SOUTH GATE CITY COUNCIL
REGULAR MEETING AGENDA
Tuesday, April
9, 2024 at
6:30 p.m.
SOUTH GATE COUNCIL CHAMBERS
8650 CALIFORNIA AVE
SOUTH GATE, CA 90280
VIEW MEETING LIVE ONLINE AT:
HTTPS://YOUTUBE.COM/@SOUTHGATECA90280
City Officials
MAYOR,
Gil Hurtado
CITY CLERK,
Yodit Glaze
VICE MAYOR,
Maria Davila
CITY TREASURER,
Jose De La Paz
COUNCIL MEMBER,
Maria del Pilar Avalos
CITY MANAGER,
Rob Houston
COUNCIL MEMBER,
Joshua Barron
CITY ATTORNEY,
Raul F. Salinas
COUNCIL MEMBER,
Al Rios
If you would like to participate in this meeting, you can participate via the following options:
1. VIEW THE MEETING LIVE ONLINE AT: https://youtube.com/@SouthGateCA90280 Please allow up to 24 hours after the meeting for the archive to be available.
2. PARTICIPATE BEFORE THE MEETING by emailing the City Clerk at:
[email protected] no later than 4:00 p.m. on the day of the meeting. Please write "Public Comment" in the subject line.
3. ATTEND THE MEETING IN PERSON
*The disruption in service of any alternative method does not prelude the City Council or other legislative
body from taking further action and moving forward on the agenda.
Meeting Schedule
1 The regular meetings of the City Council are held on the second and fourth Tuesday of each month, closed session business will usually commence at 5:30 p.m., when scheduled, and general business session will commence at 6:30 p.m.
Brown Act
Agendas are drafted to accurately state what the legislative body is being asked to consider. The legislative body can take action on "all items" listed on the agenda and be in compliance with the open meeting laws. Under the Brown Act, no action may be taken on a matter unless it is listed on the agenda, or unless certain emergency or special circumstances exist. The governing body may direct staff to investigate and/or schedule certain matters for consideration at a future meeting.
City's Vision Statement
We envision a thriving, safe and inclusive community where everyone has the opportunity to access exceptional services, education and support to be resilient and live full, vibrant lives.
Public Communications
Public Comments on agenda items are limited to three (3) minutes. All comments are to be addressed directly to the Agency Members not to the members of the public.
Emails for public comment received prior to 12pm on the day of the Council Meeting will be summarized by the City Clerk, not read in its entirety. A copy of the email will be provided to the City Council and will also be available at the City Clerk's Office for public review. A copy of each email will be recorded for public record and noted on the official minutes of tonight's meeting.
Call to Order/Roll Call With Invocation & Pledge
CALL TO ORDER:
Gil Hurtado, Mayor
INVOCATION:
Pastor Marta Moscoso, Faith and Hope Lutheran Church
PLEDGE OF ALLEGIANCE:
Manuel Arana, Police Captain
ROLL CALL:
Yodit Glaze, City Clerk
Meeting Compensation Disclosure
Pursuant to Government Code Section 54952.3: Disclosure of compensation for meeting attendance by City Council Members is $790 monthly regardless of the amount of meetings.
Public Hearings
1. Resolution receiving and approving the FY 2024-2025 Annual Action Plan and authorizing the execution of all necessary documents for the submittal of said plan to the U.S. Department of Housing and Urban Development
Following the conclusion of the Public Hearing, the City Council will consider: (CD)
a. Adopting a
Resolution
approving the Fiscal Year 2024-2025 Annual Action Plan; 2 b. Authorizing the City Manager, or designee, to submit to the U.S. Department of Housing and Urban Development the Fiscal Year 2024-2025 Annual Action Plan; and c. Authorizing the City Manager or his designee to enter into agreements with eligible subrecipient in a form acceptable to the City Attorney.
Documents:
Item 1 Report 04092024.pdf
Comments From The Audience - Non-Agenda Items
During this time, members of the public may address the City Council regarding any items not listed on the agenda and within the subject matter jurisdiction of the City Council and not on this agenda. Comments from the audience will be limited to three (3) minutes per speaker; unless authorized by the Mayor, the time limit may not be extended by utilizing another member's time. There will be no debate or action on items not listed on the agenda unless authorized by law. The collective initial period of time for comments from the audience shall be limited to 45 minutes. Any speaker that did not get a chance to speak during this segment due to the 45-minute limitations will be able to speak at the end of the meeting prior to adjournment.
Note: The City Council desires to provide all members of the public with the opportunity to address the Council. Nevertheless, obscene language, comments intended to disrupt/interfere, other actions which disrupt the progress of the meeting or slanderous comments will not be tolerated and may result in ejection and/or may constitute a violation of South Gate Municipal Code Section1.04.110.
Reports And Comments From City Officials
During this time, members of the City Council will report on matters pertaining to their service on various intergovernmental boards and commissions as a representative of the City pursuant to Assembly Bill 1234. City Council Members will also have an opportunity to comment on matters not on the agenda.
Consent Calendar Items
Agenda Items
2, 3, 4, 5, 6, 7,8 ,9
and
10 are Consent Calendar Items. All items including
Ordinances, Resolutions and Contracts, may be approved by adoption of the Consent Calendar, individually and collectively by one (1) motion. There will be no separate discussion of these items unless Members of the City Council, the public, or staff request that specific items be removed from the Consent Calendar for separate discussion and action. Members of the public are permitted to speak on any item listed but their time period is limited to three (3) minutes in total.
Any motion to introduce or adopt an Ordinance on the Consent Calendar shall be: (1) a motion to waive the reading of the Ordinance and introduce the Ordinance or (2) a motion to waive the reading of the Ordinance and adopt the Ordinance, as appropriate.
3 2. Ordinance No. 2024-01-CC amending Section 1.04.065.2 (Same - Compensation) of Section 1.04.065 (Salary of Members - Purpose) of Chapter 1.04 (City Council) of Title 1 (Administration And Personnel) of the South Gate Municipal Code increasing the City Council and the City Treasurer salary levels
The City Council will consider adopting
Ordinance No. 2024-01-CC
amending Section
1.04.065.2 (Same - Compensation) of Section 1.04.065 (Salary Of Members - Purpose) of Chapter 1.04 (City Council) of Title l (Administration And Personnel) of the South Gate Municipal Code increasing the City Council and the City Treasurer salary levels. (CM) Documents:
Item 2 Report 04092024.pdf
3. Resolution declaring a continued emergency and authorizing repair, replacement or maintenance activities of public facilities related to the Urban Orchard, City Project No. 539-PRK without public bidding, pursuant to the Emergency Contracting Procedures of the South Gate Municipal Code and the California Public Contract Code
The City Council will consider making a finding and adopting a Resolution
declaring an
emergency still exists and authorizing repair, replacement or maintenance activities of public facilities related to the Urban Orchard, City Project No. 539-PRK, without public bidding, pursuant to the emergency contracting procedures of the South Gate Municipal Code and the California Public Contract Code. (PW)
Documents:
Item 3 Report 04092024.pdf
4. Resolution declaring the City's intention to Grant a 10-year Franchise Renewal to Tesoro SoCal Pipeline Company
The City Council will consider: (PW)
a. Adopting a
Resolution
declaring the City's intention to grant a ten-year franchise renewal to
Tesoro SoCal Pipeline Company, LLC., to lay and use pipes, ditches, flumes, conduits and appurtenances for transmitting and distributing oil or products thereof, for any and all purposes in, along, across, upon and under the public streets, ways, alleys and places, as the same now or may hereafter exist, within the City of South Gate; b. Approving the scheduling a Public Hearing for May 14, 2024, to consider the introduction of an Ordinance granting the proposed franchise renewal.
Documents:
Item 4 Report 04092024.pdf
5. Resolution to terminate Contract No. 2022-84-CC with NR Development, Inc. for default effective April 9, 2024 for the Hollydale Community Park Project, City Project No. 607-PRK
4 The City Council will consider: (PW)
a. Adopting a
Resolution
to terminate Contract No. 2022-84-CC between the City of South Gate and NR Development, Inc., for default effective April 9, 2024, for the Hollydale Community Park Project, City Project No. 607-PRK; b. Directing the Mayor to execute a document in a form acceptable to the City Attorney advising NR Development, Inc., and the bonding company that the Agreement has been terminated for default; and
c. Authorizing the City Manager, or his designee, to execute any related documentation in pursuit of the City's remedies against NR Development, including its bonding company in an effort to complete the Project including, but not limited to, the retention of a successor contractor.
Documents:
Item 5 Report 04092024.pdf
6. Amendment No.1 to Contract No. 2023-24-CC with Gannett Fleming, Inc. for additional Construction Management and Inspection Services for the Garfield Avenue Complete Street Improvement Project, City Project No. 564-ST
The City Council will consider:
a. Approving
Amendment No. 1 to Contract No. 2023-24-CC
with Gannett Fleming,
Inc., to provide additional construction management and inspection services for the construction of the Garfield Avenue Complete Street Improvement Project, City Project No. 564-ST, at a cost not to exceed $144,067; and
b. Authorizing the Mayor to execute Amendment No. 1 in a form acceptable to the City Attorney.
Documents:
Item 6 Report 04092024.pdf
7. Agreement with SDI Presence LLC to provide on-site Supplemental IT Support Services
The City Council will consider: (ADMIN SVCS)
a. Approving an
agreement
with SDI Presence LLC., to provide on-site Supplemental IT support, for one year, in the amount of $104,858; and
b. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney.
Documents:
5 Item 7 Report 04092024.pdf
8. Agreement with Macro Automatics for Professional Engineering Services for the Supervisory Control and Data Acquisition System Upgrade, City Project No. 647- WTR
The City Council will consider: (PW)
a. Approving an
Agreement
with Macro Automatics for Professional Engineering
Services
to implement the Supervisory Control and Data Acquisition System Upgrade, City Project
No. 647-WTR, in an amount not to exceed $539,882;
b. Appropriating $225,000 in Water Funds from the unrestricted balance of the Water Fund
to fully fund the SCADA Project; and
c. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney.
Documents:
Item 8 Report 04092024.pdf
9. Notice of Completion for the East Alameda Street Sidewalk Improvements Project, City Project No. 660-ST
The City Council will consider: (PW)
a. Accepting completion of construction of the East Alameda Street Sidewalk Improvements Project, City Project No. 660-ST by Sequel Contractors, Inc., effective April 9, 2024; and
b. Directing the City Clerk to file a Notice of Completion with Los Angeles County Registrar Recorder's Office.
Documents:
Item 9 Report 04092024.pdf
10. Declaring Police Department firearms surplus property and approving Trade- Buy-Back Program with ProForce Law Enforcement
The City Council will consider: (PD)
a. Declaring twenty-three (23) Police Department firearms as surplus property; and b. Authorizing the Police Department to exchange the firearms for credit from ProForce Law Enforcement through the Trade-Buy-Back Program to purchase new firearm accessories/reflex sights.
Documents:
6 Item 10 Report 04092024.pdf
Reports, Recommendations And Requests
11. Resolution making certain findings for an exception to the 180-day wait period pursuant to California Government Code Section 7522.56 and 21221
The City Council is requested to consider adoption of a Resolution
making certain
findings that allow a retired Police Captain-In-Charge to be hired for temporary, part-time employment commencing within the 180-day wait period from his retirement from the City of South Gate.
Documents:
Item 11 Report 04092024.pdf
12. Warrant Register for April 9, 2024
The City Council will consider approving the Warrant Register for April 9, 2024. (ADMIN SVCS)
Total of Checks: $1,861,153.54 Less: Voids $ ( 1,049.76)
Less: Employee Payroll Deductions $
(391,934.47)
Grand Total: $1,468,169.31
Cancellations: 98273, 101064, 104950, 105296
Documents:
Item 12 Report 04092024.pdf
Adjournment
I, Yodit Glaze, City Clerk, certify that a true and correct copy of the foregoing Meeting Agenda was posted on April 4, 2024, at 12:30 p.m., as required by law.
Yodit Glaze
City Clerk
GENERAL NOTICE TO THE PUBLIC
The City Council adopted new rules relating to the conduct of the public meetings, proceedings, and business in the City of South Gate on July 12, 2022, (Resolution 2022-38-CC) and go into effect on August 1, 2022. Resolution #2022-38-CC is available at the City Clerk’s Office.
MEETING SCHEDULE
7 Regular meetings of the City Council are held on the second and fourth Tuesday of each month, closed session meetings will commence at 5:30 p.m. unless posted otherwise on its agenda. The regular City Council meetings will commence at 6:30 p.m. Agendas are available at the following locations:
City Clerk
Office,
Public Notice Boards at City Hall, and on the
City’s web page at https://www.cityofsouthgate.org
The Public can sign up to receive automatic notices of postings of agendas for the City Council or any other Commission or Board of the City of South Gate. Visit the City webpage and click on the Agenda & Minutes icon. That will take you the page where an individual can enter their email in the “Email Updates” box to register.
PUBLIC COMMENT/PARTICIPATION
Any person may request to address a legislative body during a public meeting. The Presiding Officer will call upon those present in the Council Chambers first. After all speakers in the Chambers have spoken, the Presiding Officer will call upon those participating via zoom or teleconference.
Speakers are limited to three (3) minutes on any item listed on the agenda, including public hearings.
Under Comments from the Audience portion, speakers are also limited to a single three (3) minutes time limit. Comments from the Audience is initially limited to 45 minutes at each meeting. Any speaker still wishing to speak, that did not speak, will have an addition Comments from the Audience opportunity after the last business item is finished. The Presiding Officer may extend the time limit as long as there is no objection from the City Council as a body.
To ensure that the public is able to participate, the City provides the opportunity to submit their comments in person, virtually, email, phone call, mail and any other method which may become available. Methods of participation may be subject to change during other such times when a State of Emergency, Health Order or State Executive Order limits in-person participation.
CURFEW
In absence of a motion duly adopted by majority vote of the City Council, the Presiding Officer may adjourn the City Council meetings at 10:30 p.m. The Presiding Officer may ask the City Council if any agenda items listed should be continued or dealt with during the meeting. For those items to be continued, the City Council can direct the item be placed on the next City Council agenda or the current meeting may be adjourned to a time certain at which time the meeting shall be reconvened as an Adjourned Regular Meeting of the City Council and action upon the published agenda continued.
STAFF REPORTS
As a general rule, staff reports. or other written documentation are prepared/organized with respect to each item of business listed on the agenda. Meeting agendas and staff reports are available at least 72- hours prior to the scheduled regular City Council meeting and a minimum of 24-hours prior to a Special City Council meeting. There are times when the City Council receives written material. revised material after the posting of agendas, these materials are become a public record and will be available for public view within 72-hours after the meeting in which they were received. Those materials and any other public document can be inspected in the City Clerk's Office located at 8650 California Avenue, South Gate.
SERVICES TO FACILITATE ACCESS TO PUBLIC MEETINGS
In compliance with the American with Disabilities Act, if you need special assistance to participate in the City Council Meetings, please contact the Office of the City Clerk. Notification 48 hours prior to the City Council Meeting will enable the City to make reasonable arrangements to assure accessibility. For further information, please contact the Office of the City Clerk at (323) 563-9510 or via email at [email protected]
.
8 9
affMANAa!R'$(IFFICE
Item No. l
APR [13 202%
gi:3opr- City ofSouth Gate
CITY COUNCIL
AG-ENDA BNLL
For tlie Regular Meeting of: Aprii 9, 2024
Originating De)raitment: Comnuinitv Developmen
DeparbnentDirectoi%,\,e,WClllhEllllla CityAifazitiger:Rob (Ious SUBJECT: FISCAL YEAR 2024-2025 ANNUAL ACTION PLAN FOR THE COMMUNITY
DEVELOPMENT BLOCK GRANT (CDBG) AND HOME INVESTMENT PARTERNSHIPS (HOME) FUNDS
PURPOSE: To consider adopting Fiscal Year 2024-2025 Annual Action Plan for tlie CDBG and HOME FLIII(IS.
RECOMMENDED ACTIONS: Fol)owing the conclusion of the Public Hearing, the City Council will consider:
a. Adopting a Resolution approving tlie Fiscal Year 2024-2025 Annual Action Plan; b. Autlioiizing tlie City Manager, or designee, to submit to the U.S. Depaitment of Housing and Urban Development the Fiscal Year 2024-2025 Ai'u'iual Action Plan; and c. Autl'iorizing tlie City Manager or liis designee to enter into agreements witli eligible sribrecipiei'its in a forin acceptable to the City Attomey.
F4SCAL {MPACT: Ln Fiscal Year 2024-2025, the City is expected to receive approximately $1,400,000 in CDBG funds and $740,000 in HOME fiutds. Tliere is 110 fiscal impact to the City's General Fund.
NOTICING REQUIREMENT: Adveitising and notification of tl'ie Public Hearing was conducted in compliance witli Municipal Code Section 11.50.020 (Public Heaiing Notification) and was publislied in the South Gate Press i'iewspaper on Marcli 8, 2024. Tlie notice provided a 30-day conunent peiiod. Additionally, a draft copy of tlie Fiscal Year 2024-2025 Annual Action Plan ("A AP") and Public Notice were posted on tlie City's website. Any comments received will be addressed during this meeting.
ANALYSIS: Each year, the City prepares an Annual Action Plan in corinection with tlie five-year Consolidated Plan, wliich details liow tl'ie City will spend its allocated CDBG and HOME funds. This AAP is tlqe fifth year of the five-year Consolidated Plan cycle that was adopted in September 2020.
The AAP lias two piincipal puiBoses:
1. To identify tl'ie projects and programs to be undertaken duiing the upcoming fiscal year, and the proposed objective and ocitcomes to be acl'iieved witliin tl"ie overall context of the five-year consolidated plan; and
l
1 10
2, To act as the City's application process for federal forinula grants, comprised of the CDBG and HOME programs.
For FY 2024-2025 the City anticipates receiving $1,400,000 in CDBG funds and $740,000 in HOME funds.
In October 2023, notifications were sent to non-profit organizations and City departments and a legal notice of funding availability was published on October 26, 2023, to inform prospective applicants of the availability of CDBG funds for Fiscal Year 2024-2025, The Citizens' Advisory Committee ("CAC") reviewed the applications and later heard presentations from the applicants at their meetings of February 15, 2024, and February 21, 2024.
The proposed CDBG funding allocations as recommended by the Citizens' Advisory Committee for Fiscal Year 2024-2025 are as follows:
Anticipated CDBG Funding Allocation for FY 2024-2025* $1,400,000 Administration (20% Cap) $280,000
Fair Housing $24,000
Program Ad'ministration $256,000
Public Services (15% Cap) $210,000
Graffiti Abatement $102,240
Family Violence Prevention Program $27,000
South Gate Police Explorers $23,500
College Internship Program $24,000
Mental Health Program $18,260
LACAI)A - Nuestra Casa $15,000
Non-Public Services $910,000
Commercial Facade $546,000
Business Sign Program (2024) $364,000
Total FtmdsProposed to bePrograyytmed,for FY2024-2025 $1,400,000 *HUD has not released the allocations for FY 2024/25, these amounts are estimates based on furiding the City has received in prior years.
The proposed HOME funding allocations for FY 2024-2025 are listed below:
Anticipated HOM[E Funding Allocation for FY 2024-25* $740,000 Administration (10% cap) $74,000
Affordable Housing Development $555,000
CHDO Set Aside $111,000
TotalFundsProposed to beProgrammed,forFY2024-25 $740,000 'hHUD has not released the a(locat(ons for FY 2024/25, these amounts are estimates based on fimding the City has received in prior years.
2 2
11 BACI(GROTTND: The City of South Gate has been an annual recipient of CDBG funds since the enactment of the Housing and Community Development Act of 1974. The City is deemed as an "entitlement" jurisdiction because it maintains a population above 50,000 and meets certain other dernographic criteria. CDBG funding can be used for a variety of projects and programs primarily benefiting persons of low- and moderate-income,
The HUD re,gulations regarding AAPs maridate a citizen participation and public re'view process, including a public hearing, prior to submission, The draft AAP is available for public review and comment (see Attachment B). The deadline to submit an approved AAP is May 15, 2024.
It is impoitant to note that under HUD regulations, proyiders funded under the AAP must meet qualifyingrestrictionsunless they arepart of adesignated category sucli as Seniors orHomeless, These regulations include documented financial need through income tax forms, for example, The applicant can also be required to hire contractors that cm meet various federal labor requirements and insurances, Failure to adl'iere to tliese I{UD regulations will mean that expenditures will be disqualified, and the City would need to reimburse the CDBG funds. These restiictions can place significant burdens onthe subrecipientto ensure they arefollowed, which canplace additiorial butdens on tliem administratively which are not usually reimbursable expenses or would be counted against the subrecipient award.
ATTACHMENTS: A.ProposedResolution
B. Draft AAP
C. Proof of Publication - Public Hearing Notice
3 3
12 RESOLUTION NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH
GATE, CALIFORNIA, RECEIVING AND APPROVING THE FISCAL YEAR 2024-2025 ANNUAL ACTION PLAN AND AUTHORIZING THE
EXECUTION OF ALL NECESSARY DOCUMENTS FOR THE
SUBMITTAL OF SAID PLAN TO THE U.S. DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT
WHEREAS, the U.S. Department of Housing and Urban Development ("HUD") requires all jurisdictions that receive federal entitlement funds to prepare an Annual Action Plan that identifies the projects to be funded with Community Development Block Grant ("CDBG") and HOME Investment Partnerships ("HOME");
WHEREAS, the City of South Gate ("City") prepared and submitted a Five-Year Consolidated Plan which contained an Action Plan to HUD for the City covering the period July 1, 2020 to June 30, 2025;
WHEREAS, the purpose of the Consolidated Plan and the Annual Action Plan is to identify housing and community development needs and to develop specific goals and objectives to address those needs over a five-year period and is a requirement of the U.S. Department of Housing and Urban Development that the City must meet in order for the City to continue to receive federal housing and community development funds;
WHEREAS, this Annual Action Plan constitutes an application to HUD for Fiscal Year 2024- 2025 federal funds from the CDBG and HOME programs; WHEREAS, the City has prepared an Annual Action Plan for Fiscal Year 2024-2025 with the participation of the Citizens' Advisory Committee and made it available for public review and comments on March 11, 2024, which was posted on the City's website for the required thirty-day public review period;
WHEREAS, the City published a Notice of Availability of the Annual Action Plan for Fiscal Year 2024-2025 and a Notice of Public Hearing on March 8, 2024, scheduling this matter for final public comment and City Council consideration for April 9, 2024; and WHEREAS, on April 9, 2024, the City Council did conduct a duly noticed public hearing to hear public comment on the Annual Action Plan for Fiscal Year 2024-2025 and received final public comment on this Annual Action Plan.
Page l of 2
4 13
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA. DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. Tlie City Cormcil does liereby declare tliat the above recitals are true and correct and incorporated )ierein by reference.
SECTION 2. The City Council does liereby apl:irove tlie Fiscal Year 2024-2025 Aimual Action Plan attached hereto as Exliibit "A."
SECTION 3. The City Manager and/or their designee is authorized to take reasonable actions needed to implement this Resolution, including subinittal of tlie Annual Action Plai'i to tlie appropriate HUD office on belialf of tlie City. Tlie City Manager, and/or tlieir designee, is fhutlier acithorized to promulgate and implement administrative policies and procedures needed to effectuate the Annual Action Plan.
SECTION 4. Tlie City Manager and/or their designee is liereby directed to file a copy of said Annual Action Plan to HUD.
SECTION 5. Tlie City Manager is liereby autliorized to enter into agreen'ients wit)i eligible sub- recipients, in a form acceptable to the City Attorney.
SECTION 6. T)ie City Clerk sliall certify to tlie adoption of this Resolution wliicli sl"iall be effective upon its adoption.
PASSF,D, APPROVED, and ADOPTED 01Th this 9- day of April, 2024.
CITY OF SOUTH GATE:
B7:
Gil Hurtado, Mayor
ATTEST:
B)7:
Yodit Glaze, City Clerk
(SEAL)
AJ'PROVED AS TO FORM:
By:
M n /1 h 8
JJ(JjJX- // a '=f"'-S 't[
'Rkul F. Sa!inas, City Attorney
Page2of2
5 14
City of
South
(,ate-
FISCAL YEAR 2024-2025 Annual Action Plan
DRAFT
PRESENTED TO CITY COUNCIL APRIL 9, 2024
Annual Action Plan
OMB Control No: 2506-0117 iexp. 09/30/2021)
15 Table of Contents
Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b) PR-05 Lead & Responsible Agencies - 91.200(b).
AP-10 Consultation - 91.100, 91.200(b), 91.215(1).
AP-12 Participation - 91.105, 91.200(c)
Expected Resources
AP-15 Expected Resources - 91.220(c)(1,2)
Annual Goals and Objectives
Projects
AP-35 Projects - 91.220(d)
AP-38 Project Summary.
AP-50 Geographic Distribution - 91.220(f).
Affordable Housing
AP-55 Affordable Housing - 91.220(g)
AP-60 Public Housing - 91.220(h).
AP-65 Homeless and Other Special Needs Activities - 91.220(i).
AP-75 Barriers to affordable housing - 91.220(j)
AP-85 0ther Actions - 91.220(k)
Program Specific Requirements.
Annual Action Plan
OMB Control No: 2506-0117 (exp. 09/30/2021)
3 .3
.6
7 13
. 14
14 . 17
19 19
. 20
. 28
.29
.29
31 .32
36 38
. 42
2 7
16 Executive Summary
AP-05 Executive Summary - 24 CFR 91.200(c), 91.220(b)
1. Introduction
The City of South Gate's 2024-2025 Annual Action Plan (AAP) is based on priorities established by the City's Five-Year Consolidated Plan. The 2024-2025 Action Plan is the final and fifth year of the City's 2020-2025 Consolidated Plan. The Five-Year Consolidated Plan combines two Federal Department of Housing and Urban Development (HUD) Programs of which the City is a recipient of Community Development Block Grant (CDBG) and HOME Investment Partnerships (HOME).
