Pico Rivera City Council
June 11, 2024

termite damage was discovered on the wood studs and plywood throughout the entire north wall of the Project. Contract Change Order No. 6 covers the removal and replacement of the entire north wall wood studs, plywood, and drywall, with a not-toexceed amount of $190,945. The renovation of the Youth Center required additional design support to re-design the north wall. As a result, Amendment No. 2 with Dahlin Group, Inc. was necessary, amounting to $6,000.

Contract Change Order No. 7 consists of the procurement and installation of a new exterior door and frame that was rusted and needs replacement in the kitchen. In addition, the existing northerly ingress/egress door requires the installation of panic push bars to comply with code and installation of a mesh screen on the door would assist in the deterrence of vandalism to the building. These repairs were unexpected circumstances that were discovered during the construction phase. The total amount for Contract Change Order No. 7 is for an amount not-to-exceed $8,317.

Conclusion:

Staff recommends that the City Council approve Amendment No. 2 to Professional Services Agreement No. 23-2155 with Dahlin Group, Inc. and approve Contract Change Order No. 6 and Contract Change Order No. 7 with MBC Enterprises for an additional amount not-to-exceed $199,262 and authorize the City Manager or designee to execute Amendment No. 2 and Contract Change Orders Nos. 6 and 7.

Steve Carmona
SC:PY:NN:kk:nc
Enclosures: 1) Amendment No. 2
2) Contract Change Order No. 6
3) Contract Change Order No. 7
AMENDMENT NO. 2
TO AGREEMENT NO. 23-2155

PROFESSIONAL SERVICES AGREEMENT
BETWEEN THE CITY OF PICO RIVERA AND DAHLIN GROUP, INC.

THIS AMENDMENT NO. 2 TO AGREEMENT NO. 23-2155 PROFESSIONAL

SERVICES AGREEMENT BETWEEN THE CITY OF PICO RIVERA AND DAHLIN GROUP, INC. (“Amendment No. 2"), effective as of the date specified in paragraph 3 hereof, is made and entered into by and between the CITY OF PICO RIVERA (“City”), and Dahlin Group, Inc., (“Consultant”).

RECITALS
A. City and Consultant (collectively referred to as the “Parties”) have previously executed that certain Agreement No. 23-2155, Professional Services Agreement Between the City of Pico Rivera and Dahlin Group, Inc., dated January 25, 2023 (“Agreement”) and that certain Amendment No. 1 dated May 9, 2023, to the Agreement, relating to Architectural/Engineering design and construction support services for the Youth Center Renovation Project, CIP 50100 in the City of Pico Rivera.

B. The Parties desire to further amend said Agreement to add additional Compensation for new services, namely: construction administration of the ADA restroom improvements standards; design services to develop and present several color and material options for various floors, interior and exterior walls, and ceilings; acoustic attenuation design in the main room; and testing for asbestos materials in the existing floor coverings, pursuant to Sections 5.1 of the Agreement.

The additional services are set forth in Exhibit “A” to this Amendment No. 2.

NOW, THEREFORE, THE PARTIES AGREE THAT THE AGREEMENT SHALL BE AMENDED AS FOLLOWS:

1. COMPENSATION
As consideration for the performance of the additional services set forth in Exhibit “A” of this Amendment No. 2, the compensation of the Agreement shall hereby be increased by an amount not-to-exceed Six Thousand Dollars ($6,000) in accordance with the Approved Fee Schedule of Exhibit “A.”

2. EFFECT OF AMENDMENTS.

Except as modified herein, either expressly or by necessary implication, theterms and provisions of the Agreement (and Amendment No. 1) between the City and Consultant shall remain in full force and effect.

3. EFFECTIVE DATE.

Unless otherwise specified herein, this Amendment No. 2 shall become effective as of the date set forth below on which the last of the Parties, whether City or Consultant, executes this Amendment No. 2.

Enclosure 1
12a
Amendment No. 2 to Agreement 22-2156
DAHLIN GROUP, INC.

IN WITNESS WHEREOF, the Parties hereto have caused this Amendment No. 2 to be executed and attested by their respective officers hereunto duly authorized. “City” “Consultant”
CITY OF PICO RIVERA Dahlin Group, Inc.

Steve Carmona, City Manager Stephanie Fujimura, Principal-In-Charge Dated: Dated:

ATTEST: APPROVED AS TO FORM:

Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney

Enclosure 2
12b

Enclosure 3
12c

To: Mayor and City Council
From: City Manager
Meeting Date: June 11, 2024
Subject: AGREEMENT WITH WILLDAN ENGINEERING FOR

MINOR HOME REPAIR GRANT AND PROGRAM MANUAL
Recommendation:

1. Approve a Professional Services Agreement with Willdan Engineering for administration services related to the City of Pico Rivera’s Minor Home Repair Grant Program;

2. Authorize the City Manager to execute the agreement in a form approved by the City Attorney, for a not-to-exceed amount of $24,000 for one year; and

3. Approve the Community Development Block Grant Minor Home Repair Program Manual.

Fiscal Impact:

There is no fiscal impact to the General Fund from this action. The City Council approved the fiscal year (FY) 2024-25 CDBG budget as part of the Annual Action Plan on April 23, 2024, which includes allocating $120,000 in Community Development Block Grant (CDBG) funds to the City’s Minor Home Repair Grant Program.

Background:

On April 23, 2024, the City Council approved the FY 2024-25 CDBG Annual Action Plan. The Annual Action Plan allocated $120,000 in CDBG funds to the City's Minor Home Repair Grant Program, also known as the Handyworker Grant Program. This program helps homeowners with minor repairs like exterior painting, roof and window replacements, plumbing and electrical upgrades, wheelchair ramps, and other accessibility improvements. Eligible households can receive up to $30,000 each in home repair assistance. To qualify, applicants must provide proof of low to moderate income per household.

Previously, Habitat for Humanity of Greater Los Angeles managed this program.

However, since it had been over five (5) years since the last competitive bid process, 13 CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 11, 2024

AGREEMENT WITH WILLDAN ENGINEERING FOR MINOR HOME REPAIR GRANT

AND PROGRAM MANUAL

the City of Pico Rivera (City) launched a formal request for proposals (RFP) to find a new program administrator. The RFP was posted on the City's online procurement platform, PlanetBids, and proposals were received from both Habitat for Humanity of Greater Los Angeles and Willdan Engineering.

At the same time, City staff reviewed the existing Minor Home Repair Program Manual to streamline administrative processes and incorporate updates based on local, state, and federal regulations. The Program Manual now includes updated requirements for lead and asbestos testing and abatement, as well as updates related to the federal Build America, Buy America Act.

Discussion:

After reviewing the qualifications of both proposers, City staff recommends entering a professional services agreement with Willdan Engineering for the following reasons:

1. They have adequate staff, including experienced housing rehabilitation program administrators, to manage the program.

2. They have successfully implemented similar programs in the cities of La Verne, La Cañada Flintridge, and Santa Fe Springs.

3. Their headquarters in the City of Industry will facilitate efficient coordination with City departments.

Willdan Engineering has extensive training and experience in delivering a range of community development services to government agencies throughout California.

Willdan manages all facets of CDBG programs for municipalities including CDBGfunded residential rehabilitation initiatives in multiple cities as noted above. Willdan will handle the Minor Home Repair Program's administration, coordination, and contracting services. They are required to comply with all U.S. Department of Housing and Urban Development (HUD) regulations. Should the agreement and updated Program Manual be approved, City staff will collaborate with Willdan to accept applications from Pico Rivera residents and allocate funds for repairs.

Conclusion:

Staff recommends that the City Council approve a professional services agreement with Willdan Engineering for administration services related to the City of Pico Rivera’s Minor Home Repair Grant Program, authorize the City Manager to execute the agreement in a not-to-exceed amount of $24,000 for one year, and approve the CDBG Minor Home Repair Grant Program Manual.

Steve Carmona
CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 11, 2024

AGREEMENT WITH WILLDAN ENGINEERING FOR MINOR HOME REPAIR GRANT

AND PROGRAM MANUAL

SC:AB:JG:EL:jj
Enclosures: 1) Professional Services Agreement
2) Draft Minor Home Repair Program Manual
AGREEMENT NO. _______

PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF PICO RIVERA AND

WILLDAN ENGINEERING

1. IDENTIFICATION
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into by and between the City of Pico Rivera, a California municipal corporation (“City”) and Willdan Engineering (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as a “Party” and collectively referred to as “Parties.”

2. RECITALS

2.1 City has determined that it requires professional services from a consultant to provide general administration of the Community Development Block Grant (CDBG) Minor Home Repair Grant Program as required by the CDBG grant and the program guidelines attached as Exhibit C.

2.2 Consultant represents that it is fully qualified to perform such professional services by virtue of its experience and the training, education and expertise of its principals and employees. Consultant further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions set forth in this Agreement.

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

3. DEFINITIONS

3.1 “Scope of Services”: Such professional services as are set forth in the Consultant’s April 4, 2024, proposal to City attached hereto as Exhibit “A” and incorporated herein by this reference.

3.2 “Approved Fee Schedule”: Such compensation rates as are set forth in the Consultant’s April 4, 2024, proposal to City attached hereto as Exhibit “A.”

3.3 “Commencement Date”: July 1, 2024

3.4 “Expiration Date”: June 30, 2025

4. TERM
The term of this Agreement shall commence at 12:00 a.m. on the Commencement Date and shall expire at 11:59 p.m. on the Expiration Date unless extended by written agreement of the Parties or terminated in accordance with Section 22 below.

Enclosure 1
13a
Professional Services Agreement

WILLDAN ENGINEERING

5. CONSULTANT’S SERVICES

5.1 Consultant shall perform the services identified in the Scope of Services. City shall have the right to request, in writing, changes in the Scope of Services. Any such changes mutually agreed upon by the Parties, and any corresponding increase or decrease in compensation, shall be incorporated by written amendment to this Agreement. In no event shall the total compensation and costs payable to Consultant under this Agreement exceed the sum of Twenty-Four Thousand Dollars ($24,000) unless specifically approved in advance, in writing, by City.

5.2 Consultant shall perform all work to the highest professional standards of Consultant’s profession and in a manner reasonably satisfactory to City.

6. COMPENSATION

6.1 City agrees to compensate Consultant for the services provided under this Agreement, and Consultant agrees to accept in full satisfaction for such services, payment in accordance with the Approved Fee Schedule. Reimbursement will be based on completion of projects only. Progress payments for individual projects shall not be disbursed by the City.

6.2 Consultant shall submit to City an invoice, on a monthly basis or less frequently, for the services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period and the amount due. Within ten (10) business days of receipt of each invoice, City shall notify Consultant in writing of any disputed amounts included on the invoice. Within thirty (30) calendar days of receipt of each invoice, City shall pay all undisputed amounts included on the invoice. City shall not withhold applicable taxes or other authorized deductions from payments made to Consultant.

6.3 Payments for any services requested in writing by City and not included in the Scope of Services shall be made to Consultant by City on a time-and-materials basis using Consultant’s standard fee schedule. Fees for such additional services shall be paid within sixty (60) days of the date Consultant issues an invoice to City for such services.

7. BUSINESS LICENSE
Consultant shall obtain a City business license prior to commencing performance under this Agreement.

8. COMPLIANCE WITH LAWS
Consultant shall keep informed of State, Federal and Local laws, ordinances, codes and regulations that in any manner affect those employed by it or in any way affect Professional Services Agreement

WILLDAN ENGINEERING

the performance of its services pursuant to this Agreement. The Consultant shall at all times comply with such laws, ordinances, codes and regulations. Without limiting the generality of the foregoing, if Consultant is an out-of-state corporation or LLC, it must be qualified and registered to do business in the State of California pursuant to sections 2105 and 17708.02 of the California Corporations Code. The City, its officers and employees shall not be liable at law or in equity occasioned by failure of Consultant to comply with this Section.

Consultant must comply with the requirements of the Build America, Buy America (BABA) Act, 41 U.S.C. 8301 note, and all applicable rules and notices, as may be amended, if applicable to the City's infrastructure project. Pursuant to the U.S.

Department of Housing and Urban Development’s (HUD) Notice, “Public Interest Phased Implementation Waiver for Fiscal Year (FY) 2022 and 2023 of Build America, Buy America Provisions as Applied to Recipients of HUD Federal Financial Assistance” (88 F.R. 17001), any funds obligated by HUD on or after the applicable listed effective dates, are subject to BABA requirements, unless excepted by a waiver.

9. CONFLICT OF INTEREST
Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. During the term of this Agreement, Consultant shall not perform any work for another person or entity for whom Consultant was not working at the Commencement Date if both: (i) such work would require Consultant to abstain from a decision under this Agreement pursuant to a conflict of interest statute; and (ii) City has not consented in writing prior to Consultant’s performance of such work.

10. PERSONNEL
Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services identified in the Scope of Services. All such services shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant’s services under this Agreement, but City reserves the right, for good cause, to require Consultant to exclude any employee from performing services on City’s premises.

Salvador Lopez Jr., Director of Planning, shall be Consultant’s project administrator and shall have direct responsibility for management of Consultant’s performance under this Agreement. No change shall be made in Consultant’s project administrator without City’s prior written consent.

11. OWNERSHIP OF WRITTEN PRODUCTS
Professional Services Agreement

WILLDAN ENGINEERING

All reports, documents or other written material (“written products”) developed by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Consultant may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by Consultant. If any state, federal, or local law requires mandatory copyright protection for Consultant’s work product, City shall comply with such laws to the extent feasible.

12. INDEPENDENT CONSULTANT

12.1 Consultant is, and shall at all times remain as to City, a wholly independent consultant. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise to act on behalf of City as an agent. Neither City nor any of its officers, employees or agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not at any time represent that it is, or that any of its agents or employees are, in any manner employees of City.

12.2 The Parties further acknowledge and agree that nothing in this Agreement shall create or be construed to create a partnership, joint venture, employment relationship, joint-employer relationship, or any other relationship between Consultant or Consultant’s employees except as set forth in this Agreement.

12.3 City shall have no direct or indirect control over Consultant’s employees or sub-consultants with respect to wages, hours, and working conditions. In addition, City shall not deduct from the Compensation paid to Consultant any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to Consultant, Consultant’s employees or subconsultants. City shall have no responsibility to provide Consultant, its employees or subconsultants with workers’ compensation insurance or any other insurance.

12.4 The Parties further acknowledges the following: (i) that Consultant shall provide the services outlined in the Scope of Services directly to City; (ii) Consultant maintains a business location at the address listed under Section 20 that is separate and distinct from the City; (iii) Consultant contracts with other businesses to provide the same or similar services and maintains a clientele without restriction from the City; (iv) Consultant advertises and holds itself out to the public as available to provide the same or similar services; (v) unless otherwise specified in this Agreement, Consultant provides its own tools, vehicles, and equipment necessary for performing the Scope of Services; (vi) Consultant has proposed and negotiated its own rates; and (vii) consistent with the nature and demands of the project and the City’s business hours, Consultant may set its own hours and location of work.

13. CONFIDENTIALITY
Professional Services Agreement

WILLDAN ENGINEERING

All data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written consent by City. City shall grant such consent if disclosure is legally required. Upon request, all City data and any copies thereof shall be returned to City upon the termination or expiration of this Agreement.

14. NON-LIABILITY OF CITY OFFICIALS AND EMPLOYEES
No official or employee of the City shall be personally liable to Consultant in the event of any default or breach by City, or for any amount which may become due to Consultant.

15. INDEMNIFICATION

15.1 The Parties agree that City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to City. Consultant acknowledges that City would not enter into this Agreement in the absence of Consultant’s commitment to indemnify and protect City as set forth herein. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.

15.2 To the full extent permitted by law, Consultant shall indemnify, hold harmless and defend City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers from and against any and all claims, demands, lawsuits, causes of action, losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from or arising out of any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant or any of its officers, employees, servants, agents, or subconsultants in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of City’s choice and expert witness fees and consultant fees. Notwithstanding the foregoing, to the extent Consultant's Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.

Professional Services Agreement

WILLDAN ENGINEERING

15.3 City shall have the right to offset against the amount of any compensation due Consultant under this Agreement any amount due City from Consultant as a result of Consultant’s failure to pay City promptly any indemnification arising under this Section 15 or related to Consultant’s failure to either: (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws.

15.4 The obligations of Consultant under this Section 15 will not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.

15.5 Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this Section 15 from each and every subconsultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity obligations from others as required herein, Consultant agrees to be fully responsible and indemnify, hold harmless and defend City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers from and against any and all claims, demands, lawsuits, causes of action, losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from or arising out of any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant’s subconsultants or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of City’s choice and expert witness fees and consultant fees.

15.6 City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.

15.7 PERS ELIGIBILITY INDEMNITY. In the event that Consultant or any employee, agent, or subconsultant of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subconsultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Professional Services Agreement

WILLDAN ENGINEERING

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subconsultants providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

16. INSURANCE

16.1 During the term of this Agreement, Consultant shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with Consultant’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:

16.1.1 Comprehensive general liability, and Umbrella or Excess Liability Insurance covering all operations by or on behalf of Consultant providing insurance for bodily injury liability and property damage liability for the following and including coverage for:

16.1.1.1 Premises, operations, and mobile equipment

16.1.1.2 Products and completed operations

16.1.1.3 Broad form property damage (including completed operations)

16.1.1.4 Explosion, collapse, and underground hazards

16.1.1.5 Personal Injury

16.1.1.6 Contractual liability
in the amount of One Million Dollars ($1,000,000) per occurrence combined single limit; Two Million Dollars ($2,000,000) aggregate for products/completed operation; Two Million Dollars ($2,000,000) general aggregate (General aggregate must apply separately to Consultant’s work under this Agreement.); and Five Million Dollars ($5,000,000) umbrella or excess liability.

16.1.2 Automobile Liability Insurance for owned, hired and non-owned vehicles utilized by Consultant, its employees or subconsultants, in the amount of One Million Dollars ($1,000,000) per accident for bodily injury and property damage.

Professional Services Agreement

WILLDAN ENGINEERING

16.1.3 Worker’s Compensation Insurance as required by the laws of the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than One Million Dollars ($1,000,000) per accident for bodily injury or disease.

16.1.4 Professional Liability Insurance against errors and omissions in the performance of the work under this Agreement with coverage limits of not less than One Million Dollars ($1,000,000) per occurrence of claim/ Two Million Dollars ($2,000,000) in the aggregate.

16.2 Consultant shall require each of its subconsultants, if any, to maintain insurance coverage that meets all of the requirements of this Agreement.

16.3 The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A:VII in the latest edition of Best’s Insurance Guide.

16.4 Consultant agrees that if it does not keep the aforesaid insurance in full force and effect City may either: (i) immediately terminate this Agreement; or (ii) take out the necessary insurance and pay, at Consultant’s expense, the premium thereon.

16.5 At all times during the term of this Agreement, Consultant shall maintain on file with City’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and, for the general liability and automobile liability policies, naming the City as an additional insured. Consultant shall, prior to commencement of work under this Agreement, file with City’s Risk Manager such certificate(s).

16.6 Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall provide such proof to City at least two weeks prior to the expiration of the coverages.

16.7 The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming City, its officers, employees, agents and volunteers as additional insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to City. Consultant agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.

16.8 The general liability and automobile policies of insurance provided by Consultant shall be primary to any coverage available to City. Any insurance or selfinsurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

Professional Services Agreement

WILLDAN ENGINEERING

16.9 All insurance coverage provided pursuant to this Agreement shall not prohibit Consultant, and Consultant’s employees, agents or subconsultants, from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against the City.

16.10 Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of City, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses.

16.11 Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duties to indemnify, hold harmless and defend under Section 15 of this Agreement.

16.12 If Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage and/or the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

17. MUTUAL COOPERATION

17.1 City shall provide Consultant with all pertinent data, documents and other requested information as is reasonably available to City for the proper performance of Consultant’s services under this Agreement.

17.2 In the event any claim or action is brought against City relating to Consultant’s performance in connection with this Agreement, Consultant shall render any reasonable assistance that City may require.

18. RECORDS AND INSPECTIONS
Consultant shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three years after the expiration or termination of this Agreement. City shall have the right to access and examine such records, without charge, during normal business hours. City shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

19. PERMITS AND APPROVALS
Consultant shall obtain, at its sole cost and expense, all permits and regulatory approvals necessary in the performance of this Agreement. This includes, but shall not be limited to, encroachment permits and building and safety permits and inspections.

Professional Services Agreement

WILLDAN ENGINEERING

20. NOTICES
Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (i) the day of delivery if delivered by hand, facsimile, email, or overnight courier service during Consultant’s and City’s regular business hours; or (ii) on the third business day following deposit in the United States mail if delivered by mail, postage prepaid, to the addresses listed below (or to such other addresses as the Parties may, from time to time, designate in writing).

If to City: If to Consultant:

Julia Gonzalez, Deputy Director
City of Pico Rivera
6615 Passons Blvd
Pico Rivera, California 90660-1016
(562) 801-4447
[email protected]
Salvador Lopez Jr., Director of
Planning
Willdan Engineering
13191 Crossroads Parkway North,
Suite 405
Industry, CA 91746-3443
(562) 364-7600
[email protected]

21. SURVIVING COVENANTS
The Parties agree that the covenants contained in Sections 13, 15 and Paragraph

17.2 of Section 17, of this Agreement shall survive the expiration or termination of this Agreement.

22. TERMINATION

22.1. City shall have the right to terminate this Agreement for any reason on five (5) calendar days’ written notice to Consultant. Consultant shall have the right to terminate this Agreement for any reason on sixty (60) calendar days’ written notice to City. The effective date of termination shall be upon the date specified in the notice of termination. Consultant agrees that in the event of such termination, City’s obligation to pay Consultant shall be limited to payment only for those services satisfactorily rendered, as solely determined by the City, prior to the effective date of termination. Consultant agrees to cease all work under this Agreement on or before the effective date of any notice of termination. All City data, documents, objects, materials or other tangible things shall be returned to City upon the termination or expiration of this Agreement.

22.2 If City terminates this Agreement due to no fault or failure of performance by Consultant, then Consultant shall be paid based on the work satisfactorily performed, as solely determined by the City, at the time of termination. In no event shall Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the services required by this Agreement.

Professional Services Agreement

WILLDAN ENGINEERING

23. ASSIGNMENT
Consultant shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without City’s prior written consent, and any attempt to do so shall be void and of no effect. City shall not be obligated or liable under this Agreement to any Party other than Consultant.

24. NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY

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

24.2 Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.

24.3 Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials.

25. WARRANTIES

25.1 Each Party has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement, or been provided with an opportunity to receive independent legal advice and has freely and voluntarily waived and relinquished the right to do so. Each Party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such Party’s failure to perform under this Agreement.

25.2 In executing this Agreement, each Party has carefully read this Agreement, knows the contents thereof, and has relied solely on the statements expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or promise of any other party, or any other person or entity, not expressly set forth herein, nor upon the failure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever.

Professional Services Agreement

WILLDAN ENGINEERING

25.3 It is agreed that each Party has the full right and authority to enter into this Agreement, and that the person executing this Agreement on behalf of either Party has the full right and authority to fully commit and bind such Party to the provisions of this Agreement.

26. CAPTIONS

26.1 The captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are descriptive only and for convenience in reference to this Agreement. Should there be any conflict between such heading, and the section or paragraph thereof at the head of which it appears, the section or paragraph thereof, as the case may be, and not such heading, shall control and govern in the construction of this Agreement.

26.2 Masculine or feminine pronouns shall be substituted for the neuter form and vice versa, and the plural shall be substituted for the singular form and vice versa, in any place or places herein in which the context requires such substitution(s).

27. NON-WAIVER

27.1 The waiver by City or Consultant of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. No term, covenant or condition of this Agreement shall be deemed to have been waived by City or Consultant unless in writing.

27.2 Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance of the exercise by any Party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such Party of any of all of such other rights, powers or remedies.

27.3 Consultant shall not be liable for any failure to perform if Consultant presents acceptable evidence, in City’s sole judgment, that such failure was due to causes beyond the control and without the fault or negligence of Consultant.

28. COURT COSTS AND ATTORNEY FEES
Professional Services Agreement

WILLDAN ENGINEERING

In the event legal action shall be necessary to enforce any term, covenant or condition herein contained, the Party prevailing in such action, whether reduced to judgment or not, shall be entitled to its reasonable court costs, including accountants’ fees and expert witness fees, if any, and attorneys’ fees expended in such action. The venue for any litigation shall be Los Angeles County, California.

29. SEVERABILITY
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to, the extent necessary to cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

30. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the laws of the State of California.

31. COUNTERPARTS
This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile or email transmission, shall for all purposes be treated as if it were delivered containing an original manual signature of the Party whose signature appears in the facsimile or email and shall be binding upon such Party in the same manner as though an originally signed copy had been delivered.

32. ENTIRE AGREEMENT
All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. This instrument contains the entire Agreement between City and Consultant with respect to the transactions contemplated herein. No other prior oral or written agreements are binding upon the Parties.

Amendments hereto or deviations herefrom shall be effective and binding only if made in writing and executed by City and Consultant.

33. FEDERAL GRANT REQUIREMENTS
Professional Services Agreement

WILLDAN ENGINEERING

Consultant acknowledges that the funding associated with the Scope of Services under this Agreement is provided by a federal Community Development Block Grant (“CDBG”). Consultant acknowledges and agrees that it will perform the Scope of Services in compliance with any applicable regulations of the CDBG program, including but not limited to those listed under Exhibit B, which are attached hereto and incorporated here by reference. Should any conflict arise between the requirements of Exhibit B and this Agreement, the provisions of Exhibit B shall control to the minimum extent required to resolve such conflict.
[Signatures on the following page]
Professional Services Agreement

WILLDAN ENGINEERING

TO EFFECTUATE THIS AGREEMENT, the Parties have caused their duly authorized representatives to execute this Agreement on the dates set forth below. “CITY” “CONSULTANT”

CITY OF PICO RIVERA WILLDAN ENGINEERING
______________________________ ___________________________________ Steve Carmona, City Manager Salvador Lopez Jr., Director of Planning Dated: ________________________ Dated: _____________________________ ATTEST: APPROVED AS TO FORM:
___________________________ ___________________________________ Cynthia Ayala, CMC, City Clerk Arnold M. Alvarez-Glasman, City Attorney

EXHIBIT A

SCOPE OF SERVICES
[PROPOSAL COPY TO BE ATTACHED]

EXHIBIT B

FEDERAL GRANT REQUIREMENTS

1. Remedies - In addition to right to terminate or suspend the Agreement contained herein, if Consultant fails to perform any of the obligations under this Agreement, City may, in its sole discretion, require Consultant to cure any deficiencies in its performance by providing notice in compliance with Section 22 of the Agreement, specifying the applicable cure period to perform the requested cure items. If Consultant does not provide such a cure prior to the expiration of the cure period, Consultant shall be liable for the cost and expense incurred by City as a result of such default, including but not limited to the costs and expense associated with obtain a replacement Consultant to complete the Scope of Services. This provision shall not be interpreted to limit any administrative or civil penalties, sanctions, or remedies City may have under the City’s municipal code or under any applicable laws

2. Termination for Cause and for Convenience – see Agreement Section 22. Termination

3. Debarment and Suspension – Consultant shall have an active registration with the System for Award Management (“SAM”) The Consultant’s execution of this Agreement shall constitute a certification under penalty of perjury under the laws of the State of California, that the Consultant or any person associated therewith in the capacity of owner, partner, director, officer or manager:

1. Is not currently under suspension, debarment, voluntary exclusion, or determination of ineligibility by any federal agency;

2. Has not been suspended, debarred, voluntarily excluded, or determined ineligible by any federal agency within the past three (3) years;

3. Does not have a proposed debarment pending; and

4. Has not been indicted, convicted, or had a civil judgment rendered against it by a court of competent jurisdiction in any matter involving fraud or official misconduct within the past three (3) years.

Any exceptions to this certification must be disclosed to City. Exceptions will not necessarily result in denial of recommendation for award, but will be considered in determining responsibility. Disclosures must indicate the party to whom the exceptions apply, the initiating agency, and the dates of agency action.

Exceptions to the Federal Government excluded parties (https://sam.gov/content/home) maintained by the U.S. General Services Administration are to be determined by FHWA.

4. Prohibition on Certain Telecommunications and Video Surveillance Services or Equipment – Consultant shall not use any equipment prohibited by 2 CFR Section 200.216 in the performance of this Agreement and shall comply with all requirements included thereto.

5. Domestic Preferences for Procurements – To the extent practicable, Consultant shall abide by the provision of 2 CFR Section 200.322 that provides a preference for goods, products, or materials produced domestically.

6. Civil Rights Act – Consultant shall not deny benefits or services, or otherwise discriminate on the basis of race, color, national origin (including limited English proficiency), disability, age or sex (including sexual orientation and gender identity) in accordance with the following authorities: Title VI of the Civil Rights Act of 1964 (Title VI) Public Law 88-352, 42 U.S.C. 2000d-1 et seq., and the Department's implementing regulations, 31 CFR part 22; Section 504 of the Rehabilitation Act of 1973 (Section 504), Public Law 93-112, as amended by Public Law 93-516, 29 U.S.C. 794; Title IX of the Education Amendments of 1972 (Title IX), 20 U.S.C. 1681 et seq., and the Department's implementing regulations, 31 CFR part 28; Age Discrimination Act of 1975, Public Law 94-135, 42 U.S.C. 6101 et seq., and the Department implementing regulations at 31 CFR part 23.

