b. The final retirement compensation level shall be calculated using the average of the highest consecutive thirty-six (36) month earnings, per the California Government Code.
c. Per PEPRA, the City does not make contributions towards the employee share for new members. New members are responsible for paying the full amount of the employee share, equal to fifty percent (50%) of the total “normal cost” as determined by CalPERS annual valuation reports up to an eight percent (8%) contribution rate. The City will not make any contributions towards the employee share of PERS, as outlined in AB 340 for Tier III members.
d. The City offers retiree medical through CalPERS medical. The City pays the minimum contribution required by the Public Employees Medical and Hospital Care Act (PEMHCA) toward the retiree’s CalPERS medical insurance premium.
4. The City has adopted the CalPERS resolution in accordance with IRS Code section 414(h)(2) to ensure that the employee contribution is made on a pre-tax basis by way of payroll deduction. All employee-paid member contributions shall be pre-tax via payroll deduction.
5. Applicable to all Full-Time Employees regardless of hire date a. Retired Death Benefit- the City’s contract with CalPERS provides for a fivethousand dollar ($5,000.00) lump sum death benefit payable upon retiree’s death.
b. Pre-Retirement Option 2W Benefit - the City has contracted with CalPERS to provide a monthly death benefit allowance for a surviving spouse or registered domestic partner. The allowance is calculated as though the member retires from service on the date of death and chose Option 2W.
c. Service Credit Buy-Back Program - eligible employees can purchase, with pretax dollars, service credits from CalPERS for past eligible employment. d. Military Buy-Back - eligible employees can purchase, with pre-tax dollars, a maximum of four (4) years of service credit from CalPERS at the employee’s expense.
e. 1959 Survivor Benefit Level 4 - The City’s contract with CalPERS provides 1959 Survivor’s Benefits Level 4. The 1959 Survivor Benefit is paid along with other death benefits whether or not the employee was eligible to retire at the time of death.
The benefit consists of a monthly allowance which may be paid to the employee’s eligible surviving spouse and children. A spouse is eligible if they (1) have care of eligible children (including stepchildren) or (2) are age 60 or older. (Children are eligible if under age 22 and unmarried or incapacitated because of a disability which began before age 22). A parent may be eligible if there is no surviving spouse or eligible children, and the parent(s) was
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dependent on the member for at least half of their support at the time of the member’s death.
These benefit level amounts are determined by PERS and the amounts provided will be done in accordance with the latest rates published by PERS.
ARTICLE 9
WORK SCHEDULES
Pursuant to the Fair Labor Standards Act (FLSA), employees shall have a fixed workweek that consists of a regular recurring period of 168 consecutive hours (seven – 24-hour periods) which can begin and end on any day of the week and at any time of the day. The designated workweek for an employee may be changed only if the change is intended to be permanent and not designed to evade overtime requirements of the FLSA.
Generally, the City operates under an Alternative Work Week schedule commonly known as the "4/10 Plan." Workweeks and work shifts of different numbers of hours may be established by the City in order to meet business and customer service needs, as long as the work schedules meet federal and state laws.
It is recognized and understood that deviations from normal hours of work may occur from time to time, resulting from several causes, such as but not limited to vacations, leave of absence, weekend and holiday duty, absenteeism, employee requests, temporary shortage of personnel, low census and emergencies. The City retains the right to adjust work schedules to maintain an efficient and orderly operation and to ensure the continuity of City services. Except for emergency conditions individually scheduled hours of work may be changed by noticing the employee and meeting and conferring over any effects.
General Statement on Days of Operation
1. The standard work week will be inclusive of all days between Monday and Sunday.
The intent is to allow maximum flexibility to accommodate various operational needs of the City, including but not limited to, water related maintenance and operations, parking enforcement, code enforcement, parks maintenance, parks and recreation operations, etc.
2. Generally, City Hall (6615 Passons Blvd, inclusive of City Hall West) and the Parks and Recreation Main Office (6767 Passons Blvd.) will be open four (4) days per week, Monday through Thursday.
3. Generally, The City Yard (9633 Beverly Road) will be open four (4) days per week, Monday through Thursday.
4. Parks and Recreation facilities (other than the main offices located at 6767 Passons Blvd) will have consistent operating days and hours that coincide with
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each facilities' normal operation.
Scheduling Accommodations
It is understood that certain individual employees may need to adjust or deviate their work schedule based on child care or other documented, legitimate needs. These circumstances will be handled on a case-by-case basis, with approval from the employee's direct supervisor and Department Director. This section is meant to allow for flexibility in scheduling, however Management still reserves the right to require employees to work a schedule so as not to negatively impact operational needs.
All deviated schedules will be documented between employee, supervisor, Department Director and Human Resources on a form created and approved by the Human Resources Division.
Deviated schedules will be reviewed at least once per calendar year by the appropriate supervisor and will include review/approval by the Department Director. Management reserves the right to review deviated schedules more frequently based on operational needs or if the employee's reason for being granted a deviated schedule changes.
It is also understood that at times, "ad hoc" schedule adjustments may be needed. It is the responsibility of the employee to seek approval from their supervisor should they need to modify their schedule for an unforeseen event or personal emergency. Should time need to be "made up" for such an unforeseen or personal emergency scheduling issue, it will be done within the same eighty (80) hour pay period. This only applies to "ad hoc" circumstances, and not for known, recurring schedule deviations which will be documented and approved as described herein.
ARTICLE 10
OVERTIME, HOLIDAYS, SCHEDULES AND TYPES OF LEAVE
A. Schedule Flexibility
In the spirit of providing Management and Exempt Employees with the ability to adjust schedules according to need, it is understood that Exempt employees, through prior discussion and approval of their supervisors, will have flexibility in schedules. The intent of this flexibility is due to the understanding that Exempt employees are at times asked to work additional hours for which they do not receive compensatory time or overtime compensation.
B. Overtime
1. Non-Exempt full time employees will be compensated for overtime worked when specifically authorized by the department head and approved by the City Manager.
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2. The City shall use reasonable efforts to distribute overtime work equitably among the qualified employees of an officer, operational unit or work group with consideration given to City need and employees availability in making the distribution. Upon reasonable notice, an employee shall be required to work overtime as needed. If an employee is not available for an overtime assignment it shall be without prejudice to consideration of that employee for subsequent overtime assignments.
3. For the purpose of computing hours worked, time during which an employee is excused from work because of a holiday shall be considered as time worked by the employee. In all other cases, hours worked shall include all the time during which an employee is required to be on employer’s premises on duty or at a prescribed work place. Paid leave time is not considered in computing hours worked. Overtime for all part-time personnel will be calculated as specified under the Fair Labor Standards Act.
4. Compensation for non-exempt full time employees for overtime worked shall be at time and one-half (1 ½) times the hourly rate in effect at the time such overtime service is rendered when the employee has worked in excess of a full regularly scheduled work week.
5. Compensation for non-exempt full time employees for overtime worked shall be at time and one-half (1 ½) times the hourly rate in effect at the time such overtime services is rendered when the employee has worked in excess of the regularly scheduled work day and when the employee has also worked in excess of a full regularly scheduled work week.
6. Compensation for non-exempt full time employees who work in excess of the regularly scheduled workday but do not work in excess of the regularly scheduled workweek shall be at the straight time hourly rate for those hours worked in excess of the regularly scheduled work day. Time and one-half (1 ½)shall be paid only after the employee has also worked in excess of and has satisfied the regularly scheduled workweek requirement.
7. Compensation for overtime worked can also be in the form of compensatory time off which shall be credited at the rate of which straight time or time and one-half (1 ½), whichever is appropriate, according to the provisions above.
8. At the time overtime is earned and by taking into account the stated preference of the employee to receive pay or compensatory time off, the Department Head will be responsible for determining departmental/operational needs and will have sole discretion in final determination in the manner of compensation.
9. Employees may bank a maximum of sixty (60) hours of compensatory time off.
No employee shall be allowed to accumulate more than sixty (60) hours of
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compensatory time.
10.Depending on departmental and operational needs at the time the overtime hours are worked, the Department Head will have sole discretion in determining when compensatory time off may be taken. Operational needs will take precedence; however, a reasonable effort will be made to accommodate employee preference.
C. FMLA and Kin Care Leave:
Association members may maintain forty (40) leave hours (sick, vacation or compensatory time) “on the books” if they choose.
D. Administrative Leave:
All exempt bargaining unit employees shall receive sixty (60) hours of Administrative Leave the first full pay period of July of each year.
Administrative Leave cannot be “cashed out”.
E. Compensatory Time:
Non-exempt members may bank a maximum of sixty (60) hours of compensatory time off. No member shall be allowed to accumulate more than sixty (60) hours of compensatory time off.
(a) Section 7(o)(5) of the FLSA provides that any employee of a public agency who has accrued compensatory time and requested use of this compensatory time, shall be permitted to use such time off within a “reasonable period” after making the request, if such use does not “unduly disrupt” the operations of the agency.
F. Sick Leave:
Sick leave with pay is granted to all permanent, probationary and provisional employees. The following are details of the sick leave provision:
1. Accrual
a. Sick leave allowance is one hundred and five (105) hours per year b. Each employee will accrue four point zero three eight five (4.0385) hours of sick leave each pay period.
c. The maximum number of accrued hours per year is one hundred and five (105) hours.
d. The maximum number of hours available for cash payment per year is eighty-one (81) hours
2. Use of Sick Leave - An employee may use paid sick leave for the following reasons:
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a. The employee or a family member or designated person for the diagnosis, care or treatment of an existing health condition or preventive care.
b. Specified purposes for an employee who is a victim of domestic violence, sexual assault, or stalking.
c. Bereavement Leave or reproductive loss leave.
3. Personal Sick Leave - Employees are allowed to use twenty-four (24) hours of their sick time as personal sick leave, which shall be counted as hours worked for overtime purposes.
4. Physician's Certificate - An employee may be required to provide the supervisor or Department Head with a physician's certification of illness or a release to return to work. An employee injured off the job shall be required to provide a physician's release to return to work.
5. Accumulation - Up to eight hundred (800) hours of sick leave may be accumulated during the course of employment with the City. If an employee’s sick leave is exhausted, the employee may use vacation time for illness but only after a full work-day advance request and with the approval of the employee’s supervisor, Department Director and Director of Human Resources. Vacation leave, under any circumstance, may not be used for single day illnesses.
If an employee has no paid leave time accumulated or has paid leave time but wishes not to use it, they must take leave without pay or any other leave as provided by law.
6. Cash Payment - In June of each year (i.e., the first full pay period of June), each employee may choose to take any or all of the fiscal year's accumulated sick leave as cash, provided the “cash out” amount does not exceed eightyone (81) hours. The balance of the sick leave may be left on the books. Per California Labor Code, sick leave is paid at the employees rate of pay at the time of pay out (i.e., the employee’s pay rate during the first full pay period in June).
7. Credit Upon Termination - Employees who terminate employment may be paid the salary equivalent of all accrued sick leave prior to the effective date of termination. Per California Labor Code, sick leave is paid at the employees’ rate of pay at the time of termination/separation. . Accumulated sick leave may also be converted to service credit with CalPERS at time of retirement, subject to CalPERS law. A choice of either sick leave as service credit or cash-out of sick leave will be given.
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G. Vacation Leave:
1. Length: The amount of vacation that a member accrues is based on years of service.
a. One through Four Years – 88 Hours (3.385 hours per pay period) b. Five through Nine Years – 128 Hours (4.923 hours per pay period) c. Ten through Nineteen Years - 168 Hours (6.362 hours per pay period) d. Twenty Years or More – 208 Hours (8 hours per pay period)
2. Accrual: Vacation leave will begin accruing immediately upon the employee’s official start-date.
3. Credit upon Termination: Employees who terminate employment shall be paid the salary equivalent of all accrued vacation leave earned prior to the effective date of termination. Per California Labor Code, vacation leave is paid at the employees’ rate of pay at the time of termination/separation.
4. Schedules: Each department will keep and monitor the vacation schedule of its employees. Each employee shall request vacation time in writing in advance of the time desired. Such request will be signed by the employee and must be approved by the employee’s supervisor and/or Department Director to be valid.
The Department Director will determine the vacation schedule with due regard for the wishes of the employee and the needs of the department subject to the MOU. In the event a vacation request is denied, the reason for the denial shall be provided in writing.
5. Accumulation: Vacation time may be accumulated to a maximum of threehundred and twenty (320) hours. Hours in excess of three hundred and twenty (320) will automatically be paid out to the employee annually on the first pay date of December. Per California Labor Code, vacation leave is paid at the employees’ rate of pay at the time of pay out (i.e., the employee’s pay rate during the first pay date of December). There will be no accumulation of vacation hours beyond the three-hundred and twenty (320) hours.
6. Vacation Cash Out:
Each year in December (first payday of December), an employee may opt to cash out any or all vacation hours that exceed one-hundred twenty (120) hours.
If a cash out is elected, a minimum balance of one-hundred twenty (120) hours must remain on the books. Per California Labor Code, vacation leave is paid at the employees’ rate of pay at the time of pay out (i.e., the employee’s pay rate during the first payday of December).
7. Emergency Cash-Out: At the request of the eligible employee, emergency vacation leave payouts may be approved throughout the year without the minimum balance requirement. Employees must submit the request in writing
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to the City Manager describing the emergency. An emergency is defined as follows:
a. A severe financial hardship;
b. An event that was unforeseeable (including but not limited to: illness, accident or casualty);
c. The event was incurred by employee, spouse or dependent; and d. Where employee has no other means to cover costs.
The City Manager’s decision is final.
H. Holidays:
The City recognizes twelve (12) holidays per year. Holiday pay will accrue as the Holiday passes. Employees will receive the number of holiday hours they normally would have been scheduled to work. For example, employees on a 4/10 work schedule will receive 10 hours of holiday pay for each holiday. The City will recognize the following holidays and observe each holiday during the regular Monday-Thursday work week. The Human Resources Department will publish a Holiday Calendar in January of each year, noting the day the holiday will be recognized by the City. Should a City-recognized holiday fall on a Friday, the observation will fall on the previous Thursday. Should it fall on a Saturday or Sunday, the observation of the holiday will fall on the following Monday.
Holidays
New Year’s Day
Martin Luther King Day
President’s Day
César Chávez Day
Memorial Day
Juneteenth
Independence Day
Labor Day
Veteran’s Day (observed)
Thanksgiving Day
Day After Thanksgiving (observed)
Christmas Day (observed)
I. Industrial Illness or Injury Leave:
An employee who is absent from work due to a work-related injury or illness shall be on industrial accident leave. The City shall conform to Workers’ Compensation laws of the State of California in effect at the time of injury. Employees may receive information on Workers’ Compensation Procedures from the Human Resources Division.
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When a waiting period is required in order to begin Workers’ Compensation benefits, an injured worker may use available leave time along with the City paid Workers’ Compensation rate per day. Following the waiting period, an injured worker on total disability will receive the State Worker’s Compensation rate. The employee may make up the difference between the State mandated rate and their base pay by utilizing available leave time.
If an injured worker has exhausted all available leave, continues to receive Workers’ Compensation benefits and is medically unable to return to work, the City shall compensate the injured worker the difference between the State mandated benefit and sixty-six and two-thirds percent (66.667%) of the employee’s base pay for a period not to exceed ninety (90) days from the date leave is exhausted or unless State law says differently.
J. Jury Duty:
Service as a juror by employees will be limited to serving once in any two (2)_-year period. Payment for jury duty service will be limited to ten (10) days. If an employee is assigned to a trial within the first ten (10) days of jury service, the employee’s time to complete the trial will be paid by the City.
The employee must obtain proof of jury service from the Court and submit it to the Finance Department upon completion of their jury duty. The employee must also submit any payment received from the Court (except mileage reimbursement) to the Finance Department in order to receive full salary for the time served.
K. Bereavement Leave:
Up to five (5) days of bereavement leave shall be granted to full-time employees for a death in the immediate family, three (3) of which are paid and two (2) of which employees can use their accrued sick, vacation, comp. time and/or administrative leave. The immediate family shall be defined as parents, step-parents, stepsiblings, step-children, parents-in-law, siblings-in-law, spouse, siblings, children, grandparents, grandchild, step-grandchildren, court-appointed or other verifiable guardian, domestic partner, and any other family member as defined under Cal.
Gov. Code Section 12945.7.
L. Reproductive Loss Leave:
a. A reproductive loss event means the day or, for a multiple-day event, the final day of a failed adoption, failed surrogacy, miscarriage, stillbirth, or an unsuccessful assisted reproduction.
b. This leave allows employees who have worked for the City for at least 30 days prior to taking leave to take up to 5 days of their accrued sick, vacation, administrative leave or compensatory time leave (if applicable) following a reproductive loss event, If the employee has exhausted all of their paid leave
c. The maximum allowable amount of reproductive loss leave is 20 days within
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a 12-month period. Proximity to Loss Event. While the five days of leave do not need to be taken consecutively, the leave must be completed within three months of the reproductive loss event.
d. An employee can take leave following their own reproductive loss event or that of another person – such as a spouse or partner – if the employee would have been the parent of the child born or adopted.
M. Catastrophic Leave:
1. Purpose
Catastrophic leave is a leave sharing program intended to allow employees to voluntarily donate accrued leave to other eligible employees for the employee or the care of a spouse, parent or dependent child of an employee suffering from a catastrophic illness or injury.
A catastrophic illness of an employee is any non-occupational medically verifiable illness or injury of such serious nature as to require long-term absence from work. Catastrophic illness of a family member shall be defined as those medically verifiable illnesses or injuries which are of such serious nature as to require long-term and/or full-time care by the employee. Family members are defined as the employee’s spouse/domestic partner, parent, parent-in-law, child, or other person for whom the employee is legal guardian. Catastrophic illness leave shall be additional paid leave available from vacation, sick or compensatory leave donated by other City employees to a specific qualified employee.
2. Eligibility
a. An employee (recipient) may be eligible to receive and use donated leave if he or she, or their family member, has a catastrophic illness as defined above.
b. The employee must produce competent medical verification of the illness or non-work related injury satisfactory to the City. c. The employee must have a minimum of one year of service with the City. d. The employee must have exhausted all paid leave, including but not limited to sick leave, vacation, and compensatory time. e. In order to receive and use donated leave, an employee must not be receiving any other salary continuation benefits such as disability benefits.
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f. No more than four-hundred eighty (480) hours per twelve (12) month period from date of catastrophic leave approval may be received by the employee.
g. The employee must complete the Catastrophic Illness Donation Request Form and submit the form to the employee’s department head and City Manager for signature. The Personnel Officer will certify that the employee is eligible to participate in the catastrophic leave donation program.
3. Donor Employee Eligibility
The employee must have an accrued vacation leave balance of at least forty (40) hours after the donation of vacation time and a sick leave balance of at least sixty (60) hours after the donation of sick leave time. Employees may donate all of their compensatory time.
The employee must complete the Catastrophic Illness Donation Form.
4. Conditions for Making Leave Donations
Donations must be in whole hours and the amount of hours an employee wishes to donate shall be at his/her own discretion on the condition the employee meets the leave balance minimums.
Donor names will be kept confidential.
All time donated will be credited on an hour-for-hour basis, regardless of hourly pay differentials between donating employee and recipient.
All donations shall be voluntary and at the discretion of the donor employee and once processed are irrevocable once leave hours are transferred to the recipient.
5. How to Apply for or Donate Leave
An employee who qualifies for catastrophic illness leave shall complete the Catastrophic Illness Donation Request Form and submit it to the department head who shall, in conjunction with the City Manager and Personnel Officer, review it for approval or denial.
Upon approval, donor employees shall complete the Catastrophic Illness Donation Form indicating a willingness to donate vacation leave, sick leave or compensatory time and the amount of said time to be donated. The completed form should then be forwarded to payroll.
Subsequent to the receipt of the leave donation forms and the determination of the total hours donated, Payroll shall credit the recipient employee’s sick leave balance on a biweekly payroll basis. An employee who is receiving catastrophic
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illness leave donated by other employees shall be allowed to accrue vacation and sick leave while in that status; however, all accrued leave shall first be used prior to the use of donated leave time.
Donations not used by recipient will be returned to donors proportionately.
6. Solicitation of Donations
Human Resources will notify City employees that the recipient employee is eligible to receive voluntary donations of accrued vacation, sick and compensatory time. Human Resources will not release any medical information regarding the recipient employee or his or her family member.
7. Contact Information
Questions about Catastrophic Leave should be directed to Human Resources.
ARTICLE 11
SEVERANCE
A. Mid-Managers Unit
A mid-management member who has completed at least six months of continuous employment and who is involuntarily separated is entitled to severance pay as follows:
6 months through 4 years of employment One (1) month pay 5 years through 9 years of employment Two (2) months’ pay 10 years through 14 years of employment Four (4) months’ pay 15 years and over of employment Five (5) months’ pay
B. Professionals and Confidential Unit
A Professional and Confidential member who has completed at least one (1) year of continuous employment and who is involuntarily separated is entitled to three (3) month’s severance pay.
A Professional and Confidential member who has completed ten (10) years or more of City service and who is involuntarily separated is entitled to five (5) month’s severance pay.
ARTICLE 12
OTHER TERMS
A. Uniforms
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For those full-time employees who are required to wear a City uniform, the City shall pay the costs associated with the provision of required uniforms. It is the right of the City to determine what constitutes a required uniform. It is understood that where the City provides a uniform, said uniform must be worn while on duty. For those items of protective clothing worn but not provided by the City, no logos/insignias of athletic teams, commercial products or companies may be worn.
The design and color of such clothing must not interfere with free ease of movement, shall not present a safety hazard, and must be worn, in the case of jackets and/or tee shirts, with an orange City-furnished safety vest as the outer layer visible to all. City-paid time shall not be used for purchase of uniform equipment.
The City agrees to provide safety shoes to Field Service Personnel. Shoes will be replaced as wear and tear warrants; however, in no case shall any employee receive more than two (2) pairs of safety shoes in any (12) twelve-month period.
Determination of eligibility for safety shoes and/or replacement thereof shall be made by the Department Head or their designee in accordance with this policy.
The City shall establish procedures for the issuance and replacement of work shoes. Departmental discretion shall be used in determining the type of work shoes acceptable for designated positions. The maximum amount payable by the City for a single pair of work shoes is two hundred fifty dollars ($250) per pair.
Regardless of cost, work shoes shall be substantial enough to provide the required protection and durable enough to require no more than the allowed two (2) pairs per year.
Any employee issued safety shoes shall wear such shoes at all times during working hours. Employees not issued safety shoes shall be expected to wear shoes at all times during working hours. Employees not issued safety shoes shall be expected to wear shoes appropriate to the working environment, as determined by the Department Head. Safety shoes shall not be purchased on City-paid time.
B. Mandatory Drug Testing
The City and Association agree that all new hires shall be required to participate in mandatory drug testing as part of the employee eligibility process, at the time of the post-offer physical examination. City shall only test in accordance with California law.
ARTICLE 13
EDUCATIONAL REIMBURSEMENT
To encourage employees to further their education, it is City policy, with the signed approval of both the Department Director and City Manager, to provide financial assistance to the employee for registration, books, parking, or other related educational
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expenses as outlined in applicable Internal Revenue Service (IRS) codes. The maximum annual amount of tuition reimbursement will be the IRS maximum of five thousand two hundred fifty dollars ($5,250) (or the effective amount should it be adjusted by the IRS in a given year).
The City shall develop and publish an educational reimbursement program that satisfies all required IRS rules and guidelines.
If the course is not completed and/or a passing grade of “C” or above is not achieved, the employee must repay in full the entire amount of the upfront funding. Tuition advancement shall not be permitted.
ARTICLE 14
GRIEVANCE PROCEDURES
A. Performance Evaluations
The City agrees that any Association member whose performance evaluation is late and where the member’s performance rating was at a minimum satisfactory will be entitled to receive the merit increase retroactive to the anniversary date.
The City agrees that each member will receive a copy of their performance evaluation and it is agreed that the member’s signature on the evaluation form shall not necessarily indicate agreement with the content of said evaluation.
B. Last Chance Agreements
Management reserves the right to utilize Last Chance Agreements when warranted. Examples of conditions when such an Agreement may be utilized include the following:
1. When there has been a violation of City Rules and Regulations or Policies;
2. As a final effort, before termination, to assist an employee in improving their performance;
3. In cases of substance abuse i.e. drugs or alcohol.
Each Last Chance Agreement will be considered on a case by case basis.
However, unless otherwise stipulated in the Agreement, the duration of a Last Chance agreement shall not exceed three (3) years, which in all cases shall be the maximum.
C. Definitions
A grievance is defined as any dispute concerning the interpretation or application of the MOU, departmental rules and regulations governing personnel practices, or working conditions applicable to employees covered by the MOU.
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A grievant is an employee or group of employees adversely affected by an act or omission of the employer.
D. Purpose of Grievance Procedure
The general purpose of the grievance procedure is to resolve disputes, regarding the interpretations or application of this MOU at the earliest point possible.
The grievance procedure is not intended to be used for:
a) challenges to the agreed upon outcome of a Meet and Confer process; or b) cases of reduction in pay, demotion, suspensions, or termination resulting from disciplinary action.
E. Rights and Responsibilities
At Steps 2, 3 and 4, the grievant may be represented by themselves, the Association, an Association attorney or one representative of the grievant’ s choice. If the representative is a fellow employee, that employee will receive time off from their work assignment for only the time of the grievance meeting or hearing.
The time limits between steps of the grievance procedure provided herein may be extended by mutual agreement. Also, by mutual consent, the employee and management may waive one or more levels of review from this grievance procedure.
F. Specifics of the Grievance
In filing a grievance, the employee should set forth the following information, which must be submitted in writing beginning with Step 2:
a) the specific section of the MOU, City policies, or law allegedly violated, misinterpreted, or misapplied;
b) the specific act or omission which gave rise to this alleged violation, misinterpretation, or misapplication;
c) the date or dates on which the violation, misinterpretation, or misapplication occurred;
d) documents, witnesses or other evidence supporting the grievant’s position; and
e) the remedy requested.
G. Procedure
An employee who wishes to file a grievance must do so within ten (10) calendar days of when they became aware of or should have been aware of the circumstances that gave rise to a grievance.
Step 1. First Level of Review
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Informal: The employee shall discuss the grievance with the immediate management supervisor on an informal basis in an effort to resolve the grievance.
Said grievance shall be considered waived if not so presented to the immediate management supervisor within ten (10) calendar days following the day when the event upon which the grievance is based occurred.
Formal: The immediate management supervisor may require that the employee submit the grievance in writing. Similar grievances submitted by more than one (1) employee may be consolidated by management into one or more separate grievances.
The immediate management supervisor shall respond in writing within seven calendar days following the meeting with the employee. Failure to respond within such time limit shall entitle the employee to process the grievance at the next step.
Step 2. Second Level of Review
If the grievance is not settled at Step 1, the employee may proceed to Step 2 by serving a written notice of the grievance on a form provided by management to the Department Head within five (5) calendar days of receipt of the grievance response at Step 1. Failure of the employee to serve such written notice shall result in dismissal of the grievance. If such written notice is served, the Department Head may meet with the employee and a written decision or statement of facts and issues shall be rendered to the employee and representative of the employee's choice, if any, within ten (10) calendar days from the date of service. Failure of management to respond within such time limit shall entitle the employee to process the grievance at the next level of review.
Step 3. Mediation As Optional Dispute Resolution
If a grievance is not resolved after review by the Department Head, the Association and the City may agree to submit the matter to a neutral third party for resolution.
If either party wishes to exercise this option, they shall make the request within five (5) calendar days of the Department Head's response. City shall request a mediator from the California State Mediation and Conciliation Service within ten (10) calendar days.
Step 4. Third Level of Review
If the grievance is not settled at Step 2 or Step 3, the employee may proceed to Step 4 by serving written notice of the grievance on said form upon the City Manager within five (5) calendar days following receipt of the grievance response at Step 2 or Step 3. Failure of the employee to serve such notice shall constitute a waiver of the grievance. If such notice is served, the grievance shall be reviewed by the City Manager or designee within ten (10) calendar days. The City Manager or designee may afford the parties an opportunity to present oral or written arguments on the merits of the grievance and shall render to the employee and representative of the employee's choice, if any, a written decision within ten (10) calendar days from the date said arguments were submitted. The decision of the
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
City Manager shall be final.
ARTICLE 15
PROBATIONARY PERIODS AND DISCIPLINE PROCEDURES
Members in job classifications designated without an asterisk (*) in Appendix A are considered at-will employees and are not subject to the following discipline procedure.
Members in job classifications designated with an asterisk (*) in Appendix A are not atwill and are subject to the following probationary periods and disciplinary procedure as outlined immediately below:
A. Probationary Period
All new hires shall serve a twelve (12) month probationary period. Current employees who are promoted into a classification that is not at-will and that is covered by this MOU are subject to a promotional probation period of six (6) months.
B. Disciplinary Procedure
Members shall first be subject to an informal conference summary regarding their job performance prior to any formal discipline taken as it relates to minor disciplinary action as listed below under “Section 1: Minor Disciplinary Actions.” The nature, severity, and egregiousness of the employee performance or situation and or violation of any City Policies and Procedures may be grounds for discipline under “Section 1: Major Disciplinary Action.”
Proper subjects to be handled by these procedures are disciplinary actions including but not limited to:
Section 1. Disciplinary Actions
Disciplinary actions may include the following:
Minor Disciplinary Action:
• Counseling
• Oral reprimand
• Written reprimand
Major Disciplinary Action
• Suspension without pay
• Reduction in pay
• Demotion
• Dismissal (Negative Termination)
Section 2. Grounds for Discipline
The following list is illustrative and not inclusive:
A. Fraud in securing employment or making a false statement on an application for employment.
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
B. Incompetency (i.e., inability to comply with the minimum standard of an employee’s position for a significant period of time.)
C. Inefficiency or neglect of duty (i.e., failure to perform duties required of an employee within their position.)
D. Willful disobedience and insubordination, a willful failure to submit to duly appointed and acting supervision or to conform to duly established orders or directions of persons in a supervisory position or insulting or demeaning the authority of a supervisor or manager.
E. Dishonesty involving employment.
F. Being under the influence of alcohol or illegal drugs or narcotics while on duty, being impaired by alcohol or illegal drugs in the employee’s biological system while on duty which could impact the employee’s ability to do the job.
G. Excessive absenteeism.
H. Inexcusable absence without leave.
I. Abuse or misuse of sick leave (i.e., taking sick leave without a doctor’s certificate when one is required).
J. The conviction of either a misdemeanor or a felony involving moral turpitude shall constitute grounds for discipline up to and including dismissal. The record of conviction shall be conclusive evidence only of the fact that the conviction occurred. The Personnel Officer may inquire into the circumstances surrounding the commission of the crime in order to fix the degree of discipline, or the determination if such conviction is an offense involving moral turpitude. A conviction of a felony or any offense involving moral turpitude, whether based on a plea of guilty or no-contest, verdict, is deemed to be a conviction within the meaning of this Section.
K. Discourteous treatment of the public or other employees.
L. Improper or unauthorized use of City property.
M. Refusal to subscribe to any oath or affirmation which is required by law in connection with City employment.
N. Any willful act of conduct undertaken in bad faith, either during or outside of duty hours which is of such a nature that it causes discredit to the City, the employee’s department or division.
O. Inattention to duty, tardiness, indolence, carelessness or negligence in the care and handling of City property.
P. Violation of Departmental policies or procedures.
Q. Mental or physical impairment which renders the employee unable to perform the essential functions of the job without reasonable accommodation, or without presenting a direct threat to the health and safety of self and others.
R. Outside employment not specifically authorized by the appointing authority.
S. Acceptance from any source of a reward, gift, or other form of remuneration in addition to regular compensation to an employee for the
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
performance of their official duties (refer to City’s List of Gifts & Gratuities Policy in Appendix).
T. The refusal of any City employee to testify under oath before any Grand Jury having jurisdiction over any then pending cause of inquiry in which the investigation of government bribery or misconduct in City office is involved shall constitute of itself sufficient ground for the immediate discharge of such officer or employee.
U. Willful violation of any of the provisions of the ordinances, resolutions or any rules, regulations or policies which may be prescribed by the City.
V. Improper political activity. Example: Those campaigning for or espousing the election or non-election of any candidate in national, state, county or municipal elections while on duty and/or during working hours or in an agency uniform on or off duty; or the dissemination of political material of any kind while on duty and/or during working hours or in uniform.
W. Working overtime without authorization.
Section 3. Response to Written Reprimand
An employee who wishes to object to a written reprimand must do so within fourteen (14) calendar days of mailing or personal delivery of the notice of the disciplinary action.
Step 1. A. The employee and/or their representative will present their objection to their supervisor orally or in writing within fourteen (14) calendar days.
B. The immediate supervisor will answer the objection orally or in writing within seven (7) calendar days after presentation of the objection.
Step 2. A. An employee and/or their representative wishing to dispute the Supervisor's response will, within seven (7) calendar days, present it in writing to their Department Head.
B. At the option of the Department Head, a meeting shall be held with the employee and their representative.
C. The Department Head will present their written answer to the employee within seven (7) calendar days of receipt of the objection.
Step 3. Mediation as Optional Dispute Resolution
If an objection is not resolved after review by the Department Head, the Union and the City may agree to submit the matter to a neutral third party for resolution. If either party wishes to exercise this option, they shall make the request within seven (7) calendar days of the Department Head's response. If the parties mutually agree to use this option, the City shall request a mediator from the California State Mediation and Conciliation Service within fourteen (14) calendar days .
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
Step 4. A) If the objection has not been settled at the second step and optional mediation has not taken place, or agreement has not been reached during the mediation process, the employee and/or their representative may submit a written appeal within seven (7) calendar days to the City Manager.
.
B) A meeting with the City Manager shall be held with the employee and their representative. The City Manager, at their discretion, may designate a representative to hear the appeal.
C) The City Manager will present their answer in writing to the employee within seven (7) calendar days of the meeting. The decision of the City Manager or designee shall be final.
Section 4. Major Disciplinary Action
Step 1.Notice of Intent
A. Whenever the appropriate Department Director intends to suspend without pay, reduce pay, demote or dismiss the employee, the Department Director shall give the employee a written notice of intent to discipline which sets forth the following:
1. The major disciplinary action intended;
2. The specific charges upon which the action is based;
3. A factual summary of the grounds upon which the charges are based;
4. A copy of all written materials, reports, or documents upon which the discipline is based;
5. Notice of the employee’s right to respond to the charges either orally or in writing to the appropriate department head;
6. The date, time and person before whom the employee may respond in no less than seven (7) calendar days; should the employee wish to appeal the disciplinary action;
7. Notice that failure to respond at the time specified shall constitute a waiver of the right to respond prior to final discipline being imposed.
