Rock, TX 78682
Important Notes
Terms of Sale
This Quote will, if Customer issues a purchase order for the quoted items that is accepted by Supplier, constitute a contract between the entity issuing this Quote (“Supplier”) and the entity to whom this Quote was issued (“Customer”). Unless otherwise stated herein, pricing is valid for thirty days from the date of this Quote. All product, pricing and other information is based on the latest information available and is subject to change. Supplier reserves the right to cancel this Quote and Customer purchase orders arising from pricing errors. Taxes and/or freight charges listed on this Quote are only estimates. The final amounts shall be stated on the relevant invoice. Additional freight charges will be applied if Customer requests expedited shipping. Please indicate any tax exemption status on your purchase order and send your tax exemption certificate to
[email protected]
or
[email protected]
, as applicable.
Governing Terms
: This Quote is subject to: (a) a separate written agreement between Customer or Customer’s affiliate and Supplier or a Supplier´s affiliate to the extent that it expressly applies to the products and/or services in this Quote or, to the extent there is no such agreement, to the applicable set of Dell’s Terms of Sale (available at www.dell.com/terms
or
www.dell.com/oemterms
), or for cloud/as-a-
Service offerings, the applicable cloud terms of service (identified on the Offer Specific Terms referenced below); and (b) the terms referenced herein (collectively, the “Governing Terms”). Different Governing Terms may apply to different products and services on this Quote. The Governing Terms apply to the exclusion of all terms and conditions incorporated in or referred to in any documentation submitted by Customer to Supplier.
Supplier Software Licenses and Services Descriptions
: Customer’s use of any Supplier software is subject to the license terms accompanying the software, or in the absence of accompanying terms, the applicable terms posted on www.Dell.com/eula
. Descriptions and
terms for Supplier-branded standard services are stated at www.dell.com/servicecontracts/global
or for certain infrastructure products at
www.dellemc.com/en-us/customer-services/product-warranty-and-service-descriptions.htm .
Offer-Specific, Third Party and Program Specific Terms
: Customer’s use of third-party software is subject to the license terms that accompany the software. Certain Supplier-branded and third-party products and services listed on this Quote are subject to additional, specific terms stated on
www.dell.com/offeringspecificterms
(“Offer Specific Terms”).
In case of Resale only
: Should Customer procure any products or services for resale, whether on standalone basis or as part of a solution, Customer shall include the applicable software license terms, services terms, and/or offer-specific terms in a written agreement with the end- user and provide written evidence of doing so upon receipt of request from Supplier.
In case of Financing only
: If Customer intends to enter into a financing arrangement (“Financing Agreement”) for the products and/or services on this Quote with Dell Financial Services LLC or other funding source pre-approved by Supplier (“FS”), Customer may issue its purchase order to Supplier or to FS. If issued to FS, Supplier will fulfill and invoice FS upon confirmation that: (a) FS intends to enter into a Financing Agreement with Customer for this order; and (b) FS agrees to procure these items from Supplier. Notwithstanding the Financing Agreement, Customer’s use (and Customer’s resale of and the end-user’s use) of these items in the order is subject to the applicable governing agreement between Customer and Supplier, except that title shall transfer from Supplier to FS instead of to Customer. If FS notifies Supplier after shipment that Customer is no longer pursuing a Financing Agreement for these items, or if Customer fails to enter into such Financing Agreement within 120 days after shipment by Supplier, Customer shall promptly pay the Supplier invoice amounts directly to Supplier.
Customer represents that this transaction does not involve: (a) use of U.S. Government funds; (b) use by or resale to the U.S. Government; or (c) maintenance and support of the product(s) listed in this document within classified spaces. Customer further represents that this transaction does not require Supplier’s compliance with any statute, regulation or information technology standard applicable to a U.S.
Government procurement.
For certain products shipped to end users in California, a State Environmental Fee will be applied to Customer’s invoice. Supplier encourages customers to dispose of electronic equipment properly.
Electronically linked terms and descriptions are available in hard copy upon request. ^DELL BUSINESS CREDIT (DBC):
Offered to business customers by WebBank, who determines qualifications for and terms of credit.
Taxes, shipping and other charges are extra and vary. The Total Minimum Payment Due is the greater of either $20 or 3% of the New Balance shown on the statement rounded up to the next dollar, plus all past due amounts. Dell and the Dell logo are trademarks of Dell Inc.
Dell Marketing LP. U.S. only. Dell Marketing LP. is located at One Dell Way, Mail Stop 8129, Round Rock, TX 78682
City Council Staff Report
DATE: OCTOBER 4, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: FINANCE DEPARTMENT
INFORMATION TECHNOLOGY DIVISION
DISTRICT: ALL
SUBJECT: APPROVE FIRST AMENDMENT TO AGREEMENT WITH DATALINK NETWORKS, INC. FOR MICROSOFT LICENSING TO INCREASE
THE CONTRACT PRI CE BY $292,804 FOR AN AMOUNT NOT TO
EXCEED $677,964 FOR THE REMAINDER OF THE TERM,
THROUGH OCTOBER 4, 2025.
ISSUE
Approve First A mendment to Agreement with Datalink Networks, Inc. for Microsoft Licensing to increase the contract price by $292,804 for an amount not to exceed $677,964 for the remainder of the term, through October 4, 2025.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve First Amendment to Agreement with Datalink Networks, Inc. for Microsoft Licensing to increase the contract price by $292,804 for an amount not to exceed amount of $677,964 for the remainder of the term, through October 4, 2025.
2. Authorize the City Manager or her designee to execute Agreement with Datalink Networks, Inc., including non-substantive changes.
BACKGROUND
The City has contracted with Datalink Networks since November 2022 and is currently under contract to provide Office 365 G3licensing, which includes the standard Microsoft Office Suite (Word, Excel, Outlook OneDrive, Teams, PowerPoint and Entra ID Premium P2 - advanced identity services) licensing to the City , for a cost of $116,715 annually.
Additionally, the City has a contract with Insight Public Sector for Windows licensing for a cost of $45,700 annually. The existing agreement with Insight Public Sector will be eliminated at the end of the term in November 2023.
Report to Mayor and City Council
Re: First Amendment to Agreement with Microsoft 365 Licensing October 4, 2023
The proposed contract amendment with Datalinks Networks would consolidate current licensing into a single Microsoft government contract, eliminating the need for multiple contracts covering various standalone components.
In addition to consolidating services under a single agreement, this amendment proposes the inclusion of additional Microsoft services, including Power BI (Business Intelligence) for real-time analytics, Visio, Intune for enterprise device management, and VoIP telephone services.
DISCUSSION
Microsoft 365 G5 is a comprehensive software suite that includes Microsoft Office, email, VoIP phone service, Microsoft Windows, identity services, and several other cloud-based software offerings.
All pricing in this agreement is based on the OMNIA cooperative contract. Consolidation is expected to be complete by June 2026 with the implementation of Microsoft-based VoIP service, resulting in savings of approximately $18,000 annually thereafter.
The Microsoft VoIP telephone services would allow the City to integrate telephone service directly into the Microsoft Teams platform while maintaining the existing phone hardware already purchased with the current vendor. By bundling these services, the City would save the $72,000 paid annually to the current VoIP provider.
Intune device management is an additional feature bundled in the Microsoft 365 G5 license that would allow the City’s IT team to manage and deploy computers to support daily operations. This service is on the roadmap to be implemented in Fiscal Year 2023- 24 and will significantly improve IT staff efficiency.
Power BI (Business Intelligence) is an additional feature bundled with the Microsoft 365 G5 license that would allow all users to create real-time analytic reports to help better drive data-based decision-making across the organization. Adopting this technology across the organization is expected to take approximately three years and is anticipated to be fully implemented by June 2026.
FISCAL IMPACT
The agreement with Datalinks is proposed to increase by $292,804, for a not-to-exceed amount of $677,964, for the three (3) year term through October 2025. Funds are budgeted and available in FY 2023-24 in account 15316001-774400, Information Technology Capital Outlay. Additional savings will be recognized over the three (3) year term in the amount of $54,813.
STRATEGIC PLAN
Goal III: Ensure long-term fiscal health of the City and maintain funding for services.
Report to Mayor and City Council
Re: First Amendment to Agreement with Microsoft 365 Licensing October 4, 2023
A. Manage resources, costs, and liabilities to ensure the City’s long-term fiscal health.
Prepared by: Matthew Kunze, IT Analyst
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William Patrick Curley III, Interim City Attorney Attachments:
1. First Amendment to Agreement with Datalinks Networks, Inc. 1ST AMENDMENT TO AGREEMENT A-8052
BETWEEN THE CITY OF PALMDALE AND DATALINK NETWORKS, INC.
This 1ST Amendment to Agreement No. A-8052 (“Agreement”) is made and entered into by and between the City of Palmdale (hereinafter called “CITY”) and DATALINK NETWORKS, INC. (hereinafter called "CONTRACTOR"). This Contract shall become effective on the date of the last signatory.
WHEREAS, on November 1, 2022 ("Original Agreement") the CITY and CONTRACTOR entered into an agreement to provide:
Provide a 3-year license for Office 365 Government G3 GCC.
Year 1 - $116,715.00
Year 2 - $116,715.00
Year 3 - $116,715.00
10% Contingency - $35,014.00
Total - $385,159.00
WHEREAS, the parties desire to amend the Original Agreement to:
Amend the Agreement to upgrade the licenses from Office 365 Government G3 GCC to Microsoft 365 Government for G5 GCC.
Year 1 - $116,715.00
Year 2 - $249,808.00
Year 3 - $249,808.00
10% Contingency - $61,633.00
Total - $677,964.00
NOW THEREFORE, the parties agree as follows:
1. Upgrade licenses from O365 G3 to M365 G5
2. Agreement is hereby increased by an additional Two Hundred, Ninety-Two Thousand Dollars ($292,804), bringing the total amount of the contract to Six Hundred Seventy-Seven Thousand, Nine Hundred Sixty-Four Dollars ($677,964)
All other terms and conditions of the Original Agreement not amended herein, remain in full force and effect.
1-2Concord - Document ID: OTE3MTYwYTItOD
In Witness Whereof, the parties hereto have caused this Contract to be executed and attested by their respective officers thereunto duly authorized.
CITY OF PALMDALE:
DATALINK NETWORKS, INC.:
Ronda Perez
City Manager
Don Wisdom
President
ADDRESS FOR NOTICE:
CITY OF PALMDALE
38300 Sierra Hwy., Suite D
Palmdale, CA 93550
ADDRESS FOR NOTICE:
DATALINK NETWORKS, INC.
28110 Avenue Stanford, Unit A
Santa Clarita, CA 91355
APPROVE AS TO FORM:
William P. Curley, III
Interim City Attorney
ATTEST:
Roxanne Faber
Acting City Clerk
---------------------------------------- INTERNAL USE ONLY ----------------------------------------
■Certificate(s) and Endorsement(s) attached
■Confirmed business name on contract with certificate(s) ■Original contract and previous amendment(s) (if any) are attached ■Attached Agreement Checklist and met all requirements
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City Council Staff Report
DATE: OCTOBER 4, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PARKS AND RECREATION DEPARTMENT
DISTRICT: ALL
SUBJECT: APPROVE SERVICE AGREEMENT WITH WILSON EVENTS, INC. TO
PROVIDE ENTERTAINMENT BOOKING AND MANAGEMENT
SERVICES
ISSUE
Approve Service Agreement with Wilson Events, Inc., to provide entertainment booking and management services.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve Service A greement A-8504 with Wilson Events, I nc. to provide entertainment booking and management services; and,
2. Authorize the City Manager or their designee to execute the Service Agreement and take all necessary actions to implement the approved measures.
BACKGROUND
Wilson Events, Inc. has provided entertainment booking services for the City of Palmdale, State of California, and support to clients throughout the United States over the past several years. Services received include access to all national touring vocal performance artists, negotiating performance conditions and house provisions, pro viding onsite management of artist personnel on the day of the event, coordination with the stage production crew, and rental of show production equipment required by the artist and not supplied by the tour. Wilson Events, Inc. provides complete turnkey se rvices offering continual support from artist booking through performance.
Wilson Events, Inc. is a significant talent buyer supporting most summer tours and routes throughout the Western United States. The many corporate and private clients that utilize their services enhance their buying power. Wilson Events, Inc. is in daily contact with national artist agencies and has developed close connections with various management companies. These connections enable them to retain up-to-date artist touring information.
During the last 30 years, Wilson Events, Inc. reports to have booked and produced over Report to Mayor and City Council
Re: Approve Agreement No. A-8504
October 4, 2023
$450 million in talent purchases and has served hundreds of clients on various levels throughout the country.
DISCUSSION
The City requires entertainment booking services to secure nationally recognized vocal artists for performances. Booking services include management support from booking to the performance date, including contract terms and conditions negotiation. Additional support is provided to enforce City amendments to artist agreements, which protects the City’s interests and requirements. Additional services include stage production coordination, media support, artist’s guest and fan club support, and direct liaison with the artist manager to address any onsite needs.
Per Ordinance No. 1599, Section 3.08.140, services from specified professional classifications, including entertainment services, may be procured without regard to the dollar amount of the contract. Professional services are exempt from the competitive process and shall be selected based on qualifications. The service agreement’s initial term will be for a two-year term, with two optional, mutually agreed upon, one-year extensions.
FISCAL IMPACT
The agreement with Wilson Events, Inc. will not exceed $250,000 for the total term of the contract. Funds for this agreement are currently budgeted in Contract Services, Concert Program account 101-42001-722134-1088. Annual funding necessary for ongoing expenses will be evaluated and approved as part of the City’s budget adoption process.
STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.
C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.
Goal IV: Maintain a desirable community where everyone wants to live, work and play.
D. Develop and maintain diverse programs and events that inspire growth, pride, and lifelong learning.
Prepared by: Keri Smith, Director of Parks and Recreation Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, Interim City Attorney
ATTACHMENTS
Agreement No. A-8504
AGREEMENT NO. A-8504
CONTRACT FOR SERVICES
BETWEEN THE CITY OF PALMDALE AND WILSON EVENTS INCORPORATED
This CONTRACT for services (“Contract” herein) is made and entered into by and between the City of Palmdale, a public body corporate and politic, (hereinafter called “CITY”), and WILSON EVENTS INCORPORATED, a California Corporation , (hereinafter called “CONTRACTOR”). This Contract shall become effective on the date of the last signatory.
RECITALS
WHEREAS, CONTRACTOR represents that CONTRACTOR has the expertise and is qualified to perform the services described in this Contract.
NOW THEREFORE, CITY and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as follows:
1 CITY PROJECT MANAGER
To provide the services required by this Contract, CONTRACTOR shall act under the authority and approval of Keri Smith Director/designee, who shall oversee this Contract, the work performed by CONTRACTOR, assist CONTRACTOR with any necessary information, audit billings, and approve payments. The CONTRACTOR shall channel all contacts and requests through the City project manager. 2 DESCRIPTION OF WORK
2.1 CONTRACTOR shall provide the following services in a manner satisfactory to CITY:
• Provide booking and onsite production services for the Palmdale Concert Series. • Consult and develop a talent plan including projections of budget and program considerations with regard to audience appeal, potential, and appropriateness to Concert Series.
• Secure booking for Palmdale Concert Series and facilitate City contact and insurance requirements.
• Identify, review and facilitate all backline and rider requirements. • The Proposer should be qualified in the following:
• Demonstrated ability to secure timely booking of quality regional and national acts.
1-13Concord - Document ID: generated after first signature • Demonstrated ability to effectively identify and budget for all backline, rider, and contractual costs including lodging, hospitality, transport, equipment, sound, and staging.
• Demonstrated ability to provide quality production services. • Demonstrated ability to work effectively with sponsors, event volunteers, and other service providers.
• Experience working with performers’ booking agents and representatives to meet the specific requirements of each artist’s contractual provisions. • Demonstrated ability to work as a consultant with a government agency and provide quality services before, during, and after the scheduled event.
2.2 CONTRACTOR shall have no claim for compensation for any services or work, which has not been authorized by CITY’s Authorization to Proceed.
2.3 CONTRACTOR shall not accept any change of scope, or change in contract provisions, to this Contract unless issued in writing, as a contract change order or amendment and signed by CITY. Any extensions of time must be mutually agreed upon in writing and executed by both parties.
2.4 CONTRACTOR shall maintain in current status all Federal, State, and local licenses and permits required for the operation of the business conducted by the CONTRACTOR as applicable to this contract.
2.5 All work supplied under this Contract shall be fully guaranteed by CONTRACTOR for a minimum period of 30 days from the date of acceptance by CITY. Any defects of design, workmanship, or materials that would result in non- compliance with the Contract specifications shall be fully corrected by CONTRACTOR (including parts and labor) without cost to CITY. The written warranty shall be included with the delivered products to the using Department.
2.6 CITY shall provide to CONTRACTOR, without charge, all data, program information, including reports, records, maps, and other information, now in CITY’s possession, which may facilitate the timely performance of the work. 3 CONTRACTOR’S KEY PERSONNEL
3.1 Key Staff. CITY reserves the right to review and approve CONTRACTOR’S staff including all subcontractors to be assigned to any project by CONTRACTOR during the term of this Contract.
This Contract has been awarded to CONTRACTOR based partially on the key personnel proposed to perform the services required herein. CONTRACTOR shall not 2-13Concord - Document ID: generated after first signature change nor substitute any of these key staff for work on this Contract without prior written approval by CITY.
CONTRACTOR’s Team and Key Personnel are as follows:
Ethan Hirsch, Vice President
(707) 763-9534
[email protected]
This Services Contract has been awarded to CONTRACTOR based on its representation that those personnel and subcontractors submitted as part of its bid and listed above will perform the portions of the work listed above.
CONTRACTOR shall not deviate nor substitute any of these team members without prior written approval by CITY.