EXHIBIT C

CDBG MINOR REPAIR GRANT PROGRAM GUIDELINES
[PROGRAM GUIDELINES TO BE ATTACHED]

EXHIBIT A

CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
1 CITY OF PICO RIVERA

COMMUNITY DEVELOPMENT BLOCK GRANT

MINOR REPAIR GRANT PROGRAM

PROGRAM GUIDELINES
May 2024 – Draft
Enclosure 2
13b
CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
2 TABLE OF CONTENTS
INTRODUCTION................................................................................... 4 A. Purpose of Manual
B. Purpose of Programs
C. Funding Source
D. CDBG Subrecipient
PART I - PROGRAM ADMINISTRATION .................................................. 4 A. Regulations Governing the Program
B. Staff and Authority
C. Consistency with Consolidated Plan
D. Conflict Resolution
E. Files and Record Retention
F. Financial Reporting
G. Funding Availability
H. Conflict of Interest
I. Fair Housing and Equal Opportunity
J. Program Outreach and Marketing
K. Labor Compliance
L. Section 3
M. Amending the Policies and Procedures Manual
N. Exceptions to Program Policies and Procedures
O. Previous Grant Awards
PART II – PROGRAM SUMMARY AND GUIDELINES................................. 9 A. CDBG Rehabilitation Program Description
B. Applicant Eligibility Criteria
C. Eligible Uses of CDBG Grant Funds
D. Ineligible Uses of CDBG Grant Funds
E. Hierarchy of Grant Funds
F. Rehabilitation Standards
G. Property and Occupancy Eligibility Requirements
H. Lead-Based Paint Notification Requirements
PART III – GRANT PROCESSING PROCEDURES................................... 12 A. Preliminary Application Intake
B. Application Interview
C. Application Process
D. Income Documentation
E. Third Party Verifications
F. Income Exclusions
G. Assessing Information and Computing Income
H. Special Circumstances
CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
3 I. Determining Household Size
J. Comparing Household Income to Income Limits
K. Other Eligibility Criteria
L. Grant Processing Timeline
M. Historic Preservation
N. Compliance of Environmentall Requirements
PART IV – PROPERTY INSPECTION & SELECTION .............................. 23 A. Inspection Requests
B. Inspections
C. Property Standards
D. Work Write-up
E. SUBRECIPIENT Contractor Estimate
F. Work Write-up Containing Lead Work
G. Inspection and Write-up Timeline
H. Qualifications
I. SUBRECIPIENT Contractor Documentation
J. Verification of Qualifications
K. Central File
PART V – FINAL EVALUATION AND APPROVAL PROCEDURES............. 28 A. Final Evaluation and Approval
PART VI – FUNDING PROCEDURES .................................................... 28 PART VII – CONSTRUCTION MANAGEMENT PROCEDURES .................. 28 A. Pre-Construction Conference
B. Agreement for Rehabilitation
C. Notice to Proceed
D. Building Permits
E. Payment Schedule
F. Payment Demand/Purchase Orders
G. Change Orders/Purchase Orders
H. Reporting
I. Warranties
J. Termite/Fumigation
K. Change Orders by SUBRECIPIENT
L. Termination of Agreement for Rehabilitation
PART VIII – GRANT CLOSURE PROCEDURES ...................................... 32 A. File Completion and Close-out
LIST OF APPENDIXES........................................................................ 30 CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
4 INTRODUCTION
A. Purpose of Manual
The purpose of this Community Development Block Grant (CDBG) Minor Home Repair Grant Program (“Program”) Operation Procedures Manual (“Manual”) is to provide a basic reference source for the operation of the Program. The Operations Manual contains the basic Program policies, rules, and procedures.

B. Purpose of the Program
The purpose of the Program is to promote the rehabilitation of housing stock in the City of Pico Rivera (“City”). It is designed to assist eligible homeowners for correction of health and safety deficiencies and code violations for low-income property owners within the City. The Program provides this assistance in the form of a grant used to finance the costs of necessary repairs that will provide the homeowner with a healthy, safe, sanitary, and code compliant home.

C. Funding Source
The City has entered into a contractual relationship with the U.S. Department of Housing and Urban Development (HUD) to administer the Program. Community Development Block Grant (CDBG) funds are allocated each fiscal year to fund the program.

D. CDBG Subrecipient
The City has entered into an Agreement with CDBG SUBRECIPIENT (SUBRECIPIENT) to carry out the Minor Home Repair Grant Program. SUBRECIPIENT shall designate a “Program Manager” to carry out the requirements of the Program per the HUD guidelines.

Part I - PROGRAM ADMINISTRATION
A. Regulations Governing the Program
The Program’s policies and procedures conform to federal regulations governing the CDBG Rehabilitation Program.

If the contents of this Manual conflict with any federal regulations, the federal regulations shall prevail. SUBRECIPIENT shall be responsible for keeping up to date with federal requirements.

B. Staff and Authority
The Program is managed by the City’s Community & Economic Development Department. The Community & Economic Development Department (“Director”) is CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
5 responsible for delivering the Program and enforcing these policies and procedures. The Community & Economic Development Director, or the Director’s designee, shall have the authority to make minor amendments to the Program Guidelines at their discretion. Any revisions to the Program Guidelines shall be made in writing and documented and a copy shall be provided to SUBRECIPIENT.

C. Consistency with Consolidated Plan
Program funds must be used in a manner that is consistent with the activities stipulated in the City’s Annual Action Plan, and that are supportive of the goals specified in the Consolidated Plan.

D. Conflict Resolution
Complaints concerning the Program should be made, in writing, to the SUBRECIPIENT Program Manager first. The Pico Rivera Community & Economic Development Director, or the Director’s designee, can serve as arbitrator for unresolved matters. A hearing is to be held within thirty (30) business days from written receipt of complaint. All parties must present their contentions and interpretations by themselves, or through counsel. The Director, or Director’s designee, must make a decision within twenty-one (21) business days from the close of the arbitration and respond in writing within fourteen (14) business days.

If the applicant is not satisfied with the decision from the Director, or the Director’s designee, a written request for an appeal may be filed with the Director. A hearing is to be held within thirty (30) business days from written receipt of complaint. The hearing after an appeal must be conducted by a person other than the one who made or approved the decision under review, or a subordinate of this person. All parties must present their contentions and interpretations by themselves, or through counsel. A decision must be issued within twenty-one (21) business days from the close of the arbitration and a written response within fourteen (14) business days. Written correspondence shall be mailed to:

Minor Home Repair Grant Program, City of Pico Rivera Community and Economic Development Department, 6615 Passons Boulevard, Pico Rivera, CA 90660.

E. Files and Record Retention
The City of Pico Rivera Community and Economic Development Department staff shall maintain a permanent master file with original documents for each CDBG Rehabilitation Program project. Master files for CDBG Rehabilitation Programs are to be kept for five (5) years after grant rehabilitation from the end of the fiscal year if application is denied, withdrawn, or canceled. SUBRECIPIENT Program Manager shall provide a digital copies to the City of Pico Rivera once they have been completed, at the end of the program year.

Master files are to be stored in groups according to their status in the Program: pending, approved, under construction, completed, canceled/withdrawn or paid.

F. Financial Reporting
CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
6 The SUBRECIPIENT Program Manager shall be responsible for maintaining financial records in compliance with federal, state, and City regulations referred to above.

G. Funding Availability and Waiting List
The maximum grant amount available per project is $30,000. In exceptional cases where an emergency condition is confirmed, the Director of Community and Economic Development, or their designee, may authorize an increase in the grant amount, not to exceed $45,000.

Due to limited funds available in this program, a waiting list of persons interested in receiving assistance will be generated on a first-come, first-serve basis for applicants who do not fall under emergency situations. If an applicant on the list does not meet program requirements, such as the submission of requested documentation to support their eligibility for the program, the next name on the list will be considered until a qualified recipient is found.

Applications addressing health and safety code violations or life-threatening emergencies, such as non-functioning hot water heaters, furnaces, or leaky roofs, may be moved up on the waiting list at the discretion of the Director of Community and Economic Development, or their designee. The determination of an emergency condition will be made on a case-by-case basis once the City has received sufficient documentation of any severe issues.

SUBRECIPIENT will submit the waiting list to the City, preferably at the end of each month and no less than once per quarter. Furthermore, SUBRECIPIENT is also responsible for providing a status report on the progress of each homeowner in the queue and updates on ongoing projects.

H. Conflict of Interest
All grant applicants, SUBRECIPIENT staff, contractors, and program staff members are asked to declare any formal or informal relationships they have with one another. These include direct or indirect business or familial relationships. A preexisting relationship will disqualify an applicant from participating in the program.

City government officials, employees, or agents of the City who exercise policy, decisionmaking functions, or responsibilities in connection with the planning and implementation of the program shall not be directly or indirectly eligible for this program. This ineligibility remains for five years after an individual's relationship with the City ends.

CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
7 A contractor with a vested interest in the property cannot bid on a rehabilitation job. A property owner cannot act as a contractor/builder.

I. Fair Housing and Equal Opportunity
Program activities must comply with the following Federal Laws, executive orders, and regulations pertaining to fair housing and equal opportunity:

1. Title VI of the Civil Rights Act of 1964, as amended (42 U.S.C. 2000d et seq), which states that no person may be excluded from participation in, denied the benefits of, or subjected to discrimination under any program or activity receiving Federal financial assistance on the basis of race, color, or national origin.

2. The Fair Housing Act (42 U.S.C. 3601-3620), which prohibits discrimination in the sale or rental of housing, the financing of housing, or the provision of brokerage services against any person on the basis of race, color, religion, sex, national origin, handicap, or familial status.

3. Equal Opportunity in Housing (Executive Order 11063, as amended by Executive Order 12259), which prohibits discrimination against individuals on the basis of race, color, religion, sex, or national origin in the sale, rental, leasing, or disposition of residential property or in the use or occupancy of housing assisted with Federal funds.

4. Age discrimination Act of 1975, as Amended (42 U.S.C. 6101), which prohibits age discrimination in programs receiving Federal financial assistance.

5. Section 504 of the Rehabilitation Act of 1973 prohibits the exclusion of an otherwise qualified individual, solely by reason of disability, from participation under any program receiving Federal funds. The City will take appropriate steps to ensure effective communication with disabled housing applicants, residents and members of the public.

6. Equal Employment Opportunity, Executive Order 11246, as amended, which prohibits discrimination against any employee or applicant for employment because of race, color, religion, sex, or national origin. This must be stipulated in all construction contracts.

7. All Program correspondence must have the Fair Housing logo at the lower right-hand side corner of the first page.

J. Program Outreach and Marketing
All outreach efforts will be done in accordance with federal regulations pertaining to fair housing and equal opportunity to ensure nondiscriminatory treatment, outreach, and access to the Program.

The Fair Housing logo will be placed on all outreach materials. Flyers or other outreach materials, in English, Spanish, and any other language that is the primary language of a significant portion of the area residents, will be widely distributed in the Program-eligible area and will be provided to any local social service agencies.

CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
8 Staff will not conduct outreach or marketing when there is a waiting list of over one year.

The SUBRECIPIENT Program Manager shall maintain and update the waiting list for the Program.

K. Labor Compliance
The Program is exempt from Prevailing Wages and Davis-Bacon requirements.

L. Section 3
Section 3 requirements apply to contracts of $100,000 or more. Due to the Program’s maximum standard grant amount of $30,000, the Program is exempt from Section 3 requirements.

M. Buy America Preference
In general, the “Buy America Preference” (BAP) requires that all iron, steel, manufactured products, and construction materials used in infrastructure projects funded with Federal financial assistance, as outlined in Section 70914(a) of the 2021 Build America, Buy America Act (BABA), must be produced in the United States.

Projects that do not exceed $250,000 in total costs from all sources are exempt from the “Buy America Preference” under HUD’s general waiver for small projects. To demonstrate compliance with the BABA, the SUBRECIPIENT Program Manager must document that a project meets the criteria for the general waiver for small projects in the project file.

N. Amending the Policies and Procedures Manual
The SUBRECIPIENT Program Manager may recommend policy and procedural changes.

All changes made must be in accordance with federal regulations. Policy changes may be approved by the City of Pico Rivera Community and Economic Development Director, or their designee, in writing.

O. Exceptions to Program Policies and Procedures
Any case to which a standard policy or procedure, as stated in this manual, does not apply or an applicant is treated differently from others of the same class would be an exception.

Exceptions to the Program’s policies and procedures are allowable on an individual case basis. The SUBRECIPIENT Program Manager may make written recommendations to the Community and Economic Development Director or their designee. The recommendations must contain a narrative, the recommended course of action, and include relevant documentation to support the exception requested. The Director may approve the policy or procedural exception, for the specific instance, by signing at the CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
9 bottom of the written recommendation. The approved exception must be kept in the case master file.

P. Previous Grant Awards
If an applicant has received a prior grant or loan from the City, they will not qualify for financial assistance until ten (10) years have passed since the issuance of the grant or loan. However, in exceptional cases where there is a health and safety concern, the applicant may be considered for a grant before the ten-year period, subject to approval by the Director or their authorized designee, with the details of the situation properly documented in the file.

Part II – PROGRAM SUMMARY AND GUIDELINES
The Minor Home Repair Grant Program provides a grant of up to $30,000 to low-income homeowners who own and occupy their homes and need financial assistance for health and safety-related repairs.

A. CDBG Rehabilitation Program Description
The Program is funded with CDBG funds provided by the U.S. Department of Housing and Urban Development (HUD). The goal of the Program is to improve the quality of life for low-income residents (80% of median income or less), including people with disabilities and the elderly, residing in the City of Pico Rivera. It provides assistance in the form of a grant of up to $30,000 for minor home repairs and improvements.

B. Applicant Eligibility Criteria
Community Development Block Grant (CDBG) Rehabilitation Programs - Household income cannot exceed 80% of the area median income (AMI), adjusted for household size. The HUD Income Limits are incorporated into this Manual as Appendix A and are updated annually. The SUBRECIPIENT Program Manager shall verify that applicants meet the household income eligibility requirements and have their household income documented. The HUD Income Limits are published by HUD each year. The income limits in place at the time of grant approval will apply when determining applicant income eligibility. The SUBRECIPIENT Program Manager shall ensure to utilize the latest income guidelines. HUD income guidelines may be found at this link:
http://www.huduser.gov/portal/datasets/il.html
C. Eligible Uses of CDBG Grant Funds

1. INTERIOR/EXTERIOR HOME REPAIRS
a. Painting and refinishing of walls and ceilings
Exterior surfaces (exceptions may be made as approved by the City) CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
10 b. Wall resurfacing
Exterior resurfacing-stucco
Interior resurfacing-Plastering, Wallboard, Patching
c. Installation of devices for the elderly or handicapped Ramps, handrails, bathroom fixtures with large handles for the disabled Handrails
d. New and repairs to roofs, gutters, downspouts
e. Electrical repairs
Update existing equipment; rewire non-complying wiring, safety switches f. Plumbing repairs
Water piping, gas piping, sanitary waste and drainage piping, water heater, plumbing fixtures, power clean lines
g. Heating Systems
Repair or new
h. Minor and moderate cement, masonry or asphalt repairs Concrete work such as walkways, driveway, walls
i. Repair or replacement of interior/exterior openings
Doors, windows and locks, screens
j. Minor or moderate tile work only when repairs are needed Bathroom tile work, kitchen tile work
k. Minor or moderate pest control
Fumigation and subsequent repairs, rat proofing
l. Removal of lead-based paint according to Federal Law m. Testing, abatement, or cleanup of asbestos-containing materials according to State and local regulations
n. Landscaping, sidewalks, garages, and driveways when accompanied with other rehabilitation needed, and with the primary goal of bringing the property up to local codes and standards
o. Other repairs necessary for bringing homes into compliance with the rehabilitation standards set forth in City Building Code or as approved by the Community and Economic Development Director or their designee

2. ENERGY CONSERVATION ACTIVITIES
a. Weather-stripping doors and windows
Caulking, replacement glazing
b. Insulation
Attic, walls, water heater
c. Install energy efficient lighting fixtures
d. Installation of ventilation of barriers
vents, vapor barriers
h. Installation of energy efficient plumbing fixtures
I. Other eligible energy conservation activities

3. SECURITY/SAFETY IMPROVEMENTS
CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
11 a. Dead bolt locks, door security view holes
b. Safety devices such as smoke detector and carbon monoxide detectors D. Ineligible Uses of CDBG Grant Funds:

1. Materials, fixtures, equipment, or landscaping of a type and quality that exceeds adequate service or that is not customarily used for properties in the same general area.

2. Cabinet upgrades

3. Kitchen, bedroom, living room and bathroom remodels.

4. Purchase, installation, or repair of furnishings or fixtures such as intercom systems, portable fans, barbecues, bathhouses, greenhouses, swimming pools, saunas, television antennas, tennis courts, dishwashers etc.

5. Construction of new accessory structures such as garages, patios, decks, or storage sheds.

6. Acquisition of land.

7. Property tax payments.

8. Room additions or extensions.

9. Labor costs for homeowners to rehabilitate their own property.

10.Luxury items deemed ineligible by the Director or their designee.

11.Other items deemed ineligible by the Director or their designee.

E. Hierarchy of Funds
Program funds must be used in the following order of priority:

1. Correction of health and safety deficiencies.

2. Correction of code violations and incipient code violations.

3. Repairs and alterations that make a house more supportive of disabled occupants.

4. Repairs and alterations that make a house more energy efficient.

5. Other eligible general property rehabilitation work
F. Rehabilitation Standards
State and local building codes, the City’s rehabilitation standards, and accessibility requirements for persons with disabilities apply to all projects. All repair work related to health and safety conditions will meet Uniform Building Code Standards. The priority will be the elimination of health and safety hazards, and code compliance.

G. Property and Occupancy Eligibility Requirements

1. Property must be a single-family home, condominium (only interior work allowed)

2. Property must be owner-occupied.

3. Property must have a fee simple title

4. Property must be located within City boundaries (Appendix C) CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
12 5. Property must contain a legal residential structure intended for continued residential occupancy.

6. Property must have current property insurance
H. Lead-Based Paint Notification Requirements
Occupants of homes constructed prior to 1978 must receive proper notification of LeadBased Paint (LBP) hazards as follows:

1. The EPA “Protect Your Family From Lead in Your Home” brochure (Appendix E) must be provided to all owners regardless of the cost of rehabilitation or paint test findings.

2. A Certification of Receipt of Brochure (Appendix E) must be signed by the owner and placed in the master file.

3. A copy of the lead evaluation report

4. When Lead hazards are present, a Notice of Lead Hazard Reduction Activity (Appendix L) must also be provided.

LBP hazard reduction guidelines are incorporated in this Manual as Appendix L.

I. Asbestos-Containing Materials Requirements
In accordance with the National Emission Standards for Hazardous Air Pollutants (40 CFR Part 61 Subpart M), California Occupational Safety and Health (OSHA) Rule 1529, South Coast Air Quality Management District (SCAQMD) Rule 1403, and other relevant federal, state, and local regulations, the following requirements are applicable any demolition or rehabilitation activity of a home in which more than 100 square feet of surface area of intact (not damaged) material is removed or stripped, regardless of the age of the building.

Before engaging in any demolition, rehabilitation, or renovation activities, it is mandatory to complete an asbestos survey report signed by a Cal/OSHA Certified Asbestos Consultant.

Furthermore, asbestos abatement (which includes removal, enclosure, and encapsulation) may be needed to prevent exposure to occupants or workers. While the mere presence of asbestos does not pose an immediate hazard, the risk arises if the material is damaged or disturbed, leading to the release of fibers into the environment and creating a health hazard.

Common building components that may contain asbestos include, but are not limited to, spray-applied acoustic ceilings, surfacing materials, roofing components (including some siding shingles), floor tiles and linoleum, backing on vinyl sheet flooring, as well as tape and joint compounds.

Part III – GRANT PROCESSING PROCEDURES
CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
13 A. Preliminary Application Intake
The City will refer all Program questions to SUBRECIPIENT. SUBRECIPIENT shall respond to resident inquiries within a 24-hour period. In developing the waiting list for CDBG owner-occupied Rehabilitation Programs, all interested residents shall be preliminarily screened by SUBRECIPIENT. Applications will be processed in the order received and based on the funding availability. Applicants will be notified when their application has reached the top of the waiting list, based on funding availability.

B. Application Interview
Once an applicant reaches the top of the waiting list, the SUBRECIPIENT Program Manager will contact the applicant to schedule an appointment to conduct an application interview (in person or virtually). The interview enables the homeowner to ask questions and get immediate answers, helps the SUBRECIPIENT Program Manager to work with a more accurate and complete application package, and expedites the overall process.

The SUBRECIPIENT Program Manager is responsible for assisting the homeowner to complete the application forms, and for collecting all the required supporting documentation to establish eligibility. All forms must be fully completed and signed accordingly. All supporting documentation must be current (no older than 6 months).

C. Site Visit
A SUBRECIPIENT staff member will conduct a home visit to inspect the home and determine the repairs necessary for the homeowner's health and safety. SUBRECIPIENT will use the Work Write-Up form to justify and show all the repairs needed for the homeowner's health and safety. The SUBRECIPIENT inspector should also attach accurate pictures that reveal the severity of the damage to the area in need of repair.

Upon completion of the site visit, SUBRECIPIENT will forward the Work Write-Up form to the City within seven (7) days for approval. The Work Write-Up process is described in Part IV, D. The Work-Write Up should provide a detailed description, including square footage estimates for the proposed repairs, and clearly outline the fee structure, distinguishing between labor and materials costs.

The Work-Write Up shall be approved in writing by the City. No work shall commence without the City’s written approval.

D. Application Process
The SUBRECIPIENT may concurrently pre-approve the applicants with the City’s authorization. The pre-approval may include the income qualification of the applicant.

Once SUBRECIPIENT receives approval of the Work-Write Up form, SUBRECIPIENT may begin the formal application process. During the application process, the SUBRECIPIENT Program Manager must:

CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
14 1. Certify income eligibility.
a. Verification of dependent children living at home.
b. Proof of full-time student status for dependents 18+ of age. c. Bank statements and asset/investment statements for the last three (3) months. d. Federal and state income tax returns for the most recent year, including W-2’s.

If the applicant is self-employed, then three (3) years are required. e. Documentation of income, as outlined in Section “D” below. f. Documentation evidencing eligibility of other program requirements, such as ownership, occupancy, and property location.
g. EDD Notice of adult household members who do not receive income

2. Verify property ownership.

3. Verify owner identify by collecting copies of government-issues identification(s) for the owner(s).

4. Verify property is in the City of Pico Rivera.

5. Verify that property is owner-occupied.

6. Verify that mortgage, property taxes, and property insurance are paid and up to date.

7. Create a master file for each application, organized in the order provided in the Approval Packet (Appendix F) and Final Close Out Packet (Appendix K). The master file must be properly labeled.

E. Income Documentation
The Program requires the use of the income definition as defined in 24 CFR 5.609 (Part 5 annual income) to determine household income eligibility. The SUBRECIPIENT Program Manager must complete the Anticipated Income Determination form (Appendix G) based on the requirements detailed in the Technical Guide for Determining Income and Allowances CDBG Rehabilitation Programs, included in Appendix G.

The SUBRECIPIENT Program Manager shall verify that applicants meet the household income eligibility requirements and have their household income documented. The HUD Income Limits are published by HUD each year. The income limits in place at the time of grant approval will apply when determining applicant income eligibility. The SUBRECIPIENT Program Manager shall ensure to utilize the latest income guidelines.

HUD income guidelines may be found at this link:
http://www.huduser.gov/portal/datasets/il.html.

The SUBRECIPIENT Program Manager must certify income based on information obtained from third party verifications (when applicable) and the review of documents provided at the time of application. The income certification is valid for a period of six months. It will not be required to re-certify income unless six months have lapsed from the time of certification. Grant documents must be executed prior to the expiration of the validation period.

The SUBRECIPIENT Program Manager is responsible for obtaining all the required income documentation for all sources of income. Eligibility can be established by CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
15 examining documentation on the different sources of income for the household. The following is a list of income sources, and examples of acceptable documentation:

Type of Income Documentation Source – not older than 6 months Gross employment income:
• Wages
• Salary
• Overtime
• Tips
• Commissions
• Bonuses
• Paycheck stubs (copies of the most recent three
months of paycheck stubs)
• Copy of employment contract, which must specify the
earnings amount and expiration date
Net self-employment or
business income
• Certified copies of tax returns, with signed 4506 form for the previous 3 years (including all attachments,
specifically Schedule “C”)
• Audited financial statement
Social security benefits
• Including SSI payments
• Including anticipated Cost
of Living Adjustments
(COLAs)
• Written verification from the Social Security
Administration
• Copy of award letter stipulating the benefit amount
• Copy of bank statement verifying the direct deposit of the benefit amount
Periodic determinable
allowances:
• Child support
• Alimony
• Regular contributions
received from
organizations or persons
not residing in the dwelling
• Copy of court decree that establishes amount of
support
• Verification from District Attorney’s office that verifies the amount of support
• Notarized affidavit of support
Net rental income • Tax returns, including schedule “E” • Copies of rental agreements/leases, along with a
breakdown of monthly expenses to determine net
income
• Copies of most recent rent checks, along with a
breakdown of monthly expenses to determine net
income
Welfare assistance:
• Payments under the
Temporary Assistance for
Needy Families (TANF)
• Welfare or General relief
• Benefit award letter specifying the amount of the
benefit
• Verification from case worker stating the benefit
amount
• Copy of checks
CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
16 Income from assets:
• Savings account(s)
• Checking account(s)
• Investments
• Bank statements showing the last 3 months of interest • Savings passbook
• Verification of deposit
• Most recent income tax returns showing the interest
earned
• Investment statements showing the dividends earned
and/or anticipated earnings
Type of Income Documentation Source – not older than 3 months Gross amount of payments
in lieu of earnings:
• Unemployment
• Disability compensation
• Worker’s compensation
• Benefit award letter showing monthly benefit
• Copy of checks
Gross amount of periodic
payment:
• Annuities
• Pensions/Retirement
• Disability benefits
• Death benefits
• Statement of benefits
• Benefit award letter
• Verification from awarding agency/entity
Other sources of income:
• Union benefits
• Other income not
specified above
• Statement of benefit award that evidences benefit
amount
• Documentation to support declaration of other income
No income: • EDD Notice of Unemployment
• Verification of previous employment
No tax returns: • Verification from IRS that no taxes were filed.

F. Third Party Verifications When requesting third-party verifications, the SUBRECIPIENT Program Manager must attach the corresponding verification forms (Appendix B), which authorizes the third-party to release the information requested. Third-party written verifications may be in the form of original forms, facsimile copies, e-mail. Although written requests and responses are generally preferred, conversations with a third party are acceptable if documented through a memorandum to the file, which specifies the contact person, information conveyed, and date of call. In all cases, the SUBRECIPIENT Program Manager must make sure that the person verifying the information is a valid source.

G. Income Exclusions
CDBG Minor Repair Grant Program Guidelines
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17 The list of sources of income that should not be included in the income calculation is specified in the Technical Guide for Determining Income and Allowances for CDBG Rehabilitation Programs (Appendix G).

H. Assessing Information and Computing Income
The SUBRECIPIENT Program Manager must calculate the household income based on the documentation obtained and complete an Anticipated Income Determination Form (Appendix G) for each household.

1. When assessing the documentation, it is important to determine:
a. The frequency on which employees are paid, such as hourly, weekly, monthly, with or without overtime, etc.
b. In the case of overtime, it is crucial to determine whether the overtime is irregular or a predictable part of the person’s income.
c. If the household member will continue to earn overtime pay on a regular basis, then the SUBRECIPIENT Program Manager must calculate the average amount of overtime pay earned over the period used to calculate income eligibility, and the average amount of overtime earnings must be included in the income projection for the household.
d. If overtime work is not constant, and will not be constant in the next 12 months, the SUBRECIPIENT Program Manager must request detailed overtime information from the employer in the Verification of Employment, and use the information supplied by the employer to determine how overtime is to be calculated.

2. Formulas used to determine annual income:

Frequency Formula
Weekly Multiply gross income by 52 weeks
Biweekly Multiply gross income by 26 weeks
Twice-a-month Multiply gross income by 24 weeks
Monthly Multiply gross income by 12 months

3. Refer to the Technical Guide for Determining Income and Allowances (Appendix G) for CDBG Rehabilitation Programs for household members who have variations in pay.

4. If the SUBRECIPIENT Program Manager has verification that the household member has been employed by the same employer from the beginning of the calendar year, then the monthly income can be calculated by dividing the year-to-date (YTD) annual earnings by the number of months worked. For example, if the paycheck stub indicates that the pay period ended June 28, 2020, and the YTD is $18,500, then divide $18,500 by 6.93 months, and annualize the calculated monthly earnings by multiplying the result by 12.

CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
18 $18,500 ÷ 6.93 = $2,669.55 per month
$2,669.55 x 12 = $32,034.60 per year
To determine the number of months to use for the calculation, you must count the number of full months and determine the percentage of time for the partial month. In the example above, the YTD included earnings of 28 days of a 30-day month. Thus, you divide 28 by 30 to establish the percentage (28 ÷ 30 = 0.93). In this instance, the employee worked 6.93 months.

The above method will only work if staff has verified that the household member has worked for that same employer since the beginning of the calendar year, and if the paycheck stub reflects the year-to-date earnings that include all overtime, bonuses, etc.

I. Special Circumstances
If income cannot be calculated by using the documentation described above, then the income calculation must be handled on a case-by-case basis, as appropriate for the situation. For example: If the income is derived from the sale of recyclable materials, it will be necessary to provide enough documentation (i.e. sales receipts) to reasonably determine annual income. The documentation must be in a form acceptable to the City of Pico Rivera Community and Economic Development Director or their designee and obtained in writing.

J. Determining Household Size
Since income limits are adjusted by household size, it is crucial to accurately determine the size of the applicant’s household.

A child who is subject to shared custody may be counted as part of the household if the child resides with the household at least 50% of the time. The SUBRECIPIENT Program Manager must obtain verification of dependent children living at home, such as copy of birth certificate, court order awarding child custody, school records, or other documentation that will verify the dependent of part of the household. Unborn children are not considered part of the household.

The SUBRECIPIENT Program Manager must review the “breakdown of household members” portion of the application, which is where the borrower discloses all the members of the household. The SUBRECIPIENT Program Manager must also look for “red flags” that indicate discrepancies in the household size disclosed by the applicant.

For example, if the applicant claims that they have 3 dependent children, but the tax returns only show 2 children. In this case, the SUBRECIPIENT Program Manager must obtain more information and additional documentation to support the 3rd dependent child, such as a copy of the birth certificate for a newborn, a court order that grants custody of the child, or school records for the additional dependent.

CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
19 For household members of 18 years of age and older who are full-time students, the SUBRECIPIENT Program Manager must obtain verification of full-time student status, such as school records, registration, or other documentation that will evidence student status.

K. Comparing Household Income to Income Limits
Once the household size and anticipated household income have been determined, the information must be compared to the Income Limits issued by HUD to verify eligibility.

HUD income limits are updated annually. Thus, the SUBRECIPIENT Program Manager must make sure to use the most recent HUD Income Limits (Appendix A). HUD will generally update income limits in the second quarter of each year.

The SUBRECIPIENT Program Manager shall verify that applicants meet the household income eligibility requirements and have their household income documented. The HUD Income Limits are published by HUD each year. The income limits in place at the time of grant approval will apply when determining applicant income eligibility. The SUBRECIPIENT Program Manager shall ensure to utilize the latest income guidelines.