The City"s Community Development Department manages, plans, submits, and implements the CDBG and HOME grant process. The Department is involved in activities which enhance coordination among public and non-profit, private housing providers, and health and service agencies.
The 2024-2025 Annual Action Plan serves as the City's blueprint for providing decent affordable housing to lower-income households, providing suitable living environments, expanding economic opportunities, and expanding the capacity of non-profit housing providers to the residents of South Gate. This strategic plan sets forth goals, objectives, and performance benchmarks for measuring and establishing a framework for progress. The City is anticipating receiving 91,400,000 in PY 2024-2025 CDBG funds. The City also anticipates receiving S740,000 in HOME funds for PY 2024-2025. Currently the City does not anticipate any additional carryover funds for programming.
2. Summarize the objectives and outcomes identified in the Plan The goals of the 2020-2025 Consolidated Plan include:
@ Preservation and rehabilitation of the existing housing stock using CDBG and HOME funds.
* Expand and improve the quality and quantity of public service programs. * Promote fair housing.
* Provide infrastructure and public facility funding. * Provide financial assistance for the rehabilitation of commercial faqade improvements. * Economic Development activities that promote employment and preserve local businesses.
Annual Action Plan 3
OMB Control No: 2506-0117 iexp. 09/30/2021)
8 17
* Housing rehabilitation.
* Public Services.
* Neighborhood preservation
3. Evaluation of past performance
The City continually strives to improve the performance of its operations and those of its partners who provide services to City residents. The City prepares the Consolidated Annual Performance Evaluation and Report (CAPER) annually, which documents progress toward implementing the strategies and meeting the goals established in the Consolidated Plan and the Annual Action Plans.
Over the past years, the City's CDBG funds were used for meeting the City's goals of providing decent housing, creating a suitable living environment, and expanding economic opportunities to low-and moderate-income persons in South Gate.
Below is a summary of the City's CDBG and HOME accomplishments for FY 2022-2023, the most recent completed program year:
* One business was assisted with commercial faqade rehabilitation. * 353 tenant/landlord issues were addressed via fair housing services. @ 11,956 graffiti assignments were completed, benefiting over 73,000 residents.
4. Summary of Citizen Participation Process and consultation process The City is committed to maximizing community participation in the CDBG and HOME planning process. To ensure that its 2024-2025 Action Plan was based on resident needs, the City used the following approach to create participation of residents, service providers, and other interested persons and organizations:
South Gate Citizens Advisory Committee
The South Gate Citizens Advisory Committee (CAC) is an advisory board created by the City Council to ensure constant dialog exists between the City and the community. The role of the CAC is twofold. First, to ensure that the City Council is appraised of the needs, desires, and interests of City residents. Second, to review and make recommendations on CDBG funding to the City Council. The CAC is comprised of members representing the demographic and social range of residents in the City. The CAC was actively involved in the Annual Action Plan process.
The CAC reviewed and discussed the 2024-2025 Public Services applications and then made funding recommendations to the City Council for the Annual Action Plan. It is anticipated that the CAC will continue to serve in an advisory role in the CDBG process.
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Annual Public Services Application Process
The annual Public Services selection process established by the City requires applicants to apply describing their proposed project or program and detailing how the project meets local and national CDBG objectives and federal requirements. City staff and the CAC review the public services applications and make a recommendation for CDBG funding to the City Council. The annual CAC recommendation and Council selection of public service grantees is based on the following criteria:
@ Consistency of service activity with national objectives and federal requirements. * Consistency of service activity with the goals, objectives, and strategies of the 5-year Consolidated Plan.
* Experience and capacity of the applicant.
* Demonstrated need and lack of other sources of funding.
5. Summary of public comments
mmii mmma
6. Summary of comments or views not accepted and the reasons for not accepting them io be upd4>d after Pu41ic Alarin4
7. Summary
The Annual Action Plan was made available for a 30-day public review from March 11, 2024 through April 09, 2024. The City prepared a notice announcing the Draft Action Plan was available for public review in the local newspaper. The notice included the date, time, and location of the City Council public hearing, and the amount of HOME and CDBG assistance expected to be received during the plan duration. The City held a public hearing to consider the adoption of the Annual Action Plan on April 09, 2024.
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PR-05 Lead & Responsible Agencies - 91.200(b)
1. Agency/entity responsible for preparing/administering the Consolidated Plan Describe the agency/entity responsible for preparing the Consolidated Plan and those responsible for administration of each grant program and funding source.
Agency Role Name Department/Agency
CDBG Administrator SOUTH GATE Community Development Department, Housing Division
HOME Administrator SOUTH GATE Community Development Department, Housing Division
Table 1- Responsible Agencies
Narrative (optional)
The City of South Gate is the Lead Agency for the CDBG and HOME entitlement programs. The City's Community Development Department is responsible for the administration and preparation of the Consolidated Plan, Annual Action Plans, and Consolidated Annual Performance Evaluation Reports (CAPER).
Consolidated Plan Public Contact Information
Meredith T. Elguira
Community Development Director
City of South Gate
8650 California Avenue, South Gate, CA 90280
P: (323) 563-9566
melzuira@[email protected]
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20 AP-10 Consultation - 91.100, 91.200(b), 91.215(1) Introduction1.
Activities to enhance the coordination between public and assisted housing providers and governmental health, mental health and service agencies are conducted on a regular basis.
Activities to encourage communication with key community stakeholders include soliciting and reviewing funding applications from housing, health care, and service providers through its Annual Action Plan process. The City also participates in local and regional committees such as the Los Angeles Homeless Services Authority (LAHSA) Continuum of Care and the Southern California Council of Governments (SCAG).
Provide a concise summary of the jurisdiction's activities to enhance coordination between public and assisted housing providers and private and governmental health, mental health and service agencies (91.215(1))
Consultation for the 2024-2025 Annual Action Plan was achieved through a variety of strategies, including the CAC and conducting a public hearing. Continued coordination with City residents and local service providers, including previous CDBG subrecipients, is anticipated for planning efforts, as well as project implementation. The City Council also regularly communicates with the Community Development Department and relays resident needs so that needs are assessed and addressed throughout the implementation of the Annual Action Plan.
Describe coordination with the Continuum of Care and efforts to address the needs of homeless persons (particularly chronically homeless individuals and families, families with children, veterans, and unaccompanied youth) and persons at risk of homelessness.
The City of South Gate is within the Los Angeles Homeless Services Authority's (LAHSA) Continuum of Care in Service Planning Area (SPA) 7. LAHSA was established in December 1993 as a Joint Powers Authority to coordinate the effective and efficient utilization of Federal and local funding in providing services to homeless people throughout Los Angeles City and County. LAHSA coordinates and manages over 570 million dollars annually in Federal, State, County and City funds for programs that provide shelter, housing, and services to homeless persons in Los Angeles City and County. The City coordinates the delivery of homeless services with LAHSA.
Describe consultation with the Continuum(s) of Care that serves the jurisdiction's area in determining how to allocate ESG funds, develop performance standards for and evaluate Annual Action Plan 7
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outcomes of projects and activities assisted by ESG funds, and develop funding, policies and procedures for the operation and administration of HMIS.
Not Applicable. The City does receive ESG funds.
2. Describe Agencies, groups, organizations, and others who participated in the process and describe the jurisdiction's consultations with housing, social service agencies and other entities
The agencies and organizations below participated in the consultation during the City's Consolidated Plan and remain active partners with the City to enhance the coordination of services to City residents.
Tab e 2 - Agencies, groups, organizations who participated. 1 Agency/Group/Organization FAIR HOUSING FOUNDATION
Agency/Group/Organization Type Service-Fair Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved coordination?
Organization provides information on
housing affordability, fair housing issues,
and landlord/tenant complaints via
quarterly reports.
2 Agency/Group/Organization NEWSTART HOUSING CORPORATION, INC.
Agency/Group/Organization Type Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved coordination?
Newstart has developed affordable
housing in South Gate.
3 Agency/Group/Organization HOME OWNERSHIP FOR PERSONAL
EMPOWERMENT (HOPE)
Agency/Group/Organization Type Housing
What section of the Plan was addressed by
Consultation?
Housing Need Assessment
Non-Homeless Special Needs
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Briefly describe how the
Agency/Group/Organization was consulted. What
are the anticipated outcomes of the consultation or areas for improved coordination?
The organization has provided input on
housing and supportive services for adults
with special needs. HOPE has developed
affordable housing in South Gate.
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Identify any Agency Types not consulted and provide rationale for not consulting.
No agency was knowingly excluded from the consultation process.
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24 Other local/regional/state/federal planning efforts considered when preparing the Plan.
Name of Plan Lead Organization How do the goals of your Strategic Plan overlap with the goals of each plan?
State Plan for Independent Living (SPIL) for
2021-2023
State Independent Living Council
(SILC)
The Strategic Plan has goals in support of the
State Plan for Independent Living because of
South Gate's many senior residents.
Los Angeles Continuum of Care Los Angeles Homeless Services Authority (LAHSA)
The Continuum of Care identifies funding and
activities assisting LA County's homeless
including one project helping South Gate's
homeless population. The City's homeless
goals and strategy support those of the
Continuum of Care.
Area Plan on Aging
July 1, 2024 to June 30, 2028
Area Plan Update
July 1, 2023 to June 30, 2024
Los Angeles Department of Aging The Strategic Plan supportive housing goals for the elderly and frail elderly support those
of the Area Plan on Aging.
Los Angeles County Comprehensive HIV Plan
(2022-2026)
Los Angeles County Commission on HIV
County of Los Angeles Department of Public
Health
The Strategic Plan includes goals based on
the goals, needs, and strategies identified in
the County's Comprehensive HIV Plan.
2021-2029 Housing Element of the General
Plan
City of South Gate The Strategic Plan goals are based on those included in the 2021-2029 Housing Element.
Gateway, Tweedy, and Hollydale Specific
Plans, and the
Five-Year Capital Improvement Program (CIP)
City of South Gate Public facility and public improvement needs and goals are based in part on those
described in the specific plans and 5-year CIP.
Table 3 - Other local / regional / federal planning efforts Narrative (optional)
As part of the Consolidate Plan process the City sent out surveys to different key stakeholders about community needs. One of the identified needs included broadband updates and bridging the digital divide. Due to other competing needs the City has not yet Annual Action Plan 11
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engaged with internet service providers or other organizations. However, as the City engages in the next cycle of the Consolidated Plan process this is a need that will be revisited.
The City did not consult with emergency management agencies as part of the FY 2024-2025 Annual Action Plan process. The City will make concerted efforts to reach out to emergency management agencies as part of ongoing Annual Action Plan planning efforts, as part of the upcoming Consolidated Plan process.
The City regularly consults with the South Gate Chamber of Commerce and other local businesses to help identify economic development needs in the City. As a result of these consultations the City has previously used CDBG funding for business assistance programs and via different funding sources have been able to invest in workforce programs.
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AP-12 Participation - 91.105, 91.200(c)
1. Summary of citizen participation process/Efforts made to broaden citizen participation Summarize citizen participation process and how it impacted goal setting.
The City of South Gate encourages citizen involvement in the planning, implementation and evaluation of its housing and community development programs. City staff continued to work with the Citizen Advisory Committee (CAC) and partner agencies to increase citizen participation and improve the FY 2024 CDBG application and evaluation process.
Below, is the citizen participation schedule that was followed for development of the FY 2024-2025 Annual Action Plan.
Citizen Participation Outreach
Sort Order Mode of Outreach Target of Outreach Summary of response/attendance
Summary of
comments received
Summary of comments
not accepted
and reasons
URL (If
applicable)
I
Citizen's Advisory
Committee
February 15, 2024
Community
All interested
persons
No comments
received
No comments
received
No comments received
2 Citizen's Advisory
Committee
February 21, 2024
Community
All interested
persons
No comments
received
No comments
received
No comments received
3 Public Review
Period
March 11, 2024 -
April 09, 2024
Non-target/broad
Community
All interested
persons
[= 3 m m
4 Public Hearing
April 09, 2024
Non-target/broad
Community
All interested
persons
t= ffiB ff!:! !!!
Table 4 - Citizen Participation Outreach
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Expected Resources
AP-15 Expected Resources - 91.220(c)(1,2)
Introduction
For FY 2024-2025, the City is anticipating receive the following funding:
Community Development Block Grant (CDBG): With an expected grant allocation of Sl,400,000 twenty percent (20%) or S280,000 will be used for Program Administration which includes an allocation of S24,000 for Fair Housing Foundation. The remaining balance will be programmed to public service activities (staying within the 15% cap) and other City service projects. The City does not anticipate any carryover to program.
HOME Investment Partnerships (HOME): The City anticipates it will receive a grant allocation of S740,00 for FY 24-25 of which ten percent (10%) of the fiscal year allocation, or S74,000, will be used for Program Administration; The remaining balance will be programmed to fund construction of affordable housing development.
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Anticipated Resources
Program Source
of
Funds
Uses of Funds Expected Amou it Available Year 4 Expected Amount
Available
Remainder
of ConPlan
s
Narrataive
DescriptionAnnual
Allocation:
s
Program
Income:
S
Prior Year
Resources:
S
Total:
S
CDBG
Public -
Federal
Acquisition,
Admin &
Planning,
Economic
Development,
Housing,
Public
Improvements,
Public Services
Sl,400,000 SO 90 !>1,400,000 50
A HUD
formula-
based
program that
annually
allocates
funds for a
wide range
of eligible
housing and
community
development
activities.
HOME
Public -
Federal
Acquisition,
Homebuyer
Assistance,
Homeowner
Rehab
Multifamily
Rental New
Construction
Multifamily
Rental Rehab
New
Construction
for Ownership
TBRA
!>7 40,000 !>O , SO , 5zzc0,000 50
A HUD
formula-
based
program that
annually
allocates
funds to
support
affordable
i housing
programs.
Table 5 - Expected Resources - Priority Table
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29 Explain how federal funds will leverage those additional resources (private, state and local funds), including a description of how matching requirements will be satisfied.
The City recognizes that the City's annual entitlement and formula allocations are not sufficient to meet all its needs, and that leveraging resources is critical to achieving the City's goals. The City continues to cultivate funding partners who can match the City's investment of CDBG and HOME funds and makes efforts to leverage grants and other funding when appropriate to meet the objectives of the Annual Action Plan.
If appropriate, describe publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan.
There is currently no publicly owned land or property located within the jurisdiction that may be used to address the needs identified in the plan.
Discussion
N/A
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Annual Goals and Objectives
AP-20 Annual Goals and Objectives
Goals Summary Information
Sort
Order
Goal Name Start
Year
End
Year
Category Geographic
Area
Needs
' Addressed
Funding Goal Outcome Indicator
1 Administration 2024 2025 Administration Citywide
Planning and
Administration
CDBG: 5256,000
HOME: 574,000
Other:
0 0ther
2 Fair Housing 2024 2025 Administration Citywide
Ensure equal
access to
housing
opportunities
CDBG: S24,000
Other:
270 Persons Assisted
3 Public Services 2024 2025
Non-Housing
Community
Development
Citywide
Provide public
services for
low-income
residents
CDBG:5210,000
Public service activities other
than Low/Moderate Income
Housing Benefit:
646 Persons Assisted
4 Housing 2024 2025
Affordable
Housing
Citywide
Preserve the
supply of
affordable
housing
HOME: 5555,000 1 Households/ Housing
Units;
5 Commercial Facade 2024 2025
i Non-Housing
Community
Development
Citywide
Community
Development
Revitalization
CDBG: S546,000
Fagade Treatment/Business
Building Rehabilitation
5 Businesses
6 Community
Development
Revitalization
2024 2025
Non-Housing
Community
Development
Citywide
Community
Development
Revitalization
CDBG: S364,000
Fa(ade Treatment/Business
Building Rehabilitation
12 Businesses
Table 6 - Goals Summary
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31 Goal Descriptions
I Goal Name Administration
Goal Description Provide planning and administrative services. 2 Goal Name Fair Housing
Goal Description Promote fair housing.
]
Goal Name Housing
Goal Description Promote and maintain affordable housing options. 4 Goal Name Public Services
Goal Description Expand and improve the quality and quantity of public service programs.
Goal Name Commercial Fagade / Business Sign Faqade
Goal Description Maintain neighborhoods by assisting businesses.
G
Goal Name Community Development Revitalization
Goal Description Support towards community development projects that will promote community revitalization.
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Projects
AP-35 Projects - 91.220(d)
Introduction
To address the priority needs identified in the 2020-2025 Consolidated Plan, the City of South Gate will invest CDBG and HOME funds in projects that preserve affordable housing, provide fair housing services, and provide services to low-and moderate-income residents.
The 2024-2025 Annual Action Plan sets forth a description of activities for the use of anticipated funds that will become available during the coming federal fiscal year, determines the goals for activities programmed, and describes the implementation plan and geographic location of the activities to be undertaken.
Projects
# Project Name
1 CDBG ADMINISTRATION
2 FAIR HOUSING ADMINISTRATION
3 GRAFFITI ABATEMENT
4 FAMILY VIOLENCE PREVENTION PROGRAM
5 SOUTH GATE POLICE EXPLORERS
6 COLLEGE INTERNSHIP PROGRAM
7 MENTAL HEALTH PROGRAM
8 LACADA - NUESTRA CASA
9 COMMERCIAL FA(;ADE PROGRAM
10 BUSINESS SIGN PROGRAM
11 HOME PROGRAM ADMINISTRATION
12 AFFORDABLE HOUSING DEVELOPMENT
13 CHDO SET ASIDE
Table ? - Project Information
Describe the reasons for allocation priorities and any obstacles to addressing underserved needs.
The primary obstacles to meeting the underserved needs of low-and moderate-income people include lack of funding from federal, state, and other local sources, the high cost of housing, and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City is investing CDBG and HOME funds through the 2024-2025 Annual Action Plan in projects that provide deferred loans to low-and moderate-income homeowners for home improvements, projects that provide public and neighborhood services to low-and moderate-income people, and projects that prevent homelessness.
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AP-38 Project Summary
Project Summary Information
1 Project Name CDBG ADMINISTRATION
Target Area Citywide
Goals Supported Administration
Needs Addressed Planning and Administration
Funding CDBG: S256,000
Description The City of South Gate will use these Community Development Block Grant funds to administer, design, implement, and plan eligible CDBG activities.
Target Date 6/30/2025
Estimate the number and
type of families that will
benefit from the
proposed activities
N/A
Location Description Citywide
Planned Activities The City of South Gate will use these Community Development Block Grant funds to administer, design, implement, and plan eligible CDBG activities.
2 Project Name FAIR HOUSING FOUNDATION
Target Area Citywide
Goals Supported Fair Housing
Needs Addressed Ensure equal access to housing opportunities Funding CDBG: !>24,000
Description The Fair Housing Foundation administers a comprehensive program that includes: 1) discrimination complaint intake and investigation; 2) outreach and education; 3) general housing (landlord/tenant counseling; and 4) enforcement and impact litigation.
Target Date 6/30/2025
Estimate the number and
type of families that will
benefit from the
proposed activities
270 households
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34 Location Description Citywide
Planned Activities The Fair Housing Foundation administers a comprehensive program that includes: 1) discrimination complaint intake and investigation; 2) outreach and education; 3) general housing (landlord/tenant counseling; and 4) enforcement and impact litigation. 3 Project Name GRAFFITI ABATEMENT
Target Area Citywide - Eligible Areas
Goals Supported Infrastructure and Public Facility
Needs Addressed Infrastructure and Public Facilities Funding CDBG:5102,240
Description The Graffiti Abatement Program operates in CDBG low- and moderate-income service areas throughout the city to remove graffiti from hardscape areas such as walls, sidewalks, street furniture, poles, and signs. Funds pay for labor, supplies, and material.
Target Date 6/30/2025
Estimate the number and
type of families that will
benefit from the
proposed activities
19 census tracts
Location Description The Activity is administered by the Public Works Department located at 8650 California Avenue, South Gate, CA 90280.
Planned Activities The Graffiti Abatement Program operates in CDBG low- and- moderate-income service areas throughout the city to remove graffiti from hardscape areas such as walls, sidewalks, street furniture, poles, and signs. Funds pay for labor, supplies, and material.
4 Project Name FAMILYVIOLENCE PREVENTION PROGRAM
Target Area Citywide
Goals Supported Public Services
Needs Addressed Provide public services for low-income residents Funding CDBG: !>27,000
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Description The Family Violence Prevention Program will offer empowerment workshops and individual counseling sessions to battered spouses and family members. In addition, the program promotes awareness and education on sexual assault and family violence throughout the community.
Target Date 6/30/2025
Estimate the number and
type of families that will
benefit from the
proposed activities
540 persons
Location Description The Program is administered by the Police Department located at 8620 California Avenue, South Gate, CA 90280.
Planned Activities The Family Violence Prevention Program will offer empowerment workshops and individual counseling sessions to battered spouses and family members. In addition, the program promotes awareness and education on sexual assault and family violence throughout the community.
5 Project Name SOUTH GATE POLICE EXPLORERS
Target Area Citywide
Goals Supported Public Services
Needs Addressed Provide public services for low-income residents Funding CDBG: S23,500
Description The South Gate Police Explorers Program will provide training and orientation to young adults (ages 14-21), where 51% of whom are low-or moderate-income, who are interested in pursuing a career in law enforcement.
Target Date 6/30/2025
Estimate the number and
type of families that will
benefit from the
proposed activities
12 persons (youth) assisted
Location Description The Program is administered by the Police Department located at 8620 California Avenue, South Gate, CA 90280
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Planned Activities The South Gate Police Explorers Program will provide training and orientation to young adults (ages 14-21), where 51% of whom are low-or moderate-income, who are interested in pursuing a career in law enforcement.
6 Project Name COLLEGE INTERNSHIP PROGRAM
Target Area Citywide
Goals Supported Public Services
Needs Addressed Provide public services for low-income residents Funding CDBG: S24,000
Description The youth employment program will offer youth career exploration and pair work experience opportunities to increase their workforce development skills.
Target Date 6/30/2025
Estimate the number and
type of families that will
benefit from the
proposed activities
24 persons assisted
Location Description Participants will be placed at locations citywide.
Planned Activities The youth employment program will offer youth career exploration and pair work experience opportunities to increase their workforce development skills.
7 Project Name MENTAL HEALTH PROGRAM
Target Area Citywide
Goals Supported Public Services
Needs Addressed Provide public services for low-income residents Funding CDBG: S18,260
Description This program provides individualized case management, mental health counseling, and referrals to support services such as housing assistance, employment training, and substance abuse treatment.
Target Date 6/30/2025
Estimate the number and
type of families that will
benefit from the
proposed activities
20 persons assisted
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Location Description 4363 Tweedy Blvd., South Gate, CA 90280 Planned Activities Case management and mental health services. 8 Project Name LACADA - NUESTRA CASA
Target Area Citywide
Goals Supported Public Services
Needs Addressed Provide public services for low-income residents Funding CDBG:515,000
Description Services include clinical needs assessment, treatment planning, individual group treatment counseling, and like skills education.
Target Date 6/30/2025
Estimate the number and
type of families that will
benefit from the
proposed activities
50 persons
Location Description 8919 California Ave., South Gate, CA 90280 Planned Activities Services include clinical needs assessment, treatment planning, individual group treatment counseling, and like skills education. 9 Project Name COMMERCIAL FA(:ADE (2024)
Target Area Citywide - Eligible Areas
Goals Supported Commercial Rehabilitation
Needs Addressed Commercial Rehabilitation
Funding CDBG: S546,000
Description The Commercial Facade program will offer grants to business owners to make exterior commercial improvements.
Target Date 06/30/2024
Estimate the number and
type of families that will
benefit from the
proposed activities
4 businesses
Location Description The Program is administered by the Community Development Department located at 8650 California Avenue, South Gate, CA 90280. The location of the businesses will vary.
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Planned Activities The Commercial Facade program will offer grants to business owners to make exterior commercial improvements.
10 Project Name BUSINESS SIGN PROGRAM (2024)
Target Area Citywide - Eligible Areas
Goals Supported Community Development Revitalization Needs Addressed Support towards community development projects that will promote community revitalization.
Funding CDBG: S364,000
Description This program will assist eligible businesses by bringing signage up to code.
Target Date 06/30/2025
Estimate the number and
type of families that will
benefit from the
proposed activities
12 Businesses
Location Description The Program is administered by the Community Development Department located at 8650 California Avenue, South Gate, CA 90280. The location of the businesses will vary.
Planned Activities This program will assist eligible businesses by bringing signage up to code.
11 Project Name HOME PROGRAM ADMINISTRATION
Target Area Citywide - Eligible Areas
Goals Supported Administration
Needs Addressed Planning and Administration
Funding HOME: !>74,000
Description The entire Community will benefit from the City's Administration of the HOME Grant, though the direct beneficiaries of each funded activity will be primarily low- and moderate-income residents.
Target Date 6/30/2025
Estimate the number and
type of families that will
benefit from the
proposed activities
N/A
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Location Description The HOME grant is administered by the Community Development Department located at 8650 California Avenue, South Gate, CA 90280
Planned Activities The entire Community will benefit from the City's Administration of the HOME Grant, though the direct beneficiaries of each funded activity will be primarily low- and moderate-income residents. 12 Project Name AFFORDABLE HOUSING DEVELOPMENT
Target Area Citywide
Goals Supported Housing
Needs Addressed Preserve the supply of affordable housing Funding HOME: S555,000
Description To maintain affordable housing in the City, these funds will be used towards a new affordable housing development.
Target Date 6/30/2025
Estimate the number and
type of families that will
benefit from the
proposed activities
1 Unit
Location Description Citywide
Planned Activities To maintain affordable housing in the City, these funds will be used towards new affordable housing development.
13 Project Name CHDO SET ASIDE
Target Area Citywide
Goals Supported Housing
Needs Addressed Preserve the supply of affordable housing Funding HOME:5111,000
Description At least 15 percent of HOME Investment Partnerships Program (HOME) funds must be set aside for specific activities to be undertaken by a special type of nonprofit called a Community Housing Development Organization (CHDO).