3.2 Subcontractors. During the performance of the Agreement, CONTRACTOR may engage such additional SUBCONTRACTORS as may be required for the timely completion of this Agreement. In the event of subcontracting, the sole responsibility for fulfillment of all terms and conditions of this Agreement rests with CONTRACTOR.
CONTRACTOR shall not enter into any Subcontract under this Contract for the performance of this Contract without the advance written approval of CITY. The subcontract shall incorporate by reference the terms and conditions of this Contract.
3.3 Direct Responsibility. All services required under this Contract shall be performed by CONTRACTOR, or under CONTRACTOR’s direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services.
3.3.1 CONTRACTOR shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Contract, and compliance with all reasonable performance standards established by CITY.
3.3.2 CONTRACTOR shall be responsible for payment of all CONTRACTOR’s employees’ and subcontractor’s wages and benefits and shall comply with all requirements pertaining to the employer’s liability, workers’ compensation, unemployment insurance, and Social Security.
3.3.3 CONTRACTOR shall indemnify and hold harmless CITY, and its respective officers, agents and employees from and against all claims, demands, damages or costs arising from CONTRACTOR’s acts or omissions with respect to any liability, damages, claims, costs and expenses of any nature arising from alleged violations of personnel practices.
4 CONTRACT TERM
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The term of this Contract is TWO (2) YEARS, commencing on the effective date, with CITY reserving the option to extend the agreement for 2 additional terms of one year each.
5 ACCEPTANCE AND DOCUMENTATION
Each task shall be reviewed and approved by the Contract Project Manager to determine acceptable completion.
5.1 Records. The CONTRACTOR shall retain and shall contractually require each SUBCONTRACTOR to retain all data and other “records” relating to the acquisition and performance of the Contract for a period of five years after the completion of the Contract.
5.2 Property of CITY. All materials, including reports, computer programs and other deliverables, supplied or created under this Contract are the sole property of CITY. CONTRACTOR is not entitled to a patent or copyright on those materials and may not transfer the patent or copyright to anyone else. CONTRACTOR shall not use or release these materials without the prior written consent of CITY.
5.3 Products. All equipment, materials, parts, and other components incorporated in the work or services performed pursuant to this Contract shall be new, or the latest model and of the most suitable grade for the purpose intended. All work shall be performed in a skilled and workmanlike manner. 6 PRICE
CITY shall pay to CONTRACTOR an amount not to exceed Two Hundred Fifty Thousand dollars ($250000.00) for the completion of all the work and services described in Section 2, which sum shall include all costs or expenses incurred by CONTRACTOR, payable as follows:
CITY shall pay CONTRACTOR a fee not to exceed the sum of Two Hundred Fifty Thousand Dollars ($250000.00) to provide artist booking and management services. - Artist Booking Fee Per Act: $5,000 or 15% of artist contract, whichever is greater - Artist Management Fee Per Act: $2,500
- Artist Backline Fee: $0-$20,000 pursuant to artist contract requirements
6.1 An application for payment form must be submitted to CITY which shall include the following: a clear, detailed invoice reflecting work being billed for, a summary sheet showing percentage of work completed to date, amount/percent billed to date and current status of all tasks within a project; any/all backup documentation 4-13Concord - Document ID: generated after first signature supporting the above items. Work schedule updates must also be included with the payment requests.
6.2 CONTRACTOR shall maintain adequate records and shall permit inspection and audit by CITY of CONTRACTOR’s charges under this Contract. CONTRACTOR shall make such records available to CITY during normal business hours upon reasonable notice. Nothing herein shall convert such records into public records, and they will be available only to CITY and any specified public agencies. Such records shall be maintained by CONTRACTOR for one (1) year following completion of the work under this Contract unless a longer period of time is required by state or federal law, in which event CONTRACTOR shall retain its records for the time required by such laws.
6.3 Payment. A separate invoice shall be issued for each shipment of material or service performed, and no payment will be issued prior to receipt of material and/or completion of specified services and receipt of a correct invoice. 7 TAXES
7.1 CONTRACTOR shall pay all sales, consumer, use, and other similar taxes required to be paid by CONTRACTOR in accordance with state and local laws.
7.2 CONTRACTOR is an independent contractor and shall have no power or authority to incur any debt, obligation, or liability on behalf of CITY. No person employed by CONTRACTOR or acting on its behalf, in connection with this Contract shall be considered the Agent or employee of CITY.
7.3 CONTRACTOR shall be required to obtain a current City of Palmdale business license, as required by the Palmdale Municipal Code, before an Authorization to Proceed is issued.
7.4 When equipment, materials or supplies generally taxable to CONTRACTOR are eligible for a tax exemption due to the nature of the work, CONTRACTOR shall assist the City in applying for and obtaining such tax credits and exemptions, which shall be paid or credited to the City.
8 PATENT FEES AND ROYALTIES
CONTRACTOR shall pay all license fees and royalties and assume all costs incident to the use, in the performance of the work or the incorporation in the work of any invention, design, process, program, product or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, program, product or device is specified in the contract documents for use in the performance of the work and if, to the actual knowledge of CITY, its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by CITY in the contract documents.
CONTRACTOR shall indemnify and hold harmless CITY and anyone directly or 5-13Concord - Document ID: generated after first signature indirectly employed by CITY from and against all claims, damages, losses and expenses (including attorneys' fees) arising out of any infringement of patent rights or copyrights incident to the use in the performance of the work, or resulting from the incorporation in the work of any invention, design, process, program, product or device not specified in the contract documents, and shall defend all such claims in connection with any alleged infringement of such rights. 9 INDEMNIFICATION
To the fullest extent permitted by law, CONTRACTOR and any subcontractors working on its behalf agree to indemnify CITY, its officers, employees, agents and elected and appointed boards (hereinafter “Indemnified Parties”) for any loss, claim, demand, cause of action, cost, expense, damage, obligation or liability which arises out of or is in any way connected with the performance of any work under this agreement, including any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of CONTRACTOR, or its subcontractors, and regardless of any acts, omissions or negligence (whether active or passive) of any person or entity indemnified hereunder. At their own expense, CONTRACTOR and, as applicable, any subcontractors working on its behalf, shall defend any suit, claim or action against the Indemnified Parties founded upon such loss, claim, demand, cause of action, cost, expense, damage, obligation or liability. CONTRACTOR shall ensure that the contract of any subcontractor working under this agreement contain an indemnity agreement, requiring the subcontractor to indemnify and defend the Indemnified Parties pursuant the terms set forth above. CONTRACTOR shall indemnify the Indemnified Parties, and save it harmless from any and all loss, damage, costs, expenses and attorney's fees suffered or incurred on account of any breach of the aforesaid obligations and covenants, and any other provision or covenant of this agreement.
10 INSURANCE
10.1 CONTRACTOR, at its expense, shall maintain in effect at all times during the performance of work under this Contract not less than the following coverage and limits of insurance, which shall be maintained with insurers listed “A” or better in the Best’s Insurance Guide and authorized to do business in the State of California.
Proof of Insurance, as identified in Section 10.8, must be reviewed and accepted by the City Attorney.
10.1.1 Workers’ Compensation and Employer’s Liability
Workers’ Compensation -- coverage as required by the State of California Employer’s Liability -- $1,000,000.00 each accident $1,000,000.00 policy limit bodily injury
$1,000,000.00 each employee bodily injury by disease
10.1.2 Commercial General Liability
$1,000,000.00 limit on a per occurrence basis
$2,000,000.00 general aggregate limit
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10.1.3 Commercial Automobile Liability
$1,000,000.00 combined single limit including owned, non-owned and hired automobile coverage
10.2 All of CONTRACTOR’s policies shall contain an endorsement providing that written notice shall be given to CITY at least thirty (30) calendar days prior to termination, cancellation, or reduction of coverage in the policy.
10.3 Policies providing for bodily injury and property damage coverage shall contain the following:
A. An endorsement extending coverage to the City as an additional insured, as respects liability arising out of the performance of any work under the Contract.
Such insurance shall be primary insurance, as respects the interest of the City, and any other insurance maintained by the City shall be considered excess coverage and not contributing insurance with the insurance required hereunder. The certificates shall state: “The City of Palmdale, Successor Agency to the Community Redevelopment Agency of the City of Palmdale, Palmdale Civic Authority, Housing Authority, Industrial Development Authority, Airport Authority, their officers, agents, employees and volunteers are named as additional insured”.
B. “Severability of Interest” Clause.
10.4 Promptly upon execution of this Contract, and prior to commencement of any work, CONTRACTOR shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that CONTRACTOR has the required coverage and showing the required named insured. Within five (5) days of written request from CITY, CONTRACTOR shall deliver to CITY full and complete copies of all insurance policies required by this Contract.
10.5 The requirements as to the types and limits of insurance to be maintained by CONTRACTOR are not intended to and shall not in any manner limit or qualify CONTRACTOR’s liabilities and obligations under this Contract.
10.6 Any policy or policies of insurance that CONTRACTOR elects to carry as insurance against loss or damage to its equipment and tools or other personal property used in the performance of this Contract shall include a provision waiving the insurer’s right of subrogation against CITY.
10.7 All insurance coverage must be maintained throughout the duration of this Contract.
10.8 Acceptable Proof of Insurance:
10.8.1 ACORD Certificate of Insurance listing all coverage, limits, deductibles and insured; and endorsements for all applicable coverage if agent has authority to issue 7-13Concord - Document ID: generated after first signature it; or additional insured Form CG20100704 and CG20370704 or equivalent must be provided for general liability coverage. Additional insured form CA0001 must be provided for automobile liability coverage.
10.8.2 Binders of insurance for all coverage. Agents must confirm that policy endorsements have been ordered from the respective insurance companies. Upon issuance, policy endorsements and a corresponding Certificate of Insurance listing all insurers and coverage must be submitted to the City Attorney.
10.9 Notwithstanding any other provision of this Contract, CITY may immediately terminate this Contract if, at any time CONTRACTOR fails to maintain the required insurance for any period of time or fails to comply with any of the insurance requirements listed above.
10.10 CONTRACTOR shall require any and all subcontractors working on its behalf to provide insurance coverages and limits that are based on the scope of work and nature of risk being performed by the subcontractor. Any and all subcontractors working on behalf of CONTRACTOR shall be subject to all other insurance requirements that are stated herein.
Any deviation in this requirement will be CONTRACTOR's sole risk. CONTRACTOR's insurance requirements in Section 10 will not be impacted and/or limited by such deviation.
11 TERMINATION WITHOUT CAUSE
City reserves the right to terminate this Contract or any part thereof for its sole convenience with fifteen (15) days written notice. In the event of such termination, CONTRACTOR shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and subcontractors to cease such work. CONTRACTOR shall also surrender to CITY all finished or unfinished documents, processes, programs and other supplies and materials, which shall be City’s property. As compensation in full for services performed to the date of such termination, the CONTRACTOR shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract.
12 TERMINATION FOR CAUSE
If CITY determines that CONTRACTOR has failed to supply an adequate working force, or to provide services of proper quality, or has failed in any other respect to satisfactorily perform the services specified in this Contract, CITY shall give written notice to CONTRACTOR specifying all defaults to be remedied within thirty (30) days.
Such notice shall set forth the basis for CITY’s dissatisfaction and suggest corrective measures. If, after thirty days, CONTRACTOR has failed to implement appropriate corrective measures, CITY may elect to terminate this Contract in whole or in part. 8-13Concord - Document ID: generated after first signature
12.1 In the event CITY terminates this Contract, in whole or in part, for cause, CITY may procure, upon such terms and in such manner, as it may deem appropriate, services similar to those terminated.
12.2 CONTRACTOR shall provide all finished or unfinished documents, data, studies, software, drawings, programs, processes, maps, photographs, reports, etc., prepared by CONTRACTOR within fifteen (15) working days after notice of termination. Upon such termination, CONTRACTOR shall be paid an amount equal to the value of the services provided and work performed as of the date of termination, taking into consideration the costs associated with hiring another CONTRACTOR to complete the services. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete documents when such are delivered to CITY, and to authorized reimbursement expenses. The above is in addition to any other remedies available by law or equity to CITY.
12.3 If, after notice of termination of the Contract under the provisions of this Section 12, it is determined, for any reason, that CONTRACTOR was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 11. 13 DISPUTE RESOLUTION
All claims, disputes, and other matters in question between CITY and CONTRACTOR arising out of or relating to this Contract or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. 14 OWNERSHIP OF PRODUCT
All product, data, documents, programs and software including, but not limited to, research, field notes, investigations, analysis, studies, processes, software, instructions for use and other manuals, whether complete or incomplete, which are prepared or produced in the performance of this Contract are to be, and remain the property of CITY and shall be delivered to or left with CITY upon the completion or termination of this Agreement. CONTRACTOR shall furnish CITY, upon its request, originals and reproducible and electronic copies of product, data reports, studies and of all other documents listed above. Electronic copies shall be provided in an unprotected format which allows CITY to copy, reproduce and makes changes as CITY deems necessary.
15 DELEGATION AND ASSIGNMENT
15.1 CONTRACTOR shall not delegate or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of CITY; provided, however, that claims for money due or to become due to CONTRACTOR from CITY under this Contract may be assigned to a bank, trust company or other financial institution without such approval.
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15.2 Any assignment, delegation or subcontract shall be made in the name of CONTRACTOR and shall not bind or purport to bind CITY and shall not release CONTRACTOR from any obligations under this Contract including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegates and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to CONTRACTOR under this Contract.
16 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY
16.1 In performance of this Contract, CONTRACTOR shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status.
CONTRACTOR will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status . Affirmative action relating to employment shall include, but not be limited to the following:
employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
16.2 The provisions of subsection 16.1 above shall be included in all solicitations or advertisements placed by or on behalf of CONTRACTOR for personnel to perform any services under this Contract. CITY shall have access to all documents, data and records of CONTRACTOR and its subcontractors for purposes of determining compliance with the equal employment opportunity and non-discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 which is incorporated herein by this reference. A copy of Executive Order No. 11246 is available for inspection at, and on file with, the Palmdale City Clerk’s Office. 17 FINANCIAL INTEREST CERTIFICATION
17.1 CONTRACTOR warrants that no person has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee; and that no officer or employee of the CITY has any interest, financially or otherwise, in CONTRACTOR’s firm.
17.2 For breach or violation of this warranty, CITY shall have the right to annul this Contract without liability or at its discretion to deduct from the Contract Price or 10-13Concord - Document ID: generated after first signature consideration, the full amount of such commission, percentage, brokerage or contingent fee.
18 CONFLICT OF INTEREST
18.1 CONTRACTOR stipulates that its officers and employees do not now have a conflict of interest and it further agrees for itself, its officers and its employees that it will not contract for or accept employment for the performance of any work or services with any individual business, corporation or government unit that would create a conflict of interest in the performance of its obligations pursuant to this Contract or which would cause CONTRACTOR to be “financial interested” (as provided in California Government Code Section 1090 et seq. or 87100 et seq.) in any contract or decision made by CITY on any matter.
18.2 CONTRACTOR shall not employ any City official or employee to perform any work required pursuant to this Contract.
18.3 To the extent required by the City Manager or his designee, CONTRACTOR shall complete and file with the City Clerk a Form 700 Statement of Economic Interests disclosing any reportable property interests, income, gifts, investments, or business positions.
19 COMPLIANCE WITH LAW
19.1 CONTRACTOR shall comply with all state and federal laws, including but not limited to, the requirement to hire only those persons authorized by federal law to work in the United States. If CONTRACTOR uses any subcontractors to complete this Contract, this same requirement shall be included in all subcontracts and strictly enforced by CONTRACTOR.
19.2 The law of the state of California shall govern this Contract. The venue of any legal action, either formal or informal, shall be the County of Los Angeles. 20 NOTICES
Any notice required under this Contract shall be in writing, addressed to the appropriate party at its address on the signature page and given personally or by registered or certified mail postage prepaid, or by a commercial courier service. All notices shall be effective upon the date of receipt.
21 ENTIRE AGREEMENT AND AMENDMENTS
21.1 This Contract is the complete Agreement between the parties and supersedes all prior proposals, agreements, and understandings between the parties and may not be modified or terminated orally.
21.2 No attempted waiver of any of the provisions hereof, nor any modification in the nature, extent or duration of the work to be performed by CONTRACTOR 11-13Concord - Document ID: generated after first signature hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.
21.3 The failure of any party to enforce against another party any provision of this Contract shall not constitute a waiver of that party’s right to enforce such a provision at a later time, and shall not serve to vary the terms of this Contract. 22 ATTORNEY’S FEES
If any action at law or in equity is brought to enforce or interpret any provisions of this Contract, the prevailing party in such action shall be entitled to reasonable attorney’s fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded.
In Witness Whereof, the parties hereto have caused this Contract to be executed and attested by their respective officers thereunto duly authorized.
CITY OF PALMDALE: WILSON EVENTS INCORPORATED:
Laura Betencourt
Mayor
Ethan Hirsch
Vice President
ADDRESS FOR NOTICE:
CITY OF PALMDALE
827 East Avenue Q-9
Palmdale, CA 93550
ADDRESS FOR NOTICE:
WILSON EVENTS INCORPORATED
765 Baywood Dr., Ste. 235
Petaluma, CA 94954
APPROVE AS TO FORM:
William P. Curley, III
Interim City Attorney
ATTEST:
Roxanne Faber
Acting City Clerk
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□Certificate(s) and Endorsement(s) attached
□Confirmed business name on contract with certificate(s) □Attached Agreement Checklist and met all requirements
13-13Concord - Document ID: generated after first signature City Council Staff Report
DATE: OCTOBER 4, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM:
DISTRICT:
VISIT PALMDALE
ALL
SUBJECT: RECEIVE AND FILE ANNUAL REPORTS FOR THE PALMDALE
TOURISM IMPROVEMENT DISTRICT
ISSUE
Receive and file the annual reports for the Palmdale Tourism Improvement District (PTID) for fiscal years (FY) 2022/2023 and 2023/2024.