HUD income guidelines may be found at this link:
http://www.huduser.gov/portal/datasets/il.html
Households must have incomes at or below 80% AMI, adjusted for family size, to be eligible for the Program.

L. Other Eligibility Criteria
In addition to income documentation, the SUBRECIPIENT Program Manager must obtain supporting documentation to determine eligibility for other program requirements.

Eligibility Requirement Must verify with at least one of the following:

Verification of ownership:

The property must be owned by the
grant applicant.
• Copy of property deed, such as grant deed,
deed of trust, quitclaim deed, etc.
• Title report or property insurance issued within
the last year, which verifies the vesting to be
the applicants’ name(s)
• Property tax bill
• Property profile or cover from title company
Verification that property is in the
City.
• Pico Rivera boundary (Appendix C)
• Properties in the unincorporated areas of Los
Angeles County are not eligible
Verification that property is owneroccupied:

The property must be the owner’s
principal place of residence.
• Copy of utility bill (except telephone bill),
which shows the applicant’s name(s) and
property address
CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
20 • Copy of current property tax bill that shows
homeowner’s exemption and the subject
property as the mailing address
Verification that mortgage payment
is current.

Assistance cannot be provided if
payment is not current.
• Copy of most recent mortgage statement that
shows payment is current
• Verification of mortgage completed by
Mortgagor
• Mortgage history printout
Verification of type of first
mortgage.

No reverse mortgages, or negative
amortizations.
• Copy of most current mortgage statement
Verification that property taxes are
up to date.

Assistance cannot be provided if
taxes are not current.
• Printout from the Los Angeles County Tax
Collector’s website that shows the tax as
current. Website at http://ttax.co.la.ca.us/
• Receipt of payment (if payment has been
recently made and website has not been
updated)
• Copy of payment arrangements from tax
collector for delinquent tax
Verification that property insurance
is up to date.
• Copy of current evidence of property
insurance or policy. It must show the
expiration date, or specify that it is continuous
Verification of Dependents • Copy of birth certificate(s) • Copy of school records
• Court order warding custody
• Adoption documents
• Proof of full-time student status for
dependents 18+ years of age
M. Grant Processing Timeline
Grant applications must be processed in the order received. Upon receipt of a completed grant application, the SUBRECIPIENT Program Manager must evaluate it for eligibility and compliance of program and funding requirements within seven (7) business days.

If the application is incomplete, the SUBRECIPIENT Program Manager must issue a Request for Additional Documentation (Appendix F) to the Applicant and allow fourteen (14) calendar days for the Applicant to submit the missing documentation. If the Applicant fails to submit the missing documentation within the deadline, a second reminder must be sent, and a fourteen (14) day extension can be granted. If there is no response to the second notice, then a Notice of Cancellation of Grant Application (Appendix F) must be mailed.

CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
21 When the application is complete, and eligibility has been determined, the SUBRECIPIENT Program Manager must:

1. Request all required third party verifications, as applicable.

2. Order property inspection by following the procedures specified in Part IV, of this Manual.

3. Upon receipt of the Inspection report, order lead testing (when applicable) - To comply with HUD’s Lead Safe Housing Rule, a certified Environmental Company must perform a lead inspection to test surfaces to be disturbed during rehabilitation activities on properties built prior to 1978. A post lead clearance is also required.

Refer to Appendix L for Lead- Based Paint (LBP) hazard reduction requirements. The required report must be ordered on each grant application within five (5) business days from the time eligibility has been established. Email the request to a certified Environmental Company and keep the confirmation in the grant master file for reference and follow-up.

4. Upon receipt of the Inspection report, order an asbestos survey report (when applicable). To comply with South Coast AQMD's Rule 1403, a Cal/OSHA Certified Asbestos Consultant or Certified Site Surveillance Technician must perform an asbestos survey if rehabilitation activities will include removing or stripping 100 square feet or more of surface area of intact material, regardless of the age of the property. The required report must be ordered on each grant application within five (5) business days from the time eligibility has been established. Email the request to a certified environmental company and keep the confirmation in the grant master file for reference and follow-up.

5. Order termite inspection (if requested by the homeowner) within five (5) business days from the time eligibility has been established. The SUBRECIPIENT Program Manager must email the request to at least three (3) qualified extermination companies and keep the confirmation for all three (3) requests in the grant master file. If the property has been inspected and treated for termites within the last 12 months, a new termite report is not required.

6. The SUBRECIPIENT Program Manager must conduct proper follow-up if lead, asbestos, or termite reports are not received within three (3) weeks from the time they were ordered.

7. Upon receipt of a lead, asbestos, or termite report/survey, the SUBRECIPIENT Program Manager must provide copies to borrower, who must sign an acknowledgement of receipt of reports. The SUBRECIPIENT Program Manager must also forward copies of the reports to the SUBRECIPIENT Inspector so that the Work Write-up (Appendix I) can be completed.

8. The SUBRECIPIENT Program Manager must obtain historic clearance for the subject property, as specified in the Part III, Grant Processing Procedures.

N. Historic Preservation
Historic preservation requirements apply to properties that are 50 years old or older.

Historic properties are residential properties listed in or eligible to be listed in the National Register of Historic Places, state or local inventory of historic places, designated as a CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
22 historic landmark, or designated as contributing to a historic district by local law or ordinance. The SUBRECIPIENT Program Manager must determine if the property is subject to historic preservation requirements, as follows.

1. Verify the age of the property with a title report or through the LA County Assessor website at
http://maps.assessor.lacounty.gov/GVH_2_2/Index.html?configBase=http://maps.as sessor.lacounty.gov/Geocortex/Essentials/REST/sites/PAIS/viewers/PAIS_hv/virtua ldirectory/Resources/Config/Default. If the property is not 50 years old or older, then no further historic process is required.

2. If the subject property is 50 years old or older and the rehabilitation work will involve exterior work, the SUBRECIPIENT Program Manager must submit a Historic Eligibility Determination to State Historic Preservation Office (SHPO) via regular mail.

This consultation with SHPO is only for projects that will include exterior work. SHPO clearance is not needed for projects that will only address interior rehabilitation, or for properties that are not 50 years old or older. The consultation letter must include:
a. Photographs of the front, back, and side views of the subject property. b. A list of the proposed rehabilitation.
c. Relevant information regarding the historic significance of the property.

SHPO must respond within 30 days. If no response is received, then rehabilitation work may proceed.

3. Completion of Historic and Architectural Assessment Form:
a. If the proposed rehabilitation involves only interior work or if the subject property is less than 50 years old, only Part A of the Historic and Architectural Assessment Form (Appendix H) is necessary.
b. If the proposed rehabilitation involves exterior work to a property that is 50 years old or older, verify that proper consultation was submitted to SHPO. If no response is received from SHPO within 30 days, then project is able to proceed. c. Complete Part B of the Historic and Architectural Assessment Form (Appendix H) for projects that involve exterior rehabilitation of properties 50 years old and older.

O. Compliance of Environmental Requirements
The City of Pico Rivera Community and Economic Development Director, or their designee, must ensure that each project is reviewed for its environmental impacts.

Community and Economic Development Department staff will complete the Environmental form Part-58 CEST-Format. The Environmental Form may be found at https://www.hudexchange.info/resource/3139/part-58-environmental-review-cest-format/ and also under Appendix H. The Environmental Finding Forms must be executed by the authorized certifying officer, the City of Pico Rivera Community and Economic CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
23 Development Director or their designee. A copy of document shall be forwarded to the SUBRECIPIENT program manager and included in the master file.

Part IV – PROPERTY INSPECTION & SELECTION
A. Inspection Requests
Once Program eligibility has been established, the property must be inspected to determine the work that needs to be done. The SUBRECIPIENT Program Manager must request an inspection with the SUBRECIPIENT Contractor.

B. Inspections
The SUBRECIPIENT Program Manager must contact the homeowner to schedule the inspection. Appointments can be set in the morning or afternoon, depending on the SUBRECIPIENT Contractor’s schedule. If an appointment is set for the morning, the homeowner must be available between 8:00 AM and 12:00 PM. For afternoon appointments, the homeowner must be available between 12:00 PM and 4:00 PM. While scheduling the initial inspection, the SUBRECIPIENT Contractor must inform the homeowner that access to all areas of the property is required.

The SUBRECIPIENT Contractor must conduct a thorough property inspection to assess the repairs needed, prepare work specifications to bring the subject property into conformance with Program requirements as specified in Part II, Program Summary and Guidelines of this Manual, and provide a rehabilitation estimate. The field inspection must be conducted based on the Repair Check-off List (Appendix E), submitted by property owner as part of the application, Property Standards, and Program guidelines.

The SUBRECIPIENT Contractor must take adequate “before and after” photos of all the areas to have repairs completed and for historic clearance. A minimum of one photograph per area is required. Pictures should provide a clear and comprehensive visual record, capturing the full extent of the issue, the affected area’s context within the home, and the completed repair work, with sufficient detail and resolution to document the improvements made.

C. Property Standards
All repair work must meet current Uniform Building Code standards. At a minimum, health and safety hazards and code deficiencies must be eliminated.

D. Work Write-up
The SUBRECIPIENT Contractor must prepare the Work Write-up (Appendix I), which is the set of instructions specifying the proposed rehabilitation work. The Work Write-up must describe and address any code violations, health and safety deficiencies, and lead CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
24 or asbestos hazards in a manner that is sufficiently detailed to serve as the basis for estimating costs and, if required, contractor bids. The Work-Write up must include the following:

1. Scope of Work, which must conform with:
a. Program requirements, such as lead hazard reduction, asbestos survey, correction of health and safety deficiencies and of code violations and incipient code violations, work that improves energy efficiency, and other eligible general property rehabilitation.
b. Planning & Building Requirements.
c. Exact meaning of words, such as “any” implies a limited number selected at the discretion of the reader, while “all” means every.

2. The type of materials that are allowed under the Program. No luxury upgrades are allowed. Deteriorated materials and components must be replaced with like materials. The write-up must include adjective strings to describe materials.

3. Quantity.

4. Location of where the rehabilitation will occur, as in the bedroom, kitchen, etc.

5. Construction method and specific instructions of the proposed work, which uses action verbs strings to describe the method, such as “power wash, prep and repair stucco surfaces.”

6. Special conditions, requirements, and/or installation method, as when working with lead-contaminated areas, asbestos-containing materials, termite infestation, etc.

7. Performance standards, such as durability and warranties.

8. General provisions, which define rules that apply to all write-ups, such as definitions, process, etc.

9. Plans (when applicable).

10. No cross-outs or white out are allowed for deletion of line items. An amended work write-up must be printed out, reflecting any changes made, along with the date of amendment.

11. The final work write-up must have approval from the City prior to the commencement of the project.

12. The work write-up should include square footage and specify location of work.

13. The description should break-down costs by labor and material and shall specify the brand names of materials being purchased.

14. The work write-up must be saved in the project file created by the SUBRECIPIENT Program Manager for the specific case file.

E. SUBRECIPIENT Contractor Estimate
Along with the work write-up, the SUBRECIPIENT Contractor must prepare an estimate of costs for the proposed rehabilitation work. The staff estimate must be used as a guideline for the project budget.

F. Work Write-up Containing Lead Work or Asbestos Survey The SUBRECIPIENT Contractor must incorporate in the Work Write-Up all of the necessary lead inspection or asbestos survey, and if necessary, reduction/abatement CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
25 work utilizing the most appropriate and cost-effective methods, as defined in the LBP Hazard Reduction Guidelines (Appendix L), the LBP risk assessment report, the asbestos survey report, and South Coast AQMD Rule 1403.

G. Inspection and Write-up Timeline

1. Inspection must be scheduled up to fourteen (14) business days from the time eligibility was established.

2. Up to twenty-one (21) business days from the inspection and receipt of lead report or asbestos report, the Inspector must prepare a preliminary work write-up.

3. The homeowner must review and comment on the preliminary work write-up, up to fourteen (14) business days thereafter. The SUBRECIPIENT Program Manager must conduct adequate follow-up to ensure that homeowner responds in a timely manner.

4. A final work write-up, reflecting any changes made, must be completed fourteen (14) business days from the receipt of the homeowner review. The homeowner must acknowledge approval of the work write up by completing the Work Write Up Approval Form (Appendix I). The project must go through the bid process using the final work write-up, required Contractor Selection Forms can be found in Appendix J. A copy of the final write-up must be provided to the homeowner, and the original must be maintained in the project’s master file. For any work using a subcontractor(s) a total of three (3) bids must be collected.

5. The SUBRECIPIENT Program Manager shall submit the work write up to the City for approval and shall obtain the proper building permits as required.

6. SUBRECIPIENT contractors shall be responsible for obtaining a building permit.

Costs associated with securing permits are an eligible reimbursable cost.

H. Qualifications
A certified Environmental Company must perform a lead inspection to test surfaces to be disturbed during rehabilitation activities to properties built prior to 1978. A post lead clearance is also required. Refer to Appendix L for Lead Based Paint (LBP) hazard reduction requirements. The required report must be ordered on each grant application with five (5) business days from the time eligibility has been established. The SUBRECIPIENT Program Manager must obtain three bids and select a lead testing/abatement contractor to conduct a lead inspection and abatement. Upon receipt of the lead report, the SUBRECIPIENT Program Manager must provide copies to the applicant, who must sign an acknowledgement of receipt of report. If lead is found on the property a certified lead removal company must be utilized. A certified lead company different from the lead testing/abatement company must certify that the lead has been removed. The SUBRECIPIENT Program Manager must obtain three bids and select the lead testing/abatement company and for the lead company certifying clearance.

A Cal/OSHA Certified Asbestos Consultant or Certified Site Surveillance Technician must perform an asbestos survey report before demolition or rehabilitation of a home in which at least 100 square feet of surface area of intact (not damaged) material is to be removed or stripped regardless of the age of the property. The required report must be ordered on CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
26 each grant application within five (5) business days from the time eligibility has been established. The SUBRECIPIENT Program Manager must obtain three bids and select a certified asbestos survey/abatement contractor to conduct an asbestos survey report and any necessary abatement. Upon receipt of the asbestos survey report, the SUBRECIPIENT Program Manager must provide copies to the applicant, who must sign an acknowledgment of receipt of report. If asbestos abatement is performed, a different certified asbestos survey/abatement contractor must conduct the asbestos clearance monitoring and certify that the asbestos has been removed. The SUBRECIPIENT Program Manager must obtain three bids and select the certified asbestos survey/abatement contractor that will certify clearance of asbestos.

If a termite inspection is requested by the applicant, the SUBRECIPIENT Program Manager must obtain three (3) bids for a certified extermination company to conduct an inspection and abatement. Upon receipt of the termite report, the SUBRECIPIENT Program Manager must provide copies to the applicant, who must sign an acknowledgement of receipt of report. After the removal, the SUBRECIPIENT Program Manager must obtain an extermination company to certify that termites have been cleared from the property. The SUBRECIPIENT Program Manager shall obtain three (3) bids and obtain a certified extermination company.

The SUBRECIPIENT Program Manager must ensure that the SUBRECIPIENT Contractor meets all the following Program requirements:

1. State of California ’s License in good standing

2. Current contractor’s licensing bond ($12,500 minimum)

3. Current liability insurance ($1,000,000 minimum coverage)

4. Current worker’s compensation insurance

5. Contractor must not be debarred from HUD or from the State of California

6. Contractor qualifications must be checked, either annually or when a rehabilitation contract is awarded, to ensure compliance of licensing and insurance requirements.

7. City of Pico Rivera Business License
For LEAD contractors the additional following requirements must be met:

1. Current State of California Department of Health Services Lead-Related Construction Certifications for all workers and supervisors

2. Liability and workers compensation insurance for lead-related work

3. Current injury and illness prevention program plan

4. EPA LEAD Certification
For ASBESTOS contractors the additional following requirements must be met:

5. Current State of California Division of Occupational Safety and Health (Cal/OSHA) certification as Asbestos Consultants or Site Surveillance Technicians for all workers and supervisors

6. Liability and workers compensation insurance for asbestos-related work

7. Current injury and illness prevention program plan
CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
27 8. EPA AHERA refresher training certificates
I. SUBRECIPIENT Contractor Documentation

1. Completed Qualification Application Packet.
a. W-9 Form.
b. Non-debarment Certification.

2. Copy of current ’s license.

3. Current certificate of liability insurance naming the City as an additional certificate holder.

4. Current certificate of worker’s compensation insurance naming the City as an additional certificate holder.

5. Copy of City business license.

6. W-9 Taxpayer Number and Certification.

7. Copy of current driver’s license.

8. For a lead contractor:
a. Copy of current State of California Department of Health Services Lead-Related Construction Certifications for all workers and supervisors. b. Liability and workers compensation insurance must cover lead-related work. c. Copy of medical reports and fit test respirator for all lead-certified workers and supervisors.
d. Copy of the company’s current site-specific injury and illness prevention program (IIPP) plan.

9. For an asbestos contractor:
a. Copy of current State of California Division of Occupational Safety and Health (Cal/OSHA) certification as Asbestos Consultants or Site Surveillance Technicians or all workers and supervisors.
b. Liability and workers compensation insurance must cover asbestos-related work. c. Copy of current EPA AHERA refresher training certificates. d. Copy of the company’s current site-specific injury and illness prevention program (IIPP) plan.

J. Verification of Qualifications
The SUBRECIPIENT Program Manager must review the application and verify pertinent information, as follows:

1. Verify licensing information through the State License Board website at http://www.cslb.ca.gov/consumers. A printout is required for the master file.

2. Verify that it has not been debarred by HUD or the State of California by accessing the following websites:
a. http://epls.arnet.gov for HUD debarments. A printout is required for the file. b. http://www.dir.ca.gov/dlse/debar.html for California debarments. A printout is required for the master file.

CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
28 K. Central File
Once eligibility has been established, the SUBRECIPIENT Program Manager must set up a file that contains all the required documentation and eligibility verification. Proper follow-up is required to ensure that licensing, insurance, and debarment documentation is current prior to issuing a Notice to Proceed on any project.

Part V – FINAL EVALUATION AND APPROVAL PROCEDURES
A. Final Evaluation and Approval
The Contractor shall determine if a City of Pico Rivera Building Permit is required and obtain the permit after the SUBRECIPIENT Contractor completes the Work Write Up.

The SUBRECIPIENT Program Manager must conduct a final evaluation of the file to ensure compliance of all Program requirements. This final evaluation includes a review of the following:

1. Review the Anticipated Annual Income Certification Form to verify calculations are accurate.

2. Compare the income calculation on the certification against the income limit chart to verify that household is within the maximum income.

3. Verify that historic and environmental requirements were met. Make sure that the Environmental Review form was completed using the historic and flood information obtained.

4. Verify that LBP requirements were met, per the Lead Based Paint Hazard Reduction Guidelines (Appendix L).

5. Verify that any asbestos survey/abatement requirements were met.

6. File circulation for approval: Upon grant recommendation by the SUBRECIPIENT Program Manager the file must be forwarded to the City of Pico Rivera Director of Community and Economic Development or designee.

7. Approvals are good for 30 days, and legal grant documents must be executed prior to the 30-day deadline. A time extension may be granted, on a case-by-case basis.

8. One hundred percent of grant proceeds must be used to rehabilitate the home.

9. No cash is provided to the homeowner.

10. No more than 20% of the grant may be used for administrative costs.

11. Denial: If eligibility is not established, the SUBRECIPIENT Program Manager must inform the applicant and document the reasons for denial.

12. Upon approval/denial, the SUBRECIPIENT Program Manager must send a notification (via mail or email), within seven (7) business days from approval / denial date to the applicant.

Part VI – FUNDING PROCEDURES
CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
29 The program allows up to $30,000 for each owner-occupied housing unit.

Part VII – CONSTRUCTION MANAGEMENT PROCEDURES
The SUBRECIPIENT Contractor is responsible for monitoring the construction activities of all projects and scheduling the required inspections with the City of Pico Rivera Building Inspector when required.

A. Pre-Construction Conference
SUBRECIPIENT Program Manager must conduct a pre-construction conference with the homeowner prior to starting any work. The purpose of the pre-construction conference is to review the roles and responsibilities of each party, review the work write-up, rehabilitation process, start date, date of completion, and other terms and requirements stipulated in the Agreement for Rehabilitation (Appendix K). SUBRECIPIENT must address any questions or concerns regarding the work to be performed from the homeowner and execute the Agreement for Rehabilitation and Notice to Proceed (see manual section Part VII, C) to begin construction.

B. Agreement for Rehabilitation
The homeowner and SUBRECIPIENT Program Manager must execute an Agreement for Rehabilitation, which specifies the repairs and rehabilitation to be financed through the Program. The Agreement for Rehabilitation is a contract between the homeowner and SUBRECIPIENT. The City is not a party to the contract. The Agreement must include the following:

1. The Property Owner/Subrecipient Agreement for Rehabilitation (Appendix K)

2. The Work Write Up (Appendix I) / construction plans (if required by the City of Pico Rivera Building Inspector)
Rehabilitation Contracts are not required for work under $500. Only a Work Write Up signed by the owner is required. The SUBRECIPIENT Program Manager shall ensure that this exception meets federal guidelines.

C. Notice to Proceed
SUBRECIPIENT (or its subcontractors) is authorized to begin the home repairs once a Notice to Proceed has been documented between the homeowner, SUBRECIPIENT, and the subcontractor (when applicable), noting the agreed upon start date. Acceptable documentation includes a Notice to Proceed form (Appendix K) or an email including all parties with confirmation from the homeowner. Any work SUBRECIPIENT completes before the date noted on the Notice to Proceed is ineligible for payment.

CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
30 D. Building Permits
Prior to the start of construction, the SUBRECIPIENT Contractor must procure the appropriate permits and approvals, as required by the City of Pico Rivera and other local agencies. The contractor shall not start any work without properly documenting a Notice to Proceed (see manual section Part VII, C). The Contractor must comply with permit requirements in order to receive payment for work completed.

E. Payment Schedule

1. One payment shall be made to the Contractor when work is completed for each application.

2. Only completed, inspected, and approved work, is eligible for payment. Payment is made for satisfactory completed work.

3. Payment Process: The SUBRECIPIENT Program Manager must call the City of Pico Rivera Building Inspector (only when a building permit is required) for an inspection and a final signature on the building permit and request payment by submitting the following documents to the City of Pico Rivera Director of Community and Economic Development or designee:
a. Invoice for the amount due.
b. Authorization to Release Payment (Appendix K) is signed by the homeowner. c. The SUBRECIPIENT Program Manager shall then submit the complete file packet for the review of the City of Pico Rivera Director of Community and Economic Development, or designee, for release of payment. d. Lien release (Appendix K) signed by all laborers, suppliers, and subs used up to that point.
e. Completion Notice (Appendix K)
f. Completed Final Close Out Packet (Appendix K)
F. Payment Demand/Purchase Orders
The City of Pico Rivera Director of Community and Economic Development, or designee, shall submit a Purchase Order (PO) to the Finance Department to obtain management approval. The PO shall include the PO number in the location denoted on the Finance Requisition form.

G. Change Orders
No change in work as described in the CDBG Rehabilitation Program Work Write-up/Cost Estimate, and/or Specifications and/or Plans and Drawings, shall be made except upon the mutual written consent of the Property Owner and SUBRECIPIENT. At no time shall the cost of the work exceed $30,000. SUBRECIPIENT shall not be entitled to any compensation for any additional Work unless such written Change Order Agreement (Appendix K) is made and entered into by Property Owner and SUBRECIPIENT. The CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
31 Change Order shall describe the nature of the additional Work in a detailed description, the estimated time for completion thereof, and the terms of compensation to be paid to SUBRECIPIENT for its performance in accordance with the Agreement as modified by the Change Order. If changes are made without each party’s authorization the contract will be terminated. The change order must be submitted and approved by the City prior to execution.

Grant amount may exceed the $30,000 maximum if the Community and Economic Development Director, or designee, makes a determination in writing that there is a critical safety repair. The Director, or designee, has authority to increase the grant up to a combined amount not to exceed $45,000 per application.

The SUBRECIPIENT Program Manager shall:
a. Verify the work that is being invoiced has been completed b. Verify the charges are correct.
c. If the invoice meets the above standards, attach a signature stamp to the invoice, obtain the appropriate signatures
d. Invoices for Final Payment, indicate on signature stamp H. Reporting
The SUBRECIPIENT Program Manager shall provide the following Reports (Appendix D):

Quarterly Reports - due no more than fifteen (15) days after the end of a fiscal year quarter (for example, October 15th, January 15th, April 15th and July 15th).

I. Warranties
The SUBRECIPIENT Contractors must comply with State law regarding all labor and material warranties. The Contractors must warrant that all rehabilitation work meets the accepted standards of the trade and are free from defects. The Contractor must warrant that any defects, which are found within twelve (12) months from the date of completion, for roofs the warranty for labor is a minimum of five (5) years or the items must be repaired or replaced, at the contractor’s option and at no expense to Property Owner.

The Contractor must provide to the homeowner commercially reasonable written warranties and guarantees from its subs and suppliers to the extent that they are obtainable in the ordinary course of business. The Contractor must give the homeowner a reasonable opportunity to purchase any additional or extended warranties available for purchase from subs or material suppliers.

J. Termite / Fumigation
CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
32 The SUBRECIPIENT Program Manager must coordinate termite fumigation with homeowner, extermination company, and the general contractor (as necessary).

K. Termination of Agreement for Rehabilitation
The homeowner and the SUBRECIPIENT have the right to terminate the Agreement for Rehabilitation upon a three (3) days’ written notice. In the event of such termination, SUBRECIPIENT is entitled to payment for all Work done through and including the effective date of such termination. Such termination is effective on the date such notice is personally served, or forty-eight (48) hours after deposit of same in the custody of the United States Postal Service, as reflected by the official U.S. postmark.

Part VIII – GRANT CLOSURE PROCEDURES
A. File Completion and Close-out
Upon release of final payment, the SUBRECIPIENT Program Manager must close-out the project file as follows:

1. The SUBRECIPIENT Program Manager must reconcile the project expenditures and make sure that the file contains copies of all demands, authorizations for payment, and checks issued.

2. The SUBRECIPIENT Program Manager must make sure that the master file contains photographs of the work completed (“before and after pictures”) to file along with the photographs taken during the initial inspection. The “before and after” pictures illustrate the accomplishments of the Program.

CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
33 LIST OF APPENDICES
A. HUD Income Limits
B. Income Verification Forms

1. General Consent Form

2. Verification of Employment

3. Verification of Deposit

4. Verification of Deposit (Wells Fargo)
C. City Limits Map
D. Reporting

1. Quarterly Report
E. Application Packet

1. Application Cover Letter

2. Income Documentation Requirements

3. “Protect Your Family from Lead in Your Home” -English

4. “Protect Your Family from Lead in Your Home” -Spanish

5. Lead Based Paint Certification-Receipt

6. Repair Check-off List
F. Grant Processing Forms

1. Acknowledgement of Receipt of Report

2. Denial Letter-Ineligible due to income

3. Approval Packet

4. Intake-Cancellation Letter

5. Notice of Cancellation of Loan Application

6. Request for additional documents

7. Request for additional docuements-2nd Notice
G. Income Determination Forms

1. Anticipated Annual Income Certification Form

2. Income Tax Not Required Certification

3. HUD’s Technical Guide to Determining Income

4. No Income Certification
H. Environmental/Historic Preservation Forms

1. Historic and Architectural Assessment Form

2. Part-58 CEST Format
I. Property Assessment Forms

1. Home Repair Assessment Form
CDBG Minor Repair Grant Program Guidelines
May 2024 - Draft
34 2. Home Preservation Program Work Write Up
J. Contractor Certification Package/Selection Forms

1. Contractor Bid Form

2. Certification from Debarment

3. IRS Taxpayer Identification

4. W-9 Form
K. Construction Management Forms

1. Authorization for Payment

2. CDBG Grant Agreement

3. Change Order

4. Contractor’s Lien Release

5. Final Close Out Packet

6. Notice to Proceed

7. Smoke Detectors Installation Self Certification
L. Lead Based Paint Hazard Reduction

1. Lead based Paint Hazard Reduction Guidelines

2. Notice of Lead Hazard Evaluation or Presumption

3. Notice of Lead Hazard Reduction
To: Mayor and City Council
From: City Manager
Meeting Date: June 11, 2024
Subject: APPROVE AN AGREEMENT WITH AVANT-GARDE, INC.,

FOR COMMUNITY DEVELOPMENT BLOCK GRANT

PROGRAM ADMINISTRATIVE SERVICES
Recommendation:

1. Approve a Professional Services Agreement with Avant-Garde, Inc., for administration of the City of Pico Rivera’s Community Development Block Grant Program; and

2. Authorize the City Manager to execute the agreement in a not-to-exceed amount of $126,900 for one year, with an option to execute extensions for up to two additional years, for a total not-to-exceed amount of $303,400 over a three-year period.

Fiscal Impact:

Staff is recommending City Council approval of the fiscal year (FY) 2024-25 Community Development Block Grant (CDBG) budget as part of an amended Annual Action Plan.

The Plan allocates $107,314 in CDBG funds for planning and administration. The $107,314 in CDBG funding will be supplemented by $19,586 from General Fund Planning – Professional Services Account No. 100.30.3010.54400 for a total of $126,900 to cover the one-year agreement costs.

The additional funding is necessary to cover the administrative expenses required to prepare the upcoming five-year Consolidated Plan. This process, mandated by the U.S.

Department of Housing and Urban Development (HUD), will take place in FY 2024- 2025.

Background:

The City of Pico Rivera (City) receives an annual funding allocation in CDBG funds from the U.S. Department of Housing and Urban Development (HUD). These funds support various community development activities benefiting low- and moderate-income 14 CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 11, 2024 APPROVE AN AGREEMENT WITH AVANT-GARDE, INC., FOR COMMUNITY

DEVELOPMENT BLOCK GRANT PROGRAM ADMINISTRATIVE SERVICES

households. For this fiscal year, HUD allocated $589,071 in annual entitlement funds.

Twenty percent, or $117,814, can be used for planning and administrative expenses for the fiscal year. HUD requires cities to use part of their administration funds to provide residents with fair housing services. The City currently contracts with the Housing Rights Center for these services at a cost of $10,500 which leaves a balance of $107,314 for planning and administrative expenses.