8. The notice shall also advise the employee that they are entitled to have representation of their own choice at the meeting with the Department Head.
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
B. Response by Employee
The employee shall have the right to respond to the appropriate Department Director orally or in writing at a meeting with the Department Director. The employee shall have a right to be represented at the meeting set to hear the employee’s response. In cases of suspensions, reductions, demotions, or dismissals, the employee’s timely filed response will be considered before final action is taken.
C. Decision
Within seven (7) calendar days of the meeting with the Department Director, the Department Director shall issue a written decision setting forth the action to be taken, the grounds for the proposed action and the employee’s right to appeal the Department Director decision to the City Manager.
Step 2. Appeal Hearing Before the City Manager
A. An employee may appeal the decision of the Department Director by filing a written notice of appeal. The notice must be filed with the City Manager within fourteen (14) calendar days of the date of the decision by the Department Director.
B. Within seven (7) calendar days of receipt of a notice of appeal, the City Manager shall set a meeting date to be held within fourteen (14) calendar days. Written notice of the meeting will be personally delivered or mailed to the employee not later than fourteen (14) calendar days prior to the meeting.
C. The notice of meeting given to the employee shall contain the following:
1. The date and place of the meeting.
2. That the employee may be present and that they may be represented by another party.
3. That the employee and/or his/her representative may present oral and documentary evidence and examine witnesses.
D. The City Manager or designee shall be present at the meeting and shall consider oral and documentary evidence presented by either party.
E. Final Notice
After meeting with the City Manager, designee, or the expiration of the employee’s time to respond to the notice of intent, the appropriate authority shall:
1. Dismiss the notice of intent and take no disciplinary action against the employee; or
2. Modify the intended disciplinary action; or
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
3. Prepare and serve upon the employee a final notice of disciplinary action. The final notice of disciplinary action shall include the following: the disciplinary action taken; the effective date of the disciplinary action taken; specific charges upon which the action is based; a factual summary of the facts upon which the charges are based; the written materials, reports and documents upon which the disciplinary action is based; and the employee’s right to appeal.
Step 3. Advisory Arbitration
A. Advisory Arbitration
The employee and/or their representative may request advisory arbitration by written notification to the City Manager within fourteen (14) calendar days of the conclusions of Step 2 of the appeals procedure.
B. List of Arbitrators
The City Manager, upon receipt of written notification, will request a list of five (5) arbitrators from the American Arbitration Association.
C. Selection of Arbitrator
Upon receipt of the list of arbitrators, the parties shall meet within seven (7) calendar days to choose one (1) arbitrator by striking names of arbitrators from the list until only one (1) arbitrator is left. The City shall have the benefit of the first strike.
D. Hearing Board
A hearing will be conducted by a hearing board consisting of said arbitrator, one (1) member appointed by management and one member appointed by the Union. Said hearing will be scheduled as soon as reasonably possible but no less than fourteen (14) calendar days of the selection from arbitrator.
E. Conduct of a Hearing
a) The hearing need not be conducted in accordance with technical rules relating to evidence and witnesses but hearings shall be conducted in a manner most conducive to determination of the truth.
b) Any relevant evidence may be admitted if it is the type of evidence on which responsible persons are accustomed to rely in the conduct of serious affairs, regardless of the existence of any common law or statutory rules which might make improper the admission of such evidence over objection in civil actions.
c) Hearsay evidence may be used for the purpose of supplementing or explaining any direct evidence that shall not be sufficient in itself to support a finding unless it would be admissible over objection in civil actions. d) The rules dealing with privileges shall be effective to the same extent that they are now or hereafter may be recognized in civil actions.
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
e) Irrelevant and unduly repetitious evidence may be excluded. f) The Hearing Board shall determine relevancy, weight and credibility of testimony and evidence. Decisions made by the Hearing Board shall not be invalidated by any informality in the proceedings.
g) During examination of a witness, all other witnesses, except the parties, shall be excluded from the hearing upon motion of either party.
F. Burden of Proof
In a disciplinary appeal the City has the burden of proof by preponderance of the evidence.
G. Proceed with Hearing or Request for Continuance
Each side should be asked if it is ready to proceed. If either side is not ready and wishes a continuance, good cause must be stated.
H. Testimony Under Oath
All witnesses shall be sworn in for the record prior to offering testimony at the heading. The Hearing Board will request the witnesses to raise their right hand and respond to the following: “Do you swear that the testimony you are about to give at this hearing is the truth, the whole truth and nothing but the truth?”
I. Presentation of the Case
The hearing shall proceed in the following order unless the Hearing Board for special reasons, directs otherwise:
a. The party imposing discipline (Department) shall be permitted to make an opening statement.
b. The appealing party (employee) shall be permitted to make an opening statement.
c. The party imposing disciplinary action (Department) shall produce their evidence.
d. The party appealing from such disciplinary action (employee) may then offer their evidence.
e. The party imposing discipline (Department) followed by the appealing party (employee) may offer rebutting evidence.
f. Closing arguments shall be permitted at the discretion of the Hearing Board. The party with the burden of proof, the Department, shall have the right to go first and to close the hearing by making the last argument. The Hearing Board may place a time limit on closing arguments. The Hearing Board or the parties may request the submission of written briefs. After the request for submittal of written briefs, the Hearing Board will determine whether to allow the parties to submit written briefs and set a briefing schedule.
J. Right to Control Proceedings
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
While the parties are generally free to present their case in the order that they prefer, the Hearing Board reserves the right to control the proceedings, including, but not limited to, altering the order of witnesses, limiting redundant or irrelevant testimony, or by the direct questioning of witnesses.
K. Hearing Demeanor and Behavior
All parties and their attorneys or representatives shall not, by written or oral presentation, disparage the intelligence, ethics, morals, integrity or personal behavior of their adversaries.
L. Hearing Written Decision
Within thirty (30) calendar days of the hearing, the Hearing Board shall issue its written decision setting forth the action to be taken and the reasons for such action. Written notice of the decision shall be personally delivered to the employee or mailed to the employee by registered or certified mail, return receipt requested, within seven (7) calendar days.
M. City Council Review
Within fourteen (14) calendar days of receipt of the Hearing Board’s advisory decision, either party may request in writing a City Council review of the matter.
N. City Council Decision
Upon receipt of a request for review, the City Council shall either uphold the advisory decision or call for a review of the matter.
O. Expenses
All expenses of the arbitration shall be shared equally by the parties.
However, expenses relating to the calling of witnesses or the obtaining of depositions or any similar expense associated with such proceedings shall be borne by the party at whose request such witnesses or depositions are required.
P. City Council Ruling
Any legal action or proceeding by either party contesting or seeking review of the ruling of the City Council shall be started within ninety (90) calendar days of the City Council ruling. A disciplinary action not appealed or legal action or proceeding not started within the required time period will be considered resolved as of the previous action. Time limits in this procedure may be extended by mutual agreement in writing of the parties.
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
ARTICLE 16
ASSOCIATION BUSINESS
A. Dues And Benefits Declaration
The City shall continue to deduct dues and Association sponsored benefit program premiums on a regular basis from the pay of all classifications and positions recognized to be represented by the Association, who voluntarily authorize the deduction in writing on a form to be provided by the Association for this purpose. The City shall remit such funds to the Association within thirty (30) days following the deduction. The Association agrees to hold the City harmless and indemnify the City against the claims, causes of action, or lawsuits arising as a result of the deductions on transmittal of such funds to the Association, except the intentional failure of the City to transmit monies deducted from the employees pursuant to this Article to the Association.
B. Provision of Unit Membership List
The City shall notify the Association of individuals hired, promoted, or transferred into the unit and shall permit Association officers access to new employee orientations in accordance with AB 119.
Every one-hundred twenty (120) calendar days, the City shall provide unit representatives with a list consisting of:
1. Name of each unit member in alphabetical order by last name
2. Each unit member’s class title, department, work location, and last known residence address and telephone number
C. Use of City Facilities
City facilities may be used with the prior approval of Management for the purpose of holding meetings, if such facilities can be made available without disrupting the normal operations of the facilities.
Each work location will provide a bulletin board or reasonable space that may be used by the Association for the posting of notices of official Association business and/ or Association related articles.
D. Association Bank of Hours
The City agrees to maintain the bank of hours available for Association activity at eighty (80) hours each fiscal year. A formal notification shall be given to the Human Resources office on July 1 of each year of the names of duly appointed Association representatives and at any time thereafter when an addition or deletion of the list is made.
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
Those items charged to the Bank of Hours shall be for routine Association business, including Association sponsored workshops. The designated pay code of “335” shall be used on employee timesheets to indicate hours chargeable to the Bank of Hours.
Association business not charged to the Bank of Hours shall be tracked for time spent in these activities: MOU negotiations and Meet and Confers. Employees engaged in these activities shall use a project code of “1100” on timesheets to indicate Association activity.
Should the regular Association bank of eighty (80) hours be exhausted a case-bycase request to increase hours will be considered.
E. Voluntary Political Contributions
City agrees that bargaining unit employees will be allowed to make voluntary political contributions to the Association’s Political Action Committee through payroll deductions.
ARTICLE 17
MANAGEMENT RIGHTS CLAUSE
A. The City and Association agree that the City retains and has the exclusive decision-making authority to manage municipal services and the work force performing those services in accordance with existing law and provisions of the established MOU.
B. The Association further agrees that the City has, except as expressly and lawfully restricted by specific provisions of the MOU, the exclusive decision-making authority to:
1. Determine and modify the organization of City government and its constituent work units.
2. Determine the nature, standards, levels and mode of delivery of services to be offered to the public.
3. Determine the methods, means, and the numbers and kinds of personnel by which services are to be provided.
4. Determine whether goods or services shall be made, purchased or contracted for.
5. No bargaining unit employee shall be laid off, demoted or suffer loss of pay or benefits as a result of the contracting out of work. The parties agree to meet
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
and confer as required by law on matters relating to wages, hours or working conditions. Said provisions will apply except for contracts required by bona fide emergencies.
6. Direct employees, including scheduling and assigning work and overtime.
7. Establish employee performance standards and require compliance therewith.
8. Discharge, suspend, demote, reduce in pay, reprimand, withhold salary increases and benefits, or otherwise discipline employees subject to the requirements of applicable law.
9. Relieve employees from duty because of lack of work or lack of funds or for other legitimate reasons.
10.Implement rules, regulations and directives consistent with the law and the specific provisions of the MOU.
11.Take all necessary actions to protect the public and carry out its mission in emergencies.
C. If the exercise of these management rights impact members’ wages, hours or working conditions, City agrees to meet and confer with Association pursuant to State law.
D. Except as provided or within the City’s Personnel Rules and Regulations and the existing and effective MOU, decisions under this article shall not be subject to the Grievance Procedure.
ARTICLE 18
SEVERABILITY
If an article, section, position or portion thereof contained in this Memorandum of Understanding or application thereof to any person or circumstance is held to be unconstitutional, invalid by operation of law, or by any tribunal or office of competent jurisdiction, or if compliance with or enforcement of any article or section should be restrained by tribunal or office, the remainder of the Memorandum of Understanding and application of such provisions or portion thereof, to other persons or circumstances, shall be deemed severable, shall not be affected, and shall remain in full force and effect.
Furthermore, the City and the Association shall enter into immediate negotiations for the purpose of arriving at a mutually satisfactory replacement of such article, section, position or portion.
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
ARTICLE 19
EFFECT
It is understood and agreed that this agreement shall not become effective for any purpose or be binding on either party until approved by the City Council and the bargaining unit membership, and nothing herein shall be construed as obligating the City Council to approve in whole or in part. If the City Council approves in full, then this agreement shall become effective July 1, 2024. This Memorandum of Understanding (MOU) constitutes and includes all negotiations, compromises, and representations made by either party; and both parties acknowledge that each has met and conferred in good faith in negotiations to this point.
ARTICLE 20
LABOR-MANAGEMENT COMMITTEE
The City and Association may, from time to time, create a Joint Labor-Management (JLM) Committee. The purpose of the Committee will be to discuss issues of concern to both the Association and the City and the Committee will meet as needed by mutual agreement of the parties.
ARTICLE 21
TERM
This MOU will be effective as of July 1, 2024, and will continue through midnight June 30, 2027.
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
IN WITNESS THEREOF, the parties hereto have caused this Memorandum of Understanding to be executed this 22nd day of October, 2024,
FOR THE CITY FOR THE UNION
______________________________ ______________________________ Steve Carmona Jeffrey Natke
City Manager CEA
______________________________ ______________________________ Angelina Garcia Eyvette Ruiz
Assistant City Manager
______________________________ ______________________________ Karine Shirinian Leticia Reyes
Director of Human Resources
______________________________
Juliean Martinez
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
APPENDIX A
MID-MANAGER AND PROFESSIONAL & CONFIDENTIAL CLASSIFICATIONS *Analyst (PC)
Assistant City Engineer (PC)
Assistant to the City Manager (PC)
*Budget Analyst (PC)
Building Official (PC)
City Engineer (PC)
City Deputy Treasurer (PC)
*Community & Econ. Development
Analyst (PC)
*Coordinator (MM)
Deputy City Clerk (MM)
*Executive Assistant (PC)
*Human Resources Coordinator (MM)
*Junior Deputy City Clerk (PC)
Manager (PC)
*Parks and Recreation Supervisor (MM)
*Planner (PC)
Principal Accountant (PC)
Principal Analyst (PC)
Principal Planner (PC)
Public Information Officer (PC)
Public Works Superintendent (PC)
Senior Accountant (PC)
Senior Analyst (PC)
*Senior Coordinator (MM)
Senior Engineer (PC)
*Senior Executive Assistant (PC)
*Senior Human Resources Technician
(MM)
Senior Information Technology Manager
(PC)
Senior Inspector (MM)
Senior Manager (PC)
Senior Planner (PC)
Senior Public Information Officer (PC)
Senior Supervisor (MM)
Senior Water Treatment Supervisor (MM)
*Senior Technician (MM)
*Street Maintenance Supervisor (MM)
*Supervisor (MM)
*Sustainability Technician (MM)
*Technician (MM)
Utilities Superintendent (PC)
*Water Distribution Supervisor (MM)
(*) – Denotes Position NOT At-Will
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
APPENDIX B
SALARY SCHEDULES
EFFECTIVE FISCAL YEAR 2024-25
*Salary ranges below reflect 4.0% cost of living adjustment for FY 2024-25 effective (retroactive to) the first full pay period in July, 2024;
Fiscal Year 2024-25
Classification
Minimum Mid Maximum
2024-2025 2024-2025 2024-2025
4% 4% 4%
Analyst $7,047 $8,386 $9,725
Assistant City Engineer $11,435 $12,290 $13,145
Assistant to the City Manager $12,758 $13,714 $14,671
Budget Analyst $7,047 $8,386 $9,725
Building Official $12,515 $13,391 $14,267
Community & Econ. Development Analyst $7,047 $8,386 $9,725 Coordinator $6,242 $7,248 $8,253
Deputy City Clerk $6,422 $7,128 $7,833
Executive Assistant $5,210 $6,501 $7,792
Human Resources Coordinator $6,242 $7,248 $8,253
Junior Deputy City Clerk $5,233 $6,352 $7,471
Manager $8,154 $9,469 $10,785
Parks and Recreation Supervisor $8,256 $9,082 $9,909
Planner $7,047 $8,386 $9,725
Principal Accountant $11,435 $12,290 $13,145
Principal Analyst $11,435 $12,290 $13,145
Principal Planner $11,435 $12,290 $13,145
Public Information Officer $7,047 $8,386 $9,725
Public Works Superintendent $9,377 $10,944 $12,512
Senior Accountant $9,730 $10,581 $11,433
Senior Analyst $9,730 $10,581 $11,433
Senior Coordinator $8,256 $9,082 $9,909
Senior Engineer $9,730 $10,581 $11,433
Senior Executive Assistant $8,028 $8,549 $9,071
Senior Human Resources Technician $7,929 $8,821 $11,173 Senior Information Technology Manager $10,789 $11,651 $12,512
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
Senior Inspector $7,929 $8,821 $11,173
Senior Manager $10,789 $11,651 $12,512
Senior Planner $9,730 $10,581 $11,433
Senior Public Information Officer $9,730 $10,581 $11,433 Senior Supervisor $9,910 $10,653 $11,396
Senior Water Treatment Supervisor $9,910 $10,653 $11,396 Senior Technician $7,929 $8,821 $11,173
Street Maintenance Supervisor $8,256 $9,082 $9,909
Supervisor $8,256 $9,082 $9,909
Sustainability Technician $5,555 $6,741 $7,928
Technician $5,555 $6,741 $7,928
Utilities Superintendent $9,377 $10,944 $12,512
Water Distribution Supervisor $8,256 $9,082 $9,909
SALARY SCHEDULES
EFFECTIVE FISCAL YEAR 2025-26
3.0% cost of living adjustment for FY 2025-26 effective the first full pay period in July, 2025; Fiscal Year 2025-26
Classification
Minimum Mid Maximum
2025-2026 2025-2026 2025-2026
3% 3% 3%
Analyst $7,258 $8,638 $10,017
Assistant City Engineer $11,778 $12,659 $13,539
Assistant to the City Manager $13,141 $14,125 $15,111
Budget Analyst $7,258 $8,638 $10,017
Building Official $12,890 $13,793 $14,695
Community & Econ. Development Analyst $7,258 $8,638 $10,017 Coordinator $6,429 $7,465 $8,501
Deputy City Clerk $6,615 $7,342 $8,068
Executive Assistant $5,366 $6,696 $8,026
Human Resources Coordinator $6,429 $7,465 $8,501
Junior Deputy City Clerk $5,390 $6,543 $7,695
Manager $8,399 $9,753 $11,109
Parks and Recreation Supervisor $8,504 $9,354 $10,206
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
Planner $7,258 $8,638 $10,017
Principal Accountant $11,778 $12,659 $13,539
Principal Analyst $11,778 $12,659 $13,539
Principal Planner $11,778 $12,659 $13,539
Public Information Officer $7,258 $8,638 $10,017
Public Works Superintendent $9,658 $11,272 $12,887
Senior Accountant $10,022 $10,898 $11,776
Senior Analyst $10,022 $10,898 $11,776
Senior Coordinator $8,504 $9,354 $10,206
Senior Engineer $10,022 $10,898 $11,776
Senior Executive Assistant $8,269 $8,805 $9,343
Senior Human Resources Technician $8,167 $9,086 $11,508 Senior Information Technology Manager $11,113 $12,001 $12,887 Senior Inspector $8,167 $9,086 $11,508
Senior Manager $11,113 $12,001 $12,887
Senior Planner $10,022 $10,898 $11,776
Senior Public Information Officer $10,022 $10,898 $11,776 Senior Supervisor $10,207 $10,973 $11,738
Senior Water Treatment Supervisor $10,207 $10,973 $11,738 Senior Technician $8,167 $9,086 $11,508
Street Maintenance Supervisor $8,504 $9,354 $10,206
Supervisor $8,504 $9,354 $10,206
Sustainability Technician $5,722 $6,943 $8,166
Technician $5,722 $6,943 $8,166
Utilities Superintendent $9,658 $11,272 $12,887
Water Distribution Supervisor $8,504 $9,354 $10,206
SALARY SCHEDULES
EFFECTIVE FISCAL YEAR 2026-27
3.0% cost of living adjustment for FY 2026-27 effective the first full pay period in July, 2026 Fiscal Year 2026-27
Classification
Minimum Mid Maximum
2026-2027 2026-2027 2026-2027
3% 3% 3%
Analyst $7,476 $8,897 $10,317
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
Assistant City Engineer $12,131 $13,038 $13,946
Assistant to the City Manager $13,535 $14,549 $15,564
Budget Analyst $7,476 $8,897 $10,317
Building Official $13,277 $14,207 $15,136
Community & Econ. Development Analyst $7,476 $8,897 $10,317 Coordinator $6,622 $7,689 $8,756
Deputy City Clerk $6,813 $7,562 $8,310
Executive Assistant $5,527 $6,897 $8,267
Human Resources Coordinator $6,622 $7,689 $8,756
Junior Deputy City Clerk $5,552 $6,739 $7,926
Manager $8,651 $10,046 $11,442
Parks and Recreation Supervisor $8,759 $9,635 $10,512
Planner $7,476 $8,897 $10,317
Principal Accountant $12,131 $13,038 $13,946
Principal Analyst $12,131 $13,038 $13,946
Principal Planner $12,131 $13,038 $13,946
Public Information Officer $7,476 $8,897 $10,317
Public Works Superintendent $9,948 $11,610 $13,274
Senior Accountant $10,323 $11,225 $12,129
Senior Analyst $10,323 $11,225 $12,129
Senior Coordinator $8,759 $9,635 $10,512
Senior Engineer $10,323 $11,225 $12,129
Senior Executive Assistant $8,517 $9,070 $9,623
Senior Human Resources Technician $8,412 $9,358 $11,853 Senior Information Technology Manager $11,446 $12,361 $13,274 Senior Inspector $8,412 $9,358 $11,853
Senior Manager $11,446 $12,361 $13,274
Senior Planner $10,323 $11,225 $12,129
Senior Public Information Officer $10,323 $11,225 $12,129 Senior Supervisor $10,514 $11,302 $12,090
Senior Water Treatment Supervisor $10,514 $11,302 $12,090 Senior Technician $8,412 $9,358 $11,853
Street Maintenance Supervisor $8,759 $9,635 $10,512
Supervisor $8,759 $9,635 $10,512
Sustainability Technician $5,893 $7,152 $8,411
MID-MANAGERS, PROFESSIONALS, & CONFIDENTIAL EMPLOYEES
ASSOCIATION
MEMORANDUM OF UNDERSTANDING
July 1, 2024 – June 30, 2027
Technician $5,893 $7,152 $8,411
Utilities Superintendent $9,948 $11,610 $13,274
Water Distribution Supervisor $8,759 $9,635 $10,512
To: Mayor and City Council
From: City Manager
Meeting Date: October 22, 2024
Subject: SIDE LETTER AGREEMENTS FOR A HOLIDAY
OBSERVANCE DATE CHANGE FOR FISCAL YEAR 2024-
25 Recommendation:
1. Approve side letter agreements between the City of Pico Rivera and the Service Employees International Union (SEIU) – Directors Bargaining Unit, Service Employees’ International Union – Local 721 Full-Time Bargaining Unit, and the MidManagers, Professional and Confidential Employees Association (CEA) for a holiday observance date change.
Fiscal Impact:
There is no fiscal impact to the General Fund associated with this recommendation.
Background:
The City of Pico Rivera (City) has 12 observed holidays, one (1) of which is the Day After Thanksgiving Day. Since the City transitioned to a 4/10 work schedule and closed every Friday, the Day After Thanksgiving holiday has been observed on the Wednesday before Thanksgiving Day.
Discussion:
This year, due to the leap-year calendar, Christmas Eve, Christmas Day, New Year’s Eve and New Year’s Day fall in the middle of the week. The City and SEIU – Directors Union, SEIU Full-Time Employees’ Union and CEA came to an agreement to close during the holidays from December 23, 2024, to January 2, 2025, during which employees must use accrued leave for non-observed holidays within those weeks. Moving the Day After Thanksgiving Holiday to December 24, 2024, will result in employees having to use 10 hours less of accrued leave to cover the holiday closure. 7 CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024
SIDE LETTER AGREEMENTS FOR A HOLIDAY OBSERVANCE DATE CHANGE FOR FISCAL YEAR 2024-25
Since the current list of observed holidays are memorialized in the Memorandum of Understanding’s (MOUs), a side letter must document this change for each existing MOU that this applies to.
This agreement will only apply to the 2024 holidays. Should the parties wish to discuss holiday closures for 2025 or subsequent years, they may do so through the meet and confer process.
Conclusion:
Staff recommend that the City Council approve a resolution (Enclosure 1) adopting all three (3) side letters (Exhibit A-C) for SEIU – Directors Union, SEIU Full-Time Employees’ Union and CEA regarding the change of the observed Day After Thanksgiving holiday to Christmas Eve, December 24, 2024.
Steve Carmona
SC:KS:sp
Enclosure: 1) Resolution/Exhibits A, B, and C
RESOLUTION NO. _______
A RESOLUTION OF THE CITY COUNCIL OF THE CITY OF PICO
RIVERA, CALIFORNIA, APPROVE SIDE LETTER AGREEMENTS
BETWEEN THE CITY OF PICO RIVERA AND SERVICE EMPLOYEES’
INTERNATIONAL UNION – DIRECTORS UNIT, SERVICE EMPLOYEES’ INTERNATIONAL UNION – LOCAL 721 FULL-TIME UNIT, AND MIDMANAGERS AND PROFESSIONAL AND CONFIDENTIAL EMPLOYEES’ ASSOCIATION FOR A HOLIDAY OBSERVANCE DATE
CHANGE FOR FISCAL YEAR 2024-2025
WHEREAS, the current holidays observed include the Day After Thanksgiving Day; and
WHEREAS, City and SEIU – Directors Union, SEIU Full-Time Employees’ Union and CEA came to an agreement to move the Day After Thanksgiving Holiday to December 24, 2024, for fiscal year 2024-2025; and
WHEREAS, Current list of observed holidays are memorialized in the Memorandum of Understandings (MOU), a side letter must document this change for each existing MOU that this applies to.
NOW, THEREFORE, BE IT RESOLVED by the City Council of the City of Pico Rivera as follows:
SECTION 1. The side letters for each union as reviewed and approved by Human Resources and the members of the Pico Rivera Service Employees International Union Local 721 – Full-Time Bargaining Unit, Service Employees’ International Union – Directors Unit and Mid-Managers and Professional and Confidential Employees Association as set forth in Exhibit “A”, “B”, and “C” attached hereto is hereby adopted.
SECTION 2. The City Council reserves the right and discretion to review and amend this Resolution as it deems necessary.
SECTION 3. The City Clerk shall attest to the passage of this resolution, and it shall thereupon be in full force effect.
APPROVED AND PASSED this 22nd day of October, 2024.
____________________________
Andrew C. Lara, Mayor
Enclosure 1
7a
RESOLUTION NO. ____
ATTEST: APPROVED AS TO FORM:
________________________ _________________________________ Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney AYES:
NOES:
RESOLUTION NO. ____
Exhibit “A”
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF PICO RIVERA
AND
SERVICE EMPLOYEES’ INTERNATION UNION
LOCAL 721 – DIRECTORS BARGAINING UNIT
This Side Letter of Agreement ("Agreement") between the City of Pico Rivera ("City") and the Service Employees International Union Local 721, Directors Unit ("SEIU") (collectively "Parties") is entered into with respect to the following:
The Parties agree that for 2024, their previously agreed upon holiday of the Day after Thanksgiving will be observed on December 24, 2024.
This Agreement only applies to the 2024 list of observed holidays. If the Parties wish to address this issue in 2025 or subsequent years, they may do so through the meet and confer process.
FOR THE CITY FOR THE UNION
_________________________ _________________________
Steve Carmona, City Manager Jane Guo, SEIU Local 721 –
Directors Unit
_________________________ _________________________
Date Date
RESOLUTION NO. ____
Exhibit “B”
SIDE LETTER OF AGREEMENT
BETWEEN
CITY OF PICO RIVERA
AND
PICO RIVERA MID MANAGERS AND PROFESSIONAL & CONFIDENTIAL
EMPLOYEES ASSOCIATION
This Side Letter of Agreement ("Agreement") between the City of Pico Rivera ("City") and the Mid Managers and Professional and Confidential Employees Association ("CEA") (collectively "Parties") is entered into with respect to the following:
The Parties agree that for 2024, their previously agreed upon holiday of the Day after Thanksgiving will be observed on December 24, 2024.
This Agreement only applies to the 2024 list of observed holidays. If the Parties wish to address this issue in 2025 or subsequent years, they may do so through the meet and confer process.
FOR THE CITY FOR THE UNION
_________________________ _________________________
Steve Carmona, City Manager Jefferey Natke, CEA Chief Negotiator _________________________ _________________________
Date Date
RESOLUTION NO. ____
Exhibit “C”
SIDE LETTER AGREEMENT
BETWEEN
CITY OF PICO RIVERA
AND
SERVICE EMPLOYEES’ INTERNATIONAL UNION
LOCAL 721, FULL-TIME EMPLOYEES UNIT
This Side Letter of Agreement ("Agreement") between the City of Pico Rivera ("City") and the Service Employees International Union Local 721 Full-Time Employees Unit ("SEIU") (collectively "Parties") is entered into with respect to the following:
The Parties agree that for 2024, their previously agreed upon holiday of the Day after Thanksgiving will be observed on December 24, 2024.
This Agreement only applies to the 2024 list of observed holidays. If the Parties wish to address this issue in 2025 or subsequent years, they may do so through the meet and confer process.
FOR THE CITY FOR THE UNION
_________________________ _________________________
Steve Carmona, City Manager Steve Koffroth, SEIU Local 721 Chief Negotiator
_________________________ _________________________
Date Date
To: Mayor and City Council
From: City Manager
Meeting Date: October 22, 2024
Subject: AMENDMENT NO. 2 TO AGREEMENT NO. 21-2049, FOR
PROFESSIONAL SERVICES, AND INFORMATION
TECHNOLOGY MANAGEMENT SERVICES WITH INFINITY
TECHNOLOGIES
Recommendation:
1. Approve Amendment No. 2 to Agreement No. 21-2049 with Infinity Technologies for Information Technology (IT) Professional Services, with an estimated annual compensation of $180,000 and extend the term for an additional three (3) years for a not-to-exceed amount of $540,000 over the span of the three-year term extension;
2. Authorize the City Manager to execute the amendment in a form approved by the City Attorney; and
3. Authorize the City Manager or his designee to approve change orders in an amount not-to-exceed 15% of the total agreement amount, as needed for unforeseen services.
Fiscal Impact:
Sufficient funding is available in the fiscal year (FY) 2024-25 Adopted Budget within the General Fund (Account No. 100.20.6040.54500). No additional appropriations are required at this time.
Background:
In September 2021, the City of Pico Rivera (City) initiated the process to address various outsourcing for its IT needs. The desired services included IT management services in the areas of network analysis and technical support, systems support, computer operations support, PC desktop technical support, software integration support, project manager for software implementation, and IT policy and procedure development. These services were necessary to ensure continuity of the City’s technical environment and upcoming plans for citywide operations.
On November 9, 2021, the City Council approved Agreement No. 21-2049 with Infinity Technologies for IT Management Services, with a total annual compensation not-to8 CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 AMENDMENT NO. 2 TO AGREEMENT NO. 21-2049, FOR PROFESSIONAL
SERVICES AND INFORMATION TECHNOLOGY MANAGEMENT SERVICES WITH
INFINITY TECHNOLOGIES
exceed (NTE) of $200,000. This agreement included essential IT services such as network analysis, technical support, and systems support.
In April 2024, the City increased the contract by $100,000 to meet the immediate needs of the department, particularly as Infinity Technologies continued to support ongoing IT initiatives such as 3Di, Laserfiche, and other City projects.
It is important to note that while the cost of receiving IT services has significantly increased over the past few years, Infinity Technologies’ IT fees and rates have remained consistent since the commencement of the contract in 2021.
Discussion:
Since the inception of Agreement No. 21-2049, Infinity Technologies has consistently provided satisfactory IT management services to the City, ensuring the smooth operation of our technical environment. Their expertise and dedication have been instrumental in successfully executing various IT projects and initiatives, such as network analysis, and software integration.
Infinity Technologies brings forward-thinking solutions and personalized services to the City through its extensive local government knowledge and experienced subject matter experts in both Information Technology and Geographic Information System services.
Over the last three (3) years, the City’s partnership with Infinity Technologies has resulted in successfully improving overall system reliability and performance, enhanced cybersecurity posture, while optimizing IT costs and investments.
With a budget-conscious approach, Infinity Technologies understands the City’s fiscal responsibilities in the delivery of municipal services and has provided key guidance in identifying critical needs while also implementing cost-effective solutions for the City’s short-term priorities and initiatives.
Since 2021, Infinity Technologies has partnered with the City and contributed key services designed to improve the City’s network reliability, secure infrastructure, and implement cost-saving measures. Over the last three (3) years, Infinity Technologies’ dedicated team has committed to supporting the City’s IT goals and objectives. Examples of successful projects and initiatives completed over this initial period include:
1) Technology Assessment – Evaluation identified technology gaps and provided targeted recommendations for improving overall system reliability and performance. 2) Strategic Planning – Collaborated with the City to develop and implement IT strategies that align with the City’s short and long-term goals and continued guidance on emerging technologies, infrastructure investments, and compliance with relevant regulations. In 2022, Infinity Technologies completed a Business Plan and a Strategic CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 AMENDMENT NO. 2 TO AGREEMENT NO. 21-2049, FOR PROFESSIONAL
SERVICES AND INFORMATION TECHNOLOGY MANAGEMENT SERVICES WITH
INFINITY TECHNOLOGIES
Implementation Roadmap summarizing specific activities for achieving key priorities. 3) Project Management Support – The IT team has provided valuable guidance, expertise, and oversight for several planned projects, including:
a. Phone System Upgrade
b. City Hall Internet Improvements
c. Document Management System Implementation (in progress) d. Streamlined Antivirus Management
e. Centralized IT Documentation
f. Server Room Upgrades (in progress)
g. Office 365 Implementation
h. Website Enhancements (in progress)
i. Various Departmental Software Upgrades (in progress) j. City Hall Surveillance System Upgrade
k. Audio/Visual Integration Support
l. Security Assessment
Infinity Technologies has invested significant time and resources to understand the City’s unique needs and to develop customized solutions. With several critical projects underway, staying the course will ensure that these projects are completed without delay or disruption, allowing the City to realize the full benefit of these improvements. 4) Cybersecurity Focus – Development of a robust program to protect against known and emerging threats, including penetration testing to identify weaknesses and tabletop exercises to strengthen incident response.
5) IT Policy and Staff Training – Development IT policy outlining acceptable use, data handling practices, and security standards. Regular cybersecurity training is also provided to promote security awareness.
6) Incident Response Planning – Development of a step-by-step guide on how to handle security breaches to ensure the City responds quickly and efficiently. The plan defines roles and responsibilities, outlining procedures for identifying, containing, eradicating, and recovering from incidents.
Infinity Technologies is committed to continuing to deliver an IT service model that addresses the City’s immediate needs while remaining adaptable to future challenges.
With strong expertise in Microsoft solutions, a focus on cybersecurity, and a commitment to efficient day-to-day Helpdesk support and operations, Infinity Technologies will continue to ensure the City's IT infrastructure is robust, secure, and reliable.
The City staff would like to emphasize the importance of our partnership with Infinity Technologies and recognize their exemplary work over the past three (3) years by CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 AMENDMENT NO. 2 TO AGREEMENT NO. 21-2049, FOR PROFESSIONAL
SERVICES AND INFORMATION TECHNOLOGY MANAGEMENT SERVICES WITH
INFINITY TECHNOLOGIES
extending their contract terms and increasing the contract amount to match work demand and current service levels.