RECOMMENDATION
Staff recommends that the City Council:
1. Receive and file the annual reports for the PTID for FY 2022/2023 and FY 2023/2024.
BACKGROUND
The PTID was formed in 2021 pursuant to theProperty and Business Improvement Law of 1994, Streets and Highways Code § 36600 et seq. (94 Law ). Visit Palmdale, the designated Owners’ Association for the PTID, is required to present an annual report at the end of each FY of operation for the upcoming FY to the City Council pursuant to Streets and Highways Code §36650 . Given the complexities of forming and managing the PTID, staff were unable to compile the information necessary to provide the annual report for FY 2022/2023 by the end of the prior FY (FY 2021/2022). Therefore, both reports for FY 2022/2023 and FY 2023/2024 have been attached.
DISCUSSION
In 2021 , the City Council approved the formation of the PTID, which is a benefit assessment district proposed to help fund sales, marketing & communications and destination development programs for all Palmdale lodging businesses . The PTID includes all existing a nd future lodging businesses available for public occupancy located within the boundaries of the City . The two percent assessment began on November 1, 2021, for an initial five-year term.
Visit Palmdale is a non-profit organization that was formed and designated to serve as the Owners’ Association, pursuant to Streets and Highways Code §36651. Visit Report to Mayor and City Council
Re: Annual Reports for the Palmdale Tourism Improvement District October 4, 2023
Palmdale manages matters related to the PTID including, but not limited to, management of assessment funds and full decision-making authority regarding PTID programs in accordance with the adopted PTID Management District Plan (MDP). The annual reports provide a broad overview of how the PTID funds are projected to be utilized in accordance with the adopted budget.
During the first two years of operation, Visit Palmdale established partnerships with the Aerospace Valley Air Show, Antelope Valley Fair, Air Force Plant 42, Antelope Valley Walls Public Art Program, and Palmdale Amphitheater. Additionally, Visit Palmdale created the first annual High Desert Beer and Wine Festival at the Palmdale Amphitheater, which was highly successful. The creation of a brand identity and build- out of the Visit Palmdale website with the help of Simpleview Inc. has also been a focus of the PTID. The new website is anticipated to launch this Fall.
The cost of providing improvements and activities for both FY 2022/2023 and FY 2023/2024 is consistent with the MDP. The categorical breakdown, as well as FY 2022/2023 actuals, are detailed in the attached annual reports. All budget category allocations are within the authorized 15 percent adjustment of the total budget from the prior year, as required by the MDP.
FISCAL IMPACT
The City receives a fee of one percent of the total amount collected to cover the costs of collecting the assessment from the hotel partners. In addition, the City receives an annual $50,000 reimbursement to administer the day-to-day activities of Visit Palmdale.
STRATEGIC PLAN
Goal IV: Maintain a desirable community where everyone wants to live, work and play.
D. Develop and maintain diverse programs and events that inspire growth, pride and lifelong learning.
Prepared by: Megan Taggart, Executive Director – Visit
Palmdale
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley III, Interim City Attorney
ATTACHMENTS
1. PTID Annual Report for FY 2022/2023
2. PTID Annual Report for FY 2023/2024
N o v e m b e r 1, 2 0 2 2 - O c t o b e r 3 1 , 2 02 3 Palmdale Tourism Improvement District
2022-2023 Annual Report
Submitted to the City of Palmdale pursuant to Streets and Highways Code section 36650, for the period from November 1, 2022 through October 31, 2023
Contents
Boundaries ............................................................................ 3 Improvements and Activities .............................................. 4 Cost ......................................................................................... 6 FY 22/23 Projections ................................................................................................................ 6 FY 21/22 Actuals ........................................................................................................................ 6 Assessment ........................................................................... 7 Surplus and Other Funding ................................................. 9 Surplus ........................................................................................................................................... 9 Other Funding ............................................................................................................................. 9 Appendix – Assessed Businesses .................................... 10
Palmdale Tourism Improvement District
2022-2023 Annual Report 3
Boundaries
There are no proposed changes to the boundaries. There have been changes to assessed businesses:
Two (2) new lodging businesses have opened and are therefore subject to assessment:
• Fairfield Inn & Suites Palmdale - 1052 West Avenue O-8, Palmdale, CA 93551 • Doubletree Palmdale- 300 W Palmdale Blvd, Palmdale, CA 93551
One (1) lodging business has changed their name:
• E-Z 8 Motel has changed their name to Palm Inn & Suites - 430 West Palmdale Blvd, Palmdale, CA 93551
The Palmdale Tourism Improvement District ( PTID) will continue to include all lodging businesses, existing and in the future, available for public occupancy within the boundaries of the City of Palmdale.
A complete listing of lodging businesses within the PTID can be found in Appendix 2.
Palmdale Tourism Improvement District
2022-2023 Annual Report 4
Improvements and Activities
The PTID has established a partnership with AV Walls Public Art Program, Palmdale Amphitheater, AV Fair and the Aerospace Valley Air show. Additionally, Visit Palmdale created the first annual High Desert Beer and Wine Festival at the Palmdale Amphitheater which was highly successful. A brand identity with Simpleview and a build-out of the Visit Palmdale website has also been a focus of the PTID. For fiscal year 2022/2023, the improvements and activities to be provided are consistent with the Management District Plan (Plan).
Sales, Marketing, and Communications
A sales, marketing and communications program will promote assessed businesses as tourist, meeting, and event destination. The sales, marketing and communications program will have a central theme of promoting the destination as a desirable place for overn ight visits. The program will have the goal of increasing demand for overnight visitation and sales at assessed businesses, and may include the following activities:
• Development of a marketing plan to ensure district funds are strategically spent to market assessed businesses;
• Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation to assessed businesses; • Content development for photoshoots and video shoots for digital promotion, featuring assessed businesses to drive overnight visitation and sales to assessed businesses;
• Preparation and production of collateral promotional materials such as brochures, visitor guides, promotional items, postcards, flyers and maps featuring assessed businesses;
• Advertising targeted at potential visitors to drive overnight visitation and sales to assessed businesses;
• Implementation of a public relations and communications strategy, inclusive of social media outlets and press release distribution designed to drive overnight visitation and increase sales at assessed businesses; • Attendance of trade shows, professional industry conferences, and affiliation events to promote assessed businesses;
• Lead generation activities designed to attract tourists, business travelers, and group events to assessed businesses;
• Familiarization tours of assessed businesses;
• Visitor Service programs and enhancements, such as kiosks and Visitor Centers, that will enhance the visitor experience;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses;
• Joint partnerships with local businesses as well as local and state tourism organizations to increase overnight visitation at assessed businesses; and Palmdale Tourism Improvement District
2022-2023 Annual Report 5
• Development of Visitor Studies and Return on Investment (ROI) analysis on effectiveness of district funds to improve effectiveness and increase demand for overnight visitation at assessed businesses.
Destination Product Development
The Destination Project Development projects may include:
• Infrastructure improvements that enhance the destination’s competitive position to attract visitors, filming, sporting events, and special events year - round, to increase sales at assessed businesses;
• Comprehensive and integrated wayfinding signage system and/or banner program targeted to increase demand for visitation and increase sales at assessed businesses; and
• Other programs and activities that will enhance the visitor experience to increase sales at assessed businesses.
Administration and Operations
The administration and operations portion of the budget shall be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, audits, legal, and accounting fees.
Contingency/Reserve
The budget includes a contingency line item to account for uncollected assessments, or higher than anticipated program costs, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program or administration costs at the discretion of the Board. Policies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Board of the Owners’ Association.
Additionally, in the event there are contingency/reserve funds remaining near the end of the PTID’s term, contingency/reserve funds may be used for the cost of renewing the PTID.
City Collection Fee
The City shall retain a fee equal to one percent of the amount of assessments collected, to cover collection and administration costs.
Palmdale Tourism Improvement District
2022-2023 Annual Report 6
Cost
FY 22/23 Projections
The cost of providing improvements and activities for FY 22/23 is consistent with the Plan. The anticipated total budget for FY 22/23 is $925,374 in anticipated collections and $831,196 in carry over from the previous year, for a total estimated budget of $1,756,570. The categorical breakdown is below. All budget category allocations are within the authorized 15% adjustment of the total budget from the prior year.
FY 21/22 Actuals
The projected FY 21/22 collections were $900,000. Actual collections were more than anticipated, totaling $974,125. Budgeted and actual expenses are shown below.
Category FY 21/22 Budgeted FY 21/22 Actual
% $ % $ Spent $ Carryover
Sales, Marketing &
Communications 80% $720,000 80% $ 127,275 $ 652,025
Destination
Development 6% $54,000 6% $ 0.00 $ 58,448
Administration 11% $99,000 11% $ 5,913 $ 101,241 Contingency/Reserve 2% $18,000 2% $ 0.00 $ 19,482 City Fee 1% $9,000 1% $ 9,741 $ 0.00
Totals 100% $900,000 100% $ 142,929 $ 831,196
Category FY 21/22
Carry Over
FY 22/23
Estimated
Collections
% of
Budget
Total FY
22/23 Budget
Sales, Marketing &
Communications $ 652,025 $ 740,299 80% $ 1,392,324 Destination Development $ 58,448 $ 55,522 6% $ 113,970 Administration $ 101,241 $ 101,791 11% $ 203,032 Contingency/Reserve $ 19,482 $ 18,508 2% $ 37,990 City Fee $ 0.00 $ 9,254 1% $ 9,254 Totals $ 831,196 $ 925,374 100% $ 1,756,570
Palmdale Tourism Improvement District
2022-2023 Annual Report 7
Assessment
There is no change in the method and basis of levying the assessment.
Assessment Rate
The annual assessment rate is two percent of gross short term room rental revenue.
Based on the benefit received, assessments will not be collected on : stays of more than 30 consecutive days; stays of any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and stays pursuant to contracts executed prior to November 1, 2021.
The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a hotel, valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash credits and property and services of any kind or nature, without any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the PTID assessment is identified separately it shall be disclosed as the “PTID Assessment.” As an alternative, the disclosure may include the amount of the PTID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes.
Bonds shall not be issued.
Time and Manner for Collecting Assessments
The City will continue to be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City s hall forward the assessments collected to the Owners’ Association, Visit Palmdale.
Penalties and Interest
The PTID shall reimburse the City of Palmdale for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent PTID assessment are sought to be recovered in the same collection action by the City, the PTID shall bear its pr o Palmdale Tourism Improvement District
2022-2023 Annual Report 8
rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:
1. Original Delinquency: Any lodging business owner who fails to remit any assessment imposed by this section within the time required shall pay a penalty of 10% of the amount of the unpaid assessment in addition to the amount of the assessment.
2. Continued Delinquency: Any lodging business owner who fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of 10% of the amount of unpaid assessment, in addition to the amount of the assessment and the 10% penalty first imposed.
3. Fraud: If the City determines that the nonpayment of any remittance due under this section is due to fraud, a penalty of 25% of the amount of the assessment shall be added thereto in addition to the penalties stated in this section.
4. Interest: In addition to the penalties imposed, any lodging business owner who fails to remit any assessment imposed by this section shall pay interest at the rate of one and one -half percent per month or fraction thereof on the amount of unpaid assessment, exclusiv e of penalties, from the date on which the remittance first became delinquent until paid.
5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues under the provisions of this chapter shall become a part of the assessment herein required to be paid.
Palmdale Tourism Improvement District
2022-2023 Annual Report 9
Surplus and Other Funding
Surplus
The amount of surplus to be carried over from previous year is $831,196.
Other Funding
There will be no outside funding for fiscal year 2022/2023.
Palmdale Tourism Improvement District
2022-2023 Annual Report 10
Appendix – Assessed Businesses
Lodging Business Business Address
Best Western 600 W Palmdale Blvd, Palmdale, CA 93551
Courtyard by Marriott 530 W Rancho Vista Blvd, Palmdale, CA 93551 Doubletree Palmdale 300 W Palmdale Blvd, Palmdale, CA 93551 Element Hotel 39325 Trade Center Drive, Palmdale, CA 93551 Embassy Suites 39375 5th St W, Palmdale, CA 93551
EZ 8 Motel Palm Inn & Suites 430 W Palmdale Blvd, Palmdale, CA 93551 Fairfield Inn & Suites 1052 W Ave O-8, Palmdale, CA 93551 Hampton Inn and Suites 9428 Trade Center Dr, Palmdale, CA 93551 Hilton Garden Inn Palmdale 1309 W Rancho Vista Blvd, Palmdale, CA 93551 Holiday Inn 38630 5th St W, Palmdale, CA 93551
Home2 Suites 38750 5th St W, Palmdale, CA 93551
Knights Inn Motel 130 E Palmdale Blvd, Palmdale, CA 93550 Motel 6 407 West Palmdale Blvd, Palmdale, CA, 93551
OYO Hotel 217 E Palmdale Blvd, Palmdale, CA 93550
Palm Motel 38535 6th St E, Palmdale, CA 93550
Red Roof Inn 200 W Palmdale Blvd, Palmdale, CA 93551
Residence Inn by Marriot 514 West Avenue P, Rancho Vista Blvd, Palmdale, CA 93551 Sherwood Motel 1331 E Palmdale Blvd, Palmdale, CA 93550 Staybridge Suites Palmdale 420 W Park Dr, Palmdale, CA 93551
N o v e m b e r 1, 2 0 2 3 - O c t o b e r 3 1 , 2 02 4 Palmdale Tourism Improvement District
2023-2024 Annual Report
Submitted to the City of Palmdale pursuant to Streets and Highways Code section 36650, for the period from November 1, 2023 through October 31, 2024
Contents
Boundaries ............................................................................ 3 Improvements and Activities .............................................. 4 Cost ......................................................................................... 6 FY 2023/2024 Projections ................................................................................................................. 6 FY 2022/2023 Actuals ......................................................................................................................... 6 Assessment ........................................................................... 7 Surplus and Other Funding ................................................. 9 Surplus .......................................................................................................................................................... 9 Other Funding .......................................................................................................................................... 9 Appendix – Assessed Businesses .................................... 10
Palmdale Tourism Improvement District
2023-2024 Annual Report 3
Boundaries
There are no pro posed changes to the boundaries for fiscal year 2023/2024. The Palmdale Tourism Improvement District (PTID) will continue to include all lodging businesses, existing and in the future, available for public occupancy located within the boundaries of the City of Palmdale.
A complete listing of lodging businesses currently within the PTID can be found in Appendix 2.
Palmdale Tourism Improvement District
2023-2024 Annual Report 4
Improvements and Activities
For fiscal year 202 3/2024, t he improvements and activities to be provided are consistent with the Management District Plan (Plan).
Sales, Marketing, and Communications
A sales, marketing and communications program will continue to promote assessed businesses as tourist, meeting, and event destination. The sales, marketing and communications program will continue to have a central theme of promoting the destination as a desirable place for overnight visits. The program will continue to have the goal of increasing demand for overnight visitation and sales at assessed businesses, and may include the following activities:
• Development of a marketing plan to ensure district funds are strategically spent to market assessed businesses;
• Internet marketing efforts to increase awareness and optimize internet presence to drive overnight visitation to assessed businesses; • Content development for photoshoots and video shoots for digital promotion, featuring assessed businesses to drive overnight visitation and sales to assessed businesses;
• Preparation and production of collateral promotional materials such as brochures, visitor guides, promotional items, postcards, flyers and maps featuring assessed businesses;
• Advertising targeted at potential visitors to drive overnight visitation and sales to assessed businesses;
• Implementation of a public relations and communications strategy, inclusive of social media outlets and press release distribution designed to drive overnight visitation and increase sales at assessed businesses; • Attendance of trade shows, professional industry conferences, and affiliation events to promote assessed businesses;
• Lead generation activities designed to attract tourists, business travelers, and group events to assessed businesses;
• Familiarization tours of assessed businesses;
• Visitor Service programs and enhancements, such as kiosks and Visitor Centers, that will enhance the visitor experience;
• Director of Sales and General Manager meetings to plan and coordinate tourism promotion efforts for assessed businesses;
• Joint partnerships with local businesses as well as local and state tourism organizations to increase overnight visitation at assessed businesses; and • Development of Visitor Studies and Return on Investment (ROI) analysis on effectiveness of district funds to improve effectiveness and increase demand for overnight visitation at assessed businesses.
Palmdale Tourism Improvement District
2023-2024 Annual Report 5
Destination Product Development
The Destination Project Development projects may continue to include:
• Infrastructure improvements that enhance the destination’s competitive position to attract visitors, filming, sporting events, and special events year - round, to increase sales at assessed businesses;
• Comprehensive and integrated wayfinding signage system and/or banner program targeted to increase demand for visitation and increase sales at assessed businesses; and
• Other programs and activities that will enhance the visitor experience to increase sales at assessed businesses.
Administration and Operations
The administration and operations portion of the budget shall continue to be utilized for administrative staffing costs, office costs, and other general administrative costs such as insurance, audits, legal, and accounting fees.
Contingency/Reserve
The budget includes a contingency line item to continue to account for uncollected assessments, or higher than anticipated program costs, if any. If there are contingency funds collected, they may be held in a reserve fund or utilized for other program or administration costs at the discretion of the Board. Polic ies relating to contributions to the reserve fund, the target amount of the reserve fund, and expenditure of monies from the reserve fund shall be set by the Board of the Owners’ Association.
Additionally, in the event there are contingency/reserve funds remaining near the end of the PTID’s term, contingency/reserve funds may be used for the cost of renewing the PTID.
City Collection Fee
The City shall continue to retain a fee equal to one percent of the amount of assessments collected, to cover collection and administration costs.