Administering the CDBG program involves extensive technical support, proper documentation, and meeting HUD requirements. Key tasks include preparing and reviewing CDBG/HUD reports, monitoring legislative impacts, conducting annual compliance checks, and updating HUD's Integrated Disbursement and Information System (IDIS). The work also involves preparing environmental reviews, public notices, annual budgets, and responding to HUD inquiries. Oversight is necessary for CDBG subrecipients and capital improvement projects to ensure compliance with federal standards. Lastly, HUD will require the City to submit the five-year Consolidated Plan outlining community development priorities and goals based on housing and economic assessments and available resources.

Avant-Garde, Inc. has administered the CDBG program for the last three (3) years and is at the end of their contract. In anticipation of the expiration of the current contract, the City initiated a formal request for proposals (RFP) on April 16, 2024, through PlanetBids. The City received two proposals from Avant-Garde, Inc. and Willdan Engineering.

Discussion:

Two competitive bids were received by consultants for CDBG administrative services.

Proposers were asked to break down cost proposals by year, for a total of three, oneyear terms.

Proposers were evaluated and ranked based on their proposal's responsiveness to the City’s needs, consultant experience, quality of work samples, references, and proposed cost. The evaluation factors from each proposer are summarized below:

Category Avant-Garde, Inc. Willdan Engineering
Responsiveness to City requirements (25%) 50 40
Experience (25%) 50 45
Qualifications (25%) 50 45
Cost (25%) 40 50
Total Points 190 180
After reviewing the qualifications of both proposers, City staff recommends entering a professional services agreement with Avant-Garde, Inc., for the following reasons:

CITY COUNCIL AGENDA REPORT – MEETING OF JUNE 11, 2024
APPROVE AN AGREEMENT WITH AVANT-GARDE, INC., FOR COMMUNITY

DEVELOPMENT BLOCK GRANT PROGRAM ADMINISTRATIVE SERVICES

1. The Scope of Services provided by Avant-Garde, Inc. exceeded the minimum requirements based on the RFP provided by the City as compared to the Willdan Engineering proposal.

2. Avant-Garde, Inc. is a certified Minority Business Enterprise (MBE) and Women-Owned Business Enterprise (WBE). This aligns with federal procurement guidelines that encourage the use of minority businesses, women’s business enterprises, and firms from labor surplus areas whenever possible (2 C.F.R. § 200.321).

3. They have adequate staff, including highly qualified and experienced CDBG administrators, to manage the program.

4. They have successfully implemented similar programs in cities such as Montebello, Bellflower, El Monte, and South Gate.

Avant-Garde, Inc., established in 2002, specializes in managing government funding and grants. The firm has the capacity to process basic applications and documentation to competitive project submissions. Their team is highly trained and experienced in assisting and advising public agencies on federal and state program requirements, as well as administering programs according to funding agency guidelines.

In addition, Avant-Garde, Inc., will provide comprehensive administration and overall management of the City’s CDBG-funded programs and projects. The firm is also expected to prepare the upcoming five-year Consolidated Plan. Furthermore, they will prepare the Action Plans and Consolidated Annual Performance Evaluation Reports (CAPER) on an annual basis. Compliance with all HUD regulations is required.

Conclusion:

Staff recommends that the City Council approve a professional services agreement with Avant-Garde, Inc. for administration of the City of Pico Rivera’s CDBG Program, authorize the City Manager to execute the agreement in a not-to-exceed amount of $126,900 for one year, with an option to execute extensions for up to two additional years, for a total not-to-exceed amount of $303,400 over a three-year period.

Steve Carmona
SC:AB:JG:EL:jj
Enclosure: 1) Professional Services Agreement
AGREEMENT NO. _______

PROFESSIONAL SERVICES AGREEMENT

BETWEEN THE CITY OF PICO RIVERA AND
AVANT-GARDE, INC.

1. IDENTIFICATION
THIS PROFESSIONAL SERVICES AGREEMENT (“Agreement”) is entered into by and between the City of Pico Rivera, a California municipal corporation (“City”) and ADVANCED AVANT-GARDE CORPORATION, a California Corporation, dba AvantGarde, Inc. (“Consultant”). City and Consultant are sometimes hereinafter individually referred to as a “Party” and collectively referred to as “Parties.”

2. RECITALS

2.1 City has determined that it requires professional services from a consultant to provide general administration of the Community Development Block Grant (CDBG) program.

2.2 Consultant represents that it is fully qualified to perform such professional services by virtue of its experience and the training, education and expertise of its principals and employees. Consultant further represents that it is willing to accept responsibility for performing such services in accordance with the terms and conditions set forth in this Agreement.

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

3. DEFINITIONS

3.1 “Scope of Services”: Such professional services as are set forth in the Consultant’s May 16, 2024, proposal to City attached hereto as Exhibit “A” and incorporated herein by this reference.

3.2 “Approved Fee Schedule”: Such compensation rates as are set forth in the Consultant’s May 16, 2024, proposal to City attached hereto as Exhibit “A.”

3.3 “Commencement Date”: July 1, 2024

3.4 “Expiration Date”: June 30, 2025

4. TERM
The term of this Agreement shall commence at 12:00 a.m. on the Commencement Date and shall expire at 11:59 p.m. on the Expiration Date unless extended by written agreement of the Parties or terminated in accordance with Section 22 below. The City Enclosure 1
14a
Professional Services Agreement
AVANT-GARDE, INC.

may, at its sole discretion, elect to renew the term for up to two additional one-year terms, for a maximum total of three years. The cost of service for years 2 and 3 will remain at $88,250 annually, as set forth in the Consultant’s May 16, 2024, proposal to City attached hereto as Exhibit “A.”

5. CONSULTANT’S SERVICES

5.1 Consultant shall perform the services identified in the Scope of Services. City shall have the right to request, in writing, changes in the Scope of Services. Any such changes mutually agreed upon by the Parties, and any corresponding increase or decrease in compensation, shall be incorporated by written amendment to this Agreement. In no event shall the total compensation and costs payable to Consultant under this Agreement exceed the sum of One Hundred Twenty-Six Thousand, Nine Hundred Dollars ($126,900) unless specifically approved in advance, in writing, by City.

5.2 Consultant shall perform all work to the highest professional standards of Consultant’s profession and in a manner reasonably satisfactory to City.

6. COMPENSATION

6.1 City agrees to compensate Consultant for the services provided under this Agreement, and Consultant agrees to accept in full satisfaction for such services, payment in accordance with the Approved Fee Schedule.

6.2 Consultant shall submit to City an invoice, on a monthly basis or less frequently, for the services performed pursuant to this Agreement. Each invoice shall itemize the services rendered during the billing period and the amount due. Within ten (10) business days of receipt of each invoice, City shall notify Consultant in writing of any disputed amounts included on the invoice. Within thirty (30) calendar days of receipt of each invoice, City shall pay all undisputed amounts included on the invoice. City shall not withhold applicable taxes or other authorized deductions from payments made to Consultant.

6.3 Payments for any services requested in writing by City and not included in the Scope of Services shall be made to Consultant by City on a time-and-materials basis using Consultant’s standard fee schedule. Fees for such additional services shall be paid within sixty (60) days of the date Consultant issues an invoice to City for such services.

7. BUSINESS LICENSE
Consultant shall obtain a City business license prior to commencing performance under this Agreement.

8. COMPLIANCE WITH LAWS
Professional Services Agreement
AVANT-GARDE, INC.

Consultant shall keep informed of State, Federal and Local laws, ordinances, codes and regulations that in any manner affect those employed by it or in any way affect the performance of its services pursuant to this Agreement. The Consultant shall at all times comply with such laws, ordinances, codes and regulations. Without limiting the generality of the foregoing, if Consultant is an out-of-state corporation or LLC, it must be qualified and registered to do business in the State of California pursuant to sections 2105 and 17708.02 of the California Corporations Code. The City, its officers and employees shall not be liable at law or in equity occasioned by failure of Consultant to comply with this Section.

9. CONFLICT OF INTEREST
Consultant covenants that it presently has no interest and shall not acquire any interest, direct or indirect, which may be affected by the services to be performed by Consultant under this Agreement, or which would conflict in any manner with the performance of its services hereunder. During the term of this Agreement, Consultant shall not perform any work for another person or entity for whom Consultant was not working at the Commencement Date if both: (i) such work would require Consultant to abstain from a decision under this Agreement pursuant to a conflict of interest statute; and (ii) City has not consented in writing prior to Consultant’s performance of such work.

10. PERSONNEL
Consultant represents that it has, or will secure at its own expense, all personnel required to perform the services identified in the Scope of Services. All such services shall be performed by Consultant or under its supervision, and all personnel engaged in the work shall be qualified to perform such services. Consultant reserves the right to determine the assignment of its own employees to the performance of Consultant’s services under this Agreement, but City reserves the right, for good cause, to require Consultant to exclude any employee from performing services on City’s premises. Ana Marie LeNoue, President, shall be Consultant’s project administrator and shall have direct responsibility for management of Consultant’s performance under this Agreement. No change shall be made in Consultant’s project administrator without City’s prior written consent.

11. OWNERSHIP OF WRITTEN PRODUCTS
All reports, documents or other written material (“written products”) developed by Consultant in the performance of this Agreement shall be and remain the property of City without restriction or limitation upon its use or dissemination by City. Consultant may take and retain copies of such written products as desired, but no such written products shall be the subject of a copyright application by Consultant. If any state, federal, or local law Professional Services Agreement
AVANT-GARDE, INC.

requires mandatory copyright protection for Consultant’s work product, City shall comply with such laws to the extent feasible.

12. INDEPENDENT CONSULTANT

12.1 Consultant is, and shall at all times remain as to City, a wholly independent consultant. Consultant shall have no power to incur any debt, obligation, or liability on behalf of City or otherwise to act on behalf of City as an agent. Neither City nor any of its officers, employees or agents shall have control over the conduct of Consultant or any of Consultant’s employees, except as set forth in this Agreement. Consultant shall not at any time represent that it is, or that any of its agents or employees are, in any manner employees of City.

12.2 The Parties further acknowledge and agree that nothing in this Agreement shall create or be construed to create a partnership, joint venture, employment relationship, joint-employer relationship, or any other relationship between Consultant or Consultant’s employees except as set forth in this Agreement.

12.3 City shall have no direct or indirect control over Consultant’s employees or sub-consultants with respect to wages, hours, and working conditions. In addition, City shall not deduct from the Compensation paid to Consultant any sums required for Social Security, withholding taxes, FICA, state disability insurance or any other federal, state or local tax or charge which may or may not be in effect or hereinafter enacted or required as a charge or withholding on the compensation paid to Consultant, Consultant’s employees or subconsultants. City shall have no responsibility to provide Consultant, its employees or subconsultants with workers’ compensation insurance or any other insurance.

13. CONFIDENTIALITY
All data, documents, discussion, or other information developed or received by Consultant or provided for performance of this Agreement are deemed confidential and shall not be disclosed by Consultant without prior written consent by City. City shall grant such consent if disclosure is legally required. Upon request, all City data and any copies thereof shall be returned to City upon the termination or expiration of this Agreement.

14. NON-LIABILITY OF CITY OFFICIALS AND EMPLOYEES
No official or employee of the City shall be personally liable to Consultant in the event of any default or breach by City, or for any amount which may become due to Consultant.

15. INDEMNIFICATION
Professional Services Agreement
AVANT-GARDE, INC.

15.1 The Parties agree that City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers should, to the extent permitted by law, be fully protected from any loss, injury, damage, claim, lawsuit, cost, expense, attorneys’ fees, litigation costs, or any other cost arising out of or in any way related to the performance of this Agreement. Accordingly, the provisions of this indemnity provision are intended by the Parties to be interpreted and construed to provide the fullest protection possible under the law to City. Consultant acknowledges that City would not enter into this Agreement in the absence of Consultant’s commitment to indemnify and protect City as set forth herein. Notwithstanding the foregoing, to the extent Consultant's services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.

15.2 To the full extent permitted by law, Consultant shall indemnify, hold harmless and defend City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers from and against any and all claims, demands, lawsuits, causes of action, losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from or arising out of any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant or any of its officers, employees, servants, agents, or subconsultants in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of City’s choice and expert witness fees and consultant fees. Notwithstanding the foregoing, to the extent Consultant's Services are subject to Civil Code Section 2782.8, the above indemnity shall be limited, to the extent required by Civil Code Section 2782.8, to claims that arise out of, pertain to, or relate to the negligence, recklessness, or willful misconduct of the Consultant.

15.3 City shall have the right to offset against the amount of any compensation due Consultant under this Agreement any amount due City from Consultant as a result of Consultant’s failure to pay City promptly any indemnification arising under this Section 15 or related to Consultant’s failure to either: (i) pay taxes on amounts received pursuant to this Agreement or (ii) comply with applicable workers’ compensation laws.

15.4 The obligations of Consultant under this Section 15 will not be limited by the provisions of any workers’ compensation act or similar act. Consultant expressly waives its statutory immunity under such statutes or laws as to City, its officers, agents, employees and volunteers.

15.5 Consultant agrees to obtain executed indemnity agreements with provisions identical to those set forth here in this Section 15 from each and every subconsultant or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. In the event Consultant fails to obtain such indemnity Professional Services Agreement
AVANT-GARDE, INC.

obligations from others as required herein, Consultant agrees to be fully responsible and indemnify, hold harmless and defend City, its officers, agents, elected and appointed officials, employees, affiliated public agencies and volunteers from and against any and all claims, demands, lawsuits, causes of action, losses, costs or expenses for any damage due to death or injury to any person and injury to any property resulting from or arising out of any alleged intentional, reckless, negligent, or otherwise wrongful acts, errors or omissions of Consultant’s subconsultants or any other person or entity involved by, for, with or on behalf of Consultant in the performance of this Agreement. Such costs and expenses shall include reasonable attorneys’ fees incurred by counsel of City’s choice and expert witness fees and consultant fees.

15.6 City does not, and shall not, waive any rights that it may possess against Consultant because of the acceptance by City, or the deposit with City, of any insurance policy or certificate required pursuant to this Agreement. This hold harmless and indemnification provision shall apply regardless of whether or not any insurance policies are determined to be applicable to the claim, demand, damage, liability, loss, cost or expense.

15.7 PERS ELIGIBILITY INDEMNITY. In the event that Consultant or any employee, agent, or subconsultant of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or the California Public Employees Retirement System (PERS) to be eligible for enrollment in PERS as an employee of the City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for PERS benefits on behalf of Consultant or its employees, agents, or subconsultants, as well as for the payment of any penalties and interest on such contributions, which would otherwise be the responsibility of City.

Notwithstanding any other agency, state or federal policy, rule, regulation, law or ordinance to the contrary, Consultant and any of its employees, agents, and subconsultants providing service under this Agreement shall not qualify for or become entitled to, and hereby agree to waive any claims to, any compensation, benefit, or any incident of employment by City, including but not limited to eligibility to enroll in PERS as an employee of City and entitlement to any contribution to be paid by City for employer contribution and/or employee contributions for PERS benefits.

16. INSURANCE

16.1 During the term of this Agreement, Consultant shall carry, maintain, and keep in full force and effect insurance against claims for death or injuries to persons or damages to property that may arise from or in connection with Consultant’s performance of this Agreement. Such insurance shall be of the types and in the amounts as set forth below:

Professional Services Agreement
AVANT-GARDE, INC.

16.1.1 Comprehensive general liability, and Umbrella or Excess Liability Insurance covering all operations by or on behalf of Consultant providing insurance for bodily injury liability and property damage liability for the following and including coverage for:

16.1.1.1 Premises, operations, and mobile equipment

16.1.1.2 Products and completed operations

16.1.1.3 Broad form property damage (including completed operations)

16.1.1.4 Explosion, collapse, and underground hazards

16.1.1.5 Personal Injury

16.1.1.6 Contractual liability
in the amount of One Million Dollars ($1,000,000) per occurrence combined single limit; Two Million Dollars ($2,000,000) aggregate for products/completed operation; Two Million Dollars ($2,000,000) general aggregate (General aggregate must apply separately to Consultant’s work under this Agreement.); and Five Million Dollars ($5,000,000) umbrella or excess liability.

16.1.2 Automobile Liability Insurance for owned, hired and non-owned vehicles utilized by Consultant, its employees or subconsultants, in the amount of One Million Dollars ($1,000,000) per accident for bodily injury and property damage.

16.1.3 Worker’s Compensation Insurance as required by the laws of the State of California, with Statutory Limits, and Employer's Liability Insurance with limit of no less than One Million Dollars ($1,000,000) per accident for bodily injury or disease.

16.1.4 Professional Liability Insurance against errors and omissions in the performance of the work under this Agreement with coverage limits of not less than One Million Dollars ($1,000,000) per occurrence of claim/ Two Million Dollars ($2,000,000) in the aggregate.

16.2 Consultant shall require each of its subconsultants, if any, to maintain insurance coverage that meets all of the requirements of this Agreement.

16.3 The policy or policies required by this Agreement shall be issued by an insurer admitted in the State of California and with a rating of at least A:VII in the latest edition of Best’s Insurance Guide.

Professional Services Agreement
AVANT-GARDE, INC.

16.4 Consultant agrees that if it does not keep the aforesaid insurance in full force and effect City may either: (i) immediately terminate this Agreement; or (ii) take out the necessary insurance and pay, at Consultant’s expense, the premium thereon.

16.5 At all times during the term of this Agreement, Consultant shall maintain on file with City’s Risk Manager a certificate or certificates of insurance showing that the aforesaid policies are in effect in the required amounts and, for the general liability and automobile liability policies, naming the City as an additional insured. Consultant shall, prior to commencement of work under this Agreement, file with City’s Risk Manager such certificate(s).

16.6 Consultant shall provide proof that policies of insurance required herein expiring during the term of this Agreement have been renewed or replaced with other policies providing at least the same coverage. Consultant shall provide such proof to City at least two weeks prior to the expiration of the coverages.

16.7 The general liability and automobile policies of insurance required by this Agreement shall contain an endorsement naming City, its officers, employees, agents and volunteers as additional insureds. All of the policies required under this Agreement shall contain an endorsement providing that the policies cannot be canceled or reduced except on thirty days’ prior written notice to City. Consultant agrees to require its insurer to modify the certificates of insurance to delete any exculpatory wording stating that failure of the insurer to mail written notice of cancellation imposes no obligation, and to delete the word “endeavor” with regard to any notice provisions.

16.8 The general liability and automobile policies of insurance provided by Consultant shall be primary to any coverage available to City. Any insurance or selfinsurance maintained by City, its officers, employees, agents or volunteers, shall be in excess of Consultant’s insurance and shall not contribute with it.

16.9 All insurance coverage provided pursuant to this Agreement shall not prohibit Consultant, and Consultant’s employees, agents or subconsultants, from waiving the right of subrogation prior to a loss. Consultant hereby waives all rights of subrogation against the City.

16.10 Any deductibles or self-insured retentions must be declared to and approved by the City. At the option of City, Consultant shall either reduce or eliminate the deductibles or self-insured retentions with respect to City, or Consultant shall procure a bond guaranteeing payment of losses and expenses.

16.11 Procurement of insurance by Consultant shall not be construed as a limitation of Consultant’s liability or as full performance of Consultant’s duties to indemnify, hold harmless and defend under Section 15 of this Agreement.

16.12 If Consultant maintains broader coverage and/or higher limits than the minimums shown above, the City requires and shall be entitled to the broader coverage Professional Services Agreement
AVANT-GARDE, INC.

and/or the higher limits maintained by the Consultant. Any available insurance proceeds in excess of the specified minimum limits of insurance and coverage shall be available to the City.

17. MUTUAL COOPERATION

17.1 City shall provide Consultant with all pertinent data, documents and other requested information as is reasonably available to City for the proper performance of Consultant’s services under this Agreement.

17.2 In the event any claim or action is brought against City relating to Consultant’s performance in connection with this Agreement, Consultant shall render any reasonable assistance that City may require.

18. RECORDS AND INSPECTIONS
Consultant shall maintain full and accurate records with respect to all matters covered under this Agreement for a period of three years after the expiration or termination of this Agreement. City shall have the right to access and examine such records, without charge, during normal business hours. City shall further have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.

19. PERMITS AND APPROVALS
Consultant shall obtain, at its sole cost and expense, all permits and regulatory approvals necessary in the performance of this Agreement. This includes, but shall not be limited to, encroachment permits and building and safety permits and inspections.

20. NOTICES
Any notices, bills, invoices, or reports required by this Agreement shall be deemed received on: (i) the day of delivery if delivered by hand, facsimile, email, or overnight courier service during Consultant’s and City’s regular business hours; or (ii) on the third business day following deposit in the United States mail if delivered by mail, postage prepaid, to the addresses listed below (or to such other addresses as the Parties may, from time to time, designate in writing).

If to City: If to Consultant:

Julia Gonzalez, Deputy Director
City of Pico Rivera
6615 Passons Blvd
Pico Rivera, California 90660-1016
(562) 801-4447
Ana Marie LeNoue, President
Avant-Garde, Inc.
807 S. Lemon Ave
Diamond Bar, CA 91789
(909) 895-7146
Professional Services Agreement
AVANT-GARDE, INC.

[email protected] [email protected]

21. SURVIVING COVENANTS
The Parties agree that the covenants contained in Sections 13, 15 and Paragraph

17.2 of Section 17, of this Agreement shall survive the expiration or termination of this Agreement.

22. TERMINATION

22.1. City shall have the right to terminate this Agreement for any reason on five (5) calendar days’ written notice to Consultant. Consultant shall have the right to terminate this Agreement for any reason on sixty (60) calendar days’ written notice to City. The effective date of termination shall be upon the date specified in the notice of termination. Consultant agrees that in the event of such termination, City’s obligation to pay Consultant shall be limited to payment only for those services satisfactorily rendered, as solely determined by the City, prior to the effective date of termination. Consultant agrees to cease all work under this Agreement on or before the effective date of any notice of termination. All City data, documents, objects, materials or other tangible things shall be returned to City upon the termination or expiration of this Agreement.

22.2 If City terminates this Agreement due to no fault or failure of performance by Consultant, then Consultant shall be paid based on the work satisfactorily performed, as solely determined by the City, at the time of termination. In no event shall Consultant be entitled to receive more than the amount that would be paid to Consultant for the full performance of the services required by this Agreement.

23. ASSIGNMENT
Consultant shall not delegate, transfer, subcontract or assign its duties or rights hereunder, either in whole or in part, without City’s prior written consent, and any attempt to do so shall be void and of no effect. City shall not be obligated or liable under this Agreement to any Party other than Consultant.

24. NON-DISCRIMINATION AND EQUAL EMPLOYMENT OPPORTUNITY

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

Professional Services Agreement
AVANT-GARDE, INC.

24.2 Consultant will, in all solicitations or advertisements for employees placed by or on behalf of Consultant state either that it is an equal opportunity employer or that all qualified applicants will receive consideration for employment without regard to race, color, creed, religion, sex, marital status, national origin, ancestry, age, physical or mental handicap, medical condition or sexual orientation.

24.3 Consultant will cause the foregoing provisions to be inserted in all subcontracts for any work covered by this Agreement except contracts or subcontracts for standard commercial supplies or raw materials.

25. WARRANTIES

25.1 Each Party has received independent legal advice from its attorneys with respect to the advisability of entering into and executing this Agreement, or been provided with an opportunity to receive independent legal advice and has freely and voluntarily waived and relinquished the right to do so. Each Party who has not obtained independent counsel acknowledges that the failure to have independent legal counsel will not excuse such Party’s failure to perform under this Agreement.

25.2 In executing this Agreement, each Party has carefully read this Agreement, knows the contents thereof, and has relied solely on the statements expressly set forth herein and has placed no reliance whatsoever on any statement, representation, or promise of any other party, or any other person or entity, not expressly set forth herein, nor upon the failure of any other party or any other person or entity to make any statement, representation or disclosure of any matter whatsoever.

25.3 It is agreed that each Party has the full right and authority to enter into this Agreement, and that the person executing this Agreement on behalf of either Party has the full right and authority to fully commit and bind such Party to the provisions of this Agreement.

26. CAPTIONS

26.1 The captions appearing at the commencement of the sections hereof, and in any paragraph thereof, are descriptive only and for convenience in reference to this Agreement. Should there be any conflict between such heading, and the section or paragraph thereof at the head of which it appears, the section or paragraph thereof, as the case may be, and not such heading, shall control and govern in the construction of this Agreement.

26.2 Masculine or feminine pronouns shall be substituted for the neuter form and vice versa, and the plural shall be substituted for the singular form and vice versa, in any place or places herein in which the context requires such substitution(s).

Professional Services Agreement
AVANT-GARDE, INC.

27. NON-WAIVER

27.1 The waiver by City or Consultant of any breach of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition or of any subsequent breach of the same or any other term, covenant or condition herein contained. In no event shall the making by City of any payment to Consultant constitute or be construed as a waiver by City of any breach of covenant, or any default which may then exist on the part of Consultant, and the making of any such payment by City shall in no way impair or prejudice any right or remedy available to City with regard to such breach or default. No term, covenant or condition of this Agreement shall be deemed to have been waived by City or Consultant unless in writing.

27.2 Each right, power and remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise shall be cumulative and shall be in addition to every other right, power, or remedy provided for herein or now or hereafter existing at law, in equity, by statute, or otherwise. The exercise, the commencement of the exercise, or the forbearance of the exercise by any Party of any one or more of such rights, powers or remedies shall not preclude the simultaneous or later exercise by such Party of any of all of such other rights, powers or remedies.

27.3 Consultant shall not be liable for any failure to perform if Consultant presents acceptable evidence, in City’s sole judgment, that such failure was due to causes beyond the control and without the fault or negligence of Consultant.

28. COURT COSTS AND ATTORNEY FEES
In the event legal action shall be necessary to enforce any term, covenant or condition herein contained, the Party prevailing in such action, whether reduced to judgment or not, shall be entitled to its reasonable court costs, including accountants’ fees and expert witness fees, if any, and attorneys’ fees expended in such action. The venue for any litigation shall be Los Angeles County, California.

29. SEVERABILITY
If any term or provision of this Agreement or the application thereof to any person or circumstance shall, to any extent, be invalid or unenforceable, then such term or provision shall be amended to, and solely to, the extent necessary to cure such invalidity or unenforceability, and in its amended form shall be enforceable. In such event, the remainder of this Agreement, or the application of such term or provision to persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby, and each term and provision of this Agreement shall be valid and be enforced to the fullest extent permitted by law.

Professional Services Agreement
AVANT-GARDE, INC.

30. GOVERNING LAW
This Agreement shall be governed and construed in accordance with the laws of the State of California.

31. COUNTERPARTS
This Agreement may be signed in any one or more counterparts all of which taken together shall be but one and the same Agreement. Any signed copy of this Agreement or of any other document or agreement referred to herein, or copy or counterpart thereof, delivered by facsimile or email transmission, shall for all purposes be treated as if it were delivered containing an original manual signature of the Party whose signature appears in the facsimile or email and shall be binding upon such Party in the same manner as though an originally signed copy had been delivered.

32. ENTIRE AGREEMENT
All documents referenced as exhibits in this Agreement are hereby incorporated in this Agreement. In the event of any material discrepancy between the express provisions of this Agreement and the provisions of any document incorporated herein by reference, the provisions of this Agreement shall prevail. This instrument contains the entire Agreement between City and Consultant with respect to the transactions contemplated herein. No other prior oral or written agreements are binding upon the Parties.

Amendments hereto or deviations herefrom shall be effective and binding only if made in writing and executed by City and Consultant.
[Signatures on the following page]
Professional Services Agreement
AVANT-GARDE, INC.

TO EFFECTUATE THIS AGREEMENT, the Parties have caused their duly authorized representatives to execute this Agreement on the dates set forth below. “CITY” “CONSULTANT”
CITY OF PICO RIVERA AVANT-GARDE, INC.
______________________________ ___________________________________ Steve Carmona, City Manager Ana Marie LeNoue, President Dated: ________________________ Dated: _____________________________ ATTEST: APPROVED AS TO FORM:
___________________________ ___________________________________ Cynthia Ayala, CMC, City Clerk Arnold M. Alvarez-Glasman, City Attorney Professional Services Agreement
AVANT-GARDE, INC.

EXHIBIT A

SCOPE OF SERVICES
[PROPOSAL COPY TO BE ATTACHED]
City of Pico Rivera
Professional Services to Administer the Community
Development Block Grant (CDBG) Program
May 16, 2024

EXHIBIT A

1 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Table of contents
Section 1. Firm Qualifications..................................................................................................................................2 Section 2. Program Team & Management.............................................................................................5 Section 3. Prior Experience..................................................................................................................................... 25 Section 4. General Scope of work ............................................................................................................. 35 Section 5. Approach to Requested Services................................................................................. 37 Section 6. Schedule.............................................................................................................................................................. 45 Section 7. References ........................................................................................................................................................47 Section 8. Cost Proposal ............................................................................................................................................ 48 Attachments:

Exhibit B – Certification of Nondiscrimination
Exhibit c – Non-Collusion Affidavit
2 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Section 1. Firm Qualifications
AVANT-GARDE was incorporated in September 2002 and our corporate office from which services will be provided is located at 807 S. Lemon Avenue, Diamond Bar, CA 91789.

Advanced AVANT-GARDE Corporation is a 100% woman-owned California Corporation headed by Southern California natives Ana Marie LeNoue and Lissette Montoya who serve as the firm’s officers and principals. They can be reached by phone at (909) 895- 7146 or by email at [email protected] and [email protected]. Furthermore, AVANT-GARDE is a certified minority business enterprise, women business enterprise, disadvantaged business enterprise and small business enterprise (MBE, WBE, DBE, SBE).

Our team of 22 has built a strong reputation for providing innovative and successful solutions for a number of public agencies. We have a successful track record in your City and several municipalities, including the Cities of El Monte, Montebello, Bellflower, Moreno Valley, Rosemead, South Gate, Cudahy, Rialto, Burbank, Palm Springs, Pasadena, Industry, La Mirada, Alhambra, Hawaiian Gardens, South El Monte, Lynwood, San Gabriel, Monterey Park, Commerce, La Puente, Bell Gardens, Norwalk, Huntington Beach, Ventura, Ojai, Temple City, Maywood, Perris, LADOT, LADPW, and Los Angeles County METRO. We offer the talents of some of the most skilled compliance managers, grant writers, fund administrators and program managers in the industry, providing clients with innovative and cost-effective solutions on a wide variety of projects.