Target Date 6/30/2025
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Estimate the number and
type of families that will
benefit from the
proposed activities
N/A
Location Description Citywide
Planned Activities At least 15 percent of HOME Investment Partnerships Program (HOME) funds must be set aside for specific activities to be undertaken by a special type of nonprofit called a Community Housing Development Organization (CHDO).
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AP-50 Geographic Distribution - 91.220(f)
Description of the geographic areas of the entitlement (including areas of low-income and minority concentration) where assistance will be directed.
HUD-funded activities are limited to the City's low-and moderate-income areas or residents.
Areas of the City outside of the CDBG low-and moderate-income areas will benefit from activities that are limited-clientele in nature, i.e., a person/household can benefit from a federally assisted program provided they meet the program's eligibility criteria. Eligibility is typically established by household income and household size.
CDBG program funds will be expended based on program criteria. For example, public services are available on a citywide basis for qualified beneficiaries; fair housing and program administration activities will also be carried out on a citywide basis.
HOME funds will be utilized towards the construction of affordable housing development.
Geographic Distribution
Target Area Percentage of Funds
Citywide 100
Table 8 - Geographic Distribution
Rationale for the priorities for allocating investments geographically.
As most of the City's residential areas are made up of low- and moderate-income households, the City distributes their allocation citywide.
Discussion
The City anticipates spending at least 70 percent of its entitlement funds in target areas, including areas that have low-and moderate-income concentrations or minority concentrations.
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Affordable Housing
AP-55 Affordable Housing - 91.220(g)
Introduction
One of the greatest impediments to affordable housing is the low ratio of available federal and state resources to the high need of affordable housing needs.
As there are limited opportunities and funding available to provide affordable housing opportunities, the City consistently seeks new partnerships to increase the affordable housing options in the city. Ways that the City addressed affordable housing needs include the following programs:
Housing Choice Voucher Program: The City will continue to provide rental assistance to extremely low- and low-income households through the South Gate Housing Authority's Housing Choice Voucher Program. Renter-households will be assisted, which will include elderly, single- parent, and disabled special needs households.
Fair Housing Program: The City's Fair Housing Program is administered by the Fair Housing Foundation, who provide fair housing services and landlord/tenant information to participants who request counseling, resource referral, complaint investigation, and public education on all forms of housing discrimination. Renter-households will be assisted, which will include elderly, single-parent, and disabled special needs households. However, these are not counted toward the affordable housing goals.
Homeowner Rehabilitation Program: This program provides deferred loans to qualified homeowners for rehabilitation on their properties. The property must be brought up to certain housing standards as part of the rehabilitation assistance.
One Year Goals for the Number of Households to be Supported Homeless 0
Non-Homeless 6
Special-Needs 4
Total 10
Table 9 - One Year Goals for Affordable Housing by Support Requirement Annual Action Plan 29
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One Year Goals for the Number of Households Supported Through RentalAssistance 0
The Production of New Units 0
RehabofExistingUnits 10
AcquisitionofExistingUnits 0
Total 10
Table 10 - One Year Goals for Affordable Housing by Support Type Discussion
The Consolidated Plan identifies a high priority need to expand the supply of affordable housing and a high priority need to preserve the supply of affordable housing. During the 2024-2025 program year, the City will invest CDBG and HOME funds in the preservation of affordable housing units. Specifically, HOME funds will be used to support affordable housing projects.
Annual Action Plan 30
OMB Control No: 2506-0117 (exp. 09/30/2021)
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AP-60 Public Housing - 91.220(h)
Introduction
There is no public housing in the City of South Gate.
Actions planned during the next year to address the need for public housing.
Not Applicable - The City does not have public housing.
Actions to encourage public housing residents to become more involved in management and participate in homeownership.
Not Applicable - The City does not have public housing.
If the PHA is designated as troubled, describe the way financial assistance will be provided or other assistance.
Not Applicable
Discussion
Not Applicable
Annual Action Plan 31
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AP-65 Homeless and Other Special Needs Activities - 91.220(i) Introduction
The City is located within the Los Angeles Homeless Services Authority (LAHSA) Continuum. The continuum provides oversight of federal homeless assistance dollars and collaborates with local communities to provide the best service to residents who are homeless. The Los Angeles Continuum conducts quarterly community meetings, and when appropriate the City attends and participates in these meetings.
South Gate residents who are of low-to-moderate income and at risk of experiencing homelessness will receive assistance to obtain and maintain housing stability through CDBG funded activities. Services provided may include income payments for low-income eligible residents, case management, and referrals for housing support.
Describe the jurisdiction's one-year goals and actions for reducing and ending homelessness including reaching out to homeless persons (especially unsheltered persons) and assessing their individual needs.
The Salvation Army Bell Shelter operates a homeless outreach program which consists of a mobile outreach team. In coordination with the South Gate Police Department Liaison and personnel from the Bell Shelter street outreach efforts by vehicle and foot are undertaken.
Street outreach, case management, and referrals are provided to homeless families and individuals through this program. Homeless clients are provided guidance in the identification of barriers to overcoming homelessness and the development of a plan to address these challenges. The team then assists clients at a highly supportive level to address those needs which may include accessing mainstream services, increasing income, developing self- determination, and accessing shelter and housing.
Addressing the emergency shelter and transitional housing needs of homeless persons.
Locally, the Salvation Army Bell Shelter operates a comprehensive program that offers transitional care for up to 350 homeless men and women. The goal of the Bell Shelter is to meet the needs of the homeless population by addressing the myriad of reasons why people become homeless and assisting them in developing a higher quality oflife through independence. Services offered include emergency shelter, transitional housing, substance abuse rehabilitation, case management, counseling, on-site health care & medical referrals, HIV/AIDS education, ESL Annual Action Plan 32
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classes, computer training, vocational assistance, job referrals and life skills classes.
The South Gate Domestic Family Violence Education and Prevention program administered by the South Gate Police Department provides shelter, court advocacy, counseling, 24-hour hotline, crisis intervention, support groups and case management to domestic and sexual abuse victims.
Helping homeless persons (especially chronically homeless individuals and families, families with children, veterans and their families, and unaccompanied youth) make the transition to permanent housing and independent living, including shortening the period of time that individuals and families experience homelessness, facilitating access for homeless individuals and families to affordable housing units, and preventing individuals and families who were recently homeless from becoming homeless again.
The City of South Gate collaborates with different organizations to prevent the recurrence of homelessness. The City partners with local organizations and non-profits to offer various programs and resources for residents experiencing homelessness or who are at risk of homelessness. Locally, the Salvation Army Bell Shelter helps address the gaps in the City and the need for services to residents experiencing homelessness, unemployment, substance abuse, and other social and health resources. Available services vary from case management, transportation and employment services, health and mental health referrals, life skills, individual and group therapy, social and recreational activities, needs assessment, benefits advocacy, and permanent housing assistance. The Salvation Army Bell Shelter works directly with the South Gate Police Department, Community Development, Parks and Recreation, the Housing Authority, and other local organizations to promote services and reach target populations.
To help prevent the recurrence of homelessness the program helps participants search for permanent housing and seek employment to maintain their home. Their case management team conducts workshops to assist residents with building resumes and career prep.
Participants are referred to job openings and job fairs and are encouraged to participate in extracurricular activities such as attending monthly meetings, events, and volunteering at the community garden.
To combat homelessness, the City funds a comprehensive Fair Housing Program that offers education and outreach activities for tenants, landlords, and owners. Education consists of workshops, presentations, community meetings, and training. The purpose of this program is to guide all parties on their rights, laws, and responsibilities. The Fair Housing Program conducts Annual Action Plan 33
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rental counseling workshops to those who are concerned with evictions, rent increases and notices.
Helping low-income individuals and families avoid becoming homeless, especially extremely low-income individuals and families and those who are: being discharged from publicly funded institutions and systems of care (such as health care facilities, mental health facilities, foster care and other youth facilities, and corrections programs and institutions); or, receiving assistance from public or private agencies that address housing, health, social services, employment, education, or youth needs.
The South Gate Police Department has different practice methods for individuals being discharged and who are seeking support services. The Police Department links individuals to available resources and agencies in the City including People Assisting the Homeless (PATH), which is an organization that helps individuals experiencing homelessness in their community.
PATH distributes food, and clothing to residents, connects residents to permanent housing, and provides ongoing supportive services for residents in need. PATH has an outreach and prevention team that works in areas where homelessness is more prevalent and connects individuals with employment. The South Gate Police Department refers individuals who are being discharged from jail to PATH for interim housing, rapid rehousing, employment, and other permanent supportive services.
There are no hospitals in the City of South Gate, therefore the City does not often have individuals who are being discharged from hospitals. However, if individuals are seeking information the Police Department reaches out to PATH staff for resources, and supportive services. Additionally, if an individual is in custody and needs medical assistance, the City works with the Department of Mental Health to address their needs and until they are returned to custody after treatment. The Department currently includes these practices as part of patrol officers" duty.
Discussion
There are a variety of agencies in the region that provide housing options and case management assistance including those returning from mental and physical health institutions. They provide the option of living independently in a group setting. They are:
* Rio Hondo Temporary Home, Norwalk - Provides emergency food and transitional shelter for families with children in the Cerritos, Downey, La Mirada, Montebello, Norwalk, Pico Rivera, Santa Fe Springs and Whittier areas. There are no geographical Annual Action Plan 34
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restrictions for residents.
* Santa Fe Springs Transitional Living Center, Whittier - Provides shelter for homeless families in transition, most of whom are single parents or victims of domestic violence and substance abuse, in Los Angeles County.
* Hospitality Housing, Whittier - Provides homeless support services for single adults 18 years and older and families with children.
* Birch Grove Homes, Norwalk - Provides supportive services to persons in an existing permanent housing program for persons with mental health disabilities. * Denker House/Harvest House, scattered sites -Provides supportive services in an existing permanent housing program for persons with disabilities. * Homes for Life Foundation, Norwalk - Provides permanent housing to eight persons with mental health disabilities in eight one-bedroom apartment style units. * Su Casa Domestic Violence Network, Lakewood - Provides crisis intervention service for domestic violence victims and their children, for a maximum of 30 consecutive days. * Salvation Army, Bell Shelter - Provides emergency shelter services and transitional care for up to 350 homeless men and women.
* The Southern California Rehabilitation Services - An independent living resource center in Downey offers programs to eligible South Gate residents that provide people with the tools to learn how to live independently including cooking, budgeting, reading, band finding employment. They also offer disability assistance for improvements to homes for people with disabilities.
Annual Action Plan 35
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AP-75 Barriers to affordable housing - 91.220(j)
Introduction:
The impact on housing affordability disproportionately affects those who are lower income. HUD considers a housing unit affordable if the occupant household expends no more than 30% of its income on housing cost. In the situation where the household expends greater than 30% of its income on housing cost, the household is considered cost burdened. Cost burdened households have fewer financial resources to meet other basic needs (food, clothing, transportation, medical, etc.), less resources to properly maintain the housing structure, and are at greater risk for foreclosure or eviction.
Recent sales data for South Gate shows that housing prices continue to increase, while household incomes have failed to keep pace with home prices. There are also other factors that create barriers to affordable housing growth. The barriers that typically affect housing costs are as follows:
* Lack of developable land and/or where development is due to zoning. * Cost of developable land and construction.
* Credit worthiness of potential buyers for homeownership. * Social opinions discouraging affordable development in particular neighborhoods (Not in My Backyard "NIMBY").
* Lack of responsible landlords for maintaining safe and clean-living conditions. * Credit worthiness of potential renters.
Actions it planned to remove or ameliorate the negative effects of public policies that serve as barriers to affordable housing such as land use controls, tax policies affecting land, zoning ordinances, building codes, fees and charges, growth limitations, and policies affecting the return on residential investment.
The City adopted General Plan 2035 in 2009. As part of the General Plan update, a new concept in dealing with land use and development standards was introduced. Unlike traditional Euclidean land use and zoning system, the proposed South Gate General Plan uses a "form based" system to determine location and intensity of uses.
The new Zoning Ordinance update was adopted in March 2015. The City's current estimated number of dwelling units is about 24,242 units. The Zoning Update has created density and Annual Action Plan 36
OMB Control No: 2506-0117 iexp. 09/30/2021)
41 50
development standards to accommodate an estimated growth of over 4,538 units over the next 25 years. This growth rate of additional units will help alleviate the projected population and issues of affordability.
Annual Action Plan 37
OMB Control No: 2506-C)117 (exp. 09/30/2021)
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AP-85 0ther Actions - 91.220(k)
Introduction:
The City consulted the goals set up as part of the 2020-2025 Consolidated Plan and input from the community and Citizen Advisory Committee to determine the activities and goals outlined in the FY 2024-2025 Annual Action Plan. The goals of the 2020-2025 Consolidated plan included:
* Preservation and rehabilitation of the existing housing stock using CDBG and HOME funds.
* Expand and improve the quality and quantity of public service programs. * Promote fair housing.
* Provide infrastructure and public facility funding. * Target code enforcement activities to public health and safety issues. * Provide financial assistance for the rehabilitation of commercial faqade improvements. * Economic Development activities that provide small business support and retention * Housing rehabilitation.
* Neighborhood Preservation.
* Public Services, including mental health support, domestic violence prevention, and substance abuse services.
Actions planned to address obstacles to meeting underserved needs.
The primary obstacles to meeting the underserved needs of low-and moderate-income people include lack of funding from federal, state, and other local sources, the high cost of housing that is not affordable to low-and moderate-income people and the lack of availability of home improvement financing in the private lending industry. To address these obstacles, the City is investing HOME funds towards the construction of affordable housing development. CDBG funds are being allocated to organizations that provide public and neighborhood services to low-and moderate-income people and those with special needs that can help offset other household costs that create financial burdens for individuals.
Actions planned to foster and maintain affordable housing.
The City has been active in providing affordable housing through awarding HOME funds to Developers for senior citizen rental units, and acquisition and rehabilitation of deteriorated rental units for lower income households. The City also provides rental assistance through the Housing Choice Voucher Program to very low-income households through its Housing Authority. The City certifies Community Housing Development Organizations (CHDOs) to provide affordable housing Annual Action Plan 38
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using low HOME rents.
Actions planned to reduce lead-based paint hazards.
All units in a project assisted with CDBG and HOME funds must comply with the regulations found at 24 CFR Part 35. The purpose of the regulation is to identify and address lead-based paint hazards before children are exposed to lead. This requirement has been in effect since September 15, 2000.
Lead-based paint hazards are found in homes built prior to 1978. All Grantees and Participating Jurisdictions must assess homes built prior to 1978 for lead hazards and conduct interim or abatement controls as warranted. Most of the homes in South Gate were built prior to 1978 and have lead-based paint somewhere on the structure. Lead based paint is found on windowsills, doorways or under the eaves. The hazards of lead-based paint are primarily to young children uptoage6,astheyaremorelikelytoeatpeelingpaint. Leadadverselyaffectsthedevelopment of a child's brain and other organs.
The City's strategy in addressing lead-based paint hazards involves an educational component for the public, printed outreach information to those households in the "lead hot zones" as identified by the County, and printed information are given to participants in the City's rehabilitation loan programs.
The City offers a Residential Rehabilitation Program which focuses on rehabilitating existing housing stock throughout the City covering interior and exterior home improvement and/or repairs. In combination with the Residential Rehabilitation Program, the City offers SI0,000 grants to be used for termite and lead abatement. Lead assessments are conducted on all housing projects, both single family and multi-family units. All HCV participant rental units are inspected annually.
Actions planned to reduce the number of poverty-level families.
The implementation of CDBG and HOME activities meeting the goals established in the 2020- 2025 Consolidated Plan and this Annual Action Plan will help to reduce the number of poverty level families by:
@ Supporting activities that expand the supply of housing that is affordable to low-and moderate-income households.
* Supporting activities that preserve the supply of decent housing that is affordable to low- Annual Action Plan 39
OMB Control No: 2506-0117 iexp. 09/30/2021)
44 53
and moderate-income households.
* Supportingacontinuumofhousingandpublicserviceprogramstopreventandeliminate homelessness.
* Supporting housing preservation programs that assure low-income households have a safe, decent, and sanitary place to live; and
* Supporting public services for low-and moderate-income residents including those with special needs and those at risk of homelessness offered by nonprofit organizations.
In addition to these local efforts, mainstream state and federal resources also contribute to reducing the number of individuals and families in poverty. In California, the primary programs that assist families in poverty are CalWORKs, CalFresh (formerly food stamps) and MediCal. Together, these programs provide individuals and families with employment assistance, subsidies for food, medical care, childcare, and cash payments to meet basic needs such as housing, nutrition, and transportation. Other services are available to assist persons suffering from substance abuse, domestic violence, and mental illness.
Actions planned to develop institutional structure.
The City has tried to develop an institutional structure that will help identify and access resources toimprovethecommunity. TheCitywillcontinuetoworkwithnonprofitentitiestodeliverpublic services. As a member of the LAHSA, the City will provide critical information to the County of Los Angeles for preparation of the County"s Continuum of Care Homeless Assistance grant applications. South Gate will provide critical information regarding mainstream funds the City will make available to serve the homeless and will also assist in identifying and prioritizing gaps and needs in the regional system of care.
Externally, the City is in direct contact with the Chamber of Commerce and the Tweedy Mile Business Association, both of which represent private industry. The City also partners with various nonprofit organizations to provide affordable housing opportunities. These nonprofits act as subrecipients to provide a variety of services to the community.
Actions planned to enhance coordination between public and private housing and social service agenCleS.
The City of South Gate is proactive in coordinating with assisted-housing providers, particularly the City's Housing Authority, homeless assistance centers and programs, youth and family oriented social service organizations and health organizations which provide outreach and Annual Action Plan 40
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45 54
counseling.
The Community Development department is comprised of Building & Safety, Planning, Housing and Code Enforcement Divisions, who work closely together to coordinate programs with local social service providers to either meet needs directly or to make referrals to outside services, as necessary. Currently, staff make referrals based upon the available known assistance data.
Discussion:
See discussion above.
Annual Action Plan 41
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46 55
Program Specific Requirements
AP-90 Program Specific Requirements - 91.220(1)(1,2,4) Introduction:
in the implementation of programs and activities under the 2024-2025 Annual Action Plan, the City of South Gate will follow all HUD regulations concerning the use of program income, forms ofinvestment, overall low-and moderate-income benefit for the CDBG program and recapture requirements for the HOME program.
Community Development Block Grant Program (CDBG)
Reference 24 CFR 91.220(1)(1)
Projects planned with all CDBG funds expected to be available during the year are identified in the Projects Table. The following identifies program income that is available for use that is included in projects to be carried out.
1. The total amount of program income that will have been received before the start of the next program year and that has not yet been reprogrammed
2. The amount of proceeds from section 108 loan guarantees that will be used during the year to address the priority needs and specific objectives identified in the grantee's strategic plan
3. The amount of surplus funds from urban renewal settlements
4. The amount of any grant funds returned to the line of credit for which the planned use has not been inc!uded in a prior statement or plan.
5. The amount of income from float-funded activities Total Program Income
o
o
Other CDBG Requirements
1. The amount of urgent need activities o
Annual Action Plan 42
OMB Control No: 2506-0117 (exp. 09/30/2021)
47 56
HOME Investment Partnership Program (HOME)
Reference 24 CFR 91.220(1%2)
1. A description of other forms of investment being used beyond those identified in Section 92.205 is as follows:
The City will not use any other forms of investment beyond those identified in Section 92.205.
2. A description of the guidelines that will be used for resale or recapture of HOME funds when used for homebuyer activities as required in 92.254, is as follows:
In FY 2024-2025, the City does not plan to use HOME funds for homebuyer down payment assistance. However, some homebuyers that were assisted in prior years may decide to sell their homes during the upcoming program year. In that event, the City will enforce the resale and recapture guidelines.
3. A description of the guidelines for resale or recapture that ensures the affordability of units acquired with HOME funds? See 24 CFR 92.254(a)(4) are as follows:
These can be found in the City's "HOME Investment Partnerships Program Policies and Procedures Manual" which have previously been submitted to HUD.
4. Plans for using HOME funds to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds along with a description of the refinancing guidelines required that will be used under 24 CFR 92.206(b), are as follows:
The City does not intend to use HOME funds under the 2024-2025 Annual Action Plan to refinance existing debt secured by multifamily housing that is rehabilitated with HOME funds.
Annual Action Plan 43
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SOUTH GATE PRESS
Thlg space for Tlllng stamp only
3731 WILSHIRE BLVD STE 840, LO8 ANGELES, CA 90015
Telephone (323) 556-5720 / Fax (213) 834-0584
Yodit Glaze, City Clerk
CITY OF SOUTH GATE /CITY CLERK
8650 CALIFORNiA AVE
SOUTH GATE, CA - 90280
PROOF OF PUBLICATION
(2015.5 c.c.p.)
State of Callfornia
County of LOS ANGELES
NOtlCeTYPe: HRG-NOTICEOFHEARING
Ad Description:
CDBG and HOME 2024-2025 Annual At,tion Plan (English) I am a citizen of the United States and a resident of the State of California I am over the age of eighteen years, and nota party to or intereated in the above entitled matter. I am the principal clerk of the printer and publisher of the SOUTH GATE PRESS, a newspaper published in the English language In the city of SOUTH GATE, county of LOS ANGELES, and adjudged a newspaper of general clrculatlon as defined by the laws of the Slate of California by the Superior Court of the Counly of LO8 ANGELES, State of Callfornia, under date 04/19/1929,CaseNo.2734l5. Thatthenotice,ofwhichtheannexedlsa printed copy, has been published in each regular and entire issue of said newspaper and not in ai'iy supplement thereof on the following dates, to-wit:
03/07/2024
Exscuted on: 03/07/2024
At Los Angeles, Callrornia
i certlfy (or declare) under penalty or perJury that the foregolng Is true and correct.
Slgnature
11111111111111111111111111111111111111111111111111111111111111111111111111 SOLttloGi:WoCfift'yeClerk
MAR 1 3 202/1
FILED
PRE#: 3790544
PUBLIC NOTiCE
CITY OF SOUTH GATE
CITY COUNCIL
NOTICE OF PUBllC H EMING
The aly Councll of ihe Clky of 8oulh Gate will
nducl e publlc hearing concttmlng the drsll
deectlbes how lhe ally wlll ullllze Itxleral money
dudng the nexl fiscal year to meet the goals and
oFP!ecYtlveeas, ca0pnpB%olveldadle7Pllhane. Clly Coundl In the Hearing Date: Tuesday, Apnl 9, 2024
Time: 6:30 p.m. or as soon IheteeTtei as the
tnalter maV 5!1 heam
Place: CllyHall Councll Chtimbets
C,lly Of 8oiilh Gale
86!iO Calllomla Avenue
Soulh Gale. (,A 90280
HOME funds lot FY 2024-2026.
aclMlles may be added, Ingeased, reduced, or
ellmlnaled by ihe Clly Council al Ihe Ilme of lliti
heailng. Tlils dyatt Annuel AcUon Pian civers the
pedod ol July 1, 2024, throuOh June 30, 202!i,
0lher)Vlse knOWl'i a8 the 2024 pmOT9m 7eal.
Publlc Review and Coniment Parlod: Thg Drafl
Fiscal Year 2024-2D26 Annual Acllon Plan wlll be
Gales'a webslle at
hltps4/www.dtyoTsoulhOale.oiglGovemmenVDep
Cammunlly Development oepenmen5 Mondsy
fhmuph Thursday. 10:00 A. M. Io 2:00 P. M.i or
b9 lelephonlng (323) 563-9535.
The Clly of 8oulh Gale encourages clllzen
srlldpallon In the plannlng process. A Publk.
lestlng Wlll b!i Oeld On April 9, 2024, (130 p m. !II
Invlled lo the Publk. Headng lo be heard. In
addlllon, iviitien cornmenls may be submllled to
Manager, 8850 CallJomla Avenue, Soulh Gale,
CA 90280.
COnmCl: Carol Avetelli Htiusln9 Manager
Phone: (3231 563J1535
E-mall: [email protected]
Malllng Addresa: Communlly Development
lepanmenl
Cllv of Soulh Gale
8860 Callloinla Avenue
South Gate. (:A €l02a0-3076
Aecesslblllly: If Is the liilentlon ol the Clty oT
South Gate lo tiamply with the Ametlcans wllh
Dlsablllllss Act (ADA) In all pspects. The City of
Saulh Gale wlll allempl to accammidgle
atlendees In every reasonable manner. Pmasg
ttinlacl el leasl 72 hours pnot to the above
s6eduletl publlc hearing to eslabl1ah need and lo
delennlne IT eddluonal actiommodellon Is
feaslble
E8PAF10L
317124
PRE-379D544#
SOUTH (tATE PRESS
Emall
58 PUBLIC NOTICF,
CITY OF SOUTH (,ATE
CITY COUNCIL
NOTICE OF PtTBLIC HEARING
Office of the
mouth Gate City Clerk
MAR 0 4 2024
F]LEo
The City Council of the City ofSouth Gate will conduct a public hearing concerning the draft Community Developmeixt Block Grant (CDBG) and HOME Investment Partnership (HOME) 2024-2025 Annual Action Plan,As an entitlement jurisdiction, the City is required to prepare md submit to HUD an Annual Action Plan thatdescribes how the City will utilize federal money during tha next ical year to meet the goals and objectivesapptoved by the City Council in the Five-Year Consolidated Plan.
Hearing Date: Tuesday, April 9, 2024
Timei 6:30 pan. or as soon tliereafter as the matter may be heard Place: City Hall Council Chambers
City of Soutb Gate
8650 California Avenue
South Gate, CA 90280
The City anticipates receiving approximately $1,400,000 in CDBG fimds aixd $740,000 in HOME funds for FY 2024-2025.
The detailed budget breakdown is available in the Annual Action Plan. The proposed budgeted activities may beadded, increased, reduced, or elitninated by the City Council at the time of the hearing. This draft Annual Action Plancovers the period of July 1, 2024, kough June 30, 2025, otheiwise known as the 2024 program year.