Palmdale Tourism Improvement District
2023-2024 Annual Report 6
Cost
FY 2023/2024 Projections
The cost of providing improvements and activities for FY 2023/2024 is consistent with the Plan. The anticipated total budget for FY 2023/2024 is $1,036,668.42 in anticipated collections and $1,239,285.03 in carryover from the previous year, for a total estimated budget of $2,275,953.45. The categorical breakdown is below. All budget category allocations are within the authorized 15% adjustment of the total budget from the prior year.
FY 2022/2023 Actuals
The projected FY 2022/2023 collections were $1,016,341.59. Actual collections were more than anticipated, totaling $1,850,694.75. Budgeted and actual expenses are shown below.
Category FY 2022/2023 Budgeted FY 2022/2023 Actual
% $ % $ Spent $ Carryover
Sales, Marketing &
Communications 80% $813,073.27 79% $483,304.40 $1,018,005.92 Destination
Development 6% $60,980.50 8% $50,000.00 $69,649.46
Administration 11% $111,797.57 11% $67,941.90 $111,746.50 Contingency/Reserve 2% $20,326.83 0% $0.00 $39,883.15
City Fee 1% $10,163.42 2% $10,163.42 $0.00
Totals 100% $1,016,341.59 100% $611,409.72 $1,239,285.03 Category
FY
2022/2023
Carry Over
FY
2023/2024
Estimated
Collections
% of
Budget
Total FY
2023/2024
Budget
Sales, Marketing &
Communications $1,018,005.92 $829,334.74 81% $1,847,340.66 Destination Development $69,649.46 $62,200.11 6% $131,849.57 Administration $111,746.50 $114,033.53 10% $225,780.02
Contingency/Reserve $39,883.15 $20,733.37 2% $60,616.52 City Fee $0.00 $10,366.68 1% $10,366.68
Totals $1,239,285.03 $1,036,668.4
2 100% $2,275,953.45
Palmdale Tourism Improvement District
2023-2024 Annual Report 7
Assessment
There is no change in the method and basis of levying the assessment.
Assessment Rate
The annual assessment rate is two percent of gross short term room rental revenue.
Based on the benefit received, assessments will not be collected on : stays of more than 30 consecutive days; stays of any officer or employee of a foreign government who is exempt by reason of express provision of federal law or international treaty; and stays pursuant to contracts executed prior to November 1, 2021.
The term “gross room rental revenue” as used herein means: the consideration charged, whether or not received, for the occupancy of space in a hotel, valued in money, whether to be received in money, goods, labor or otherwise, including all receipts, cash credits and property and services of any kind or nature, wi thout any deduction therefrom whatsoever. Gross room rental revenue shall not include any federal, state or local taxes collected, including but not limited to transient occupancy taxes.
The assessment is levied upon and a direct obligation of the assessed lodging business. However, the assessed lodging business may, at its discretion, pass the assessment on to transients. The amount of assessment, if passed on to each transient, shall be disclosed in advance and separately stated from the amount of rent charged and any other applicable taxes, and each transient shall receive a receipt for payment from the business. If the PTID assessment is identified separately it shall be disclosed as the “PTID Assessment.” As an alternative, the disclosure may include the amount of the PTID assessment and the amount of the assessment imposed pursuant to the California Tourism Marketing Act, Government Code §13995 et seq. and shall be disclosed as the “Tourism Assessment.” The assessment is imposed solely upon, and is the sole obligation of the assessed lodging business even if it is passed on to transients. The assessment shall not be considered revenue for any purpose, including calculation of transient occupancy taxes.
Bonds shall not be issued.
Time and Manner for Collecting Assessments
The City will continue to be responsible for collecting the assessment on a monthly basis (including any delinquencies, penalties and interest) from each lodging business. The City shall take all reasonable efforts to collect the assessments from each lodging business. The City shall forward the assessments collected to the Owners’ Association, Visit Palmdale.
Penalties and Interest
The PTID shall continue to reimburse the City of Palmdale for any costs associated with collecting unpaid assessments. If sums in excess of the delinquent PTID assessment are sought to be recovered in the same collection action by the City, the Palmdale Tourism Improvement District
2023-2024 Annual Report 8
PTID shall bear its pro rata share of such collection costs. Assessed businesses which are delinquent in paying the assessment shall be responsible for paying:
1. Original Delinquency: Any lodging business owner who fails to remit any assessment imposed by this section within the time required shall pay a penalty of 10% of the amount of the unpaid assessment in addition to the amount of the assessment.
2. Continued Delinquency: Any lodging business owner who fails to remit any delinquent remittance on or before a period of 30 days following the date on which the remittance first became delinquent shall pay a second delinquency penalty of 10% of the amount of unpaid assessment, in addition to the amount of the assessment and the 10% penalty first imposed.
3. Fraud: If the City determines that the nonpayment of any remittance due under this section is due to fraud, a penalty of 25% of the amount of the assessment shall be added thereto in addition to the penalties stated in this section.
4. Interest: In addition to the penalties imposed, any lodging business owner who fails to remit any assessment imposed by this section shall pay interest at the rate of one and one -half percent per month or fraction thereof on the amount of unpaid assessment, exclusive of penalties, from the date on which the remittance first became delinquent until paid.
5. Penalties Merged with Assessment: Every penalty imposed and such interest as accrues under the provisions of this chapter shall become a part of the assessment herein required to be paid.
Palmdale Tourism Improvement District
2023-2024 Annual Report 9
Surplus and Other Funding
Surplus
The amount of surplus to be carried over from previous year is $1,239,285.03.
Other Funding
There will be no outside funding for fiscal year 2023/2024.
Palmdale Tourism Improvement District
2023-2024 Annual Report 10
Appendix – Assessed Businesses
Lodging Business Business Address
Best Western 600 W Palmdale Blvd, Palmdale, CA 93551
Courtyard by Marriott 530 W Rancho Vista Blvd, Palmdale, CA 93551 Doubletree Palmdale 300 W Palmdale Blvd, Palmdale, CA 93551 Element Hotel 39325 Trade Center Drive, Palmdale, CA 93551 Embassy Suites 39375 5th St W, Palmdale, CA 93551
Palm Inn & Suites 430 W Palmdale Blvd, Palmdale, CA 93551 Fairfield Inn & Suites 1052 W Ave O-8, Palmdale, CA 93551 Hampton Inn and Suites 9428 Trade Center Dr, Palmdale, CA 93551 Hilton Garden Inn Palmdale 1309 W Rancho Vista Blvd, Palmdale, CA 93551 Holiday Inn 38630 5th St W, Palmdale, CA 93551
Home2 Suites 38750 5th St W, Palmdale, CA 93551
Knights Inn Motel 130 E Palmdale Blvd, Palmdale, CA 93550 Motel 6 407 West Palmdale Blvd, Palmdale, CA, 93551
OYO Hotel 217 E Palmdale Blvd, Palmdale, CA 93550
Palm Motel 38535 6th St E, Palmdale, CA 93550
Red Roof Inn 200 W Palmdale Blvd, Palmdale, CA 93551
Residence Inn by Marriot 514 West Avenue P, Rancho Vista Blvd, Palmdale, CA 93551 Sherwood Motel 1331 E Palmdale Blvd, Palmdale, CA 93550 Staybridge Suites Palmdale 420 W Park Dr, Palmdale, CA 93551
City Council Staff Report
DATE: OCTOBER 4, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT
PLANNING DIVISION
DISTRICT: ALL
SUBJECT: AWARD REQUEST FOR PROPOSAL 23-001-2100 FOR
TEMPORARY PLANNING STAFF SERVICES TO INTERWEST
CONSULTING GROUP AND APPROVE AGREEMENT NO. A -8518
WITH INTERWEST CONSULTING GROUP TO PROVIDE
TEMPORARY PLANNING STAFF SERVICES IN AN AMOUNT NOT
TO EXCEED $400,000 FOR A TERM OF 3 YEARS, THROUGH 2026.
ISSUE
Award Request for Proposal (RFP) 23-001-2100 for temporary Planning staff services to Interwest Consulting Group and approve Agreement No. A -8518 with Interwest Consulting Group to provide temporary Planning staff services in an amount not to exceed $400,000 for a term of 3 years, through 2026.
RECOMMENDATION
Staff recommends that the City Council:
1. Award RFP 23-001-2100 to Interwest Consulting Group (Interwest);
2. Approve Agreement No. A-8518 with Interwest to provide temporary Planning staff services in an amount not to exceed $400,000; and,
3. Authorize the City Manager or her designee to execute Agreement , including minimal and/or non-substantiative changes.
BACKGROUND
On June 14, 2023, t he City entered into an agreement with Interwest for Planning staff services with a not to exceed amount of $40,000. The intent of this short-term agreement was to assist the Planning Division with projects while the City completed an RFP for a longer-term agreement. Historically, the City has utilized outside consultants for Planning related services to provide shorter turnaround times on time sensitive projects and to have access to an array of planning specialists for more complex projects. The amount of funds spent on outside planning consultants will var y year to year depending on the number and type of projects that are submitted to the City.
Report to Mayor and City Council
Re: Award RFP 23-001-2100 and approve Agreement No. A-8518 with Interwest Consulting Group
October 4, 2023
DISCUSSION
The City released an RFP on July 10, 2023, and closed on August 14, 2023. A total of 224 vendors were notified. The City received seven proposals, none of which were local to Palmdale or the Antelope Valley. The seven proposals were then reviewed by an evaluation committee consisting of three members. Qualified firms were rated based on the following scoring methodology:
Criteria Maximum Score
Proof of Successful Past Performance and Experience:
Demonstrated present and past work record performance of Temporary Planning Staff Services.
Reference Responses (Comments from references regarding Respondent’s responsiveness to customer requirements,
compliance with the contract terms, conditions, and products and work quality).
20 Points
Maximum
Ability to Perform the Services
Proposer’s ability to perform general and specific experience in providing the required services, and the qualifications and abilities of personnel proposed to be assigned to perform the services. Project timeline and associated milestones are fair and reasonable. Key Personnel Resumes – experience of key staff on
comparable projects, or in performing comparable services. 20 Points
Maximum
Cost Proposal.
Mathematically calculated based upon the reasonableness of the cost or price proposed for services. Competitiveness of the price with the other proposals received and least amount of risk. Completeness and adequacy of data in support of the figures quoted, and the basis on which prices are quoted.
20 Points
Maximum
Technical, Plan, & Scheduled Approach.
Demonstrate the company’s ability to deliver the requirements of this RFP. The overall quality of the proposed plan for performing the required services and the demonstration of a clear understanding of the project.
Quality of RFP response is based on the overall quality and presentation of the proposer’s response documents.
Responses that are complete and organized and provide all relevant materials to properly evaluate the response and the company.
40 Points
Maximum
TOTAL POINTS 100
Report to Mayor and City Council
Re: Award RFP 23-001-2100 and approve Agreement No. A-8518 with Interwest Consulting Group
October 4, 2023
Bidders were required to submit responses to the RFP, including, but not limited to, a detailed breakdown of past performances, comparable work, and qualifications of available staff.
The following firms submitted statements of qualifications and proposal packages:
Bidder Location
1. BuzzClan Dallas, California
2. FasTemps Los Angeles, California
3. Interwest Irvine, California
4. Lancesoft Herndon, Virginia
5. Noor Staffing Group New York City, New York
6. Sign-In Solutions Oak Brook, Illinois
7. VCA Code Group Orange, California
The evaluation team identified Interwest as the bidder with exceptional qualifications, best value for the City, and familiarity with City projects and processes.
Interwest has high-level industry knowledge, which will provide flexibility to City staff in project assignments. Interwest currently assists with high-level complex projects such as Ritter Ranch, Antelope Valley Commerce Center, Anaverde Nuevo and Falcon Glen.
Continued use of Interwest for Planning staff services would ensure projects continue to be processed expeditiously while the City continues the search for permanent Planning staff. Interwest’s services will be utilized on an as-needed basis.
FISCAL IMPACT
Not to exceed $400,000 over three years. $135,000 is currently budgeted and available in Contractor Services – Professional Services accounts in the Economic and Community Development Department budget for FY 23-24. $132,500 will be requested in each of the remaining two budget years. Due to ongoing vacancies within the Planning Division, there will be savings accumulated in Salaries and Benefits to offset the cost of this contract. In addition, application and permit fees are collected to offset the cost to the City.
STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.
A. Seek innovative, cost effective, customer focused methods of service delivery.
B. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.
Report to Mayor and City Council
Re: Award RFP 23-001-2100 and approve Agreement No. A-8518 with Interwest Consulting Group
October 4, 2023
Prepared by: Zach Glynn, Management Analyst I
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, Interim City Attorney
ATTACHMENT
Agreement No. A-8518
AGREEMENT NO. A-8518
CONTRACT FOR SERVICES
BETWEEN THE CITY OF PALMDALE AND INTERWEST CONSULTING GROUP
This CONTRACT for services (“Contract” herein) is made and entered into by and between the City of Palmdale, a public body corporate and politic, (hereinafter called “CITY”), and INTERWEST CONSULTING GROUP, a corporation of the state of California, (hereinafter called “CONTRACTOR”). This Contract shall become effective on the date of the last signatory.
RECITALS
WHEREAS, CONTRACTOR represents that CONTRACTOR has the expertise and is qualified to perform the services described in this Contract.
NOW THEREFORE, CITY and CONTRACTOR, in consideration of the mutual covenants hereinafter set forth, agree as follows:
1 CITY PROJECT MANAGER
To provide the services required by this Contract, CONTRACTOR shall act under the authority and approval of Brenda Magana Director/designee, who shall oversee this Contract, the work performed by CONTRACTOR, assist CONTRACTOR with any necessary information, audit billings, and approve payments. The CONTRACTOR shall channel all contacts and requests through the City project manager. 2 DESCRIPTION OF WORK
2.1 CONTRACTOR shall provide the following services in a manner satisfactory to CITY:
Planning Aide Shall:
To provide information at the public counter and answer inquiries; Intake both ministerial and discretionary applications; Process ministerial applications; Perform technical level work in the support of current or advanced planning; Analyze and prepare correspondence related to administrative approvals; Assist in processing and filing of planning cases; and provide general staff assistance to higher level planning personnel.
Planning Aide Shall (Duties may include, but are not limited to, the following):
• To provide information, approve ministerial applications and other plans at the Planning Division public counter; and provide information over the phone and via email.
• Analyze and approve minor discretionary applications, research, and prepare correspondence related to such applications.
• Research and process zone verification requests.
1-18Concord - Document ID: generated after first signature • Assists in intake, processing and filing of current planning cases by checking for completeness of applicant submittal documents and notifying applicants when additional information is required.
• Complete follow-up on planning case review by identifying appropriate agencies needed for technical review and comment, identifying studies that may be required. • Conduct follow-up field work inspection and review, as assigned. • Compile data for planning studies and environmental reports, as assigned. • Transport planning or other documents to County offices, Planning Commissioners or other agencies, as required.
• Perform related duties as assigned.
Principal/Senior Planner:
The Senior Planner shall perform professional level work in the field of current or advanced planning; conduct special projects and research as assigned; and prepare reports and recommendations relative to the assigned area of responsibility.
This is the advanced journey level classification in the professional planning series.
Positions at this level perform more complex duties and possess specialized professional, technical or functional expertise and are regarded as seasoned and experienced professionals. They typically are assigned significant responsibilities above the journey level; possess specialized knowledge, abilities, skills, and experience; and exercise independent judgment in the performance of their duties.
Principal/Senior Planner Shall (Duties may include, but are not limited to, the following):
• Perform the most complex professional level work in the field of current or advanced planning.
• Gather and maintain demographic data and other related statistics. • Research, analyze, and interpret complex social, economic, population and land use data and trends.
• Compile information and make recommendations on special studies; prepare technical and complex reports.
• Make presentations to the Planning Commission, developers, community groups and outside agencies.
• Review development proposals and other requests made to the Planning Department for conformance with appropriate regulations; prepare reports of recommendations.
• Check commercial, industrial, and residential development plans for issuance of zone clearance; process permit applications.
• Act as project or program leader for general plan elements, environmental impact reports, comprehensive plans and other special planning studies involving utilization of planning disciplines such as transportation, urban design, capital facilities, 2-18Concord - Document ID: generated after first signature environmental analysis, growth management, zoning and land use regulation. • Interpret and apply environmental quality laws and regulations to ensure that development proposals, City projects and municipal code amendments are in compliance with State and Federal laws.
• Prepare general plan elements and amendments; make recommendations concerning long-range planning projects, including annexations, specific plans, specific plan amendments, precise plans, or complex subdivisions. • Perform extensive research regarding implementation of policies established by the general plan, zoning ordinance, or other land use and development ordinances. • Confer with and advise architects, builders, attorneys, contractors, engineers, and the public regarding City development policies and standards. • Prepare staff reports and graphic displays.
• Research and draft ordinances for review.
• Perform related duties as assigned.
Assistant Planner:
The Assistant Planner performs professional level work in the field of current or advanced planning; conducts special projects and research as assigned; and prepares reports and recommendations relative to the assigned area of responsibility.
This is the entry-level class in the professional planner series. Incumbents perform planning assignments of a less complex nature in the fields of current and advanced planning under immediate to general supervision. Incumbents are expected to demonstrate increased proficiency and to promote to the Associate Planner level.
Assistant Planner (Duties may include, but are not limited to, the following):
• Perform professional level work in the field of current or advanced planning. • Review and make recommendations on environmental documents and other special studies.
• Prepare and make presentations to the City Council, Planning Commission, developers, community groups, and outside agencies.
• Review development proposals and other requests made to the Planning Division for conformance with appropriate regulations and development standards; prepare reports, resolutions, ordinances and make recommendations to the appropriate decision-making body.
• Review commercial, industrial, and residential development plans for conformance with Conditions of Approval, Mitigation Measures, etc.