Our years of practice have resulted in a solid foundation of experience and technical expertise and a dedication to integrity, excellence, and quality. We are proud of our strong reputation in meeting aggressive schedules and our ability to multi-task to provide our clients specialized attention and service. Services offered by our firm include:
• Grant Writing and Administration
• Program Management
• Funding Administration
• Compliance Management including Labor Compliance
• Construction Coordination (Bid development, analysis, etc.) • Community Outreach
AVANT-GARDE specializes in government funding and grant sources with requirements ranging from basic applications and documentation to competitive project submittals.

Our team has been instrumental in securing and managing millions of dollars for Southern California projects. We assist our clients in identifying federal and state fund allocation balances, assist in determining eligible projects, provide advisement of program requirements and are available to prepare and administer the program as required by the funding agencies. Additionally, our team provides administrative responsibilities such as assistance with the preparation and monitoring of operating budgets and Capital Improvement Program budget. AVANT-GARDE analyzes the agency’s needs and prepares, recommends and administers long-and-short range programs consistent with the economic capabilities of the agency, including information vital to the preparation of the annual budget for the agency.

AVANT-GARDE has had the privilege of working with the City of Pico Rivera over the years.

During this time, our Team has worked closely with City staff in a variety of capacities including providing State and Federal funding compliance services on public works 3 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 capital projects, assisting in the preparation of grant applications, and assisting with CDBG administration. Our familiarity and experience with the City of Pico Rivera establishes our solid working knowledge of the community, processes, and institutions which make us uniquely qualified to assist the City and serve the community.

As part of our work, AVANT-GARDE has established infrastructure systems to maintain compliance and prevent future findings and helped prepare the City’s HOME and CDBG policies and procedures for City Council adoption. Our services have included guidance to meet program and financial compliance requirements and local financial procedural support. We are well versed in the City’s HUD IDIS portal and are able to monitor it regularly to ensure data and reporting accuracy. AVANT-GARDE serves as the liaison with the City’s HUD representative to seek clarification, guidance, and provide the City with clear action steps.

AVANT-GARDE assisted in developing the City’s 2020-2025 Consolidated Plan, which included developing notices, community outreach via meetings and surveys, data analysis, and assisting staff in preparing staff reports and participation at City Council meetings. AVANT-GARDE worked with City staff to develop strategic goals to address City needs and activities to align with and meet these goals. Additionally, AVANT-GARDE assisted in preparing the City’s Analysis to Fair Housing Choice, a document that reviews policies and practices in the community that affect availability and accessibility of housing and housing conditions in the community, for submission to HUD.

As a part of the development of the FY 2020-2021, FY 2021-2022, FY 2022-2024, and FY 2024-2025 Annual Action Plans, AVANT-GARDE assisted the City in programming CDBG and CDBG-CV funds. AVANT-GARDE recently assisted the City with onboarding new subrecipients and developing new activities and programs to meet the City’s goals established in the Annual Action Plan and Consolidated Plan, and to expend the funds in a timely manner to remain in good standing with HUD. Our staff consistently and successfully worked with City subrecipients to monitor their work and files to ensure that they are compliant with all City and HUD CDBG guidelines, providing technical assistance when needed. Our firm is currently providing the services outlined in this RFP to the City.

AVANT-GARDE has also provided the City with program administration support, which has included building out new programs, developing program documents, establishing guidelines and protocols. Additionally, AVANT-GARDE assisted with the launch and underwriting of the City’s Small Business Grant Program, which provided grants of $10,000 to local CDBG eligible businesses.

AVANT-GARDE is currently providing the services requested in this RFP to several cities in Southern California, including Montebello, Bellflower, Lynwood, El Monte, Cudahy, South Gate, Pico Rivera, and Moreno Valley. Most agencies we serve have a long-standing relationship with us and trust our Team to provide these services on upcoming projects.

We have extensive experience in serving both major urban cities and small suburban municipalities with our success achieved through close attention to detail, emphasis on meeting the particular needs of each client and prompt delivery of products, studies and services.

To best round out our services in response to this RFP, we have partnered with Civitas, LLC.

Civitas specializes in housing and community development. Their knowledge and 4 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 experience with HUD programs, social science research, economic development, and community revitalization puts them in a unique position to assist a consortium of public and private entities in better meeting their missions. They bring a passion for public service to a variety of areas including affordable housing development, grant writing and administration, program evaluation, research design and implementation, social and economic impact analysis, survey research, GIS mapping / spatial analysis, and project management. Formally organized in 2009, Civitas consultants have decades of combined experience in the community development field.

Civitas has successfully completed or assisted with the completion of Consolidated Plans and Analyses of Impediments for multiple communities across the country. They recently completed similar work in South Carolina, California, Florida, Texas, Tennessee, Utah, Colorado, Illinois, Michigan and Pennsylvania. AVANT-GARDE and Civitas have collaborated together to prepare and complete several Consolidated Plans and other HUD documents.

The Civitas team are experts in every aspect of HUD programs and regulations, and have conducted housing research and managed housing programs for grantees across the nation. Furthermore, they regularly produce the full spectrum of reporting and planning documents required by HUD for clients: Consolidated Plans, Assessments of Fair Housing (previously Analysis of Impediments), Annual Action Plans, Consolidated Annual Performance Evaluation Reports (CAPERs), Environmental Review Records, Citizen Participation Plans, etc. In addition to producing HUD documents and studies, Civitas has successfully provided HUD technical assistance and staff training to grantees and subrecipients across the country. They are also experts in the myriad of housing finance sources including HOME, CDBG, and LIHTC, among others.

Civitas has several subcontracts with organizations contracted directly with HUD to provide national technical assistance services to HUD grantees. They provide expertise, training, and problem solving to HUD grantees across the nation. They are experts on the Consildated Planning process, AI's and AFH’s, Fair Housing, IDIS, DRGR, CDBG, HOME, Environmental Review and a variety of other HUD programs and cross cutting regulations – and regularly provide staff training and technical assistance to grantees on these many subjects.

Rules of Proposal
The only person, persons, company or parties interested in the proposal as principals are named herein. This proposal is made without collusion with any other person, persons, company, or parties submitting a proposal. This proposal is in all respects fair and in good faith without collusion or fraud. AVANT-GARDE has full authority to enter into a Professional Services Agreement substantially in the form attached as Exhibit D of the RFP. 5 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Section 2. Program Team & Management
To provide exceptional services to the City of Pico Rivera, we have compiled a highly qualified and experienced team. Firm Principal, Ana Marie LeNoue, will serve as the Program Director or key person whom the City will have day-to-day interaction with and who will be the sole point of contact. Ms. LeNoue will oversee all assigned staff and ensure successful administration of program and document development. Our Program Director will be supported by our in-house Program Director-Lissette Montoya, Program ManagerMelissa Aguilar, Program Manager–Liza Lopez, Senior Program Coordinator-Laura Santoyo, Senior Program Coordinator- Norma Lopez, Program Coordinator-Adriana Robledo, Program Coordinator-Ashley Sanchez, and Labor Compliance Program Coordinator–Summer Mann.

AVANT-GARDE understands the importance of maintaining professionalism while delivering exceptional customer service to all parties involved, including administrators, city staff, residents, businesses, various agency representatives, and elected officials. The proposed Team has outstanding communication and work skills. Ms. Montoya and Ms.

LeNoue have served as municipal employees prior to joining the firm. As such, AVANTGARDE has a unique understanding and respect for the “City Hall culture” and has the ability to work in a team environment within a public atmosphere that is demanding and fast paced. Furthermore, AVANT-GARDE has had the pleasure of serving a variety of communities and multi-cultural environments with great success. To that note, Ms.

Montoya, Ms. Aguilar, Ms. Santoyo, Ms. Robledo, Ms. Sanchez, and Ms. Lopez are bilingual in English and Spanish. Our years of success are clearly dependent on our interpersonal skills and the ability to respectfully, clearly and concisely communicate both orally and in writing.

AVANT-GARDE commits to the best of its ability that the Program Director or project managers shall remain in place for the duration of the development and completion of the project.
6 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Melissa Aguilar
Program Manager
Ashley Sanchez
Program Coordinator
Organizational Chart
City of Pico Rivera
Ana Marie LeNoue Civitas, LLC
Principal/Program Director Subconsultant

Lissette Montoya
Program Director

Utilizing the expertise of our team, AVANT-GARDE will assist as follows:

Ana Marie LeNoue – Oversee the project, team, and all activities; provide direct contact with the City; address HUD findings and/or issues with the CAPER and any other related correspondence with HUD.

Lissette Montoya – Assist in the oversight of the project, team, and all activities as needed; provide fiscal management oversite; coordinate with Finance to address timeliness issues and perform drawdowns;.

Civitas, LLC – Prepare the 5-Year Consolidated Plan and Analysis of Impediments.

Program Managers – Manage the general CDBG program administration activities and coordinate efforts to prepare the Action Plan, CAPER, ConPlan, and NOFA; assist with the City’s IDIS database including activity set-up, clearing flags, and updating accomplishments and beneficiary information; manage reporting.

Program Coordinators – Oversee data collections; prepare environmental reports and enter in HEROS; conduct public services monitoring, site visits, evaluations, file management, and reimbursement review; monitor subrecipients to ensure compliance with HUD regulations; conduct labor compliance activities.

Laura Santoyo
Sr. Program Coordinator
Summer Mann
Labor Compliance
Program Coordinator
Liza Lopez
Program Manager
Adriana Robledo
Program Coordinator
Norma Lopez
Sr. Program Coordinator
7 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Ms. LeNoue has over 33 years of experience in municipal services and has been with AVANT-GARDE since 2006. She is the President and C.E.O. of AVANT-GARDE. Ms. LeNoue is capable of overseeing the CDBG public services program, identifying and implementing appropriate outreach efforts for the various elements of the Housing Program and assisting with the development of administrative deliverables such as the program evaluation report, required staff and agenda reports, as well as other duties as assigned.

Ms. LeNoue established the company’s foundation in municipal services based on her extensive program management experience that includes 20 years as a municipal employee managing various capital projects and programs. She presently directs the company’s Community Outreach program and CDBG Sub-Recipient services.

Ms. LeNoue is a versatile, dynamic, results-oriented leader with a strong track record of performance in high-paced and uniquely challenging organizations. She utilizes keen analysis, insights and team approach to drive organizational improvements and
implementation of sound practices. Ms. LeNoue has superior interpersonal skills, capable of resolving multiple and complex issues and motivating staff to peak performance. She has an excellent understanding of the political culture and extensive administrative, operational, fiscal and program management experience.

RELEVANT EXPERIENCE
Currently a member of the CDBG Management Team responsible for the Cities of Montebello, Lynwood, Pico Rivera, South Gate, El Monte, Rialto, Moreno Valley, and Bellflower Public Services portion of the program inclusive of managing the sub-recipients, program marketing and facilitating presentations for various portions of their HUD programs including Housing Rehabilitation Program,
Commercial Façade, updating policies and procedures, and providing coordination between HUD and City staff. Coordinates project activities for cities’ CDBG programs. Monitors CDBG-funded projects, activities, and sub-recipients to ensure grant performance and compliance are met. Assisted the City of Montebello to reach HUD compliance by overcoming numerous findings received in previous program fiscal years. In 2020 she assisted Montebello, Pico Rivera, South Gate, El Monte, Burbank, and Bellflower with the development and adoption of Consolidated Plans, Analysis of Impediments, and CPPs. She has processed CDBG and CDBG-CV Years of Experience:
33+ years
Education:

B.S. Business
Management,
University of Phoenix
Ana Marie LeNoue
Principal / Program Director
8 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Substantial Amendments, Annual Action Plans, and CAPERs which included all related community outreach and coordination with City staff and community stakeholders. She is currently assisting with the program implementation of CDBG-funded COVID response
activities including City-run Business Assistance Grants, Emergency Rental and Utility Assistance, and Food Insecurity programs. 9 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Ms. Montoya has more than 22 years of comprehensive expertise in project management and analysis, funding management, grant administration, and community outreach programs. She is experienced in issues impacting City governments and contract administration. Ms. Montoya is the Vice-President and CFO of AVANT-GARDE. She has experience in identifying federal and state fund allocation balances, programming funds, and administers long-and-short range programs consistent with the economic capabilities of the City. Ms. Montoya directs the Program Management team to ensure that projects are developed in accordance with policy and procedural requirements, assists in determining eligible projects for various funding sources, and manages development and capital improvement
programs/projects from conception to completion. Ms. Montoya has assisted various agencies in performing a variety of analyses and studies to identify State and Federal funding options; performed time-critical and confidential studies related to fiscal and administrative requirements of grant programs; assisted in the grants solicitation process; planned and coordinated the implementation of awarded grants to ensure that the City was in compliance with applicable laws and regulations, and monitored and audited grant expenses. Under her direction, our team has successfully monitored federal and state funding for municipal agencies throughout Southern California and written grants to secure over $532.4 million in funding for government agencies.

RELEVANT EXPERIENCE
Ms. Montoya has worked with several municipalities under contract to assist with managing HUD and HCD funded programs: CDBG, CDBG-CV, HOME, ESG, ESG-CV and NSP programs. Ms. Montoya has experience in facilitating rental assistance programs, housing rehabilitation projects, and strategic planning to ensure that programs/projects are meeting National Objectives and implement in accordance with the regulations established by each program.

She serves as project liaison with HUD/LACDC and has participated in audits with HUD and is well versed with the requirements set forth by HUD. This includes reviewing expenditure reports and commitment reports for programmed activities and administration of IDIS. She has prepared Action Plans, and CAPERs to meet the goal of the Consolidated Plan and assisted with the public hearing process for amendments. She has provided oversight for
development of sub-recipient agreements as well as monitoring for Community Housing Development Organizations (CHDO)
Years of Experience:
22+ years
Education:

Master of Business
Administration, California
State Polytechnic
University Pomona
B.S. Business
Management,
California State
Polytechnic University
Pomona
A.A. General Studies,
Mount San Antonio
College
Professional Affiliations:

National Women Political
Caucus – LA Metro
National Association of
Professional Women
Lissette Montoya
Principal / Program Director
10 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 qualifications and implementation of Capital Improvements programs including Section 3 monitoring and Davis Bacon Compliance. Relevant City Experience includes: Cudahy, Rialto, Pico Rivera, Lynwood, Bellflower, Moreno Valley, Montebello, El Monte, Temple City, Bell Gardens, La Mirada, Perris, South Gate, Bellflower, Palm Springs, Cathedral City, and Pasadena. 11 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Ms. Melissa Aguilar has over 13 years of experience in Federal and local programs and has been with AVANT-GARDE since 2020. Ms.

Aguilar has extensive experience in the non-profit sector with a focus on youth workforce development programs. Her duties have included program development, implementation, management, data validation, subrecipient management, staff management, and compliance. Ms. Aguilar’s role in AVANT-GARDE includes project management related to Capital Improvement Projects (CIP), Community Development Block Grant (CDBG) and HOME funded housing rehabilitation programs. Ms. Aguilar’s role in this program will include overall program management; monitoring of files, reports, and important dates; and assisting an as-needed support basis.

RELEVANT EXPERIENCE
City of Pico Rivera
Assists with the preparation of the Annual Action Plan, CAPER, ConPlan and other City and HUD-required reports for submission.

Monitors CDBG and CDBG-CV funded projects for program
performance, budget, and compliance. Assists with compliance oversight, subrecipient management, and technical assistance.

City of South Gate
Assists with the preparation of the Annual Action Plan, CAPER, ConPlan and other City and HUD-required reports for submission.

Monitors CDBG and CDBG-CV funded projects for program
performance, budget, and compliance management. Led build out of programs such as rental assistance and building assistance, which included creating program documents like checklists and applications; subrecipient training, management, technical assistance, and compliance oversight.

City of Cudahy
Coordinates project activities for the City’s CDBG and CDBG-CV programs. Monitors CDBG-funded projects, activities, and subrecipients to ensure grant performance and compliance are met.

Prepares and submits necessary reporting into the CDBG portal.

Assists with the preparation of City and HUD-required reports for submission. Develop and implement City-ran Emergency Rental Assistance program, which includes creating program policies and procedures; creating trackers; program application and checklist; quality review of applications before submitting to be processed; Years of Experience
13+ years
Education
MLIS Candidate,
San Jose State University,
CA
B.A. English,
Scripps College,
Claremont, CA
Melissa Aguilar
Program Manager
12 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 regular staff check ins; and maintain compliance. On behalf of the City, implemented the Los Angeles County Rent Relief Program.

Duties for Rent Relief included program oversight; assigning cases to case managers; quality review of applications for eligibility, errors, and consistency; lead team meetings to discuss progress, goals, updates, training, and expectations; data entry, coordination, and validation; and maintain overall compliance. As part of the program, helped facilitate over $1.1 million in rental assistance payments.

City of El Monte
Provides support to CDBG projects, including setting up and providing oversight to a business assistance program and rental assistance program. Assists with the preparation of the Annual Action Plan, CAPER, ConPlan and other City and HUD-required reports for submission. Responsibilities for program assistance and oversight includes program development, which included creating program documents like checklists, application, and policies and procedures; training, management, technical assistance, and compliance.

City of Lynwood
Assisted in tracking the progress of priority Capital Improvement Projects. Coordinated and prepared ad hoc committee meeting supporting documentation. Created and maintained tools to monitor project progress.

Youth Policy Institute
As an Assistant Director, was responsible for developing, implementing, managing, and executing seven federally-funded contracts. Was responsible for staff management, program development, and implementation. Created and implemented program policies and procedures, and maintained compliant participant files. Prepared quarterly performance reports, and prepared documents for all federal monitoring visits.
13 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Ms. Lopez has over two years providing administrative support services. She has worked jointly with Project Mangers of the company on project coordination and administration of programs.

She is fluent in both English and Spanish for both written and verbal translation.

Before joining the Avant-Garde team, Ms. Lopez worked as a Director of Sales. She has over six years of experience in management and consulting. Since joining the team in 2021, she has worked on managing the CDBG Subrecipients and Emergency Assistance Programs.

RELEVANT EXPERIENCE
CDBG-CV & ARPA Emergency Mortgage, Rental, & Utility Assistance Assists with the management and implementation of the CDBG-CV and ARPA Emergency Mortgage, Rental, & Utility Assistance Programs. Duties include case management, processing
applications, budget tracking, and reporting. These services are currently being provided to the following agencies:
• City of Bellflower
• City of Rialto
CDBG Subrecipient Monitoring
Assists with the management of CDBG subrecipient participants. This includes the review of applications, conducting on-boarding workshops, performing verification of reimbursements, monitoring expenditures and schedules, and preparing and submitting quarterly reports. These services are currently being provided to the following agencies:
• City of Rialto
• City Moreno Valley
Years of Experience:
6+ years
Education:

A.S. in Business
Administration, El Camino
Community College, CA
Liza Lopez
Program Manager
14 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Ms. Santoyo has thirteen years of experience in administrative and program services and has been with AVANT-GARDE since 2017. Her overall experience includes project management and coordination for CDBG and HOME programs.

Before joining the AVANT-GARDE team, Ms. Santoyo worked with the Oldtimers Foundation in coordinating the Nutrition Program. She was responsible for attending meetings and trainings, supervising quality control of the kitchens and their staff, procuring food and supplies, and inputting entries into the LA Get Care database.

Ms. Santoyo has assisted in completing tasks related to both CDBG and HOME funded housing rehabilitation programs. Her role on this project will include proper maintenance of the program files, site inspections, qualifying applicants, and assisting the Program Managers on an as needed support basis.

RELEVANT EXPERIENCE
City of Cudahy
Assists with the CDBG Housing Rehabilitation Grant Program in the City of Cudahy, by reaching out to potential applicants, income qualifying applicants, performing site inspections, preparing work write ups, drafting bid invitations, reviewing bids, and processing grant documents in accordance with program guidelines and procedures.

Assists with the Rent Relief Program in the City of Cudahy in collaboration with Los Angeles County. Reviews applications and verifies data from eligible applicants. Processes tenant and landlord applications, reviews and uploads documents into the Carelinq County Program and submits documents to payment.

Cities of Montebello & South Gate
Assists with the HOME Housing Rehabilitation Loan Program in the Cities of Montebello and South Gate, by reaching out to potential applicants, income qualifying applicants, performing site inspections, preparing work write ups, drafting bid invitations, reviewing bids, and processing loan documents in accordance with program guidelines and procedures.

Cities of Bellflower, Montebello, Pico Rivera & South Gate Assists with CDBG Subrecipient compliance and reviews in the Cities of Bellflower, Montebello, Pico Rivera and South Gate. Reviews Years of Experience:
13+ years
Education:

B.A. in Sociology and
Spanish, University of
California, Santa Barbara
Laura Santoyo
Senior Program Coordinator
15 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Subrecipient applications and collects required documentation from subrecipients according to HUD requirements. Reviews subrecipients Requests for Reimbursements and makes sure funding cities are provided required backup documentation to support requests on a quarterly basis. Maintains subrecipient files and conducts monitoring visits per HUD requirements. Organizes files and prepares them for HUD monitoring.
16 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Ms. Norma Lopez has four years of experience in Federal and local programs. Ms. Lopez has worked within the realm of City Planning and Economic and Community Development for the City of Ontario where her duties included conducting qualitative and quantitative research, analyzing and interpreting data and statistics, and preparing staff reports, and reviewing grant proposals.

As a Program Coordinator, Ms. Lopez works in conjunction with the project managers of the company and serves as a liaison to provide support on various projects. Ms. Lopez assists by writing grant proposals, assisting in determining eligible projects, and providing advisement of program requirements. Ms. Lopez also assists in the successful administration of funding requirements and program management. Her responsibilities have included interfacing with Federal, State and Local Agencies to define, develop and manage project scopes, schedules, and cooperative agreements. Ms. Lopez is adept at researching information to assist in her determination of program compliance.

RELEVANT EXPERIENCE
Avant-Garde, Inc.
• Assists with the preparation of the Annual Action Plan and other reports for submission to HUD
• Reviews CDBG funded project bid specifications to ensure compliance with all applicable Labor Compliance and Federal regulations.
• Reviews and analyzes bid proposals for CDBG related projects • Conducts monitoring for HOME funded rental projects.
• Monitors projects and activities of internal departments and sub-recipient agencies to ensure compliance with Federal regulations
• Assists in creating, implementing, and reviewing guidelines for local programs to ensure compliance with HUD and
CDBG/PLHA regulations.
• Prepares staff reports and presentations for projects and programs that require Council approval.
• Prepares Environmental and Historic Preservation clearances for CDBG and HOME funded projects under HUD Guidelines for multiple local agencies (HEROS experience.)
o Currently providing support services in the City of Rialto, Palm Springs, Pico Rivera, Bellflower and South Gate.

Years of Experience:
6+ years
Education:

B.S. in Urban and
Regional Planning with
Urban Design Option -
California State
Polytechnic University,
Pomona
Norma Lopez
Senior Program Coordinator
17 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 City of Ontario
• Conducted Geographic Information System (G.I.S.) analysis and research for the Planning Department and Engineering Department, Mobility Division
• Applied the City’s Planning Policy into practice from site visits, plan checks, to planning entitlements
• Processed applications such as zoning clearances and
modification permits
• Provided information and assisted public constituents and other employees regarding development standards
• Coordinated and attended community outreach meetings
18 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 As a Program Coordinator, one of Ms. Mann’s main responsibilities is providing labor compliance services. With over eight years of experience, she has worked in conjunction with the project managers of the company and served as a liaison to provide support on various labor compliance projects.

RELEVANT EXPERIENCE
City of Pico Rivera
• $597K CDBG ADA City Hall
• $355k CDBG Senior Center ADA Parking Lot
Improvements
• $87k CDBG – Durfee Ave ADA Ramp Improvements
• $108k CDBG Funded – Commercial Façade Phase II
• $44k CDBG Funded – Commercial Façade Phase III
• $92k CDBG Senior Center
Los Angeles Metropolitan Transportation Authority (Metro):
• $431.77M - Division 20 Portal Widening Turnback
• $1.8M – Building 3 Emergency Generator Replacement
• $244M - Westside Purple Line Extension Project – Adv.

Utility Relocation for Section 3
• $1.9M - Pavement Replacement – Division 7
• $3.2M - Immediate Remedial Measures for Division 5 ReRoofing and Division 7 • $3.2M - MBL & MGL Fire Alarm and Fire Suppression
Systems Retrofit
• $67.9M - MBL Track & System Refurbishment
• $1.9M - Construction of Cesar Chavez Transit Pavilion City of Alhambra
• $325k CDBG – 2020 Street Improvements
• $1.8M CDBG – Almansor Park Improvement Project
• $129k CDBG – Open Space Improvements
• $276k CDBG – Almansor Park Field Lighting Project
• $453k ADA Improvements project
• $38k Emery Park Restroom Rehab
• $34k Lindaraxa Park Pillar Reconstruction
• $325k Street Improvements
City of Commerce
• $785k Commerce Way Pavement
• $1.25M Traffic Interconnect System Upgrade
• $719k Sidewalk & TS Improvement Project
Years of Experience:
8+ years
Trainings/Certifications:

CA LTAP Certificate of
Completion – Labor
Compliance Course
CA Prevailing Wage/Public
Works Compliance Training
– Center for Contract
Compliance
2021 Section 3 Final Rule
Training
David-Bacon Labor
Standards
Prevailing Wage Seminar
for Public Agencies – CA
Labor Commissioner’s
Office and Center for
Contract Compliance
Rail Safety and Wayside
Worker Program Certified –
METRO
LCPtracker Training hosted
by METRO
Summer Mann
Labor Compliance / Program Coordinator
19 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 City of Bell Gardens
• $480k HSIP Cycle 8
• $706k Garfield Ave Improvements
• $1.1M Citywide Safety Enhancement
• $257k Gage Ave Rehab
City of Cudahy
• $536k ATP Cycle 2
• $289k Clara And Cudahy Park Restroom Rehab
• $233k HSIP Cycle 6
City of Culver City
• $2.8M La Ballona SRTS
City of Hermosa Beach
• $161k CDBG ADA Improvements
City of Industry
• $692k Stimson Ave Grade Crossing Improvement
City of El Monte
• $2.9M Ramona Blvd Resurfacing
• $965k CDBG Budget Inn
• $290k CDBG Budget Inn Reroof
• $46k Budget Inn HVAC
• $39k M Motel Mold
• $1M Regional Bicycle Commuter Access
• $43k Project Homekey Termite
• $77k Mountain View Park Restroom
• $725k Senior Center Roof
• $72k Gibson Mariposa Park Block Wall
• $1.2M Downtown Public Parking Improvement Project
• $800k Fletcher Dog Park
City of Huntington Park
• $3.7M Pacific Blvd Improvements
City of La Canada Flintridge
• $300k Foothill Blvd. Traffic Improvements
City of La Mirada
• $230k CDBG Funded Neff Park Historical Restoration
City of Lynwood
• $475k HSIP Cycle 9 Atlantic/Carlin
• $429k HSIP Cycle 9 Imperial/Atlantic
• $1.1M Priority 2 Phase 2A Street Improvement
• $300k Citywide Slurry Seal Phase 2
• $295k HSIP Cycle 5 MLK Blvd
• $650k CDBG San Carlos, San Juan, San Vincent etc.

Improvement
• $676k AMI Base Station Installation
20 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 • $197k Citywide Slurry Seal Phase 1
• $347k Well 19 Rehabilitation
• $556k Sidewalk Improvements Wright Road
• $2.44M Fernwood Ave
• $28k Drywell Installation
• $2.3M Alberta St Payment Rehab
• $2.5M CDBG Agnes Ave
• $289k Well 9 Rehab
• $326k Sanborn Ave & Mulford Ave Parking Lot Improvements • $25k Agnes Ave Roundabout
• $277k Long Beach Blvd/I-105 Fwy Interchange Curb
Improvement
• $913k Lilita St & Eve Ave Storm Drain, Sewer, Street
Improvements
• $496k Yvonne Burke Playground Renovation
• $689k Olive St, Lynwood Rd, McMillan St Improvements
• $5.5M City Hall Annex
• $3.6M Long Beach Blvd., Phase I
• $3.1M Long Beach Blvd., Phase 2
• $371k Bateman Hall Roof Replacement
• $410k Street Improvement Project
• $644k CDBG Funded Street and water main Improvement
• $181k Fertile St Improvements
• $1.1M Palm Ave Street and Water Improvements
• $929k Virginia Ave Street Improvements
• $919k Various Streets Pavement Rehab
• $326k Parking Lot Improvements
• $7.3M Go Green Energy & Solar Project
• $149k Decorative Monument Signage
• $618k Hulme Ave Street Improvements
• $1.7M CDBG Street and Water Improvements
• $795k City Hall Improvements
• $2M ATP Community Linkage
• $437k Bullis Road Street Improvements
• $782k Capistrano Ave Improvements
• $824k Emergency Generator Project
• $829k Duncan Ave Improvements
• $1.6M Louise Ave Improvements
• $300k Palm Ave Improvements
• $1.2M Birch Street and Water Main Upgrade
• $1.7M Beechwood Street and Water Main Upgrade
• $95k Sidewalk improvements
• $108k Emergency Reservoir
• $393k T-Ball Park
• $115k Thorson Ave Water Line
• $451k Citywide slurry Seal
• $754k SCADA Upgrade
21 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 • $121k Water Distribution Sample Station
City of Montebello
• $277k Annual Concrete Repair
• $984k Arroyo Dr Improvements
• $5.8M Montebello Blvd Bike Lane & Sidewalk Improvements • $1.8M Bus Shelter Improvement
City of Monterey Park
• $1.1M HSIP Cycle 7 Traffic Signal Improvements
• $1.3M CDBG Building 300
• $130k CDBG Curb, Gutter & Sidewalk Improvement
City of South Gate
• $369k CDBG – Seaborg House Relocation
San Gabriel River Water Committee
• $1.2M Watergate Improvement Project
City of South El Monte
• $614k CDBG 2020 Residential Street Rehab
• $800k Santa Anita Traffic Signal Modifications
• $609k Peck and Rush Traffic Signal and Light
Modification
• $77k Senior Center Restroom Renovation
City of Temple City
• $2.4M Primrose Park
City of West Covina
• $201k CDBG Friendship Park
• $1.86M CDBG Residential Street Rehab
• $230k Senior Center Restroom Renovation
City of Rialto
• $710k HSIP Cycle 7 Protected Left Turn Signal
• $1.3M CDBG Building 300
• $129k CDBG Curb, Gutter and Sidewalk Improvement
22 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Ms. Sanchez has over eight years providing administrative support services. She has worked in conjunction with the Project Managers of the company and has served as liaison to provide support on various projects. Ms. Sanchez is fluent in both English and Spanish for both written and verbal translation. Her overall experience includes project management and coordination of CDBG programs and labor compliance monitoring.