Public Reyiew and Comment Period: The Draft Fiscal Year 2024-2025 Annual Action Plan will be available for a30-day public review and comment period beginning on March 11, 2024, and ending on April 9, 2024. Thesedocuinents will be avaiIable for public review on the City of Soutb Gates's website at https://www.cityofsouthgate.org/Govetnment/Departtnents/Community-Development. Additional infortnation maybe obtained from the staff of the Counity Development Department, Monday through Thursday, 10:00 A. M. to2:00 P. M.i Or by telephoning (323) 563-9535.
The City of South Gate encourages citizen patticipation in the platming process. A Public Hearing will be held onApril 9, 2024, 6:30 p.m. at City Hall Council Chambers.
Inyitation to be heard: All interested persons are invited to the Public Hearing to be heard. In addition, writtencoinrnents may be submitted to the City Council prior to the hearing. Coinrnents may be submitted in writing bymailing comments to City of Soudi Gate, Community Development Depart'inent, Athi: Carol Averell, HousingManager, 8650 California Avenue, South Gate, CA 90280.
Those desiring a copy ofthe staff report or further tnformation related to this project should contact:
Contact:
Phone;
B-mail:
Carol Ayerell, Housing Manager
(323) 563-9535
caverell2@,sogate.org
Mailing Address: Community Development Departmettt
City of South Gate
8650 California Avenue
South Gate, CA 90280-3075
Accessibnity: It is the intention of the City of South Gate to comply with the Americans withDisabilities Act (ADA)in all respects. The City of South Gate win attempt to accomtnodate attendees in every reasonable manner. Pleasecontact at least 72 hours prior to the above scheduled pxiblic hearing to establish need and to determine if additionalaccointnodation is feasible.
E8PANOL
Informaci6n en Bspafiol acerca de esta junta puede ser obtenida llamando al (323) 563-9535 Published: March 8, 2024
50 59
SOUTH GATE PRESS Thls spsce loi flllng stamp only
373"l WILSHIRE BLVD STE 84€), LO8 ANCiELES, CA 90015 Telephone (323) 556-5720 / Fax (213) 834-0584
Office of the
South Gate city Clerk
MAR 1 3 2024
FNLED
Yodit Glaze, City Clerk
CITY OF SOUTH GATE /CITY CLERK
8650 CALIFORNIA AVE
SOUTH GATE, CA - 90280
PROOF OF PUBLICATION
(2m5.5 C.C.P.)
State of Californla
County of LOS ANGELES
NoticeTYPe: HRG-NOTICEOFHEARING
A(I Description:
CDBG and HOME 2024-2025 Annual Action Plan (Spanish) I om a citizen of the Unlted States and a resident of the State of California; I am over the age of eighteen years, and not a party to or interested In the above entllled matter. I am the principal clerk of the printer and publisher of the SOUTH GATE PRESS, a newspaper published in the English language in the dty of SOUTH GATE, county of LOS ANGELES, and adjudged a newspapsr of general circulation as defined by the laws of the State of California by the Superior Court of the County of LOS ANGELES, State of California, under date 04/1971929, Case No. 273415. That the notics, of whk,h the annexed is a prlnted copy, has been publlshed in each regular and entlre Issue of said newspaper and not in any supplement thereoT on the following dates, to-wit:
03/C17/2024
Executed on: 03/07/2024
At Los Angsms, Cslifornla
I certlfy (or declare) under penalty or pedury that the roregolng Is true and correct.
Signature
llllllllllllilllllllllllllllllllllllllllllllllllilllllllllllllllllllllll AOOOOO6712484
PRE#: 3790543
AV180 PUBLtCO
(;IUDAD DE 80UTH GATE
AYUNTAMIENTO
AV180 DE AUOIENCIA P(!BLIC A
EI Concelo Munldpal de la Cludad de 8oulh GaleIlevard a csbo una audlenda p6bllca sabre el bOffadOr del Plan da AOCl6n Ant+al dtil anO kcal
2024-2025 para los progiames de 8ubvencl5n en
Bloqiie para el Desarroilo Comunltatio ((iDBG) y
Is Asoi.lacl6n da lnvetsl6n HOME (HOME
utildOS (HUD), as requlere que la Oluoad prepare
y presenle un Plan de Azl6n Anual que oesctlba
oomo la Cludad utlllzai6 los fondos tsderalea
Munlalpal en el Plan Consolldado de Clnco Atlas.
Fecha de la audlenclc martea. 9 do abill do
2024
Hara: 6:30 p.m. o tan pronto como se estiuche el
asunlo
LuOar: (Jmaras dtil Corn:elo del Ayunlamlenlo
Cludad de 8oulh Gate
8850 Calffamm Aveniie
Le eluded anlldpa redblr apmxlmedamenle
i400,000 an fondos (J)BG y $740.000 enTondos HOME paia el ario flsoal 2024-2025.
El prssupuesto delellada eslt) dlsponible en el
Plan de Am6n Anusl. Lap adiVldades
conocldo coma el ego piogiem61lco 2024.
Peilodo de rovlsi6n y coman)arios p6bllaos
El boyyador del olan de accl6n anusl del snri
fiscal 2024-2a26 eslaiA dlspoiilbls pats un
peilodo de revlsl6n y comenlarlos p(bllcos de 30
dlas que comenzarJi el ll do trerzo de 2024 y
flnallzar* el 9 de ebill de 2024. Es(os
Gale en
hllps:/lwww.cllyoisoulhgale.tirg/GovemmenUDep
Departamenlo de Dasanollo Comunllano. de
lungs a luevea, de TO).QO a. m. a 2:00 p. m.. o
udadana en el pmceso do planlllcacl6n. una
audlencla o(ibllca se Ilevar(i a ceba el 9 de elml
"deel"Aoy"u"n'la"m'aloenplo'm en las CArneias del Coiicelo audlencla pebllw pare aer escuchadss. AdemAs.
se piieden preasnlar comenlarlos por escilio sl
Concelo Munlclpal anles de la audlencla. Los
Admlnlsltatkxa de Vlvlenda, 8850 Callroinla
Avenue. South Gale. CA (10280.
VIVlenda
Tel6Tono: t32W 563-9535
Coneo eleclr6nlco: [email protected]
DClOiemwunl61lna.opostal: Depadamenla de €esetrollo
Cludad do South Gale
8660 Cellfomla Avenue
South Gale. GA 9(1280-3075
Aeaealbllldadi Ea la Intend6n do la Cludad da
South Gale cumpllr mn Is Lay de
Esfadounldenses can €Iscepacldades (ADA) en
todos los aspecios. La Cludad de South Gale
Emall
60 IntentarA acomodar a los aslslenlss do lodae Iss
mhoa,naei9rea%lreaszodnealbalsasu,[':leonmculanlpquH:lsl:a aplmmge,naomsa7d2a snlenairnente para eslablecet la necesldad y
de}eimlnar sl es facllble teallzai titmplaalonaa
gdlctonales.
ENGL18H:
Infoimatlon In Spanlsh about lhls meeting csn be
obPulballln@eaddob!caa(Nzl,ngO[322032)4563-9!i35
3/7/24
PRE-3790543#
8011TH GATE PRES8
61 AVISO PThLICO
CIUDAD DE SOUTH GATE
AYUNTAMIENTO
Offfce ot the
eautai Gada Ofiay Clam
MAR (a4 2fQ4
AVISO DE AUDIKNCIA PUBLICA F!ILEU=
El Concejo Municipal de la Ciudad de South Gate llevarA a cabo una audiencia p6blica sobre el borrador del Plan deAcci6n Anual del afio fiscal 2024-2025 para los programas de 8ubvenci6n en Bloque pata el Desarrollo Comunitario (CDBG) y la Asociaci6n de Inversi6n HOME (HOME), Conforme las reglas del Departamento de Vivienda yDesarrollo tJtbano de los Estados Unidos (Run), se requisre que la Ciudad prepare y presente un Plan de Acci6nAnual que describa c6mo la Ciudad utilizarA los fondos federales duratite el pr6ximo afio fiscal para cumplir con lasmetas y objetiyos aprobados por el Concejo Municipal en elPlan Consolidado de Cinco Afios.
Pecha de la audiencia: maites, 9 de abril de 2024
Hora: 6:30 p.m, o tan pronto como se escuche el asunto Lugar: CAmaras del Concejo del Ayuntamiento
Cfudad de South Gate
8650 California Avenue
South Gate, CA 90280
La ciudad an&ipa yecibir aproximadamente $1,400,000 en fondos CDBG y $740,000 en fondos HOME para el afio fiscal 2024-2025.
Blpresupuesto detallado estA disponible en el Plan de Acci6nAnual. Lag actividades propuestas pueden ser agregadas,aumentadas, reducidas o eliminadas por el Concejo Municipal en el momento de la audiencia. Este borrador del Plande Acci6n Anual cubre el periodo del 1 de juIio de 2024 al 30 de junio de 2025, tambi6n conocido como el affoprogramAtico 2024.
Perfodo de revisi(in y comentaiaios pnblicos: El borrador del plan de acci6n anual del afio fiscal 2024-2025 estarfidisponible para un perlodo de revisi6n y comentartos p4blicos de 30 d{as que comenzarA el 11 de marzo de 2024 yrmalizsxA el 9 de abril de 2024. Estos documentos estarAn disponibles para revisi6n p'6blica en el sitio web de laCiudad de Souti Gate en https://www.cityofsouthgate.org/Go'vernment/Departments/Commt'inity-Development. Sepuede obtener informaci6n adicional del personal del Departamento deDesarrollo Comunitatio, de lunes a jueves, de10:00 a. m. a 2:00 p. m., o llamando an(323) 563-9535.
La Ciudad de South Gate invita la participaci6n ciudadana en el proceso de platfficaci6n. Una audiencia p6blica senevarA a cabo el 9 de abril de 2024, 6:30 p,m. en las CAmams del Concejo del Ayuntamiento.
Invitaci6n n ser egcucliadas: Todas las personas interesadas estk invitadas a la audiencia p4blica para serescuchadas. Adam's, se pueden presentar comentarios por escrito al Concejo Municipal antes de la audiencia. Loscomentarios pueden ei'iviarse por escrito enviando comentarias por correo a la ciudad de South Gate, Departamento deDesarrollo Comunitario, ATm: Carol Averell, Administradora de Vivienda, 8650 Califoriia Avenue, South Gate,CA 9028(1.
Aquellos (1116 deseeti una copia del informe u otra infortnaci6n relacionada con este proyecto pueden ponerse encontacto con:
Contacto:
Tel6fono:
Coneo eIectr6nico:
Carol Averell, Administradora de Vivienda
(323) 563-9535
[email protected]
Direcci6n postal: Departamento de Desarrollo Comunitario Ciudad de South Gate
8650 Califomia A'venue
South Gate, CA 90280-3075
Acccsibilidadi Es la intenci6n da la Ciudad de Sorith Gate cumplir con la Ley de Estadounidenses conDiscapacidades (ADA) en todos los aspectos. La Ciudad de South Gate intentarA acomodar a los asistentas de todaslas maneras razonables. Comuiquese al menos 72 horas antes de la audiencia pThblicaprogramada anteriormentepara establecer la necesidad y deteininar si es factiMe realizar adaptaciones adicionales. 53 62
ENGLISH:
Information in Spanish about ffiis meeting can be obtained by calling (323) 563-9535.
PuMteado: marzo 8, 2024
54 63
CITYMANAGER'S oFFlCE Item No. 2
APR 03 202't
CITY COUNCIL
AGENDA BULL
City Manager:
For the Regular Meeting of: April 9, 2024
g Department: City Manager's Officq
City Matiager:
Rob ouston Rob H uston
SUBJECT: ORDINANCE N0. 2024-01-CC INCREASING CITY COUNCIL AND CITY
TRE,ASURER SALARY LF,VELS
PURPOSE: To consider adopting Ordinance No. 2024-01-CC amending the City Council and the City Treasurer salary levels.
RECOMMENDED ACTION: The City Council will consider adopting Ordinance No. 2024- 01-CC amending Section 1.04.065.2 (Same - Compensation) of Section 1.04.065 (Salaiy Of Members - Purpose) of Chapter 1.04 (City Council) of Title l (Administration And Personnel) of the South Gate Municipal Code increasing the City Council and the City Treasurer salai'y levels.
FISCAL IMPACT: The salary change recommended is proposed to become effective in December 2024. If enacted as proposed, the City Corincil monthly salaiy would increase from $790 to $1,900 per month resulting in an increase to the current City Council's combined compensation of $5,550 for all 'five members. In addition, the City Treasurer's salaiy is tied to that of the City Council per Section 1.05.065 (City Treasurer - Compensation) which voters approved in November 2000, this change worild result in a monthly increase for the Treasurer of $1,110.
There will be no fiscal impact due to this change for the FY2023-24 budget as the change is not to stait until December of 2024. The budget proposal for FY2024-25 will include a funding request to cover this increase for the coming fiscal year.
ANALYSIS: Senate Bill 329 took effect on January 1, 2024, and provides new pay caps for California City Council members based on City population size. The City Council discussed the new $1,900 monthly cap and directed staff to take action to make a change in their pay to this new level. The City Council determined that moving the City Council and City Treasurer monthly pay to the cap would be a fair level of compensation for work expected and would provide a better financial incentive for new individuals to run for City elected positions in the future.
BACKGROUND: At the March 26, 2024 City Council Meeting, the City Council received information to consider approving a proposed ordinance amending the City Council and the City Treasrirer's salary levels. At the January 9, 2024 City Council meeting, the City Corincil requested a report on the newly passed Senate Bill 329 legislation that sets new City Council pay caps. This new legislation was presented for discussion at the March 12, 2024, City Council meeting. The I
64 new law took effect January 1, 2024, and was authored by Senator Bill Dodd. His explanation for supporting increased pay levels for City Council members was, "No one runs for city council to get rich. But the low levels of pay make it much harder to balance careers and personal obligations with the call to serve their community." He went on to say, "It is especially hard for working people and those from diverse or disadvantaged backgrounds. By allowing councils to adjust their maximum pay to reflect inflation, my bill will remove barriers to achieving more equitable representation in local govennment."
The new law is now a part of Califotania Goveinment Code 36516 which is attached to this repoit.
The new caps range from $950 per month for cities with up to 35,000 in population, to $3,200 per month for cities with populations over 250,000. The cap provided for a city the size of South Gate (approximately 100,000 population), is $1,900 per month which covers cities with populations between 75,000 and 150,000.
The current pay rate for South Gate Corincil members is $790 per montli. A rate of $600 per month was established in 1986 and changed to $650 per month in 2017. The rate was increased to $790 per month in 2022. The City Treasurer receives the same monthly amount as the City Council members.
At the March 12, 2024 City Council meeting, the City Council directed staff to pursue the adoption of an ordinance to increase the compensation for the City Council members and City Treasurer to the new cap limit of $1,900 per month. In order to enact this change, the new law provides the following guidance:
Section 36516 - 4 (G)
(l) For the purposes of this section, a city corincil shall consider the adoption of an ordinance to increase compensation in open session during at least two regular meetings of the city corincil. (2) At the first meeting, the city corincil shall present the proposed ordinance, which shall include findings demonstrating the need for the increased compensation. The ordinance shall not be adopted at the first meeting.
(3) At least seven days after the first meeting, the city council shall hold a second meeting to consider whether to adopt the ordinance.
At the March 26, 2024 City Council Meeting, the City Council approved the proposed ordinance and directed staff to bring the ordinance back for final approval at the April 9, 2024 City Council meeting. A proposed Ordinance is attached to this repoit and includes findings demonstrating the need for increased compensation.
ATTACHMENT: Proposed Ordinance No. 2024-01-CC
2 65
ORDINANCE N0. 2024-01-CC
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, AMENDING SECTION 1.04.065.2 (SAME
COMPENSATION) OF SECTION 1.04.065 (SALARY OF MEMBERS - PURPOSE) OF CHAPTER 1.04 (CITY COUNCIL) OF TITLE l (ADMINISTRATION AND PERSONNEL) OF THE SOUTH GATE
MUNICIPAL CODE INCRF,ASING THE CITY COUNCIL MONTHLY SALARY
WHEREAS, the City may, from time to time, amend the salary and benefits of the various bargaining units and/or elected officials;
WHEREAS, Senate Bill 329 took effect on January 1, 2024, and provides new pay caps for California city council members based on city population size; WHEREAS, the purpose of Senate Bill 329 is intended to promote participation by allowing corincils to adjust their maximum pay to reflect inflation and allow for greater paiticipation by economically disadvantaged individuals in order to remove barriers to achieve more eqriitable representation in local government; WHEREAS, the new law is now codified in Califoinia Government Code 36516, which is attached to this repoit, and reflects that for a city the size of South Gate (approximately 100,000 population), the cap is $1,900 per month which covers cities with populations between 75,000 and 150,000;
WHEREAS, it is the intent of the City Council to adopt this ordinance in advance of the next cycle of elections in November 2024, so that any candidate seeking elected office as a council member may be aware of the increased salary;
WHEREAS, the increase shall also apply to the City Treasurer, whose salary is tied to that of the City Council Members pursuant to South Gate Municipal Code 1.05.056 (City Treasurer - Compensation);
WHEREAS, pursuant to California Government Code Section 36516.4(G) the City Council sliall consider the adoption of this ordinance to increase compensation in open session during at least two (2) regular meetings of the city council, such that (i) at the first meeting, the City Council shall present the proposed ordinance, which shall include findings demonstrating the need for the increased compensation and (ii) at least seven (7) days after the first meeting, the City Council shall hold a second meeting to consider whether to adopt the ordinance; and WHEREAS, the current pay rate for South Gate City Council Members is $790 per month, and by reason of Senate Bill 329, shall be increased to $1,900 per month, effective pursuant to California Government Code Section 36516.5 which provides as follows: "A change
5234194. I-L235.0 66
in compensation does not apply to a corincil member during the council member's tettn of office.
This prohibition shall not prevent the adjustment of the compensation of all members of a council serving staggered terms whenever one or more members of the city council becomes eligible for a salary increase by virtue of the council member beginning a new term of office." In the calendar year 2024, such an increase would not likely occur until December 2024, after the November 2024 election results liave been certified.
NOW, THEREFOR, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1. The City Council does hereby declare that the above recitals are ttaue and current and incorporated herein by reference, and does hereby find and determine that, by amending Chapter 1.04 of the South Gate Municipal Code providing for increased compensation, the purposes of Senate Bill 329 will be met by helping to balance careers and personal obligations with the call to serve the community by adjusting compensation for inflation, and by removing bai'riers to achieve more equitable representation in local government.
SECTION 2. Section 1.04.065.2 (Salary of Members- Compensation) of Chapter 1.04 (City Council) of Title l (Administration and Personnel) of the City of South Gate Municipal Code is hereby amended to read as follows:
Section 1.04.065.2 Salary of Members - Compensation Each member of the council of the city of South Gate shall receive, as compensation, the sum of Nineteen Hundred Dollars ($1,900) per month, as prescribed in Section 36516 of the California Government Code for cities with a population of over seventy-five thousand (75,000) and rip to and including one hundred fifty thousand (150,000), which shall be payable in accordance with California Government Code Section 36516.5.
SECTION 3. The City Corincil also readopts the benefits schedule for all elected officials of the City of South Gate in attachment "A."
SECTION 4. If any section, subsection, subdivision, sentence, clause, phrase, or poition of this Ordinance or the application thereof is for any reason held to be invalid or unconstitutional by a decision of any court of any competent jurisdiction, such decision shall not affect the validity of tlie remaining portions of tliis ordinance. Tlie City Council hereby declares that it would have adopted this ordinance, and each and eveiy section, subsection, subdivision, sentence, clause, or phrase thereof, not declared invalid or rinconstitutional withorit regard to whether any poition of the ordinance would be declared invalid or unconstitutional.
SECTION 5. To the extent the provisions of the South Gate Municipal Code as amended by this ordinance are substantially the same as the provisions of that Code as they read immediately prior to the adoption of this ordinance, then those provisions shall be constnted as continuations of the earlier provisions and not as new enactments.
SECTION 6. The City Manager and his designees are hereby authorized and directed to take all other actions which they deem reasonably necessaiy to carry out the intent of this ordinance.
5234194 I-L235.0 67
SECTION 7. The City Clerk shall certify to the adoption of this ordinance and shall carise a copy of the same to be published in a manner prescribed by law.
PASSED, APPROVED and ADOPTED this 23rd day of April 2024.
CITY OF SOUTH GATE:
By:
Gil Hurtado, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
BY:
Raful F. Salin'as, City Attorney
5234194.1-L235.0 68
(J:!TY br!M:4'=Y.'='i"S '-':.';fCE- Item No. 3
Cil of South Gate
CITY COUNCIL
DepartmentDirector:
SUBJECT: RESOLUTION DECLARING A CONTINUED EMERGENCY AND
AUTHORIZING REPAIR, REPLACEMENT OR MAINTENANCE ACTIVITIES OF PUBLIC FACILITIES RELATED TO THE URBAN ORCHARD, CITY PROJECT NO. 539-PRK WITHOUT PUBLIC BIDDING, PURSUANT TO THE EMERGENCY
CONTRACTING PROCEDURES OF THE SOUTH GATE MUNICIPAL CODE AND
THE CALIFORNIA PUBLIC CONTRACT CODE
PURPOSE: To declare an emergency still exists and to authorize the repair, replacement or maintenance activities of public facilities related to the Urban Orchard Project without public bidding. The Los Angeles County Department of Public Health, Solid Waste Division ("County") issued a Corrective Action Order requiring construction to stop on the project. The declaration of emergency is necessaiy to streamline the process to procure a replacement contractor to provide maintenance activities to preserve the site in a safe condition until the County authorizes construction work on the project to resume.
RECOMMENDED ACTIONS: The City Council will consider making a finding and adopting a Resolution declaring an emergency still exists and authorizing repair, replacement or maintenance activities of public facilities related to the Urban Orchard, City Project No. 539- PRK, without public bidding, pursuant to the emergency contracting procedures of the South Gate Municipal Code and the California Public Contract Code.
FISCAL IMPACT: There is no impact to the General Fund. The Urban Orchard Project ("Project") has received a total of $30.5 million in grant and other funds for design, construction, operations, and maintenance, as suinmarized below.
ANALYSIS: The Project was under construction and approximately 90% of construction work has been completed. On December 29, 2022, the City received a Corrective Action Order ("Order") from the County. The Order required the City to stop all construction activities until such a time as a Post Closure Land Use Plan ("PCLUP") for the Project site was approved by the County. Given the PCLUP approval process and input received to date, it will take at least several months, possibly six or more, to obtain approval.
To avoid the significant delay damages that would be payable by tlie City to the general contractor during a prolonged suspension of the project pending approval of the PCLUP, the City 1 69
Council teri'ninated the general contractor's agreement at a Special City Council meeting on February 6, 2023. Such ten'nination provided both im+'nediate and long-teri'n cost savings to the City but also created an imi'nediate need for tl'ie City to retain an interim contractor to perfon'n certain ongoing maintenance and safety activities; a need which must be met sooner than the time necessary to engage in norinal public bidding procedures The proposed Resolution declares a continued emergency exists pursuant to the authority granted by South Gate Municipal Code FS) 1.54.470 and California Public Contract Code § 22050. Those Code Sections allow cities, by resolution, to approve the City's entry into contracts without engaging in public bidding where certain emergency conditions are found to have occurred. Staff continues to believe that the County's Order directing all construction work to be ceased on the Project, constitutes such an emergency due to the public's safety with an unfinished construction site and the need to respond accordingly to additional directives given by the County related to ensuring public safety. Staff is recommending that the City Council adopt the proposed Resolution so that the City can avail itself of the accelerated contracting procedures authorized by those Code Sections. The Resolution, (1) declares an emergency, (2) authorizes the City Manager to take such actions deemed necessary to cause the maintenance activities to be performed and to procure the necessary equipment, services, and supplies all without giving notice for bids for contracts, (3) requires that at each regularly scheduled City Council Meeting, the City Manager present to the Council the reasons justifying why the emergency will not permit a delay resulting from a competitive solicitation for bids, why that action is necessary to respond to the emergency, and that the City Council review the emergency action to determine, by a four-fifth's vote, that there is a need to continue the emergency action until the emergency action is teri'ninated.
The City is working diligently to secure the PCLUP approval. Since the original Resolution declaring an emergency was approved by the City Council on February 6, 2023, the following contracts, expenditures, and milestones have been undertaken:
1. NR Development Inc., was informed that Contract No. 2021-66-CC was terininated by the City Council effective February 13, 2023, except for maintenance activities. Staff met with NR Development Inc., to discuss the steps to close out construction activities and continue maintenance activities. As of February 16, 2023, NR Development Inc., is no longer providing any project services or maintenance activities.
2. City forces provided maintenance services on the site. The site was secured with perimeter fencing and security contract services.
3. Coordination with tlie Trust for Public Land ("TPL") to complete the process to prepare the technical documents necessary to secure a replacement contractor was completed, Selected a recomr'nended interim contractor; conducted a field review; and received a fee proposal for the interim maintenance and construction activities approved by the Local Enforcement Agency ("LEA").
4. Submitted to the LEA the Suini'nary of Investigations Report, Workplan of Interim Control Measures ("WICM"), Supplemental WICM and Phase II Workplan. Received 2 70
approval of the WICM and conditional approval of tlie Phase II Workplan. Submitted a revised WICM as requested by tlie LEA. Submitted the revised Phase II Workplan on April 18, 2023. On May 9, 2023, the LEA approved the Revised WICM for which the safety measures were implemented by May 12, 2023.
5. Approved a funding increase for TPL in the amount of $50,000. On January 24, 2023, the City Council approved a $250,000 budget for Amendment No. 6 to Contract No. 3352 with TPL; however, Amendment No. 6 had a budget requirement of $300,000. A budget increase of $50,000 was administratively approved to align the amount of the budget authority with the $300,000 budget requirement for Amendment No. 6, which provides funding for the technical services required to comply with requirements from the LEA.
6. A bid was received from LA Engineering to complete the construction of maintenance activities in the WICM approved by the LEA for the Urban Orchard Project. A construction contract in the amount of $2,919,248 was executed administratively under the authority granted by the subject resolution (Contract No. 2023-93-CC).