• Review and process ministerial applications, such as Zone Clearances, and administrative approvals, such as Minor Modifications, Minor Site Plan Reviews, etc. • Confer with and advise architects, builders, attorneys, contractors, engineers, and the general public regarding City development policies and standards. • Perform related duties as assigned.
3-18Concord - Document ID: generated after first signature Associate Planner:
The Associate Planner performs professional level work in the field of current or advanced planning; conducts special projects and research as assigned; and prepares reports and recommendations relative to assigned area of responsibility.
This is the journey level classification in the professional planning series. Positions at this level perform the full range of planner duties and tasks. The Associate Planner class is distinguished from the Assistant Planner by the performance of the full range of duties as assigned with only occasional instruction or assistance as new or unusual situations arise. Incumbents work independently under direction. Incumbents typically perform the more complex duties and tasks.
Associate Planner (Duties may include, but are not limited to, the following):
• Perform professional level work in the field of current or advanced planning. • Review and make recommendations on environmental documents and other special studies.
• Prepare and make presentations to the City Council, Planning Commission, developers, community groups, and outside agencies.
• Review development proposals and other requests made to the Planning Division for conformance with appropriate regulations and development standards; prepare technical and complex reports, resolutions, ordinances and make recommendations to the appropriate decision-making body.
• Review commercial, industrial, and residential development plans for conformance with Conditions of Approval, Mitigation Measures, etc.
• Act as a steward for the City’s General Plan, comprehensive development plans, and other special planning studies involving utilization of planning disciplines such as transportation, urban design, capital facilities, environmental analysis, growth management, zoning, and land use regulation.
• Interpret and apply environmental quality laws and regulations to ensure that development proposals are in compliance with local guidelines, State and Federal laws.
• Process a variety of planning applications; analyze, prepare staff reports and make recommendations to decision-makers concerning a variety of planning projects including, but not limited to, General Plan and Zoning Ordinance Amendments, Zone Changes, Comprehensive Development Plans, Annexations, Conditional Use Permits, etc.
• Perform research regarding implementation of policies established by the General Plan, Zoning Ordinance, or other land use and development ordinances. • Confer with and advise architects, builders, attorneys, contractors, engineers, and the general public regarding City development policies and standards. 4-18Concord - Document ID: generated after first signature • Perform related duties as assigned.
Vetting of Provided Staff
The Consultant will carefully pre-screen all temporary personnel prior to referral to the City to assure that they possess all of the required skills and abilities to perform the assigned tasks. The temporary personnel provided shall meet the minimum qualifications, minimum education and experience required for the requested services.
The Consultant shall conduct fingerprint-based background checks and employment reference checks for selected temporary personnel within a reasonable time frame prior to start date of assignment. The Consultant shall adhere to federal, state and privacy protection laws when conducting background checks and provide the required waivers, authorizations, notices, disclosures and releases. If the Consultant uses an outside company to conduct background checks, the Consultant shall only use registered, licensed investigators.
The Consultant shall strictly adhere to all state and federal laws with respect to discrimination in employment and shall not discriminate against any individual on the basis of race, color, religion, gender, sexual orientation, marital status, national origin, age or disability. The Consultant must conform to the provisions of the Immigration Reform and Control Act of 1986 by verifying the employment eligibility of each person referred to the City. If applicable, the Consultant must also conform to the provisions of the Patient Protection and Affordable Care Act (ACA) of 2010.
Procedure for Requesting Temporary Personnel
The Planning Division will contact the Consultant to request temporary Planning staffing services. The Planning Division shall be responsible for providing the Consultant with all necessary job information in order for the Consultant to place the most qualified competent temporary personnel with the City.
Depending upon the category and skill level required of the temporary personnel, the City may (1) ask the Consultant to provide resumes and other related information from which the City will select the appropriate individual(s), possibly after interviewing one or more candidates, or (2) ask the Consultant to select an individual with the appropriate skills and experience and arrange for that person to report to a designated work site on a specified date. Ideally, the Consultant will designate a qualified employee acceptable to the City at least two (2) working days prior to the date the temporary personnel is required to requested to work. Should the Consultant be unable to provide acceptable temporary personnel in a timely manner, the City may cancel its request with the Consultant.
5-18Concord - Document ID: generated after first signature Placement of Temporary Personnel with Appointing Authority The Consultant shall make all necessary arrangements with the City for the Consultant's employees to report and commence work for the City as temporary personnel. Should the City find that within the first four (4) hours of employment, the assigned temporary personnel fails to meet the minimum qualifications for the position or the work performance of the temporary personnel is unsatisfactory, the Consultant shall not charge the City for that person’s time. Upon notification, the Consultant shall then remove the temporary personnel from the City work site and, if requested by the City, provide a qualified replacement worker within 24 hours of removal.
Time Sheets and Invoices
The Consultant shall be responsible for communicating the Consultant’s safety practices, benefits, timecards, and safety practices to the City and to its employees.
The Consultant shall provide weekly time sheets, which may include a 9/80 work week to the City that shall be designed to accurately reflect actual hours worked per week by each temporary personnel.
The Consultant shall submit itemized invoices for payment directly to the City. The invoice shall indicate the full name of the temporary personnel, the hourly rate of pay received by the temporary personnel for each assignment (as indicated in the Consultant's original proposal), the agreed-upon hourly rate paid to the Consultant, including markup percentage (as indicated in the Consultant's original proposal), and the subsequent total bill hourly rate for each assignment. The Consultant shall be responsible for all payroll withholding requirements and shall provide any and all benefits required by law to each temporary personnel. Temporary personnel shall remain the employee of the Consultant and shall not receive City benefits.
The Consultant shall provide the City with detailed temporary personnel reports that include data such as: name of employee, classification specification title, start and end dates (or anticipated end date), etc.
The City of Palmdale is a member of the California Public Employees Retirement System, CalPERS. The City follows CalPERS rules regarding retired annuitants working after retirement. If you are a CalPERS retiree, all hours worked at the City must be reported to CalPERS. Per CalPERS, the hours you work cannot exceed 960 hours in a fiscal year (July 1 through June 30) for employment with all CalPERS employers combined. In addition, the City must enroll and report your hours to CalPERS. It is the responsibility of the CONTRACTOR to provide cumulative hourly usage for each employee providing services on a monthly invoice throughout the year.
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2.2 CONTRACTOR shall have no claim for compensation for any services or work, which has not been authorized by CITY’s Authorization to Proceed.
2.3 CONTRACTOR shall not accept any change of scope, or change in contract provisions, to this Contract unless issued in writing, as a contract change order or amendment and signed by CITY. Any extensions of time must be mutually agreed upon in writing and executed by both parties.
2.4 CONTRACTOR shall maintain in current status all Federal, State, and local licenses and permits required for the operation of the business conducted by the CONTRACTOR as applicable to this contract.
2.5 All work supplied under this Contract shall be fully guaranteed by CONTRACTOR for a minimum period of 365 days from the date of acceptance by CITY. Any defects of design, workmanship, or materials that would result in non- compliance with the Contract specifications shall be fully corrected by CONTRACTOR (including parts and labor) without cost to CITY. The written warranty shall be included with the delivered products to the using Department.
2.6 CITY shall provide to CONTRACTOR, without charge, all data, program information, including reports, records, maps, and other information, now in CITY’s possession, which may facilitate the timely performance of the work. 3 CONTRACTOR’S KEY PERSONNEL
3.1 Key Staff. CITY reserves the right to review and approve CONTRACTOR’S staff including all subcontractors to be assigned to any project by CONTRACTOR during the term of this Contract.
This Contract has been awarded to CONTRACTOR based partially on the key personnel proposed to perform the services required herein. CONTRACTOR shall not change nor substitute any of these key staff for work on this Contract without prior written approval by CITY.
CONTRACTOR’s Team and Key Personnel are as follows:
Paul Meschino - President
Eric Norris - Planning Lead
Nick Pergakes, AICP - Urban Design Lead
Eunice Ban, AICP - Senior Planner
Jennifer Williams, AICP - Senior Planner
Chantal Power, AICP - Senior Planner
Reina Schaetzl - Associate Planner
Malinda Lim - Associate Planner
Daisy Diep - Assistant Planner
7-18Concord - Document ID: generated after first signature Josh Valdez - Assistant Planner
Adrain Andujo - Planning Technician
This Services Contract has been awarded to CONTRACTOR based on its representation that those personnel and subcontractors submitted as part of its bid and listed above will perform the portions of the work listed above.
CONTRACTOR shall not deviate nor substitute any of these team members without prior written approval by CITY.
3.2 Subcontractors. During the performance of the Agreement, CONTRACTOR may engage such additional SUBCONTRACTORS as may be required for the timely completion of this Agreement. In the event of subcontracting, the sole responsibility for fulfillment of all terms and conditions of this Agreement rests with CONTRACTOR.
CONTRACTOR shall not enter into any Subcontract under this Contract for the performance of this Contract without the advance written approval of CITY. The subcontract shall incorporate by reference the terms and conditions of this Contract.
3.3 Direct Responsibility. All services required under this Contract shall be performed by CONTRACTOR, or under CONTRACTOR’s direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services.
3.3.1 CONTRACTOR shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Contract, and compliance with all reasonable performance standards established by CITY.
3.3.2 CONTRACTOR shall be responsible for payment of all CONTRACTOR’s employees’ and subcontractor’s wages and benefits and shall comply with all requirements pertaining to the employer’s liability, workers’ compensation, unemployment insurance, and Social Security.
3.3.3 CONTRACTOR shall indemnify and hold harmless CITY, and its respective officers, agents and employees from and against all claims, demands, damages or costs to the extent arising from CONTRACTOR’s negligent acts or omissions with respect to any liability, damages, claims, costs and expenses of any nature arising from alleged violations of personnel practices.
4 CONTRACT TERM
The term of this Contract is THREE (3) YEARS, commencing on the effective date, with CITY reserving the option to extend the agreement for TWO additional terms of one year each.
5 ACCEPTANCE AND DOCUMENTATION
8-18Concord - Document ID: generated after first signature Each task shall be reviewed and approved by the Contract Project Manager to determine acceptable completion.
5.1 Records. The CONTRACTOR shall retain and shall contractually require each SUBCONTRACTOR to retain all data and other “records” relating to the acquisition and performance of the Contract for a period of five years after the completion of the Contract.
5.2 Property of CITY. All materials, including reports, computer programs and other deliverables, supplied or created under this Contract are the sole property of CITY. CONTRACTOR is not entitled to a patent or copyright on those materials and may not transfer the patent or copyright to anyone else. CONTRACTOR shall not use or release these materials without the prior written consent of CITY.
5.3 Products. All equipment, materials, parts, and other components incorporated in the work or services performed pursuant to this Contract shall be new, or the latest model and of the most suitable grade for the purpose intended. All work shall be performed in a skilled and workmanlike manner. 6 PRICE
CITY shall pay to CONTRACTOR an amount not to exceed Four-Hundred Thousand dollars ($400000.00) for the completion of all the work and services described in Section 2, which sum shall include all costs or expenses incurred by CONTRACTOR, payable as follows:
6.1 An application for payment form must be submitted to CITY which shall include the following: a clear, detailed invoice reflecting work being billed for, a summary sheet showing percentage of work completed to date, amount/percent billed to date and current status of all tasks within a project; any/all backup documentation supporting the above items. Work schedule updates must also be included with the payment requests.
6.2 CONTRACTOR shall maintain adequate records and shall permit inspection and audit by CITY of CONTRACTOR’s charges under this Contract. CONTRACTOR shall make such records available to CITY during normal business hours upon 9-18Concord - Document ID: generated after first signature reasonable notice. Nothing herein shall convert such records into public records, and they will be available only to CITY and any specified public agencies. Such records shall be maintained by CONTRACTOR for one (1) year following completion of the work under this Contract unless a longer period of time is required by state or federal law, in which event CONTRACTOR shall retain its records for the time required by such laws.
6.3 Payment. A separate invoice shall be issued for each shipment of material or service performed, and no payment will be issued prior to receipt of material and/or completion of specified services and receipt of a correct invoice. 7 TAXES
7.1 CONTRACTOR shall pay all sales, consumer, use, and other similar taxes required to be paid by CONTRACTOR in accordance with state and local laws.
7.2 CONTRACTOR is an independent contractor and shall have no power or authority to incur any debt, obligation, or liability on behalf of CITY. No person employed by CONTRACTOR or acting on its behalf, in connection with this Contract shall be considered the Agent or employee of CITY.
7.3 CONTRACTOR shall be required to obtain a current City of Palmdale business license, as required by the Palmdale Municipal Code, before an Authorization to Proceed is issued.
7.4 When equipment, materials or supplies generally taxable to CONTRACTOR are eligible for a tax exemption due to the nature of the work, CONTRACTOR shall assist the City in applying for and obtaining such tax credits and exemptions, which shall be paid or credited to the City.
8 PATENT FEES AND ROYALTIES
CONTRACTOR shall pay all license fees and royalties and assume all costs incident to the use, in the performance of the work or the incorporation in the work of any invention, design, process, program, product or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, program, product or device is specified in the contract documents for use in the performance of the work and if, to the actual knowledge of CITY, its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by CITY in the contract documents.
CONTRACTOR shall indemnify and hold harmless CITY and anyone directly or indirectly employed by CITY from and against all claims, damages, losses and expenses (including attorneys' fees) arising out of any infringement of patent rights or copyrights incident to the use in the performance of the work, or resulting from the incorporation in the work of any invention, design, process, program, product or device not specified in the contract documents, and shall defend all such claims in connection with any alleged infringement of such rights. CONTRACTOR shall have 10-18Concord - Document ID: generated after first signature no liability arising from the use of such documents for any purpose or on any project other than that for which it was produced.
9 INDEMNIFICATION
To the fullest extent permitted by law, CONTRACTOR and any subcontractors working on its behalf agree to indemnify CITY, its officers, employees, agents and elected and appointed boards (hereinafter “Indemnified Parties”) for any third party loss, claim, demand, cause of action, cost, expense, damage, obligation or liability to the extent that arises out of or is connected with the negligent performance of any work under this agreement, including any negligent acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of CONTRACTOR, or its subcontractors, and regardless of any negligent acts, omissions or negligence (passive) of any person or entity indemnified hereunder. At their own expense, CONTRACTOR and, as applicable, any subcontractors working on its behalf, shall defend any third party suit, claim or action against the Indemnified Parties founded upon such loss, claim, demand, cause of action, cost, expense, damage, obligation or liability. CONTRACTOR shall ensure that the contract of any subcontractor working under this agreement contain an indemnity agreement, requiring the subcontractor to indemnify and defend the Indemnified Parties pursuant the terms set forth above. CONTRACTOR shall indemnify the Indemnified Parties, and save it harmless from any and all third party loss, damage, costs, expenses and attorney's fees suffered or incurred on account of any breach of the aforesaid obligations and covenants, and any other provision or covenant of this agreement.
CONTRACTOR’s obligations under this Agreement are contingent upon timely receipt of notice of the claim for which indemnification is sought, such that defense of the claim is not prejudiced, and the reasonable assistance of the indemnitee in connection with the defense of the claim.
10 INSURANCE
10.1 CONTRACTOR, at its expense, shall maintain in effect at all times during the performance of work under this Contract not less than the following coverage and limits of insurance, which shall be maintained with insurers listed “A” or better in the Best’s Insurance Guide and authorized to do business in the State of California.
Proof of Insurance, as identified in Section 10.8, must be reviewed and accepted by the City Attorney.
10.1.1 Workers’ Compensation and Employer’s Liability
Workers’ Compensation -- coverage as required by the State of California Employer’s Liability -- $1,000,000.00 each accident $1,000,000.00 policy limit bodily injury
$1,000,000.00 each employee bodily injury by disease
10.1.2 Commercial General Liability
$1,000,000.00 limit on a per occurrence basis
$2,000,000.00 general aggregate limit
10.1.3 Commercial Automobile Liability
11-18Concord - Document ID: generated after first signature $1,000,000.00 combined single limit including owned, non-owned and hired automobile coverage
10.1.4 Professional Liability (Errors & Omissions) Insurance* $2,000,000 limit on a per occurrence basis
10.1.4 Cyber Liability Insurance*
$1,000,000 limit on a per occurrence basis
10.2 All of CONTRACTOR’s policies shall contain an endorsement providing that written notice shall be given to CITY at least thirty (30) calendar days prior to termination, cancellation, or reduction of coverage in the policy.
10.3 Policies providing for bodily injury and property damage coverage shall contain the following:
A. An endorsement extending coverage to the City as an additional insured, as respects liability arising out of the performance of any work under the Contract.
Such insurance shall be primary insurance, as respects the interest of the City, and any other insurance maintained by the City shall be considered excess coverage and not contributing insurance with the insurance required hereunder. The certificates shall state: “The City of Palmdale, Successor Agency to the Community Redevelopment Agency of the City of Palmdale, Palmdale Civic Authority, Housing Authority, Industrial Development Authority, Airport Authority, their officers, agents, employees and volunteers are named as additional insured”.
B. “Severability of Interest” Clause.
10.4 Promptly upon execution of this Contract, and prior to commencement of any work, CONTRACTOR shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that CONTRACTOR has the required coverage and showing the required named insured. Within five (5) days of written request from CITY, CONTRACTOR shall deliver to CITY full and complete copies of all insurance policies required by this Contract.
10.5 The requirements as to the types and limits of insurance to be maintained by CONTRACTOR are not intended to and shall not in any manner limit or qualify CONTRACTOR’s liabilities and obligations under this Contract.
10.6 Any policy or policies of insurance that CONTRACTOR elects to carry as insurance against loss or damage to its equipment and tools or other personal property used in the performance of this Contract shall include a provision waiving the insurer’s right of subrogation against CITY.