Before joining the Avant-Garde team, Ms. Sanchez worked with Project Return Peer Support Network and Para Los Niños as a Human Resources Assistant for both Non-Profit organizations. She was responsible for providing administrative support by processing and updating employee records.

RELEVANT EXPERIENCE
Emergency Rental Assistance
Assist with the management and implementation of the Emergency Rental Assistance program. Duties include coordination with tenants and landlords, conduct income calculation and collect required paperwork in accordance with the program guidelines. Process landlord agreements and coordinate with City staff to issue payments directly to the landlords. These services are currently being provided to the following agencies:
• City of El Monte
• City of Cudahy
• City of South Gate
• Los Angeles County Development Authority (LACDA)
CDBG Subrecipient Monitoring
Assist with the management of CDBG subrecipient files and eligibility.

This includes review of applications, preparation of agreements, review of quarterly reports, and verification of reimbursements submitted. In addition, support services have been provided to assist with time record keeping of the Graffiti Abatement and Code Enforcement Program These services have been provided to the following agencies:
• City of Lynwood
• City of Montebello
• City of South Gate
Years of Experience:
8+ years
Trainings:

LCPtracker Labor
Compliance and
Workforce
Development
California LTAP Labor
Compliance
Center of Contract
Compliance
Ashley Sanchez
Program Coordinator
23 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Labor Compliance Monitoring
Monitor contracts to ensure that all clients’ actions adhere to either CDBG or the standard State and Federal wage regulation
requirements and when applicable DBE or Section 3 requirements.

Responsibilities include: conducting employee field interviews, auditing weekly payrolls, investigating violation findings, and preparing non-compliance notices to contractors.
• City of El Monte
• City of Lynwood
• City of Commerce
• City of Alhambra
• City of South Gate
• City of Montebello
• Metro
24 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Ms. Robledo has 15 years of experience in administrative and program services and is the newest member of the AVANT-GARDE team. Before joining AVANT-GARDE, Ms. Robledo worked with the Ontario Chamber of Commerce and Downtown Ontario
Improvement Association developing public policy and business strategies. She has also worked as an independent contractor providing administrative support to various companies and boosting business awareness across challenging markets by organizing special events. Since joining as a Program Coordinator, Ms. Robledo assists the CDBG and housing rehabilitation team by qualifying applicants and maintaining program files.

RELEVANT EXPERIENCE
Housing Rehabilitation Experience
Assists with CDBG and HOME Housing Rehabilitation Grant and Loan Programs by reaching out to potential applicants; determining homeowners eligibility; meeting with applicants to review and sign necessary documents; performing site inspections, monitoring and evaluating construction and remodeling work; processing grant or loan documents in accordance with program guidelines and procedures; and establishing and maintaining project files to ensure documentation complies with HUD requirements.
• City of Rialto – CDBG funded
• City of Rosemead – CDBG funded
Commercial Façade Improvement Experience
Assists with CDBG Grant Programs by reaching out to potential applicants; determining business owners eligibility; meeting with applicants to review and sign necessary documents; performing site inspections, monitoring and evaluating construction and remodeling work; and establishing and maintaining project files to ensure documentation complies with HUD requirements and City’s program guidelines and procedures.
• City of Lynwood – ARPA funded
Emergency Rental/Utilities Experience
Coordinate with the City for submittal of approved applications for payment processing.

Years of Experience:
15+ years
Adriana Robledo
Program Coordinator
25 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Section 3. Prior Experience
The professional staff of AVANT-GARDE well understands the many ways that a single project may affect the multiple layers of government as well as the desired economic growth and development that is of primary concern to business, property owners and residents. We use and leverage this information by looking at every angle of a program and/or project to determine the overall impact and how best to design and implement programs that best produce optimum results.

We have extensive experience in serving both major urban cities and small suburban municipalities with our success achieved through close attention to detail, emphasis on meeting the particular needs of each client and prompt delivery of products, studies and services. Project assignments have included funding strategies and analysis, construction coordination, compliance management, community outreach programs and special projects. Today, we are well-prepared to provide public agencies with a number of varied consulting services.

As it relates to this RFP for CDBG and HOME Program administration services, the AVANTGARDE staff assigned to this project have provided similar services for the cities of Montebello, Lynwood, Bellflower, El Monte, South Gate, Cudahy, Pico Rivera, Rialto, and Moreno Valley.

26 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Pico Rivera | CDBG Program
Administration
AVANT-GARDE has established infrastructure systems to maintain compliance and prevent future findings and helped prepare the City’s HOME and CDBG policies and procedures for City Council adoption.

Our services have included guidance to meet program and financial compliance requirements and local financial procedural support. We are well versed in the City’s HUD IDIS portal and are able to monitor it regularly to ensure data and reporting accuracy. AVANT-GARDE serves as the liaison with the City’s HUD representative to seek clarification, guidance, and provide the City with clear action steps.

AVANT-GARDE assisted in developing the City’s 2020-2025 Consolidated Plan, which included developing notices, community outreach via meetings and surveys, data analysis, and assisting staff in preparing staff reports and participation at City Council meetings.

AVANT-GARDE worked with City staff to develop strategic goals to address City needs and activities to align with and meet these goals.

Additionally, AVANT-GARDE assisted in preparing the City’s Analysis to Fair Housing Choice for submission to HUD.

As a part of the development of the FY 2020-2021, FY 2021-2022, FY 2022- 2023 and FY 2023-2024 Annual Action Plans, AVANT-GARDE assisted the City in programming CDBG and CDBG-CV funds. AVANT-GARDE recently assisted the City with onboarding new subrecipients and developing new activities and programs to meet the City’s goals established in the Annual Action Plan and Consolidated Plan, and to expend the funds in a timely manner to remain in good standing with HUD.

Our staff consistently and successfully worked with
City subrecipients to monitor their work and files to
ensure that they are compliant with all City and
HUD CDBG guidelines, providing technical
assistance when needed. AVANT-GARDE has also
provided the City with program administration
support, which has included building out new
programs, developing program documents,
establishing guidelines and protocols. Most
recently AVANT-GARDE assisted with the launch
and underwriting of the City’s Small Business Grant
Program, which will provide grants of $10,000 to
local CDBG eligible businesses. We also assisted
the city with preparation for their HUD audit.

Client Contact
Julia Gonzalez
Deputy Director of
Community and
Economic
Development
Project Completion
Ongoing
Type of Funding

HOME / CDBG/ CV
27 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Montebello | HUD CDBG & HOME
Program Compliance Management
Client Contact
Joseph Palombi
Director of
Planning/Community
Development
Project Completion
Ongoing
Type of Funding

HOME / CDBG/CV
AVANT-GARDE provided Program Monitoring and Funding Compliance Services for HOME and CDBG funded programs administered through HUD. As such, AVANT-GARDE provided on-going program compliance monitoring services of sub-recipients and implementation of the City’s Housing Program. Services included working with the City to correct and respond to HUD HOME and CDBG Service Program findings, resulting in eliminating the numerous findings dating back to FY 2012/13. As part of this effort, AVANT-GARDE assisted in developing systems and processes in accordance with HUD requirements to expend and track funds in a timely and compliant manner and maintain program files in preparation for HUD review and audit.

The Housing Rehabilitation Program systems have been updated to include standardized loan documents, program standards, and tracking mechanisms to help the City identify each stage of a project. HOME program accomplishments include acquisition of and conditional commitment of funds for properties. AVANT-GARDE recently monitored and implemented the CDBG Service Program, working with various City departments and local nonprofits to ensure adherence to HUD program requirements, including the development of tracking processes and timely submittal of sub-recipient activities and reimbursements. AVANTGARDE recently assisted the City with developing their updated ConPlan, Analysis of Impediments, Citizen Participation Plan, Substantial Amendment, and FY 19/20 CAPER which included all related community outreach and coordination with city staff and community stakeholders. 28 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Lynwood | HUD Program &
Compliance Management
AVANT-GARDE was hired by the City of Lynwood in 2007 to provide Community Development (Housing) services, which included the administration and implementation of the City’s CBDG and HOME program including but not limited to: Housing Rehabilitation Program, implementation of a variety of housing related tasks, project management services as assigned by the Community Development Director, and support for miscellaneous Community Development activities. On-going administration of the HUD program included: preparation of environmental reviews (up to level of Environmental Assessment) for all activities; management of IDIS system (set-up, revise and fund activities, update accomplishments and beneficiary information); preparation of agreements, including sub-recipient agreements, MOUs and housing agreements; assistance in department budget
preparation; assistance in implementation of Property
Rehabilitation Programs; responsibility of financial management, approving payment requests while monitoring HOME expenditures; and administering and monitoring contracts of housing projects. As of 2017, AVANT-GARDE has been assisting with the Housing Rehabilitation Program, Environmental Reports for capital improvement projects, and Labor Compliance.

Client Contact
Gabriel Linares
Director of
Community
Development
Project Completion
Ongoing
Type of Funding

HOME / CDBG
29 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Client Contact
Cecilia Madrigal
Project Completion
Ongoing
Type of Funding

CDBG/ CV
Cudahy | CDBG Administration &
Housing Rehabilitation Services
AVANT-GARDE was hired by the City of Cudahy to provide technical assistance for the administration and implementation of the City’s CDBG projects. Responsibilities include the preparation of the on-line “Agreements to Implement” annual CDBG programs with LACDA and the preparation of processing of any necessary amendments to the “Agreement to Implement” for ongoing projects. Duties include coordination with City staff to gather all necessary documentation for LACDA program monitoring and audit preparation, preparation and completion of LACDA and HUD reports and documents, ensuring administration of all applicable federal, state, and local laws, rules, regulations, and policies are adhered to and the overall administration of the housing rehabilitation program, including collecting data and preparing necessary reports for the City, LACDA, and HUD. In addition, AVANT-GARDE provides CDBG financial management assistance, acts as a City liaison and representative to the LACDA, and administers CDBG funded projects through applicant file review and income qualification, property inspections, and bid administration, including the coordination of pre-construction meetings with the LACDA, contractors, property owners, and staff. Most recently AVANT-GARDE assisted with the development and implementation of the City’s new Emergency Rental Assistance Program.
30 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Bellflower | Housing Management
Services
AVANT-GARDE provides oversight of the HOME and CDBG program for the City of Bellflower. Activities include implementation of the Housing Rehabilitation and First Time Homebuyer programs; IDIS management and training of accounting staff; income
qualification of program applicants; preparation of CAPER; project management on Affordable Housing development projects, and management of the CBDG Public Services program. AVANT-GARDE has updated HOME, CDBG, and Code Enforcement policies in accordance with HUD requirements, provided technical assistance to update and amend the Action Plan, Consolidated Annual Performance and Evaluation Report, and other reporting
documents as required by HUD including the 2020 5-year
Consolidated Plan and AI. Most recently, assisted the City with the programming and implementation of CDBG-CV funded activities.

Client Contact
Jim DellaLonga
Director of Economic
Development
Project Completion
Ongoing
Type of Funding

HOME / CDBG / CV
31 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Client Contact
Betty Donavanik
Director of
Community &
Economic
Development
Project Completion
Ongoing
Type of Funding

HOME / CDBG /

ESG / CV
El Monte | HOME & CDBG
Compliance & Monitoring
AVANT-GARDE is assisting the City of El Monte with program management of HOME, CDBG and ESG programs. Services include project management of the public services program; management of CDBG funded CIP’s; oversight of the 5-year Consolidated Plan, AI and Annual Action Plan; on-site monitoring and compliance review; and technical assistance to update and amend the CAPER. Staff assisted the City with preparation of the Housing Rehabilitation Program Guidelines. We also assisted the City with preparing bid packages for the rehabilitation of City-owned properties and worked with the City’s selected relocation services consultant to coordinate the temporary displacement of tenants at City-owned properties while improvements were constructed and monitored rental properties. Most recently, assisted the City with the programming and implementation of CDBG-CV funded activities. 32 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 South Gate | CDBG & HOME
Coordination and Management
Services
AVANT-GARDE has provided HUD Program Management Services to the City of South Gate since 2018. Our scope of work includes preparation of the Annual Action Plan and program development and support including Action Plan amendments; 2020 Consolidated Plan development and support including community outreach and all amendments; preparation of the 2019-2020 Consolidated Annual Plan Evaluation Report (CAPER); preparation and adoption of updated HOME and CDBG policies and procedures; program and financial compliance requirements (IDIS) and local financial procedural support; and manage program operations for all CDBG and HOME programs including reporting and administration of commercial façade and housing rehabilitation programs. Program administration support has included building out new programs and establishing guidelines and protocols. Most recently AVANT-GARDE assisted with the launch and underwriting of the City’s new Small Business Retention and Creation Grant Program.

Services have included working with the City to correct and respond to HUD Office of Inspector General (OIG) audit findings. Furthermore, AVANT-GARDE provides labor compliance services for CDBG funded capital improvement projects to ascertain compliance with established federal regulations and laws. Most recently, we are assisting the City with the programming and implementation of CDBG-CV funded activities.

As part of South Gate’s Rental Assistance program, AVANTGARDE drafted program guidelines and documents (applications and supplemental forms), and trained staff on program implementation and participant eligibility. AVANTGARDE processed applications, eligibility review, and liaising with participants. For South Gate’s Business Assistance program, AVANT-GARDE was developed all program forms
(including program manuals, outreach material, and
applications). AVANT-GARDE staff worked with business
owners to collect required documentation verify their
eligibility and process their applications with the City. AVANTGARDE also followed up with businesses after the grant award to collect expense documents to confirm that expenses were eligible.

Client Contact
Meredith Elguira
Director of Community
Development
Project Completion
Ongoing
Type of Funding

HOME / CDBG
33 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Moreno Valley | HOME Funding
Compliance Services
AVANT-GARDE was retained by the City of Moreno Valley to assist with committing HOME funds for two affordable housing projects facing a lapse of funds. Our scope of services included CHDO certification; preparation of NEPA documentation for the project; and project coordination to ensure development and execution of the HOME Commitment Agreement which included coordination with the City Attorney, City staff, and the CHDO; preparation of Council staff reports and coordination with designated City consultants for preparation of the layering analysis and feasibility study. We are currently under contract to provide a variety of services including Project Management services to carry out two rental projects; monitoring the Emergency Solutions Grants (ESG) program and its subrecipients including review of policies and procedures, eligibility requirements, reporting and performance measurements, administrative costs, procurement, and
recordkeeping. We also serve as the City’s liaison with Habitat for Humanity on its Housing rehabilitation program.

Client Contact
Viviana McDaniel
Grants Division
Manager
Project Completion
Ongoing
Type of Funding

HOME /CDBG /
ESG
34 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Rialto | CDBG & NSP Compliance
Services
AVANT-GARDE is currently providing the day-to-day administration and implementation of the City’s CDBG funded Program. Our team works with City staff to determine project eligibility along with monitoring of programs to assure compliance with all Federal, State, and Local reporting requirements. Our scope of work includes: prepare reports including, but not limited to, an Annual Action Plan CAPER, Section 3 Reports, prevailing wage, minority contractor, and other reports required by HUD; setup and maintain IDIS records, including preparation of requested reports; prepare draw down requests for reimbursement of expended funds at a minimum of a quarterly basis or more often as directed by the Finance Director; coordinate with HUD field office staff and other City representatives on CDBG related issues as needed and assist with all program monitoring and audit preparation; and prepare necessary NEPA/CEQA forms and documents for categorically exempt projects.

Our team is also providing support for the City’s NSP programs.

Scope includes: DRGR reporting, NSP program monitoring and strategic planning for the use of program income.

CARES Act Support: Provide technical and marketing support for programming of funds. Our staff has been actively involved in developing and implementing programs such as Rental Assistance and Business Assistance programs.

Client Contact
Cythia Alvarado
Project Completion
Ongoing
Type of Funding

CDBG / NSP / CV
35 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Section 4. General Scope of work
It is our understanding that the City of Pico Rivera is seeking a highly qualified consultant to provide administration services for the implementation of the City’s CDBG Program and preparation of HUD required documents. As a leader in Compliance Management, AVANT-GARDE is committed to providing the scope of services outlined in this proposal as follows:

1. Provide general CDBG program administration services and CDBG technical support.

2. Ensuring all files that are active and those subject to audit have the proper documentation per HUD regulations.

3. Review and respond to HUD-related correspondence.

4. Review and prepare all CDBG/HUD reports (e.g., prevailing wage, minority contractor and Section 3 reports), including Federal Funding Accountability and Transparency Act (FFATA) reporting.

5. Review, report and advise on proposed legislation and/or regulations that impact the City's use of CDBG funds.

6. Undertake annual on-site monitoring of nonprofits and sub recipients, including CIP projects executed by other City Departments that receive CDBG funds to ensure program compliance.

7. Update IDIS with all relevant quarterly data from funded entities and any available year-end data.

8. Responsibility for all IDIS entries, reporting and set-up for activities and drawdowns according to HUD timelines.

9. Preparation of drawdowns utilizing the IDIS program and reconciling of financial records.

10. Preparation of NEPA/CEQA documents for all project/program files.

11. Preparation of any required public notices, staff reports and update of applications as needed.

12. Preparation, submittal and complete approval of the annual budget, Action Plan, CAPER, Consolidated Plans, and Analysis of Impediments to Fair Housing.

13. Preparation of staff reports, public notices, and attendance at City Council meetings.

14. Be available to strategize and discuss the development of the documents.

15. Respond to all questions, concerns and requests for modification received from HUD. Prepare and deliver to HUD appropriate responses to their questions and concerns. Make all modifications to the documents as needed.

16. Revise the final draft documents so as to reflect any changes made by the City Council and/or HUD. Provide an electronica file of the complete document formatted in Adobe PDF and Microsoft Word.
36 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024

17. If applicable, comply with the requirements of the Build America, Buy America (BABA) Act, 41 USC 8301 note, and all applicable rules and notices, as may be amended.

In addition, based on our experience it is anticipated that the following items will also be required:

1. Ongoing Administration of HUD programs
a. Prepare agreements, including sub-recipient agreements, MOUs and housing agreements;
b. Assist in department budget preparation;
c. Financial management responsibilities, including coordination with the Finance Department and preparing draw down requests;
d. Contract administration and monitoring of sub-recipients.

2. Maintain Project Filing System and Documentation Checklists.

3. Respond to public inquiries regarding HUD programs.

4. Prepare and publish public notices in accordance with HUD regulations, announcing the commencement of public comment periods.

5. Provide an electronic copy of each program document to be circulated to City staff for review and changes.

6. CDBG Administrative Services:
a. Coordinate with City staff to gather all necessary documentation for HUD program monitoring and audit preparation.
b. Provide CDBG financial management assistance.
c. Act as City’s liaison and representative to facilitate communication between the City and HUD as well as represent the City at community meetings, City Council, meetings with staff, or workshops as needed or directed. d. Ensure administration and compliance with all applicable federal, state, and local laws, rules, regulations, and policies including national objectives as required by HUD.
e. Maintain case files including but not limited to application and documentation of eligibility, work write-ups, documents on all necessary licenses and permits, site visit/inspection reports, invoices for payment.

Maintain these and other program and financial records in accordance with CDBG record keeping requirements as specified.

7. Technical assistance in the review of private-public partnerships, site and neighborhood standards, income determinations, and similar program criteria.

8. Technical assistance with updating Pico Rivera’s CDBG Policies and Procedures as needed.

9. Determining eligible and ineligible CDBG activities such as eligible project cost, eligible administrative and planning cost, and similar program criteria. 37 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024

10. Technical assistance on other federal requirements including: affirmative marketing, minority outreach, environmental review, displacement, relocation, acquisition, opportunity, disclosure requirements, debarred, suspended, or ineligible contractors, and drug-free work place.

11. Program Administration Support: CDBG agreements, program Integrated Disbursement Information System (IDIS), program income, inspections, audit, closeout, record-keeping, and performance reports.

12. Technical expertise in responding to any HUD audit findings and/or concerns, take corrective actions, answer questions, and follow up with any other information as requested and/or needed.

13. Provide a high standard of care and support to internal customers (such as City elected officials and staff) and external customers (such as residents, business owners, contractors, developer and staff from municipal, state and federal agencies).

Section 5. Approach to Requested Services
Our years of practice in providing the same services as outlined in the RFP in other cities has provided us the ability to customize program documents and forms to ensure the smooth operation of the CDBG Program and preparation of the Action Plan, CAPER, ConPlan, and annual budget.

The AVANT-GARDE principals have had the privilege of working together serving municipalities for over twenty years. During this time, our Team has worked closely with City staff in a variety of capacities providing State and Federal funding compliance services on housing projects and programs and public works capital projects including community outreach, assisting in the preparation of grant applications, assisting with the preparation of fiscal budgets, and assisting with the HOME and CDBG administration. Our familiarity and experience with the municipal government establishes our solid working knowledge of the community, processes and institutions which make us uniquely qualified to assist the City and serve the community. Our Team has been extremely successful in helping cities effectively and efficiently run programs. We work diligently to identify the strengths and weaknesses in currently established programs.

Value added service
The most immediate value that we will add to the City of Pico Rivera is the exponential extension of AVANT-GARDE staff. It is our preferred style to become an extension of the City by combining resources and providing the added ability to take on projects from beginning analysis and strategic planning through implementation. We can call upon the skills of the professionals in our organization to fill in where the City may not have available staff or expertise. While the City staff is engaged in day-to-day operations, our staff has the capacity to evaluate and manage development projects on behalf of the City. Additionally, we share our insights and professional expertise, as well as best practices which we have applied successfully, with staff in the manner of in-house training.
38 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024

CDBG AND HUD ADMINISTRATION

COORDINATION WITH HUD
AVANT-GARDE will serve as the City’s liaison with HUD. We will prepare the Annual Action Plan and annual budget. Additionally, we will provide HUD with the required input for the Consolidated Plan, Action Plan, and CAPER. AVANT-GARDE will collect the necessary documents to submit to HUD for review and comment. The content and form of these documents will be evaluated pursuant to the regulations of HUD and achievement of the City of Pico Rivera’s goals and objectives. AVANT-GARDE is available to participate in HUD project and program monitoring reviews and participate in the Single Audit review of CDBG activities. Agenda reports will be prepared for City Council meetings relating to program activities as needed. As requested by City staff, AVANT-GARDE will attend Council Meetings and make presentations related to program activities.

FISCAL REPORTING
AVANT-GARDE will prepare and submit to HUD all required fiscal and programmatic reports which includes collection of data for submission of quarterly grantee performance reports, Semi-Annual Labor Standards Enforcement reports and Contract and Subcontract Activity Reports as well as preparation and submittal of all other required HUD submissions for the program year. AVANT-GARDE will also prepare all required Planning Summaries, Environmental Service Request (ESR) forms, etc. for the CDBG program and submit them to HUD by the required deadlines. We will also monitor project implementation, progress, and expenditures. AVANT-GARDE will review financial summaries to ensure conformity with project accomplishments. In addition, we will coordinate with the Finance Department and other departments as necessary to ensure that a process is set up for monitoring and tracking of all program expenditures.

PROGRAM MONITORING
AVANT-GARDE will ensure that funded projects meet Federal eligibility and meet HUD compliance requirements including meeting national objective, procurement procedures, reimbursement and participant eligibility. AVANT-GARDE will monitor and report program income. We will ensure that environmental procedures are followed for CDBG funded programs and/or projects. In addition, procurement procedures will be established and monitored for awarded project contracts funded with CDBG funds. This includes coordination with HUD and submission of required documents. AVANT-GARDE will comply with all HUD established guidelines and procedures.

PUBLIC SERVICES GRANT PROCESSING
AVANT-GARDE will assist the City in all activities related to public service grant processing.

Activities will include the following:
• Review and evaluate funding applications by subrecipients. • Prepare and administer public service grant contracts. • Ensure that all City required documents are submitted prior to funding (i.e. executed contracts, purchase requisitions, City approved insurance, and expenditure back-up documentation.
• Monitor subrecipients programmatic and fiscal performance. 39 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 • Provide technical assistance to subrecipients to ensure that they follow established guidelines and procedures.

Coordinate with City Staff on invoices, general administrative issues: Our staff will work closely with the City’s program manager and the City’s finance department to ensure that all project costs are tracked, paid and reimbursed in compliance with HUD. • Provide public information at the direction of the City: Our Program staff are well versed in ensuring that the community is aware of the programs available through the City. If the program needs to be promoted to engage participation our team is ready to assist the City. We have developed program brochures, held community meetings etc.
• Provide the City with monthly status reports: Monthly reports will be submitted to the City with an activity log. In addition, our monthly invoices will be broken down per activity to ensure that project delivery costs are kept for each project.

LABOR COMPLIANCE AND SECTION 3 MONITORING
AVANT-GARDE will provide the following services for construction projects that require Labor Compliance and Section 3 monitoring:
• Review of the Specifications to ensure HUD compliance. • Review documents submitted by contractors following the bid opening. • Prepare and submit documents following award of contract. • Attend the Pre-bid meeting and Pre-construction meeting. • Conduct final file review for project closeout.
• Set up and maintain Labor Standards Enforcement Files. • Review City’s and Contractor’s procurement procedures according to federal regulation and advise on corrective actions if required. • Review Contractor’s compliance with all State and Federal required postings such as the prevailing wage rates and EEO policies as well as the Contractor’s Compliance with Section 3.
• Conduct Employee Field Interviews to confirm worker classification and wage rate of the project workforce conforms to the applicable Davis-Bacon Wage Decision. • Reconcile Weekly Certified Payroll Reports (CPR) & Supporting Documentation with wage decision and employee field interviews. Perform continuous and timely monitoring reviews of CPRs and related submissions for compliance. • Identify violations and investigate complaints of underpayment to workers. Submit and file all required forms to appropriate parties. In the event any labor violations are reported and investigations confirm the violations, prepare investigative reports and backup. Violations will be reported and discussed with the City prior to reporting to the Department of Industrial Relations and any other agencies required by Federal or State Laws and Regulations.
• Identify labor deficiencies and prepare letters of findings. Notify the prime 40 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 contractor in writing of any labor discrepancies or suspected violations and define the corrective actions to be taken. Final resolutions will be documented.

ANNUAL ACTION PLAN, CAPER, 5-Year CONSOLIDATED PLAN, ANALYSIS OF IMPEDIMENTS,

AND CITIZEN PARTICIPATION PLAN
AVANT-GARDE’s approach to plan preparation is largely based on HUD guidance.

Recently HUD incorporated the Consolidated Plan and CAPER into IDIS OnLine so that all key elements of the grants management cycle are integrated into a single system. This is expected to ensure consistency among the goals described in the Consolidated Plan and Action Plan and the outcomes tracked in IDIS and reported in the Consolidated Annual Performance and Evaluation Report (CAPER), making the Consolidated Plan a more useful management tool.

Assigned members of the AVANT-GARDE team propose to meet with City staff to review the goals and objectives of the City, review the HUD regulations within the context of the City’s goals and objectives, discuss the general consensus of the most approved plans and the effectiveness of the programs implemented and to confirm the timeline for the process of preparing the Plans. AVANT-GARDE will meet with staff as directed to review the tasks to be completed. The purpose is to ensure that the activities to be undertaken are consistent with the City’s needs and the legislative requirements imposed by HUD.

AVANT-GARDE in coordination with Civitas, LLC as a subconsultant will develop a draft Consolidated Plan that includes five-year funding goals, priorities, strategies, proposed accomplishments, and performance measurements. The Plan will follow the HUD checklist, narrative requirements, and HUD guidelines, taking into consideration improved ways to present and display information using eCon Planning Suite, and addressing Federal requirements. Sections of this Plan include:
• Executive Summary - Consultant team members will meet on-site with City representatives to discuss the project, develop detailed schedules, and collect necessary information, including the City’s existing consolidated plan, the local homeless Continuum of Care, the City’s comprehensive plan, fair housing plan and other relevant information from other local agencies. City representatives will be asked to identify and provide any other relevant data or information to ensure that all community needs and conditions and resources are considered. • Citizen Participation Process – Meet with staff to discuss expectations, priorities, available resources, strategies and timetables. AVANT-GARDE will conduct two (2) community meetings as well as conduct in-person and/or phone interviews of key stakeholders as identified by City staff. Additionally, the consultant team will develop an online survey for citizen and stakeholder feedback. • Housing Needs Assessment - Develop an updated housing needs profile specifically for the City of Bellflower. The consultant team will work with City representatives to identify any additional data and information, including existing housing and/or homeless studies and information on special needs populations, etc., not previously considered. After obtaining this information, the consultants will combine this information along with the information gathered at the initial meeting, census data and other HUD resources - to develop a needs assessment for the City’s review and approval.
41 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 The needs assessment will meet all of the requirements of 24 CFR Part 91 and will include an estimate of the housing needs within the City. The assessment will include the specification of such housing related needs, a discussion of specific housing problems, assessment of the specific needs of racial and ethnic groups, the extent of homelessness in the City, the characteristics and needs of low income people, existing facilities such as outreach and assessment, existence of emergency shelters and services, estimates of the number of people requiring supportive services, and a description of supportive housing needs and a description of the agencies that provide the supportive housing services. • Non-Housing Community Development Initiatives - The consultant team will identify the City’s priority non-housing community development needs eligible for assistance. This includes public facilities, public improvements, public services, and economic development. This analysis will include a look at the homebuilding industry in the City, its current neighborhood development policies, and its economic development initiatives. This shall include but be limited to the following:
public libraries and museums, parks and community centers, health facilities, historic preservation, continuing education/adult education facilities, and any additional youth, adult, or senior programs. This review shall also incorporate regional planning and economic development initiatives including but not limited to the following urban development, infrastructure, public safety, public transportation, employment training, and business attraction and retention. • Demographic Data Collection - The consultant team will work with City staff to develop a Community Profile, which will provide a general overview of Pico Rivera.

The present-day sketch will outline the City’s employment situation and major employers, current urban development issues, recreational activities, and any successful development or redevelopment ventures. The demographic and housing section will give a brief overview the current population of the City, including its ethnic and socio-economic makeup, as well as the current state of its housing situation, and land use issues. The policy section will outline any current City, County, or state policies that might have an impact on affordable housing or the operation of housing agencies in the City.
• Homeless Needs Assessment - Consultants will assist City staff in providing a concise summary of the nature and extent of homelessness within the City, addressing separately the need for facilities and services for homeless persons and homeless families with children, both sheltered and unsheltered, and homeless subpopulations. As part of the homeless needs assessment, the consultant team will identify area facilities and services in place to provide for the homeless population.