Amendment 1
Given the growing demands on the City’s IT infrastructure and the need for expanded support services, adjusting the financial parameters of the agreement with Infinity Technologies became imperative. Amendment No. 1, approved in April 2024, increased the contract by $100,000 to address the immediate needs of the department, in particular, as Infinity Technologies has been supporting ongoing IT initiatives such as 3Di, Laserfiche, and other City IT related initiatives. This adjustment was necessary to address the increasing complexity and volume of IT tasks and projects the City faces. The additional funding allowed Infinity Technologies to sustain and improve our IT systems' efficiency, reliability, and security, ensuring smooth operations and the best possible service delivery to the community.
Amendment 2
After reviewing the IT workload, staff recommends Amendment No. 2, reinforcing the City’s commitment to Infinity Technologies by adjusting the annual compensation to approximately $180,000 and extending the agreement until October 31, 2027 (at a not-toexceed amount of $540,000 over the three (3) year extension), with a 15% contingency for unforeseen technological needs. This extension and adjusted compensation will enable Infinity Technologies to maintain its high-quality services and ensure the City’s IT infrastructure stays secure, efficient, and prepared for future needs.
Conclusion:
Staff recommends that the City Council approve Amendment No. 2 to Agreement No. 21- 2049 with Infinity Technologies, adjusting the total annual compensation for services to $180,000, extending the agreement term through October 31, 2027, and authorizing the City Manager to execute the amendment and allow for a 15% contingency for unforeseen technological needs. This amendment is essential for addressing the City’s growing IT needs and reinforcing our commitment to operational productivity, stability, and modernization.
Steve Carmona
SC:JG:KL:ep
Enclosure: 1) Amendment No. 2
AMENDMENT NO. 2
TO THE PROFESSIONAL SERVICES AGREEMENT
WITH INFINITY TECHNOLOGIES, AGREEMENT NO. 21-2049-1
THIS AMENDMENT NO. 2 TO AGREEMENT NO. 21-2049-1 FOR
PROFESSIONAL SERVICES WITH INFINITY TECHNOLOGIES (“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 INFINITY TECHNOLOGIES, (“CONSULTANT”).
RECITALS
A. CITY and CONSULTANT (collectively referred to as the “PARTIES”) have previously executed that certain Agreement for Professional Services, Agreement No. 21-2049- 1 (“Agreement”) relating to professional services in the City of Pico Rivera.
B. The PARTIES desire to amend said Agreement as set forth herein, pursuant to Section 5.1 of the Agreement.
NOW, THEREFORE, THE PARTIES AGREE AS FOLLOWS:
1. MODIFICATION OF CONSULTANT’S COMPENSATION.
The “Total Compensation” listed in Section 5.1 of the Agreement is hereby amended to read as follows:
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 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 monthly sum of Fifteen Thousand Dollars ($15,000), or the annual sum of One Hundred Eighty Thousand Dollars ($180,000), unless specifically approved in advance, in writing, by City.
2. EFFECT OF AMENDMENTS.
Except as modified herein, either expressly or by necessary implication, the terms and provisions of the Agreement between the CITY and CONSULTANT shall remain in full force and effect.
3. EFFECTIVE DATE; TERM EXTENSION.
This Amendment No. 2 shall become effective on November 1, 2024, and shall expire on October 31, 2027, unless otherwise specified herein or terminated earlier 8a
Enclosure 1
Professional Services Agreement
INFINITY TECHNOLOGIES
by the parties. The date on which the last of the parties, whether CITY or CONSULTANT, executes this Amendment No. 2 shall be considered the date of execution.
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 INFINITY TECHNOLOGIES
______________________________ _________________________________ Steve Carmona, City Manager Mohammad Ahmed, President/CEO Dated: ________________________ Dated: ____________________________ ATTEST: APPROVED AS TO FORM
___________________________ _________________________________ Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney September 30, 2024
CITY OF PICO RIVERA
IT MANAGEMENT SERVICES
AMENDMENT NO. 2 TO AGREEMENT NO. 21-2049 -1
BACKGROUND
Infinity Technologies would like to thank the City of Pico Rivera (City) for the opportunity to continue our partnership and provide Information Technology Management Services as needed to support the City’s technology goals and objectives. A summary of the original terms of Agreement No. 21-2049 (Agreement) is noted below:
I. The Term of the Agreement commenced on November 1, 2024, and shall expire on October 31, 2027.
II. Compensation for services provided is based on a monthly fee of $15,000 or a total of $180,000 per year.
III. Exhibit A – Scope of Services remains unchanged.
SCOPE OF SERVICES
Our current Scope of Services includes the tasks noted below. Detailed information for each task is referenced within the current Agreement.
Task 1. General IT Management Services
1) Desktop Support
2) Computer Server Operations
3) Network and Systems Support
4) Help Desk Services
Task 2. IT Project Management Services
Task Orders for project support are issued as needed by the City throughout the term of the Agreement.
MONTHLY IT SERVICES – TIME & MATERIALS (T&M)
Task Estimated Monthly
Cost
Estimated
Total
Information Technology Management Services
1. General IT Management Services
2. IT Project Management Services
$15,000 $180,000
Total Amendment: $180,000
IT HOURLY RATE SCHEDULE
IT Classification
Current Proposed
Agreement Agreement
IT Project Manager $145 $145
IT Network Engineer $135 $135
IT Senior Analyst $130 $130
IT Analyst $105 $105
IT Technician $90 $90
Help Desk Services $75 $75
To: Mayor and City Council
From: City Manager
Meeting Date: October 22, 2024
Subject: ANNUAL SIGNING AND STRIPING IMPROVEMENTS
PROJECT (CIP NO. 50109) – AWARD CONSTRUCTION
Recommendation:
1. Award a Construction Contract for a not-to-exceed amount of $343,787 to WGJ Enterprises, Inc., dba PCI (PCI), for the Annual Signing and Striping Improvements Project (FY 2023-24), CIP No. 50109 (Project) and authorize the City Manager to execute the contract in a form approved by the City Attorney;
2. Approve the plans and specifications for the Project;
3. Authorize the Public Works Director to process change orders, as needed, in an amount not-to-exceed $68,800 (approximately 20% of the total contract amount) for construction contingency;
4. Amend the fiscal year (FY) 2024-25 Adopted Budget by transferring funding in the amount of $214,910 in Measure R Funds (Fund 207) from Account No. 207.70.7300-54500-CIP50081 Annual Signing & Striping (FY 2022-23) to Account No. 207.70.7300-54500-CIP50109; and
5. Approve the Notice of Exemption (NOE) for the subject project and authorize the City Clerk to file the NOE with the County Recorder, in accordance with the California Environmental Quality Act (CEQA).
Fiscal Impact:
A budget transfer in the amount of $214,910 is needed to cover the total Project costs.
The $214,910 will be transferred from the available Measure R funds under CIP No. 50081, Account No. 207.70.7300-54500-CIP50081 Annual Signing & Striping (FY 2022- 23) to Account No. 207.70.7300-54500-CIP50109 to provide sufficient funding for the project.
9 CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 ANNUAL SIGNING AND STRIPING IMPROVEMENTS PROJECT (CIP NO. 50109) –
AWARD CONSTRUCTION
The following table summarizes the funding sources:
Funding Budget
Measure R- Fund 207 (CIP 50109) $240,000
Transfer from Measure R- Fund 207 (CIP 50081) $214,910
Total Project Budget (CIP 50109) $454,910
The total estimated project cost of $436,600 is below the project budget of $454,910.
Any project funds remaining at the end of the project will be transferred into the respective fund balances for reallocation to future projects. This action will combine the Annual Signing & Striping Projects (FY 2022-23 and FY 2023-24) into one (1) project.
Discussion:
The Capital Improvement Program (CIP) includes funding for improvements and rehabilitation of roadway signing and striping on an annual basis. Signing and striping improvements consist of removing and replacing existing roadway signage, restriping existing roadway markings, including worn and faded legends and crosswalks. New striping is completed using thermoplastic, a more durable type of roadway paint.
Installation of raised pavement markers per Caltrans standard details is also included to increase safety and visibility during inclement weather and low-light conditions.
Staff evaluated the condition of existing pavement markings on major arterials throughout the City. Based on the evaluation, Beverly Boulevard from San Gabriel River Parkway to the easterly City limits, Paramount Boulevard from Rex Road to Washington Boulevard, Rosemead Boulevard from Telegraph Road to Terradell Street, Passons Boulevard from Telegraph Road to Shade Lane, Passons Boulevard from Washington Boulevard to Whittier Boulevard, San Gabriel River Parkway at Springland Drive, were selected as the highest priority based on their condition and the amount of vehicular traffic on these roads. Staff developed specifications and contract documents approved by the City Engineer and are available in the Public Works Department for review.
On August 30, 2024, and September 6, 2024, the Notice Inviting Bids (NIB) was advertised in the Cerritos Newspaper and was posted on Planet Bids through the City’s website. On September 26, 2024, five (5) bids were received. [This section is intentionally left blank]
CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 ANNUAL SIGNING AND STRIPING IMPROVEMENTS PROJECT (CIP NO. 50109) –
AWARD CONSTRUCTION
The following summarizes the bids received:
Construction Company Bid Amount
1. PCI $343,787
2. Superior Pavement Markings, Inc. $425,833
3. Toro Enterprises, Inc. $435,016
4. Chrisp Company $495,099
5. Sterndahl Enterprises, LLC $516,597
Staff completed the analysis of the bids and determined PCI to be the apparent low and responsible bidder. PCI has previously performed work on jobs of similar size and scope for the City. Their bid proposal and pertinent documents are in order.
The anticipated schedule for the project is as follows:
• Award Construction …………..… October 2024
• Start Construction ………………. January 2025
• Complete Construction …………. March 2025
Construction management and inspection services will be provided by Engineering Division staff from the Department of Public Works.
The total project budget is summarized as follows:
Project Expenditures Amount
Project Administration $12,000
Construction $343,800
Contingency (20%) $68,800
Construction Management & Inspection $12,000
Total Estimated Project Cost $436,600
This action will combine the Annual Signing & Striping Projects (FY 2022-23 and FY 2023-24) into one (1) project.
CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 ANNUAL SIGNING AND STRIPING IMPROVEMENTS PROJECT (CIP NO. 50109) –
AWARD CONSTRUCTION
Environmental Analysis:
The project has been reviewed for environmental compliance. Pursuant to the guidelines of the California Environmental Quality Act (CEQA), the Signing and Striping Improvements Project is categorically exempt under Class 1 Section 15301(c) for existing facilities (Enclosure 2). Under CEQA, a project is exempt if the scope of work is limited to the repair, maintenance, reconstruction or minor alterations of an existing street.
Conclusion:
Staff recommends award of a construction contract to PCI for a not-to-exceed amount of $343,787. Additionally, authorize the Public Works Director to process change orders, as needed, in an amount not-to-exceed $68,800 (approximately 20% of the total contract amount) for construction contingency to complete the project. Lastly, amend the FY 2024-25 Adopted Budget by transferring $214,910 from Account No. 207.70.7300-54500-CIP50081 to Account No. 207.70.7300-54500-CIP50109.
Steve Carmona
SC:NN:NC:np
Enclosures: 1) Construction Contract
2) CEQA Notice of Exemption
AGREEMENT NO. _______
CITY OF PICO RIVERA CONTRACT FOR
ANNUAL SIGNING AND STRIPING IMPROVEMENTS PROJECT
CIP NO. 50109
THIS CONTRACT (“Contract”) is made and entered this 22 day of October, 2024 (“Effective Date”), by and between the CITY OF PICO RIVERA, a California municipal corporation (“City”) and WGJ Enterprises, Inc. dba PCI, a California corporation (“Contractor”). The Contractor’s California State Contractor’s license number is 415490.
In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1. Contract Documents. The Contract Documents consist of this Contract, the Notice Inviting Bids, Instructions to Bidders, Bid Proposal (including documentation accompanying the Bid Proposal and any post-Bid Proposal documentation submitted before the Notice of Award), the Bonds, permits from regulatory agencies with jurisdiction, General Provisions, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Addenda, Change Orders, and Supplemental Agreements. In the event there is a conflict between the terms of the Contract Documents, the more specific or stringent provision shall govern. City shall decide which option is the more specific or stringent provision. The Contract Documents are attached hereto and incorporated herein by reference.
2. Scope of Services. The Contractor shall perform and provide all materials, tools, equipment, labor, and services necessary to complete the Work in a good and workmanlike manner for the project identified as Annual Signing and Striping Improvements Project CIP No. 50109 (“Project”), as described in the Contract Documents.
3. Compensation.
3.1 Contract Price and Basis for Payment. In consideration for the Contractor’s full, complete, and timely performance of the Work required by the Contract Documents, the City shall pay the Contractor for the actual quantity of Work required under the Bid Items awarded by the City performed in accordance with the lump sum prices and unit prices for Bid Items, set forth in the Bidder’s Bid Schedule submitted with the Bid Proposal. The sum of the unit prices and lump sum prices for the Bid Items, awarded by the City is Three Hundred Forty-Three Thousand Seven Hundred Eighty-Six Dollars and Eighty Cents ($343,786.80). It is understood and agreed that the quantities set forth in the Bidder’s Proposal for which unit prices are fixed are estimates only and that the City will pay and the Contractor will accept, as full payment for these items of work, the unit prices set forth in the Bidder’s Proposal multiplied by the actual number of units performed, constructed, or completed as directed by the Engineer
3.2 Payment Procedures. Based upon applications for payment submitted by the Contractor to the City, the City shall make payments to the Contractor in accordance Enclosure 1
9a
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WGJ ENTERPRISES, INC. DBA PCI
with Section 7 of the Standard Specifications, as modified by Section 7 of the General Provisions.
3.3 Substitution of Securities. Pursuant to Public Contracts Code Sec. 22300 Contractor shall be allowed to substitute securities for any moneys withheld by the City to ensure performance under a contract, unless, federal regulations or policies, or both, do not allow the substitution of securities. At the request and expense of the Contractor, securities equivalent to the amount withheld shall be deposited with the City, or with a state or federally chartered bank in this state as the escrow agent, who shall then pay those moneys to the Contractor. Upon satisfactory completion of the contract, the securities shall be returned to the contractor.
4. Contract Time.
4.1 Notice to Proceed. The City shall issue the “Notice to Proceed” at which time the Contractor shall diligently complete the preconstruction requirments and prosecute the Work, including corrective items of Work, day to day thereafter, within Thirty (30) Working Days as part of the Contract Time to complete construction of the Project.
Preconstruction requirements include, but are not limited to, the following:
• Submitting and obtaining approval of Traffic Control Plans • Submitting and obtaining approval of the Stormwater Pollution Prevention Plan (SWPPP)/Water Pollution Control Plan (WPCP)
• Submitting and obtaining approval of critical required submittals, especially long lead items
• Installation of the approved Project Identification Signs • Obtaining an approved no fee Encroachment Permit
• Obtaining permits from outside agencies
• Obtaining a Temporary Use Permit for a construction yard • Notifying all agencies, utilities, residents, etc., as outlined in the Contract Documents
• Potholing of existing utilities which have potential conflicts with underground improvements (water and electrical conduit and sleeves, signal pole foundations and other underground work specified on the Contract Plans) The City reserves the right as to when to issue the Notice to Proceed.
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5. Liquidated Damages for Delay and Control of Work.
5.1 Liquidated Damages. The Contractor and the City have agreed to liquidate damages pursuant to Section 6-9 of the General Provisions.
6. Early Completion.
Not applicable.
7. Work After Stop Work Notice. Any work completed by the Contractor after the issuance of a Stop Work Notice by the City shall be rejected and/or removed and replaced as specified in the applicable Section of the Special Provisions.
8. Antitrust Claims. In entering into this Contract, the Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec.§ 15) or under the Cartwright Act (Business and Professions Code Section 16700 et seq.) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the City tenders final payment to the Contractor without further acknowledgment by the parties.
9. Prevailing Wages. The City and the Contractor acknowledge that the Project is a public work to which prevailing wages apply. Public Works projects shall be subject to the prevailing wage requirements of the California Labor Code Sections 1720 et seq.
10. Workers’ Compensation. Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Contract.”
11. Miscellaneous Statutory Requirements.
11.1. Contractor License. Contractor shall possess a California contractor’s license type for the performance of the Project.
11.2 Ineligible Contractor Prohibited. Any contractor or subcontractor who is ineligible to perform work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code is prohibited from performing work under this Contract.
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WGJ ENTERPRISES, INC. DBA PCI
11.3 Compliance with SB 854 Registration. This Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. No prime contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. No prime contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. The Contractor will be required to post job site notices as described in 8 California Code of Regulation section 16451(d).
11.4 Trenches, Excavations and Unknown Conditions. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Contract requires excavations more than four (4) feet in depth, the following shall apply. (a) Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) Subsurface or latent physical conditions at the site different from those indicated; or (3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract. (b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 2-7.1 of the General Provisions. (c) That, in the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by the contract, but shall proceed with all work to be performed under the contract. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting parties.
11.5 Trench and Pipeline Safety. If this Contract is for more than $25,000 and involves excavation of any trench five feet or more in depth, the Contractor shall submit a detailed plan of shoring, bracing, sloping or other provisions to be made for worker protection in accordance with Labor Code Section 6705. Such plan shall be approved by a qualified representative of the City.
11.6 Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contractor for any costs incurred in locating, repairing damage not caused by Contractor and removing or relocating such Construction Contract
WGJ ENTERPRISES, INC. DBA PCI
unidentified utility facilities, including equipment idled during such work. Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.
11.7 Third Party Claims Notification. The City shall timely notify the Contractor in writing of any third-party claims relating to the contract.
11.8 Unfair Business Practices Claims. The Contractor or subcontractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the City renders final payment to the Contractor without further acknowledgment by the parties. (Section 7103.5, California Public Contract Code.).
11.9 Day’s Work. Contractor acknowledges that under California Labor Code sections 1810 and following, 8 hours of labor constitutes a legal day’s work. Contractor will forfeit as a penalty to City the sum of $25.00 for each worker employed in the execution of this Contract by Contractor or any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Labor Code section 1810. (Labor Code § 1813).
11.10 Hazardous Materials and Unknown Conditions. Contractor shall notify City in writing of the discovery of any of the following conditions, without disturbing the condition, as soon as Contractor, or any of Contractor’s subcontractors, agents or employees have knowledge and reporting is possible:
(1) The presence of any material that the Contractor believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code; (2) Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or,
(3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of this character provided for in this Contract.
Pending a determination by City of appropriate action to be taken, Contractor shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person.
City shall promptly investigate the reported conditions. If City, through its Director of Community Development and Public Works, or her designee, and in the exercise of its Construction Contract
WGJ ENTERPRISES, INC. DBA PCI
sole discretion, determines that the conditions do materially differ, or do involve hazardous waste, and will cause a decrease or increase in the Contractor’s cost of, or time required for, performance of any part of the work, then City shall issue a change order.
In the event of a dispute between City and Contractor as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date, and shall proceed with all work to be performed under the Contract. Contractor shall retain any and all rights which pertain to the resolution of disputes and protests between the parties.
11.11 Payroll Records. Contractor shall maintain the certified payroll records required by Labor Codes Sec. 1776 and shall report such records directly to the California Labor Commissioner as required by Labor Code Sec. 1771.4. Contractor and any subcontractor shall (1) keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform the City of the location of the records. The Contractor shall inform the City of the location of the records enumerated under Labor Code Sec. 1776, including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address. The Contractor has ten days in which to comply subsequent to receipt of a written notice requesting these records, or as a penalty to the City, the Contractor shall forfeit $100.00 for each Day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due.
11.12 Employment of Apprentices. Nothing in this Contract prevents Contractor or any subcontractor from employing properly registered apprentices in the execution of the Contract. Contractor is responsible for compliance with Labor Code section 1777.5 for all apprenticeable occupations. This statute requires that contractors and subcontractors must submit contract award information to the applicable joint apprenticeship committee, must employ apprentices in apprenticeable occupations in a ratio of not less than one hour of apprentice’s work for every five hours of labor performed by a journeyman (unless an exception is granted under §1777.5), must contribute to the fund or funds in each craft or trade or a like amount to the California Apprenticeship Council, and that contractors and subcontractors must not discriminate among otherwise qualified employees as apprentices solely on the ground of sex, race, religion, creed, national origin, ancestry or color. Only apprentices defined in Labor Code section 3077, who are in training under apprenticeship standards and who have written apprentice contracts, may be employed on public works in apprenticeable occupations.
11.13 Records and Inspection. Contractor 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 Construction Contract
WGJ ENTERPRISES, INC. DBA PCI
have the right to audit such records, to make transcripts therefrom and to inspect all program data, documents, proceedings, and activities.
11.14 Ownership of Intellectual Property . All reports, documents or other written material (“written products”) developed by Contractor 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. Contractor 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 Contractor. If any state, federal, or local law requires mandatory copyright protection for Contractor’s work product, City shall comply with such laws to the extent feasible.
11.15 Urban Runoff. Contractor shall implement and maintain activity specific Best Management Practices (BMPs) to prevent pollutant loading from stormwater and nonstormwater discharges to receiving waters as required in Municipal NPDES Permit No.
CAS004004. Contracting staff whose primary job duties are related to implementation of BMPs shall be adequately trained to effectively implement, operate, and maintain such BMPs and must be versed in factors affecting BMP effectiveness. Contractor shall certify they have received all applicable training to implement the requirements in Municipal NPDES Permit No. CAS004004 and shall provide documentation to that effect.
12. Termination.
12.1. Termination for Convenience. The City may terminate this contract, in whole or in part, with 30 days written notice to the Contractor when it is in the City’s best interest. The Contractor shall be paid its costs, including contract close-out costs, and profit on work performed up to the time of termination. The Contractor shall promptly submit its termination claim to City to be paid the Contractor. If the Contractor has any property in its possession belonging to the City, the Contractor will account for the same, and dispose of it in the manner the City directs. The Contractor may terminate this Contract, in whole, with 90 days written notice to the City.
12.2 Termination for Default. If at any time the Contractor is determined to be in material breach of the Contract, a Notice of Potential Breach of Contract shall be prepared by the City and will be served upon the Contractor and its sureties. If the Contractor continues to neglect or refuses to comply with the Contract or with the Notice of Potential Breach of Contract to the satisfaction of the City within the time specified in such Notice, the City shall have the authority to terminate the Contract for this Project.
12.3 Waiver of Remedies for any Breach. In the event that City elects to waive its remedies for any breach by Contractor of any covenant, term or condition of this Contract, such waiver by City shall not limit City’s remedies for any succeeding breach of that or of any other term, covenant, or condition of the Contract.
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WGJ ENTERPRISES, INC. DBA PCI
13. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it.
14. Authority. Any person executing this Contract on behalf of the Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of the Contractor and has the authority to bind the Contractor to the performance of its obligations hereunder.
15. Entire Contract. This Contract, including the Contract Documents and any other documents incorporated herein by specific reference, represents the entire and integrated Contract between the City and the Contractor. This Contract supersedes all prior oral or written negotiations, representations or agreements. This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties that expressly refers to this Contract.
16. Attorney’s Fees and Costs. If either party to this Contract is required to initiate or defend or made a party to any action or proceeding in any way connected with this Contract, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.
17. Independent Contractor - The Contractor is and shall at all times remain as to the City, a wholly independent contractor. Neither the City, nor any of its officers, employees or agents shall have control over the conduct of the Contractor or any of the Contractors’ officers, employees or agents, except as herein set forth. The Contractor shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City, nor shall City officers, employees or agents be deemed the officers, employees, or agents of Contractor as a result of this Contract. The Parties further acknowledge the following: (i) that Contractor shall provide the services outlined in the Scope of Services directly to City; (ii) Contractor maintains a business location at the address listed under Section 19 that is separate and distinct from the City; (iii) Contractor contracts with other businesses to provide the same or similar services and maintains a clientele without restriction from the City; (iv) Contractor advertises and holds itself out to the public as available to provide the same or similar services; (v) unless otherwise specified in this Contract, Contractor provides its own tools, vehicles, and equipment necessary for performing the Scope of Services; (vi) Contractor has proposed and negotiated its own rates; and (vii) consistent with the nature and demands of the project and the City’s business hours and City staff availability, Contractor may set its own hours and location of work.
18. Notice. Any notice, demand, request, document, consent, approval, or Construction Contract
WGJ ENTERPRISES, INC. DBA PCI
communication either party desires or is required to give to the other party or any other person shall be in writing and shall be deemed to be given when served personally or deposited in the U.S. Mail, prepaid, first-class mail, return receipt requested, addressed as follows:
To City: City of Pico Rivera
6615 Passons Boulevard
Pico Rivera, California 90660
Attention: City Engineer
To Contractor: William G. Jacob
WGJ Entreprises, Inc. dba PCI
975 W. 1st Street
Azusa, CA 91702
19. Prohibition Against Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Contract. Neither this Contract nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Contract shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City.
20. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes. [This section is intentionally left blank]
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WGJ ENTERPRISES, INC. DBA PCI
IN WITNESS WHEREOF, the parties hereto have executed this Contract the day and year first above written.
CITY OF PICO RIVERA
By:
Andrew Lara, Mayor
ATTEST: APPROVED AS TO FORM:
By: By:
Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney Dated:
WGJ Enterprises, Inc. dba PCI
By:
William G. Jacob President
By:
NAME TITLE
PROOF OF AUTHORITY TO BIND
CONTRACTING PARTY REQUIRED
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²«£ ª£±«¦±«±³¨ª¬£¡¤ª¡±³´µ¶·¶¸ª£«ªªª ¡ª«£® Enclosure 2
9b
To: Mayor and City Council
From: City Manager
Meeting Date: October 22, 2024
Subject: CITYWIDE RESURFACING AND RECONSTRUCTION
PROJECT (CIP NO. 50066) – AWARD CONSTRUCTION
Recommendation:
1. Award a Construction Contract for a not-to-exceed amount of $4,209,000 to Onyx Paving Company, Inc., for the Citywide Resurfacing and Reconstruction Project, CIP No. 50066 (Project) and authorize the City Manager to execute the contract in a form approved by the City Attorney;
2. Approve the plans and specifications for the Project;
3. Authorize the City Manager or his designee to approve change orders, as needed, in an amount not-to-exceed $420,900 (approximately 10% of the total contract amount) for construction contingency; and
4. Approve the Notice of Exemption (NOE) for the subject project and authorize the City Clerk to file the NOE with the County Recorder, in accordance with the California Environmental Quality Act (CEQA).
Fiscal Impact:
The fiscal year (FY) 2024-25 Adopted Budget includes four (4) funding sources as follows; CIP No. 50066 in the amount of $3,836,517 in Certificate of Participation (COP) Funds (Account No. 305.70.7300-54500-CIP50066), $100,000 in Measure W Funds (Account 209.70.7300-54500-CIP50066), $445,960 in Capital Improvement Funds (Account 400.70.7300-54500-CIP50066) and $1,076,944 in State Funds (Account No. 699.70.7300-54500-CIP50066). No additional funding is required at this time.
Discussion:
The Capital Improvement Program (CIP) includes funding for citywide street resurfacing and reconstruction improvements based on the City’s adopted Pavement Management System (PMS). This project includes street resurfacing by grinding the existing pavement surface and placing new asphalt overlay, a treatment that restores failing pavement to good condition thereby prolonging the service life of existing pavement.
The Project also includes reconstruction where poor pavement and/or the subgrade has 10 CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 CITYWIDE RESURFACING AND RECONSTRUCTION PROJECT (CIP NO. 50066) –
AWARD CONSTRUCTION
degraded to the extent that resurfacing would not be effective. In these instances, complete removal and reconstruction of the entire depth of street pavement and possibly the subgrade is necessary. The Scope of Services also includes replacement of damaged sidewalks, curb and gutter and reconstruction of cross gutters prone to local flooding. New striping using thermoplastic, a more durable type of roadway paint, will be installed on top of new roadway surfaces. Regulatory and warning signs will be upgraded throughout the project limits as needed.
The Federal Highway Administration (FHWA) mandates non-compliant ADA curb ramps adjacent to resurfacing improvements be brought up to code. For this reason, the scope of this project includes upgrading a total of 36 curb ramps. These ramps were identified in the City’s ADA Self-Evaluation and Transition Plan.
Staff evaluated the condition of existing pavement throughout the City and prioritized street segments that would benefit the most from overlay or reconstruction. Staff also considered upcoming utility improvements to avoid the need to cut into new pavement.
Based on the evaluation, the following summarizes the street segments to be improved under this project:
PRIMARY STREET FROM STREET TO STREET
Slauson Ave Bridge Deck Industry Ave
Slauson Ave Industry Ave Crossway Dr
Slauson Ave Crossway Rd Manzanar Ave
Slauson Ave ~ 300’ W/O Bequette Ave Serapis Ave
Slauson Ave Serapis Ave East City Limit
Greenvale Ave La Docena Ln North End
Greenvale Ave Roma St Sunglow St
Hasty Ave Claymore St Sunglow St
Alley E/O Serapis Claymore St North End
La Docena Ln Birchbark Ave Birchleaf Ave
Alley W/O Rosemead Blvd Maxine St North End
Homestead St Chaney Ave Passons Blvd
Passons Blvd Shade Ln Burke St
Staff developed specifications and contract documents approved by the Director of Public Works which are available in the Public Works Department for review.
On July 26, 2024, the Notice Inviting Bids (NIB) was advertised in the Cerritos Newspaper and was posted on Planet Bids through the City’s website. On September 18, 2024, a total of eight (8) bids were received via Planet Bids and publicly opened on the City’s approved electronic platform.
CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 CITYWIDE RESURFACING AND RECONSTRUCTION PROJECT (CIP NO. 50066) –
AWARD CONSTRUCTION
The following summarizes the bids received:
CONSTRUCTION COMPANY BASE BID
AMOUNT
ADDITIVE
BID
AMOUNT
TOTAL BID
AMOUNT
1. Onyx Paving Company, Inc. $ 4,157,000 $ 52,000 $4,209,000
2. Sequel Contractors, Inc. $ 4,324,833 $ 68,000 $4,392,833
3. Sully-Miller Contracting Company $ 4,654,620 $41,700 $4,695,820
4. PALP DBA Excel Paving $ 4,869,411 $ 69,870 $4,939,281
5. R. J. Noble Company $ 4,899,543 $ 43,977 $4,943,520
6. All American Asphalt $ 4,937,477 $ 26,992 $4,964,469
7. Hardy & Harper, Inc. $ 5,214,200 $ 70,000 $5,284,200
8. Toro Enterprises, Inc. $5,763,756 $49,980 $5,813,736 The additive bid amount shown above includes installation of traffic signal conduit at the intersection of Slauson Avenue and Crossway Drive, in advance of the upcoming Los Angeles County project to upgrade the signal at this intersection.
Staff completed the analysis of the bids and determined Onyx Paving Company, Inc. to be the apparent low and responsible bidder. Staff has verified Onyx Paving Company, Inc., references and found their past performance on jobs of similar size and scope to be satisfactory. Onyx Paving Company, Inc., has performed work for the Cities of Downey, Temple City, and La Puente. Their bid, bonds and insurance documents are in order and their contractor’s license is current. The Notice of Intent to Award for this project was published on October 8, 2024. The bid protest period expired after seven (7) days on October 15, 2024. No written bid protests were received.
Staff issued a request for task proposals (RFTP) from pre-qualified firms under the City’s on-call agreements to provide construction management and inspection services.
This report estimates those fees at $186,000.
The anticipated schedule for the project is as follows:
• Award Construction …………..… October 2024
• Start Construction ………………. January 2025
• Complete Construction …………. June 2025
CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 CITYWIDE RESURFACING AND RECONSTRUCTION PROJECT (CIP NO. 50066) –
AWARD CONSTRUCTION
The total anticipated expenditure plan and project budget is summarized as follows:
Expenditure Plan Amount
Design $424,000
Construction $4,209,000
Contingency (10%) $420,900
Estimated Construction Management and Inspection $186,000 Project Administration $40,100
Total Estimated Project Cost: $5,280,000
Budget Estimated Budget
COP Fund (Fund 305) $3,836,517
Measure W (Fund 209) $100,000
Capital Improvement Funds (Fund 400) $445,960
State Funds (Fund 699) $1,076,944
Total Project Budget: $5,459,421
The total estimated project cost of $5.28 million is below the project budget of $5.46 million. Any project funds remaining at the end of the project will be transferred into the respective fund balances for reallocation to future projects.
Environmental Analysis:
The project has been reviewed for environmental compliance. Pursuant to the guidelines of the California Environmental Quality Act, this Project is categorically exempt under Class 1 Section 15301(c) for existing facilities (Enclosure 2). Under CEQA, a project is exempt if the scope of work is limited to the repair, maintenance, reconstruction or minor alterations of an existing street.
Conclusion:
Staff recommends award of a construction contract to Onyx Paving Company, Inc., for a not-to-exceed amount of $4,209,000 (Base Bid Amount + Additive Bid Amount), authorize the City Manager or his designee to approve change orders, as needed, in an amount not-to-exceed $420,900 (approximately 10% of the total contract amount) for construction contingency to complete the project, and approval of the Notice of Exemption (NOE) for the subject project and authorize the City Clerk to file the NOE with the County Recorder, in accordance with the California Environmental Quality Act (CEQA).
Steve Carmona
CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 CITYWIDE RESURFACING AND RECONSTRUCTION PROJECT (CIP NO. 50066) –
AWARD CONSTRUCTION
SC:NN:np
Enclosures: 1) Construction Contract
2) Notice of Exemption
AGREEMENT NO. _____
CITY OF PICO RIVERA CONTRACT FOR
PAVEMENT REHABILITATION – CITYWIDE RESURFACING
AND RECONSTRUCTON PROJECT
CIP NO. 50066
THIS CONTRACT (“Contract”) is made and entered this 22nd day of October, 2024 (“Effective Date”), by and between the CITY OF PICO RIVERA, a California municipal corporation (“City”) and Onyx Paving Company Inc., a California corporation (“Contractor”). The Contractor’s California State Contractor’s license number is 630360.
In consideration of the mutual covenants hereinafter set forth, the parties hereto agree as follows:
1. Contract Documents. The Contract Documents consist of this Contract, the Notice Inviting Bids, Instructions to Bidders, Bid Proposal (including documentation accompanying the Bid Proposal and any post-Bid Proposal documentation submitted before the Notice of Award), the Bonds, permits from regulatory agencies with jurisdiction, General Provisions, Special Provisions, Plans, Standard Plans, Standard Specifications, Reference Specifications, Addenda, Change Orders, and Supplemental Agreements. In the event there is a conflict between the terms of the Contract Documents, the more specific or stringent provision shall govern. City shall decide which option is the more specific or stringent provision. The Contract Documents are attached hereto and incorporated herein by reference.