10.7 All insurance coverage must be maintained throughout the duration of this Contract.
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10.8 Acceptable Proof of Insurance:
10.8.1 ACORD Certificate of Insurance listing all coverage, limits, deductibles and insured; and endorsements for all applicable coverage if agent has authority to issue it; or additional insured Form CG20100704 and CG20370704 or equivalent must be provided for general liability coverage. Additional insured form CA0001 must be provided for automobile liability coverage.
10.8.2 Binders of insurance for all coverage. Agents must confirm that policy endorsements have been ordered from the respective insurance companies. Upon issuance, policy endorsements and a corresponding Certificate of Insurance listing all insurers and coverage must be submitted to the City Attorney.
10.8.3 *When professional (E&O) liability and/or cyber liability coverage is provided on a “claims made basis”, CONTRACTOR will continue to renew the insurance for a period of five (5) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover CONTRACTOR, or its officers, employees or agents during the time this Agreement was in effect.
10.9 Notwithstanding any other provision of this Contract, CITY may immediately terminate this Contract if, at any time CONTRACTOR fails to maintain the required insurance for any period of time or fails to comply with any of the insurance requirements listed above.
10.10 CONTRACTOR shall require any and all subcontractors working on its behalf to provide insurance coverages and limits that are based on the scope of work and nature of risk being performed by the subcontractor. Any and all subcontractors working on behalf of CONTRACTOR shall be subject to all other insurance requirements that are stated herein.
Any deviation in this requirement will be CONTRACTOR's sole risk. CONTRACTOR's insurance requirements in Section 10 will not be impacted and/or limited by such deviation.
11 TERMINATION WITHOUT CAUSE
City reserves the right to terminate this Contract or any part thereof for its sole convenience with fifteen (15) days written notice. In the event of such termination, CONTRACTOR shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and subcontractors to cease such work. CONTRACTOR shall also surrender to CITY all finished or unfinished documents, processes, programs and other supplies and materials, which shall be City’s property. As compensation in full for services performed to the date of such termination, the CONTRACTOR shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between 13-18Concord - Document ID: generated after first signature the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract.
12 TERMINATION FOR CAUSE
If CITY determines that CONTRACTOR has failed to supply an adequate working force, or to provide services of proper quality, or has failed in any other respect to satisfactorily perform the services specified in this Contract, CITY shall give written notice to CONTRACTOR specifying all defaults to be remedied within thirty (30) days.
Such notice shall set forth the basis for CITY’s dissatisfaction and suggest corrective measures. If, after thirty days, CONTRACTOR has failed to implement appropriate corrective measures, CITY may elect to terminate this Contract in whole or in part.
12.1 In the event CITY terminates this Contract, in whole or in part, for cause, CITY may procure, upon such terms and in such manner, as it may deem appropriate, services similar to those terminated.
12.2 CONTRACTOR shall provide all finished or unfinished documents, data, studies, software, drawings, programs, processes, maps, photographs, reports, etc., prepared by CONTRACTOR within fifteen (15) working days after notice of termination. Upon such termination, CONTRACTOR shall be paid an amount equal to the value of the services provided and work performed as of the date of termination, taking into consideration the costs associated with hiring another CONTRACTOR to complete the services. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete documents when such are delivered to CITY, and to authorized reimbursement expenses. The above is in addition to any other remedies available by law or equity to CITY.
12.3 If, after notice of termination of the Contract under the provisions of this Section 12, it is determined, for any reason, that CONTRACTOR was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 11. 13 DISPUTE RESOLUTION
All claims, disputes, and other matters in question between CITY and CONTRACTOR arising out of or relating to this Contract or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties. 14 OWNERSHIP OF PRODUCT
All product, data, documents, programs and software including, but not limited to, research, field notes, investigations, analysis, studies, processes, software, instructions for use and other manuals, whether complete or incomplete, which are prepared or produced in the performance of this Contract are to be, and remain the property of CITY and shall be delivered to or left with CITY upon the completion or 14-18Concord - Document ID: generated after first signature termination of this Agreement. CONTRACTOR shall furnish CITY, upon its request, originals and reproducible and electronic copies of product, data reports, studies and of all other documents listed above. Electronic copies shall be provided in an unprotected format which allows CITY to copy, reproduce and makes changes as CITY deems necessary. For the avoidance of doubt, nothing in this Agreement shall be understood to grant CITY rights to pre-existing intellectual property of CONTRACTOR, including CONTRACTOR software and licensed software, or to any improvements thereto. CONTRACTOR shall have no liability arising from the use of such documents for any purpose or on any project other than that for which it was produced
15 DELEGATION AND ASSIGNMENT
15.1 CONTRACTOR shall not delegate or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of CITY, which shall not be unreasonably delayed or withheld; provided, however, that claims for money due or to become due to CONTRACTOR from CITY under this Contract may be assigned to a bank, trust company or other financial institution without such approval.
15.2 Any assignment, delegation or subcontract shall be made in the name of CONTRACTOR and shall not bind or purport to bind CITY and shall not release CONTRACTOR from any obligations under this Contract including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegates and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to CONTRACTOR under this Contract.
16 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY
16.1 In performance of this Contract, CONTRACTOR shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status.
CONTRACTOR will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their sex, color, race, religion, ancestry, national origin, disability, medical condition including the medical condition of Acquired Immune Deficiency Syndrome (AIDS) or any condition related thereto, marital status, sexual orientation, age, gender, gender identity, gender expression, genetic information, or military and veteran status . Affirmative action relating to employment shall include, but not be limited to the following:
employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
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16.2 The provisions of subsection 16.1 above shall be included in all solicitations or advertisements placed by or on behalf of CONTRACTOR for personnel to perform any services under this Contract. CITY shall have access to all documents, data and records of CONTRACTOR and its subcontractors for purposes of determining compliance with the equal employment opportunity and non-discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 which is incorporated herein by this reference. A copy of Executive Order No. 11246 is available for inspection at, and on file with, the Palmdale City Clerk’s Office. 17 FINANCIAL INTEREST CERTIFICATION
17.1 CONTRACTOR warrants that no person has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee; and that no officer or employee of the CITY has any interest, financially or otherwise, in CONTRACTOR’s firm.
17.2 For breach or violation of this warranty, CITY shall have the right to annul this Contract without liability or at its discretion to deduct from the Contract Price or consideration, the full amount of such commission, percentage, brokerage or contingent fee.
18 CONFLICT OF INTEREST
18.1 CONTRACTOR stipulates that its officers and employees do not now have a conflict of interest and it further agrees for itself, its officers and its employees that it will not contract for or accept employment for the performance of any work or services with any individual business, corporation or government unit that would create a conflict of interest in the performance of its obligations pursuant to this Contract or which would cause CONTRACTOR to be “financial interested” (as provided in California Government Code Section 1090 et seq. or 87100 et seq.) in any contract or decision made by CITY on any matter.
18.2 CONTRACTOR shall not employ any City official or employee to perform any work required pursuant to this Contract.
18.3 To the extent required by the City Manager or his designee, CONTRACTOR shall complete and file with the City Clerk a Form 700 Statement of Economic Interests disclosing any reportable property interests, income, gifts, investments, or business positions.
19 COMPLIANCE WITH LAW
19.1 CONTRACTOR shall comply with all state and federal laws, including but not limited to, the requirement to hire only those persons authorized by federal law to work in the United States. If CONTRACTOR uses any subcontractors to complete this Contract, this same requirement shall be included in all subcontracts and strictly enforced by CONTRACTOR.
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19.2 The law of the state of California shall govern this Contract. The venue of any legal action, either formal or informal, shall be the County of Los Angeles. 20 NOTICES
Any notice required under this Contract shall be in writing, addressed to the appropriate party at its address on the signature page and given personally or by registered or certified mail postage prepaid, or by a commercial courier service. All notices shall be effective upon the date of receipt.
21 ENTIRE AGREEMENT AND AMENDMENTS
21.1 This Contract is the complete Agreement between the parties and supersedes all prior proposals, agreements, and understandings between the parties and may not be modified or terminated orally.
21.2 No attempted waiver of any of the provisions hereof, nor any modification in the nature, extent or duration of the work to be performed by CONTRACTOR hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.
21.3 The failure of any party to enforce against another party any provision of this Contract shall not constitute a waiver of that party’s right to enforce such a provision at a later time, and shall not serve to vary the terms of this Contract. 17-18Concord - Document ID: generated after first signature 22 ATTORNEY’S FEES
If any action at law or in equity is brought to enforce or interpret any provisions of this Contract, the prevailing party in such action shall be entitled to reasonable attorney’s fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded.
In Witness Whereof, the parties hereto have caused this Contract to be executed and attested by their respective officers thereunto duly authorized.
CITY OF PALMDALE: INTERWEST CONSULTING GROUP:
Ronda Perez
City Manager
Paul Meschino
President of Operations
ADDRESS FOR NOTICE:
CITY OF PALMDALE
38250 Sierra Highway
Palmdale, CA 93550
ADDRESS FOR NOTICE:
INTERWEST CONSULTING GROUP
1 Jenner Suite 160
Irvine, CA 92618
APPROVE AS TO FORM:
William P. Curley, III
Interim City Attorney
ATTEST:
Roxanne Faber
Acting City Clerk
---------------------------------------- INTERNAL USE ONLY ----------------------------------------
■Certificate(s) and Endorsement(s) attached
■Confirmed business name on contract with certificate(s) ■Attached Agreement Checklist and met all requirements
18-18Concord - Document ID: generated after first signature City Council Staff Report
DATE: OCTOBER 4, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: ECONOMIC AND COMMUNITY DEVELOPMENT DEPARTMENT
PLANNING DIVISION
DISTRICT: ALL
SUBJECT: APPROVE AMENDMENT NO. 1 TO AGREEMENT WITH INTERWEST
CONSULTING GROUP TO INCREASE THE CONTRACT PRICE BY
$150,000 FOR AN AMOUNT NOT TO EXCEED $2 50,000 FOR
RITTER RANCH PLANNING SERVICES.
ISSUE
Approve Amendment No. 1 to Agreement with Interwest Consulting Group to increase the contract price by $1 50,000 for an amount not to exceed $2 50,000 for Ritter Ranch Planning services.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve Amendment No. 1 to Agreement No. A -7581 with Interwest Consulting Group (Interwest) in an amount not to exceed $250,000 for Ritter Ranch Planning services; and
2. Authorize the City Manager or her designee to execute Amendment No. 1 to Agreement No. A-7581, including minimal and/or non-substantiative changes.
BACKGROUND
On August 1, 2021, the City entered into an agreement with Interwest with a not to exceed amount of $100,000 for Ritter Ranch Planning services. The intent of this agreement was to provide a series of project phases with specialized services geared toward the development of Ritter Ranch. Due to the complexity of the Ritter Ranch project and lack of senior-level Planning staff due to ongoing staffing vacancies, we determined that utilizing Interwest as the project manager for Ritter Ranch would be the most expeditious and business-friendly approach. Interwest has assigned a Project Manager who reviews all plans, drafts letters, staff reports, and resolutions, attends meetings , and facilitates communication among City divisions and external agencies to ensure quick response times.
Report to Mayor and City Council
Re: Approve Amendment No. 1 to Agreement No. A-7581 with Interwest Consulting Group
October 4, 2023
On September 1, 2020, the City and Preston Hollow Capital, LLC entered into Agreement No. A-7107, which states that the City will be reimbursed for costs associated with Ritter Ranch development, including existing Ritter Ranch Agreements, new Ritter Ranch Agreements, any Bonds, land use approvals, City staff time, and usage of third-party consultants to handle such workload. Preston Hollow Capital, LLC completes the reimbursement by providing deposit advances to the City to offset qualifying expenses at the discretion of the Director of Finance.
DISCUSSION
As the Ritter Ranch development progresses, Interwest remains heavily involved due to the complex, time-consuming nature of the project. Interwest provides high-level specialized Planning services that continue to assist with expediting reviews and communication among City divisions and external agencies. Interwest’s experience and knowledge of the Ritter Ranch project has proven to be invaluable. The City is requesting an Amendment to Agreement No. A-7581 to increase the project term by three (3) years, expiring on August 1, 2027, and increase the agreement amount by $150,000 for a total compensation not to exceed $250,000.
FISCAL IMPACT
No fiscal impact to the City. Ritter Ranch Planning expenses are reimbursed by Preston Hollow Capital, LLC as indicated in Agreement No. A-7107.
STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.
A. Seek innovative, cost effective, customer focused methods of service delivery.
B. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.
Prepared by: Zach Glynn, Management Analyst I
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, Interim City Attorney
ATTACHMENT
1. Agreement No. A-7581 Amendment No. 1
2. Agreement No. A-7581
1st AMENDMENT TO AGREEMENT A-7581
BETWEEN THE CITY OF PALMDALE AND INTERWEST CONSULTING GROUP
This 1st Amendment to Agreement No. A-7581 (“Agreement”) is made and entered into by and between the City of Palmdale (hereinafter called “CITY”) and INTERWEST CONSULTING GROUP (hereinafter called "CONSULTANT"). This Contract shall become effective on the date of the last signatory.
WHEREAS, on August 1, 2021 ("Original Agreement") the CITY and CONSULTANT entered into an agreement to provide:
Consultant services to assist with processing entitlements associated with the Ritter Ranch Specific Plan.
WHEREAS, the parties desire to amend the Original Agreement to:
Increase agreement amount, modifications to form language, term of contract and update the fee schedule to reflect current billing rates.
NOW THEREFORE, the parties agree as follows:
1. The contract term identified in Section 4 is amended to increase the term of the original agreement by three (3) years expiring on August 1, 2027.
2. The 1st paragraph of Section 6 Patent Fees and Royalties, shall be amended to read as follows:
CONSULTANT shall pay all license fees and royalties and assume all costs incident to the use, in the performance of the work of the incorporation in the work of any invention, design, process, product or device which is the subject of patent right of copyrights held by others. If a particular invention, design, process , product or device is specified by the CITY for use in the performance of the work and if, to the actual knowledge of the CITY, its use is subject to patent right or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by CITY in the contract documents. CONSULTANT shall indemnify and hold harmless CITY and anyone directly or indirectly employed by CITY from and against all claims, damages, losses and expenses (including attorneys' fees) arising out of any infringement of patent rights or copyrights incident to the use in the performance of the work, or resulting from the incorporation in the work of any invention, design, process, product or device not specified by CITY, and shall defend all such claims in connection with any alleged infringement of such rights.
CONSULTANT shall have no liability arising from the use of such documents for any purpose or on any project other than that for which it was produced.
3. The 4th paragraph of Section 8 Consultant's Personnel, shall be amended to read as follows:
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8.4 CONSULTANT shall indemnify and hold harmless CITY, and its respective officers, agents and employees from and against all third party claims, demands, damages or costs to the extent arising from CONSULTANT'S negligent acts or omissions with respect to any liability, damages, claims, costs and expenses of any arising from alleged violations of personnel practices.
4. The compensation identified in Section 9.1 is amended to increase the total price of the Agreement by One-Hundred and Fifty Thousand Dollars ($150,000), not to exceed the amount of Two-Hundred and Fifty Thousand Dollars ($250,000).
5. Section 9.1 Fee Schedule shall be amended to read as follows: *Insert Billing Rates Chart*
6. The 1st paragraph in Section 10 Indemnification shall be amended to read as follows:
To the fullest extent permitted by law, CONSULTANT and any contractors or subcontractors working in its behalf agree to indemnify, defend CITY, its officers, employees, agents and elected and appointed boards (hereinafter "Indemnified Parties") for any third party loss, claim, demand, cause of action, cost, expense, damage, obligation or liability to the extent that they arises out of or connected with the negligent performance of any work under this agreement, including any acts or omissions, willful misconduct or negligent conduct, whether active or passive, on the part of CONSULTANT, its contractors or subcontractors, and regardless of any negligent acts, omissions or negligence of any person or entity indemnified hereunder. At their own expense, CONSULTANT and, as applicable, any contractors or subcontractors working on its behalf, shall defend any third party suit, claim or action against the Indemnified Parties founded upon such loss, claim, demand, cause of action, cost, expense, damage, obligation or liability. CONSULTANT shall ensure that the contract of any contractor or subcontractor to indemnify and defend the Indemnified Parties pursuant the terms set forth above. CONSULTANT shall indemnify the Indemnified Parties, and save it harmless from any and all third party loss, damage, costs, expenses and attorneys fees suffered or incurred on account of any breach of the aforesaid obligations and covenants, and any other provision or covenant of this agreement. CONSULTANT's obligations under this Agreement are contingent upon timely receipt of notice of the claim for which indemnification is sought, such that defense of the claim is not prejudiced, and the reasonable assistance of the indemnitee in connection with the defense of the claim.
7. The 1st paragraph in Section 15 Ownership of Documents shall be amended to read as follows:
All documents, including, but not limited to, research, field notes, investigations, 2-4Concord - Document ID: generated after first signature analysis, and studies which are prepared in the performance of this Contract are to be, and remain the property of CITY. CONSULTANT shall furnish CITY, upon its request, originals or reproducible or electronic copies of reports, studies and of all other documents listed above. For the avoidance of doubt, nothing in this Agreement shall be understood to grant CITY rights to pre-existing intellectual property of CONSULTANT, including CONSULTANT software and licensed software, or to any improvements thereto. CONSULTANT shall have no liability arising from the use of such documents for any purpose or on any project other than that for which it was produced.
8. The 1st paragraph in Section 16 Subcontracting, Delegation and Assignment shall be amended to read as follows:
CONSULTANT shall not delegate, subcontract or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of CITY, which shall not be unreasonably delayed or withheld provided, however, that claims for money due or to become due to CONSULTANT from CITY under this Contract may be assigned to a bank, trust company or other financial institution without such approval. Any proposed delegation, assignment or subcontract shall provide a description of the services covered, indemnification or the proposed assignee, delegates or subcontractor, and an explanation of why and how the same was selected, including the degree of completion involved. Any proposed agreement with an assignee, delegates or subcontractor shall include the following:
A. The amount involved, together with CONSULTANT's analysis of such cost or price; and
B. A provision requiring that any subsequent modification of amendment shall be subject to the prior written consent of CITY; and
C. The requirement to hire only those persons authorized by federal law to work in the United States.
All other terms and conditions of the Original Agreement not amended herein, remain in full force and effect.