7. LA Engineering has now substantially completed construction. Work completed includes backfill of overflow structure at the south wetland, north wetland slope stabilization, backfill of the reservoir, installation of three vaults adjacent to the Bandini Channel, construction of the easement road, and boarding up the education and maintenance buildings. Site lighting is pending completion.
8. Methane gas monitoring began as of June 2023 and was completed in December 2023.
There were 16 probes installed throughout the site. One probe detected low traces of methane; however, the amount is below regulatory requirements. A preliminary meeting was held with the LEA to review the results and discuss next steps. The City's consultant submitted a final report on January 16, 2024. The City is awaiting cornrnents.
9. The City is coordinating with TPL and the design consultant to revise the plans and specification to go out to bid for the remaining scope of work. An amendment to contract services will be needed in an amount to be deteri'nined. The City Manager will approve the amendment administratively.
BACKGROUND: The Project is a part of the FY 2022/23 Capital Improvement Program. The Project is located between the Los Angeles River, Firestone Boulevard, the Thunderbird Villa Mobile Home Park, and the I-710 Freeway. The two primary purposes of the Project are to divert and treat stori'n water run-off from the Los Angeles River and to install a new park to provide riverfront recreational opportunities.
The Project is being constructed on a property that was used as an unpermitted landfill until 1949 by an entity known as Southeastern Disposal and By-Products. The property site is identified in CalRecycle's Solid Waste Information System ("SWIS") as an Unpermitted Closed Solid Waste Disposal Site and SWIS No. 19-AA-5545. In 1984, the State of California Department of Health 3 71
Services, Toxic Substances Control Division concluded that tlie clean-up work completed effectively mitigated waste constituents to proceed with the Lewis Homes residential development project. The requirements of the PCLUP came into effect in 1988. As such, the project site is subject to State solid waste regulations that require the PCLUP before any change to the current land use, construction, or land preparation can occur.
The Los Angeles County Department of Public Health, Solid Waste Management Program, acts as the LEA for the State of California's Department of Resources Recycling and Recovery ("CalRecycle"). The County is authorized by Division 30 of the Public Resources Code ("PRC"), Section 43209 and 45000, Title 14 and 27 of the California Code of Regulations (14 CCR & 27 CCR), to enforce applicable solid waste regulations and to ensure solid waste sites meet the state minimum standards within the County of Los Angeles. As such, the City is working with the LEA to obtain approval of the PCLUP.
Construction is currently at the 80% completion stage. Improvements that have been substantially completed include, but are not limited to, rough grading, drop inlet for storm water diversion structures in the Bandini Channel, a wetland overlook area, the stream adjacent to the education/flexible space building and wetland, south bio swale, construction of 18 raised planters, planting of 75 trees, installation of the prefabricated education center and the restroom/maintenance building, two shade structures, a water element at the playground, installation of multi-use walking and bicycle pathways, exercise equipment located at various stages along the walking and bicycle paths, benches, picnic tables, drinking fountains, trash cans, and pathway lighting.
The Project has received the listed grants.
Grants Amount Grant Recipient
State Water Resource Control Board (Prop 1) $7,975,100 City
Land and Water Conservation Fund (LWCF) $3,000,000
Los Angeles County Flood Control District $530,000 Safe Clean Water- Municipal Funds $1,435,401
Safe Clean Water- Regional Funds $5,438,000
State Parks- Prop. 68 Grant $1,919,847
Conservation Corp of Long Beach $713,015
Caltrans $5,000,000
Rivers and Mountains Conservancy Funds $4,404,798 TPLPrivate Donations $90,000 Total $30,506,161
ATTACHMENT: Proposed Resolution
GD:lc
4 72
Attachment A
RESOLUTION NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH
GATE, ST ATE OF CALIFORNIA, DECLARING AN EMERGENCY STILL
EXISTS AND AUTHORIZING REPAIR, REPLACEMENT OR
MAINTENANCE ACTIVITIES OF PUBLIC FACILITIES RELATED TO
THE URBAN ORCHARD PROJECT WITHOUT PUBLIC BIDDING,
PURSUANT TO THE EMERGENCY CONTRACTING PROCEDURES OF
THE SOUTH GATE MUNICIPAL CODE AND THE CALIFORNIA
PUBLIC CONTRACT CODE
WHEREAS, at the Special City Council meeting on February 6, 2023, the City Council for the City of South Gate ("City") considered and passed a Resolution declaring an emergency and authorized the repair, replacement or maintenance activities of public facilities related to the Urban Orchard Project ("Project") pursuant to the emergency contracting procedures of tlie South Gate Municipal Code and the California Public Contract Code; WHEREAS, construction activities at the Project site began on August 2, 2021, and have reached the eighty percent completion stage, but the Project will require several more months of work before it is complete;
WHEREAS, the City has received notice from the Los Angeles County Department of Public Health, Solid Waste Management Program ("County"), demanding that the City immediately cease all construction work on the Project until such time that a Post Closure Land Use Plan ("PCLUP") is submitted to the County for approval before any cliange to the current land use, construction, or land preparation can occur to comply with the requirements of the California Code of Regulations, Title 27 (27 CCR), Section 21190 (the "Cease and Desist and Corrective Action Order");
WHEREAS, the City has terminated its construction agreement with the contractor; WHEREAS, although no construction activities will occur at the Project site until the County issues its PCLUP, it will be necessary in the interim for certain minimal maintenance activities to be performed at the site for the protection of the existing improvements and/or for public safety (collectively, the "Maintenance Activities") as well as complete the improvements approved by the County under the Workplan for interim measures; WHEREAS, at a special meeting of the South Gate City Council ("Council") held on Monday, February 6, 2023, the Council received information provided by the City's Public Works Department establishing that the City does not have sufficient manpower to perfori'n the Maintenance Activities with its own forces, and that the iinmediate need for the performance of the Maintenance Activities does not permit a delay that would result from a competitive solicitation for bids; and
Page l of 3
73 WHEREAS, the City is working diligently to secure the PCLUP approval. The process has been initiated; the Workplan for interim measures has been approved and its construction is substantially complete; a Suini'nary of Site Investigation has been completed; the final report has been submitted to the County; and construction plans to rebid the Project are being prepared.
NOW, THEREFOR, BASED ON THE FACTS SET FORTH ABOVE, THE COUNCIL OF
THE CITY OF SOUTH GATE, CALIFORNIA, HEREBY MAKES THE FOLLOWING FINDINGS:
1. The County's issuance of the Cease and Desist and Corrective Action Order at the current stage of the Project work, coupled with the immediate and ongoing need to perfori'n tlie Maintenance Activities, has created an emergency for the City with respect to the Project; and
2. The emergency will not permit a delay resulting from a competitive solicitation for bids to perfori'n the Maintenance Activities; and
3. The actions to be taken pursuant to the Resolutions set forth below continue to be necessary to respond to the emergency; and
4. The City is working diligently to secure the PCLUP approval. The process has been initiated; the Workplan for interim measures has been approved; a Sumi'nary of Site Investigation has been completed; and the final report has been submitted to the County.
NOW, THEREFOR, THE COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVES AS FOLLOWS:
SECTION 1. The City Council does hereby declare that the above recitals and findings are true and correct and incorporated herein by reference.
SECTION 2: Pursuant to the authority granted by South Gate Municipal Code § 1.54.470 and California Public Contract Code e) 22050, the Council hereby authorizes and directs the City's City Manager and his designees to take such actions as the City Manager deems necessary to cause the Maintenance Activities to be performed, and to procure the necessary equipment, services, and supplies therefore, all without giving notice for bids to let contracts, and without regard to the dollar amounts of the contracts for such activities, equipment, services and supplies.
SECTION 3: At each regularly scheduled meeting of the Council after the date of the original Resolution, dated February 6, 2023, until further notice from the Council, the City Manager has and shall continue to present to the Council tlie reasons justifying the emergency, that the emergency declaration will reduce delays and associated costs that would otherwise result from the competitive solicitation for bids and why that action is necessary to respond to the emergency.
SECTION 4. At each such regularly scheduled meeting until the emergency action is terminated, the Council shall review tlie emergency action to determine, by a four-fifth's vote, that there is a need to continue the emergency action.
74 SECTION 5. The Council shall teri'ninate tl'ie emergency action at the earliest possible date that conditions warrant, so that tl'ie remainder of tlie construction activities may be completed by giving notice for bids to let contracts.
SECTION 6. In accordance with the provisions of California Public Contract Code § 22050, this Resolution sliall only be effective if passed by a four-fifths vote of the Council.
SECTION 7. The City Clerk shall certify to the adoption of this Resolution, which shall be effective upon its adoption.
PASSED, APPROVED and ADOPTED this 9f" day of April 2024.
CITY OF SOUTH GATE:
BY:
Gil Hurtado, Mayor
ATTEST:
B7:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
B7:
S.Aim,ca[tt"o"rnSP
Page3of3
75 Item No. 4
CITYMANAGER'S OFFICE
APR 04 202€
'g:OS4m
Ciffl of South Gate
CITY COUNCIL
AG-ENJDA JBYTL,L
For the Regular Meeting of: Aprn 9, 2024
Department Director:
Public Works
City Manager:
Rob Houston
SUBJECT: RESOLUTION DECLARING THE CITY'S INTENTION TO GRANT A FRANCHISE RENEWAL TO TESORO SOCAL PIPELINE COMPANY, LLC., AND SETTING A PUBLIC HEARING FOR MAY 14, 2024
PURPOSE: TodeclaretheCity'sintentiontograntafranchiserenewaltoTesoroSoCalPipeline Company, LLC., ("Tesoro SoCar') and set a Public Hearing for May 14, 2024, to consider the introduction of an Ordinance granting the proposed franchise agreement.
RECOMMENDED ACTIONS: The City Council will consider:
a. AdoptingaResolutiondeclaringtheCity'sintentiontograntaten-yearfranchiserenewalto Tesoro SoCal Pipeline Company, LLC., to lay and use pipes, ditches, flumes, conduits and appurtenances for transmitting and distributing oil or products thereof, for any and all purposes in, along, across, upon and under the public streets, ways, alleys and places, as the same now or may hereafter exist, within the City of South Gate; b. ApprovingtheschedulingaPublicHearingforMayl4,2024,toconsidertheintroductionof an Ordinance granting the proposed franchise renewal.
FISCAL IMPACT: There is no impact to the General Fund. Tesoro SoCal is required to pay the City a granting fee of $12,943 prior to the adoption ofthe franchise Ordinance, and ifthe Ordinance is approved, Tesoro SoCal will pay approximately $10,265 for the first year, which will increase aru'iually by the Consumer Price Index (PCI). The annual fee was set based on requirements from the California Public Utilities Code.
ANALYSIS: TheCityregulatesutilitycompaniesthathavefacilitiesthatoccupythepublicright- of-way through franchise agreements. The City's 5-year franchise with Tesoro SoCal expired on February 26, 2024. Tesoro SoCal is requesting renewal ofthe franchise for thetwo pipelines located beneath Southern Avenue and Garfield Avenue, respectively, which was granted under Ordinance No. 2020-01-CC.
Before the City can award a franchise, the California Public Utility Code Section 6232 et seq., requires the City Council to adopt a Resolution declaring its intent to grant a franchise and to schedule a public hearing at which anyone may appear and state any interest or objections. The proposed Resolution meets this requirement. More specifically, the proposed Resolution: (a) states 1 76
that the City's actions are in accordance with the California Public Utility Code; (b) identifies the franchise term (ten years), expiration date (February 26, 2034), and respective pipeline information; (c) states that ten'ns and conditions are in accordance with California Public Utilities Code and OrdinanceNo. 2020-01-CC; (d) sets the amount ofthe franchisepayi'nent andrules andrequirements under which the Tesoro SoCal franchise will be required to operate in accordance with the attached Ordinance; and (e) schedules the Public Hearing date as May 14, 2024.
The proposed Resolution is the first of three actions required by the City Council to renew the franchise. Steps needed to adopt the new Ordinance are as follows:
Action Description Date
I Adopt a Resolution declaring the intention to grant a franchise to Tesoro SoCal. 4/9/2024
2 Conduct a public hearing and introduce an ordinance granting a ten- year franchise to Tesoro SoCal. At the conclusion of the public hearing, the City Council may overtule, deny, or deem insufficient any oral or written protests, and may then grant the francliise. 5/1 4/2024
3 Adopt the Ordinance (franchise) 5/28/2024
BACKGROUND: TesoroSoCalcurrentlyoperatesundergroundpipelinestotransportpetroleum products beneath Southern Avenue and Garfield Avenue which have been in place since 1999 under ownership by several different oil and pipeline companies. Tesoro SoCal currently owns and operates two existing pipelines ("Pipelines"): one is a 2,624 foot long, 8-inch diameter pipeline located beneath Southern Avenue and Garfield Avenue ("Pipeline No. 034"); and the other is a 12,952footlong, 12-inchdiameterpipelinelocatedbeneathGarfieldAvenueandMillerWayending at the Arco Vinvale Terminal located at 8601 Garfield Avenue ("Pipeline No. 080"). The Pipelines carry gasoline and diesel products, and are the only pipelines owned by Tesoro SoCal w-i-th-i-nthe- ---- City.
Themost recent franchise, Ordinance No. 2020-01-CC, was adopted by the City Council onAugust 26,2019,andexpiredonFebruary26,2024. TesoroSoCalhasrequestedthatthefranchiseforthe Pipelines be renewed and the first step in the renewal process is the adoption of the proposed Resolution.
South Gate Municipal Code, Section 13.08.010, allows the term of the franchise to be twenty-five years. To bettermanage pipelines within the City, itis the practice of the City to issue franchises on a ten-year ten'n basis in order to ensure the pipelines are well maintained. The proposed Resolution will extend the term of the franchise for an additional ten years, commencing retroactively on February 27, 2024, and expiring on February 26, 2034. Adopting the proposed Resolution to renew and extend the franchise to Tesoro SoCal is advisable for the following reasons:
* Tesoro SoCal is regulated by the California Public Utilities Commission ("Commission").
To the City's knowledge, Tesoro SoCal's use and operation of the pipelines has not violated regulations of that Commission.
@ Tesoro SoCal has made timely franchise fee payments to the City. 2 77
* The proposed franchise is in accordance with California Public Utilities Code Section 6201.
Processing fees and annual fees will be paid to the City if the franchise is renewed. Also, Tesoro SoCal's bond will be renewed.
* Tesoro SoCal has been conducting inspections and testing of the Pipelines using advanced inspection technologies and other best management practices. * EvidenceavailabletotheCityindicatesthatthePipelineshavebeenproperlymaintainedby Tesoro SoCal.
o TheCaliforniaGovernrnentCode(Section510lO)authorizestheStateFireMarshall to inspect the pipelines. Staff communicated with the Division Chief of the Office of the State Fire Marshall on February 12, 2024.
o According to the State Fire Marshall, Tesoro SoCal "has been perfornning maintenance and inspections of the Pipelines pursuant to the California Safety Act and U.S. Code of Federal Regulations (CFR). Pursuant to CFR, a pipeline operator must inspect its pipeline at intervals of not to exceed five years. Line 034 was hydrostatically inspected on October 19 and 21, 2022, Line 080 was internally inspected on May 16, 2022, to May 20, 2022 and the Pipelines are in compliance with the requirements set forth by the Federal Department of Transportation Requirements."
o TesoroSoCalreceivedawarningletterfromCalFireonFebruary9,2024,regarding incompliance of control and alarm room management. Cal Fire, along with the Pipeline and Hazardous Materials Safety Administration (PHMSA) performed the inspection. City staff have determined that this is a minor issue as Tesoro is aware and has already begun taking the necessary action to resolve the issue. o MostrecentlyonMarchll,2024,TesoroSoCalreceivedaNoticeofViolationfrom the Los Angeles Regional Water Quality Control Board for failure to develop a complete storm water pollution prevention plan. City staff has discussed this notice witli Tesoro SoCal and has received assurances that Tesoro SoCal began taking the necessary action to resolve this violation.
ATT ACHMENTS: A.
B.
C.
D.
KT:lc
Proposed Resolution (including Exhibit A: Ordinance) Ordinance No. 2020-01-CC
Letter from the Office of State Fire Marshall
Location Map
3 78
Attachment A
RESOLUTION NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTHGATE, CALIFORNIA, DECLARING THE CITY'S mTENTION TO GRANT A TEN-
YEAR FRANCHISE RENEWAL TO TESORO SOCAL PIPELINE
COMPANY, LLC., TO LAY AND USE PIPES, DITCHES, FLUMES,
CONDUITS AND APPURTENANCES FOR TRANSMITTING AND
DISTRIBUTING OIL OR PRODUCTS THEREOF, FOR ANY AND ALL
PURPOSES IN, ALONG, ACROSS, UPON AND UNDER THE PUBLIC
STREETS, WAYS, ALLEYS AND PLACES, AS THE SAME NOW OR MAY
HEREAFTER EXIST, WITHIN THE CITY OF SOUTH GATE, AND SCHEDULING A PUBLIC HEARING FOR MAY 14, 2024, TO CONSIDER
THE INTRODUCTION OF AN ORDINANCE GRANTING THE PROPOSED
FRANCHISE RENEWAL
WHEREAS, Tesoro SoCal Pipeline Company, LLC., aDelaware limited liability company ("Tesoro SoCal") has requested, in accordance with California Public Utility Code Section 6231, that the City grant Tesoro SoCal a franchise renewal for the use of two existing pipelines ("Pipelines"): one is a 2,624 foot long, 8-inch diameter pipeline located beneath Southern Avenue and Garfield Avenue ("Pipeline No. 034"); the other is a 12,952 foot long, 12-inchdiameterpipeline located beneath Garfield Avenue and Miller Way and ending at the Arco Vinvale Terminal located at 8601 Garfield Avenue ("Pipeline No. 080");
WHF,RF,AS, the Pipe1ines have heen in plar.e since at leat,t 1Q99 and have been operated overthe years by several different oil and pipeline companiesunder several franchises granted by the City;
WHEREAS, on Augustll, 2009, the City Council adopted OrdinanceNo. 2264 granting an additional five-year franchise renewal to BP West Coast Products, LLC. ("BP"), to operate the Pipelines through and including February 26, 2014;
WHEREAS, on May 14, 2013, the City Council approved a Letter of Consent authorizing the transfer by BP to Tesoro Refining and Marketing Company, LLC., a Colorado limited liability company ("Tesoro Refining"), or its affiliates, of the franchise granted by Ordinance No. 2264; WHEREAS, as a result of that Letter of Consent, that franchise was transferred to Tesoro SoCal, a wholly owned subsidiary of Tesoro Refining, and Tesoro SoCal has owned and operated the Pipelines since that time;
WHEREAS, on August 26, 2014, the City Council adopted Ordinance No. 2315 to extend the franchise for an additional five years from February 27, 2014 through and including February 26, 2019;
Pagelof3
79 WHEREAS, on August 26, 2019, the City Council adopted Ordinance No. 2020-01-CC to extend the franchise for an additional five years from February 27, 2019 through and including February 26, 2024;
WHEREAS, Tesoro SoCal wishes to enter into anew franchise withthe City of South Gate relative to the Pipelines for an additional ten years; and WHEREAS, before the City Council can award a franchise, California Public Utility Code Section 6232 et seq., requires the City Council of the City of South Gate to adopt a Resolution declaring its intent to grant a franchise and to schedule a public hearing at which all persons having any objection to the granting thereof may appear before the City Council and be heard thereon.
NOW, THEREFOR, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council does hereby declare that the above recitals are all true and correct and incorporated herein by reference.
SECTION 2. The City Council does hereby declare, in accordance with California Public Utility Code Section 6232 et seq., its intent to grant a franchise renewal to Tesoro SoCal to operate and maintain Pipeline No. 034 and Pipeline No. 080 for a period of ten (10) years, commencing retroactively on February 27, 2024 and expiring on February 26, 2034.
SECTION 3. The City Council does hereby certify that the terms and conditions of the franchise will be in accordance with California Public Utilities Code Section 6201 etseq., will be substantially requirements under which the Tesoro SoCal franchise will be required to operate the Pipelines. A copy of the draft proposed Ordinance is attached hereto as Exhibit "A." SECTION 4. The City Council does hereby direct staff to notice a Public Hearing for May 14, 2024, at 6:30 p.m. in the City Council Chambers of City Hall located at 8650 California Avenue, South Gate, CA 90280, where it shall consider the introduction of an Ordinance granting the proposed franchise renewal and hear any and all comments and objections thereof.
SECTION5. TheCityClerkisherebyauthorizedanddirectedtogivenoticeasrequiredbylawby causing a copy of this Resolution to be published in the Los Angeles Wave, a newspaper of general circulation within the City of South Gate, and said publication to be completed not less than fifteen (15) days after the adoption of this Resolution.
[Remainder of page left blank intentionally.]
80 SECTION6. TheCityClerkshallcertifytotheadoptionofthisResolutionwhichshallbeeffective upon its adoption.
PASSED, APPROVED and ADOPTED this 9f'l day of April 2024.
CITY OF SOUTH GATE:
B7:
Gil Hurtado, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
Page3of3
81 EXHIBIT A
ORDINANCE NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH
GATE, CALIFORNIA, GRANTING A TF,N-YEAR FRANCHISE
RENEWAL TO TESORO SOCAL PIPELINE COMPANY LLC., TO LAY
AND USE PIPES, DITCHES, FLUMES, CONDUITS AND
APPURTENANCES FOR TRANSMITTING AND-DISTRIBUTING OIL
OR PRODUCTS THEREOF, FOR ANY AND-'ALL PURPOSES IN, ALONG, ACROSS, UPON AND UNDER THE.PUBLIC STREETS, WAYS,
ALLEYS AND PLACES, AS THE HEREAFTER
EXIST, WITHIN THE CITY OF SOUTH GATE
WHEREAS, Tesoro SoCal Pipeline<Company, LLC, a D@layare limited liability company ("Tesoro SoCal") requested, in accordan-ce with California Publi-4Utility Code Section 6231, that the City grant Tesoro SoCal a franchise-renewal-fo-r the use of t-m-o elxisting pipelines (the "Pipelines"): one is a 2,624 foo-t-long, 8-inch di:mn-efei-pipeline located'BTh-neath Southern Avenue and Garfield Avenue ("Pip-ili-i- No. 034"); the-:ther is a 12,952 foot long, 12-inch diameter pipeline located beneath Gi- eld Avenue and Miller Way and ending at the Arco Vinvale Ten'ninal located at 8601 Garfie5-ld Avenu-e- ("Pipeline No. 080"); WHEREAS, th-e-Pip-6-lines have bee-n in place since -at least-7-999 and have been operated over the years by sev-eral different oil and pipeline companie-4Hunder several franchises granted by the City; and j-
2264;
WHEREAS, Letter of Consent, that franchise was transferred to Tesoro SoCal, a wholly-o-w-%-=e-d subsidiary of Tesoro Refining, and Tesoro SoCal has owned and operated the Pipelines since that time;
WHEREAS, On August 26, 2014, the City Council adopted Ordinance No. 2315 to extend the franchise for an additional five years from February 27, 2014 through and including February 26, 2019;
1 82
WHEREAS, On August 26, 2019, the City Council adopted Ordinance No. 2020-01-CC to extend the franchise for an additional five years from February 27, 2019, through and including February 26, 2024;
WHEREAS, the franchise granted by Ordinance No. 2020-01-CC expired on February 26, 2024, and Tesoro SoCal wishes to enter into a new franchise with the City of South Gate relative to the Pipelines;
WHEREAS, the City Council, pursuant to applicable federal, state and local law, is authorized to grant francliises within the City of South Gate; WHEREAS, on a Notice of Public Hearing was published in the Los
CITY OF SOUTH GATE,
B)
all purposes.
C) The word "Grantee" shall mean Tesoro SoCal Pipeline Company LLC, a Delaware limited liability company, which is the entity to whom the Franchise contemplated in this Ordinance is granted, and its lawful successors or assigns.
D) The phrase "Lay and Use" shall mean to lay, construct, excavate, erect, install, operate, maintain, use, repair, replace, relocate or remove.
E) Tlie phrase "Pipeline Franchise Ordinance" sliall mean that certain pipeline francl'iise Ordinance adopted by the City Council of the City and codified at Chapters 13.02 through 13.18, inclusive, of the South Gate Municipal Code. 2 83
F) The phrase "Pipelines and Appurtenances" shall mean one or more pipes and/or pipelines used for conducting, transporting, conveying and carrying oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances, together with any appurtenant or related appliance, attachment, cable, cathodic protective device, conduit, equipment, fitting, gauge, main, manhole, meter, pump, regulator, service, trap, valve, vault, vent or wire.
G) The phrase "Street" shall mean the public streets, alleys and places within the City of South Gate as the same now or may hereafter exist, and in which the City lias the opportunity to grant a franchise.
SECTION 2: Grant of Franchise. The right, privilege and-franchise, subject to all terms and conditions contained in this Ordinance, and pursuant to i5eprovisions of the Division 3, Chapter 2 of the California Public Utilities Code, known as the-F'r-aneise Act of 1937, is hereby granted to Grantee, to use a system of Pipelines and Appuffenances- =for the purpose of conducting, transporting, conveying and carrying oil, gas, ;gasoline, petr61eum, wet gas, hydrocarbon substances, water, waste water, mud and other?liquid substances under and across the City's right-of-way upon the teri'ns and conditions set %jth in Section 3, below. The City acknowledges that the two Pipelines identified above have already,been installed within the, Cjty of South Gate; the City expressly agrees that the right to install, op--er-@je, ffiAin-tain, use, repair, replace, relocate and remove those Pipelines is inclu-de-a.among the rights 8--a-nted in this Ordinance as part of the Franchise. -
SECTION 3: Conditions. The rights- granted herein shall be subject to (a) the teri'ns and conditions set forth in this Ordinance, and (b) constni-c-tion of Pipelines and Appurtenances by the Grantee, at the Grantee's expense and at such tirn-e or times as directed by the City.