2. Scope of Services. The Contractor shall perform and provide all materials, tools, equipment, labor, and services necessary to complete the Work in a good and workmanlike manner for the project identified as Pavement Rehabilitation – Citywide Resurfacing and Reconstruction Project, CIP NO. 50066 (“Project”), as described in the Contract Documents.
3. Compensation.
3.1 Contract Price and Basis for Payment. In consideration for the Contractor’s full, complete, and timely performance of the Work required by the Contract Documents, the City shall pay the Contractor for the actual quantity of Work required under the Bid Items awarded by the City performed in accordance with the lump sum prices and unit prices for Bid Items, set forth in the Bidder’s Bid Schedule submitted with the Bid Proposal. The sum of the unit prices and lump sum prices for the Bid Items, awarded by the City is Four Million Two Hundred Nine Thousand Dollars ($4,209,000.00) (“Contract Price”). It is understood and agreed that the quantities set forth in the Bidder’s Proposal for which unit prices are fixed are estimates only and that the City will pay and the Contractor will accept, as full payment for these items of work, the unit prices set forth in the Bidder’s Proposal multiplied by the actual number of units performed, constructed, or completed as directed by the Engineer
Enclosure 1
10a
Construction Contract
ONYX PAVING COMPANY, INC.
3.2 Payment Procedures. Based upon applications for payment submitted by the Contractor to the City, the City shall make payments to the Contractor in accordance with Section 7 of the Standard Specifications, as modified by Section 7 of the General Provisions.
3.3 Substitution of Securities. Pursuant to Public Contracts Code Sec. 22300 Contractor shall be allowed to substitute securities for any moneys withheld by the City to ensure performance under a contract, unless, federal regulations or policies, or both, do not allow the substitution of securities. At the request and expense of the Contractor, securities equivalent to the amount withheld shall be deposited with the City, or with a state or federally chartered bank in this state as the escrow agent, who shall then pay those moneys to the Contractor. Upon satisfactory completion of the contract, the securities shall be returned to the Contractor.
4. Contract Time.
4.1 Initial Notice to Proceed. The City shall issue the “Notice to Proceed to Fulfill Preconstruction Requirements and Order Materials.” The date specified in the Notice to Proceed to Fulfill Preconstruction Requirements and Order Materials constitutes the date of commencement of the Contract Time of __60__ Working Days. The Contract Time includes the time necessary to fulfill preconstruction requirements, place the order for materials, and to complete construction of the Project (except as adjusted by subsequent Change Orders).
The Notice to Proceed to Fulfill Preconstruction Requirements and Order Materials shall further specify that the Contractor must complete the preconstruction requirements and order materials within __5___ Working Days after the date of commencement of the Contract Time; this duration is part of the Contract Time.
Preconstruction requirements include, but are not limited to, the following:
• Submitting and obtaining approval of Traffic Control Plans • Submitting and obtaining approval of the Stormwater Pollution Prevention Plan (SWPPP)/Water Pollution Control Plan (WPCP)
• Submitting and obtaining approval of critical required submittals • Installation of the approved Project Identification Signs • Obtaining an approved no fee Encroachment Permit
• Obtaining a Temporary Use Permit for a construction yard • Notifying all agencies, utilities, residents, etc., as outlined in the Contract Documents
Construction Contract
ONYX PAVING COMPANY, INC.
4.2 Notice to Proceed with Construction. After all preconstruction requirements are met and materials have been ordered in accordance with the Notice to Proceed to Fulfill Preconstruction Requirements and Order Materials, the City shall issue the “Notice to Proceed with Construction,” at which time the Contractor shall diligently prosecute the Work, including corrective items of Work, day to day thereafter, within the remaining Contract Time.
5. Liquidated Damages for Delay and Control of Work.
5.1 Liquidated Damages. The Contractor and the City have agreed to liquidate damages pursuant to Section 6-9 of the General Provisions.
6. Early Completion.
Not applicable.
7. Work After Stop Work Notice. Any work completed by the Contractor after the issuance of a Stop Work Notice by the City shall be rejected and/or removed and replaced as specified in the applicable Section of the Special Provisions.
8. Antitrust Claims. In entering into this Contract, the Contractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Sec.§ 15) or under the Cartwright Act (Business and Professions Code Section 16700 et seq.) arising from purchases of goods, services, or materials pursuant to the Contract. This assignment shall be made and become effective at the time the City tenders final payment to the Contractor without further acknowledgment by the parties.
9. Prevailing Wages. The City and the Contractor acknowledge that the Project is a public work to which prevailing wages apply. Public Works projects shall be subject to the prevailing wage requirements of the California Labor Code Sections 1720 et seq.
10. Workers’ Compensation. Labor Code Sections 1860 and 3700 provide that every contractor will be required to secure the payment of compensation to its employees. In accordance with the provisions of Labor Code Section 1861, by signing this Contract, the Contractor certifies as follows:
“I am aware of the provisions of Section 3700 of the Labor Code which require every employer to be insured against liability for workers’ compensation or to undertake self-insurance in accordance with the provisions of that Code, and I will comply with such provisions before commencing the performance of the Work of this Contract.”
11. Miscellaneous Statutory Requirements.
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ONYX PAVING COMPANY, INC.
11.1. Contractor License. Contractor shall possess a California contractor’s license type for the performance of the Project.
11.2 Ineligible Contractor Prohibited. Any contractor or subcontractor who is ineligible to perform work on a public works project pursuant to Section 1777.1 or 1777.7 of the Labor Code is prohibited from performing work under this Contract.
11.3 Compliance with SB 854 Registration. This Project is subject to compliance monitoring and enforcement by the Department of Industrial Relations. No prime contractor or subcontractor may be listed on a bid proposal for a public works project (submitted on or after March 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. No prime contractor or subcontractor may be awarded a contract for public work on a public works project (awarded on or after April 1, 2015) unless registered with the Department of Industrial Relations pursuant to Labor Code section 1725.5. The Contractor will be required to post job site notices as described in 8 California Code of Regulation section 16451(d).
11.4 Trenches, Excavations and Unknown Conditions. Pursuant to California Public Contract Code Section 7104, in the event the work included in this Contract requires excavations more than four (4) feet in depth, the following shall apply. (a) Contractor shall promptly, and before the following conditions are disturbed, notify City, in writing, of any: (1) material that Contractor believes may be material that is hazardous waste, as defined in Section 25117 of the Health and Safety Code, that is required to be removed to a Class I, Class II, or Class III disposal site in accordance with provisions of existing law; (2) Subsurface or latent physical conditions at the site different from those indicated; or (3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of the character provided for in the Contract. (b) City shall promptly investigate the conditions, and if it finds that the conditions do materially so differ, or do involve hazardous waste, and cause a decrease or increase in Contractor’s cost of, or the time required for, performance of any part of the work shall issue a change order per Section 2-7.1 of the General Provisions. (c) That, in the event that a dispute arises between City and Contractor whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date provided for by the contract, but shall proceed with all work to be performed under the contract. Contractor shall retain any and all rights provided either by contract or by law which pertain to the resolution of disputes and protests between the contracting parties.
11.5 Trench and Pipeline Safety. If this Contract is for more than $25,000 and involves excavation of any trench five feet or more in depth, the Contractor shall submit a detailed plan of shoring, bracing, sloping or other provisions to be made for Construction Contract
ONYX PAVING COMPANY, INC.
worker protection in accordance with Labor Code Section 6705. Such plan shall be approved by a qualified representative of the City.
11.6 Utility Relocation. City is responsible for removal, relocation, or protection of existing main or trunkline utilities to the extent such utilities were not identified in the invitation for bids or specifications. City shall reimburse Contractor for any costs incurred in locating, repairing damage not caused by Contractor and removing or relocating such unidentified utility facilities, including equipment idled during such work. Contractor shall not be assessed liquidated damages for delay arising from the removal or relocation of such unidentified utility facilities.
11.7 Third Party Claims Notification. The City shall timely notify the Contractor in writing of any third party claims relating to the Contract.
11.8 Unfair Business Practices Claims. The Contractor or subcontractor offers and agrees to assign to the City all rights, title, and interest in and to all causes of action it may have under Section 4 of the Clayton Act (15 U.S.C. Section 15) or under the Cartwright Act (Chapter 2, (commencing with Section 16700) of Part 2 of Division 7 of the Business and Professions Code), arising from purchases of goods, services or materials pursuant to the public works contract or the subcontract. This assignment shall be made and become effective at the time the City renders final payment to the Contractor without further acknowledgment by the parties. (Section 7103.5, California Public Contract Code.).
11.9 Day’s Work. Contractor acknowledges that under California Labor Code sections 1810 and following, 8 hours of labor constitutes a legal day’s work. Contractor will forfeit as a penalty to City the sum of $25.00 for each worker employed in the execution of this Contract by Contractor or any subcontractor for each calendar day during which such worker is required or permitted to work more than 8 hours in any one calendar day and 40 hours in any one calendar week in violation of the provisions of Labor Code section 1810. (Labor Code § 1813).
11.10 Hazardous Materials and Unknown Conditions. Contractor shall notify City in writing of the discovery of any of the following conditions, without disturbing the condition, as soon as Contractor, or any of Contractor’s subcontractors, agents or employees have knowledge and reporting is possible:
(1) The presence of any material that the Contractor believes is hazardous waste, as defined in Section 25117 of the Health and Safety Code; (2) Subsurface or latent physical conditions at the site differing from those indicated in the specifications; or,
(3) Unknown physical conditions at the site of any unusual nature, different materially from those ordinarily encountered and generally recognized as inherent in work of this character provided for in this Contract.
Construction Contract
ONYX PAVING COMPANY, INC.
Pending a determination by City of appropriate action to be taken, Contractor shall provide security measures (e.g., fences) adequate to prevent the hazardous waste or physical conditions from causing bodily injury to any person.
City shall promptly investigate the reported conditions. If City, through its Director of Community Development and Public Works, or her designee, and in the exercise of its sole discretion, determines that the conditions do materially differ, or do involve hazardous waste, and will cause a decrease or increase in the Contractor’s cost of, or time required for, performance of any part of the work, then City shall issue a change order.
In the event of a dispute between City and Contractor as to whether the conditions materially differ, or involve hazardous waste, or cause a decrease or increase in the Contractor’s cost of, or time required for, performance of any part of the work, Contractor shall not be excused from any scheduled completion date, and shall proceed with all work to be performed under the Contract. Contractor shall retain any and all rights which pertain to the resolution of disputes and protests between the parties.
11.11 Payroll Records. Contractor shall maintain the certified payroll records required by Labor Codes Sec. 1776 and shall report such records directly to the California Labor Commissioner as required by Labor Code Sec. 1771.4. Contractor and any subcontractor shall (1) keep accurate payroll records and verify such records in writing under penalty of perjury, as specified in Section 1776, (2) certify and make such payroll records available for inspection as provided by Section 1776, and (3) inform the City of the location of the records. The Contractor shall inform the City of the location of the records enumerated under Labor Code Sec. 1776, including the street address, city, and county, and shall, within five working days, provide a notice of a change of location and address. The Contractor has ten days in which to comply subsequent to receipt of a written notice requesting these records, or as a penalty to the City, the Contractor shall forfeit $100.00 for each Day, or portion thereof, for each worker, until strict compliance is effectuated. Upon the request of the Division of Labor Standards Enforcement, these penalties shall be withheld from progress payments then due.
11.12 Employment of Apprentices. Nothing in this Contract prevents Contractor or any subcontractor from employing properly registered apprentices in the execution of the Contract. Contractor is responsible for compliance with Labor Code section 1777.5 for all apprenticeable occupations. This statute requires that contractors and subcontractors must submit contract award information to the applicable joint apprenticeship committee, must employ apprentices in apprenticeable occupations in a ratio of not less than one hour of apprentice’s work for every five hours of labor performed by a journeyman (unless an exception is granted under §1777.5), must contribute to the fund or funds in each craft or trade or a like amount to the California Apprenticeship Council, and that contractors and subcontractors must not discriminate among otherwise qualified employees as apprentices solely on the ground of sex, race, religion, creed, national origin, ancestry or color. Only apprentices defined in Labor Code section 3077, who are in training under apprenticeship standards and who have written apprentice Construction Contract
ONYX PAVING COMPANY, INC.
contracts, may be employed on public works in apprenticeable occupations.
11.13 Records and Inspection. Contractor 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.
11.14 Ownership of Intellectual Property . All reports, documents or other written material (“written products”) developed by Contractor 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. Contractor 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 Contractor. If any state, federal, or local law requires mandatory copyright protection for Contractor’s work product, City shall comply with such laws to the extent feasible.
11.15 Urban Runoff. Contractor shall implement and maintain activity specific Best Management Practices (BMPs) to prevent pollutant loading from stormwater and nonstormwater discharges to receiving waters as required in Municipal NPDES Permit No.
CAS004004. Contracting staff whose primary job duties are related to implementation of BMPs shall be adequately trained to effectively implement, operate, and maintain such BMPs and must be versed in factors affecting BMP effectiveness. Contractor shall certify they have received all applicable training to implement the requirements in Municipal NPDES Permit No. CAS004004 and shall provide documentation to that effect.
12. Termination.
12.1. Termination for Convenience. The City may terminate this contract, in whole or in part, with 30 days written notice to the Contractor when it is in the City’s best interest. The Contractor shall be paid its costs, including contract close-out costs, and profit on work performed up to the time of termination. The Contractor shall promptly submit its termination claim to City to be paid the Contractor. If the Contractor has any property in its possession belonging to the City, the Contractor will account for the same, and dispose of it in the manner the City directs. The Contractor may terminate this Contract, in whole, with 90 days written notice to the City.
12.2 Termination for Default. If at any time the Contractor is determined to be in material breach of the Contract, a Notice of Potential Breach of Contract shall be prepared by the City, and will be served upon the Contractor and its sureties. If the Contractor continues to neglect or refuses to comply with the Contract or with the Notice of Potential Breach of Contract to the satisfaction of the City within the time specified in such Notice, the City shall have the authority to terminate the Contract for this Project.
Construction Contract
ONYX PAVING COMPANY, INC.
12.3 Waiver of Remedies for any Breach. In the event that City elects to waive its remedies for any breach by Contractor of any covenant, term or condition of this Contract, such waiver by City shall not limit City’s remedies for any succeeding breach of that or of any other term, covenant, or condition of the Contract.
13. Titles. The titles used in this Contract are for convenience only and shall in no way define, limit or describe the scope or intent of this Contract or any part of it.
14. Authority. Any person executing this Contract on behalf of the Contractor warrants and represents that he or she has the authority to execute this Contract on behalf of the Contractor and has the authority to bind the Contractor to the performance of its obligations hereunder.
15. Entire Contract. This Contract, including the Contract Documents and any other documents incorporated herein by specific reference, represents the entire and integrated Contract between the City and the Contractor. This Contract supersedes all prior oral or written negotiations, representations or agreements. This Contract may not be modified or amended, nor any provision or breach waived, except in a writing signed by both parties that expressly refers to this Contract.
16. Attorney’s Fees and Costs. If either party to this Contract is required to initiate or defend or made a party to any action or proceeding in any way connected with this Contract, the prevailing party in such action or proceeding, in addition to any other relief which may be granted, whether legal or equitable, shall be entitled to reasonable attorney's fees. Attorney's fees shall include attorney's fees on any appeal, and in addition a party entitled to attorney's fees shall be entitled to all other reasonable costs for investigating such action, taking depositions and discovery and all other necessary costs the court allows which are incurred in such litigation. All such fees shall be deemed to have accrued on commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.
17. Independent Contractor - The Contractor is and shall at all times remain as to the City, a wholly independent contractor. Neither the City, nor any of its officers, employees or agents shall have control over the conduct of the Contractor or any of the Contractors’ officers, employees or agents, except as herein set forth. The Contractor shall not at any time or in any manner represent that it or any of its officers, employees or agents are in any manner officers, employees or agents of the City, nor shall City officers, employees or agents be deemed the officers, employees, or agents of Contractor as a result of this Contract. The Parties further acknowledge the following: (i) that Contractor shall provide the services outlined in the Scope of Services directly to City; (ii) Contractor maintains a business location at the address listed under Section 19 that is separate and distinct from the City; (iii) Contractor contracts with other businesses to provide the same or similar services and maintains a clientele without restriction from the City; (iv) Contractor advertises and holds itself out to the public as available to provide the same or similar services; (v) unless otherwise specified in this Contract, Contractor provides its own tools, vehicles, and equipment necessary for performing the Scope of Services; (vi) Contractor Construction Contract
ONYX PAVING COMPANY, INC.
has proposed and negotiated its own rates; and (vii) consistent with the nature and demands of the project and the City’s business hours and City staff availability, Contractor may set its own hours and location of work.
18. Notice. Any notice, demand, request, document, consent, approval, or communication either party desires or is required to give to the other party or any other person shall be in writing and shall be deemed to be given when served personally or deposited in the U.S. Mail, prepaid, first-class mail, return receipt requested, addressed as follows:
To City: City of Pico Rivera
6615 Passons Boulevard
Pico Rivera, California 90660
Attention: City Engineer
To Contractor: Onyx Paving Company, Inc.
2890 E. La Cresta Avenue
Anaheim, CA 92806
Attention: Anthony Steen, President
19. Prohibition Against Assignment. The experience, knowledge, capability and reputation of Contractor, its principals and employees were a substantial inducement for the City to enter into this Contract. Neither this Contract nor any interest herein may be transferred, assigned, conveyed, hypothecated or encumbered voluntarily or by operation of law, whether for the benefit of creditors or otherwise, without the prior written approval of City. Transfers restricted hereunder shall include the transfer to any person or group of persons acting in concert of more than twenty five percent (25%) of the present ownership and/or control of Contractor, taking all transfers into account on a cumulative basis. In the event of any such unapproved transfer, including any bankruptcy proceeding, this Contract shall be void. No approved transfer shall release the Contractor or any surety of Contractor of any liability hereunder without the express consent of City.
20. Counterparts. This Contract may be executed in counterpart originals, duplicate originals, or both, each of which is deemed to be an original for all purposes. [Signatures on the following page]
Construction Contract
ONYX PAVING COMPANY, INC.
IN WITNESS WHEREOF, the parties hereto have executed this Contract the day and year first above written.
CITY OF PICO RIVERA
By:
Andrew Lara, Mayor
ATTEST: APPROVED AS TO FORM:
By: By:
Cynthia Ayala, City Clerk Arnold M. Alvarez-Glasman, City Attorney Dated: Dated:
(“CONTRACTOR”)
By:
Anthony Steen, President
By:
Jay Kirschner, Secretary
PROOF OF AUTHORITY TO BIND
CONTRACTING PARTY REQUIRED
Construction Contract
ONYX PAVING COMPANY, INC.
Bond No. __________
PAYMENT BOND
(LABOR AND MATERIALS)
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of PICO RIVERA (“Public Agency”), State of California, has awarded to
(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
PAVEMENT REHABILITATION – CITYWIDE RESURFACING & RECONSTRUCTON
PROJECT
CIP NO. 50066
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient payment Bond with the Public Agency to secure the claims to which reference is made in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code.
NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the Public Agency and all contractors, subcontractors, laborers, material suppliers, and other persons employed in the performance of the Contract and referred to in Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code in the penal sum of ________________________________________________________ Dollars ($___________________), for materials furnished or labor thereon of any kind, or for amounts due under the Unemployment Insurance Act, or for any amounts required to be deducted, withheld and paid over to the Employment Development Department from the wages of employees of the contractor and subcontractors pursuant to Section 13020 of the Unemployment Insurance Code with respect to this Work or labor, that the Surety will pay the same in an amount not exceeding the amount hereinabove set forth, and also in case suit is brought upon this Bond, will pay, in addition to the face amount thereof, costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by Public Agency in successfully enforcing this obligation, to be awarded and fixed by the court, and to be taxed as costs and to be included in the judgment therein rendered.
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ONYX PAVING COMPANY, INC.
It is hereby expressly stipulated and agreed that this Bond shall inure to the benefit of any and all persons, companies, and corporations entitled to file claims under Title 3 (commencing with Section 9000) of Part 6 of Division 4 of the Civil Code, so as to give a right of action to them or their assigns in any suit brought upon this Bond.
Upon expiration of the time within which the California Labor Commissioner may serve a civil wage and penalty assessment against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1741, and upon expiration of the time within which a joint labor management committee may commence an action against the principal, any of its subcontractors, or both the principal and its subcontractors pursuant to Labor Code Section 1771.2, if the condition of this Bond be fully performed, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
The Surety hereby stipulates and agrees that no change, extension of time, alteration, or addition to the terms of the Contract or the Specifications accompanying the same shall in any manner affect its obligations on this Bond, and it does hereby waive notice of any such change, extension, alteration, or addition.
IN WITNESS WHEREOF, two identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Dated:
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ONYX PAVING COMPANY, INC.
“Principal”
Signature:
Print Name:
Title:
Date:
Signature:
Print Name:
Title:
Date:
(Seal)
“Surety”
Signature:
Print Name:
Title:
Date:
(Seal)
NOTE: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.
Construction Contract
ONYX PAVING COMPANY, INC.
Bond No. __________
PERFORMANCE BOND
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of PICO RIVERA (“Public Agency”), has awarded to (“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
PAVEMENT REHABILITATION – CITYWIDE RESURFACING & RECONSTRUCTON
PROJECT
CIP NO. 50066
WHEREAS, Principal is required under the terms of the Contract to furnish a Bond for the faithful performance of the Contract.
NOW, THEREFORE, we, the undersigned Principal, and
,
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the Public Agency in the penal sum of __________________________________________________ Dollars ($_________________), this amount being not less than the total Contract Price, in lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, successors executors and administrators, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall in all things stand to and abide by, and well and truly keep and perform the covenants, conditions and provisions in the Contract and any alteration thereof made as therein provided, on the Principal’s part, to be kept and performed at the time and in the manner therein specified, and in all respects according to their true intent and meaning, and shall indemnify and save harmless the Public Agency, its officers, agents and employees, as therein stipulated, then this obligation shall become null and void; otherwise, it shall be and remain in full force and effect.
As a part of the obligation secured hereby and in addition to the face amount specified therefor, there shall be included costs and reasonable expenses and fees, including Construction Contract
ONYX PAVING COMPANY, INC.
reasonable attorneys’ fees, incurred by Public Agency in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered. Surety hereby waives any statute of limitations as it applies to an action on this Bond.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or of the Work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations under this Bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the Work or to the specifications. Surety hereby waives the provisions of California Civil Code Sections 2845 and 2849. The City is the principal beneficiary of this Bond and has all rights of a party hereto.
IN WITNESS WHEREOF, two identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Dated:
Construction Contract
ONYX PAVING COMPANY, INC.
“Principal”
Signature:
Print Name:
Title:
Date:
Signature:
Print Name:
Title:
Date:
(Seal)
“Surety”
Signature:
Print Name:
Title:
Date:
(Seal)
NOTE: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.
Construction Contract
ONYX PAVING COMPANY, INC.
Bond No. __________
WARRANTY BOND
KNOW ALL PERSONS BY THESE PRESENTS that:
WHEREAS the City of PICO RIVERA (“Public Agency”), State of California, has awarded to
(“Principal”)
(Name and address of Contractor)
a contract (the “Contract”) for the Work described as follows:
PAVEMENT REHABILITATION – CITYWIDE RESURFACING & RECONSTRUCTON
PROJECT
CIP NO. 50066
WHEREAS, under the terms of the Contract, the Principal is required before entering upon the performance of the Work, to file a good and sufficient warranty Bond with the Public Agency before final completion of the work and its acceptance by the Public Agency.
NOW, THEREFORE, we, the undersigned Principal, and
(Name and address of Surety)
(“Surety”) a duly admitted surety insurer under the laws of the State of California, as Surety, are held and firmly bound unto the Public Agency in the penal sum of __________________________________________________ Dollars ($_______________), lawful money of the United States of America, for the payment of which sum well and truly to be made, we bind ourselves, our heirs, executors, administrators, successors, and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if the hereby bounded Principal, his, her or its heirs, executors, administrators, successors or assigns, shall remedy, without cost to the Public Agency, any defects which may develop during a period of one year from the date of completion and acceptance of the work performed under the Contract, caused by defective or inferior materials or workmanship, and shall indemnify, defend and hold harmless the Public Agency, its officers, agents, and employees for any and all claims, demands, causes of action, damages, injuries, liabilities, losses, costs or expenses, including attorneys’ fees and costs of defense, which arise out of, pertain to, or relate to such defects or to the Principal’s actions or inactions in remedying such Construction Contract
ONYX PAVING COMPANY, INC.
defects, then this obligation shall become null and void; otherwise it shall be and remain in full force and effect.
In case suit is brought upon this bond, Surety further agrees to pay, in addition to the Penal Sum, all costs and reasonable expenses and fees, including reasonable attorneys’ fees, incurred by the Public Agency in successfully enforcing such obligation, all to be taxed as costs and included in any judgment rendered.
FURTHER, Surety hereby waives the provisions of California Civil Code sections 2845 and 2849. The Public Agency is the principal beneficiary of this bond and has all rights of a party hereto.
The Surety hereby stipulates and agrees that no change, extension of time, alteration or addition to the terms of the Contract or to the work to be performed thereunder or the specifications accompanying the same shall in anywise affect its obligations on this bond, and it does hereby waive notice of any such change, extension of time, alteration or addition to the terms of the Contract or to the work or to the specifications.
IN WITNESS WHEREOF, two identical counterparts of this instrument, each of which shall for all purposes be deemed an original hereof, have been duly executed by Principal and Surety, on the date set forth below, the name of each corporate party being hereto affixed and these presents duly signed by its undersigned representative(s) pursuant to authority of its governing body.
Dated:
Construction Contract
ONYX PAVING COMPANY, INC.
“Principal”
Signature:
Print Name:
Title:
Date:
Signature:
Print Name:
Title:
Date:
(Seal)
“Surety”
Signature:
Print Name:
Title:
Date:
(Seal)
NOTE: This Bond must be executed in duplicate and dated, all signatures must be notarized, and evidence of the authority of any person signing as attorney-in-fact must be attached. DATE OF BOND MUST NOT BE BEFORE DATE OF CONTRACT. Surety companies executing Bonds must appear on the Treasury Department’s most current list (Circular 570 as amended) and be authorized to transact business in the State where the project is located.
Construction Contract
ONYX PAVING COMPANY, INC.
WORKERS’ COMPENSATION
CERTIFICATE OF INSURANCE
PICO PARK PREFABRICATED RESTROOM PROJECT ; PROJECT NO. 50085 WHEREAS, the City of PICO RIVERA (“City”) has required certain insurance to be provided by:
NOW THEREFORE, the undersigned insurance company does hereby certify that it has issued the policy or policies described below to the following named insureds and that the same are in force at this time:
1. This certificate is issued to:
City of Pico Rivera
City Hall
6615 Passons Boulevard
Pico Rivera, California 90660
The insureds under such policy or policies are:
2. Workers’ Compensation Policy or Policies in a form approved by the Insurance Commissioner of California covering all operations of the named insureds as follows:
Policy Number Effective Date Expiration Date
By:
Its Authorized Representative
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10b
To: Mayor and City Council
From: City Manager
Meeting Date: October 22, 2024
Subject: MASTER SERVICES AGREEMENT WITH NETWATCH
NORTH AMERICA, INC., EXTENDING PROACTIVE VIDEO
MONITORING SERVICES AT VARIOUS CITY SITES
Recommendation:
1. Authorize the City Manager to enter into a Master Services Agreement and Addendums with Netwatch North America, Inc., in a form approved by the City Attorney to extend proactive video monitoring services at various City sites, as authorized under the City of Pico Rivera’s sole source procurement procedures, in an amount not-to-exceed $446,803 for the first three (3) years, beginning in December 2024, through December 2027, with the option for two (2), five-year (5-year) extensions.
Fiscal Impact:
The cost for the monitoring services comes to $191,251 for the first year, and $127,776 each year for the following two (2) years. Sufficient funding is available within the fiscal year (FY) 2024-25 Adopted Budget - General Fund (Fund 100) Public Safety Budget, Account No. 100.15.1500-54500 (Contract Services). No additional appropriation is needed at this time.
Background:
In February 2022, the City of Pico Rivera (City) adopted a comprehensive Strategic Plan to guide its development and priorities. Among the five (5) key Strategic Priorities established by the City Council, the health, wellness, and safety of the community were at the forefront. This priority reflects a commitment to fostering a secure, healthy, and vibrant environment for all residents. City staff have been diligently working toward this goal by addressing the following core objectives:
• Mitigating homelessness: Implementing strategies to reduce the number of individuals experiencing homelessness and providing resources to support those in need.
11 CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 MASTER SERVICES AGREEMENT WITH NETWATCH NORTH AMERICA, INC.,
EXTENDING PROACTIVE VIDEO MONITORING SERVICES AT VARIOUS CITY SITES
• Promoting public safety: Creating a secure community through proactive safety measures and collaboration with law enforcement.
• Maintaining a clean and attractive environment: Ensuring that public spaces are safe, clean, and well-maintained to enhance the quality of life for residents. • Building a thriving, low-crime city: Establishing high standards for health, wellness, and crime prevention to create a flourishing, secure urban space.
This commitment to public safety and infrastructure was further solidified by the passage of Measure AB in November 2022. Approved by an overwhelming 75% of voters, this measure was a resounding endorsement of the City’s vision. Measure AB allocated critical funding for infrastructure improvements and public safety enhancements, empowering the City to better address the needs of its growing population.
Discussion:
While the Sheriff's Department provides exemplary service in responding to calls, our community continues to face after-hours public safety challenges, particularly related to homelessness and crimes of opportunity in commercial areas. A notable example is the City's Golf Course, adjacent to the San Gabriel Riverbed, which faced ongoing incidents of trespassing and theft in early 2023.
To address these concerns, City staff explored various options, including video monitoring services that could provide real-time notifications of public safety issues.
Our goal was to enhance park safety and security with a system that:
• Encourages active and safe use of park facilities by the community; • Deters criminal activity and homelessness-related issues; • Assists in identifying and prosecuting offenders;
• Provides patrons with a sense of security while utilizing park spaces; • Ensures 24/7 surveillance coverage of outdoor areas; and • Utilizes modern, upgradable technology compatible with the City's IT infrastructure.
Among the systems considered was the existing Am-Tech Total Security, Inc., video monitoring system, used at Rio Hondo Park and the Public Works City Yard facility since June 2021. However, expanding this system would require additional resources from the Sheriff’s Department and Parks and Recreation staff, which we currently lack.
Given the existing staff limitations, an alternative solution was needed.
After researching potential service providers, City staff identified Netwatch North America (Netwatch) as offering a more impactful solution. Unlike traditional video surveillance systems, which only record incidents or notify authorities after the fact, CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 MASTER SERVICES AGREEMENT WITH NETWATCH NORTH AMERICA, INC.,
EXTENDING PROACTIVE VIDEO MONITORING SERVICES AT VARIOUS CITY SITES
Netwatch’s AI-powered monitoring service proactively identifies suspicious activity and intervenes immediately. Using real-time video analysis, Netwatch detects potential threats and deters intruders with personalized audio warnings, followed by immediate law enforcement notification if necessary.
The enhancement in services, which is a service we were unable to find in other providers, is their in-house, California-based (plus redundant facilities in Dallas, Texas), 5-diamond UL 827 A/B facility, and proprietary monitoring platform. Combined with AIpowered detection, Netwatch provides up to a 24/7, 365-day virtual security guard, reducing the need to augment our public safety staffing. Netwatch’s Proprietary Customer Platform simplifies live-camera viewing, incident report access, site protocol, and staff contact changes, proactive video monitor scheduling and arm/disarming, and efficient coordination between Netwatch response and staff-PD response.
Netwatch uses real-time monitoring to prevent crimes before they occur. The system’s live monitoring capabilities have allowed security personnel to intervene and communicate with potential offenders, thereby deterring criminal activity. This proactive video surveillance system is currently being used to monitor two (2) separate locations within the City. Since partnering with Netwatch in August of 2023, there have been 4,148 alarms triggered at the monitored locations; 47 incidents – 10 of which resulted in a response from the Los Angeles County Sheriff’s Department Pico Rivera Station, and of the individuals detained, one (1) arrest was made for attempted burglary.
Netwatch has successfully prevented 99% of potential incidents and legal violations without requiring law enforcement intervention. This success has enabled law enforcement in the City to focus on other priorities. As a result, staff recommends that the City enter into a Master Services Agreement and related Addendums (Enclosure 1/Exhibit A) with Netwatch to ensure the uninterrupted continuation of video monitoring services at various City locations.
The proposed locations in the following table (Table 1) are all key locations that staff recommends being equipped with video monitoring provided by Netwatch.
CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 MASTER SERVICES AGREEMENT WITH NETWATCH NORTH AMERICA, INC.,
EXTENDING PROACTIVE VIDEO MONITORING SERVICES AT VARIOUS CITY SITES
Table 1 – Proposed Locations and Fees
CITY FACILITY Monthly Cost Annual Cost
One-Time
Set-Up Fee 36-Month Cost
Rivera Park $ 1,312 $ 15,744 $ 8,175 $ 55,407
REACH (Rivera Park) $ 1,568 $ 18,816 $ 8,100 $ 64,548
Pico Park $ 2,098 $ 25,176 $ 11,750 $ 87,278
Senior Center $ 1,312 $ 15,744 $ 6,350 $ 53,582
PW Field Office $ 1,696 $ 20,352 $ 9,350 $ 70,406
Smith Park (Phase 1) $ 2,662 $ 31,944 $ 19,750 $ 115,582 $ 10,648 $ 127,776 $ 63,475 $ 446,803
Procurement
Per the City of Pico Rivera Municipal Code 3.20.030(B) Sole Source Purchasing “The City may dispense with the bidding requirements if it finds that the supplies, services, or equipment are unique because of their quality, durability, availability, or fitness for a particular use and are available only from one source, or, if available from more than one source, can be purchased from the manufacturer or service provider for a lower price.” The availability of live, 24/7 monitoring of video monitoring provides a unique service that we were unable to find in any of our cooperative agreements. Therefore, this service has no competitive product and is proprietary to Netwatch.
Conclusion:
Staff recommends that City Council authorize the City Manager to enter into a Master Services Agreement and Addendums with Netwatch to provide the City video monitoring services at various sites for three (3) years, with an option to extend for an additional two (2), five-year (5-year) terms.