This shall include, at a minimum, the local Continuum of Care, all emergency shelters, any homeless outreach program(s) as well as available transitional and permanent housing options.
• Market Analysis - In cooperation with local stakeholders and representatives, the consultant team will develop a housing market analysis, using information from interviews, surveys, public hearings, census data, consultation with local lenders, realtors, and appraisers. Consultants will incorporate into this analysis an evaluation of the City’s housing supply, the demand for housing, the current housing conditions, the cost of housing stock, and the kind of housing available to the disabled. 42 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 • Strategic Plan - The consultant team will develop a strategic plan that addresses the needs identified in the approved needs assessment and any existing City policies. The strategic plan will be consistent with the minimum HUD requirements as outlined in CFR 24 Part 91 as well as with other guidance issued by HUD. The strategic plan will detail the City’s housing, homeless, and non-housing priorities for the next five years. Specific objectives and strategies will be developed that address stated priority needs. City representatives will review and provide comments on the draft of the strategic plan, which the consultants will incorporate into the finalized version. The consultant team will obtain comments and direction on the draft Strategic Plan and discuss actions to implement the approved strategies. • Citizen Participation Plan – Review the City’s existing Citizen Participation Plan to provide recommendations, if any, for revisions to the Citizen Participation Plan and discuss necessary steps to amend the Citizen Participation Plan in accordance with 24 CFR 570.486(a)(6). Adhere to necessary timelines with milestones for carrying out the public participation component as required by the Citizen Participation Plan.

Additional tasks AVANT-GARDE will complete include: Prepare information on low and moderate-income areas for consideration as program target locations. Assist City staff in preparing a Budget and Allocation Plan itemizing anticipated funding over the next five years uses of the funding and formula methodology to serve as the basis for the development of an Allocation Plan for all activities. Provide certifications to ensure compliance with all other Federal requirements. Coordinate with City staff to respond to all inquiries from HUD regarding the approved Consolidated Plan. Coordinate with City staff to ensure compliance with publishing and advertising requirements to obtain public input for preparing the draft of the Consolidated Plan. The City of Pico Rivera will be responsible for preparing, placing and payment of advertisements.

The AVANT-GARDE team will develop an Annual Action Plan that supports the objectives and strategies outlined in previous assessments and analyses conducted during development of the ConPlan. Specific benchmarks/performance measures will be developed so that the City and HUD will be able to assess and evaluate the City’s progress in reaching its goals. The one-year action plan will be consistent with the minimum requirements outlined in 24 CFR Part 91 as well as with other guidance issued by HUD. City representatives will review and provide comments on the draft Annual Action Plan, which the consultants will incorporate into the finalized version.

Plan Materials and Deliverables AVANT-GARDE will prepare for submittal to City of Pico Rivera are as follows:
• Drafts of the Annual Action Plan, CAPER, and/or ConPlan for City staff review and comment. AVANT-GARDE will provide an Adobe PDF or Microsoft Word electronic copy of the drafts no later than 10-14 calendar days prior to distribution for public comment.
• Plan changes or corrections requested by City staff in response to the draft documents.
• Changes or corrections to the draft documents following public hearings and public comment no later than 14 days prior to the City Council meeting to approve the Action Plan or ConPlan.
43 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 • After the drafts are finalized and approved by HUD, AVANT-GARDE will provide one (1) electronic copy, full-color original of the documents. City staff will submit Plans and supporting documents to HUD, consistent with updated IDIS requirements. • AVANT-GARDE will provide support as required to ensure all appropriate information is entered into IDIS online for viewing by City staff responsible for submission of the Plans and CAPER through IDIS online.

1. Program Methodology & Management
The success of projects often depends on the strength of the collaboration between the city staff and the consultant. To this end, we would initiate this program with a thorough review of the proposal and a discussion of how well it meets the stated goals and objectives of the City. Any gaps, omissions or additional requirements are determined and discussed for possible inclusion in the services to be provided. This initial review is followed by a detailed summary of the methodology, product deliverables and a timeline with benchmarks clearly identified. This document would be approved by the authorized City staff and then becomes the guiding document. Any changes to this original document and timeline are quickly reduced to writing and approved by both the client and our firm. The purpose is to ensure that we are always moving toward the common and agreed upon goal and that the progress is consistent with the needs of the City.

In order for the process and the program to proceed according to the needs of the City of Pico Rivera, it is critical that certain exchanges and procedures occur between staff and consultant. We want to ensure that the staff is fully informed of all tasks undertaken and the results and findings we develop. We want to be available and fully prepared to discuss the program and to collaborate when a change in course may be advisable.

Most importantly, we want the City to receive services and product deliverables that are founded on good planning and economic development principles and in a format that is easy to use, apply and update as conditions may change.

In summary, our approach to program management is to agree on the goals and objectives to be achieved at the inception of the project. The process and product deliverables are reduced to writing so that both the City and our firm have a clear understanding of the project parameters and the method by which success is to be achieved. We prepare a timeline that is updated regularly to ensure that the project remains on track and/or that required extensions are known in advance and agreed upon by City staff. We maintain regular and consistent communication with scheduled meetings to update City staff on the status of the various project tasks and to share findings and results. These basic principles have served our firm well and significantly contributed to the success we have experienced with all of our past assignments.

Stakeholders and Community Outreach: AVANT-GARDE is committed to clear communication, inclusive of internal and external office coordination, coordination with assisting or collaborative consultants, and identified stakeholders. AVANT-GARDE can assist the City in developing communication messages and organizing and managing events and meetings intended to draw attention to the City’s programs funded with CDBG funds.

2. Client Satisfaction
44 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 AVANT-GARDE requires that adequate quality assurance/quality control (QA/QC) be implemented on each project. The Project Manager provides the leadership and guidance to obtain the end results for all services provided by the company. Generally, a project management plan is prepared. The project management plan defines specific project deliverables, implementation criteria, staff and resource loading, work task schedule with project milestones, and project responsibilities. The project management plan and the QA/QC plan are complimentary, and are mutually incorporative. Daily contact by the Project Manager with each on-going activity provides support and guidance, maintains focus and momentum, and monitors the quality of work. Regularly scheduled project staff meetings for reviewing and general work status, reviewing technical elements of the project, coordinating and interfacing of activities, reviewing costs, and discussing upcoming activities and responsibilities are all standard procedures of our quality assurance to each and every project.

AVANT-GARDE is committed to excellence and stands behind our reputation to provide only the highest level of products and services in an effort to enhance the quality of life for the communities we serve. Whether working on a specific project or a long-term program, our clients will always receive our blend of expertise to ensure every one of their goals are met.

3. City Provided Support
Ms. LeNoue will serve as the point person. She is familiar with the City process and will aim to prepare concise communications with staff on an as needed basis. By utilizing staff with unique experience and expertise in HUD programming, AVANT-GARDE is well versed and able to problem solve the many anticipated issues. As an extension of the City team, our goal is to collaborate with staff and to do this we, the consultants, need an agreed upon project approach, timeline, and list of product deliverables. This activity and the written results are critical to the process and the expected outcome of the program.

Regular Communication: The basic elements of this collaboration include regular and consistent communication with the City’s staff. We would ask that a regular meeting date and time be established as a means by which to ensure that the program is proceeding according to plan and to advise staff of any recommended changes in direction and/or unexpected delays. City Staff Review & Comment: The review and comment by City Staff, with respect to reports and/or other documents, is a critical element to the successful completion of each project and to maintaining the project timeline. Data Sharing: We would request that City staff provide relevant reports, demographic data and any other information that would assist us in completing projects on behalf of the City. All data and information that may impact the various projects and/or tasks assigned are requested to understand where gaps may exist and where new data may need to be developed. 45 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Section 6. Schedule
CDBG Management Task Schedule
Begin Complete Deliverable
Coordinate with Finance to
ensure drawdowns are up to
date / address timeliness issues
Upon
award Ongoing
Complete and submit any
outstanding items for file
and/or complete close out
reporting
Verify the following were
completed:

Annual reports were submitted;
reimbursement requests
processed; SAM reports and
ERR’s completed and in file;
agreements executed; initial
award documents are in file.

Upon
award 2 months
Complete and submit any
outstanding items for file
and/or complete close out
reporting. Ensure items are
properly located in each file,
complete any missing items.

FY 23/24 CAPER 7/2024 9/2024
FY 23/24 CAPER submitted to
HUD
Con Plan Preparation - 1st year
Action Plan 09/2024 05/2025
Facilitate public hearings,
coordinate with stakeholders,
submit final Con Plan and 1st
year action Action Plan to
HUD
Host Workshop for FY 25/26 SubRecipients TBD TBD
Send out invitations, prepare
PPT and handouts, conduct
orientation.

Conduct site visits/subR audits 4/1/25 4/30/25
Schedule visits, conduct
monitoring visits, prepare
reports for file.

Collect Quarterly
Reports/Reimbursement
Requests
10/01/24
01/01/25
04/01/25
07/01/25
10/31/24
01/31/25
04/30/25
07/31/25
Assist and ensure subs submit
by due date (last day of
month following each
quarter).

Audit quarterly reports and
reimbursement requests
11/01/24
02/01/25
05/02/25
07/01/25
11/22/24
02/22/25
05/23/25
07/22/25
Audit and submit
reimbursement packages for
payment processing (audits
may occur as soon as subrecipients submit them).

Ensure reimbursements are
complete and processed.
46 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Collect and audit annual
reports 7/1/24 7/15/24
Summary of
accomplishments for
utilization in the 23/24 CAPER
FY 25/26 Funding Application
Process 1/24 3/24
Distribute and review
schedule, prepare NOFA,
applications available for FY
25/26
CBDG Funded Project Labor
Compliance
Upon
Award Ongoing
Review, coordinate and
ensure CDBG funded projects
are on schedule, in
compliance, and reported to
HUD
*This is an illustration of a typical schedule based on previous City activities; a refined schedule will be produced with detailed tasks after initial kick-off meeting 47 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Section 7. References
Below is a list of references that can be contacted. Consolidate Plans and Action Plans have been prepared for all cities listed herein. A description of responsibilities and work performed is provided in Section 3 – Prior Experience.

Betty Donavanik, Director of Community and Economic Development City of El Monte, 11333 Valley Blvd., El Monte, CA 91731, (626) 580-2056 Viviana McDaniel, Grants Division Manager
City of Moreno Valley, 14177 Frederick Street, Moreno Valley, CA 92553, (951)413-3098 Meredith Elguira, Director of Community Development
City of South Gate, 8650 California Ave, South Gate, CA 90280, (323) 563-9500 Jim DellaLonga, Director of Economic Development
City of Bellflower, 16600 Civic Center Dr., Bellflower, CA 90706, (562) 804-1424 ext. 2224 48 City of Pico Rivera – Professional Services to Administer CDBG Program 05.16.2024 Section 8. Cost Proposal
AVANT-GARDE is proposing the not-to-exceed fee amounts of $126,900 for Year 1, $88,250 for Year 2, and $88,250 for Year 3 with a combined total of $303,400 for all three years. This is inclusive of all program management services and preparation of reports required to be submitted to HUD on an annual basis.

Hours Rate Hours Rate Hours Rate Hours Rate Hours Cost Hours Cost Hours Cost $ 150 $ 135 $ 125 $ 100
CDBG Monitoring and implementation of
public services; quarterly
reports/reimbursements; intitiate new public
services application period; CDBG admin of
CIP's; CAPER & Action Plan 60 $ 9,000 250 $ 33,750 300 $ 37,500 80 $ 8,000 690 $ 88,250.00 690 $ 88,250.00 690 $ 88,250.00 ConPlan *
60 $ 9,000 90 $ 12,150 100 $ 12,500 50 $ 5,000 300 $ 38,650.00 Sub-Totals 120 $ 18,000.00 340 $ 45,900.00 400 $ 50,000.00 130 $ 13,000.00 990 $ 126,900.00 690 $ 88,250.00 690 $ 88,250.00 Total 3 Years
*ConPlan will be billed on a fixed fee % of completion basis Hours may be interchanged amongst staff based on the needs identified and availability of City funds No additional costs will be billed to the City; such as travel, duplication of materials, binding, mailing etc. $ 303,400.00
Sub-Total - Year 2 Sub-Total - Year 3
`
Tasks
Program Director Program Manager Sr. Program Coordinator Program Assistant Sub-Total - Year 1

To: Mayor and City Council
From: City Manager
Meeting Date: June 11, 2024
Subject: CONFLICT OF INTEREST CODE BIENNIAL REVIEW
Recommendation:

1. Direct the City Clerk’s Office to notify City Departments and applicable Agencies to review their Conflict-of-Interest Code pertaining to designated employees to determine if any changes or amendments are necessary.

Fiscal Impact:

There is no fiscal impact to the General Fund.

Background:

The Political Reform Act requires a biennial review of the City of Pico Rivera’s (City’s) Code in even-numbered years in accordance with Government Code Section 87306.

The City’s Code requires designated officials and employees to disclose sources of income, interests in real property, investments and business positions if such interests are located within the jurisdictional boundaries of the City of Pico Rivera.

Discussion:

Pursuant to Government Code Section 87306.5, the City Council must notify City departments and agencies not covered under the City’s Conflict-of-Interest Code (Code) to review its Code no later than July 1st of each even numbered year and submit a biennial notice to the City Council by October 1st of the same year.

Tonight’s City Council action presents the first step in the Code review process. As directed by City Council, the Code will be reviewed to determine whether the position classifications and/or disclosure categories are accurate. Staff will then notify the City Council of any required amendments and present the City Council with an updated Conflict-of-Interest Code for City Council review and approval no later than October 1, 2024. An amended Code is not effective until approved by the City Council.

Steve Carmona
SC:CA:gsm
15 Tuesday, November 14, 2023
A Regular Meeting of the Successor Agency to the Pico Rivera Redevelopment Agency was held in the Council Chamber, Pico Rivera City Hall, 6615 Passons Boulevard, Pico Rivera, California.

Meeting was jointly held with the City Council and the Successor Agency to the Pico Rivera Redevelopment Agency. Items appear as listed on the combined agenda for the meeting of November 14, 2023.

Chairman Lutz called the meeting to order at 6:01 p.m. on behalf of the Successor Agency.

PRESENT: Camacho, Garcia, Lara, Sanchez, Lutz
ABSENT: None
PUBLIC COMMENTS: None
CONSENT CALENDAR:

17. Minutes:
• Received and filed Successor Agency to the Pico Rivera Redevelopment Agency regular meeting of August 1, 2023.

18. Approval of the 2024-25 Recognized Obligation Payment Schedule (ROPS) and Corresponding Administrative Budget. (700)

1. Approved Resolution No. SA-23-28 of the Successor Agency to the Pico Rivera Redevelopment Agency (Successor Agency) approving the Recognized Obligation Payment Schedule (ROPS) for the period of July 1, 2024 – June 30, 2025 and approving of the Successor Agency Administrative Budget for the fiscal year 2024-25.

Resolution No. SA-23-28 A RESOLUTION OF THE SUCCESSOR AGENCY

TO THE PICO RIVERA REDEVELOPMENT AGENCY, ESTABLISHING THE RECOGNIZED OBLIGATION PAYMENT SCHEDULE 2024-25 FOR JULY 1, 2024 THROUGH JUNE 30, 2025, APPROVING THE EXPENDITURE OF

RESERVE AND OTHER FUNDS, APPROVING THE RESERVE OF FUNDS,

AND APPROVING THE ADMINISTRATIVE BUDGET FOR THE FISCAL
YEAR 2024-25
Motion by Director Garcia, seconded by Director Dr. Sanchez to approve Consent Calendar Items No. 17 and 18. Motion carries by the following roll call vote:

AYES: Camacho, Garcia, Lara, Sanchez, Lutz
NOES: None
CONSENT CALENDAR ITEMS PULLED FOR FURTHER DISCUSSION: None 16 11-14-23. Successor Agency Minutes

REGULAR AGENDA: None
CLOSED SESSION(S): None
ADJOURNMENT:

Chairman Lutz adjourned the Successor Agency to the Redevelopment Agency meeting at 7:28 p.m. in memory of Pico Boys former board member, Anthony Garcia and resident Lourdes Abad. There being no objection it was so ordered.

AYES: Camacho, Garcia, Lara, Sanchez, Lutz
NOES: None
________________________________
Andrew C. Lara, Chairman
ATTEST:
_______________________________
Cynthia Ayala, Agency Secretary
I hereby certify that the foregoing is a true and correct report of the proceedings of the Successor Agency to the Pico Rivera Redevelopment Agency regular meeting dated November 14, 2023 and received and filed by the Successor Agency to the Pico Rivera Redevelopment Agency on June 11, 2024.
________________________________
Cynthia Ayala, Agency Secretary
To: Chairman and Directors
From: Executive Director
Meeting Date: June 11, 2024
Subject: RESOLUTION APPROVING THE INVESTMENT POLICY

FOR THE SUCCESSOR AGENCY FOR FISCAL YEAR
2024-2025
Recommendation:

1. Approve a resolution approving the Investment Policy for the Successor Agency for fiscal year (FY) 2024-25 to include Placement Service Funds as permissible investments for the Successor Agency.

Fiscal Impact:

There is no fiscal impact to the General Fund associated with the approval of the above recommendation.

Background:

The Investment Policy (Policy) for the City of Pico Rivera (City) is intended to provide guidelines for the prudent investment of the City's available resources and outline policies for maximizing the efficiency of the City's cash management process. The ultimate goal of an investment policy is to enhance the City’s economic status while protecting its pooled cash. In accordance with California Government Code (Gov.

Code) section 53646(a)(2), an annual rendering of the Policy shall be presented to the Successor Agency (Agency Board) for consideration at a public meeting. Additionally, the Policy states that it will be reviewed at least annually and presented to the Agency Board for review and approval.

Discussion:

The primary objective of the Policy is to provide a framework of approved securities in which the City can legally invest. The Policy drives the cash, treasury, and investment management functions of the City, and serves as a guide for setting and achieving program objectives, defining rules, establishing benchmarks, and reducing exposure to risks. It is also important to note that rating agencies pay close attention to a city’s investment policy and portfolio in determining its credit rating, which is a key element when seeking financing options for the City.
17 SUCCESSOR AGENCY TO PRRA AGENDA REPORT- MEETING OF JUNE 11, 2024

APPROVE A RESOLUTION APPROVING THE INVESTMENT POLICY FOR THE SUCCESSOR AGENCY FOR FISCAL YEAR 2024-2025

The Policy is based on Gov. Code sections 53600 through 53609; and 53630 through 53686. These laws, as well as guidelines set forth by the Association of Public Treasurers of the United States and Canada, the California Debt and Investment Advisory Commission (CDIAC), the California Municipal Treasurers Association (CMTA), and the Government Finance Officers Association (GFOA), have aided City staff in policy development. The state laws and established guidelines encompass a broad array of allowable investments and investment standards to suit the different needs of California's local agencies. The Policy is more conservative than what is allowed by state law as it further restricts the percentage of allowable credit investments. The Policy applies to the City's Pooled Investment Portfolio, Bond Proceeds Portfolio, and Special Districts Portfolio. These portfolios encompass all funds under the oversight of the City Treasurer or approved designee.

Currently, the City utilizes the services of Chandler Asset Management (Chandler), the City’s investment adviser, to invest and manage $32 million of the City’s idle cash, which ranges from $120 to $125 million. The remaining funds are invested in the Local Agency Investment Fund (LAIF) operated by the State Treasurer and in the Commercial Bank of California Insured Cash Sweep.

To ensure the portfolio’s safety, the City only selects investments with the highest credit quality. The Chandler Managed Portfolio is composed primarily of Treasury Securities and Federal Government-sponsored entity debt, otherwise known as federal agency securities. Federal agency securities, such as Federal National Mortgage Association (Fannie Mae) and Federal Home Loan Mortgage Corporation (Freddie Mac), benefit from the backing of the Federal government.

Utilizing CMTA guidelines, the Government Code, and the expertise of Chandler, the Policy is presented in Exhibit A of the resolution. The Government Code allows for a limited scope of investments since public funds are invested, and the overall goal is the preservation of these funds. It is in the City’s best interest to fully avail itself of the investments allowed per Government Code section 53600, et seq.

The City submitted the attached Policy to the CMTA after it was adopted on August 1, 2023. It was independently evaluated by three (3) raters and was given a passing score by each rater. The passing score earned the City a “Certified” distinction.

Since then, the Government Code has updated its recommendations for the following, which are all reflected in Exhibit A:
• (8.0 Authorized and Suitable Investments) Investments are prohibited to have a forward settlement in excess of 45 days from the date of investment. • (18.0 Reporting) Quarterly reporting is now required within 45 days, rather than 30 days.
• (20.0 Glossary) Remaining maturity shall be measured from settlement date to SUCCESSOR AGENCY TO PRRA AGENDA REPORT- MEETING OF JUNE 11, 2024

APPROVE A RESOLUTION APPROVING THE INVESTMENT POLICY FOR THE SUCCESSOR AGENCY FOR FISCAL YEAR 2024-2025

final maturity, rather than the commonly interpreted trade date.

Chandler also reviewed the Policy and made these recommended changes. After these revisions, the Policy is still in line with best practices to ensure security, maintain liquidity, and seek yield where appropriate. This proposed Policy adheres to CMTA’s best practices and demonstrates to external rating agencies that the City is committed to safeguarding taxpayer dollars and taking full advantage of investments, as allowed per Gov. Code section 53600, et seq.

The Administrative Services Department presents the monthly investment transaction report and the quarterly investment report to the Agency Board in line with the recommendations and requirements set by the CMTA and the State of California. City staff will continue reviewing the Policy on an annual basis and present the investment transaction report monthly and the Schedule of Investment quarterly to the Agency Board.

Conclusion:

Staff recommends the Agency Board approve a resolution (Enclosure 1) ratifying the Investment Policy for the City of Pico Rivera for FY 2024-25 to help ensure the safety and liquidity of the City’s idle cash. The enclosed Policy conforms to Government Code sections 53600 through 53609; and 53630 through 53686. All permitted investment types are represented in Exhibit A within Enclosure 1.

Steve Carmona
SC:AG:KL:HD:ep
Enclosure: 1) Resolution/Exhibit A
RESOLUTION NO. SA-24-__

A RESOLUTION OF THE SUCCESSOR AGENCY TO THE DISSOLVED

REDEVELOPMENT AGENCY OF THE CITY OF PICO RIVERA,
CALIFORNIA, APPROVING THE “INVESTMENT POLICY” FOR FISCAL YEAR 2024-25
WHEREAS, the City of Pico Rivera and the Successor Agency to the Dissolved Redevelopment Agency of the City of Pico Rivera (“Successor Agency”) have funds not required to satisfy immediate financial obligations; and WHEREAS, the subject funds should be wisely and prudently invested in approved investment instruments; and
WHEREAS, the Investment Policy for the City of Pico Rivera and Successor Agency (the “Policy”), attached hereto as Exhibit A and made part of this Resolution, states it should be reviewed and approved by the City Council at least annually at a public meeting; and
WHEREAS, the City’s and Successor Agency’s Treasurer/Director of Administrative Services and the City’s outside investment advisor, Chandler Asset Management, have determined that the existing and amended Policy adequately complies with California Government Code Section 53600, et seq., government investment requirements; and WHEREAS, the Policy was presented and considered by the City and Successor Agency for ratification at a duly noticed public meeting as required under Government Code Section 53646(a).

NOW, THEREFORE, BE IT RESOLVED by the Successor Agency to the Dissolved Redevelopment Agency of the City of Pico Rivera as follows:

SECTION 1. The Policy is hereby ratified and adopted for FY 2024-25 pursuant to the requirements outlined in Government Code Section 53600, et seq.

SECTION 2. The Successor Agency Secretary shall attest to the passage of this resolution, and it shall thereupon be in full force and effect.

APPROVED AND PASSED this 11th day of June 2024.
________________________________
Andrew C. Lara, Chairman
ATTEST: APPROVED AS TO FORM:
_____________________________ ________________________________ Cynthia Ayala, Agency Secretary Arnold M. Alvarez-Glasman, Agency Counsel AYES:

NOES:

Enclosure 1
17a
Page | i

CITY OF PICO RIVERA
Administrative Services Department
Investment Policy for
the City of Pico Rivera
and Successor Agency
Exhibit A
City of Pico Rivera
Investment Policy

Page | ii

TABLE OF CONTENTS

1.0 Policy ..............................................................................3

2.0 Scope..............................................................................3

3.0 Prudence.........................................................................4

4.0 Objective ........................................................................5

5.0 Delegation of Authority ...................................................6

6.0 Ethics and Conflicts of Interest .......................................7

7.0 Authorized Financial Dealers and Institutions .................8

8.0 Authorized and Suitable Investments..............................8

9.0 Review of Investment Portfolio .....................................14

10.0 Investment Pools/Mutual Funds....................................14

11.0 Collateralization............................................................15

12.0 Safekeeping and Custody.............................................15

13.0 Diversification ...............................................................16

14.0 Maximum Maturities......................................................16

15.0 Internal Controls ...........................................................17

16.0 Cash Management .......................................................17

17.0 Performance Standards................................................18

18.0 Reporting......................................................................18

19.0 Investment Policy Adoption...........................................19

20.0 Glossary .......................................................................20 City of Pico Rivera
Administrative Services Department
6615 Passons Boulevard
Pico Rivera, CA 90660
Phone 562.801.4392 • Fax 562.942.8828
City of Pico Rivera
Investment Policy June 2024
Page | 3

1.0 Policy
The purpose of this document is to provide guidelines for the prudent investment of the City and Successor Agency’s idle cash and outline policies for maximizing the efficiency of the City/Successor Agency’s cash management system. The ultimate goal is to ensure security, maintain liquidity, and seek yield where appropriate. This investment policy is in accordance with the provisions in Sections 16429.1 and 53600 through 53684 of the California Government Code. (For the purposes of the remainder of this policy, any reference to “City” is inclusive of the Successor Agency.)

2.0 Scope
Included in the scope of the City’s investment policy are the following major guidelines and practices to be used in achieving the City’s primary investment objectives:
• Investment Authority and Responsibilities
• Eligible Financial Institutions
• Authorized Investments
• Investment Parameters
• Cash Management
• Evaluation of Investment Performance
• Investment Reporting
• Investment Policy Review and Adoption
It is intended that this policy cover all funds and investment activities under the direct authority of the City of Pico Rivera, Pico Rivera Successor Agency (formerly known as the Redevelopment Agency), Pico Rivera Housing Assistance Agency, the Pico Rivera Water Authority, and all other funds and investment activities under the direct authority of the Pico Rivera City Treasurer, except for bond proceeds which are governed by their respective indenture agreements.

Subject to the prior written consent and approval of the City Treasurer and City Manager, City of Pico Rivera
Investment Policy June 2024
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financial assets held and invested by trustees or fiscal agents are excluded from this policy. However, such assets are nevertheless subject to the regulations established by the State of California pertaining to investments by local agencies as well as the related bond indentures.

3.0 Prudence
Pursuant to California Government Code, Section 53600.3, all persons authorized to make investment decisions on behalf of the City are trustees and therefore fiduciaries subject to the Prudent Investor Standard:
“…all governing bodies of local agencies or persons authorized to make investment decisions on behalf of those local agencies investing public funds pursuant to this chapter are trustees and therefore fiduciaries subject to the prudent investor standard. When investing, reinvesting, purchasing, acquiring, exchanging, selling, or managing public funds, a trustee shall act with care, skill, prudence, and diligence under the circumstances then prevailing, including, but not limited to, the general economic conditions and the anticipated needs of the Agency, that a prudent person acting in a like capacity and familiarity with those matters would use in the conduct of funds of a like character and with like aims, to safeguard the principal and maintain the liquidity needs of the Agency.

Within the limitations of this section and considering individual investments as part of an overall strategy, investments may be acquired as authorized by law.” Investment officers and other authorized persons responsible for managing City funds acting in accordance with written procedures and this investment policy and exercising due diligence shall be relieved of personal responsibility for an individual security’s credit risk or market price changes provided that the Investment officers or other authorized persons acted in good faith. Deviations from expectations of a security’s credit or market risk should be reported to the governing body in a timely fashion and appropriate action should be taken to control adverse developments.

City of Pico Rivera
Investment Policy June 2024
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4.0 Objective
In accordance with Government Code Section 53600.5, the primary objectives, in priority order, of investment activities shall be safety, liquidity, and yield:

Safety
Safety of principal is the foremost objective of the investment program. Investments shall be undertaken in a manner that seeks to ensure the preservation of capital in the overall portfolio. The objective will be to mitigate credit risk and interest rate risk.

Credit Risk – is the risk of loss due to the failure of an issuer of a security. The City will minimize credit risk by:
o Limiting investments to the safest types of securities o Diversifying the investment portfolio so that potential losses on individual securities will be minimized.

Market Rate Risk – is the risk of market fluctuations due to overall changes in the general level of interest rates. The City will minimize the market rate risk by:
o Structuring the investment portfolio so that securities mature to meet cash requirements for ongoing operations, thereby avoiding the need to sell securities on the open market prior to maturity
o Investing operating funds primarily in shorter-term securities, money market mutual funds, or similar investment pools
Liquidity
The investment portfolio shall remain sufficiently liquid to meet all operating requirements that may be reasonably anticipated. This is accomplished by structuring the portfolio so that securities mature concurrent with cash needs to meet anticipated demands (static liquidity). Furthermore, since all possible cash demands cannot be anticipated, the portfolio should consist largely of securities with active secondary or resale markets City of Pico Rivera
Investment Policy June 2024
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(dynamic liquidity). A portion of the portfolio also will be placed in money market mutual funds or local government investment pools which offer same-day liquidity for short term funds.

Yield
The investment portfolio shall be designed with the objective of attaining a market rate of return throughout budgetary and economic cycles, taking into account the investment risk constraints and liquidity needs. Return on investment is of secondary importance compared to the safety and liquidity objectives described above. The City will invest in relatively low risk securities in anticipation of earning a fair return relative to the risk being assumed. Securities shall not normally be sold prior to maturity with the following exceptions:
o A security with declining credit may be sold early to minimize loss of principal.
o A security swap would improve the quality, yield, or target duration in the portfolio.
o Liquidity needs of the portfolio require that the security be sold.