SEC'nON4.Term. T-he Franchis-e sha11 helfor p t
retroactively on Eebruary 27, 2024 and e7piring o-ffi-'February 26, 2034, or until such earlier time that:
A) The Franchise is -voluntarily surrendered or abandoned by the Grantee, or assigned, transferred, sold or le-nsed with6-u-t the prior express written consent of the City, which assignment shall not be unreasonably withheld; or
B) The State of California, th-e City, or some other municipal or public entity duly authorized by law shall purchase the Franchise area, as described in Section 1(B) by voluntary agreement, or sh31l conde-mn and take the Franchise area under the power of eminent domain; or the FrancMs6- is forfeited by the Grantee due to the Grantee's noncompliance with the terms and c?5nditions of the Franchise.
C) The Grantee shall, within thirty (30) days after the passage of this Ordinance granting the Franchise, file with the City Clerk a written acceptance of the terms and conditions of this Ordinance: provided, however, that as to franchises granted to the United States of America, use will constitute acceptance.
3 84
SECTION 5: Insurance.
A) On or before com+nencement of any franchise operations, the Grantee sliall obtain or provide satisfactory evidence of having policies of liability and worker's compensation insurance from companies autliorized to transact business in the State of California by the Insurance Commissioner of California as provided by Section 13.08.050 of Chapter
13.08, Division I of Title 13.
B) The Grantee shall file witli the City Clerk prior to coini'nencement of any franchise operations, either certified copies of the policies or a certificate of insurance for each of the required policies executed by the company issuin g the policy, certifying that the policy is in force and as provided by Section 13.08,050-of Chapter 13.08, Division I of Title 13.
C) On or before the effective date of this Ordinaqq;-GFi-tee shall file and thereafter at all times during the life of tlie Franchise keep gp afile- with theCity Clerk a corporate surety borxd ruru'iing to the City or public enti@-ffihich may b-ec6me entitled to the benefits herein reserved in tlie Franchise by virtii--f future incorporntions or annexations, in the penal sum of ten thousand dollars ($-iq,Q(0) or such other sum-OJq may be specifically provided for in this Ordinance granting the,Franchise, with surety-'t-o be approved by the City Attorney, conditioned that Grantee shAlE*ell-arid 'truly observe, -ful-fill and perform each condition of the Franchise 7ta that in ca-s-6 -pf any breach of condition of the bond after thirty (30) days' notice to cff-r-e-has expired, the whole amount of the penal sum shall be deemed to be liquidated dA-inages an-d shall be-"Pp- overable from the principal and sureties of the bond. If the bond.-is not-to befiled prior to the effective date of this Ordinance, the award of the Franchise may beSs-e-haside and this Ordinance granting the Franchise rep<,aled at any-time prior-to thesfiling o'f -!he bond and any money paid in consideration fo.r,the award of Franchise s'h-a-11 be deemed forfeited. In the event that the honrl, after it has 't"ieen qn 61ed,
reasonable opinion of the-!G ity Attgrnej,'7becomes insufficient, the Grantee agrees to renjw-=th-e bond, with sureties to be approved-36y the City Attorney, within thirty (30) days -aft-e-r written not-ice to do s6 from the Cify,Attorney.
D) A- s.-.an alternate to the filing "of a bond, the Grantee may deposit with the City Clerk and assi;gti- -tp the City savings and loan certificates or shares, or both, in the same amount as requir-e?l on such bond.- -
SECTION 6: Fee, The Grantee shall pay to the City the following fees pursuant to the following requirements;
A) An initial franchise fee of twelve thousand nine hundred forty-three dollars ($12,943.00) pursuant to Section 13.10.010 of Chapter 13.10, Division 1, of Title 13 of the South Gate Municipal Code, prior to the adoption of this Ordinance.
B) A base annual fee for times hereafter specified, in lawful money of the United States, as provided for in the Section 6231.5 of the California Public Utility Code, which annual fee shall be computed as follows;
4 tL)
85 1. The length of pipe expressed in feet located within the franchised area shall be multiplied by the applicable base rate, as adjusted pursuant to subdivision (d), in accordance with the following schedule:
Pipe size (internal
diameter in inches)
0-4
6 8
10 12
Base rate per
lineal foot
$0.088
0.132
0.176
0.220
0.264
0.484
0.528
30 0.660-\
C) For pipelines with an internal diarne'ter not listed ab-5ve, tlie fees shall be in the same Proportion to the fees of a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches.
D) The annual payment for each lineal foot of -pipeline shall be computed and revised each calendar year El-S follows: - T-
(a) The applicabl6- Lb-Xse -rate shall -bemultiplied by the Consumer Price Index for - tlie Los An-geiles Coun-ty,-as published by the United States Department of Labor, Office .of Informatioga for the month of September imi'nediately - , precedin@- the m6Thth in which payment is due and payable, and divided by the Consume-r'P-rice Index-for June 30, 1989, which is declared to be 128.7. Under no circumstances shall'ihe multiplying factor be less than one. (b) {f the United-Siates Department of Labor, Office of Information, discontinues thepreparation or publication of a Consumer Price Index for the Los Angeles County, and if no translation table prepared by the Department of Labor is availablj3- of-a-s to make those statistics which are then available applicable to the index- of June 30, 1989, the municipality shall prescribe a rate of payment which shall, in its judgment, vary from the rates specified in this section in approximate proportion as coini'nodity consumer piices then current vary from commodity consumer prices current in December 1988. On this point, the determination by the municipality shall be final and conclusive.
E) Initial construction charges relative to any new Pipelines and Appurtenances laid during the term of the Franchise, shall be calculated at a rate of one hundred dollars ($100) per 5 86
mile, or fraction thereof, as provided at the time and in the amounts specified in Section
13.10.040 of Chapter 13. 10, Division 1, of Title 13 of the South Gate Municipal Code.
F) Fees pursuant to Section 13.10.060 of the Chapter 13.10, Division 1, of Title 13 of the South Gate Municipal Code and shall be due and payable annually during the term of the Franchise and subject to adjustment in accordance with paragraph B and D of Section 6, within three (3) months a'fter the expiration of the calendar year. A rate of ten percent (10%) per annum, or fraction thereof beyond thirty (30) days after payment due date and following ten (10) days after receipt by Grantee of written notice of such delinquency, may be charged as additional consideration.
G) Any neglect, omission or refusal by the Grantee to make any sucli payment as and when due, or to file any related statement, certification or -verification as to the required payment reasonably required by the City, at the times or in the manner required herein and in the Pipeline Franchise Ordinance, sha3-be -grounds for the declaration of a forfeiture of the Franchise and of all rights hereni'ider after- thirty (30) days' notice to cure has expires as provided for in Section 12.
H) The Grantee shall file with the City Clerk, within three (3) months after the expiration of the calendar year following the effective date of its Franchise, a-v-e-ij- fied statement setting forth in details the Grantee's computation of the armual fee whichis payable for the preceding franchise payment period of the annual fee. Any neglect, oi'riission or refusal by the Grantee to file the veri-fi:d statement, or-fo pay the aru'iual fee, at the times or in the manner herein provided, shall constihite grounds-for the declaration of a forfeiture of this Franchise and of all rights of the Grantee hereunder; I) In the event of abandoni'nent of facilities with the appro-val of the City as elsewhere in this Ordinance provided, or in the event of removal of such facilities by the Grantee, the payments othepise due ihe City for occupancy of the roads or highways by such facilities shall -be prorated.for the calendar year in which such removal or abandonment ncrnrs Fl!% of the e-n-rl of the r.alenrlar monthin which-r-emoved-or-abandoned.
The Grantee of this Franchise shall:
A) Construct, install, test, and maintain all Pipelines and Appurtenances in accordance with and in conformity with all City, County, State and Federal Ordinances, statutes, rules, regulations and other laws (whether now existing or hereafter adopted) applicable to the installation, location, use, maintenance and/or removal of the Pipelines and Appurtenances;
B) Pay to the City, on demand, the cost of all repairs to public property made necessary by any operations of the Grantee under this Franchise, including restoring the Street to its 6 1"2,-
87 original condition upon the removal of all or any portion of tlie Pipeline and Appurtenances, or upon the terinination or non-renewal of the Franchise; C) Indeinni'fy and hold harinless the City, its officers and employees from any and all liability for damages proximately resulting from the Grantee's acts or omissions under this Franchise; and be liable to the City for all damages proximately resulting from the failure of said Grantee well and faithfully to observe and perforin each and every provision of this Francliise;
D) Install, remove or relocate, at the request of the City and without expense to the City, any Pipelines and Appurtenances installed, used and maintained under this Franchise if and when made necessary by any lawful change of grade, alignrnent or width of the affected Street;
E) Construct, install, use, operate, repair or modify33ny pipeline for the transportation of flainmable or combustible liquids, in a manner6p-i-es-6ribed by the California State Fire Marshall, and/or Chief of Los Angeles Fire I) ep-a-ffment in accordance with Chapter 13.14 Division 1, of the Title 13 of the South Gate- Municipal Cod- 6-;-and F) Submit a written petition of franchise renewal to the City at leastninety (90) days prior to theexpirationdate. ==-
SECTION 9: Permits. The Grantee shall:-btain an excavation pe-ri'nit, and pay the applicable fee therefore, prior to cornrnencing any excavation in the right of way. The Grantee may obtain an excavation peri'nit b'y=-filing a set of excavation plans with the City Engineer, which plans shall be subject to the City Engin-eer's review and approval. The excavation plans shall show the location ofthe proposed e$-avation, as well as the location of all known existing pipes, sewers, conduijs, -improvements aThd otherfac-ilities in or under any Street or public property in which the=fran-chise property is adequ4€:-description of the proposed work, including an estimate of the duration of t%e interferenHe;with any street traffic. The issuance of any flainmable or combustibleFq-qids5;-g-a-ses or hazardous materials, shall be as prescribed by the fire Chief of th-e Los)An-ge-les CountyFire Department in-accordance with Chapter 13.14, Division 1, of Title 13 of the Sou=th Gate Mtfflcipal Code. -;- A) Where it is necessary-4o lay-uff-derground pipes through, under or across any portion of a pave4 or macadamii6-a street, s'4ch work, where practicable and economically feasible, shall be- 4one by a tumel or bor-e so as not to disturb the foundation of such paved or macadami,ied street. If t-h e same cannot be done, or if it is necessary to cut the street in order to acc-e-Ss existing pipes and appurtenances, such work shall be done pursuant to an excavation pet, aH,provided in above paragraph, to be issued by the City Engineer upon application ih-ere-j5-re.
B) All work shall be subject to inspection by the City Engineer. All street coverings or openings, valves, vaults and manholes shall at all times be kept flush with the surface of the streets; provided, however, that vents for underground vaults and manholes may, subject to the prior approval of the City Engineer, extend above the surface of the streets when such vents are located in parkways, between the curb and the property line. The Grantee shall provide adequate traffic safety barriers, signs, devices and traffic safety warning equipment in accordance with City ordinances, rules or regulations, and shall comply with such additional safety measures as the City Engineer may direct. 7 13
88 SECTION 10: Emergency Equipment.
A) The Grantee shall develop and maintain an emergency response plan, satisfactory to the City Engineer, which covers all franchise operations within the City. In general, an emergency response plan meeting the requirements of Federal and State law and containing the information contained in this section shall be acceptable. The emergency response plan shall include a 24-hour notification program and proof of arrangements capable of providing emergency response services, including but not limited to traffic control, street excavation, pipeline repair, and supplies and services as necessary, within two (2) hours of notification of any problem, and such other information as the City Engineer shall reasonably require. Repairs to a publi-c=s-treet, alley or parkway shall be completed within seventy-two (72) hours unlesTh;Jo-=therwise authorized by the City Engineer. The City Engineer shall be notifiedtAon=(-10) days in advance of any proposed change in such arrangements. Grantee's etergency resp-onse plan shall be submitted to the City Engineer within thirty (30) days affm'ihe effective- d- A-te of the Franchise.
B) Whenever any Pipeline or Appurtenance breaks or leaks so as to cause the release of oil or products thereof into the public rightqof-way, Grantee, and any-other person using or controlling the Pipeline or Appurtenanr-6:-shall immediately notify the City's Police Department and Public Works Departmen-T and shall implement precautionary safety measures including traffic .control, system s,hiitd-own, valve closur'es, and public notification. In the event of at\ein ergency which tbt-eatens life, health, safety or property, and where it is not possible to 6b-:iain an excavation permit prior to commencement of tlie work, the Grantee may commenc-e 5uch-w-or-k; provided, however, that within seventy- two (72) hours therA-aft-er the Grantee shall m-ake application to the City Engineer for an excavation permff in acc6rL6ance with%heprocedures specified herein. The City Engineer may impose copditions upon the issuance 6f the excavation peri'nit, and all work shall be any 4amaged portion of the.Stre-e-t-shall be restored to its original condition.
C) If any p- ortion of any -=Str@et is darnaged b;-S-reason of defects in any of the Pipes and Ap-purtenances maintained -or construc €e;-(l by Grantee, or by reason of any other cause attributable to or arising from:the operation of any Pipes and Appurtenances constructed or maintained by Gr-a@iee, the Grantee shall, at its sole cost and expense, immediately repair A-11 damage and -re,store the Street to the condition existing before such damage occurred. All such work3hall be done under the direction of the City Engineer, and to the reasonable satisfaction o-fHth-e City Engineer. Grantee shall repair such damage and restore the Street withip.three (3) working days after written demand therefore by the City Engineer, or such 6fh3.r period as the City Engineer may authorize when required for the protection of the puHli-c health and safety.
D) If the Grantee, a'fter reasonable notice, fails or refuses to pave, surface, grade, repave, resurface or regrade as required by the provisions of this Franchise, the City may cause the work to be done and shall keep an itemized account of all costs, including reasonable administrative overhead expenses, within thirty (30) days after presentation to Grantee of an itemized account of such costs.
8 t'}
89 SECTION 11: Records.
A) Grantee acknowledges that the City's records may not be complete and that Pipes and Appurtenances previously unknown to City are frequently discovered. Consequently, by granting this Franchise or by approving any excavation peri'nit requested by Grantee, the City does not warrant the accuracy of infori'nation supplied to the Grantee by the City regarding the location or existence of other facilities. Nothing herein shall be deemed to make the City, or any officer, agent or employee of the City, responsible or liable to tlie Grantee or to any other person by virtue of the City's approval of excavation pernnits and/or plans, regardless of whether any inforination is supplied by the City to the Grantee pertaining to the location of existing pipes, facilities or other improvements on, in or under any Street or other public property.
B) The Grantee shall keep and preserve, within th-e C6unty of Los Angeles for a period of five (5) years, subsequent to the date of the, most recenfofr@nchise fee deteri'nination as ascertained by an audit made by the Ciiy2offl on its behalf,-'all the records necessary to deteri'nine the amount of such franchiseNeE-:-
C) At all reasonable times, the Grant5g;hall permit the City oor its duly authorized representative, to examine all Pipelines arid 4ppurtenances and to gx-a-mine and transcribe any and all books, accounts, pipers, maps, ai'idother records kept or-in-aintained by the Grantee or under its control-a-n-d- associated with th---e- Pipelines and Appurtenances and/or the financial condition of the Grantee with respeci-t'5 ereto SECTION 12: Failure to Comply.
A) If the
for compliance, begiii the work of cornp-liance, or after commencing such compliance shall fail to prosecute the-s,ame miih-due diligence to completion, then the City, acting by and through itslegislativ-e-$ody, may declare this Franchise forfeited.
B) InTthe event of noncozplian-ce by the Grantee with any of the conditions hereof, the City may, 'in addition to all other rerrij-4ies provided for herein, bring suit for the forfeiture or termination of this Franchise.
SECTION 13: Removal or abandonment of facilities.
A) At the expiration, revocation or termination of this Franchise or of the permanent discontinuance of the use of all or a portion of its facilities, the Grantee shall, within thirty (30) days thereafter, make written application to the Director of Public Works for authority either to: (1) abandon all or a portion of such facilities in place; or (2) remove all or a portion of such facilities. Such application shall describe the facilities desired to be abandoned, their location with reference to City highways, and shall describe with reasonable accuracy the physical condition of such facilities. The Director of Public Works shall determine whether any abandonment or removal which is thereby proposed may be effected without detriment to the public interest and under what conditions such 9 al5
90 proposed abandonment or removal may be effected. He or she shall then notify the Grantee of his or her deten'ninations.
B) Within thirty (30) days after receipt of such notice, the Grantee shall apply for a permit from the Public Works Department to abandon or remove the facility.
C) The Grantee shall, within ninety (90) days after obtaining such permit, cornrnence and diligently prosecute to completion the work authorized by the pennit.
SECTION 14: Effective Date. This Ordinance shall take effect on the thirty first (31s') day after its adoption.
10 I(O
91 SECTION 15: Publication Expenses. The Grantee of tliis Franchise shall pay to the City a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting of this Franchise; said payment to be made within thirty (30) days after the City shall have furnished said Grantee with a written statement of such expenses.
SECTION 16: Posting of Ordinance. The City Clerk sliall certify to the adoption of this Ordinance and shall cause tlie same to be published as required by law.
PASSED, APPROVED and ADOPTED this -28I" day of May 2024.
ATTEST:
By:
Yodit Glaze, City Clerk-
(SEAL)
APPROVED AS TOFORM: -
By:
11 92
Attachment B
D
ORDINANCE N0. 2020-01 -CC
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
ORDINANCE OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE,
CALIFORNIA, GRANTING A FIVE-YEAR FRANCHISE TO TESORO
SOCAL PIPELINE COMPANY, LLC, A DELAWARE LIMITED LIABILITY COMPANY, COMMENCING RETROACTIVELY ON FEBRUARY 27,
2019, TO LAY AND USE PIPES, DITCHES, FLuMES, CONDUITS AND APPuRTENANCES FOR TRANSMITTING AND DISTRIBUTING OIL OR
PRODUCTS THEREOF, FOR ANY AND ALL PURPOSES IN, ALONG, ACROSS, UPON AND UNDER THE PUBLIC STREETS, WAY8,
ALLEYS AND PLACES, AS THE SAME NOW OR MAY HEREAFTER
EXIST, WITHIN THE CITY OF SOUTH GATE
WHEREAS, Tesoro SoCal Pipeline Company, LLC, a Delaware limited liability company ("Tesoro SoCal") requested, in accordanoe with California Public Utility Code Sedion 6231, that the City grant Tesoro SoCal a franchise for the use of two existing pipelines (the "Pipelines"): one is a 2,624 foot long, 8-inch diameter pipeline located beneath Southern Avenue and Garfield Avenue ('Pipeline No. 034"); the other is a 12,952 foot long, 12-inch diameter pipeline located beneath Garfield Avenue and Miller Way and ending at the Arco Vinvale Terminal located at 8601 Garfield Avenue ("Pipeline No. 080"); and
WHEREAS, the Pipelines have been in plaoe since at least 1999 and have been upeialed Lielwberi over Lliv yeais Liy several different oil and pipeline companies under several franchises granted by the City of South Gate ('City"); and WHEREAS, on August 11, 2009, the City Council adopted Ordinance No. 2264 granting an additional five year franchise renewal to BP West Coast Products, LLC ("BP"), to operate the Pipelines through and including February 26, 2014; and WHEREAS, on May 14, 2013, the City executed a Letter of Consent authorizing the transfer by BP to Tesoro Refining and Marketing Company, LLC, a Colorado limited liability company ("Tesoro Refining"), or its affiliates, of the franchise granted by Ordinance No. 2264; and
WHEREAS, as a result of that Letter of Consent that franchise was transferred to Tesoro SoCal, a wholly-owned subsidiary of Tesoro Refining, and Tesoro SoCal has owned and operated the Pipelines since that time; and WHEREAS, on August 26, 2014, the City Council adopted Ordinance No. 2315 to extend the franchise for an additional five years, from February 27, 2014 through and including February 26, 2019; and
I
93 WHEREAS, the franchise granted by Ordinance No. 2315 expired on February 26, 2019, and Tesoro SoCal wishes to enter into a new franchise with the City of South Gate relative to the Pipelines; and a
WHEREAS, the City Council, pursuant to applicable federal, state and local law, is authorized to grant franchises within the City; and WHEREAS, on February 6, 2020, a Notice of Public Hearing was published in the Los Angeles Wave, a newspaper meeting the statutory qualifications for publishing such notices; and
WHEREAS, on February 25, 2020, the City Council held a duly noticed Public Hearing to introduce an Ordinance granting a five-year term franchise to Tesoro SoCal; and
WHEREAS, on March 10, 2020, the City Council adopted Ordinance No. 2020- O'l-CC, granting a five-year term franchise to Tesoro SoCal, commencing retroactively on February 27, 20al9;
NOW, THEREFORE, THE CITY COUNCIL OF THE CITY OF SOUTH GATE DOES HEREBY ORDAIN AS FOLLOWS:
SECTION 1: Definitions. Whenever in this Ordinanoe the words or phrases hereinafier in this section defined are used, it is intended that they shall have the respective the context wherein they are used shalJ clearly import a different meaning):
A) The word "City" shall mean the City of South Gate, a municipal corporation of the State of California, in its present incorporated form or in any later reorganized, consolidated, enlarged or reincorporated form.
B) The word "Franchise" shall mean and include any authorization by the City to transmit and distribute thereof for any and all purposes under, along, across or upon the public street, ways, alleys, and places in the City by means of pipes and appurtances for conducting, transporting, conveying, and carrying oil, gas, gasoline, petro)eum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances for any and all purposes C) The word "Grantee" shall mean Tesoro SoCal Pipeline Company LLC, a Delaware limited liability company, which is the entity to whom the Franchise contemplated in this Ordinance is granted, and its lawful successors or assigns.
D) The phrase "Lay and Use" shall mean to lay, construct, excavate, erect, install, operate, maintain, use, repair, replace, relocate or remove, E) The phrase "Pipeline Franchise Ordinance" shall mean that certain pipeline franchise Ordinance adopted by the City Council of the City and codified at Chapters 13.02through 13.18, inclusive, ofthe South Gate Municipal Code. 2 IR
94 F) The phrase "Pipelines and Appurtenances" shall mean one or more pipes and/or pipelines used for conducting, transporting, conveying and carrying oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances, together with any appurtenant or related appliance, attachment, cable, cathodic protective device, conduit, equipment, fitting, gauge, main, manhole, meter, pump, regulator, service, trap, valve, vault, vent or wire.
G) The phrase l'Street" shall mean the public streets, alleys and places within the City of South Gate as the same now or may hereafter exist, and in which the City has the opportunity to grant a franchise.
SECTION 2: Grant of Franchise. The right, privilege and franchise, subject to all terms and conditions contained in this Ordinance, and pursuant to the provisions of the Division 3, Chapter 2 of the California Public Utilities Code, known as the Franchise Ad of 1937, is hereby granted to Grantee, to use a system of Pipelines and Appurtenan>s for the purpose of conducting, transporting, conveying and carrying oil, gas, gasoline, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances under and across the City's right-of-way upon the terms and conditions set forth in Section 3, below. The City acknowledges that the two Pipelines identified above have already been installed within the City of South Gate; the City expressly agrees that the right to install, operate, maintain, use, repair, replace, relocate and remove those Pipelines is included among the rights granted in this Ordinance as part of the Franchise.
SECTION 3: Conditions. The rights granted herein shall be subject to (a) the terms and conditions set forth in this Ordinan>, and (b) construction of Pipelines and by the Grantee, at the Grantee's expense and at such time or times as SECTION 4: Term. The Franchise shall be for a term of five (5) years commencing retroactively on February 27, 2019 and expiring on February 26, 2024, or until such earlier time that:
A) The Franchise is voluntarily surrendered or abandoned by the Grantee, or assigned, transferred, sold or leased without the prior express written consent of the City, which assignment shall not be unreasonably withheld; or B) The State of California, the City, or some other municipal or public entity duly authorized by law shall purchase the Franchise area, as described in Section 1(B) by voluntary agreement, or shall condemn and take the Franchise area under the power of eminent domain; or the Franchise is forfeited by the Grantee due to the Grantee's noncompliance with the terms and conditions of the Franchise.
C) The Grantee shall, within thirty (30) days after the passage of this Ordinance granting the Franchise, file with the City Clerk a written acceptance of the terms and conditions of this Ordinance: provided, however, that as to franchises granted to the United States of America, use will constitute acceptance 3 20
95 SECTION 6: Insurance.
A) On or before commencement of any franchise operations, the Grantee shall obtain or provide satisfactory evidence of having policies of liability and worker's compensation insurance from companies authorized to transact business in the State of California by the Insurance Commissioner of California as provided by Section 13.08.050 of Chapter 13.08, Division I of Title 13.
B) The Grantee shall file with the City Clerk prior to commencement of any franchise operations, either certified copies of the policies or a certificate of insurance for each of the required policies executed by the company issuing the policy, certifying that the policy is in force and as provided by Section 13.08.050 of Chapter 13.08, Division I ofTitle 13.
C) On or before the effective date of this Ordinance, Grantee shall file and thereaffer at all times during the life of the Franchise keep on file with the City Clerk a corporate surety bond running to the City or public entity which may become entitled to the benefits herein reserved in the Franchise by virtue of future incorporations or annexations, in the penal sum of ten thousand dollars ($10,000) or such other sum as may be specifically provided for in this Ordinance granting the Franchise, with surety to be approved by the City Attorney, conditioned that Grantee shall well and truly observe, fulfill and perform each condition of the Franchise and that in case of any breach of condition of the bond after thirty (30) days notice to cure has expired, the whole amount of the penal sum shall be deemed to be liquidated damages and shall be recoverable from the principal and sureties of the bond. If the bond is not to be fi(ed prior to the effective date of this Ordinance, the award of the Franchise may be set aside and this Ordinance granting the Franchise repealed at any time prior to the filing of the bond and any ' in consideration for the award of Franchise shall be deemed forfeited. In the event that the bond, afier it has been so filed, shall at any time during the life of the Franchise, in the reasonable opinion of the City Attorney, becomes insufficient, the Grantee agrees to renew the bond, with sureties to be approved by the City Attorney, within thirty (30) days affer written notice to do so from the City Attomey.
D) As an alternate to the filing of a bond, the Grantee may deposit with the City Clerk and assign to the City savings and loan certificates or shares, or both, in the same amount as required on such bond.