Steve Carmona
SC:AG:smc
Enclosure: 1) Master Services Agreement/Attachments A-E 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
MASTER SERVICES AGREEMENT—RENTAL
TYPE OF SYSTEMS—Check all that apply:
NEW SYSTEM INSTALLATION AND RENTAL
PROACTIVE VIDEO MONITORING CCTV (not monitored)
INTRUSION DETECTION SMOKE / HEAT DETECTORS
ACCESS CONTROL (not monitored) INTERNET SERVICE OTHER: __________________ TYPE OF SIGNAL TRANSMISSION SERVICE—Check all that apply:
CELLULAR PRIMARY/BACKUP RADIO PRIMARY/BACKUP INTERNET PRIMARY/BACKUP SERVICES—Check all that apply:
MONITORING: INTRUSION HOLD-UP OR DURESS FIRE ELEVATOR ELECTRONIC FIRE INSPECTION AND TESTING
This Master Services Agreement—Rental is dated October 11, 2024, by and between Netwatch North America, a California corporation (“we,” “us,” “our”) and City of Pico Rivera (“you,” “your”), a/an California [ ]corporation [ ] limited liability company [ ] limited partnership [ x ] other: municipality.
CUSTOMER INFORMATION
1. Start Date. The approximate start date is __TBA____, 20___, and the approximate completion date is __TBA____, 20___. Receiving equipment at our offices so that System installation may begin or starting the installation of wiring at one of the Premises contained on the Schedule of Premises constitutes substantial commencement of the work to be performed under this Agreement. The estimated date work is to be substantially completed is not a definite completion date and time is not of the essence.
2. Acceptance. This Agreement must be accepted and signed by you within 30 days from the date in the preamble, or we may withdraw it and provide revised pricing.
3. Agreement. This Agreement is comprised of the attached Statement of Work (as defined in Terms, Section 1) and Terms of Agreement. Except as expressly provided, all capitalized terms have the same meaning as contained in the Terms of Agreement. No Purchase Order or other document presented by you will include any terms inconsistent with this Agreement, all terms inconsistent with this Agreement are void, and all such terms are rejected by us. Please review all pages carefully.
***Acceptance and Signature Block Follow ***
Customer Legal Name City of Pico Rivera Account Contact Steve Carmona Tax Identification # Phone
Customer Address 6615 Passons Blvd. Cell 562-801-4371
City Pico Rivera Email [email protected]
State & ZIP CA 90660 Account Ref:
Enclosure 1
11a
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
[Signature Page for Master Services Agreement—Rental]
ACCEPTANCE
You read this Master Services Agreement—Rental, including the Statement of Work, Terms of Agreement, and all Schedules or attachments, before signing it and the prices and terms are acceptable to you. You understood and accepted this Agreement, including Sections 7, 8, 30, and 31, among others, which set forth our maximum liability if there is any loss, damage, illness, or injury to you or any third party. You may obtain a higher liability limit by paying an additional periodic charge. You were advised that there are additional, different, or higher levels of protection and service available. The System and services provided are based upon your specific request, approval, and cost considerations, for which you must hold us harmless. All provisions on the other pages or attachments are a part of this Agreement.
This Agreement is effective on the date the last Party signed the Agreement.
NETWATCH NORTH AMERICA
Dated: _____ ________________________________________
Authorized Company Representative
____________________________________
Alarm Registration Number (if required)
City of Pico Rivera
Dated: _____ _____________________________________
_____________________________________
_____________________________________
Unless we either (1) approve it in writing by an authorized company representative, or (2) begin installation or services, this Agreement is not binding on us. If we do not approve the Agreement, our sole liability is to refund the amount paid to us when you signed the Agreement. Not receiving a copy signed by us does not make this Agreement unenforceable.
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
STATEMENT OF WORK
A. System Description: See individual site addendums
B. Exclusions:
You or others are responsible for the work and the costs below, all of which are outside of this Statement of Work:
All civil work, including installation of any electrical poles. 120VAC to be provided by others if required.
All conduit or raceway work unless requested by you in writing in advance, and which will be subject to a fully-signed Change Order. A dedicated, operational broadband line complete with static IP address. Installation and maintenance of high-quality lighting to facilitate night-time monitoring and recording. Appointment of customer keyholder to provide us with emergency service access to all the Premises when necessary.
C. Fire Testing and Inspection or Other Services (if selected by you):
We will test and inspect your electronic fire system in accordance with the code, regulation, or guideline of the authority having jurisdiction of the Premises contained on the Schedule of Premises as follows: Quarterly Semiannually Annually Other: ______________________.
D. Schedule of Equipment (if applicable)
SCHEDULE OF EQUIPMENT
See individual site
addendums
SITE DESIGN
We approved the Site Design for each Premises, which was provided for our approval, and which is a part of this Agreement.
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
E. Schedule of Premises
SCHEDULE OF PREMISES
Please see attached list of all Premises covered by this Agreement.
F. Pricing Schedule (if applicable)
PRICING SCHEDULE
See individual site
addendums
G. Master Service Agreement Term
Term: 36 months from the date the last Party signed this Agreement. Effective date for an Addendum will reflect the date we begin monitoring signals at your premises.
Billing Terms:
See Terms of Agreement, Section 5 (Payments; Installation; Services).
CONSTRUCTION LENDER INFORMATION
Construction Lender: ________________________________________ Lender Contact: ___________________________________ Lender’s Address: _______________________________________________________________________________________________ Lender’s Phone:______________________ Fax: ________________________ Email: _______________________________________
BUILDING OWNER INFORMATION
Building Owner: ___________________________________________ Owner Contact: _____________________________________ Owner’s Address: ________________________________________________________________________________________________ Owner’s Phone:______________________ Fax: ________________________ Email: ________________________________________
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
NETWATCH NORTH AMERICA TERMS OF AGREEMENT
1. Terms. Netwatch North America is referred to in these Terms as “we,” “us,” and “our”. Customer is referred to in these Terms as “you” and “your”. This Agreement is comprised of these Terms of Agreement and the Statement of Work (as defined in subsection 36.23), and all proper and valid amendments of these documents, including change orders, which are all a part of this Agreement. No Purchase Order or other document presented by you will include any terms inconsistent with this Agreement, all terms inconsistent with this Agreement are void, and all such terms are rejected by us.
2. Installation; Monitoring. Under this Agreement, we will install or cause to be installed at each of the Premises contained on the Schedule of Premises (sometimes individually or collectively referred to as the “Premises”) the Systems contained in the Statement of Work (sometimes collectively, “System”). We will also connect your System to our Monitoring Center or an independent Monitoring Center that we select. The System remains our property at all times (see Section 6 (Title)).
3. Our Work. Our work to be performed on the Premises is contained in the Statement of Work (subsection 36.23). You chose the System or service.
Additional, different, or higher levels of protection and service were discussed with you and are available from us at an additional cost. We may remove our signage and window stickers provided at any time, and your right to display our branded items ends when this Agreement ends.
4. Term. The original term of this Agreement is 36 months (3 years) from the Effective Date. At the end of the initial 3-year term, the Agreement will automatically renew for an additional 5 years, but either Party may cancel this Agreement with 60 days’ written notice after the completion of the initial 3-year term. Notwithstanding the preceding sentence, this Agreement is applicable to and remains in full force through and including the last day of the Term of any Addendum issued under this Agreement. During the Term, this Agreement cannot be terminated and your obligations contained here are absolute, unconditional, and irrevocable. After the System is programmed, we will test it for up to five days. We will notify you when we will begin monitoring of System signals, images, or video. Moving from, selling, or not using your Premises does not relieve you of your obligations under this Agreement. If your law-enforcement or fire department requires or later requires visual or other verification procedures of an emergency before responding to an intrusion or fire System signal, you must comply with the requirement and subscribe for that service if provided by us. We may charge an additional fee for that service. When this Agreement ends, you will immediately allow us to remove or deactivate, whether remotely or otherwise, the communicators. Until all the communicators are deprogrammed and are no longer sending signals of any kind to the Monitoring Center, you are responsible for the Managed Service Fees for each of the Premises still sending signals.
5. Payments; Installation; Services.
5.1 Installation Fee. You will pay us a nonrefundable Installation Fee no later than ten days from the date of our invoice and before any scheduled work begins. Services will be charged as contained in subsection 5.3 (Managed Service Fee).
5.2 Acceptance of Installation; Delay. After the System is installed, we will inspect the System upon notice to you (the “Inspection”). Any error or omission in the design, construction, or installation of the System must be brought to our attention in writing (the “Correction Notice”) within five days after completion of the Inspection (the “Inspection Period”). If the Correction Notice is not timely received by us within the Inspection Period, you will have conclusively deemed the System to be accepted and satisfactory to you upon the expiration of the Inspection Period. Our work does not include electrical work or asbestos abatement. We will not commence or provide other services until the Installation Fee is paid in full. If you or your agents, representatives, or other contractors delay or disrupt our performance or the progress of our work through your or your agents’ or representatives’ acts or omissions, you shall pay us for all reasonable costs, charges, or losses incurred or suffered arising out of or relating to the delay or disruption, including consequential damages such as loss of revenue, office, personnel, and inventory expense, and all incidental damages that we incur. The estimated date work is to be substantially completed is not a definite completion date and time is not of the essence. We are not liable to you for any costs, charges, or losses incurred or suffered by you arising out of or relating to delay or disruption of our work arising out of or relating to your or your Affiliates’, employees’, representatives’, consultants’, contractors’, or subcontractor’s delay.
5.3 Managed Service Fee; Services. You will pay us the Managed Service Fee in lawful money of the US billed quarterly (unless notified otherwise) in advance beginning on the first day of the calendar quarter following the month in which services begin, without deduction or setoff, and by Automated Clearing House (“ACH”) transfer, for the entire Term of this Agreement. For the time period in which monitoring or other services are provided to you before the first full calendar quarter mentioned above, you must pay the prorated fees for the month(s) in which monitoring or other services begin and are provided, which fees will be calculated based on the Managed Service Fee. You are responsible for keeping all payment information with us current. We may increase the Managed Service Fee or other service fees as contained in Section 26 (Rate Increase). You authorize periodic charges to your bank account, without recourse, for the amounts indicated in the Statement of Work or other services, including fire testing and inspection, if any. You are responsible for keeping all payment information current. If your payment is rejected for any reason, you will pay us the amount due plus a $35 returned payment fee (or the maximum allowed by law) within five days of our notice to you. If we make an error, our only responsibility is to correct the error when we receive notice from you. You authorize us to investigate your credit record, and to report your payment performance to credit agencies or credit reporting services. We are not required to provide you with any demand, invoice, or notice for payment, and may do so only for your convenience.
5.4 Termination of Fire Monitoring. If we are monitoring the fire system at your Premises and you or any third party repairs, services, programs, or modifies or attempts to repair, service, program, or modify any portion of the fire System, we may terminate (without liability) the remaining
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
monitoring term with ten-days’ written notice to you, and may notify the Authority Having Jurisdiction that fire monitoring has been terminated.
5.5 Time of the Essence. Time is of the essence with respect to all payments due under this Agreement.
6. Title; Security Interest; Risk of Loss; Removal of System.
6.1 Title; Personalty; Security Interest. You acknowledge that we are providing the System as part of our service, that you do not own the System, and that we hold all right, title, and interest in and to the System, and all its components, accessories, accessions, and attachments, and all replacements, substitutions, and exchanges for such goods, together with proceeds of all the foregoing at all times. You disclaim any right, title, or interest in or to all or a part of the System other than the right to use the System in accordance with this Agreement. Your rights to possess and use the System are always subject and subordinate to our rights and interests in the System. During the Term, this Agreement cannot be terminated and your obligations contained here are absolute, unconditional, and irrevocable. You agree that the System, including wire, cable, or conduit, remains business personal property after installation and does not become or create a fixture to your Premises, and will not be deemed to be affixed to your Premises, regardless of whether any portion of the System may be or become physically affixed or attached to your Premises. If you do not own the Premises, you shall cause the owner or the owner’s authorized representative to issue a waiver of any interest in or to the System, including wire, cable, or conduit, in whole or in part. To the extent that you may be deemed to have right, title, or interest in the System, as security for the performance in full of your obligations under this Agreement, whether now existing or hereafter arising, you grant us a first priority security interest in the System and all its components, accessories, accessions, and attachments, and all replacements, substitutions, and exchanges for such goods, together with proceeds of all the foregoing at all times, and we may file a UCC-1 Financing Statement without notice to you. At all times, you must protect and defend, at your own cost and expense, our title in and to the System from and against all charges, claims, liens, encumbrances, and legal processes of any kind or nature of or from your creditors, and keep the System and all its components free and clear of all such claims, liens, and processes. Until the Agreement ends or the System is removed from your Premises or abandoned by us, you are responsible for the System’s safekeeping and protection unless we elect to abandon the System. You must not remove, deface, hide, or attempt to remove any identifying mark on the System or any component. Once installed, you must not move or relocate any portion of the System, including equipment, components, or wiring, from the installed location without our prior written consent, which consent shall not be unreasonably withheld. All relocation of any portion of the System must be done by an authorized company representative at our then current rates for parts and labor. At all reasonable times during normal business hours, we may and you will allow us to enter into and upon the Premises for the purpose of inspecting, servicing, or maintaining the System. You must not use or operate all or any portion of the System improperly, carelessly, in violation of any applicable law, or in a manner contrary to that contemplated by this Agreement.
6.2 Risk of Loss; Insurance. Once installation begins, you bear the entire risk of loss for the whole System. During the Term of this Agreement, as contained in subsection 32.3 (Your Insurance), you must maintain all-risk insurance satisfactory to us in our sole discretion for damage to or loss of the System and all its components at your expense, and must name us and our assigns as an additional insured and sole loss payee on your all-risk, premises, and commercial general liability insurance policies. If the System or any part of it is damaged or lost, you must pay us the fair market value of the System or the cost of repair, which option we will decide in our sole discretion. During the Term of this Agreement, you must not damage, lien, encumber, or dispose of any part of the System or permit the System to be tampered with, damaged, encumbered, or removed. You must not allow anyone other than us to service or repair the System.
6.3 Service and Maintenance. During the Term of this Agreement, you must allow us access to the Premises and the System, in person and remotely, to keep it in good working order as reasonably required under the Maintenance Program (subsections 21.3 and 38.16), and to update firmware and software as we may determine. Maintenance Program services are provided as part of the Managed Service Fee. Service or repair required by another contractor’s or vendor’s work, negligence, or equipment is not covered under this subsection 6.3 or subsection 21.3 (Maintenance Program) or elsewhere in this Agreement.
6.4 Default; Removal or Return of System. If you Default, in addition to all other remedies provided in this Agreement, we may (a) immediately terminate (without liability) your right to use and possess the System or any part of it, and (b) exercise any and all remedies under this Agreement. When this Agreement ends or if you Default, you must immediately allow us to enter the Premises and remove or deactivate all or any part of the System, and you shall cooperate with us or our respective agents in the surrender, removal, and deactivation of the System. You must return the System to us in good working order, except for reasonable wear and tear. Until the System is removed from your Premises by us or our designated agent, you remain solely responsible for the System’s safekeeping and protection unless We elect to abandon the System. If all or any part of the System is not returned, is not or cannot be removed for any reason, if we are prevented from removing the System, or is beyond reasonable economic repair at the end of the Term, you shall pay us a sum equal to 50% of the current manufacturer’s suggested retail price for each item not returned or not returned in good working order. Notwithstanding the foregoing, We are not required to remove all or any part of the System. We may elect to disable or abandon all or any part of the System in our sole discretion. Removing, disabling, or abandoning the System is without prejudice to the acceleration and collection of all sums due under this Agreement or any extensions or renewals thereof as provided in Section 27 (Default). All remedies are cumulative to the maximum extent allowed by law. If the System is removed for any reason, we are not obligated to restore the Premises to its original condition or to redecorate the Premises. At the end of the Agreement, you may purchase from us the wire, cable, and conduit installed by us. If you do not own the Premises where the System is located, you must notify us 60 days in advance of the end of the Premises’ lease term. With Our express prior written consent, which will not be unreasonably withheld, we may allow you to relocate the System to a new premises, which you will occupy. You will pay us our then current rates for parts and labor on a time-and-materials basis for all work performed in connection with the relocation of the System. You will continue to pay for the unexpired Term remaining under this Agreement or we may require a new agreement for the new premises. Under no circumstances does our consent to or our work in connection with the relocation of the 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
System constitute a waiver or release of your duties or obligations, payment or otherwise, under this Agreement, and you are in no manner relieved of such duties or obligations by or as a result of the System relocation.
7. DISCLAIMER OF WARRANTIES; LIABILITY; CONSEQUENTIAL DAMAGES. Our obligation to provide the System or any other services arises solely out of this Agreement, and not through any other means. We do not represent or warrant that the System, Service, or Communication Pathway may not be compromised or by-passed; will detect or deter all burglaries, hold-ups, personal emergencies, fires, smoke or water damage, or otherwise; will be secure from cybersecurity incidents, threats, or attacks or always be online; or that it will in all cases perform as intended, or provide the detection or convenience for which it was installed or intended. We also do not represent or warrant that you or anyone on your Premises will not be exposed to or contract a virus, bacteria, or other infectious disease or condition arising from the performance of our services on your Premises. We or our agents or employees made no representations or warranties, express or implied, as to any matter whatsoever, including our services, the condition of the equipment, its merchantability, its fitness for any particular purpose, usage of trade or course of dealing, or noninfringement or title. The implied warranties of merchantability or fitness for a particular purpose are expressly excluded from this Agreement. You did not rely on any advertisement, representation, or warranty, express or implied. Any information provided or promise made does not create an express warranty, and will be considered expressions of personal opinion only. If we were to have any liability greater than that agreed to by you in Sections 8 (Limitation of Liability), 30 (Assignment), and 31 (Indemnification), and the other indemnities contained here, we could not and would not provide the System or service, and we could not provide the System or service at the rates contained here. The applicable Warranties provided in this Agreement give you specific legal rights. You acknowledge that we entered into this Agreement in reliance upon the disclaimers of warranties here, the limitation of liability in Section 8, and the indemnities and other protective provisions contained in this Agreement; that these provisions reflect an allocation of risk between the Parties (including the risk that a contract remedy may fail of its essential purpose and cause consequential loss); and that these provisions form an essential basis of the bargain between the Parties. We are not liable for special, indirect, or incidental damages or expenses, or for consequential damages, including lost profits, loss of use, loss of goodwill, loss of reputation, loss of anticipated savings, loss or damage to data, and so on, even if we were advised of the possibility of such damages, and regardless of whether the loss or damage would arise in the ordinary course of events, is reasonably foreseeable, or was in the contemplation of the Parties. This disclaimer and exclusion apply even if our Service and Repair and Maintenance Program (Section 21) fail of their essential purpose.
8. LIMITATION OF LIABILITY; LIQUIDATED DAMAGES.
8.1 No Guarantee. We and our parents, divisions, and affiliates are not insurers of your real or personal property, data, or the personal safety or property of anyone on your Premises. This Agreement is not an insurance policy or a substitute for an insurance policy, and the amounts you pay to us are not insurance premiums. You must obtain all property, life, health, disability, business interruption, or other necessary insurance.
The payments required are based solely upon the value of the System or Services, and not on the value of your real or personal property or data, or the property of others located in or on your Premises. We make no guarantee or warranty, including an implied warranty of merchantability or fitness, that the System or Services will prevent or avoid the occurrences or the consequences of occurrences, that the System or Services is designed to detect or avert, and that may result proximately from our failure to perform any of our obligations under this Agreement, our active or passive negligence, including the risk of exposure to, spread or transmission of, or contracting a virus, bacteria, or other infectious disease or condition, which causes you or anyone on your Premises illness, harm, injury, or death, whether as a result of a pandemic, epidemic, outbreak, or other public health emergency, the failure of our equipment, our failure to comply with applicable law or regulations of any authority having jurisdiction, or the response time of law enforcement, fire department, emergency personnel, paramedic unit, or guard service.
8.2 Limitation of Liability. If we or our agents or employees are found liable for loss, damage, injury, illness, or death of any kind whatsoever from our failure to perform any of our obligations under this Agreement; failure of the System, Services, or Communication Pathway in any manner; failure of our installation, repair, or other service; tort; invasion of privacy; breach of warranty; the contracting or transmission of, or exposure to a virus, bacteria, or other infectious disease; or our active or passive negligence, then our liability is limited to (1) $1,500 or (2) a sum equal to one monthly Managed Service Fee of the Premises involved in the incident and which Fee is in effect at the time of the incident, whichever is less. This is your only remedy regardless of the legal theory used to find us liable. You may obtain a higher limitation of liability by paying an additional periodic charge. If you elect this option, a rider will be attached to this Agreement stating the terms and amount of the limited liability and the additional periodic charge. Even if a rider is provided to you, we are not your insurer.
8.3 Liquidated Damages. If a court of competent jurisdiction finds that the limitation of liability above is not enforceable or inapplicable for any reason, then the Parties agree as follows: it is impractical and extremely difficult to determine in advance (a) the value of your real or personal property or data, or the property of others kept on your Premises, that may be lost, stolen, or damaged if the System or service does not operate properly; (b) the response time of the Monitoring Center, emergency personnel, or guard service, if any; (c) what portion, if any, of a loss, damage, personal injury, or death would be proximately caused by our failure to perform or our active or passive negligence, including the risk of exposure to, spread or transmission of, or contracting a virus, bacteria, or other infectious disease or condition, which causes you or anyone on your Premises illness, harm, injury, or death, whether as a result of a pandemic, epidemic, outbreak, or other public health emergency; or (d) whether a camera or access control system would detect or prevent unauthorized intrusions or activities. Accordingly, if we or our agents or employees are found liable for loss, damage, injury, illness, or death of any kind whatsoever from our failure to perform any of our obligations under this Agreement; failure of the System, Services, or Communication Pathway in any manner; failure of our installation, repair, or other service; tort; invasion of privacy; breach of warranty; the contracting or transmission of, or exposure to a virus, bacteria, or other infectious
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
disease; or our active or passive negligence, you accept $1,500 as liquidated damages in complete and total compensation for such loss, damage, injury, illness, or death and instead of any other monetary relief or other remedy. This is not a penalty. The limitation of liability and liquidated damages are exclusive of each other, and are not cumulative remedies under this Agreement.
8.4 Exception. The liability limits contained in subsections 8.2 (Limitation of Liability) and 8.3 (Liquidated Damages) will not apply to loss, property damage, injury, or death that occurs while our employees, subcontractors, or agents are on the Premises performing installation, repair, inspection, or other services, and that is caused by their acts or omissions, such as, for example, broken windows, damage to drywall, ceilings, or finishes, or furnishings, or if our equipment falls on persons or your property. This provision does not apply to any other form of loss, property damage, injury, or death arising out of or relating to your System or our installation or services, and all other provisions in this Section 8 remain in full force.
9. Extra or Change-Order Work. You will not require us to perform extra or change-order work without providing written authorization before the commencement of any work covered by Change Order substantially in the form attached to this Agreement. Extra work or change orders become part of this Agreement once the Change Order is prepared in writing and signed by both Parties. Change Orders must describe the scope of the extra work or change, the cost to be added or subtracted from the Agreement, and the effect the Change Order will have on the progress payments, if any. The failure to comply with these requirements does not preclude recovery of compensation for work we performed based upon legal or equitable remedies designed to prevent unjust enrichment.
10. Access and Preparation; Hazards. You will allow us to enter the Premises to install the System or provide service, and will provide uninterrupted access. You accepted our Statement of Work and in doing so, approved the locations where the System devices will be placed. We will try to conceal all wires, but the existing structure or other obstructions may require some of the wires to be visible. You authorize us to make any preparation such as drilling holes, driving nails, making attachments, or doing other things necessary for installation or service of the System. Before installation begins, you must inform us where not to drill or expose because of pipes, wires, equipment, or hazardous materials. Unless so informed, we will decide where to drill holes and install equipment. We will use reasonable care to avoid concealed items, but have no way to determine with certainty if any exist. All costs to repair or replace pipes, wires, equipment, walls, ceilings, floors, or furnishings are your sole responsibility. We are not liable for property damage, personal injury, illness, or other loss due to water intrusion, including mold or rot. If asbestos or other hazardous materials are found during installation, we will stop all work until you, at your sole expense, obtain clearance from a licensed asbestos or hazardous waste removal contractor that no danger exists. We are not liable for the discovery of or exposure to asbestos or other hazardous materials. You must immediately defend and indemnify us against all claims by you or a third party arising out of or relating to such damages, or discovery or exposure to mold, asbestos, or other hazardous materials.
11. Response to Alarm Condition. When an Alarm Condition (as defined in subsection 36.2) is received in accordance with the Services you have requested, we may notify your contact(s) by text, call, or email in the manner directed in your Protocol (Section 13) and depending on the Services you selected. If we receive an Alarm Condition, we will, without warranty, make reasonable efforts to follow the Protocol for your Premises. You acknowledge that emergency personnel may forcibly enter the Premises when they are told that we received a hold-up, panic, duress, or fire signal from your Premises. You consent to this. You acknowledge that damage to your Premises or property may occur and that you are responsible for all costs related to that damage. If we receive video or images of an Alarm Condition from your System, we do not guarantee that we will always be able to decipher, understand, interpret, respond to, and manage the video or images received correctly under all circumstances. Our Services do not include periodic video guard tours or other similar services, and Services will only be provided if the Monitoring Center receives an Alarm Condition from your System.
12. Elevators. If you selected elevator monitoring, you are solely responsible for programming the emergency signal devices and two-way communication feature of each elevator to call the dedicated dial-in telephone number(s) we provided you. We are not liable for elevator programming errors and you must immediately defend and indemnify us from all claims by you or a third party arising out or relating to improper programming. You acknowledge that the designated elevator dial-in telephone number(s) terminate in the Monitoring Center or as otherwise directed by you in your Protocol. We do not have any repair, service, testing, or personal response obligations for the Premises’ elevators under this Agreement, and you are solely responsible for these items. You are solely responsible for full compliance with the Americans with Disabilities Act and all other requirements or specifications of the Authority Having Jurisdiction.
13. Protocol Form. You will immediately give us and update as needed or requested a written Protocol, which lists the names, relationship, titles, and telephone and mobile numbers, and emails of all persons to be notified if there is an alarm and the order in which these persons are to be notified, and all other information that we may require. You will also give us a written list of the names, titles, and numbers of all persons authorized to enter or remain on the Premises. You must give us a daily and holiday opening and closing schedules. All changes to your Protocol must be given to us only in writing, and become effective only upon our acknowledgment of receipt of the changes. If you selected access to a remote network or server, you are solely responsible for creating and updating your profile(s) on any remote service website. You are solely responsible for who has remote access to the System or System video or images.
14. Software License. During the original or renewal Term of this Agreement, we grant you a personal, nonexclusive, and nonassignable license or sublicense to the software or firmware to enable you to use, access, and run the System, and not for any other purpose. You will only use the software or firmware and any related documentation only in a manner that complies with all applicable laws in the jurisdictions in which you will use the software or firmware, including observing and complying with all applicable restrictions relating to copyright and other intellectual property rights. Except to the extent expressly authorized under this Agreement, you shall not and do not receive any right, title, or interest in or to the software or firmware, and the software or firmware shall remain our or vendor’s exclusive property. You will not sell, assign, lease, transfer, encumber, or otherwise suffer to exist any lien or security
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
interest on, nor copy, distribute, reproduce, modify, or disclose the software or firmware, whether in whole or in part, in any manner whatsoever. You will not copy or duplicate, create, or attempt to create, or permit others to copy, duplicate, create, or attempt to create, by reverse engineering or otherwise, the source programs or any part thereof from the object programs or from other information made available under this Agreement. The license or sublicense automatically ends (without liability) when this Agreement ends.
15. False Alarms. If you cause an excessive number of false alarms through carelessness, or malicious or accidental use of the System, or if you in any manner misuse or abuse the System, your conduct is a material breach of contract. After giving you ten-days’ written notice, we may at our option, in addition to all other legal remedies, terminate (without liability) this Agreement and exercise any or all the remedies provided in Sections 6 (Title) and 27 (Default). As used here, “excessive false alarms” means five or more alarms in a calendar month which we, after reasonable investigation, determine to be false. You are solely responsible for all false alarm fines, penalties, or fees, including charges from a private guard service, if any, whether assessed against you, and you must immediately indemnify us against all such fines, penalties, or fees imposed on us.
16. Alarm Signal Transmission Methods. You must pay all monthly service charges connecting your Premises to our Monitoring Center. If your regular telephone service is out of order, disconnected, placed on vacation, or otherwise interrupted, signals from your System will not be received by our Monitoring Center during any interruption in telephone service. Interruptions will not be known to our Monitoring Center or us, and emergency personnel or others will not be called. If you use regular telephone service as a Communication Pathway, you must pay us for any costs incurred to reprogram the digital communicator to conform to telephone company-initiated changes in dialing procedures or area codes. Costs are based on our then current standard service call fees. If cellular or radio service is used as a Communication Pathway, the System’s communicator is connected to a cellular or radio network. The use of radio frequencies is controlled by the Federal Communications Commission (“FCC”), and changes in FCC rules, regulations, and policies may necessitate discontinuing use of the pathway. Radio or cellular Communication Pathways are subject to topographical and environmental conditions, including power failures and electrical storms, which are totally beyond our control. Service may also be limited based on available coverage, carrier, or thirdparty related issues. Changes in rules, regulations, or policies may require us to change the way signals are sent and we may do so at our option. If we decide to make a change or your Communication Pathway becomes obsolete, we may be required to use another Pathway. You acknowledge and agree that cellular Communication Pathways currently used (e.g., 4G, 5G, GSM cellular, or LTE) may not be available in the future, and if so, we may be required to replace or change your existing equipment to continue our Services. If that happens, you will pay our then current rates for parts and labor for the necessary changes to the transmission service or equipment. Using DSL, BPL, cable, Voice over Internet Protocol (“VoIP”), or other internet-based Communication Pathways may interfere with the signals sent by the System to the Monitoring Center. Signal transmission using these Communication Pathways can be sporadic. These Communication Pathways will not work without electrical power, and may interfere with your ability to call 911 or interfere with the telephone line-seizure feature of the System. To make sure that the System is operational and properly transmitting signals, you must immediately test your System after installation of any of these internet-based Communication Pathways and must immediately notify us of the installation of any of these services. If internet Communication Pathways are used for your intrusion detection or fire System, cellular or radio back-up is highly recommended.
17. Audible Alarm Shut Off. If your security System has an audible alarm, we will enable a device that automatically shuts off the audible alarm after it has sounded for not more than five minutes after the first activation. No automatic shut-off for fire devices or systems is allowed.
18. Cameras; Transmission; CCTV.
18.1 Video Monitoring; CCTV. If you also selected video monitoring and remote access, video or images will be sent to the Monitoring Center through your System and, upon receipt by the Monitoring Center, handled in accordance with Section 11 (Response) of this Agreement relating to video or images.
Video monitoring does not include video guard tours or other similar services. You may also have remote access and the ability to view your cameras on your internet-enabled devices through a remote video viewing network or server provided by us or others. With remote access, your cameras will be connected to a remote video viewing network or server provided by us or others which you may access under a limited personal, non-exclusive, and nonassignable license or sublicense. We are not responsible for this network or server, including connectivity, performance, maintenance, or otherwise, and do not guaranty that the network or server will always work as intended. You are solely responsible for managing and controlling who has remote access to the System or System video or images, and you must indemnify us against all claims by you or a third party arising out of or relating to the failure to restrict improper access to the System. You will be able to access video or images for up to 30 days after such data is recorded or transmitted by your monitored System. We will not store video or images for more than 30 days. You must notify and specifically request us to store video images of an incident for more than 30 days and pay all associated fees or costs at our then current rates for such services. You acknowledge that we may process, both manually and electronically, the video or images from your System outside of the United States, and you consent to this. If you selected a CCTV system, video or images from your CCTV system will not be monitored or viewed by us or the Monitoring Center, and we will not receive, view, or respond to such video or images. Video or images will only be available for your or your authorized representative’s viewing on your DVR or NVR or other internet-enabled devices.
We do not warrant or guaranty the continuous operation of your camera System. You are responsible for ensuring that the camera System has unobstructed and clear views. You must provide the proper environment for the cameras as requested, including adequate lighting of your Premises, network speed, bandwidth, access, and removal of obstructions. The amount of light available will determine the amount of light required by your cameras for them to produce usable video or images. Outdoor cameras are subject to broad extremes in ambient conditions, and, in particular, lighting, and can be affected by many factors such as headlights, vehicle speed, heat, cold, rain, fog, or humidity, which are completely beyond our control.
18.2 Internet. You must provide proper high-speed internet service 24/7/365 days per year, and pay all provider-related charges for the cameras.
Unless provided in the Statement of Work, which is a part of this Agreement, we do not provide internet service; maintain all internet connections and
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
wireless communication pathways; computer, smart phone, or electric current connections or supply; or in most cases, the remote network or server, which is provided by others. If selected by you, we may provide internet service distributed on an “as-is” or “as available” basis for your System through an ISP.
We will rent to you and you will pay us for the necessary Internet Equipment as contained in the Statement of Work. Your use of all internet services are governed by and subject to the ISP’s agreement, and you agree to be so bound. You may experience interruption in signal transmission or slowdown in download speed, which are completely beyond our control and for which we are not responsible. You are solely responsible for restricting access to the internet access we provide for the System, and use of the internet access provided for any purpose unrelated to the System shall be strictly prohibited. You are solely liable for all unrelated use of the internet access provided under this Agreement, and all consequences, losses, or damages arising out of or relating to such unauthorized or unrestricted use. You must immediately defend and indemnify us against all claims by you or a third party arising out or relating to such unauthorized or unrestricted use, including System failure, loss of internet service, viruses, cybersecurity incidents, threats, or attacks, decreased connectivity, failure to transmit signals, and so on. Internet services end (without liability) when this Agreement is terminated for any reason.
19. Privacy. You (a) will not use or permit the use of video installed where any person may have a reasonable expectation of privacy; and (b) will not use the System for any criminal, illegal, or otherwise unlawful activity, including invasion of privacy. You are solely responsible for compliance with all law, statutes, or regulations regarding your camera System, including whether notification to employees or others, or signage is required for your Premises for remote monitoring of video or recordings and storage of same. In addition, you acknowledge privacy laws may restrict camera placement that allows you to view premises not owned or controlled by you. The camera System may transmit, record, store, provide, or receive unencrypted data, video, images, or images of or from your Premises, its occupants, or visitors through the internet. We are not responsible for the privacy, integrity, confidentiality, accuracy, or security of any email, text message, or transmissions of or from, or recordings made by, the camera system or any unauthorized use, disclosure, or interception of emails, text messages, video or images. We do not and cannot warrant the integrity, accuracy, privacy, confidentiality, or security of emails, text messages, or video or image transmissions, and you assume all responsibility for those transmissions, including unauthorized or unintentional use, appropriation, disclosure, distortion, modification, interception, or other consequences, and all claims arising out of or relating to any transmissions, including invasion of privacy, mental distress, false arrest, false imprisonment, or violation of law. You must immediately defend and indemnify us against all claims by you or a third party arising out of or relating to your camera System, including its use, images, photographs, transmissions, and video recordings. Please see Section 29 (Information and Privacy) for provisions governing what we do, may do, or have no obligation to do, with the information, video, or images captured by the camera System or your personal information.