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In Witness Whereof, the parties hereto have caused this Contract to be executed and attested by their respective officers thereunto duly authorized.
CITY OF PALMDALE:
INTERWEST CONSULTING GROUP:
Ronda Perez
City Manager
Paul Meschino
President of Operations
ADDRESS FOR NOTICE:
CITY OF PALMDALE
38250 Sierra Highway
Palmdale, CA 93550
ADDRESS FOR NOTICE:
INTERWEST CONSULTING GROUP
1 Jenner Suite 160
Irvine, CA 92618
APPROVE AS TO FORM:
William P. Curley, III
Interim City Attorney
ATTEST:
Roxanne Faber
Acting City Clerk
---------------------------------------- INTERNAL USE ONLY ----------------------------------------
■Certificate(s) and Endorsement(s) attached
■Confirmed business name on contract with certificate(s) ■Original contract and previous amendment(s) (if any) are attached ■Attached Agreement Checklist and met all requirements
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City Council Staff Report
DATE: OCTOBER 4, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: 1 & 5
SUBJECT: APPROVE AGREEMENT WITH PARSON S TRANSPORATION
GROUP FOR ENVIRONMENTAL AND DESIGN SERVIC ES FOR PN
860, AVENUE R AT SIERRA HIGHWAY RAILROAD CROSSING
IMPROVEMENT PROJECT , IN THE AMOUNT OF $706,404 FOR A
TERM OF 600 DAYS
ISSUE
Approve Agreement with Parsons Transportation Group for Environmental and Design Services for PN 8 60, Avenue R at Sierra Highway Railroad Crossing Improvement Project, in the amount of $706,404 for a term of 600 days.
RECOMMENDATION
Staff recommends that the City Council:
1. Approve Agreement with Parsons Transportation Group for Environmental and Design Services for PN 8 60, Avenue R at Sierra Highway Railroad Crossing Improvement Project, in the amount of $706,404.
2. Authorize the City Manager or h er designee to execute Agreement No. A-8339 with Parsons Transportation Group, including making non-substantive changes.
BACKGROUND
This project will provide for the upgrade of the existing railway system at the intersection of Avenue R and Sierra Highway. The California Public Utilities Commission (CPUC) Rail Crossings and Engineering Branch has proposed safety improvements to the existing railway system that will be funded under the Railroad-Highway Grade Crossing Program (RHGCP), Section 130 funds. The improvements will be contracted by both railroad agencies, Union Pacific Railroad (UPRR) and Southern California Regional Rail Authority (SCRRA/Metrolink) along with the City of Palmdale and will be managed by the Caltrans Divisions of Local Assistance.
Report to Mayor and City Council
Approval of Agreement No. A-8339
October 4, 2023
DISCUSSION
On May 9, 2023, the City released a Request for Qualifications and Proposals for environmental study and engineering design services for this project. Notification of this package was sent electronically to 427 registered vendors in the City’s PlanetBids vendor database.
On June 6, 2023, three (3) responses were received: Parsons Transportation Group, Dokken Engineering, and TKDA. Staff evaluated the packages and determined Parsons Transportation Group to be the most qualified firm. The following criteria were used to rank the consultants.
Category Maximum Value
Project Understanding and Approach 35
Relevant Consultant Experience
Familiarity with State and Railroad procedures
30 20
Quality of Consultant Staff 10
General Conformance to RFP 5
Total Earned Value 100
Parsons Transportation Group has extensive knowledge of the design of railroad crossings. Parsons Transportation Group is currently providing similar design services on the Rancho Vista Boulevard at Sierra Highway Railroad Safety along with Palmdale Boulevard and Sierra Highway street improvement projects.
FISCAL IMPACT
This project is funded with California Public Utilities Commission Funds which have been allocated in Account No. S0075240-724525, with a current balance of $3,749,700.
SCOPE OF WORK COST
A-8339 Parsons Transportation Group $706,404
Account Number Starting Balance Remaining Balance
S0075240-724525 $3,749,700 $3,043,296
Report to Mayor and City Council
Approval of Agreement No. A-8339
October 4, 2023
STRATEGIC PLAN
Goal III: Invest in infrastructure to improve community livability.
C. Plan and maintain safe and attractive neighborhoods, streets, facilities, and public spaces with exciting programming that promotes active fun for everyone.
Prepared by: Lynn Glidden, P.E., Public Works Director
Certified as to availability of Funds: Janelle Samson, Director of Finance Approved by: Ronda Perez, City Manager
Approved as to form: William P. Curley, III, Interim City Attorney
ATTACHMENTS
1. Agreement No. A-8339
AGREEMENT NO. A-8339
CONTRACT FOR DESIGN PROFESSIONAL SERVICES
BETWEEN THE CITY OF PALMDALE AND PARSONS TRANSPORTATION GROUP
THIS CONTRACT FOR DESIGN PROFESSIONAL SERVICES (“Contract” herein) is made and entered into by and between the City of Palmdale a public body corporate and politic, (hereinafter called “CITY”) and PARSONS TRANSPORTATION GROUP (hereinafter called “PROJECT DESIGNER”). This Contract shall become effective on the date of the last signatory.
RECITALS
WHEREAS, City desires to engage PROJECT DESIGNER to perform certain technical and professional services, as provided herein, in connection with that certain project identified as PN 860, Avenue R Railroad-Highway Grade Crossing Program.
WHEREAS, PROJECT DESIGNER represents that PROJECT DESIGNER has the expertise and is qualified to perform the services described in this Contract and is duly registered under the laws of the State of California.
WHEREAS, PROJECT DESIGNER desires to accept such engagement.
NOW, THEREFORE, the parties agree as follows:
1 DESCRIPTION OF WORK
1.1 The City hereby engages PROJECT DESIGNER, and PROJECT DESIGNER accepts such engagement, to perform the following design professional services in a manner satisfactory to CITY:
PROJECT DESIGNER shall prepare engineering studies, construction documents with details plans, specifications, and estimates (PS&E), sufficient for a competitively bid, federal-aid construction project for a Railway-Highway Crossings Safety Project developed through the Diagnostic Study Method.
PROJECT DESIGNER shall analyze/accomplish the following engineering inputs and design requirements:
- Prepare Preliminary Environmental Study Form to provide CEQA Clearance. - Attend field meetings with parties involved during design process. - Conduct traffic queuing study for adjacent intersection. - Install pre-signal or queue-cutter, as recommended by traffic study/diagnostic team. - Review and modify traffic signal operation, including railroad preemption operation. - Reconstruct, widen, and/or extend raised medians east and west of the crossing. - Conduct a pedestrian study, including counts/video studies identifying:
1-16Concord - Document ID: generated after first signature - Daily pedestrian/bicycle counts for seven consecutive days - Routes of users including origination and destination - Pedestrians and bicycle users crossing Avenue R
- Evaluate the feasibility of extended sidewalks and pedestrian warning devices. - Reconstruct sidewalk at the north side of the crossing - Install pedestrian channelization, tactile strips, and egress gates. - Install additional street lighting near the crossing. - Lead for CPUC General Order 88-B request submittal.
PROJECT DESIGNER shall obtain Topographic Survey of the Project Area as outlined below:
a. Survey limits shall include the intersection of Avenue R and Sierra Highway and extend 1,000 feet beyond the intersection lines at Avenue R and Sierra Highway, and 1,000 feet beyond the railroad grade crossing at Avenue R. b. Survey points shall be spaced at a maximum of 10 feet within the intersection limits, and a maximum of 50 feet beyond the intersection lines. The surveyed points shall include enough information to design roadway cross-sections, including drainage improvements and slope easements, as necessary. c. Survey information shall include non-physical features such as right of way lines, property lines, and roadway center lines, as well as all above ground visible features, such as roadway edge lines, striping, signage, pavements, curbs, gutters, sidewalks, drainage features, manholes, light poles, and both overhead and underground utilities.
PROJECT DESIGNER shall perform Utility Research and Potholing as outlined below:
a. Perform a field review and research available public records for both public and franchise utilities to determine their locations and plot the location of known existing utilities, including but not limited to water, wastewater, storm drain, electric, gas, telecommunication, cable TV and fiber optic cable.
b. Research relationship between existing right-of-way and utilities to establish prior rights regarding necessary utility relocations.
c. Pothole at location of proposed traffic signal poles to the depth of signal foundation design, as well as at the location of underground utilities at potential conflict locations to determine their horizontal and vertical location for clearance and connection points.
Work within right of way will require an encroachment permit (no fee), as well as a traffic control plan per the California Manual on Uniform Traffic Control Devices (CA MUTCD).
PROJECT DESIGNER shall prepare Plans, Specifications, and Estimates (PS&E) as outlined below:
a. Review as-built plans (Street Improvement, Signing and Striping, Traffic Signal, etc. in the vicinity of the area.
2-16Concord - Document ID: generated after first signature b. Prepare 30%, 60%, 90%, 100%, and Final Plans, Specifications, and Estimates (PS&E) for Street Improvement, Signing and Striping, and Traffic Signal Improvements.
c. Plans shall show plan, profile, and cross section of intersection improvements, median improvements, widening of Avenue R, sidewalk, curb ramps, lighting, fencing, swing gates, and any other items as required by Caltrans agreement. d. Signage, Striping, and Traffic Signal modification plans shall extend 500 to 1,000 beyond the intersection, or as determined by the design of the roadway improvements.
PROJECT DESIGNER shall provide General Coordination and Project Management services as outlined below:
a. Coordinate with City for plan review, submittal, and approval. b. Coordinate with utility agencies as needed for service, relocation, etc. c. Correlate project specifications with construction plan notes and material specifications.
1.2 Project deliverables shall be reviewed and approved by CITY to determine acceptable completion. CITY shall have the right to review and inspect the work during the course of its performance at such times as may be specified by CITY.
1.3 PROJECT DESIGNER shall not accept any change of scope, or change in contract provisions, unless issued in writing, as a contract change order or amendment and signed by CITY. Any extensions of time must be mutually agreed upon in writing and executed by both parties.
1.4 CITY shall provide to PROJECT DESIGNER, without charge, all data, program information, including reports, records, maps, and other information, now in CITY’s possession, which may facilitate the timely performance of the work. 2 CITY PROJECT MANAGER
To provide the design professional services required by this Contract, PROJECT DESIGNER shall act under the authority and approval of a Project Manager appointed by the Director of Public Works/designee. The City Project Manager will oversee the work under this Contract, assist PROJECT DESIGNER with any necessary information, audit billings, and approve payments. PROJECT DESIGNER shall channel reports, deliverables and special requests through the City Project Manager.
3 PROJECT DESIGNER’S KEY PERSONNEL
PROJECT DESIGNER’s Team and Key Personnel are as follows:
Nicole DePuy, PE
Matt Brash, PE
Daniel Kachi, PE
3-16Concord - Document ID: generated after first signature Anne Kochaon, QEP
Matt Brash, PE
Jeff Sparks, PE
Greta Aiken, PE
Justin Purcell, EIT
Osmar Rodriguez, PE
This Design Professional Services Contract has been awarded to PROJECT DESIGNER based on its representation that those personnel and subcontractors listed above will perform the portions of the work listed above. PROJECT DESIGNER shall not deviate nor substitute any of these team members without prior written approval by CITY.
4 COMMENCEMENT AND COMPLETION OF WORK
The services for the Project shall commence when CITY, acting by and through its Project Manager, issues a written authorization to proceed. PROJECT DESIGNER shall complete all work described in the Description of Work and submit final deliverables within six hundred (600) calendar days of said authorization. PROJECT DESIGNER shall have no claim for compensation for any services or work, which has not been authorized by CITY’s authorization to proceed. 5 TAXES
5.1 PROJECT DESIGNER shall pay all sales, consumer, use, and other similar taxes required to be paid by PROJECT DESIGNER in accordance with state and local laws.
5.2 PROJECT DESIGNER is an independent contractor and shall have no power or authority to incur any debt, obligation, or liability on behalf of CITY. No person employed by PROJECT DESIGNER or acting on its behalf, in connection with this Contract shall be considered the Agent or employee of CITY.
5.3 PROJECT DESIGNER shall be required to obtain a current City of Palmdale business license, as required by the Palmdale Municipal Code, before an Authorization to Proceed is issued.
6 PATENT FEES AND ROYALTIES
PROJECT DESIGNER shall pay all license fees and royalties and assume all costs incident to the use, in the performance of the work or the incorporation in the work of any invention, design, process, product or device which is the subject of patent rights or copyrights held by others. If a particular invention, design, process, product or device is specified by CITY for use in the performance of the work and if, to the actual knowledge of CITY, its use is subject to patent rights or copyrights calling for the payment of any license fee or royalty to others, the existence of such rights shall be disclosed by CITY in the contract documents. PROJECT DESIGNER shall indemnify 4-16Concord - Document ID: generated after first signature and hold harmless CITY and anyone directly or indirectly employed by CITY from and against all claims, damages, losses and expenses (including attorneys' fees) arising out of any infringement of patent rights or copyrights incident to the use in the performance of the work, or resulting from the incorporation in the work of any invention, design, process, product or device not specified by CITY, and shall defend all such claims in connection with any alleged infringement of such rights. 7 STANDARDS OF PERFORMANCE
7.1 PROJECT DESIGNER shall be responsible for the completeness and accuracy of its services and work and documents resulting there from, and CITY shall not be responsible for discovering deficiencies therein. PROJECT DESIGNER shall correct any such deficiencies or errors without additional compensation and without cost to CITY, except to the extent any such deficiency is directly attributable to deficiencies in CITY-furnished information.
7.2 PROJECT DESIGNER shall be familiar with CITY’s Standard Details and Specifications and other relevant CITY regulations. PROJECT DESIGNER shall ensure there are no conflicts among the Contract Documents including, but not limited to, the CITY’s Standard Specifications and Special Provisions for Construction Contracts, the plans and specifications prepared by PROJECT DESIGNER, any standard details or specifications incorporated therein by reference, and the Construction Contract.
8 PROJECT DESIGNER’S PERSONNEL
8.1 All services required under this Contract shall be performed by PROJECT DESIGNER, or under PROJECT DESIGNER’s direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services.
8.2 PROJECT DESIGNER shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Contract, and compliance with all reasonable performance standards established by CITY.
8.3 PROJECT DESIGNER shall be responsible for payment of all PROJECT DESIGNER’s employees’ and subcontractor’s wages and benefits and shall comply with all requirements pertaining to the employer’s liability, workers’ compensation, unemployment insurance, and Social Security.
8.4 PROJECT DESIGNER shall indemnify and hold harmless CITY, and its respective officers, agents and employees from and against all claims, demands, damages or costs arising from PROJECT DESIGNER’s acts or omissions with respect to any liability, damages, claims, costs and expenses of any nature arising from alleged violations of personnel practices.
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8.5 PROJECT DESIGNER shall pay, if required by applicable law, not less than the general prevailing hourly wage rates, as determined by the Director of the Department of Industrial Relations pursuant to the California Labor Code, for each craft, classification, or type of worker needed to perform the Contract. Copies of the prevailing rate of per diem wages are on file in the office of the Director of Public Works.
9 COMPENSATION
9.1 For all of work and services including the various phases of tasks as described in Section 1, Scope of Services, CITY shall pay to PROJECT DESIGNER an amount not to exceed the sum of SEVEN HUNDERED SIX THOUSAND FOUR HUNDRED THREE AND THIRTY FIVE CENTS dollars ($706403.35), as follows:
Fee Schedule is shown in detail in Exhibit B
PROJECT DESIGNER shall perform no work in excess of the total contract price without prior approval of CITY. Total contract price includes expenses related to travel to and from CITY to meet with City and to appear before City Council or any other board or commission of CITY.
9.2 An application and certification for payment form must be submitted to CITY which shall include the following: a clear, detailed invoice reflecting hours being billed for, a summary sheet showing percentage of work completed to date, amount/percent billed to date and current status of all tasks within the project; any/all backup documentation supporting the above items. Work schedule updates must also be included in the monthly progress payment requests.
9.3 PROJECT DESIGNER shall maintain adequate records and shall permit inspection and audit by CITY of PROJECT DESIGNER’s charges under this Contract. PROJECT DESIGNER shall make such records available to CITY during normal business hours upon reasonable notice. Nothing herein shall convert such records into public records, and they will be available only to CITY and any specified public agencies. Such records shall be maintained by PROJECT DESIGNER for one (1) year following completion of the work under this Contract unless a longer period of time is required by state or federal law, in which event PROJECT DESIGNER shall retain its records for the time required by such laws.
9.4 No payment made hereunder by CITY to PROJECT DESIGNER, shall be construed as an acceptance by CITY of any work or materials, nor as evidence of satisfactory performance by PROJECT DESIGNER of its obligations under this Contract.