5.0 Delegation of Authority
The City Council is responsible for the management of the City’s funds, including the administration of this investment policy. Management responsibility for the cash management of the City’s funds is hereby delegated to the Treasurer.

The Treasurer will be responsible for all transactions undertaken and will establish a system of procedures and controls to regulate the activities of subordinate officials and employees. Such procedures will include explicit delegation of authority to persons responsible for investment transactions. No person may engage in an investment transaction except as provided under the terms of this policy and the procedures established by the Treasurer.

City of Pico Rivera
Investment Policy June 2024
Page | 7
The City may engage the services of one or more external investment advisers, who are registered under the Investment Advisers Act of 1940, to assist in the management of the City’s investment portfolio in a manner consistent with the City’s objectives. External investment advisers may be granted discretion to purchase and sell investment securities in accordance with this investment policy.

The City's overall investment program shall be designed and managed with a degree of professionalism that is worthy of the public trust. The City recognizes that in a diversified portfolio, occasional measured losses may be inevitable and must be considered within the context of the overall portfolio’s return and the cash flow requirements of the City.

6.0 Ethics and Conflicts of Interest
The City adopts the following policy concerning conflicts of interest:

Officers and employees involved in the investment process shall refrain from personal business activity that could conflict with proper execution and management of the investment program, or that could impair their ability to make impartial decisions.

Officers and employees involved in the investment process shall disclose to the City Clerk any material interest in financial institutions that conduct business with the City of Pico Rivera and they shall further disclose any personal financial/investment positions that could be related to the performance of the City’s investment portfolio.

Officers and employees shall not undertake personal investment transactions with the same individual with whom business is conducted on behalf of the City.

If there is an event subject to disclosure that could impair the ability of an officer or employee to make impartial decisions, the officer or employee must notify the City Manager in writing within ten (10) days.

City of Pico Rivera
Investment Policy June 2024
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7.0 Authorized Financial Dealers and Institutions
Pursuant to the State Code, Section 53601.5, the City shall transact business only with issuers, banks, savings and loans and registered investment securities dealers. The purchase of any investment, other than those purchased directly from the issuer, shall be purchased either from an institution licensed by the State of California as a broker/dealer, as defined in Section 25004 of the Corporations Code, who is a member of the National Association of Securities Dealers or a member of a Federally regulated securities exchange, a National or State-Chartered Bank, a Federal or State Association (as defined by Section 5102 of the Financial Code), or a brokerage firm designated as a Primary Government Dealer by the Federal Reserve Bank.

The Director of Finance will maintain a list of financial institutions authorized to provide investment services to the City, will not give full discretionary authority to external investment managers and will not use external investment managers to purchase or sell securities or manage the City’s portfolio unless specifically approved by the City Council with a contract signed by the Mayor and City Attorney.

8.0 Authorized and Suitable Investments
Investment of City funds is governed by the California Government Code Sections 16429.1 and 53601. Investments may not have a term or maturity at the time of investment of longer than that authorized by Section 53601 or five (5) years unless the City Council has granted prior express authority. The percentage limitations shall apply to investments at the time of purchase. This investment policy further restricts the permitted investments to those below:

State Treasurer Local Agency Investment Fund (LAIF)
Government Code Section 16429.1: The City may invest up to the maximum amount pursuant to LAIF policy. LAIF is a diversified investment pool administered by the California State Treasurer. Monies invested with LAIF are pooled with State monies in City of Pico Rivera
Investment Policy June 2024
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order to earn the maximum rate of return consistent with safe and prudent treasury management. The City, Housing Authority and Successor Agency have separate accounts, so the combined limit is three times the LAIF Policy maximum.

Local Government Investment Pools
Government Code Section 53601(p): The City may invest in a joint powers authority organized pursuant to Section 6509.7 that invests in the securities and obligations authorized in 53601 (a) to (q), inclusive. There is no issuer limitation for Local Government Investment Pools.

US Government and Federal Agency Obligations
Government Code Sections 53601 (b) and (f): There is no limitation on the maximum of the City’s portfolio that may be invested in U.S. government obligations, U.S. government agency obligations, and U.S. government instrumentality obligations, which have a liquid market with a readily determinable market value. The maximum percent of agency callable securities in the total portfolio will be 20%.

Bankers Acceptances
Government Code Section 53601 (g): Up to twenty percent (20%) of the City’s total portfolio may be invested in Bankers Acceptances which are defined as bills of exchange or time drafts, drawn on and accepted by a commercial bank, which are eligible for purchase by the Federal Reserve System, although no more than 5% of the total portfolio may be invested in Bankers Acceptances with any one commercial bank. Additionally, the maturity periods cannot exceed 180 days. Government Code Section 53601(g) allows 40% (30% with one bank).

Municipal Securities
Government Code Section 53601 (C): Up to 30% of the City’s total portfolio may be invested in obligations of the City, the State of California and any local agency within in City of Pico Rivera
Investment Policy June 2024
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the State of California. The securities must be “A” rated by one NRSRO. No more than 5% per issuer.

Government Code Section 53601 (D): Up to 30% of the City’s total portfolio may be invested in obligations of any of the other 49 states in addition to California, including bonds payable solely out of the revenues from a revenue-producing property owned, controlled, or operated by a state or by a department, board, agency, or authority of any of the other 49 states, in addition to California. The securities must be in the rating category of “A” rated by one NRSRO. No more than 5% per issuer.

Commercial Paper
Government Code Section 53601 (h): A maximum of twenty-five percent (25%) of the City’s portfolio may be invested in highest short-term rating category tier (e.g. A-1, P-1, F-1 or higher) commercial paper as rated by Moody’s, Standard and Poor’s or Fitch rating service. Issuing corporations must be organized and operating in the United States, have $500 million total assets, and have at least an “A” rating category (by Moody’s, Standard and Poor’s or Fitch) on debt other than commercial paper. The maturity period cannot exceed 270 days. No more than 5% of the portfolio may be invested in any single issuer.

Repurchase Agreements
Government Code Section 53601 (j): Although permitted by State Statute, repurchase agreements and reverse repurchase agreements will not be used without prior City Council approval.

Certificates of Deposit and Passbook Savings Accounts
Government Code Section 53601 (i): There is no limit as to the amount of the investment portfolio that may be deposited in passbook savings accounts. Negotiable certificates of deposit are limited to thirty percent (30%) of the City’s total portfolio which may be invested. For Negotiable certificates of deposits greater than the FDIC insured amount, City of Pico Rivera
Investment Policy June 2024
Page | 11
the issuer must be have short term ratings category of “A-1” or long term ratings of “A” by a NRSRO. No more than 5% of the portfolio may be invested in any single issuer.

Corporate Medium Term Notes
Government Code Section 53601 (k): A maximum of 30% of the City’s total portfolio may be invest in corporate medium term notes. The issuer is a corporation organized and operating within the United States or by depository institutions licensed by the United States or any state and operating within the United States. The securities are rated in a rating category of “A” or its equivalent or better by at least one NRSRO. No more than 5% of the portfolio may be invested in any single issuer.

Asset Backed, Mortgage-Backed, Mortgage Pass-Through Securities, and Collateralized Mortgage Obligations.

Government Code Section 53601 (o): A maximum of 20% of the City’s total portfolio may be invested in the above mentioned securities from issuers not defined in US Government and Federal Agency Obligations section. The securities must be rated in rating category of “AA” or better by one NRSRO. No more than 5% of the total portfolio may be invested in any single issuer.

Supranational Securities
Government Code Section 53601 (q): A maximum of 20% of the City’s total portfolio may be invested in Supranational securities. The City can only purchase US dollar denominated senior unsecured unsubordinated obligations issued or unconditionally guaranteed by the International Bank for Reconstruction and Development, International Finance Corporation, or Inter-American Development Bank. The securities must be rated “AA” rating category or better by one NRSRO. No more than 10% of the total portfolio may be invested in any single issuer.

City of Pico Rivera
Investment Policy June 2024
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Money Market Funds
Government Code Section 53601 (l): Shares of beneficial interest issued by diversified management companies that are money market funds registered with the Securities and Exchange Commission under the Investment Company Act of 1940 (15 U.S.C. Sec 80al et seq.) may be purchased if they meet the requirements of Government Code Section 53601 (l). No more than 20 percent of the total portfolio of the investments held by a local agency may be invested in mutual funds, and no more than 10 percent in any one mutual fund.

Placement Service Deposits
Government Code Section 53601.8: A local agency that has the authority under law to invest funds, at its discretion, may invest a portion of its surplus funds in deposits at a commercial bank, savings back, savings and loan association, or credit union that uses a private sector entity that assists in the placement of deposits. The private placement service that allows local agencies to purchase more than $250,000 in demand deposits, money market accounts, or CDs from a single financial institution while still maintaining FDIC insurance coverage. The financial institution facilitates the trading of deposits among the participating institutions in amounts that are less than $250,000 each so that FDIC coverage is maintained. No more than 50 percent of the total portfolio held by a local agency may be invested in a combination of placement service funds (e.g., CDARS) and Certificates of Deposit. Under a provision sunsetting on January 1, 2026, the maximum percentage of the total portfolio reverts back to 30%.

Other Investments
Other investments that are or become legal investments pursuant to the State of California Government Code may be purchased only after the specific approval by the City Council.

City of Pico Rivera
Investment Policy June 2024
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Prohibited Investments
The City of Pico Rivera shall not invest in any investment instrument/pool/fund unless specifically allowed under the “Investment Types” section of this policy.

The City of Pico Rivera shall comply with Government Code Section 53631.5 which states, “[a] local agency shall not invest any funds pursuant to this article in inverse floaters, range notes, or interest-only strips that are derived from a pool of mortgages” and that “[a] local agency shall not invest any funds pursuant to this article in any security that could result in zero interest accrual if held to maturity.” Under a provision sunsetting on January 1, 2026, securities backed by the U.S. Government that could result in a zeroor negative-interest accrual if held to maturity are permitted.

The purchase of a security with a forward settlement date exceeding 45 days from the time of the investment is prohibited.

City of Pico Rivera
Investment Policy June 2024
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Legislative Changes
Any State of California legislative action that further restricts allowable maturities, investment types or percentage allocations will be incorporated into the City of Pico Rivera Investment Policy and supersede any and all previous applicable language. If the City is holding an investment that is subsequently prohibited by a legislative change, the City may hold that investment, if it is deemed prudent by the Investment Officer, until the maturity date to avoid an unnecessary loss.

9.0 Review of Investment Portfolio
The securities held at the City of Pico Rivera must be in compliance with Section 8.0 Authorized and Suitable Investments at the time of purchase. Because some securities may not comply with Section 8.0 Authorized and Suitable Investments subsequent to the date of purchase, The Treasurer shall at least annually review the portfolio to identify those securities that so not comply. The Treasurer shall establish procedures to report to the City of Pico Rivera and to its oversight committee, should one exist, major and critical incidences of noncompliance identified through the review of the portfolio.

10.0 Investment Pools/Mutual Funds
As stated, a thorough investigation of an investment pool or mutual fund is required prior to investing and on a continual basis. At a minimum, the following information shall be on file for each pool and/or mutual fund:

1. A description of eligible investment securities, and a written statement of investment policy and objectives;

2. A description of interest calculations, how interest is distributed, and how gains and losses are treated;
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3. A description of how these securities are safeguarded (including the settlement process), and how often these securities are priced and the program audited;

4. A description of who may invest in the program, how often, and the size of deposits and withdrawals;

5. A schedule for receiving statements and portfolio listings;

6. Whether reserves, retained earnings, etc. are utilized by the pool/fund;

7. A fee schedule and when and how fees are assessed; and

8. Whether the pool/fund is eligible for bond proceeds and/or will it accept such proceeds.

11.0 Collateralization
California law requires that public funds be collateralized. The depository must secure its public fund accounts by maintaining with the agent of the depository government securities having a market value of at least one hundred ten percent (110%) of the value of the public fund accounts. If a depository uses mortgage-backed securities (i.e., promissory notes secured by first mortgages or first deeds of trust) as collateral for public deposits, the market value of the mortgage-backed securities must be at least one hundred fifty percent (150%) of the value of the public fund accounts.

The collateralization requirement may be waived to the extent that funds are federally insured (currently up to $250,000 per institution). For deposits equivalent to the maximum insured amount, security may also be waived for interest accrued on the deposit provided the interest is computed by the depository on the average daily balance of the deposits, paid monthly and computed on a 360-day basis.

12.0 Safekeeping and Custody
Securities will be held by an independent third-party custodian selected by the City as evidenced by safekeeping receipts in the City’s name and monthly reports from the custodian. All investment transactions shall be conducted on a delivery-versus-payment City of Pico Rivera
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basis.

13.0 Diversification
The investments shall be diversified by:
• The diversification requirements included in the “Authorized Investments” section of this policy are designed to mitigate credit risk in the portfolio. No more than 5% of the total portfolio may be deposited with or invested in securities issued by any single issuer unless otherwise specified in this policy. • Avoiding investment in securities that have low ratings • Investing in securities with varying maturities, and
• Continuously investing a portion of the portfolio in readily available funds such as local government investment pools (LAIF), or money market funds to ensure that appropriate liquidity is maintained in order to meet ongoing obligations.

14.0 Maximum Maturities
In order to minimize the impact of market risk, it is intended that all investments will be held to maturity.

To the extent possible, the City shall attempt to match its investments with anticipated cash flow requirements. Unless matched to a specific cash flow, the City will not directly invest in securities maturing more than five (5) years from the date of purchase or in accordance with state and local statutes and ordinances.

Investments may be sold prior to maturity for cash flow, appreciation purposes or in order to limit losses; however, no investment shall be made based solely on earnings anticipated from capital gains.

Because of inherent difficulties in accurately forecasting cash flow requirements, a portion of the portfolio should be continuously invested in readily available funds.

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15.0 Internal Controls
The Director of Finance is responsible for establishing and maintaining an internal control structure designed to ensure that the assets of the City are protected from loss, theft or misuse. The internal control structure shall be designed to provide reasonable assurance that these objectives are met. The concept of reasonable assurance recognizes that (1) the cost of a control should not exceed the benefits likely to be derived and (2) the valuation of costs and benefits requires estimates and judgments by management.

Accordingly, the investment officer shall establish a process for an annual independent review by an external auditor to assure compliance with policies and procedures. The internal controls shall address the following points:
• Control of collusion.
• Separation of transaction authority from accounting and recordkeeping. • Custodial safekeeping.
• Avoidance of physical delivery securities.
• Clear delegation of authority to subordinate staff members. • Written confirmation of transactions for investments and wire transfers. • Development of a wire transfer agreement with the lead bank and third party custodian

16.0 Cash Management
To obtain a reasonable return on public funds, the following cash management practices will be followed:
• Maintain maximum investment of all City funds not required to meet immediate cash flow needs.
• Except for cash in certain restricted and special funds, the City will consolidate cash balances from all funds to maximize investment earnings. Investment City of Pico Rivera
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income will be allocated to the various funds based on their respective participation and in accordance with generally accepted accounting principles. • Maximize the City’s cash flow through immediate deposit of all receipts, use of direct deposit when available, and appropriate timing of payment to vendors. • Maximize cash flow information available through the use of only one operating bank account.

17.0 Performance Standards
The investment portfolio will be designed to obtain a market average rate of return during budgetary and economic cycles, taking into account the City’s investment risk constraints and cash flow needs.

The investment portfolio shall be structured to optimize the return given the risk constraints and cash flow needs.

Investment performance shall be continually monitored and evaluated by the Investment Officer. Investment performance statistics and activity reports shall be generated on a quarterly basis for presentation to the City Council.

The Investment officer shall monitor and evaluate the portfolio’s performance relative to the chosen market benchmark(s), which will be included in the quarterly investment report. The Investment officer shall select an appropriate, readily available index to use as a market benchmark.

18.0 Reporting
Monthly transaction reports will be submitted by the Treasurer to the City Council within 45 days of the end of the reporting period in accordance with California Government Code Section 53607. The City Treasurer shall prepare and submit a quarterly investment report to the City Council. This report will include the following elements relative to the investments held at quarter-end.

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1. Face value

2. Security description

3. Coupon rate

4. Maturity date

5. Investment rating

6. Investment type

7. Purchase date

8. Cost of security

9. Purchase yield

10. Estimated market value

11. Amortized premium/discount

12. Statement relating the report to the Statement of Investment Policy

13. Statement of sufficiency of funds to meet the next six months’ obligations

19.0 Investment Policy Adoption
The Statement of Investment Policy shall be submitted annually to the City Council for adoption. The policy shall be reviewed at least annually to ensure its consistency with the overall objectives of the City and its relevance to current law and financial and economic trends. Any modifications made thereto must be approved by the City Council.

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20.0 Glossary
AGENCIES. Shorthand market terminology for any obligation issued by a governmentsponsored entity (GSE), or a federally related institution. Most obligations of GSEs are not guaranteed by the full faith and credit of the US government. Examples are:

FFCB. The Federal Farm Credit Bank System provides credit and liquidity in the agricultural industry. FFCB issues discount notes and bonds.

FHLB. The Federal Home Loan Bank provides credit and liquidity in the housing market. FHLB issues discount notes and bonds.

FHLMC. Like FHLB, the Federal Home Loan Mortgage Corporation provides credit and liquidity in the housing market. FHLMC, also called “FreddieMac” issues discount notes, bonds and mortgage pass-through securities.

FNMA. Like FHLB and FreddieMac, the Federal National Mortgage Association was established to provide credit and liquidity in the housing market. FNMA, also known as “FannieMae,” issues discount notes, bonds and mortgage passthrough securities.

GNMA. The Government National Mortgage Association, known as “GinnieMae,” issues mortgage pass-through securities, which are guaranteed by the full faith and credit of the US Government.

PEFCO. The Private Export Funding Corporation assists exporters. Obligations of PEFCO are not guaranteed by the full faith and credit of the US government.

TVA. The Tennessee Valley Authority provides flood control and power and promotes development in portions of the Tennessee, Ohio, and Mississippi River valleys. TVA currently issues discount notes and bonds.

ASKED. The price at which a seller offers to sell a security.

ASSET BACKED SECURITIES. Securities supported by pools of installment loans or leases or by pools of revolving lines of credit.

AVERAGE LIFE. In mortgage-related investments, including CMOs, the average time to expected receipt of principal payments, weighted by the amount of principal expected.

BANKER’S ACCEPTANCE. A money market instrument created to facilitate international trade transactions. It is highly liquid and safe because the risk of the trade transaction is transferred to the bank which “accepts” the obligation to pay the investor.

BENCHMARK. A comparison security or portfolio. A performance benchmark is a partial market index, which reflects the mix of securities allowed under a specific investment policy.

BID. The price at which a buyer offers to buy a security.

BROKER. A broker brings buyers and sellers together for a transaction for which the broker receives a commission. A broker does not sell securities from his own position.

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CALLABLE. A callable security gives the issuer the option to call it from the investor prior to its maturity. The main cause of a call is a decline in interest rates. If interest rates decline since an issuer issues securities, it will likely call its current securities and reissue them at a lower rate of interest. Callable securities have reinvestment risk as the investor may receive its principal back when interest rates are lower than when the investment was initially made.

CERTIFICATE OF DEPOSIT (CD). A time deposit with a specific maturity evidenced by a certificate. Large denomination CDs may be marketable.

CERTIFICATE OF DEPOSIT ACCOUNT REGISTRY SYSTEM (CDARS). A private placement service that allows local agencies to purchase more than $250,000 in CDs from a single financial institution (must be a participating institution of CDARS) while still maintaining FDIC insurance coverage. CDARS facilitates the trading of deposits between the California institution and other participating institutions in amounts that are less than $250,000 each, so that FDIC coverage is maintained.

COLLATERAL. Securities or cash pledged by a borrower to secure repayment of a loan or repurchase agreement. Also, securities pledged by a financial institution to secure deposits of public monies.

COLLATERALIZED MORTGAGE OBLIGATIONS (CMO). Classes of bonds that redistribute the cash flows of mortgage securities (and whole loans) to create securities that have different levels of prepayment risk, as compared to the underlying mortgage securities.

COMMERCIAL PAPER. The short-term unsecured debt of corporations.

COST YIELD. The annual income from an investment divided by the purchase cost.

Because it does not give effect to premiums and discounts which may have been included in the purchase cost, it is an incomplete measure of return.

COUPON. The rate of return at which interest is paid on a bond.

CREDIT RISK. The risk that principal and/or interest on an investment will not be paid in a timely manner due to changes in the condition of the issuer.

CURRENT YIELD. The annual income from an investment divided by the current market value. Since the mathematical calculation relies on the current market value rather than the investor’s cost, current yield is unrelated to the actual return the investor will earn if the security is held to maturity.

DEALER. A dealer acts as a principal in security transactions, selling securities from and buying securities for his own position.

DEBENTURE. A bond secured only by the general credit of the issuer.

DELIVERY VS. PAYMENT (DVP). A securities industry procedure whereby payment for a security must be made at the time the security is delivered to the purchaser’s agent.

DERIVATIVE. Any security that has principal and/or interest payments which are subject to uncertainty (but not for reasons of default or credit risk) as to timing and/or amount, or any security which represents a component of another security which has been separated from other components (“Stripped” coupons and principal). A derivative City of Pico Rivera
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is also defined as a financial instrument the value of which is totally or partially derived from the value of another instrument, interest rate, or index.

DISCOUNT. The difference between the par value of a bond and the cost of the bond, when the cost is below par. Some short-term securities, such as T-bills and banker’s acceptances, are known as discount securities. They sell at a discount from par, and return the par value to the investor at maturity without additional interest. Other securities, which have fixed coupons, trade at a discount when the coupon rate is lower than the current market rate for securities of that maturity and/or quality.

DIVERSIFICATION. Dividing investment funds among a variety of investments to avoid excessive exposure to any one source of risk.

DURATION. The weighted average time to maturity of a bond where the weights are the present values of the future cash flows. Duration measures the price sensitivity of a bond to changes in interest rates. (See modified duration).

FEDERAL FUNDS RATE. The rate of interest charged by banks for short-term loans to other banks. The Federal Reserve Bank through open-market operations establishes it.

FEDERAL OPEN MARKET COMMITTEE. A committee of the Federal Reserve Board that establishes monetary policy and executes it through temporary and permanent changes to the supply of bank reserves.

LEVERAGE. Borrowing funds in order to invest in securities that have the potential to pay earnings at a rate higher than the cost of borrowing.

LIQUIDITY. The speed and ease with which an asset can be converted to cash.

LOCAL AGENCY INVESTMENT FUND (LAIF). A voluntary investment fund open to government entities and certain non-profit organizations in California that is managed by the State Treasurer’s Office.

LOCAL GOVERNMENT INVESTMENT POOL. Investment pools that range from the State Treasurer’s Office Local Agency Investment Fund (LAIF) to county pools, to Joint Powers Authorities (JPAs). These funds are not subject to the same SEC rules applicable to money market mutual funds.

MAKE WHOLE CALL. A type of call provision on a bond that allows the issuer to pay off the remaining debt early. Unlike a call option, with a make whole call provision, the issuer makes a lump sum payment that equals the net present value (NPV) of future coupon payments that will not be paid because of the call. With this type of call, an investor is compensated, or "made whole."
MARGIN. The difference between the market value of a security and the loan a broker makes using that security as collateral.

MARKET RISK. The risk that the value of securities will fluctuate with changes in overall market conditions or interest rates.

MARKET VALUE. The price at which a security can be traded.

MARKING TO MARKET. The process of posting current market values for securities in a portfolio.

MATURITY. The final date upon which the principal of a security becomes due and payable.

The investment’s term or remaining maturity is measured from the settlement date to final maturity.

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MEDIUM TERM NOTES. Unsecured, investment-grade senior debt securities of major corporations which are sold in relatively small amounts on either a continuous or an intermittent basis. MTNs are highly flexible debt instruments that can be structured to respond to market opportunities or to investor preferences.

MODIFIED DURATION. The percent change in price for a 100 basis point change in yields.

Modified duration is the best single measure of a portfolio’s or security’s exposure to market risk.

MONEY MARKET. The market in which short-term debt instruments (T-bills, discount notes, commercial paper, and banker’s acceptances) are issued and traded.

MORTGAGE PASS-THROUGH SECURITIES. A securitized participation in the interest and principal cash flows from a specified pool of mortgages. Principal and interest payments made on the mortgages are passed through to the holder of the security.

MUNICIPAL SECURITIES. Securities issued by state and local agencies to finance capital and operating expenses.

MUTUAL FUND. An entity which pools the funds of investors and invests those funds in a set of securities which is specifically defined in the fund’s prospectus. Mutual funds can be invested in various types of domestic and/or international stocks, bonds, and money market instruments, as set forth in the individual fund’s prospectus. For most large, institutional investors, the costs associated with investing in mutual funds are higher than the investor can obtain through an individually managed portfolio.

NATIONALLY RECOGNIZED STATISTICAL RATING ORGANIZATION (NRSRO).

A credit rating agency that the Securities and Exchange Commission in the United States uses for regulatory purposes. Credit rating agencies provide assessments of an investment's risk. The issuers of investments, especially debt securities, pay credit rating agencies to provide them with ratings. The three most prominent NRSROs are Fitch, S&P, and Moody's.

NEGOTIABLE CD. A short-term debt instrument that pays interest and is issued by a bank, savings or federal association, state or federal credit union, or state-licensed branch of a foreign bank. Negotiable CDs are traded in a secondary market and are payable upon order to the bearer or initial depositor (investor).

PLACEMENT SERVICE DEPOSITS. A private service that allows local agencies to invest in FDIC-insured deposits with one or more banks, savings and loans, and credit unions located in the United States. IntraFi (formerly known as CDARS) is an example of an entity that provides this service.

PREMIUM. The difference between the par value of a bond and the cost of the bond, when the cost is above par.

PREPAYMENT SPEED. A measure of how quickly principal is repaid to investors in mortgage securities.

PREPAYMENT WINDOW. The time period over which principal repayments will be received on mortgage securities at a specified prepayment speed.

PRIMARY DEALER. A financial institution (1) that is a trading counterparty with the Federal Reserve in its execution of market operations to carry out U.S. monetary policy, City of Pico Rivera
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and (2) that participates for statistical reporting purposes in compiling data on activity in the U.S. Government securities market.

PRUDENT PERSON (PRUDENT INVESTOR) RULE. A standard of responsibility which applies to fiduciaries. In California, the rule is stated as “Investments shall be managed with the care, skill, prudence and diligence, under the circumstances then prevailing, that a prudent person, acting in a like capacity and familiar with such matters, would use in the conduct of an enterprise of like character and with like aims to accomplish similar purposes.”
REALIZED YIELD. The change in value of the portfolio due to interest received and interest earned and realized gains and losses. It does not give effect to changes in market value on securities, which have not been sold from the portfolio.

REGIONAL DEALER. A financial intermediary that buys and sells securities for the benefit of its customers without maintaining substantial inventories of securities and that is not a primary dealer.

REPURCHASE AGREEMENT. Short-term purchases of securities with a simultaneous agreement to sell the securities back at a higher price. From the seller’s point of view, the same transaction is a reverse repurchase agreement.

SAFEKEEPING. A service to bank customers whereby securities are held by the bank in the customer’s name.

STRUCTURED NOTE. A complex, fixed income instrument, which pays interest, based on a formula tied to other interest rates, commodities, or indices. Examples include inverse floating rate notes which have coupons that increase when other interest rates are falling, and which fall when other interest rates are rising, and "dual index floaters," which pay interest based on the relationship between two other interest rates - for example, the yield on the ten-year Treasury note minus the Libor rate.

Issuers of such notes lock in a reduced cost of borrowing by purchasing interest rate swap agreements.

SUPRANATIONAL. A Supranational is a multi-national organization whereby member states transcend national boundaries or interests to share in the decision making to promote economic development in the member countries.

TOTAL RATE OF RETURN. A measure of a portfolio’s performance over time. It is the internal rate of return, which equates the beginning value of the portfolio with the ending value; it includes interest earnings, realized and unrealized gains, and losses in the portfolio.

U.S. TREASURY OBLIGATIONS. Securities issued by the U.S. Treasury and backed by the full faith and credit of the United States. Treasuries are considered to have no credit risk, and are the benchmark for interest rates on all other securities in the US and overseas. The Treasury issues both discounted securities and fixed coupon notes and bonds.

TREASURY BILLS. All securities issued with initial maturities of one year or less are issued as discounted instruments, and are called Treasury bills. The Treasury currently issues three- and six-month T-bills at regular weekly auctions. It also issues “cash management” bills as needed to smooth out cash flows.

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TREASURY NOTES. All securities issued with initial maturities of two to ten years are called Treasury notes, and pay interest semi-annually.

TREASURY BONDS. All securities issued with initial maturities greater than ten years are called Treasury bonds. Like Treasury notes, they pay interest semi-annually.

VOLATILITY. The rate at which security prices change with changes in general economic conditions or the general level of interest rates.

YIELD TO MATURITY. The annualized internal rate of return on an investment which equates the expected cash flows from the investment to its cost.

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APPENDIX 1
The authorized investment officers as stated in accordance with the City of Pico Rivera Investment Policy, are responsible for administering an investment program which:
• Adheres to the Statement of Investment Policy
• Prioritizes safety and liquidity
• Determines risk and optimizes return
• Provides for a system of due diligence in making investment decisions.

Delivery vs. Payment – all trades of marketable securities will be executed by delivery vs. payment to ensure that securities are deposited in an eligible financial institution prior to the release of City funds.

INVESTMENT

PROCESS

COUNCIL

MEETING
DATE

COUNCIL MEMBER REQUEST DETAIL DIRECTOR(S)
ACTION TAKEN: Memo; Staff
Report; Closed Session;
Presentation; Follow-up
Meeting; City Manager Reports;
Informal Action

DISCUSSION
ITEM

ACTION ITEM
DATE
STATUS:

Complete;
Pending;
On-going;
In-Progress
2/13/2024 Lara/Garcia Purple Heart City Resolution Take to City Council P. Yugar Staff report/Resolution 2/27/2024 Complete 5/14/2024 Garcia/Sanchez Ad Hoc Committee with the purpose of reviewing Golf Course fees Mayor to formally establish 5/28/2024 Complete 4/9/2024 Garcia/Camacho Ad Hoc Committee with purpose of reviewing Traffic Calming Measures/Parking Mayor to formally establish N. Negrete & A. Betancourt
5/28/2024 Complete
3/12/2024 Lara/Camacho Crosswalk Safety Assessment Take to City Council N. Negrete 5/14/2024 Complete

GOOD OF THE ORDER