20. Fire Testing and Inspection.
20.1 Inspection, Test, and Report. You must inspect and test your fire System and related components in accordance with the applicable code or regulations, and the frequency specified. If you select electronic fire system inspection and testing, we will inspect and test your electronic fire system in accordance with the code, regulation, or guideline of the authority having jurisdiction of your Premises in accordance with the frequency contained in the Statement of Work. We will record and update normal and abnormal conditions or characteristics for the System or the portion of the System being tested or inspected, including panels and other System devices or components as required. We will provide you, the authority having jurisdiction, if applicable, and any other entity that you designate in writing with our written report and all other required materials within the applicable time. Deficiencies will be provided in writing within one Business Day. Procedures performed, as well as any defects or deficiencies discovered and our recommendations, will be noted in our written report. Our report does not guarantee that all deficiencies have been detected, and that your System is fully operational or complies with all applicable codes. If requested, we will return all paperwork or plans provided to us by you upon the completion of the inspections or tests or with the delivery of our written report. We are not responsible for the fire suppression system, for the adequacy or condition of the water supply for the fire suppression system, or fire extinguishers, if any.
20.2 Access. You must notify your employees of all inspections and testing. You will permit us to enter the Premises to service, inspect, or test the System and will provide uninterrupted access. While we are on the Premises, you will provide continuous electrical service.
20.3 Cancellation. You will provide us a minimum of 24-hours’ notice of cancellation of a scheduled inspection or testing. You will pay us our then current cancellation fee per scheduled inspection for cancellations not received on a timely basis.
21. Service and Repair; Maintenance Program.
21.1 Contact Us. You must notify us within two Business Days from the time you become aware of a System performance issue. You must send all requests for service and repair to [email protected]. If immediate assistance is required, an Operations Manager or person holding a higher position with you may call us at (877) 686-5859 to request service or repair. Service and repair are usually performed as soon as reasonably possible during normal business hours.
21.2 Service and Repair. As part of your Managed Service Fee, we will, upon your request, make all repairs and replace defective parts without cost to you during the entire Term of this Agreement. Our service and repair includes all parts and labor for repairs necessitated by ordinary wear and tear, not including Excluded Items (subsection 36.9). You must pay for Excluded Items on a time-and-materials basis at our then current rates for parts and labor and a one-hour minimum service call fee during normal business hours. If anyone other than an authorized company representative performs or attempts to perform repairs, service, programming, or modification of all or any portion of the System, you must pay us on a time-and-materials basis at our then current rates for parts and labor plus a one-hour minimum service call fee to restore or repair the System during normal business hours. Payment for this work must be made upon completion of the work.
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
21.3 Maintenance Program. As part of your Managed Service Fee, we will provide you and you must accept our Maintenance Program and allow us access, in person and remotely, to your Premises and System to perform those services. Maintenance Program services include (1) updating System firmware and software as we may determine; and (2) one onsite service call per year, which will include inspection and testing (excluding fire alarm devices or fire systems) of various portions of the System in our sole discretion. Maintenance Program services do not include Excluded Items (subsection 36.9).
The Maintenance Program does not include inspection and testing of the fire alarm devices or fire Systems, if any, and you must request inspection and testing services for your fire alarm devices or System. Maintenance Program services must only be performed by our authorized company representative.
You must not allow anyone other than our authorized company representative to perform or attempt to perform repairs, service, maintenance, programming, updating, or modification of all or any portion of the System.
21.4 Repair or Replace; Remote Access; Hours; Liability. To perform Service and Repair and Maintenance Program services, or other services, you must allow us access to your Premises and to the System. The provisions, or any of them, of this Section 21 will not and do not require us to make improvements to, expand, or add components or equipment to the System. We may, in our sole discretion, either repair or replace the part, and may substitute new or reconditioned materials of similar type, quality, and utility at the time of replacement, and we may keep any parts replaced. If the repair costs exceed the replacement cost, we may replace the defective equipment with new or reconditioned equipment substantially equivalent to or with comparable features as the existing equipment, if available. The replacement equipment may have a higher or lower selling price than the original equipment you have. We may repair, service, maintain, program, or modify the System remotely, and you will allow us access to do so. Service is provided between the hours of 7:00 a.m. to 5:00 p.m., Monday through Friday, excluding Holidays. Emergency or after-hour service is available at all other times at our then current premium labor rate and minimum emergency service call fee. We are not responsible for loss, damage, or injury while the System is under repair or is awaiting parts. You acknowledge that, if the System cannot be repaired or reactivated during normal business hours, you will need to hire in your sole discretion and at your sole expense physical security. We are not liable for the cost of any physical security, including fire watch, that may be required while the System is not functioning. Any repair, service, maintenance, programming, modification, replacement, upgrade, or additional services or equipment provided by us after the initial installation or programming of the System is governed by this Agreement, in particular Sections 8 (Limitation of Liability), 30 (Assignment), and 31 (Indemnification), which limit our liability.
22. Your Duties as to Use of System; Battery and Device Replacement; Monitoring or System Permits.
22.1 Test; Batteries; Power. Immediately before securing your Premises, you or others using the System must carefully and properly set the security System. You must properly test the System at least monthly. If the System does not operate properly or if there is a power failure or other interruption at your Premises, you must notify us immediately. If your System uses wireless battery-operated devices, you must replace the batteries when the System emits a low-battery signal or at least every two years or in accordance with the manufacturer’s instructions. You may also request us to replace the batteries at your expense at our then current rates for parts and labor plus a one-hour service call fee. If you fail to replace the batteries, or if the batteries are low or dead, the System will not function properly. You must provide 24-hour electrical service and electrical outlets for the System.
You must provide the proper environment for the System as reasonably requested.
22.2 Permits; Notification. Monitoring of any kind may be subject to permit fees. Unless otherwise required by law, obtaining and maintaining an alarm permit is your sole responsibility. You are solely responsible for paying for all monitoring, alarm, or system permits, licenses, or fees imposed by authorities having jurisdiction necessary for the use and operation of the System, and all other charges or fees imposed. You are solely responsible for determining whether the city, county, or governmental subdivision in which the Premises are located has or may later have statutes or ordinances requiring that you obtain and maintain a license or permit for the System. Certain law-enforcement or emergency agencies will not respond to an alarm signal unless you have a valid alarm user permit, which you must keep current and active as required. To request an emergency response, we must know your permit number. Until you obtain, at your expense, all necessary permits or licenses, and provide us with the license or permit number, we may not be able to notify emergency personnel of an alarm signal. If required to do so by any governmental authority or insurance interest, we may discontinue any form of response.
22.3 Cooperation. You will always cooperate with us relating to the System or the Services provided. You will (a) provide us and our employees, agents, subcontractors, or consultants access to the Premises, data, or other facilities as we may reasonably require in a timely manner; (b) use the System in a careful and proper manner at all times; (c) be responsible at your sole expense for preparing and maintaining the Premises for the supply of the Services, including identifying, monitoring, removing, and disposing of any hazardous materials from the Premises in accordance with all applicable laws, before and during the supply of the Services at the Premises; (d) inform Company of all health and safety rules and regulations, and any other reasonable security requirements that apply at the Premises; (e) except as otherwise provided here, keep the System in good condition, and not dispose of, repair, or use the System other than in accordance with our written instructions or authorization; (f) give us 30 days’ prior notice of any proposed structural alterations to the Premises and of any required modifications to the System or changes to the Communication Pathways which may affect the Services; (g) give us 60 days’ prior notice of when you enter into negotiations which may result in a change to the ownership or occupancy of the Premises; (h) notify us by telephone, and if requested, confirm same in writing if an Alarm Condition occurs accidentally or inadvertently; (i) make available such components of the Communication Pathways as may be necessary for the total operation of the Services, and ensure that the cost of the Communication Pathways, together with all charges for the continued use thereof, are promptly paid to the appropriate service provider to enable us to carry out the Services; (j) pay all utility and other charges incurred in the use and maintenance of all or any part of the System; (k) immediately notify us, law enforcement, and your insurance carrier of any loss or theft of all or any portion of the System; and (l) if only part of the Premises is covered by the System, review regularly the part of the Premises that is monitored and inform us if any extension of the Services is required to cover additional parts of the Premises.
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
22.4 Access Control. Unless otherwise specifically agreed to in writing, you are solely responsible for updating and maintaining the access control schedule for a physically-controlled area or zone, including holidays; naming, adding, editing, and managing doors, elevators, or floors; creating, updating, and maintaining access credentials, including PINs and a database of all credentials issued, including proximity cards, fobs, magnetic stripe cards, smart cards, and mobile credentials; viewing or retrieving video clips, if any, associated with access events; sending emails, text messages, or push notifications to select administrators upon the occurrence of various access events; and retrieving activity reports.
22.5 Indemnity. You must immediately defend and indemnify us from any claim made by another alarm company regarding its contract with you.
23. Interactive Services; Compatible Devices. If you selected interactive security services, you may receive customized emails, text messages, push notifications, or alerts about System signals or images, if any, on your computer, tablet, smart phone, or other mobile device. You acknowledge that these types of messages may fail to reach their intended destination or may arrive too late to be of any use for a variety of reasons, including settings on your devices. You will have access to the remote server provided by us or others. Certain wireless, remote access, or interactive security or automation services require a compatible computer, tablet, smart phone, or other mobile device with internet and email access. Not all devices will work with these services, and you must provide your own devices at your sole expense, and keep them charged. You acknowledge that we have no control over your devices, or your internet, email, text message, push notification, or alerts access. Cellular data providers may charge additional fees for accessing the System or automation system on wireless devices, and we have no liability for data usage in excess of your plan. These charges are your sole responsibility.
24. Network or Server Vulnerability; Liability. Your System or wireless devices may be connected to the internet. You are solely responsible for the integrity and security of your data, software, devices, computer system, networks, servers, and other equipment. You are also solely responsible for any misuse of the System or software, and for limiting access to your wireless systems or VPN, changing the default password, and securing access to the System or software with regularly updated pass code protection, credentials, logins, PINs, lockout codes, firewalls, secure gateways, or encryption software, and for all changes, whether or not authorized by you. You must notify us immediately if you upgrade your operating system or make any changes to your file mapping, or your System or devices are unable to access the internet or network service. We do not guarantee that the System or service will meet your requirements, that the service will be uninterrupted or error-free, or that encryption algorithms, associated keys, and other security measures will be secure or effective. You acknowledge that we do not operate or control the internet, that all devices may not meet encryption standard specifications, and that viruses, worms, trojan horses, denial of service, or other malicious or undesirable data, code, software, attacks, hackers, or users may attempt to access or damage your data, devices, computers, and networks. We are not liable for such activities or for any loss, damage, or injury or the consequences therefrom arising out of or relating to any unauthorized or improper access to or use or destruction of your System or data, including hacking, denial of service, data breaches, data loss, or other malicious or cybersecurity incidents, threats, or attacks of any kind, or business interruption. You must immediately defend and indemnify us against all claims by you or a third party arising out of or relating to such activities or the authorized or unauthorized use of the internet, including System failure, loss of internet service, viruses, cybersecurity incidents, threats, and attacks, decreased connectivity, failure to transmit signals, and so on.
25. Your Plans and Specifications; Authorities Having Jurisdiction. If the System is installed, changed, upgraded, or replaced in accordance with your plans and specifications, you must pay for all costs incurred for any work necessitated by errors in the plans provided. You are solely responsible for all costs necessitated by changes in the regulations or standards of any authority having jurisdiction, including the interpretation of the regulations and standards. You will promptly pay us for the cost of any changes to the scope of work under this Agreement that may be requested by the owner of the Premises if you are not the owner, or any authorities having jurisdiction, including building and safety departments, local fire or electrical departments, insurance companies, homeowners’ associations, or any other federal, state, or local agency.
26. Default; Interest; Removal of System.
26.1 Default. Any of the following constitute your default under this Agreement (each, a “Default”): (a) failure to pay any amount provided for in or due under this Agreement within ten days after the same is due; (b) failure to communicate or cooperate with us, including being disrespectful or abusive, or comply with reasonable requests; (c) failure to perform any other obligations under this Agreement or cure a breach within ten days after written request; (d) failure to timely and properly inspect and test, repair, or update your System, or replace defective or discontinued components or equipment not covered under the Maintenance Program or which is an Excluded Item (subsection 36.9); (e) failure to timely and properly update the Protocol for the Premises; (f) failure to upgrade a Communication Pathway when recommended to do so; or (g) a Bankruptcy Event occurs. If you Default, we may immediately discontinue all work or services, including monitoring, Service and Repair, and Maintenance Program, and accelerate and recover all amounts due under this Agreement for Managed Service Fees and all other sums to which we are entitled, including any other remedy provided by law. If any payment due is more than five days late, you will pay simple interest on each past due payment in the amount of 18% per year calculated on a 360-day year (periodic rate of
1.5% per month or the maximum amount allowed by law) until the balance is paid in full.
26.2 Removal. If you Default, you must also allow us to enter the Premises and remove all or any portion of your System. Removal of the System, in whole or in part, is without prejudice to the collection of all sums due under this Agreement. All remedies are cumulative to the maximum extent allowed by law. If the System is removed for any reason, we are not obligated to restore the Premises to its original condition or to redecorate the Premises. We may also abandon, in whole or in part, the System or any of its components. Until the System is removed from your Premises by us, you remain solely responsible for the System’s safekeeping and protection unless we elect to abandon the System. If all or any portion of the System is not or cannot be
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
removed by us, or we are prevented from removing the System, you must pay us a sum equal to the price charged to you by us for each piece of equipment, component, or part not returned to us or not returned in good working order.
27. Nonsolicit. To the maximum extent permitted by law, you shall not solicit or hire an employee who performed services for you, either directly or indirectly, for employment by you or on your behalf by you or any other entity to perform services substantially similar to the services provided under this Agreement during the Term or for a period of one year after the employee’s separation from us. If you wish to hire an employee of ours who has performed services for you within the time frames above, you agree that it is reasonable for you to be required to pay us the sum of $20,000 per employee immediately as damages and not as penalty to protect our legitimate business interest and which reflects the reasonable value of employee training, education, and cost of replacement.
28. Information and Privacy; Collection, Use, and Disclosure of Personal Information; Recording; Consent.
28.1 Privacy. By using our services, you acknowledge and agree that our collection, use, and disclosure of Personal Information is governed by our Privacy Policy, as it may be amended from time to time. If there is a conflict between the terms of this Section 29 and the terms of our Privacy Policy, the terms of our Privacy Policy will control. You can review our Privacy Policy by visiting www.netwatchusa.com. Each party shall maintain appropriate technical and organizational measures to secure all personal information in accordance with the California Consumer Privacy Act (or its successor legislation, the California Privacy Rights Act) (“CCPA”), where applicable, and any other applicable data protection laws, rules, or regulations (collectively, “Data Protection Laws”). With respect to California residents or households and any personal information of consumers as defined by CCPA or as defined in other applicable Data Protection Laws (“PI”), each party agrees as follows:
(A) To the extent we are a “service provider” as defined by CCPA, we shall comply with any required CCPA obligations, and we shall not, except as otherwise permitted by applicable Data Protection Laws, collect, sell, or use PI except as necessary to perform the business purpose of the services provided to such consumer or otherwise to fulfill our obligations under this Agreement to provide the services to the applicable consumer, and shall not otherwise retain, use, or disclose PI for any other purpose; (B) Each party shall implement technical and organizational measures to protect PI in their respective control and possession in compliance with applicable Data Protection Laws;
(C) To the extent applicable, you are solely responsible for safeguarding all PI which you collect or transmit to us for processing. You shall immediately defend and indemnify us against all claims arising out of or relating to your failure to apply and maintain (i) reasonable data protection measures as required by applicable Data Protection Laws; (ii) such data security standards that we may implement and update from time to time, with or without notice; or (iii) any other obligations required by applicable Data Protection Laws; and (D) The parties shall cooperate with each other in responding to any unauthorized disclosure, access, deletion, or alteration of PI, or any data subject request or supervisory authority inquiry to ensure compliance with applicable Data Protection Laws. The parties shall notify each other of any unauthorized access, loss, deletion, or use of PI without undue delay and in no event more than 60 hours of discovery.
28.2 Consent. We may monitor or electronically record video received from your System at your Premises, and conversations with you, emergency service providers, and law enforcement or fire department personnel in connection with the provision of services, employee training, or quality control. You consent to this. Privacy cannot be guaranteed on telephone, cable, wireless, computer, internet, or other systems. We are not liable to you for any claims or damages that may result from a lack of privacy experienced. You must immediately defend and indemnify us against all claims by you or a third party arising out of or relating to such lack of privacy. You consent to us (a) using information about your location or you to administer services, offer you new products or services, enforce the terms of this Agreement, prevent fraud, and respond to regulatory and legal requirements; (b) providing information or recordings about you or your Premises, including personal information about individuals employed by you or who visit your Premises, to law enforcement or fire service personnel, and our subcontractors or assignees for the purpose of providing services or in response to a subpoena, law enforcement or fire department request, or other legal process; and (c) using and sharing aggregate customer information and statistics that do not include information that identifies you or any individuals specifically. We may contact you by telephone, facsimile, email, text messages, or other internet facilities, with respect to the System or services we provide under this Agreement, and new system or service offerings that we may make available in the future.
29. Assignment; Rights of Subcontractors. We may sell, transfer, assign, or otherwise convey any or all of our rights, title, or interest (but none of our obligations) under this Agreement, in whole or in part, or extensions or renewals of this Agreement, to any person or entity without notice to you. In the event of such assignment by us, whether as security or otherwise, no breach or default by us shall excuse performance by you, and in the event of such breach or default by us, you may pursue any rights on account thereof solely against us and shall not assert against the Assignee any defense, counterclaim, or set-off which you may have against us. You must not assign your rights under or transfer this Agreement without our prior written consent, which may be granted, withheld, or conditioned in our sole discretion, and any attempted assignment is void. We may subcontract any of the work or services to be performed under this Agreement, including monitoring, without notice to you. This Agreement, including Sections 7 (Disclaimer), 8 (Limitation of Liability), and 31 (Indemnity) among others, protects our subcontractors, Monitoring Center, other service providers, vendors, or manufacturers in the same way that those Sections protect us. This Agreement shall be binding upon, and inure to the benefit of, the Parties and their respective successors and assigns.
30. Indemnification
30.1: General Indemnification: Vendor Provider agrees to defend, indemnify, protect, and hold harmless City, its agents, officers, boards and commissions, and employees (collectively, “City Indemnitees”) from and against any and all liability, claims, demands, damages, or costs, including but
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
not limited to attorneys’ fees, or payments for injury to any person or property (collectively, “Losses”), alleged to arise out of or result from any alleged acts, errors, or omissions of Vendor in connection with its performance under this Agreement. Vendor Provider’s responsibilities under this Section 32.1 include liability arising from, connected with, caused by, or claimed to be caused by the active or passive negligent acts or omissions of the City Indemnitees, which may be in combination with the acts or omissions of Vendor, its employees, agents or officers, or subconsultants; provided, however, that Vendor Provider’s duty to defend, indemnify, protect and hold harmless shall not include any Losses arising from the sole negligence or willful misconduct of the City Indemnitees.
30.2: Infringement Claims: Vendor Provider agrees to indemnify, defend, settle, or pay any third-party claim or action against any Client Party for infringement of any U.S. patent or copyright arising from City’s use in accordance with this Agreement of the System. If the System or any part of the System is held to infringe and the use thereof is enjoined or restrained or, if as a result of a settlement or compromise, such use is materially adversely restricted, Vendor Provider shall, at its own expense, either: (i) procure for City the right to continue to use the System; or (ii) modify the System to make it non-infringing, provided that such modification does not materially adversely affect City’s authorized use of the System; or (iii) replace the System with a functionally equivalent non-infringing program at no additional charge to City; or (iv) if none of the foregoing alternatives is reasonably available to Vendor Provider, terminate this Agreement and refund to City any prepaid but unearned fees paid to Vendor Provider.
30.3: Conduct of Defense: Notwithstanding Vendor Provider’s obligation to defend the City Indemnitees hereunder, City has the right to conduct the defense of the City Indemnitees and obtain reimbursement for reasonable costs of defense from Vendor Provider, if City chooses to do so.
Insurance.
31.1 Our Insurance. We, at our own expense, shall obtain and maintain, and at all times keep current, insurance in the amounts and types set forth below during the original or renewal Term of this Agreement:
(A) Worker’s Compensation: Minimum Statutory Limits
(B) Employer’s Liability: $1,000,000 per occurrence
(C) Comprehensive General Liability:
a. Bodily Injury: $1,000,000 per occurrence
b. Property Damage: $1,000,000 per occurrence
c. General Aggregate Limit: $2,000,000
(D) Automotive Liability:
a. Combined Single Limit: $1,000,000 per occurrence.
(E) Cyber Insurance
a. Aggregate Policy Limit of Liability: $1,000,000
31.2 Additional Insured. If you request, we will name you and the landlord, property manager, or owner of the Premises in which we will be providing installation, service or repair, maintenance, or testing and inspection under the Statement of Work as an additional insured under our general liability and automobile insurance policies with the coverage limits shown subsection 32.1 (Our Insurance). Notwithstanding the foregoing, the additional insured coverage to be provided shall be strictly limited to the amount of loss, property damage, injury, or death directly caused by and which occurs while our employees, subcontractors, or agents are on the Premises performing installation, repair, inspection, or other services, and that is caused by their acts or omissions. This provision does not apply to any other form of loss, property damage, injury, or death arising out of or relating to your System or our installation or services, and all other risk transfer provisions in this Agreement remain in full force.
31.3 Your Insurance. During the Term and at your own expense, you will always obtain and keep current commercial general liability, premises liability, or any other appropriate insurance with policy limits sufficient to cover all risk, loss, damage, injury, illness, or death arising out of or relating to your Premises, your property and data, and the property of third parties, including the full replacement cost of the System. You shall cause us to be named as an additional insured and loss payee for the full cost of the System and shall provide us with a current Certificate of Insurance and Additional Insured Endorsement reflecting our status as such. You will cause the proceeds of any insurance claim to be applied to the prompt replacement, repair, restoration, modification, or improvement of the System by us or to be paid to us. Any balance of the gross proceeds remaining after such work has been completed or reimbursement made to us can be paid to you.
32. Confidentiality.
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
32.1 Confidential Information. The confidential business information that the Parties obtain from one another under this Agreement is proprietary in nature and valuable, whether commercially or otherwise (“Confidential Information”). As used in this Agreement, “Confidential Information” means, with respect to a Party, all information and data, whether technical or non-technical, in any medium, provided to or made available directly or indirectly by one Party (the “Disclosing Party”) to the other (the “Receiving Party”) in connection with this Agreement, that includes: (a) information that is marked confidential, restricted, proprietary, or with a similar designation, or if not so designated, that the Receiving Party would reasonably be expected to assume is confidential due to its nature; (b) information obtained as a result of entering into or performing under this Agreement, the provisions of this Agreement, or the negotiations relating to this Agreement; (c) all information relating to each Purchase Order or SOW; (d) computer software and programs (including object code and source code), database technologies and systems (and related information technology); (e) all information concerning the operations, affairs, methods, transactions, and businesses of the Disclosing Party (including ideas, marketing plans, business plans or strategies, business volumes, usage, and data and other information that are trade secrets or are competitively sensitive), the financial information or affairs of the Party, pricing information, and the relations of the Party with its employees and service providers; (f) nonpublic personal information relating to either Parties’ customers; (g) the terms of and pricing under this Agreement; (h) any reports, memoranda, or other writings in any medium prepared by the Parties, or either of them, and containing Confidential Information; (i) research and development activities; (j) current and future product or service information; (k) all formulae, designs, specifications, prototypes, models, drawings, product innovations, product samples, and photographs; (l) the licensure, manufacture, publication, release, marketing, distribution, or promotion of any products or services; (m) machines and tools; (n) inventions; (o) manufacturing, processing techniques, and technical know-how, operational or otherwise; and (p) existing or potential suppliers or manufacturers, and those suppliers’ or manufacturers’ information.
32.2 No Rights Granted. Each Party’s Confidential Information shall be and remain the property of that Disclosing Party. Other than as expressly provided in this Agreement, nothing in this Agreement is intended to grant any rights or license (express or implied) of any type to the Receiving Party under any patent, copyright, trademark, trade secret, or other intellectual property right owned, applied for, or controlled by the Disclosing Party. The Disclosing Party retains all rights, title, and interest in the Confidential Information, including derivatives thereof, whether or not protected under state or federal patent, copyright, trademark, trade secret, or other intellectual property law.
32.3 Exceptions. Confidential Information excludes information that: (a) is or becomes publicly available through no wrongful act or omission of the Receiving Party; (b) is obtained by the Receiving Party from a third party without a breach of such third party’s confidentiality obligations; (c) was in the possession of the Receiving Party at the time of disclosure without any confidentiality obligations; (d) was independently developed by the Receiving Party or a third party without reference to Confidential Information; (e) at the time of receipt by the Receiving Party was already published or was otherwise generally available to the public; (f) subsequent to receipt by the Receiving Party is published or becomes generally available to the public other than through the Receiving Party’s default hereunder; (g) disclosed in accordance with a judicial or other governmental order; or (h) approved for release or is no longer treated as confidential or proprietary by the Disclosing Party.
32.4 Nondisclosure. The Parties will hold all Confidential Information provided in the strictest confidence and may not use the Confidential Information in any way detrimental to the Disclosing Party during the Term or the survival period as defined in subsection 37.5 (Survival). The Receiving Party shall protect the Disclosing Party’s Confidential Information against unauthorized use or disclosure using at least those measures that it takes to protect its own Confidential Information of a similar nature, but no less than reasonable care, and shall not use or disclose the Disclosing Party’s Confidential Information for any purpose except in connection with its performance of and obligations under this Agreement, which includes disclosure to vendors or third parties necessary to the Receiving Party’s performance, and no other purpose. Notwithstanding the foregoing, we may disclose confidential information to any supplier, Monitoring Center, manufacturer, or other service provider to the extent reasonably required to perform our duties under this Agreement.
32.5 Return of Confidential Information; Retention. The Parties shall not maintain any Confidential Information or other information provided under this Agreement in their possession after the termination of this Agreement. Upon request of the Disclosing Party or upon termination of this Agreement, or the applicable Purchase Order or SOW, all materials containing Confidential Information will be destroyed or returned to the Disclosing Party. Notwithstanding the above and subject to all the other provisions of this Agreement, each Party shall (a) be permitted to retain a copy of the Confidential Information to the extent required to comply with applicable law or regulatory authority, or written and established internal document retention policies; and (b) not be required to destroy, delete, or modify any backup tapes or other media in accordance with automated archival processes in the ordinary course of business as long as any such Confidential Information retained will remain subject to the terms and obligations of this Agreement for so long as such Confidential Information is retained.
32.6 Unauthorized Disclosure. If any unauthorized use or disclosure or loss of any Confidential Information of the Disclosing Party occurs, the Receiving Party shall promptly, at its own expense: (a) notify the Disclosing Party in writing; (b) take such actions as may be necessary or reasonably requested by the Disclosing Party to minimize the violation or the damage resulting therefrom; and (c) cooperate in all reasonable respects with the Disclosing Party to minimize the violation and any damage resulting therefrom.
32.7 Injunctive Relief. The Receiving Party acknowledges that any actual or threatened violation of this Section 33 may cause irreparable, non-monetary injury to the Disclosing Party, the extent of which may be difficult to ascertain, and therefore agrees that the Disclosing Party shall be entitled to seek injunctive relief in addition to all other remedies available at law or in equity.
32.8 Compelled Disclosure. Should the Receiving Party be compelled by court decree, subpoena, judicial order or process, governmental administrative process, legal proceedings, or other requirements of law to disclose any of the Confidential Information, it shall promptly notify the Disclosing Party in writing, and use reasonable good faith efforts to: (a) disclose only the specific Confidential Information legally required to be disclosed; and (b) reasonably assist the
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Disclosing Party (if and to the extent requested by the Disclosing Party) in obtaining a protective order or other appropriate assurances that the confidential nature of the Confidential Information shall be protected and preserved. The Disclosing Party is solely responsible to seek appropriate means to protect the confidentiality of its Confidential Information at its sole expense. Notwithstanding the absence of such means, if the Receiving Party is compelled by a court of law, arbitrator, governmental authority, or authority having jurisdiction to disclose Confidential Information, the Receiving Party may disclose the Confidential Information that is requested without liability to the Disclosing Party under this Agreement or otherwise.
33.Force Majeure. If performance of any terms under this Agreement or of any Purchase Order or SOW is delayed, hindered, prevented, or made more uneconomic, in whole or in part, because of compliance with any law, decree, request, executive order, or order of any authority having jurisdiction, or because of any act or event, whether foreseen or unforeseen (“Force Majeure Event”), the affected Party may, at its option, suspend performance during the period the cause or the aftermath of the cause continues, and the affected Party will have no liability arising out of or relating to the Force Majeure Event notwithstanding any other provision of this Agreement. The affected Party will use reasonable efforts to notify the other Party timely of the existence thereof, the expected delays, and the estimated effect upon its performance under this Agreement. This Section 34 will not require the settlement of strikes, lockouts, or other labor controversies to restore a Party’s ability to perform. Without limiting the generality of the definition of Force Majeure Event, the following acts or events are deemed to meet the requirements of this Section 34, whether foreseen or unforeseen: war; terrorist attack or activity; military action; insurrection; riots; public disturbances; cybersecurity incidents, threats, or attacks, including hacking, denial of service, data breaches, or other malicious attacks of any kind; acts of God; strikes; lockouts; labor disputes or differences with workers; fires; floods; storms; ice; earthquakes; drought; hurricane; typhoon; tornado; explosion; insufficient information; security regulations; quarantine; epidemic, pandemic, or health emergency; embargo; cessation of or disruption of capacity to manufacture; partial or whole failure of the supply chain; interruption, breakdown, or failure of transportation or transportation facilities; unavailability of raw materials, fuel, power, labor, or transportation facilities; interruption or unavailability of telephone, cable, radio, cellular, internet, satellite, or other transmission or communication services; other unforeseen event; or for any other similar or dissimilar reason or cause, regardless of origin, beyond the reasonable control of the affected Party, whether on an industry-wide, region-wide, nationwide, or worldwide basis. We are not liable for any delay in the installation, monitoring, repair, or the provision of any other services, or for the consequences of delay, or for any interruption of the System’s operation caused, in whole or in part, because of a Force Majeure Event. We are not required to provide installation, repair, monitoring, or any other services to you while any of these causes or the aftermath of these causes exist. If services are suspended for these reasons, you must continue to pay under the terms of this Agreement. If the Monitoring Center or your Premises or equipment are destroyed by fire or other catastrophe, are so substantially damaged that it is impractical to continue service, or if the Monitoring Center or we are unable to render service, this Agreement may be suspended without notice.
34.Notices. Except as expressly provided in this Agreement, all notices under this Agreement must be in writing. Notices are given on the date of service if served (a) personally by the Party giving notice directly to the receiving Party or (b) through a commercial messenger or courier service; (c) on the next Business Day after deposit with a nationally-recognized overnight courier service with all delivery charges provided; and (d) by electronic mail on the date of receipt of an electronic mail so long as such day is a Business Day (and if it is not, then on the next succeeding Business Day) and so long as the sender provides evidence of successful transmission on the same or next Business Day. A Party may change its address for purposes of this Section 35 by giving the other Party written notice of the new address in the manner set forth here. Except as otherwise expressly provided in this Agreement, notices are only effective if they comply with this Section 35, and are properly addressed as follows:
For Netwatch North America:
Neal Vanskiver
President
Netwatch North America
25341 Commercentre Drive, Suite 100
Lake Forest, CA 92630-8856
Email: [email protected]
For informational purposes only:
Phone: (866) 459-1414
For [Customer]:
Name
Title
Company
Address
Email:
For informational purposes only:
Phone:
With a mandatory copy to (which does not constitute
notice):
Lilianne G. Chaumont
Chaumont Law Inc.
6520 Platt Avenue, #553
West Hills, California 91307-3218
Email: [email protected]
For informational purposes only:
Phone: (818) 222-7345
With a mandatory copy to (which does not constitute
notice):
Name
Title
Company
Address
Email:
For informational purposes only:
Phone:
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
35.Definitions.
35.1 “Affiliates” means a Party’s parent companies (both direct and indirect), affiliates, subsidiaries, or divisions.
35.2 “Alarm Condition” means any condition occurring at the Premises which results in the System transmitting a signal to the Monitoring Center, which if received by the Monitoring Center, may or may not require a response by the Monitoring Center as contained in your Protocol.
35.3 “Agreement” means this Services Agreement and all valid amendments prepared in accordance with subsection 37.10 (Entire Agreement).
35.4 “Authority Having Jurisdiction” means all applicable federal, state, and local agencies or organizations, including building departments and fire departments, responsible for enforcing the requirements of a law, code, or standard, or for approving equipment, materials, an installation, or a procedure.
35.5 “Bankruptcy Event” means (a) a Party institutes or has instituted against it proceedings in bankruptcy; (b) dissolves, liquidates, or winds up its business; (c) assigns or attempts to assign its business assets for the benefit of creditors; (d) has a receiver appointed on account of its creditors over its assets, or if a receiver is appointed on account of its insolvency; (e) if its financial condition is such that the other Party, in its reasonable opinion, has concern about the other Party’s ability to fully meet its obligations under this Agreement; or (f) the other Party suspends, or threatens to suspend, or ceases or threatens to cease to carry on all or a substantial part of its business.
35.6 “Business Day” means any day other than a Saturday, Sunday, any day which is a Holiday, and any day designated in advance by us.
35.7 “Communication Pathway” means the various communication pathways used to carry a signal from the System to the Monitoring Center, including telephone, cellular, internet, or radio pathways.
35.8 “Effective Date” means the date we being monitoring signals from your premises..
35.9 “Excluded Items” means parts, components, or equipment not installed by us even if we connect to it; batteries; access control cards; fobs; hard drives; storage media; items for the protection of electrical devices against unsuitable current loads such as fuses; other disposable items; WiFi connectivity issues; service outside of normal business hours; any malfunction or damage caused by accident, misuse, or failure to follow our instructions; Force Majeure Events; birds, rodents, or other animals; changes in lighting conditions; relocation of parts, components, or equipment by anyone other than an authorized company representative; obsolete equipment; equipment or components which have exceeded the manufacturer’s useful life; obsolete or unsupported Communication Pathways; vandalism; theft of parts, components, or equipment; or any other System upgrades or changes requested by you.