10 INDEMNIFICATION
To the fullest extent of the law, and consistent with Civil Code section 2782.8, PROJECT DESIGNER agrees to defend, indemnify, hold free and harmless the 6-16Concord - Document ID: generated after first signature CITY, its elected and appointed officials, officers, agents and employees, at PROJECT DESIGNER’s sole expense, from and against any and all claims, demands, actions, suits or other legal proceedings brought against CITY, its elected and appointed officials, officers, agents, and employees to the extent arising out of, pertaining to, or relating to the negligence, recklessness, or willful misconduct of the PROJECT DESIGNER, its employees, and/or authorized subcontractors, in performing design professional services pursuant to this Agreement. The defense obligation provided for hereunder shall apply without any advance showing of negligence, recklessness or willful misconduct of the PROJECT DESIGNER, its employees, and/or authorized subcontractors, but shall be required whenever any claim, action, complaint, or suit asserts as its basis the negligence, recklessness, or willful misconduct of PROJECT DESIGNER, its employees, and/or authorized subcontractors, and/or whenever any claim, action, complaint or suit asserts liability against the CITY, its elected and appointed officials, officers, agents, and employees based upon such negligence, recklessness, or willful misconduct, whether or not the PROJECT DESIGNER, its employees, and/or authorized subcontractors are specifically named or otherwise asserted to be liable. Notwithstanding the foregoing, the PROJECT DESIGNER shall not be liable for the defense or indemnification of the CITY for claims, actions, complaints or suits arising out of the sole or active negligence or willful misconduct of the CITY. Further, in no event shall the cost to defend charged to the design professional exceed the design professional’s proportionate percentage of fault, unless otherwise specified in Civil Code section 2782.8. This provision shall supersede and replace all other indemnity provisions contained either in the CITY’s specifications or PROJECT DESIGNER’s Proposal, which shall be of no force and effect.
11 INSURANCE
11.1 PROJECT DESIGNER, at its expense, shall maintain in effect at all times during the performance of work under this Contract not less than the following coverage and limits of insurance, which shall be maintained with insurers listed “A” or better in the Best’s Insurance Guide and authorized to do business in the State of California. Proof of Insurance, as identified in Section 11.8, must be reviewed, and accepted by the City Attorney.
11.1.1 Workers’ Compensation and Employer’s Liability
Workers’ Compensation -- coverage as required by the State of California Employer’s Liability -- $1,000,000.00 each accident $1,000,000.00 policy limit bodily injury
$1,000,000.00 each employee bodily injury by disease
11.1.2 Professional Liability (Errors & Omissions) Insurance* $5,000,000 limit on a per occurrence basis
11.1.3 Commercial General Liability
$2,000,000.00 limit on per occurrence basis
7-16Concord - Document ID: generated after first signature $4,000,000.00 general aggregate limit
11.1.4 Commercial Automobile Liability
$2,000,000.00 combined single limit including owned, non-owned and hired automobile coverage
11.2 All of PROJECT DESIGNER’s policies shall contain an endorsement providing that written notice shall be given to CITY at least thirty (30) calendar days prior to termination, cancellation or reduction of coverage in the policy.
11.3 Policies providing for bodily injury and property damage coverage shall contain the following:
A. An endorsement extending coverage to the City as an additional insured, in the same manner as the named insured, as respects liability arising out of the performance of any work under the Contract. Such insurance shall be primary insurance, as respects the interest of the City, and any other insurance maintained by the City shall be considered excess coverage and not contributing insurance with the insurance required hereunder. The Certificate and endorsements shall state that: “The City of Palmdale, City of Palmdale in its capacity as the Successor Agency to the CRA, Palmdale Civic Authority, Housing Authority, Industrial Development Authority, Airport Authority, their officers, agents, employees and volunteers are named as additional insured”.
B. “Severability of Interest” clause.
11.4 Promptly on execution of this Contract, and prior to commencement of any work, PROJECT DESIGNER shall deliver to CITY certificates of insurance and endorsements to all required policies demonstrating that PROJECT DESIGNER has the required coverage and showing the required named insureds. Within five (5) days of written request from CITY, PROJECT DESIGNER shall deliver to CITY full and complete copies of all insurance policies required by this Contract.
11.5 The requirements as to the types and limits of insurance to be maintained by PROJECT DESIGNER are not intended to and shall not in any manner limit or qualify PROJECT DESIGNER’s liabilities and obligations under this Contract.
11.6 Any policy or policies of insurance that PROJECT DESIGNER elects to carry as insurance against loss or damage to its equipment and tools or other personal property used in the performance of this Contract shall include a provision waiving the insurer’s right of subrogation against CITY.
11.7 All insurance coverages must be maintained throughout the duration of this Contract.
11.8 Acceptable Proof of Insurance:
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11.8.1 ACORD Certificate of Insurance listing all coverages, limits, deductibles and insureds; and endorsements for all applicable coverages if agent has authority to issue it; Additional insured Form CG20101185 or CG20100707 and CG20370704 or equivalent must be provided for general liability coverage. Additional insured form CA0001 must be provided for automobile liability coverage.
11.8.2 Agents must confirm that policy endorsements have been ordered from the respective insurance companies. Upon issuance, policy endorsements listing all insurers must be submitted to the City Attorney.
11.8.3 *When professional (E&O) liability coverage is provided on a “claims made basis”, PROJECT DESIGNER will continue to renew the insurance for a period of five (5) years after this Agreement expires or is terminated. Such insurance will have the same coverage and limits as the policy that was in effect during the term of this Agreement, and will cover PROJECT DESIGNER, or its officers, employees, or agents during the time this Agreement was in effect.
11.9 Notwithstanding any other provision of this Contract, CITY may immediately terminate this Contract if, at any time PROJECT DESIGNER fails to maintain the required insurance for any period of time or fails to comply with any of the insurance requirements listed above.
11.10 PROJECT DESIGNER shall require any and all subcontractor's working on its behalf to provide insurance coverages and limits that are based on the scope of work and nature of risk being performed by the subcontractor. Any and all subcontractors working on behalf of PROJECT DESIGNER shall be subject to all other insurance requirements that are stated herein.
Any deviation in this requirement will be PROJECT DESIGNER's sole risk. PROJECT DESIGNER's insurance requirements in Section 11 will not be impacted and/or limited by such deviation.
12 TERMINATION WITHOUT CAUSE
City reserves the right to terminate this Contract or any part thereof for its sole convenience with fifteen (15) days written notice. In the event of such termination, PROJECT DESIGNER shall immediately stop all work hereunder, and shall immediately cause any of its suppliers and sub-consultants to cease such work.
PROJECT DESIGNER shall also surrender to CITY all finished or unfinished documents or programs and other materials, which shall be City’s property. As compensation in full for services performed to the date of such termination, the PROJECT DESIGNER shall receive an amount equal to the value of the work completed as of the termination date in accordance with the fee schedule or as negotiated between the parties. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Contract. 13 TERMINATION FOR CAUSE
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13.1 If the City determines that the PROJECT DESIGNER has failed to supply an adequate working force, or to provide services of proper quality, or has failed in any other respect to satisfactorily perform the services specified in this Contract, the City shall give written notice to the PROJECT DESIGNER specifying all defaults to be remedied within thirty (30) days. Such notice shall set forth the basis for the City’s dissatisfaction and suggest corrective measures. If, after thirty days, the PROJECT DESIGNER has failed to implement the corrective measures, the City may elect to terminate this Contract, in whole or in part.
13.2 In the event the City terminates this Contract in whole or in part as provided herein above, the City may procure, upon such terms and in such manner, as it may deem appropriate, services similar to those terminated.
13.3 If this Contract is terminated as provided above, the City may require the PROJECT DESIGNER to provide all finished or unfinished documents, data, studies, software, drawings, maps, photographs, reports, etc., prepared by the PROJECT DESIGNER. Upon such termination, the PROJECT DESIGNER shall be paid an amount equal to the value of the services provided and work performed as of the date of termination. Such payment by the City may take into consideration the costs associated with hiring another PROJECT DESIGNER to complete the services. In the event no new PROJECT DESIGNER is employed, the PROJECT DESIGNER shall be paid an amount equal to the value of the work performed. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents when such are delivered to CITY, and to authorized reimbursement expenses.
The above is in addition to any other remedies available by law or equity to the City.
13.4 If, after notice of termination of the Contract under the provisions of this Section 13, it is determined, for any reason, that the PROJECT DESIGNER was not in default, or that the default was excusable, then the rights and obligations of the parties shall be the same as if the notice of termination had been issued pursuant to Section 12.
14 DISPUTE RESOLUTION
All claims, disputes, and other matters in question between CITY and PROJECT DESIGNER arising out of, or relating to this Contract, or the breach thereof shall, to the extent reasonably feasible, be resolved through good faith negotiations between the parties.
15 OWNERSHIP OF DOCUMENTS
All documents, including, but not limited to, tracings, drawings, plans, specifications, original mylars, estimates, field notes, investigations, design analysis and studies which are prepared in the performance of this Contract are to be, and remain the 10-16Concord - Document ID: generated after first signature property of, CITY. PROJECT DESIGNER shall furnish CITY, upon its request, originals or reproducible or electronic copies of technical specifications and of all other documents listed above. PROJECT DESIGNER shall endorse, by his professional seal, all plans and data furnished by him. 16 RE-USE OF DOCUMENTS
The parties agree the documents, drawings, specifications, and designs, although the property of CITY, are prepared for a specific project and are not intended nor represented by PROJECT DESIGNER to be suitable for re-use for any other project.
Any reuse without written verification or adaptation by PROJECT DESIGNER for the specific purpose intended will be at CITY’s sole risk and without liability or legal exposure to PROJECT DESIGNER.
17 SUBCONTRACTING, DELEGATION AND ASSIGNMENT
17.1 PROJECT DESIGNER shall not delegate, subcontract or assign its duties or rights hereunder, either in whole or in part, without the prior written consent of CITY; provided, however, that claims for money due or to become due to PROJECT DESIGNER from CITY under this Contract may be assigned to a bank, trust company or other financial institution without such approval. Any proposed delegation, assignment or subcontract shall provide a description of the services covered, identification of the proposed assignee, delegee or subcontractor, and an explanation of why and how the same was selected, including the degree of competition involved.
Any proposed agreement with an assignee, delegee or subcontractor shall include the following:
A. The amount involved, together with PROJECT DESIGNER’s analysis of such cost or price; and
B. A provision requiring that any subsequent modification or amendment shall be subject to the prior written consent of CITY.
C. The requirement to hire only those persons authorized by federal law to work in the United States.
17.2 Any assignment, delegation or subcontract shall be made in the name of PROJECT DESIGNER and shall not bind or purport to bind CITY and shall not release PROJECT DESIGNER from any obligations under this Contract including, but not limited to, the duty to properly supervise and coordinate the work of employees, assignees, delegees and subcontractors. No such assignment, delegation or subcontract shall result in any increase in the amount of total compensation payable to PROJECT DESIGNER under this Contract.
18 NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY
18.1 In performance of this Contract, PROJECT DESIGNER shall not discriminate against any employee, subcontractor, or applicant for employment because of sex, 11-16Concord - Document ID: generated after first signature color, race, religion, ancestry, national origin, disability, medical condition, marital status, sexual orientation, or age. PROJECT DESIGNER will take affirmative action to ensure that applicants are employed, and that employees are treated during employment, without regard to their race, color, religion, ancestry, sex, national origin, handicap, or age. Affirmative action relating to employment shall include, but not be limited to the following: employment, upgrading, demotion or transfer; recruitment; layoff or termination; rates of pay or other forms of compensation; and selection for training, including apprenticeship.
18.2 The provisions of subsection 18.1 above shall be included in all solicitations or advertisements placed by or on behalf of PROJECT DESIGNER for personnel to perform any services under this Contract. CITY shall have access to all documents, data and records of PROJECT DESIGNER and its subcontractors for purposes of determining compliance with the equal employment opportunity and non- discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 which is incorporated herein by this reference. A copy of Executive Order No. 11246 is available for inspection at, and on file with, the Palmdale City Clerk’s Office.
19 FINANCIAL INTEREST CERTIFICATION
19.1 PROJECT DESIGNER warrants that no person has been employed or retained to solicit or secure this Contract upon an agreement or understanding for a commission, percentage, brokerage or contingent fee; and that no officer or employee of the CITY has any interest, financially or otherwise, in PROJECT DESIGNER’s firm.
19.2 For breach or violation of this warranty, CITY shall have the right to annul this Contract without liability, or at its discretion to deduct from the Contract Price or consideration, the full amount of such commission, percentage, brokerage or contingent fee.
20 CONFLICT OF INTEREST
20.1 PROJECT DESIGNER stipulates that its officers and employees do not now have a conflict of interest and it further agrees for itself, its officers and its employees that it will not contract for or accept employment for the performance of any work or services with any individual business, corporation or government unit that would create a conflict of interest in the performance of its obligations pursuant to this Contract or which would cause PROJECT DESIGNER to be “financial interested” (as provided in California Government Code Section 1090 et seq. or 87100 et seq.) in any contract or decision made by CITY on any matter.
20.2 PROJECT DESIGNER shall not employ any City official or employee to perform any work required pursuant to this Contract.
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20.3 If PROJECT DESIGNER is a registered professional engineer or licensed land surveyor and the scope of work requires PROJECT DESIGNER’s recommendation of the actual formula to spread the costs of an assessment district’s improvements, then PROJECT DESIGNER shall not participate in making that recommendation if the additional elements set forth in Government Code section 87100.1(c) apply. Those additional elements are: (1) PROJECT DESIGNER has received income of $250 or more for professional services in connection with any parcel included in the benefit assessment district within 12 months prior to the creation of the district; and (2) the district includes other parcels in addition to those parcels for which PROJECT DESIGNER received the income. In the event a conflict of interest does arise in that context, City shall select a different PROJECT DESIGNER to recommend the actual formula to spread the costs of the assessment district’s improvements and the costs of such services shall be deducted from the compensation to be paid to PROJECT DESIGNER.
20.4 To the extent required by the City Manager/designee, PROJECT DESIGNER shall complete and file with the City Clerk a Form 700 Statement of Economic Interests disclosing any reportable property interests, income, gifts, investments, or business positions.
21 COMPLIANCE WITH LAW
21.1 PROJECT DESIGNER shall comply with all state and federal laws, including but not limited to, the requirement to hire only those persons authorized by federal law to work in the United States. If PROJECT DESIGNER uses any subcontractors to complete this Contract, this same requirement shall be included in all subcontracts and strictly enforced by PROJECT DESIGNER.
21.2 The law of the state of California shall govern this Contract. The venue of any legal action, either formal or informal, shall be the County of Los Angeles. 22 NOTICES
Any notice required under this Contract shall be in writing, addressed to the appropriate party at its address on the signature page and given personally or by registered or certified mail postage prepaid, or by a commercial courier service. All notices shall be effective upon the date of receipt.
23 ENTIRE CONTRACT AND AMENDMENTS
23.1 This Contract is the complete agreement between the parties and supersedes all prior proposals, agreements, and understandings between the parties and may not be modified or terminated orally.
23.2 No attempted waiver of any of the provisions hereof, nor any modification in the nature, extent or duration of the work to be performed by PROJECT DESIGNER 13-16Concord - Document ID: generated after first signature hereunder, shall be binding unless in writing and signed by the party against whom the same is sought to be enforced.
23.3 The failure of any party to enforce against another party any provision of this Contract shall not constitute a waiver of that party’s right to enforce such a provision at a later time, and shall not serve to vary the terms of this Contract. 14-16Concord - Document ID: generated after first signature 24 ATTORNEY’S FEES
If any action at law or in equity is brought to enforce or interpret any provisions of this Contract, the prevailing party in such action shall be entitled to reasonable attorney’s fees, costs and necessary disbursements, in addition to such other relief as may be sought and awarded.
In Witness Whereof, the parties hereto have caused this Contract to be executed and attested by their respective officers thereunto duly authorized.
CITY OF PALMDALE: PARSONS TRANSPORTATION GROUP:
Ronda Perez
City Manager
Chris A. Johnson, PE
Vice President
ADDRESS FOR NOTICE:
CITY OF PALMDALE
38250 Sierra Highway
Palmdale, CA 93550
ADDRESS FOR NOTICE:
PARSONS TRANSPORTATION GROUP
525 B Street, Suite 1600 San
Diego, CA 92101
APPROVE AS TO FORM:
William P. Curley, III
Interim City Attorney
ATTEST:
Roxanne Faber
Acting City Clerk
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□Certificate(s) and Endorsement(s) attached
□Confirmed business name on contract with certificate(s) □Attached Agreement Checklist and met all requirements
16-16Concord - Document ID: generated after first signature City Council Staff Report
DATE: OCTOBER 4, 2023
TO: HONORABLE MAYOR AND CITY COUNCIL
FROM: PUBLIC WORKS DEPARTMENT
CAPITAL IMPROVEMENT PROGRAM DIVISION
DISTRICT: 1
SUBJECT: ADOPT RESOLUTION NO. CC 2023-054, A RESOLUTION OF THE
CITY COUNCIL OF THE CITY OF PALMDALE AUTHORIZING THE
APPLICATION FOR GRANT FUNDS FROM THE RECREATIONAL
TRAILS PROGRAM FOR THE BARREL SPRINGS TRAIL
IMPROVEMENT PROJECT
ISSUE
Adopt Resolution No. C C 2023-054, a Resolution of the City Council of the City of Palmdale authorizing the application for grant funds from the Recreational Trails Program for the Barrel Springs Trail Improvement Project.
RECOMMENDATION
Staff recommends that the City Council:
1. Adopt Resolution No. CC 2023-054 authorizing the application for grant funds from the Recreational Trails Program (RTP) for the Barrel Springs Trail Improvement Project.
2. Authorize the City Manager or their designee to negotiate and finalize the Agreement for grant funds, if awarded, including non-substantive changes.
BACKGROUND
The Recreational Trails Programs (RTP) is a state-administered local assistance program of the U.S. Department of Transportation’s Federal Highway Administration (FHWA) that provides annual funds to develop and maintain recreational trails and trail-related facilities for both non -motorized and motorized uses. The State Department of Parks and Recreation is authorized to administer the program. Available funds for the 202 3 Grant Cycle is approximately $5.7 million and will be divided between the motorized and non - motorized programs , with approximately $1.7 million allocated to the non -motorized component.
Report to Mayor and City Council
Re: Adoption of Resolution No. CC 2023-054
October 4, 2023