SECTION 6: Fee. The Grantee shall pay to the City the following fees pursuant to the following requirements:
A) An initial franchise fee of eleven thousand two hundred fifty five dollars ($11,255.00) pursuant to Section 13.10.010 of Chapter 13.10, Division 4, of Title 13 of the South Gate Municipal Code, prior to the adoption of this Ordinance.
B) A base annual fee for times hereafter specified, in lawful money of the Llnited States, as provided for in the Section 6231.5 of the California Public Utility Code, which annual fee shall be computed as follows;
4 21
96 m
1. The length of pipe expressed in feet located within the franchised area shall be multiplied by the applicable base rate, as adjusted pursuant to subdivision (d), in accordance with the following schedule:
Pipe size (internal
diameter in inches)
0-4
6 8
10 12
Base rate per
lineal foot
$0.088
0.132
0.176
0.220
0.264
0.308
0.352
0.396
0.440
0.484
0.528
0.572
0.616
0.660
C) For pipelines with an internal diameter not listed above, the fees shall be in the same Proportion to the fees of a 12-inch-diameter pipe as the diameter of the unlisted pipe is to 12 inches.
D) The annual payment for each lineal foot of pipeline shall be computed and revised each calendar year as follows:
1. The applicable base rate shall be multiplied by the Consumer Price lndex for the Los Angeles County, as published by the United States Department of Labor, Office of Information for the month of September immediately preceding the month in which payment is due and payable, and divided by the Consumer Price Index for June 30, 1989, which is declared to be 128.7. Under no circumstances shall the multiplying fador be less than one,
2. If the United States Department of Labor, Office of Information, discontinues the preparation or publication of a Consumer Price Index for the Los Angeles County, and if no translation table prepared by the Department of Labor is available so as to make those statistics which are then available applicable to the index of June 30, 1989, the municipality shall prescribe a rate of payment which shall, in its judgment, vary from the rates specified in this section in approximate proportion as commodity consumer prices then current vary from commodity consumer prices current in December 1988. On this point, the determination by the municipality shall be final and conclusive 5 2z
97 E) Initial construction charges relative to any new Pipelines and Appurtenances laid during the term of the Franchise, shall be calculated at a rate of one hundred dollars ($100) per mile, or fraction thereof, as provided at the time and in the amounts specified in Section 13.10.040 of Chapter 13.10, Division 1, of Title 13 of the South Gate Municipal Code.
F) Fees pursuant to Section 13.10.060 of the Chapter 13.10, Division 1, of Title 13 of the South Gate Municipal Code and shall be due and payable annualy during the term of the Franchise and subject to adjustment in accordance with paragraph B and D of Section 6, within three (3) months after the expiration of the calendar year. A rate of ten percent (10%) per annum, or fraction thereof beyond thirty (30) days after payment due date and following ten (10) days affer receipt by Grantee of written notice of such delinquency, may be charged as additional consideration.
G) Any neglect, omission or refusal by the Grantee to make any such payment as and when due, or to file any related statement, certification or verification as to the required payment reasonably required by the City, at the times or in the manner required herein and in the Pipeline Franchise Ordinance, shall be grounds for the declaration of a forfeiture of the Franchise and of all rights hereunder affer thirty (30) days' notice to cure has expires as provided for in Section 12.
H) The Grantee shall file with the City Clerk, within three (3) months affer the expiration of the calendar year following the effective date of its Franchise, a verified statement setting forth in details the Grantee's computation of the annual fee which is payable for the preceding franchise payment period of the annual fee. Any neglect, omission or refusal by the Grantee to file the verified statement, or to pay the annual fee, at the times or in the manner herein provided, shall constitute grounds for the rlpir.mation of a forfeitureofthis Franchise and of all rights of the Grantee hereunder.
I) In the event of abandonment of facilities with the approval of the City as elsewhere in this Ordinance provided, or in the event of removal of such facilities by the Grantee, the payments otherwise due the City for occupancy of the roads or highways by such facilities shall be prorated for the calendar year in which such removal or abandonment occurs as of the end of the calendar month in which removed or abandoned
SECTION 7: Plans. Within ninety (90) days following the date in which any Pipelines and Appurtenances have been laid or constructed under this Franchise, the Grantee shall file a plan or plans in such forms as may be required by the City's City Engineer showing the accurate location and size of all Pipelines and Appurtenances then in place within the Franchise Area, and shall, upon installation of any Pipelines and Appurtenances, or upon change or removal of all or any portion thereof, file a revised map or maps showing the location and size of all such additional, changed or removed Pipelines and Appurtenances as of that day.
6 98
SECTION 8: Additional Conditions. The Grantee of this Franchise shall:
m A) Construct, install, test, and maintain all Pipelines and Appurtenances in accordance with and in conformity with all City, County, State and Federal Ordinances, statutes, rules, regulations and other laws (whether now existing or hereafter adopted) applicable to the installation, location, use, maintenance and/or removal of the Pipelines and Appurtenances;
B) Pay to the City, on demand, the cost of afl repairs to public property made necessary by any operations of the Grantee under this Franchise, including restoring the Street to its original condition upon the removal of all or any portion of the Pipeline and Appurtenances, or upon the termination or non-renewal of the Franchise;
C) Indemnify and hold hartnless the City, its offioers and employees from any and all liability for damages proximately resulting from the Grantee's acts or omissions under this Franchise; and be liable to the City for all damageb piuaiiualJy resulting from the failure of said Grantee well and faithfully to observe and perform each and every provision of this Franchise;
D) Install, remove or relocate, at the request of the City and without expense to the City, any Pipelines and Appurtenances installed, used and maintained under this Franchise if and when made neoessary by any lamul change of grade, alignment or width of the affected Street;
E) Construct, install, use, operate, repair or modify any pipeline for the transportation of flammable or combustible liquids, in a manner prescribed by the California State Fire Marshall, and/or Chief of Los Angeles Fire Department in accordance with Chapter 13.14 Division 1, of the Title 13 of the South Gate Municipal Code; and
F) Siihmit awritten ppatitinn of
prior to the expiration date.
SECTION 9: Permits. The Grantee shall obtain an excavation permit, and pay the applicable fee therefore, prior to commencing any excavation in the right of way. The Grantee may obtain an excavation permit by filing a set of excavation plans with the City Engineer, which plans shall be subject to the City Engineer's review and approval. The excavation plans shall show the location of the proposed excavation, as well as the location of all known existing pipes, sewers, conduits, improvements and other facilities in or under any Street or public property in which the franchise property is adequate description of the proposed work, including an estimate of the duration of the interference with any street traffic. The issuance of any excavation permit for the construction or installation of a pipeline for the transmission of flammable or combustible liquids, gases or hazardous materials, shall be as prescribed by the fire Chief of the Los Angeles County Fire Department in accordance with Chapter 13.14, Division 1, ofTitle 13 ofthe South Gate Municipal Code.
A) Where it is necessary to lay underground pipes through, under or across any portion of a paved or macadamized street, such work, where practicable and economically feasible, shall be done by a tunnel or bore so as not to disturb the foundation of such paved or macadamized street. If the same cannot be done, or 7 2-t99
if it is necessary to cut the street in order to access existing pipes and appurtenances, such work shall be done pursuant to an excavation permit, as provided in above paragraph, to be issued by the City Engineer upon application therefore.
All work shall be subject to inspection by the City Engineer. All street coverings or openings, valves, vaults and manholes shall at all times be kept flush with the surface of the streets; provided, however, that vents for underground vaults and manholes may, subject to the prior approval of the City Engineer, extend above the surface of the streets when such vents are located in parkways, between the curb and the property line. The Grantee shall provide adequate traffic safety barriers, signs, devices and traffic safety warning equipment in accordance with City ordinances, rules or regulations, and shall comply with such additional safety measures as the City Engineer may direct.
SECTION 10: Emergency Equipment.
A) The Grantee shall develop and maintain an emergency response plan, satisfactory to the City Engineer, which covers all franchise operations within the City. In general, an emergency response plan meeting the requirements of Federal and State law and containing the information contained in this section shall be acceptable. The CmCaiH6riby it=sponse plan shall include a 24-hour notification program and proof of arrangements capable of providing emergency response services, including but not limited to traffic control, street excavation, pipeline repair, and supplies and services as necessary, within two (2) hours of notification of any problem, and such other information as the City Engineer shall reasonably require. Repairs to a public street, alley or parkway shall be completerl within seventy,twn (7)) hniirs unmss otherwise authonz.edbytheCity Engineer. The City Engineer shall be notified ten (10) days in advance of any proposed change in such arrangements. Grantee's emergency response plan shall be submitted to the City Engineer within thirty (30) days after the effective date of the Franchise.
B) Whenever any Pipeline or Appurtenance breaks or leaks so as to cause the release of oil or products thereof into the public right-of-way, Grantee, and any other person using or controlling the Pipeline or Appurtenance, shall immediately notify the City's Police Department and Public Works Department and shall implement precautionary safety measures including traffic control, system shutdown, valve closures, and public notification. In the event of an emergency which threatens life, health, safety or property, and where it is not possible to obtain an excavation permit prior to commencement of the work, the Grantee may commence such work; provided, however, that within seventy-two (72) hours thereafter the Grantee shall make application to the City Engineer for an excavation permit in accordance with the procedures specified herein. The City Engineer may impose conditions upon the issuance of the excavation permit, and all work shall be subject to inspection. Adequate traffic safety barriers shall be maintained at all times, and any damaged portion of the Street shall be restored to its original condition.
8 100
C) If any portion of any Street is damaged by reason of defects in any of the Pipes and Appurtenances maintained or constructed by Grantee, or by reason of any other cause attributable to or arising from the operation of any Pipes and Appurtenances constructed or maintained by Grantee, the Grantee shall, at its sole cost and expense, immediately repair all damage and restore the Street to the condition existing before such damage occurred. All such work shall be done under the direction of the City Engineer, and to the reasonable satisfaction of the City Engineer. Grantee shall repair such damage and restore the Street within three (3) working days afier written demand therefore by the City Engineer, or such other period as the City Engineer may authorize when required for the protection of the public health and safety.
D) If the Grantee, affer reasonable notice, fails or refuses to pave, surface, grade, repave, resurface or regrade as required by the provisions of this Franchise, the City may cause the work to be done and shall keep an itemized account of all costs, including reasonable administrative overhead expenses, within thirty (30) days after presentation to Grantee of an itemized account of such costs.
SECTION 11: Records.
A) Grantee acknowledges that the City's records may not be complete and that Pipes and Appurtenances previously unknown to City are frequently discovered.
Consequently, by granting this Franchise or by approving any excavation permit requested by Grantee, the City does not warrant the accuracy of information supplied to the Grantee by the City regarding the location or existence of other facilities. Nothing herein shall be deemed to make the City, or any officer, agent or employee of the City, responsible or liable to the Grantee or to any other person by virtue offhe City's apprrivm of piycavqtinn pprmits and/or-plans,----- regardless of whether any information is supplied by the City to the Grantee pertaining to the location of existing pipes, facilities or other improvements on, in or under any Street or other public property.
B) The Grantee shall keep and preserve, within the County of Los Angeles for a period of five (5) years, subsequent to the date of the most recent franchise fee determination as ascertained by an audit made by the City or on its behalf, aIl the records necessary to determine the amount of such franchise fee.
C) At all reasonable times, the Grantee shall permit the City or its duly authorized representative, to examine all Pipelines and Appurtenances and to examine and transcribe any and all books, accounts, papers, maps, and other records kept or maintained by the Grantee or under its control and associated with the Pipelines and Appurtenances and/or the financial condition of the Grantee with respect thereto.
SECTION 12: Failure to Comply.
A) If the Grantee shall fail, neglect or refuse to comply with any of the provisions or conditions of this Franchise, and shall not, within thirty (30) days after written demand for compliance, begin the work of compliance, or after commencing such 9 -,l(b
101
compliance shall fail to prosecute the same with due diligence to completion, then the City, acting by and through its legislative body, may declare this Franchise forfeited.
In the event of noncompliance by the Grantee with any of the conditions hereof, the City may, in addition to all other remedies provided for herein, bring suit for the forfeiture or termination of this Franchise.
SECTION 13: Removal or abandonment of facilities.
A) At the expiration, revocation or termination of this Franchise or of the permanent discontinuance of the use of all or a portion of its facilities, the Grantee shall, within thirty (30) days thereaffer, make written application to the Diredor of Public Works for authority either to: (1) abandon all or a portion of such facilities in place; or (2) remove all or a portion of such facilities. Such application shall describe the facilities desired to be abandoned, their location with reference to City highways, and shall describe with reasonable accuracy the physical condition of such facilities. The Director of Public Works shall determine whether any abandonment or removal which is thereby proposed may be effected without detriment to the public interest and under what conditions such proposed abandonment or removal may be effected. He or she shall then notify the Grantee of his or her determinations.
B) Within thirty (30) days after receipt of such notice, the Grantee shall apply for a permit from the Public Works Department to abandon or remove the facility.
C) The Grantee shall, within ninety (90) days after obtaining such permit, tuiYiiiit=ii(it, and diligently prosecute to compleUon the work authorized by the permit.
Date. This Ordinance shall take effect on the thir§ first (31st) day afier its adoption.
[Remainder of page leff blank intentionally.]
10 2+
102
D
SECTION 15: Publication Expenses. The Grantee of this Franchise shall pay to the City a sum of money sufficient to reimburse it for all publication expenses incurred by it in connection with the granting of this Franchise; said payment to be made within thirty (30) days after the City shall have furnished said Grantee with a written statement of such expenses.
SECTION 16: Posting of Ordinance. The City Clerk shall certify to the adoption of this Ordinanoe and shall cause the same to be published as required by law.
PAS8ED, APPROVED and ADOPTED this i0th day of March, 2020.
CITY OF SOUTH GATE:
BY: l
M. Bel6n Bernal, Mayor
0 ATTEST:
Carmen Avalos, City
(SEAL)
D AS FORM:
ul F. Salinas, City Attorney
11 25a
103
ORDINANCE CERTIFICATION PAGE
ST ATE OF CALIFORNIA
COUNTY OF Lag ANGELF,S ) SS
CITY OF SOUTH GATE
I, Caimen Avalos, City Clerk of the City of South Gate, Califomia, hereby certify that the whole number of Members of the City Council of said City is five; that Ordinance No. 2020-01-CC was adopted by the City Council at their Regular Meeting held on March 10, 2020, by the following vote:
Ayes: Council Members: Diaz, DeWitt, and Rios
Noes: Council Members: None
Absent: Council Members: Davila
Abstain: Council Members: Bennal
Witness my hand and the seal of said City on March 11, 2020.
Carmen Avalos, City Clerk
City of South Gate, Califomia
2,"1
104
Attachment C
ST ATE OF CALIFORNIA-NATURAL RESOURCES AGENCY Gavin Newsom, Governor
DEPARTMENT OF FORESTRY AND FIRE PROTECTION
OFFICE OF THE STATE FIRE MARSHAL
3780 Kilroy Airport Way, Suite 500
Long Beach, California 90806
(562) 497-0350
CERTIFIED MAIL No: 7022-2410-0000-0522-4362
February 9, 2024
Rich St. Amour
President
Marathon Pipe Line LLC
539 South Main Street
Findlay, Ohio 45840
SUBJECT: WARNING LETTER
DOCKET: CA-2024004 (MARATHON PIPE LINE LLC)
Dear Mr. St. Amour:
From April 17, 20-23 to November 20, 2023, representatives of CAL FIRE - Office of the State Fire Marshal (OSFM) along with Pipeline and Hazardous Materials Safety Adininistration (PI IMSA) coiiiplt,led a Head!uaiLei CuiiLiol Rooin Management (CRM) Inspection of Marathon Pipe Line LLC (MPL). This inspection was conducted pursuant to Chapter 5.5 of the California Government Code to determine compliance with the provisions of Title 49, Code of Federal Regulations (49 C.F.R.) Part 195.
As a result of the inspection, it appears that MPL is not in compliance with the following provisions of 49 C.F.R. Part 195.
EN 24-005
49 C.F.R. § 195.446 Control Room Management.
(a) ...
(e) Alarm management. Each operator using a SCADA system must have a written alarm management plan to provide for effective controller response to alarms. An operator's plan must include provisions to:
(1) ...
(6) Address deficiencies identified through the implementation of paragraphs (e)(l ) through (e)(5) of this section.
"The Department of Forestry and Fire Protection serves and sa%rards tjie people and protects the property and resowces of California." 105
Rich St. Amour
February 9, 2024
Where rh 195.446(e)(4) states
(e) Alarm management. Each operator using a SCADA system must have a written alarm management plan to provide for effective controller response to alarms. An operator's plan must include provisions to:
(4) Review the alarm management plan required by this paragraph at least once each calendar year, but at intervals not exceeding 15 months, to determine the effectiveness of the plan.
MPL failed to determine the effectiveness of its CRM plan. The Alarm Management plan review was more about the procedures, and there were no metrics showing how the effectiveness is being measured. MPL reviews the Alarm Management plan annually along with other parts of its CRM plan. MPL needs to review its alarm management plan at least once each calendar year, but at intervals not exceeding 15 months, to determine the effectiveness of the plan as required by 49 C.F.R. § 1 95.446(e)(4).
EN 24-006
49 C.F.R. § 195.446 Control Room Management.
(a)
(h) Training. Each operator must establish a controller training program and ivvitiw IIIU lieiiiiiiig piugiam bunLvuL Lu iJvnLiry puLvnLial impiuvements at least once each calendar year, but at intervals not to exceed 15 months. An operator's program must provide for training each controller to carry out the roles and responsibilities defined by the operator. In addition, the training program must include the following elements:
(6) Control room team training and exercises that include both controllers and other individuals, defined by the operator, who would reasonably be expected to operationally collaborate with controllers (control room personnel) during normal, abnormal or emergency situations. Operators must comply with the team training requirements under this paragraph no later than January 23, 20'l8.
MPL failed to have control room team training and exercises for FDY that include both controllers and other individuals who would reasonably be expected to operationally collaborate with controllers during normal, abnormal, or emergency situations as required by 49 C.F.R. § 1 95.446(h)(6).
31 106
Rich St. Amour
February 9, 2024
EN 24-007
49 C.F.R. § 195.446 Control Room Management.
(a) iii
(j) Compliance and deviations. An operator must maintain for review during inspection:
(1 ) Records that demonstrate compliance with the requirements of this section.
1. Where § 195.446(b)(4) states:
(b) Roles and responsibilities. Each operator must define the roles and responsibilities of a controller during normal, abnormal, and emergency operating conditions. To provide for a controller's prompt and appropriate response to operating conditions, an operator must define each of the following:
(4) A method of recording controller shift-changes and any hand- over of responsibility between controllers.
MPL failed to provide documents or records of its controller shift-changes and hand-over of responsibility between controllers from February 6, 2020, to February 1, 2021, for Los Angeles Basin (LAB) assets in accordance with 49 C.F.R. § 1 95.446(b)(4), as required by 49 C.F.R. § 1 95.446(j)(1 ). MPL, also, provided only partial shift change records from October 2021 to June 2023. MPL claims ttra-t-th-e-irc-o-n-tr-o-l-r-o-o-m lost the records while they changed the database system. MPL wrote a deviation for not having the records, but it does not relieve them from meeting the regulations. As a result, MPL failed to properly maintain CRM records as required by 49 C.F.R. § 1 95.446(j)(1 ).
2. Where 6195.446(e)(3) states:
(e) Alarm management. Each operator using a SCADA system must have a written alarm management plan to provide for effective controller response to alarms. An operator's plan must include provisions to:
(3) Verifyo the correct safety-related alarm set-point values and alarm descriptions when associated field instruments are calibrated or changed and at least once each calendar year, but at intervals not to exceed 15 months.
MPL failed to provide any records demonstrating verification of correct Safety- Related Alarm (SRA) set-point values and alarm descriptions for 2020, 2021, and 2022 in accordance with 49 C.F.R. § 1 95.446(e)(3), as required by 49 C.F.R. § I 95.446(j)(1 ). The records provided for 2023 indicates MPL did verify the SRA descriptions but failed to verify the correct SRA set-point values. As a result, MPL 107
Rich St. Amour
February 9, 2024
failed to verify the correct safety-related alarm set-point values and alarm descriptions when associated field instruments are calibrated or changed and at least once each calendar year, but at intervals not to exceed 15 months as required by 49 C.F.R. § 1 95.446(e)(3).
3. Where § 195.446(h) states:
(h) Training. Each operator must establish a controller training program and review the training program content to identify potential improvements at least once each calendar year, but at intervals not to exceed 15 months. An operator's program must provide for training each controller to cariy out the roles and responsibilities defined by the operator. In addition, the training program must include the following elements:
(1) Responding to abnormal operating conditions likely to occur simultaneously or in sequence;
(2) Use of a computerized simulator or non-computerized (tabletop) method for training controllers to recognize abnormal operating conditions; (3) Training controllers on their responsibilities for communication under the operator's emergency response procedures;
(4) Training that will provide a controller a working knowledge of the pipeline system, especially during the development of abnormal operating conditions; (5) For pipeline operating setups that are periodically, but infrequently used, providing an opportunity for controllers to review relevant procedures in advance of their application; and
(6) Control room team training and exercises that include both controllers and other individuals, defined by the operator, who would reasonably be expected to operationally collaborate with controllers (control room personnel) during normal, abnormal or emergency situations. Operators must comply with the team training requirements under this paragraph no later than January 23, 2018.
(A) MPL failed to provide documentation of its 2022 controllers training for LAB in accordance with 49 C.F.R. § 195.446(h), as required by 49 C.F.R. § 1 95.446(j)(1 ). MPL needs to review the controllers training program content to identify potential improvements at least once each calendar year, not to exceed 15 months as required by 49 C.F.R. § 1 95.446(h).
(B) MPL failed to provide documentation showing if they use a simulator or tabletop exercises to train controllers how to recognize and respond to abnormal operating conditions for LAB at least once each calendar year, not to exceed 15 months in accordance with 49 C.F.R. § 195.446(h)(2), as required by 49 C.F.R. @ 'r gs.mi(3)('i ).
108
Rich St. Amour
February 9, 2024
EN 24-008
49 C.F.R. § 195.446 Control Room Management.
(a) ...
(j) Compliance and deviations. An operator must maintain for review during inspection:
(1) ...
(2) Documentation to demonstrate that any deviation from the procedures required by this section was necessary for the safe operation of the pipeline facility.
MPL provided two (2) proper deviation documents, 3/1 2/2020 and 2/20/2022, for controllers at LAB exceeding 65 hours-of-service in sliding 7 days and one (1 ) deviation, 1/20/2023, for missing records. MPL needs to be aware that deviation is necessary for the safe operation of the pipeline facility in accordance with 49 C.F.R. § 1 95.446(j)(2).
Pursuant to CGC § 51 0'l8.6, MPL may be subject to a civil penalty not to exceed $266,015 for each violation for each day the violation exists up to a maximum of $2,660,135 for any related series of violations. After reviewing the circumstances and supporting documentation involved in this case, it has been determined that a civil penalty will not be proposed at this time for EN 24-005, EN 24-006, EN 24-007, and EN 24-008. We advise you to correct the items identified in this letter. Failure to do so may result in MPL being subject to additional enforcement actions.
No reply to this letter is required. If you have any questions regarding these items, please do not hesitate to contact Huy Ngyuen, Supervising Pipeline Safety Engineer, at (562) 497-0352
Sincerely,
L"980F8D3AE95"C42E.
JAMES HOSLER
Assistant Deputy Director
Chief of Pipeline Safety and CUPA Programs
cc: Huy Nguyen, OSFM, Supervising Pipeline Safety Engineer Doug Allen, OSFM, Supervising Pipe!ine Safety Engineer Joshua Cleaver, CAL FIRE, Staff Counsel
109
Water Boards
Los Angeles RegionaJ Water Quality Control Board
March 'I 1, 2024
Angela Brown
Tesoro Logistics Operations LLC
539 South Main Street
Findlay, Ohio 78259
C T Corporation System
Agent for Service of Process for
Tesoro Logistics Operations LLC
330 North Brand Boulevard, Suite 700
Glendale, California 91203
Certified Mail
Return Receipt Requested
Claim No. 9589 0710 5270 1463 4165 72
Certified Mail
Return Receipt Requested
Claim No. 9589 0710 5270 1463 4170 67
NOTICE OF VIOLATION: FAILURE TO DEVELOP A COMPLETE STORMWATER POLLUTION PREVENTION PLAN - VINVALE MARKETING TERMINAL, 8601 SOUTH GARFIELD AVENUE, SOUTH GATE, CALIFORNIA 90280, WDID 4191024234 Dear Angela Brown:
Tesoro Logistics Operations LLC (Permittee) operates the facility Vinvale Marketing Terminal at 8601 South Garfield Avenue in South Gate (Facility) that is subject to the requirements of the NPDES General Permit for Stormwater Discharges Associated with Industrim Ar:tivities Order No. 2014-0057-r)WQ as ;msnrlerl in ';'015 and 2018 (Amenrlerl General Permit). Vinvale Marketing Terminal is classified under Standard Industrial Classification (SIC) code 5171 - Petroleum Bulk Stations and Terminals. Section X of the Amended General Permit requires Tesoro Logistics Operations LLC to develop and electronically submit via the Stormwater Multiple Application and Report Tracking System (SMARTS) database, a Stormwater Pollution Prevention Plan (SWPPP).
The SWPPP electronically submitted by the Permittee on March 17, 2021 via SMARTS does not meet all the requirements listed in the Amended General Permit Section X.
YOU ARE HEREBY NOTIFIED that the Permittee is in non-compliance with the Amended General Permit and has violated California Water Code Section 13385 as follows:
SWPPP Violations:
* The SWPPP does not include the monitoring duties of the Pollution Prevention Team. This is a violation of the Amended General Permit Section X.D. l.a. * The SWPPP does not include procedures to identify alternate team members to the Pollution Prevention Team. This is a violation of the Amended General Permit Section X.D.l.c.