35.10 “Finance Company” means any bank, leasing company, or financial institution providing funding for all or any part of the System on your Premises.
35.11 “Force Majeure Event” is defined in Section 34 (Force Majeure).
35.12 “Holiday” means New Year’s Day, Memorial Day, Independence Day, Labor Day, Thanksgiving Day, and Christmas Day and any other days designated by us.
35.13 “Installation Fee” means the nonrefundable amount payable to us by you upon your signing of this Agreement, plus any applicable taxes, for all installation, labor, equipment, or materials to be provided or installed under this Agreement and as contained in the Statement of Work.
35.14 “Internet Equipment” means the equipment necessary to establish a hardwired or wireless internet connection for the System at your Premises, including a modem, router, secure gateway, surge suppressor, Ethernet cables, or other components.
35.15 “ISP” means internet service provider that we select, and which will provide you with internet access for your System located on the Premises, and for no other purpose, during the Term.
35.16 “Maintenance Program” means the services contained in subsection 21.3 and the exclusions contained there.
35.17 “Managed Service Fee” means the monthly fees that are charged by us to you and payable by you to us, and billed on a quarterly basis (unless notified otherwise) in advance for the System and for all the Services to be rendered in connection with the System, plus all applicable federal, state, and local taxes.
36.18 “Monitoring Center” means our monitoring center or an independent monitoring center that we select, and which will handle signals, video, or images received from your System located on the Premises.
35.19 “Party” means us or you, and “Parties” means us and you.
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
35.20 “Premises” means your property or portion of your property where the System contained in the Statement of Work will be installed and where services will be provided.
35.21 “Protocol” means the Customer Protocol Form completed, approved, and signed by you, including any proper and valid amendments provided to us during the original or renewal Term of this Agreement.
35.22 “Services” means the services described in the Statement of Work, including proactive video monitoring; monitoring of System signals, video, or images; Service and Repair; Maintenance Program; and all other services which may be provided by us to you from time to time in the future as agreed in accordance with subsection 37.10 (Entire Agreement).
35.23 “Statement of Work” means the Statement of Work, and the Schedule of Equipment, Site Design, Schedule of Premises, Pricing Schedule, Customer Protocol Form, AutoPay Enrollment Form, and Change Order form, and all proper and valid amendments of these documents, all of which together are referred to collectively as the “Statement of Work”.
35.24 “System” means all equipment, components, wiring, and other materials contained in the Statement of Work to be installed and programmed, or reprogrammed at the Premises.
35.25 “Term” means the initial term of the Agreement together with any renewal term(s), including the Term of any Addendum to Master Services Agreement—Rental issued under this Agreement.
5“Year” means a period of 365 days from a defined date or, during a leap year, 366 days.
36.General Provisions.
36.1 Independent Contractor. The Parties intend that each Party is an independent contractor under this Agreement. Nothing in this Agreement or any attachment is inconsistent with that status. Each Party is solely responsible for its employees, subcontractors, and agents and for their respective benefits, contributions, and taxes, as applicable. Nothing contained in this Agreement creates or shall be deemed to create an employment, agency, joint venture, or partnership relationship between the Parties or any of their agents or employees, or any other legal arrangement that would impose liability upon one Party for the act or failure to act of the other Party. Neither Party shall have any express or implied power to enter into any contracts or commitments or to incur any liabilities in the name of, or on behalf of, the other Party, or to bind the other Party in any respect whatsoever.
36.2 Authorized Signatories. The Parties must immediately defend and indemnify each other from any claim, liability, attorney fees, or costs incurred, whether directly or indirectly, by reason of any breach or alleged breach of the following statements, whether or not any type of action is commenced:
(A) Each Party has full authority to enter into and execute this Agreement for itself and any other parties for which it enters this Agreement as agent; (B) Each Party has full authority to complete and execute all documents necessary to complete the transactions contemplated and provided for by this Agreement;
(C) The individual executing this Agreement on behalf of a Party is authorized to do so; (D) All legal requirements and formalities have been complied with in connection with entering into, with the signing of, and performance under this Agreement; and
(E) The signatories have full authority to make the representations and warranties contained in this Agreement on behalf of the entities for which they are signing.
36.3 Waiver. The waiver by one Party of the performance of any act or promise, or the time for performing any act or promise under this Agreement, does not invalidate this Agreement nor is it a waiver by that Party of any other act or promise, or the time for performing any other act or promise required by this Agreement. A waiver, to be effective, must be in writing only and signed by all Parties to this Agreement in accordance with subsection 37.10 (Entire Agreement).
36.4 Third Party Beneficiaries. This Agreement is not intended to confer any rights or remedies upon any other person or entity, and is for the exclusive benefit of the Parties, and not for any third party beneficiary. This Agreement does not give and must not be deemed to give any legal or equitable right, remedy, or claim to any other person or entity.
36.5 Survival. The Parties’ indemnities, promises, statements, and obligations under this Agreement, including Sections 7 (Disclaimer), 8 (Limitation of Liability), 30 (Rights of Contractors), and 31 (Indemnity), and subsections 37.7 (Jurisdiction) and 37.8 (Time to Bring Suit), survive the termination of this Agreement, and remain enforceable against the Party to be charged. Notwithstanding the foregoing sentence, the Parties’ obligations under Section 33 (Confidentiality) survive the termination of this Agreement for a period of 60 calendar months.
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
36.6 Governing Law. This Agreement shall be subject to and governed by the laws of the State of California, without regard to the conflicts of laws principles.
36.7 Jurisdiction; Venue; Jury Trial Waiver. You agree that we shall have the option to choose the venue and forum of any litigation, action or proceeding arising directly or indirectly from this Agreement, and you hereby consent that same may be heard in the Superior Court of the State of California, located in Orange County or in the U.S. District Court located in the Central District of California; provided, however, if you commence any litigation, action or proceeding against us, it shall only be in the Superior Court of the State of California, located in Orange County or the U.S. District Court for the Central District of California. The provisions of this Section are not exclusive insofar as we are concerned and does not prohibit us from commencing any necessary legal action or instituting any appropriate proceeding in any court of competent jurisdiction or venue. The mailing by certified or registered mail, return receipt requested, in accordance with Section 35 (Notice) of any process required by any such court constitutes valid and lawful service of process against a Party, without necessity for service by any other means provided by statute or rule of court. The Parties hereto EACH IRREVOCABLY WAIVE ANY RIGHT TO A TRIAL BY JURY of any claim, demand, action, cause of action, or proceeding arising out of or relating to this Agreement contemplated hereby or in any way connected with, or related to, or incidental to this Agreement, in each case whether now existing or hereafter arising, and irrespective of whether sounding in contract, tort, or otherwise. Each Party represents that it has reviewed this waiver and consent, and each knowingly and voluntarily waives its jury trial rights. If and to the extent that the foregoing waiver of the right to a jury trial is unenforceable for any reason in such forum, each Party hereby consents to the adjudication of all claims pursuant to judicial reference as provided in California Code of Civil Procedure Section 638. The reference proceedings shall be conducted pursuant to and in accordance with the provisions of California Code of Civil Procedure §§ 638 through 645.1, inclusive.
The private judge shall have the power, among others, to grant provisional relief, including without limitation, entering temporary restraining orders, issuing preliminary and permanent injunctions and appointing receivers. All such proceedings shall be closed to the public and confidential and all records relating thereto shall be permanently sealed. The proceeding before the private judge shall be conducted in the same manner as it would be before a court under the rules of evidence applicable to judicial proceedings. The Parties shall be entitled to discovery, which shall be conducted in the same manner as it would be before a court under the rules of discovery applicable to judicial proceedings. The Parties agree that the selected or appointed private judge shall have the power to decide all issues in the action or proceeding, whether of fact or of law, and shall report a statement of decision thereon pursuant to the California Code of Civil Procedure § 644(a). Nothing in this Section shall limit the right of any Party at any time to exercise self-help remedies, foreclose against Collateral, or obtain provisional remedies. The private judge shall also determine all issues relating to the applicability, interpretation, and enforceability of this Section. In the event of litigation, a copy of this agreement may be filed as a written consent to a trial by the court or to judicial reference under California Code of Civil Procedure Section 638 as provided herein.
36.8 Time to Bring Suit. Any action or other legal proceeding arising out of or relating to this Agreement, whether based upon contract, tort, negligence, or otherwise, must be brought no later than one year or no later than the shortest time allowed by law from the date of the event which caused the loss, injury, illness, death, or damage, or be forever barred.
36.9 Attorney Fees. In any action arising out of or relating to this Agreement, the prevailing party will be entitled to recover its reasonable attorney fees, court costs, expert and consulting fees, and other expenses incurred in that action, in addition to any other relief to which it may be entitled.
67.10 Entire Agreement. This Agreement, including the Statement of Work, is the final and exclusive expression of the entire agreement between the Parties, and may be different than or conflict with previous discussions, documents, or proposals. If there is any conflict between this Agreement and the Statement of Work, this Agreement governs. All terms inconsistent with this Agreement are void, including those implied by law, trade custom or practice, or course of dealing. No other agreements, covenants, representations, or warranties, express or implied, oral or written, have been made by any Party to any other Party with respect to the subject matter of this Agreement. All prior or contemporaneous conversations or negotiations are not relied upon and are waived, merged into, and superseded by this Agreement. The Parties intend that this Agreement supersedes and replaces all prior oral or written agreements, past practices, discussions, and understandings. This is an integrated agreement. This Agreement may be modified only by an agreement in writing which specifically identifies this Agreement; the number and heading of the Section or subsection being amended; states an express intent to amend this Agreement; and is signed by an individual who holds a Vice President or higher position with a Party. No exceptions to this requirement exist. Any oral modification of this Agreement is void. Nothing else, including detrimental reliance, conduct, or alleged oral agreements, can modify this Agreement. Any prior, contemporaneous, or subsequent agreement, representation, or warranty, oral or written, made by a Party and which is not expressly contained in this Agreement is not binding upon the Parties to this Agreement.
36.11 Construction. Headings are for convenience and must not be used in construing the meaning of this Agreement. Each term of this Agreement is contractual (except for the headings), and not merely a recital. This Agreement must not be construed for or against any Party based upon the contention that the Party in question was the source of the language or clause in issue, and all language used will be deemed to be the language jointly chosen by the Parties. Each term of this Agreement is a condition to be fully performed. The masculine, feminine, and neuter gender, and the singular and plural number, include the other whenever the context so indicates.
36.12 Severability. If any term of this Agreement or any part of any term is void or unenforceable, then such term or the void or unenforceable part of the term will be severed from this Agreement unless the deletion of such provision or provisions would result in such a material change as to cause the completion of these transactions to be unreasonable. Every other term of this Agreement remains in full force. The Parties must seek in good faith to replace any void or unenforceable term or covenant with a valid term or covenant, which most nearly and fairly approaches the effect of the void or unenforceable term or covenant and the intent of the Parties in entering into this Agreement.
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
36.13 Duplicates. This Agreement, any Purchase Order, and all documents arising out of or relating to this Agreement may be stored or reproduced by any means or process, including electronic or mechanical means. Any duplicate is admissible into evidence as the original in any action without regard to whether the original is in existence. If a Party signs this Agreement or any Purchase Order (whether in writing, by a computer-generated signature, or by a signature created, transmitted, received, applied, or stored by electronic means) and then transmits an electronic version of the signature, the receiving Party may rely upon the electronic signature as an originally-executed signature page without any change to this Agreement.
36.14 Counterparts. This Agreement may be executed in any number of counterparts. Each counterpart is deemed to be an original instrument, even though all the Parties’ signatures do not appear on the same page. Delivery of the executed Agreement by electronic means is equally as effective and binding as delivery of an originally-executed Agreement.
37. State Disclosures. CA: Upon completion of a security system installation, we will thoroughly instruct you on the proper use of the System. ***End of Terms of Agreement***
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
CUSTOMER PROTOCOL FORM
We will provide you with the required Customer Protocol Form before the System is commissioned. The Customer Protocol Form must be completed and returned to us before we will begin providing Services or Monitoring.
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
AUTOPAY ENROLLMENT FORM
Billing Information & ACH Authorization Form
Company Name ___________________________________________________________ Company Address ___________________________________________________________ Contact Name _______________________________________________________ Contact Title _______________________________________________________ Contact Phone ________ ______________________________________________ Invoicing Email _______________________________________________________
Routing Number Account Number
_________________________________ ___________________________________ Bank Name Name on Account
Please read and sign below.
You authorize Netwatch North America to automatically withdraw from the account referenced above the total amount due arising out of or related to the Master Services Agreement or any other charges agreed to in writing by the Parties. You acknowledge that you may cancel this request at any time by contacting Netwatch North America. You acknowledge that the amount due each quarter may vary based upon additional charges incurred during the billing cycle. You must notify us in writing of any changes in your account information at least seven days before the next billing date for your account with us. If you terminate the Services Agreement with us early, you authorize us to withdraw or charge the remaining balance of contract in accordance with the Terms of Agreement and exercise all other remedies that we may have. If the payment is rejected for any reason, you authorize us to electronically debit your bank account for the original amount of the transaction. You acknowledge that you are subject to a rejected item fee of $35 (or the maximum amount allowed by law) within five days of our notice to you.
Signature Date
_________________________________
Printed Name and Title
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
CHANGE ORDER
This Change Order to the Master Services Agreement—Rental, including all subsequently entered into schedules or addendums, is entered into on , 20 , by and between Netwatch North America, a California corporation (“we,” “us,” “our”) and _____________________________ (“you,” “your”). This Change Order is a part of your Master Services Agreement with us and dated __________________, 20__. All other terms of the Master Services Agreement that are not changed here remain in full force. Except as expressly provided, all capitalized terms have the same meaning as contained in the Terms of Agreement.
YOUR INFORMATION
Name on Account: ______________________________________________________________________________________ Contact Person: ________________________________________________________________________________________ Premises Address: ______________________________________________________________________________________ Billing Address (if different from above): ____________________________________________________________________ Phone: _____________________ Cell Phone: ___________________ Email: ______________________________________ Billing Email: ___________________________________
Owner (if different from above): ___________________________________________________________________________
1. Additional Services or Equipment. You requested us to provide the following additional equipment or services as described below or in accordance with the attached quote at the Premises for the cost indicated:
A. Equipment to be Changed or Added:
QUANTITY EQUIPMENT TYPE QUANTITY EQUIPMENT TYPE
Total cost of installation, including equipment and materials, under this Change Order: $ ____________ (does not include applicable sales tax) B. Services to be Changed or Added:
We will add the following services for the Premises:
Monitoring of Additional Equipment: $ ____________
(described above)
Dedicated Internet Service: $ ____________
C. Revised Managed Service Fees:
Revised Monthly Managed Service Fee: $ ____________
Revised Total Quarterly Managed Service Fee: $ ____________ Revised Quarterly Invoice Total: $ ____________ (does not include applicable sales tax)
2. Term. If you selected additional monthly Services, you understand that this Change Order runs concurrently with and automatically renews in accordance with your Master Services Agreement with us.
3. Limitation of Liability; Third Party Indemnification; Subrogation. You understand that the limitation of liability, third party indemnification, subrogation, and other protective provisions contained in the Terms of Agreement apply equally to the equipment, materials, or services that we will provide under this Change Order.
***Acceptance and Signatures Below***
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
[Signature Page for Change Order]
ACCEPTANCE
You read and understood this Change Order before signing it and the prices and terms in this Change Order are acceptable. You were advised that there are additional, different, or higher levels of protection and service available. The equipment, materials, or services provided here are based upon your specific request, approval, and cost considerations, for which you must hold us harmless. All terms on the other pages or attachments are a part of this Change Order.
NETWATCH NORTH AMERICA
Dated: _____ ____________________________________
Authorized Company Representative
____________________________________
Alarm Registration Number (if required)
YOU
Dated: _____ ____________________________________
Print Your Name / Title
Corporation LLC Partnership Sole Owner
Your Signature: ____________________________________
Unless we either (1) approve it in writing by an authorized company representative, or (2) begin installation or services, this Change Order is not binding upon us. If we do not approve the Change Order, our sole liability is to refund the amount paid to us when you signed the Change Order.
Not receiving a copy signed by us does not make this Change Order unenforceable. 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 1 of 7
ADDENDUM TO MASTER SERVICES AGREEMENT—RENTAL
This Addendum to the Master Services Agreement—Rental, including the Statement of Work, and all Schedules or attachments (collectively, “Addendum”), is dated October 11, 2024, by and between Netwatch North America, a California corporation (“we,” “us,” “our”) and city of Pico Rivera (“you,” “your”), a/an California [ ]corporation [ ] limited liability company [ ] limited partnership [ x ] other: municipality. This Addendum is a part of your Master Services Agreement with us. Except as expressly provided here, all Terms and other provisions of the Master Services Agreement that are not changed in this Addendum remain in full force, and all capitalized terms have the same meaning as contained in the Terms of the Master Services Agreement (“Agreement”).
YOUR INFORMATION
Name on Account: ____City of Pico Rivera – Pico Park________________________________________ Contact Person: _______Steve Carmona____________________________________________________________________ Premises Address: ____9528 Beverly Blvd. Pico Rivera, CA 90660_________________________________________________ Billing Address (if different from above): __6615 Passons Blvd. Pico Rivera, CA 90660________________________________ Phone: _____________________ Cell Phone: __562-801-4371______ Email: [email protected]_____________ Billing Email: [email protected]____________________________________________ Owner (if different from above): ___________________________________________________________________________
1. Addendum. This Addendum is comprised of the Statement of Work (as defined in subsection 36.23), and all proper and valid amendments of these documents, including change orders, which are all a part of this Addendum. No Purchase Order or other document presented by you will include any terms inconsistent with this Addendum, all terms inconsistent with this Addendum are void, and all such terms are rejected by us.
2. Additional Premises. The Premises covered by this Addendum are contained in the Schedule of Premises below. We will install or cause to be installed at the Premises contained on the Schedule of Premises (sometimes individually or collectively referred to as the “Premises”) the Systems contained in the Statement of Work (collectively, “System”). We will also connect your System to our Monitoring Center or an independent Monitoring Center that we select. The System remains our property at all times (see Section 6 (Title)).
3. Start Date. The approximate start date is ____TBA__, 20___, and the approximate completion date is _TBA_____, 20___. Receiving equipment at our offices so that System installation may begin or starting the installation of wiring at one of the Premises contained on the Schedule of Premises constitutes substantial commencement of the work to be performed under this Addendum. The estimated date work is to be substantially completed is not a definite completion date and time is not of the essence.
4. Statement of Work. We will provide the additional equipment or services described in the attached Statement of Work for the cost indicated at the Premises.
5. Acceptance. This Addendum must be accepted and signed by you within 30 days from the date in the preamble, or we may withdraw it and provide revised pricing.
6. Term. As used in this Addendum to the Master Services Agreement—Rental, the Term of this Addendum is 3 years from the Effective Date.
At the end of the initial 3-year term, the Agreement will automatically renew for an additional 5 years, but either Party may cancel this Agreement with 60 days’ written notice after the completion of the initial 3-year term. The Master Services Agreement—Rental is applicable to and remains in full force through and including the last day of the Term of this Addendum. During the Term of this Addendum, this Addendum cannot be terminated and your obligations contained here are absolute, unconditional, and irrevocable. After the System is programmed, we will test it for up to five days. We will notify you when we will begin monitoring of System signals, images, or video. Moving from, selling, or not using your Premises does not relieve you of your obligations under this Addendum. If your law-enforcement or fire department requires or later requires visual or other verification procedures of an emergency before responding to an intrusion or fire System signal, you must comply with the requirement and subscribe for that service if provided by us. We may charge an additional fee for that service. When this Addendum ends, you will immediately allow us to remove or deactivate, whether remotely or otherwise, the communicators. Until the communicator is deprogrammed and is no longer sending signals of any kind to the Monitoring Center, you are responsible for the Managed Service Fees for each of the Premises still sending signals and contained in the Pricing and Billing Terms below.
7. Limitation of Liability; Third Party Indemnification; Subrogation. You understand that the disclaimer (Section 7), limitation of liability (Section 8), other service providers (Section 30), third party indemnification (Section 31), subrogation (Section 31), and other protective provisions contained in the Terms of the Master Services Agreement apply equally to the Premises, equipment, materials, or services that we will provide under this Addendum to Master Services Agreement.
***Acceptance and Signatures Below***
ATTACHMENT A
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 2 of 7
[Signature Page for Addendum to Master Services Agreement—Rental]
ACCEPTANCE
You read and understood this Addendum to Master Services Agreement—Rental, including the Statement of Work and all Schedules or attachments, before signing it, and the prices and terms in this Addendum are acceptable. You understood and accepted this Addendum, including Sections 7, 8, 30, and 31, among others, which set forth our maximum liability if there is any loss, damage, illness, or injury to you or any third party. You may obtain a higher liability limit by paying an additional periodic charge. You were advised that there are additional, different, or higher levels of protection and service available. The System and services provided are based upon your specific request, approval, and cost considerations, for which you must hold us harmless. All provisions on the other pages or attachments are a part of this Addendum.
NETWATCH NORTH AMERICA
Dated: _____ ____________________________________
Authorized Company Representative
____________________________________
Alarm Registration Number (if required)
City of Pico Rivera
Dated: _____ ____________________________________
____________________________________
____________________________________
Unless we either (1) approve it in writing by an authorized company representative, or (2) begin installation or services, this Addendum to Master Services Agreement is not binding upon us. If we do not approve this Addendum, our sole liability is to refund the amount paid to us when you signed this Addendum. Not receiving a copy signed by us does not make this Addendum unenforceable. ***Statement of Work, and Pricing and Billing Terms follow*** 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 3 of 7
STATEMENT OF WORK
A. Premises to be added to Master Services Agreement under this Addendum: Please see Schedule of Premises.
B. System Description:
10 CAMERAS MONITORED for loitering and trespassing after hours INSTALL 7 Exterior 4mp
INSTALL 3 Exterior 2mp HANWHA Cameras
INSTALL 4 Exterior IP Speakers
INSTALL 1 Camect 60MP:1 audio Zone in MDF
INSTALL 1 HANWHA NVR Unit 30+ days recording
INSTALL 2 Ubiquiti Radios and 1 base station
C. Exclusions:
You or others are responsible for the work and the costs below, all of which are outside of this Statement of Work:
All civil work, including installation of any electrical poles. 120VAC to be provided by others if required.
All conduit or raceway work unless requested by you in writing in advance, and which will be subject to a fully-signed Change Order. A dedicated, operational broadband line complete with static IP address. Installation and maintenance of high-quality lighting to facilitate night-time monitoring and recording. Appointment of customer keyholder to provide us with emergency service access to Premises when necessary.
D. Fire Testing and Inspection or Other Services (if selected by you):
We will test and inspect your electronic fire system in accordance with the code, regulation, or guideline of the authority having jurisdiction of your Premises as follows: Quarterly Semiannually Annually Other: .
SCHEDULE OF EQUIPMENT
(1) Hanwha 12 TB WAVE NVR
(1) Netcelero Device with Client-supplied internet
(1) Camect 60mp Analytics Device
(7) Hanwha 4MP varifocal Cameras
(3) Hanwha 2MP varifocal Cameras
(4) Axis outdoor IP Speakers
(3) Ubiquiti Radio units
Network Switch(es) per plan
Patch Panel(s) as needed
Rack Hardware and Enclosures as needed.
SITE DESIGN
We approved the Site Design for each Premises, which was provided for our approval, and which is a part of this Addendum. 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 4 of 7
SCHEDULE OF PREMISES
The following Premises are covered by this Addendum:
Name of Premises Address Contact Person at
Premises
Contact Person Cell Contact Person Email
City of Pico Rivera
Pico Park
9528 Beverly
Boulevard Pico Rivera,
CA 90660
Steve Carmona 562-801-4371 scarmona@picorivera.org
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 5 of 7
PRICING AND BILLING TERMS— SYSTEM AND SERVICES
Installation Fee and Managed Service Fee for System:
Netwatch Installation Fee, if applicable: $ __11,750___ (nonrefundable) Monthly Managed Service Fee for the Term: $ __2,098____ (does not include applicable sales tax)
Term: 36 months from the effective date, the date in which we begin monitoring signals from your premises.
Billing Terms:
See Master Services Agreement, Terms of Agreement, Section 5 (Payments; Installation; Services).
CONSTRUCTION LENDER INFORMATION
Construction Lender: ________________________________________ Lender Contact: ___________________________________ Lender’s Address: _______________________________________________________________________________________________ Lender’s Phone:______________________ Fax: ________________________ Email: _______________________________________
BUILDING OWNER INFORMATION
Building Owner: ___________________________________________ Owner Contact: _____________________________________ Owner’s Address: ________________________________________________________________________________________________ Owner’s Phone:______________________ Fax: ________________________ Email: ________________________________________ 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 6 of 7
CUSTOMER PROTOCOL FORM
We will provide you with the required Customer Protocol Form before the System is commissioned. The Customer Protocol Form must be completed and returned to us before we will begin providing Services or Monitoring. 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 7 of 7
AUTOPAY ENROLLMENT FORM
Billing Information & ACH Authorization Form
Company Name ___________________________________________________________ Company Address ___________________________________________________________ Contact Name _______________________________________________________ Contact Title _______________________________________________________ Contact Phone ________ ______________________________________________ Invoicing Email _______________________________________________________ _____________________________ __ _____________________________________ Routing Number Account Number
_________________________________ _______________________ ____________ Bank Name Name on Account
Please read and sign below.
You authorize Netwatch North America to automatically withdraw from the account referenced above the total amount due arising out of or related to the Master Services Agreement or any other charges agreed to in writing by the Parties. You acknowledge that you may cancel this request at any time by contacting Netwatch North America. You acknowledge that the amount due each quarter may vary based upon additional charges incurred during the billing cycle. You must notify us in writing of any changes in your account information at least seven days before the next billing date for your account with us. If you terminate the Services Agreement with us early, you authorize us to withdraw or charge the remaining balance of contract in accordance with the Terms of Agreement and exercise all other remedies that we may have. If the payment is rejected for any reason, you authorize us to electronically debit your bank account for the original amount of the transaction. You acknowledge that you are subject to a rejected item fee of $35 (or the maximum amount allowed by law) within five days of our notice to you.
Signature Date
_________________________________
Printed Name and Title
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 1 of 8
ADDENDUM TO MASTER SERVICES AGREEMENT—RENTAL
This Addendum to the Master Services Agreement—Rental, including the Statement of Work, and all Schedules or attachments (collectively, “Addendum”), is dated October 11, 2024, by and between Netwatch North America, a California corporation (“we,” “us,” “our”) and city of Pico Rivera (“you,” “your”), a/an California [ ]corporation [ ] limited liability company [ ] limited partnership [ x ] other: municipality. This Addendum is a part of your Master Services Agreement with us. Except as expressly provided here, all Terms and other provisions of the Master Services Agreement that are not changed in this Addendum remain in full force, and all capitalized terms have the same meaning as contained in the Terms of the Master Services Agreement (“Agreement”).
YOUR INFORMATION
Name on Account: ____City of Pico Rivera – Public Works Yard________________________________________ Contact Person: _______Steve Carmona____________________________________________________________________ Premises Address: ____9633 Beverly Rd Pico Rivera, CA 90660_________________________________________________ Billing Address (if different from above): __6615 Passons Blvd. Pico Rivera, CA 90660________________________________ Phone: _____________________ Cell Phone: __562-801-4371______ Email: [email protected]_____________ Billing Email: [email protected]____________________________________________ Owner (if different from above): ___________________________________________________________________________
1. Addendum. This Addendum is comprised of the Statement of Work (as defined in subsection 36.23), and all proper and valid amendments of these documents, including change orders, which are all a part of this Addendum. No Purchase Order or other document presented by you will include any terms inconsistent with this Addendum, all terms inconsistent with this Addendum are void, and all such terms are rejected by us.
2. Additional Premises. The Premises covered by this Addendum are contained in the Schedule of Premises below. We will install or cause to be installed at the Premises contained on the Schedule of Premises (sometimes individually or collectively referred to as the “Premises”) the Systems contained in the Statement of Work (collectively, “System”). We will also connect your System to our Monitoring Center or an independent Monitoring Center that we select. The System remains our property at all times (see Section 6 (Title)).
3. Start Date. The approximate start date is ____TBA__, 20___, and the approximate completion date is _TBA_____, 20___. Receiving equipment at our offices so that System installation may begin or starting the installation of wiring at one of the Premises contained on the Schedule of Premises constitutes substantial commencement of the work to be performed under this Addendum. The estimated date work is to be substantially completed is not a definite completion date and time is not of the essence.
4. Statement of Work. We will provide the additional equipment or services described in the attached Statement of Work for the cost indicated at the Premises.
5. Acceptance. This Addendum must be accepted and signed by you within 30 days from the date in the preamble, or we may withdraw it and provide revised pricing.
6. Term. As used in this Addendum to the Master Services Agreement—Rental, the Term of this Addendum is 3 years from the Effective Date.
At the end of the initial 3-year term, the Agreement will automatically renew for an additional 5 years, but either Party may cancel this Agreement with 60 days’ written notice after the completion of the initial 3-year term. The Master Services Agreement—Rental is applicable to and remains in full force through and including the last day of the Term of this Addendum. During the Term of this Addendum, this Addendum cannot be terminated and your obligations contained here are absolute, unconditional, and irrevocable. After the System is programmed, we will test it for up to five days. We will notify you when we will begin monitoring of System signals, images, or video. Moving from, selling, or not using your Premises does not relieve you of your obligations under this Addendum. If your law-enforcement or fire department requires or later requires visual or other verification procedures of an emergency before responding to an intrusion or fire System signal, you must comply with the requirement and subscribe for that service if provided by us. We may charge an additional fee for that service. When this Addendum ends, you will immediately allow us to remove or deactivate, whether remotely or otherwise, the communicators. Until the communicator is deprogrammed and is no longer sending signals of any kind to the Monitoring Center, you are responsible for the Managed Service Fees for each of the Premises still sending signals and contained in the Pricing and Billing Terms below.
7. Limitation of Liability; Third Party Indemnification; Subrogation. You understand that the disclaimer (Section 7), limitation of liability (Section 8), other service providers (Section 30), third party indemnification (Section 31), subrogation (Section 31), and other protective provisions contained in the Terms of the Master Services Agreement apply equally to the Premises, equipment, materials, or services that we will provide under this Addendum to Master Services Agreement.
***Acceptance and Signatures Below***
ATTACHMENT B
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 2 of 8
[Signature Page for Addendum to Master Services Agreement—Rental]
ACCEPTANCE
You read and understood this Addendum to Master Services Agreement—Rental, including the Statement of Work and all Schedules or attachments, before signing it, and the prices and terms in this Addendum are acceptable. You understood and accepted this Addendum, including Sections 7, 8, 30, and 31, among others, which set forth our maximum liability if there is any loss, damage, illness, or injury to you or any third party. You may obtain a higher liability limit by paying an additional periodic charge. You were advised that there are additional, different, or higher levels of protection and service available. The System and services provided are based upon your specific request, approval, and cost considerations, for which you must hold us harmless. All provisions on the other pages or attachments are a part of this Addendum.
NETWATCH NORTH AMERICA
Dated: _____ ____________________________________
Authorized Company Representative
____________________________________
Alarm Registration Number (if required)
City of Pico Rivera
Dated: _____ ____________________________________
____________________________________
____________________________________
Unless we either (1) approve it in writing by an authorized company representative, or (2) begin installation or services, this Addendum to Master Services Agreement is not binding upon us. If we do not approve this Addendum, our sole liability is to refund the amount paid to us when you signed this Addendum. Not receiving a copy signed by us does not make this Addendum unenforceable. ***Statement of Work, and Pricing and Billing Terms follow*** 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 3 of 8
STATEMENT OF WORK
A. Premises to be added to Master Services Agreement under this Addendum: Please see Schedule of Premises.
B. System Description:
Monitor 8 camera sensors. for theft, loitering and trespassing after hours INSTALL (6) 4MP CAMERAS, (1) 6MP and (1) 8MP HANWHA CAMERAS per plan.
Install (1) Wave NVR in the MDF
Install (1) Camect 60MP in MDF
Install (6) IP outdoor speakers. 1 AUDIO ZONE
C. Exclusions:
You or others are responsible for the work and the costs below, all of which are outside of this Statement of Work:
All civil work, including installation of any electrical poles. 120VAC to be provided by others if required.
All conduit or raceway work unless requested by you in writing in advance, and which will be subject to a fully-signed Change Order. A dedicated, operational broadband line complete with static IP address. Installation and maintenance of high-quality lighting to facilitate night-time monitoring and recording. Appointment of customer keyholder to provide us with emergency service access to Premises when necessary.
D. Fire Testing and Inspection or Other Services (if selected by you):
We will test and inspect your electronic fire system in accordance with the code, regulation, or guideline of the authority having jurisdiction of your Premises as follows: Quarterly Semiannually Annually Other: .
SCHEDULE OF EQUIPMENT
(1) Hanwha 12 TB WAVE NVR
(1) Netcelero Device
(1) Camect 60mp Analytics Device
(6) Hanwha 4MP Varifocal Cameras
(1) Hanwha 6MP Varifocal Camera
(1) Hanwha 8MP Varifocal Camera
(6) Axis outdoor IP Speakers
Network Switch(es) per plan
Patch Panel(s) as needed
Rack Hardware and Enclosures as needed.
SITE DESIGN
We approved the Site Design for each Premises, which was provided for our approval, and which is a part of this Addendum. 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 4 of 8
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 5 of 8
SCHEDULE OF PREMISES
The following Premises are covered by this Addendum:
Name of Premises Address Contact Person at
Premises
Contact Person Cell Contact Person Email
City of Pico Rivera
Public Works Yard
6767 Parsons St. Pico
Rivera, CA 90660
Steve Carmona 562-801-4371 scarmona@picorivera.org
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 6 of 8
PRICING AND BILLING TERMS— SYSTEM AND SERVICES
Installation Fee and Managed Service Fee for System:
Netwatch Installation Fee, if applicable: $ __9,350___ (nonrefundable) Monthly Managed Service Fee for the Term: $ __1,696____ (does not include applicable sales tax)
Term: 36 months from the effective date, the date in which we begin monitoring signals from your premises.
Billing Terms:
See Master Services Agreement, Terms of Agreement, Section 5 (Payments; Installation; Services).
CONSTRUCTION LENDER INFORMATION
Construction Lender: ________________________________________ Lender Contact: ___________________________________ Lender’s Address: _______________________________________________________________________________________________ Lender’s Phone:______________________ Fax: ________________________ Email: _______________________________________
BUILDING OWNER INFORMATION
Building Owner: ___________________________________________ Owner Contact: _____________________________________ Owner’s Address: ________________________________________________________________________________________________ Owner’s Phone:______________________ Fax: ________________________ Email: ________________________________________ 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 7 of 8
CUSTOMER PROTOCOL FORM
We will provide you with the required Customer Protocol Form before the System is commissioned. The Customer Protocol Form must be completed and returned to us before we will begin providing Services or Monitoring. 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 8 of 8
AUTOPAY ENROLLMENT FORM
Billing Information & ACH Authorization Form
Company Name ___________________________________________________________ Company Address ___________________________________________________________ Contact Name _______________________________________________________ Contact Title _______________________________________________________ Contact Phone ________ ______________________________________________ Invoicing Email _______________________________________________________ _____________________________ __ _____________________________________ Routing Number Account Number
_________________________________ _______________________ ____________ Bank Name Name on Account
Please read and sign below.
You authorize Netwatch North America to automatically withdraw from the account referenced above the total amount due arising out of or related to the Master Services Agreement or any other charges agreed to in writing by the Parties. You acknowledge that you may cancel this request at any time by contacting Netwatch North America. You acknowledge that the amount due each quarter may vary based upon additional charges incurred during the billing cycle. You must notify us in writing of any changes in your account information at least seven days before the next billing date for your account with us. If you terminate the Services Agreement with us early, you authorize us to withdraw or charge the remaining balance of contract in accordance with the Terms of Agreement and exercise all other remedies that we may have. If the payment is rejected for any reason, you authorize us to electronically debit your bank account for the original amount of the transaction. You acknowledge that you are subject to a rejected item fee of $35 (or the maximum amount allowed by law) within five days of our notice to you.
Signature Date
_________________________________
Printed Name and Title
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 1 of 8
ADDENDUM TO MASTER SERVICES AGREEMENT—RENTAL
This Addendum to the Master Services Agreement—Rental, including the Statement of Work, and all Schedules or attachments (collectively, “Addendum”), is dated October 11, 2024, by and between Netwatch North America, a California corporation (“we,” “us,” “our”) and city of Pico Rivera (“you,” “your”), a/an California [ ]corporation [ ] limited liability company [ ] limited partnership [ x ] other: municipality. This Addendum is a part of your Master Services Agreement with us. Except as expressly provided here, all Terms and other provisions of the Master Services Agreement that are not changed in this Addendum remain in full force, and all capitalized terms have the same meaning as contained in the Terms of the Master Services Agreement (“Agreement”).
YOUR INFORMATION
Name on Account: ____City of Pico Rivera – Rivera Park Athletics & REACH________________________________________ Contact Person: _______Steve Carmona____________________________________________________________________ Premises Address: ____9530 Shade Lane Pico Rivera, CA 90660_________________________________________________ Billing Address (if different from above): __6615 Passons Blvd. Pico Rivera, CA 90660________________________________ Phone: _____________________ Cell Phone: __562-801-4371______ Email: [email protected]_____________ Billing Email: [email protected]____________________________________________ Owner (if different from above): ___________________________________________________________________________
1. Addendum. This Addendum is comprised of the Statement of Work (as defined in subsection 36.23), and all proper and valid amendments of these documents, including change orders, which are all a part of this Addendum. No Purchase Order or other document presented by you will include any terms inconsistent with this Addendum, all terms inconsistent with this Addendum are void, and all such terms are rejected by us.
2. Additional Premises. The Premises covered by this Addendum are contained in the Schedule of Premises below. We will install or cause to be installed at the Premises contained on the Schedule of Premises (sometimes individually or collectively referred to as the “Premises”) the Systems contained in the Statement of Work (collectively, “System”). We will also connect your System to our Monitoring Center or an independent Monitoring Center that we select. The System remains our property at all times (see Section 6 (Title)).
3. Start Date. The approximate start date is ____TBA__, 20___, and the approximate completion date is _TBA_____, 20___. Receiving equipment at our offices so that System installation may begin or starting the installation of wiring at one of the Premises contained on the Schedule of Premises constitutes substantial commencement of the work to be performed under this Addendum. The estimated date work is to be substantially completed is not a definite completion date and time is not of the essence.
4. Statement of Work. We will provide the additional equipment or services described in the attached Statement of Work for the cost indicated at the Premises.
5. Acceptance. This Addendum must be accepted and signed by you within 30 days from the date in the preamble, or we may withdraw it and provide revised pricing.
6. Term. As used in this Addendum to the Master Services Agreement—Rental, the Term of this Addendum is 3 years from the Effective Date.
At the end of the initial 3-year term, the Agreement will automatically renew for an additional 5 years, but either Party may cancel this Agreement with 60 days’ written notice after the completion of the initial 3-year term. The Master Services Agreement—Rental is applicable to and remains in full force through and including the last day of the Term of this Addendum. During the Term of this Addendum, this Addendum cannot be terminated and your obligations contained here are absolute, unconditional, and irrevocable. After the System is programmed, we will test it for up to five days. We will notify you when we will begin monitoring of System signals, images, or video. Moving from, selling, or not using your Premises does not relieve you of your obligations under this Addendum. If your law-enforcement or fire department requires or later requires visual or other verification procedures of an emergency before responding to an intrusion or fire System signal, you must comply with the requirement and subscribe for that service if provided by us. We may charge an additional fee for that service. When this Addendum ends, you will immediately allow us to remove or deactivate, whether remotely or otherwise, the communicators. Until the communicator is deprogrammed and is no longer sending signals of any kind to the Monitoring Center, you are responsible for the Managed Service Fees for each of the Premises still sending signals and contained in the Pricing and Billing Terms below.
7. Limitation of Liability; Third Party Indemnification; Subrogation. You understand that the disclaimer (Section 7), limitation of liability (Section 8), other service providers (Section 30), third party indemnification (Section 31), subrogation (Section 31), and other protective provisions contained in the Terms of the Master Services Agreement apply equally to the Premises, equipment, materials, or services that we will provide under this Addendum to Master Services Agreement.
***Acceptance and Signatures Below***
ATTACHMENT C
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 2 of 8
[Signature Page for Addendum to Master Services Agreement—Rental]
ACCEPTANCE
You read and understood this Addendum to Master Services Agreement—Rental, including the Statement of Work and all Schedules or attachments, before signing it, and the prices and terms in this Addendum are acceptable. You understood and accepted this Addendum, including Sections 7, 8, 30, and 31, among others, which set forth our maximum liability if there is any loss, damage, illness, or injury to you or any third party. You may obtain a higher liability limit by paying an additional periodic charge. You were advised that there are additional, different, or higher levels of protection and service available. The System and services provided are based upon your specific request, approval, and cost considerations, for which you must hold us harmless. All provisions on the other pages or attachments are a part of this Addendum.
NETWATCH NORTH AMERICA
Dated: _____ ____________________________________
Authorized Company Representative
____________________________________
Alarm Registration Number (if required)
City of Pico Rivera
Dated: _____ ____________________________________
____________________________________
____________________________________
Unless we either (1) approve it in writing by an authorized company representative, or (2) begin installation or services, this Addendum to Master Services Agreement is not binding upon us. If we do not approve this Addendum, our sole liability is to refund the amount paid to us when you signed this Addendum. Not receiving a copy signed by us does not make this Addendum unenforceable. ***Statement of Work, and Pricing and Billing Terms follow*** 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 3 of 8
STATEMENT OF WORK
A. Premises to be added to Master Services Agreement under this Addendum: Please see Schedule of Premises.
B. System Description:
Gym & Sports Buildings: 5 CAMERAS MONITORED for loitering and trespassing after hours INSTALL 3 Exterior 4mp & 2 Exterior 2mp HANWHA Cameras
INSTALL 3 Exterior IP Speakers
INSTALL 1 Camect 24MP:1 audio Zone
INSTALL 1 NVR Unit 30+ days recording
INSTALL 2 Ubiquiti Radios
Reach & Snack Buildings: 7 CAMERAS MONITORED for loitering and trespassing after hours INSTALL 4 Exterior 2mp & 3 Exterior 4mp HANWHA Cameras
INSTALL 4 Exterior Speakers: 1 Audio Zone
INSTALL 1 Camect Unit 60mp
INSTALL 1 NVR Unit 30+ days recording
INSTALL 2 Ubiquiti Radios
C. Exclusions:
You or others are responsible for the work and the costs below, all of which are outside of this Statement of Work:
All civil work, including installation of any electrical poles. 120VAC to be provided by others if required.
All conduit or raceway work unless requested by you in writing in advance, and which will be subject to a fully-signed Change Order. A dedicated, operational broadband line complete with static IP address. Installation and maintenance of high-quality lighting to facilitate night-time monitoring and recording. Appointment of customer keyholder to provide us with emergency service access to Premises when necessary.
D. Fire Testing and Inspection or Other Services (if selected by you):
We will test and inspect your electronic fire system in accordance with the code, regulation, or guideline of the authority having jurisdiction of your Premises as follows: Quarterly Semiannually Annually Other: .
SCHEDULE OF EQUIPMENT
(2) Hanwha 12 TB WAVE NVR
(2) Netcelero Devices with Client-supplied internet
(1) Camect 60mp Analytics Device + (2) Camect 24MP Analytics Devices (6) Hanwha 4MP varifocal Cameras
(6) Hanwha 2MP varifocal Cameras
(7) Axis outdoor IP Speakers
(4) Ubiquiti Radio units
Network Switch(es) per plan
Patch Panel(s) as needed
Rack Hardware and Enclosures as needed.
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 4 of 8
SITE DESIGN
We approved the Site Design for each Premises, which was provided for our approval, and which is a part of this Addendum. 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 5 of 8
SCHEDULE OF PREMISES
The following Premises are covered by this Addendum:
Name of Premises Address Contact Person at
Premises
Contact Person Cell Contact Person Email
City of Pico Rivera
Athletics & REACH
9530 Shade Lane Pico
Rivera, CA 90660
Steve Carmona 562-801-4371 scarmona@picorivera.org
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 6 of 8
PRICING AND BILLING TERMS— SYSTEM AND SERVICES
Installation Fee and Managed Service Fee for System:
Netwatch Installation Fee, if applicable: $ __8,175 + 8,100___ (nonrefundable) Monthly Managed Service Fee for the Term: $ __1,312 + 1,568____ (does not include applicable sales tax)
Term: 36 months from the effective date, the date in which we begin monitoring signals from your premises.
Billing Terms:
See Master Services Agreement, Terms of Agreement, Section 5 (Payments; Installation; Services).
CONSTRUCTION LENDER INFORMATION
Construction Lender: ________________________________________ Lender Contact: ___________________________________ Lender’s Address: _______________________________________________________________________________________________ Lender’s Phone:______________________ Fax: ________________________ Email: _______________________________________
BUILDING OWNER INFORMATION
Building Owner: ___________________________________________ Owner Contact: _____________________________________ Owner’s Address: ________________________________________________________________________________________________ Owner’s Phone:______________________ Fax: ________________________ Email: ________________________________________ 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 7 of 8
CUSTOMER PROTOCOL FORM
We will provide you with the required Customer Protocol Form before the System is commissioned. The Customer Protocol Form must be completed and returned to us before we will begin providing Services or Monitoring. 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 8 of 8
AUTOPAY ENROLLMENT FORM
Billing Information & ACH Authorization Form
Company Name ___________________________________________________________ Company Address ___________________________________________________________ Contact Name _______________________________________________________ Contact Title _______________________________________________________ Contact Phone ________ ______________________________________________ Invoicing Email _______________________________________________________ _____________________________ __ _____________________________________ Routing Number Account Number
_________________________________ _______________________ ____________ Bank Name Name on Account
Please read and sign below.
You authorize Netwatch North America to automatically withdraw from the account referenced above the total amount due arising out of or related to the Master Services Agreement or any other charges agreed to in writing by the Parties. You acknowledge that you may cancel this request at any time by contacting Netwatch North America. You acknowledge that the amount due each quarter may vary based upon additional charges incurred during the billing cycle. You must notify us in writing of any changes in your account information at least seven days before the next billing date for your account with us. If you terminate the Services Agreement with us early, you authorize us to withdraw or charge the remaining balance of contract in accordance with the Terms of Agreement and exercise all other remedies that we may have. If the payment is rejected for any reason, you authorize us to electronically debit your bank account for the original amount of the transaction. You acknowledge that you are subject to a rejected item fee of $35 (or the maximum amount allowed by law) within five days of our notice to you.
Signature Date
_________________________________
Printed Name and Title
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 1 of 7
ADDENDUM TO MASTER SERVICES AGREEMENT—RENTAL
This Addendum to the Master Services Agreement—Rental, including the Statement of Work, and all Schedules or attachments (collectively, “Addendum”), is dated October 11, 2024, by and between Netwatch North America, a California corporation (“we,” “us,” “our”) and city of Pico Rivera (“you,” “your”), a/an California [ ]corporation [ ] limited liability company [ ] limited partnership [ x ] other: municipality. This Addendum is a part of your Master Services Agreement with us. Except as expressly provided here, all Terms and other provisions of the Master Services Agreement that are not changed in this Addendum remain in full force, and all capitalized terms have the same meaning as contained in the Terms of the Master Services Agreement (“Agreement”).
YOUR INFORMATION
Name on Account: ____City of Pico Rivera – Senior Center________________________________________ Contact Person: _______Steve Carmona____________________________________________________________________ Premises Address: ____9200 Mines Ave. Pico Rivera, CA 90660_________________________________________________ Billing Address (if different from above): __6615 Passons Blvd. Pico Rivera, CA 90660________________________________ Phone: _____________________ Cell Phone: __562-801-4371______ Email: [email protected]_____________ Billing Email: [email protected]____________________________________________ Owner (if different from above): ___________________________________________________________________________
1. Addendum. This Addendum is comprised of the Statement of Work (as defined in subsection 36.23), and all proper and valid amendments of these documents, including change orders, which are all a part of this Addendum. No Purchase Order or other document presented by you will include any terms inconsistent with this Addendum, all terms inconsistent with this Addendum are void, and all such terms are rejected by us.
2. Additional Premises. The Premises covered by this Addendum are contained in the Schedule of Premises below. We will install or cause to be installed at the Premises contained on the Schedule of Premises (sometimes individually or collectively referred to as the “Premises”) the Systems contained in the Statement of Work (collectively, “System”). We will also connect your System to our Monitoring Center or an independent Monitoring Center that we select. The System remains our property at all times (see Section 6 (Title)).
3. Start Date. The approximate start date is ____TBA__, 20___, and the approximate completion date is _TBA_____, 20___. Receiving equipment at our offices so that System installation may begin or starting the installation of wiring at one of the Premises contained on the Schedule of Premises constitutes substantial commencement of the work to be performed under this Addendum. The estimated date work is to be substantially completed is not a definite completion date and time is not of the essence.
4. Statement of Work. We will provide the additional equipment or services described in the attached Statement of Work for the cost indicated at the Premises.
5. Acceptance. This Addendum must be accepted and signed by you within 30 days from the date in the preamble, or we may withdraw it and provide revised pricing.
6. Term. As used in this Addendum to the Master Services Agreement—Rental, the Term of this Addendum is 3 years from the Effective Date.
At the end of the initial 3-year term, the Agreement will automatically renew for an additional 5 years, but either Party may cancel this Agreement with 60 days’ written notice after the completion of the initial 3-year term. The Master Services Agreement—Rental is applicable to and remains in full force through and including the last day of the Term of this Addendum. During the Term of this Addendum, this Addendum cannot be terminated and your obligations contained here are absolute, unconditional, and irrevocable. After the System is programmed, we will test it for up to five days. We will notify you when we will begin monitoring of System signals, images, or video. Moving from, selling, or not using your Premises does not relieve you of your obligations under this Addendum. If your law-enforcement or fire department requires or later requires visual or other verification procedures of an emergency before responding to an intrusion or fire System signal, you must comply with the requirement and subscribe for that service if provided by us. We may charge an additional fee for that service. When this Addendum ends, you will immediately allow us to remove or deactivate, whether remotely or otherwise, the communicators. Until the communicator is deprogrammed and is no longer sending signals of any kind to the Monitoring Center, you are responsible for the Managed Service Fees for each of the Premises still sending signals and contained in the Pricing and Billing Terms below.
7. Limitation of Liability; Third Party Indemnification; Subrogation. You understand that the disclaimer (Section 7), limitation of liability (Section 8), other service providers (Section 30), third party indemnification (Section 31), subrogation (Section 31), and other protective provisions contained in the Terms of the Master Services Agreement apply equally to the Premises, equipment, materials, or services that we will provide under this Addendum to Master Services Agreement.
***Acceptance and Signatures Below***
ATTACHMENT D
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 2 of 7
[Signature Page for Addendum to Master Services Agreement—Rental]
ACCEPTANCE
You read and understood this Addendum to Master Services Agreement—Rental, including the Statement of Work and all Schedules or attachments, before signing it, and the prices and terms in this Addendum are acceptable. You understood and accepted this Addendum, including Sections 7, 8, 30, and 31, among others, which set forth our maximum liability if there is any loss, damage, illness, or injury to you or any third party. You may obtain a higher liability limit by paying an additional periodic charge. You were advised that there are additional, different, or higher levels of protection and service available. The System and services provided are based upon your specific request, approval, and cost considerations, for which you must hold us harmless. All provisions on the other pages or attachments are a part of this Addendum.
NETWATCH NORTH AMERICA
Dated: _____ ____________________________________
Authorized Company Representative
____________________________________
Alarm Registration Number (if required)
City of Pico Rivera
Dated: _____ ____________________________________
____________________________________
____________________________________
Unless we either (1) approve it in writing by an authorized company representative, or (2) begin installation or services, this Addendum to Master Services Agreement is not binding upon us. If we do not approve this Addendum, our sole liability is to refund the amount paid to us when you signed this Addendum. Not receiving a copy signed by us does not make this Addendum unenforceable. ***Statement of Work, and Pricing and Billing Terms follow*** 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 3 of 7
STATEMENT OF WORK
A. Premises to be added to Master Services Agreement under this Addendum: Please see Schedule of Premises.
B. System Description:
Monitor 5 camera sensors. for theft, loitering and trespassing after hours INSTALL (5) 4MP HANWHA CAMERAS per plan.
Install (1) Wave NVR in the MDF
Install (1) Camect 60MP in MDF
Install (4) IP outdoor speakers. 1 AUDIO ZONE
C. Exclusions:
You or others are responsible for the work and the costs below, all of which are outside of this Statement of Work:
All civil work, including installation of any electrical poles. 120VAC to be provided by others if required.
All conduit or raceway work unless requested by you in writing in advance, and which will be subject to a fully-signed Change Order. A dedicated, operational broadband line complete with static IP address. Installation and maintenance of high-quality lighting to facilitate night-time monitoring and recording. Appointment of customer keyholder to provide us with emergency service access to Premises when necessary.
D. Fire Testing and Inspection or Other Services (if selected by you):
We will test and inspect your electronic fire system in accordance with the code, regulation, or guideline of the authority having jurisdiction of your Premises as follows: Quarterly Semiannually Annually Other: .
SCHEDULE OF EQUIPMENT
(1) Hanwha 12 TB WAVE NVR
(1) Netcelero Device
(1) Camect 60mp Analytics Device
(5) Hanwha 4MP Varifocal Cameras
(4) Axis outdoor IP Speakers
Network Switch(es) per plan
Patch Panel(s) as needed
Rack Hardware and Enclosures as needed.
SITE DESIGN
We approved the Site Design for each Premises, which was provided for our approval, and which is a part of this Addendum. 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 4 of 7
SCHEDULE OF PREMISES
The following Premises are covered by this Addendum:
Name of Premises Address Contact Person at
Premises
Contact Person Cell Contact Person Email
City of Pico Rivera
Senior Center
9200 Mines Ave. Pico
Rivera, CA 90660
Steve Carmona 562-801-4371 scarmona@picorivera.org
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 5 of 7
PRICING AND BILLING TERMS— SYSTEM AND SERVICES
Installation Fee and Managed Service Fee for System:
Netwatch Installation Fee, if applicable: $ __6,350___ (nonrefundable) Monthly Managed Service Fee for the Term: $ __1,312____ (does not include applicable sales tax)
Term: 36 months from the effective date, the date in which we begin monitoring signals from your premises.
Billing Terms:
See Master Services Agreement, Terms of Agreement, Section 5 (Payments; Installation; Services).
CONSTRUCTION LENDER INFORMATION
Construction Lender: ________________________________________ Lender Contact: ___________________________________ Lender’s Address: _______________________________________________________________________________________________ Lender’s Phone:______________________ Fax: ________________________ Email: _______________________________________
BUILDING OWNER INFORMATION
Building Owner: ___________________________________________ Owner Contact: _____________________________________ Owner’s Address: ________________________________________________________________________________________________ Owner’s Phone:______________________ Fax: ________________________ Email: ________________________________________ 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 6 of 7
CUSTOMER PROTOCOL FORM
We will provide you with the required Customer Protocol Form before the System is commissioned. The Customer Protocol Form must be completed and returned to us before we will begin providing Services or Monitoring. 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 7 of 7
AUTOPAY ENROLLMENT FORM
Billing Information & ACH Authorization Form
Company Name ___________________________________________________________ Company Address ___________________________________________________________ Contact Name _______________________________________________________ Contact Title _______________________________________________________ Contact Phone ________ ______________________________________________ Invoicing Email _______________________________________________________ _____________________________ __ _____________________________________ Routing Number Account Number
_________________________________ _______________________ ____________ Bank Name Name on Account
Please read and sign below.
You authorize Netwatch North America to automatically withdraw from the account referenced above the total amount due arising out of or related to the Master Services Agreement or any other charges agreed to in writing by the Parties. You acknowledge that you may cancel this request at any time by contacting Netwatch North America. You acknowledge that the amount due each quarter may vary based upon additional charges incurred during the billing cycle. You must notify us in writing of any changes in your account information at least seven days before the next billing date for your account with us. If you terminate the Services Agreement with us early, you authorize us to withdraw or charge the remaining balance of contract in accordance with the Terms of Agreement and exercise all other remedies that we may have. If the payment is rejected for any reason, you authorize us to electronically debit your bank account for the original amount of the transaction. You acknowledge that you are subject to a rejected item fee of $35 (or the maximum amount allowed by law) within five days of our notice to you.
Signature Date
_________________________________
Printed Name and Title
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 1 of 7
ADDENDUM TO MASTER SERVICES AGREEMENT—RENTAL
This Addendum to the Master Services Agreement—Rental, including the Statement of Work, and all Schedules or attachments (collectively, “Addendum”), is dated October 11, 2024, by and between Netwatch North America, a California corporation (“we,” “us,” “our”) and city of Pico Rivera (“you,” “your”), a/an California [ ]corporation [ ] limited liability company [ ] limited partnership [ x ] other: municipality. This Addendum is a part of your Master Services Agreement with us. Except as expressly provided here, all Terms and other provisions of the Master Services Agreement that are not changed in this Addendum remain in full force, and all capitalized terms have the same meaning as contained in the Terms of the Master Services Agreement (“Agreement”).
YOUR INFORMATION
Name on Account: ____City of Pico Rivera – Smith Park________________________________________ Contact Person: _______Steve Carmona____________________________________________________________________ Premises Address: ____6016 Rosemead Blvd. Pico Rivera, CA 90660_________________________________________________ Billing Address (if different from above): __6615 Passons Blvd. Pico Rivera, CA 90660________________________________ Phone: _____________________ Cell Phone: __562-801-4371______ Email: [email protected]_____________ Billing Email: [email protected]____________________________________________ Owner (if different from above): ___________________________________________________________________________
1. Addendum. This Addendum is comprised of the Statement of Work (as defined in subsection 36.23), and all proper and valid amendments of these documents, including change orders, which are all a part of this Addendum. No Purchase Order or other document presented by you will include any terms inconsistent with this Addendum, all terms inconsistent with this Addendum are void, and all such terms are rejected by us.
2. Additional Premises. The Premises covered by this Addendum are contained in the Schedule of Premises below. We will install or cause to be installed at the Premises contained on the Schedule of Premises (sometimes individually or collectively referred to as the “Premises”) the Systems contained in the Statement of Work (collectively, “System”). We will also connect your System to our Monitoring Center or an independent Monitoring Center that we select. The System remains our property at all times (see Section 6 (Title)).
3. Start Date. The approximate start date is ____TBA__, 20___, and the approximate completion date is _TBA_____, 20___. Receiving equipment at our offices so that System installation may begin or starting the installation of wiring at one of the Premises contained on the Schedule of Premises constitutes substantial commencement of the work to be performed under this Addendum. The estimated date work is to be substantially completed is not a definite completion date and time is not of the essence.
4. Statement of Work. We will provide the additional equipment or services described in the attached Statement of Work for the cost indicated at the Premises.
5. Acceptance. This Addendum must be accepted and signed by you within 30 days from the date in the preamble, or we may withdraw it and provide revised pricing.
6. Term. As used in this Addendum to the Master Services Agreement—Rental, the Term of this Addendum is 3 years from the Effective Date.
At the end of the initial 3-year term, the Agreement will automatically renew for an additional 5 years, but either Party may cancel this Agreement with 60 days’ written notice after the completion of the initial 3-year term. The Master Services Agreement—Rental is applicable to and remains in full force through and including the last day of the Term of this Addendum. During the Term of this Addendum, this Addendum cannot be terminated and your obligations contained here are absolute, unconditional, and irrevocable. After the System is programmed, we will test it for up to five days. We will notify you when we will begin monitoring of System signals, images, or video. Moving from, selling, or not using your Premises does not relieve you of your obligations under this Addendum. If your law-enforcement or fire department requires or later requires visual or other verification procedures of an emergency before responding to an intrusion or fire System signal, you must comply with the requirement and subscribe for that service if provided by us. We may charge an additional fee for that service. When this Addendum ends, you will immediately allow us to remove or deactivate, whether remotely or otherwise, the communicators. Until the communicator is deprogrammed and is no longer sending signals of any kind to the Monitoring Center, you are responsible for the Managed Service Fees for each of the Premises still sending signals and contained in the Pricing and Billing Terms below.
7. Limitation of Liability; Third Party Indemnification; Subrogation. You understand that the disclaimer (Section 7), limitation of liability (Section 8), other service providers (Section 30), third party indemnification (Section 31), subrogation (Section 31), and other protective provisions contained in the Terms of the Master Services Agreement apply equally to the Premises, equipment, materials, or services that we will provide under this Addendum to Master Services Agreement.
***Acceptance and Signatures Below***
ATTACHMENT E
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 2 of 7
[Signature Page for Addendum to Master Services Agreement—Rental]
ACCEPTANCE
You read and understood this Addendum to Master Services Agreement—Rental, including the Statement of Work and all Schedules or attachments, before signing it, and the prices and terms in this Addendum are acceptable. You understood and accepted this Addendum, including Sections 7, 8, 30, and 31, among others, which set forth our maximum liability if there is any loss, damage, illness, or injury to you or any third party. You may obtain a higher liability limit by paying an additional periodic charge. You were advised that there are additional, different, or higher levels of protection and service available. The System and services provided are based upon your specific request, approval, and cost considerations, for which you must hold us harmless. All provisions on the other pages or attachments are a part of this Addendum.
NETWATCH NORTH AMERICA
Dated: _____ ____________________________________
Authorized Company Representative
____________________________________
Alarm Registration Number (if required)
City of Pico Rivera
Dated: _____ ____________________________________
____________________________________
____________________________________
Unless we either (1) approve it in writing by an authorized company representative, or (2) begin installation or services, this Addendum to Master Services Agreement is not binding upon us. If we do not approve this Addendum, our sole liability is to refund the amount paid to us when you signed this Addendum. Not receiving a copy signed by us does not make this Addendum unenforceable. ***Statement of Work, and Pricing and Billing Terms follow*** 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 3 of 7
STATEMENT OF WORK
A. Premises to be added to Master Services Agreement under this Addendum: Please see Schedule of Premises.
B. System Description:
Monitor 16 camera sensors. for loitering and trespassing after hours INSTALL (5) 2X5MP MINIDOMES and (6) 5MP HANWHA VANDAL DOMES per plan.
Install (2) cradlepoints in IDF’s as shown plus 4G aircard plus (1) cradlepoint on CUSTOMER-PROVIDED HIGH SPEED INTERNET IN MDF main building
INSTALL (3) 12 TB Wave NVR’s. (1) for the MDF and (1) for each of two IDF’s.
Install (1) Camect 60MP in MDF and (1) 24MP Camects for each of two IDF’s.
Install 8 IP outdoor speakers.
Install 4 Ubiquiti Radio stations and 3 base stations.
C. Exclusions:
You or others are responsible for the work and the costs below, all of which are outside of this Statement of Work:
All civil work, including installation of any electrical poles. 120VAC to be provided by others if required.
All conduit or raceway work unless requested by you in writing in advance, and which will be subject to a fully-signed Change Order. A dedicated, operational broadband line complete with static IP address. Installation and maintenance of high-quality lighting to facilitate night-time monitoring and recording. Appointment of customer keyholder to provide us with emergency service access to Premises when necessary.
D. Fire Testing and Inspection or Other Services (if selected by you):
We will test and inspect your electronic fire system in accordance with the code, regulation, or guideline of the authority having jurisdiction of your Premises as follows: Quarterly Semiannually Annually Other: .
SCHEDULE OF EQUIPMENT
(3) Hanwha 12 TB WAVE NVR
(1) Cradlepoint + (2) Cradlepoint Devices with Cellular Internet (1) Camect 60mp Analytics Device + (2) Camect 24MP Analytics Devices (5) Hanwha 2x5MP fixed sensor Cameras
(6) Hanwha 5MP varifocal Cameras
(8) Axis outdoor IP Speakers
(7) Ubiquiti Radio units
Network Switch(es) per plan
Patch Panel(s) as needed
Rack Hardware and Enclosures as needed.
SITE DESIGN
We approved the Site Design for each Premises, which was provided for our approval, and which is a part of this Addendum. 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 4 of 7
SCHEDULE OF PREMISES
The following Premises are covered by this Addendum:
Name of Premises Address Contact Person at
Premises
Contact Person Cell Contact Person Email
City of Pico Rivera
Smith Park
6016 Rosemead Blvd.
Pico Rivera, CA 90660
Steve Carmona 562-801-4371 scarmona@picorivera.org
25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 5 of 7
PRICING AND BILLING TERMS— SYSTEM AND SERVICES
Installation Fee and Managed Service Fee for System:
Netwatch Installation Fee, if applicable: $ __19,750___ (nonrefundable) Monthly Managed Service Fee for the Term: $ __2,662____ (does not include applicable sales tax)
Term: 36 months from the effective date, the date in which we begin monitoring signals from your premises.
Billing Terms:
See Master Services Agreement, Terms of Agreement, Section 5 (Payments; Installation; Services).
CONSTRUCTION LENDER INFORMATION
Construction Lender: ________________________________________ Lender Contact: ___________________________________ Lender’s Address: _______________________________________________________________________________________________ Lender’s Phone:______________________ Fax: ________________________ Email: _______________________________________
BUILDING OWNER INFORMATION
Building Owner: ___________________________________________ Owner Contact: _____________________________________ Owner’s Address: ________________________________________________________________________________________________ Owner’s Phone:______________________ Fax: ________________________ Email: ________________________________________ 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 6 of 7
CUSTOMER PROTOCOL FORM
We will provide you with the required Customer Protocol Form before the System is commissioned. The Customer Protocol Form must be completed and returned to us before we will begin providing Services or Monitoring. 25341 Commercentre Drive, Suite 100
Lake Forest, California 92630-8856
Addendum to Master Services Agreement Page 7 of 7
AUTOPAY ENROLLMENT FORM
Billing Information & ACH Authorization Form
Company Name ___________________________________________________________ Company Address ___________________________________________________________ Contact Name _______________________________________________________ Contact Title _______________________________________________________ Contact Phone ________ ______________________________________________ Invoicing Email _______________________________________________________ _____________________________ __ _____________________________________ Routing Number Account Number
_________________________________ _______________________ ____________ Bank Name Name on Account
Please read and sign below.
You authorize Netwatch North America to automatically withdraw from the account referenced above the total amount due arising out of or related to the Master Services Agreement or any other charges agreed to in writing by the Parties. You acknowledge that you may cancel this request at any time by contacting Netwatch North America. You acknowledge that the amount due each quarter may vary based upon additional charges incurred during the billing cycle. You must notify us in writing of any changes in your account information at least seven days before the next billing date for your account with us. If you terminate the Services Agreement with us early, you authorize us to withdraw or charge the remaining balance of contract in accordance with the Terms of Agreement and exercise all other remedies that we may have. If the payment is rejected for any reason, you authorize us to electronically debit your bank account for the original amount of the transaction. You acknowledge that you are subject to a rejected item fee of $35 (or the maximum amount allowed by law) within five days of our notice to you.
Signature Date
_________________________________
Printed Name and Title
To: Mayor and City Council
From: City Manager
Meeting Date: October 22, 2024
Subject: GOLF COURSE FIRE DAMAGE REPAIR PROJECT (CIP
NO. F21345) – AMEND PROJECT BUDGET AND APPROVE
CONSTRUCTION CHANGE ORDER NO. 3
Recommendation:
1. Approve Change Order No. 3 for the Golf Course Fire Damage Repair, CIP No.
F21345 (Project), in the amount of $42,649 for a new not-to-exceed construction amount of $741,201;
2. Authorize the City Manager or his designee to execute Change Order No. 3 for the Project; and
3. Approve an additional appropriation of $42,650 from Fund 100 (General Fund) Undesignated Fund Balance GL Account No. 100.98.9800-56900 (Transfer Out) transferring to Fund 570 (Golf Course) GL Account No. 570.00.0000-47900 (Transfer In) and appropriate to GL Account No. 570.16.1620-54500-F21345 (Contracted Services).
Fiscal Impact:
The Change Order No. 3 cost of the additional structural beam in the amount of $42,649 is not eligible for insurance reimbursement and will need funding from the Fund 100 (General Fund) Undesignated Fund Balance GL Account No. 100.98.9800-56900 (Transfer Out) to Fund 570 (Golf Course) GL Account No. 570.00.0000-47900 (Transfer In). Additionally, appropriate these funds to the Golf Course Fire Damage Repair Project (CIP No. F21345) GL Account No. 570.16.1620-54500-F21345 (Contracted Services).
Discussion:
On February 7, 2023, the Pico Rivera Golf Couse experienced a fire that damaged a portion of the clubhouse facility.
12 CITY COUNCIL AGENDA REPORT – MEETING OF OCTOBER 22, 2024 GOLF COURSE FIRE DAMAGE REPAIR PROJECT (CIP NO. F21345) - AMEND PROJECT BUDGET AND APPROVE CONSTRUCTION CHANGE ORDER NO. 3