NORMA CAMACHO, CHAIR I SUSANA ARREDONDO, EXECUTIVE OFFICER 320 West 4th Street, Suite 200, Los Angeles, CA 90013 I www.waterboards.ca.gov/losangeles 110
Angela Brown
C T Corporation System
Tesoro Logistics Operations LLC
March 11, 2024
* The SWPPP does not include handling frequencies of listed industrial materials.
This is a violation of the Amended General Permit Section X.F. * The SWPPP does not specify the person responsible for implementing the BMPs.
This is a violation of the Amended General Permit Section X.H.4.a.iv. * The SWPPP does not identify the team members assigned to conduct the monitoring requirements in the Monitoring Implementation Plan (MIP). This is a violation of the Amended General Permit Section X.I.I. * The Monitoring Implementation Plan (MIP) does not include an example of the Facility's Chain of Custody form used when handling and shipping water quality samples to the lab. This is a violation ofthe Amended General Permit Section X.1.5. * The SWPPP does not include the date of each SWPPP Amendment. This is a violation of the Amended General Permit Section X.A. 10.
The Permittee is required to take the followinq actions:
* Ensure the SWPPP includes a description of the monitoring duties of each team member in the Pollution Prevention Team in accordance with the Amended General Permit Section X.D.1.
* Ensure the SWPPP contains procedures to identify alternate team members to the Pollution Prevention Team in accordance with the Amended General Permit Section X.D.1.c.
* Ensure the SWPPP includes handling frequencies of listed industrial materials in accordance with the Amended General Permit Section X.F. * Ensure the SWPPP identifies the individual and/or position responsible for implementing the BMP in accordance with the Amended General Permit Section X.H.4.a.iv.
* Ensure the SWPPP includes a complete MIP including the identification of team members assisting in developing the MIP in accordance with the Amended General Permit Section X.I.1.
* Ensure the SWPPP includes an example of a Chain of Custody form in its MIP in accordance with the Amended General Permit Section X.1.5. * Ensure the SWPPP includes the date that the SWPPP was initially prepared and the date of Each SWPPP Amendment, if applicable in accordance with the Amended General Permit Section X.A. 10.
* Ensure the Pollutant Source Assessment in the SWPPP includes an assessment identifying pollutants related to Total Maximum Daily Loads (TMDLs) in occordance with the Amended General Permit Section X.G.2.a.ix. Include the following information to justify whether additional TMDL requirements will or will 2 111
Angela Brown
C T Corporation System
Tesoro Logistics Operations LLC
March 11, 2024
not apply to the Facility:
A. Specify the industrial materials used that may be exposed to stormwater runoff and the pollutant parameters that are associated with the industrial materials, then describe potential exposure pathways and degree of exposure to stormwater in these areas (Amended General Permit Section X.G.2.a).
B. Upon identifying the drainage areas with no exposure to industrial activities and materials (Amended General Permit Section X.G.2.c), describe any industrial activities or materials that are present in that drainage area and specify the pollutant parameters that are associated with the industrial materials and activities in these areas.
C. Conclude the assessment with a statement on whether additional sampling parameters should be included in the Facility's monitoring program based on presence or absence of pollutants related to the applicable TMDL (Amended General Permit Sections Xl.B.6.e).
By April 10, 2024, Tesoro Logistics Operations LLC is required to take the actions described above and electronically submit the SWPPP via SMARTS.
If Tesoro Logistics Operations LLC fails to respond, it may be subject to enforcement action, including administrative civil liabilities of up to ten thousand dollars ($10,000) per day of violation of the General Permit pursuant to California Water Code section 13385.
These administrative civil liabilities may be assessed by the Los Angeles Regional Water Quality Control Board (Los Angeles Water Board) beginning with the date that the violations first occurred. The Los Angeles Water Board may also refer this matter to the Attorney General's Office for further enforcement. This notice shall not be deemed to relieve Tesoro Logistics Operations LLC of liability for any penalties that may have already accrued. The Los Angeles Water Board reserves its right to take any further enforcement action authorized by law.
If the Permittee needs assistance or has questions, please contact Lydia Kim at (213) 620-2695, via email at lydia.kirn@,waterboards.ca.qov or Pavlova Vitale at (213) 576-6751, via email at pavlova.vitalepwaterboards.ca.qov.
Sincerely,
Russ Colby
Acting AsSistant Executive Officer
cc: (via email)
Arturo Cervantes, Public Works Director, City of South Gate, [email protected] 3 39
112
Attachment D
CITY OF SOUTH GATE
TESORO SOCAL PIPELINE COMPANY, LLC. LINES
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113
CffYMANAGER'S OFFICE Item No. 5
APR 04 202't
@ .'05- f)m City of South Gate
CITY COUNCIL
AGENDA BNLL
Department Director:
For the Regular Meeting o'f: April 9, 2024
Ori i i Depaytment: Public Works
x'l
,A/2'7rr a<ntes- CityManager:Rob Houston
SUBJECT: RESOLUTION TERMINATING CONTRACT N0. 2022-84-CC WITH NR DEVELOPMENT, INC. FOR DEF AULT PER THE STANDARD SPECIFICATIONS FOR
PUBLIC WORKS CONSTRUCTION FOR THE HOLLYDALE COMMUNITY PARK, CITY PROJECT N0. 607-PRK
PURPOSE: To ten'ninate Contract No. 2022-84-CC ("Agreement") between the City of South Gate and NR Development, Inc. ("NR Development") for default per Section 6-7 ("Teri'nination of the Contract for Default") of the 2021 Standard Specifications for Public Works Construction ("Greenbook") for the construction of the Hollydale Community Park Project, City Project No. 607-PRK ("Project"), effective April 9, 2024.
RECOMMENDED ACTIONS: The City Council will consider:
a. Adopting a Resolution to terminate Contract No. 2022-84-CC between the City of South Gate and NR Development, Inc., for default effective April 9, 2024, for the Hollydale Cornrnunity Park Project, City Project No. 607-PRK; b. Directing the Mayor to execute a document in a fori'n acceptable to the City Attorney advising NR Development, Inc., and the bonding company that the Agreement has been ten'ninated for default; and
c. Authorizing tlie City Manager, or his designee, to execute any related documentation in pursuit of the City's remedies against NR Development, including its bonding company in an effort to complete the Project including, but not limited to, the retention of a successor contractor.
FISCAL IMPACT: There is no impact to the General Fund. Termination of the Agreement will not require the City to compensate NR Development, Inc. since they have been compensated for work completed to date. Since the City has declared the contractor to be in default under its Agreement for the Project, the City has the right to charge NR Development liquidated damages starting October 27, 2023, at an amount of $1,000 per working day as stipulated in the Agreement documents which amount to $118,000 as of April 9, 2024. The Project has received a total of $6,043,452 in grant fimds, of which approximately $1,707,904 (about 34%) remain available, be utilized to fund Project costs associated with terminating the Agreement and completing the construction of the Project under a new agreement. 1 AQil77a) rlQArlQlQ zlQ/,lmtzll 17a),,1 114
ANALYSIS: OnSeptember27,2021,tlieCityCouncilapprovedContractNo.2022-84-CCwith NR Development in the amount of $4,899,816 for the construction of the Project. The initial approved construction scl'iedule required construction to begin on November 2, 2022 and to be completed by September 5, 2023. Unfortunately, NR Development was unable to complete construction and has abandoned tlie job site.
Section 6-7 of the Greenbook peri'nits the City to terminate the Agreement wlien the contractor fails to cure a default related to the contractor's obligations. Section 6-7 specifies general categories of default, provides for specified notices to be delivered by the City and sets forth obligations of the surety. As reflected below, City staff complied with the requisite notices setting forth the nature of default by NR Development, and its subsequent failure to cure.
Accordingly, City staff recommends the City Council declare NR Development to be in default under its Agreement for the Project and to exercise appropriate remedies, which includes making a claim under the performance bond provided to the City by NR Development in coru'iection with the Project. City staff took reasonable steps in compliance with Section 6-7 in advance of making this recoinmendation.
@ On October 11, 2023, the City stated its concern regarding the prosecution of work on the Project, because the completion deadline of October 26, 2023, was only two weeks away.
The City requested a recovery schedule from NR Development. NR Development never provided the City with the recovery schedule.
* On October 19, 2023, the City emailed the Notice to Cure letter to NR Development to prosecute the work in a timely manner. NR Development initially complied with the request prosecuted work at an acceptable level for an estimated two to three weeks.
Thereafter, their perfonnance declined dramatically. * On December 12, 2023, the City submitted a Notice of Liquidated Damages notifying NR Development that it had accrued 30 days in Liquidated Damages. * On January 5, 2024, NR Development submitted a letter to the City coinmitting to finishing the remaining work on the Project.
* On January 15, 2024, and for the next six consecutive working days, the City witnessed no activity on the Project site. However, on January 23, 2024, the City visited the job site and found that NR Development sent one laborer to install sections of the irrigation line for a few hours. There was no further activity on site thereafter. * InspiteofNRDevelopment'scommitmenttocompletetheProject,theCityhadwitnessed a very low level of production and for the last 16 consecutive working days. There was no activity on the job site from January 24 to February 14, 2024. * On February 14, 2024, the City notified NR Development that it had incurred 80 working days of Liquidated Damages owing to the City, and it must complete all remaining improvements per Agreement documents and as directed by the City Engineer no later than March 29, 2024.
2 A Q T 2 7 7 a) n Q An Q I Q A Q A I Q n 2 A I T 7 J ii T 115 * NR Development failed to meet the March 29f" deadline. As of March 29, 2024, the City had not seen any construction activity on the Project site since January 24, 2024. It is apparent to the City that NR Development did not make any effort to meet this deadline.
Despite repeated requests from the City to NR Development to continue progressing on the work for the Project in a diligent and acceptable manner, NR Development has failed to do so. It has not made a good faith effort to provide sufficient resources to finalize the remaining scope of work in a timely manner. This noncompliance has resulted in substantial financial damages to the City due to the delay. The City is suspending construction activities at the Project site after NR Development has failed to fulfil its contractual obligations, comply with Plans and Specifications, and has not performed any construction on the Project witliin the last 11 weeks.
The accrual of additional financial damages can be minimized by teri'ninating Contract No. 2022- 84-CC as soon as possible and resuming the Project under a new construction agreement in coordination with the bonding company. As such, City staff recommends the City Council declare the contractor to be in default under its Agreement for the Project.
BACKGROUND: The Project is budgeted in the Capital Improvement Program. The improvements proposed include a 1,700 square-foot building, storm water chambers, playground, synthetic turf, sand and water play area, basketball court shade structures, a new irrigation system, decomposed granite, park bench and picnic tables, permeable pavers, concrete flat work, and other miscellaneous park amenities. The construction on the Project is currently at about 80% completion.
NR Development was awarded a construction Agreement to complete the Project and has abandoned the job site. It is estimated that NR Development completed 80% or less of the required Agi-eement work before abandoning the Project.
It is uncertain how long it will take to complete construction of the Project. The City will be discussing with the bonding company to outline the process and schedule for construction completion.
The Project has received the listed grants construction:
Grants Amount
Prop A $285,000
Rendon Fund $1,600,000
State Parks- Prop. 68 Grant $4,158,452
Total $6,043,452
ATTACHMENTS: A. Proposed Resolution
B. Contract No. 2022-84-CC
C. Change Order Nos. 1 and 2
D, Greenbook, Section 6-7
ES:lc
3 A Q T 2 7 7a) nil tJ1Q I a) AQA I lll'l IA I I I Qx- I 116 Attachment A
RESOLUTION NO.
CITY OF SOUTH GATE
LOS ANGELES COUNTY, CALIFORNIA
RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, TERMINATING CONTRACT N0. 2022-84-CC WITH NR DEVELOPMENT, INC. FOR DEF AULT PER SECTION 6-7 (TERMINATION OF THE CONTRACT FOR DEFAULT) OF THE 2021 STANDARD
SPECIFICATIONS FOR PUBLIC WORKS CONSTRUCTION (GREENBOOK)
FOR THE CONSTRUCTION OF THE HOLLYDALE COMMUNITY PARK PROJECT, CITY PROJECT N0. 607-PRK
WHEREAS, the Hollydale Coi'm'nunity Park Project, City Project No. 607-PRK ("Project") is a part of the Capital Improvement Program and has received over $6 million in grant funds; WHEREAS, on September 27, 2021, the City Council approved Contract No. 2022-84-CC ("Agreement") with NR Development, Inc. ("NR Development") in the amount of $4,899,816 for the construction of the Project. The initial approved construction schedule required construction to begin on November 2, 2022 and to be completed by September 5, 2023; WHEREAS, construction began on November 2, 2022, and has now reached approximately 80 percent completion. Two Agreement change orders have been approved for a total of $135,791.86. The revised Agreement amount is $5,035,607.86; WHEREAS, NR Development has failed to fulfill its contractual obligations to comply with plans and specifications, has not performed any construction on the Project within the last 11 weeks and failed to comply with City's directive to complete the Project by March 29, 2024; WHEREAS, the City has suspended its constniction management and inspection services on the Project due to inactivity from NR Development; WHEREAS, as of March 29, 2024, NR Development has entered its 11 8th day without any activities and currently has incurred $118,000 in liquidated damages owed to the City. The City has detemiined that it is in its best interest to tenninate Contract No. 2022-84-CC as soon as possible, to mitigate the financial impact of that order on the Project by stopping the daily incurrence of those delay costs;
WHEREAS, Section 6-7 of the Greenbook permits the City to terminate the Agreement when the contractor fails to cure a default related to the contractor's obligations. Section 6-7 specifies general categories of default, provides for specified notices to be delivered by the City and sets forth obligations of the surety;
WHEREAS, City staff complied with the requisite notices setting forth the nature of default by NR Development, and its subsequent failure to cure; and Page l of 2
AS13772.0860872 4885-5482-5908vl
117
WHEREAS, the City has declared NR Development to be in default under its Agreement for the Project and seeks to exercise appropriate remedies, which include termination of that Agreement and making a claim under the performance bond provided to the City by NR Development in connection with the Project.
NOW, THEREFOR, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY RESOLVE AS FOLLOWS:
SECTION 1. The City Council does hereby declare that the above recitals and findings are true and correct and incorporated herein by reference.
SECTION 2. Pursuant to the authority provided by Contract No. 2022-84-CC, the City Council hereby finds NR Development, Inc. to be in default under Contract No. 2022-84-CC, hereby tertninates Contract No. 2022-84-CC for default, and hereby authorizes the Mayor to execute a document in a form acceptable to the City Attorney advising NR Development, Inc. of such termination.
SECTION 3. The City Council does hereby delegate authority to the City Manager, or his designee, to execute any related documentation in prirsuit of the City's remedies against NR Development, including its bonding company, in an effort to complete the Project including but not limited to the retention of a successor contractor.
SECTION 4. The City Clerk shall certify to the adoption of this Resolution, which shall be effective upon its adoption.
PASSED, APPROVED and ADOPTED this 9'h day of April 2024.
CITY OF SOUTH GATE:
B)7:
Gil Hurtado, Mayor
ATTEST:
By:
Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:
By:
T!ala:,">t'y('A'tt'oSi!
AS13772.0860872 4885-5482-5908vl
118
Contract No. 2022-84-CC
Attachment B
AGREEMENT FOR HOLLYDAIF, COMMUNITY PARK
IMPROVEMENT PROJECT, CITY PROJECT NO. 607-PRK, BETWEEN
THE CITY OF SOUTH GATE AND
NR DEVELOPMENT, INC.
This Agreement for the Hollydale Community Park Improvement Project, City Project No. 607-PRK (The Park) ("Agreement"), is made and entered into on September 27, 2022, by and between the City of South Gate, a municipal corporation ("City"), and NR Development, Inc., a California corporation, License No. 3692581 ("Contractor"). City and Contractor are sometimes hereinafter individually referred to as a "Party" and collectively referred to as "Parties." The City and the Contractor hereto mutually agree as follows:
ARTICLE I
THE PROJECT
For and in consideration of the mutual promises set forth herein, Contractor agrees with City to perform and complete in good and workmanlike manner all work required by the Contract Documents for City Contract No. , which involves the Park, City Project No. 607-PRK.
Said work shall be performed in accordance with the Plans, Specifications, and other Contract Documents, all of which are referenced in Article III hereof and incorporated herein as though fully set forth. Contractor shall fumish at its own expense all labor, materials, equipment and services necessary therefore, except such labor, materials, equipment and services as are specified in the Contract Documents to be furnished by City.
ARTICLE II
CONTRACT SUM AND PAYMENT
For performing and completing the work in accordance with the Contract Documents, City shall pay Contractor, in full compensation therefore, the contract sum of Four Million Eight Hundred Ninety-Nine Thousand Eight Hundred Sixteen Dollars and Twenty-Four Cents ($4,899,816.24) set forth in the Bid Schedule(s) that are included among the Contract Documents.
Said sum shall constitute payment in full for all work performed hereunder, including, without limitation, all labor, materials, equipment, tools and services used or incorporated in the work, supervision, administration, overhead, expenses and any and all other things required, furnished or incurred for completion of the work as specified in the Contract Documents. City shall make payments to Contractor on account of the contract sum at the time, in the manner, and upon the conditions specified in the Contract Documents.
119
ARTICLE III
CONTRACT DOCUMENTS
The Contract Documents, which constitute the entire Agreement between the City and the Contractor, are enumerated as follows: the Notice Inviting Bids, the Instuctions to Bidders, the Accepted Proposal, the Bid Schedule(s), the List of Subcontractors, Contractor's Industrial Safety Record, the Contractors Qualification Statement, the Bid Security Forms for Check or Bond, this Agreement, the Worker's Compensation Insurance Certificate, the Performance Bond, the Payment Bond, the Non-Collusion Affidavit, the Specifications, and Special Provisions and all addenda as prepared prior to the date of bid opening setting forth any modifications or interpretations of any of said documents, and any and all supplemental agreements heretofore or herewith executed amending or extending the work contennplated and which may be required to complete the work in a substantial and acceptable manner, all of which are referred to as the Contract Documents. These fomi the entire "Contract", and all are as fully a part of the Contract as if attached to this Agreement or repeated herein.
ARTICLE IV
INDEMNIFICATION
The Contractor shall indemnify, hold harmless and defend (with counsel selected by the City), the City of South Gate and its affiliated entities, its officers, employees, consultants and sub- consultants, their respective officers, agents, employees (collectively the "Indemrfflfied Parties"), from any and all claims and losses whatsoever occutg or resulting to any and all persons, fimns, or corporations furnishing or supplying work, services, materials, or supplies in connection with the perfomnance of this Agreement, any and all claims, lawsuits or actions arising from the awarding or execution of this Agreement, and from any and all claims and losses occurring or resulting to any person, firm, corporation or property for dmnage, injury, death arising out of or connected with the Contractor's obligation to indemnify, defend and save harmless the "Indemnified Parties" as stated hereinabove including, but not be limited to, paying all legal fees and costs incurred in connection with any such claims, losses, lawsuits or actions. THIS
PROVISION SHALL SURVIVE THE COMPLETION OF WORK AND SERVICES TO BE
PROVIDED UNDER THIS AGREEMENT AND THE OTHER CONTRACT DOCUMENTS
ARTICLE V
COMMENCEMENT, COMPLETION AND LIQUIDATED DAMAGES
Contractor shall commence work on a date to be specified in a written Notice to Proceed from the City's Director of Public Works, and shall complete all work within ninety (90) calendar days thereafter (subject to "force majeure" delays, if any, to the extent allowed under the Contract Documents). If the work is not completed within that time, Contractor shall owe and pay to the City liquidated damages in the amount or amounts set forth in the Contract Documents. 120
ARTICLE VI
EFFECTIVE DATE
This Agreement shall become effective and commence on September 27, 2022.
IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and attested by their respective officers thereunto duly authorized.
CITY OF SOUTH GATE:
Al Rios, Mayor
Dated: " 622
ATTEST:
Yodit G City Clerk
APPROVED AS TO FORM:
s
I
BY:
F. Salinas, City Attomey
NR Development, Inc.
Name, Tffie
Dated: lo/1'I5/'Zl
121
CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT
A Notmy Public or other officer completing tbis certificate veffies only the identity of the individual who signed the document to which tis certificate is attached, and not the hudifiilness, accumcy, or validity of that docunient.
State of California
County of Los Angeles
subsibed to the within instnunent and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by hisAier/their signature(s) on the instnunent the person(s), or the entity upon behalf of which the person(s) acted, executed the instnunent.
I certify under PENALTY OF PERJURY under the laws of State of California that the foregoing paragraph is title and correct.
COMM. #2284926 z
j'! Notary Publi.c - Callfornla g"
WITNESS my
SIGNA
PLACE NOTARY SEAL ABOVE
Though the infomiation below is not required by law, it may prove and could prevent fraudulent removal and reattachment of and official seal.
persons relying on the document
to another document.
Description of attached document
Title or type of document:
#S3'reer
Document Date: Number of Pages:
Signer(s) Other than Named Above:
122
WORKER'S COMPENSATION INSURANCE CERTIFICATE
The Contractor shall execute the following fomi as required by the California Labor Code, Sections 1860 AND 1861.
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 perfomiance of the work of this Contract.
DATED: la/is/tt
NR DEVELOPMENT, INC.
Contractor
Name
Vice President
Title
ATTEST:
sy:DSdl,amre7/,r)c,uie.it-a-,F3oyJc-hovuJ'
\JalCx Pre.J'l()xv4
Title
123
INDEMNIFICATION AND LIABILITY INSURANCE REQUIREMENTS The following requirements must be met when submitting insurance certificates to the City of South Gate in connection with Public Works and other projects:
The insurance certificate must be issuedto the City of South Gate, 8650 California Avenue, South Gate, CA 90280, attention of the City Engineer.
The City of South Gate, South Gate Housing Authority, and their officers, employees, elected officials, and agents must be shown as additional insured per ISO CG 20 101185, and separate endorsement signed by an a'uthorized representative ofthe insurance company is required.
The City has the right to request a copy of complete insurance policy including all endorsements and certificates.
The Certificate must include cross liability coverage either included in the Commercial General Liability coverage, and so indicate on the face ofthe Certificate underthat heading or by separate endorsement.
The Certificate should also indicate that the insurance covers "All Operations" or should specify the particular services to be provided.
Contractor shall procure and maintain for the duration of the Contract insurance against claims for injuries to persons ordamages to property whichmay arise from or in connection with the performance of the work hereunder by the Contractor, his agents, representatives, employees or subcontractors.
Minimum Scope of Insurance
Coverage shall be at least as broad as:
1. Insurance Services Office Commercial General Liability coverage (occurrence from CG 0001).
2. Insurance Services Office form number CA 0001 (Ed. 1/87) covering Automobile Liability, code 1 (any auto).
3. Workers' Compensation insurance as required by the State of California and Employer's Liability Insurance.
4. Course of Construction insurance covering for "all risks" of loss. Earthquake and flood insurance is not required to be furnished by the Contractor 124
Contractor shall maintain limits no less than:
1. General Liability: $1,000,000 per occurrence for bodily injury, personal injury and property damage. If Commercial General Liability Insurance or other form with a general aggregate limit is used, either the general aggregate limit shall apply separately to the project which is the subject of this Agreement and the location where work thereunder is to be performed, or the general aggregate limit shall be twice the required occurrence limit.
2. Automobile Liability: $1,000,000 per accident for bodily injury and property damage.
3. Employer's Liability: $1,000,000 per accident for bodily injury or disease.
4. Course of Construction: Completed value of the project that is the subject of this Agreement.
Deductibles and Self-Insured Retention
Any deductibles or self-insured retention must be declared to and approved by the City. At the option of the City, either the insurer shall reduce or eliminate such deductibles or self- insured retention as respects the City, its officers, officials, employees and volunteers; or the Contractor shall provide a financial guarantee satisfactory to the City guaranteeing payment of losses and related investigations, claim administration and defense expenses.
Other Insurance Provisions
The general liability and automobile policies are to contain, or be endorsed to contain, the following provisions:
1. The City, its officers, officials, employees, and volunteers are to be covered as insurers with respect to liability arising out of automobiles owned, leased, hired or borrowed by or on behalf of the Contractor; and with respect to liability arising out of work or operations performed by or on behalf of the Contractor including materials, parts or equipment furnished in connection with suchwork or operations.
General liability coverage can be provided in the form of an endorsement to the Contractor's insurance or as a separate owner's policy.
2. For any claims related to the project that is the subject of this Agreement, the Contractor's insurance coverage shall be primary insurance as respects the City, its officers, officials, employees, and volunteers. Any insurance or self-insurance maintained by the City, its officers, officials, employees, or volunteers shall be excess of the Contractor's insurance and shall not contribute with it.
3. Each insurance policy required by this clause shall be endorsed to state that coverage shall not be canceled, or modified, by either party, except after thirty (30) days' prior written notice by certified mail, return receipt requested, has been given to the City. 125
Course of construction policies shall contain the following provisions:
1. The City shall be named as loss payee.
2. The insurer shall waive all rights of subrogation against the City.
Acceptability of Insurers
Insurance is to be placed with insurers with a current A.M. Best's rating of no less than A:VII.
Verification of Coverage
Contractor shall furnish the City with original certificates and amendatory endorsements effecting coverage required by this clause. The endorsements should be on forms provided by the City or on other than the City's forms, provided those endorsements or policies conform to the requirements. All certificates and endorsements are to be received and approved by the City before work commences. The City reserves the right to require complete, certified copies of all required insurance policies, including endorsements affecting the coverage required by these specifications at any time.
Subcontractors
Contractor shall include all subcontractors as insurers under its policies or shall furnish separate certificates and endorsements for each subcontractor. All coverage for subcontractors shall be subject to all of the requirements stated herein.
Indemnification
The Contractor shall indemnify, hold harmless and defend (with counsel selected by the City of South Gate), the City of South Gate, the City of South Gate Housing Authority, their consultants and sub-consultants, and their respective officers, agents, and employees, from any and all claims and losses whatsoever occurring or resulting to any and all persons, firms, corporations or other entities furnishing or supplying work, services, materials, or supplies in connection with the performance of this Agreement, any and all claims, lawsuits or actions arising from the awarding or execution of this Agreement, and from any and all claims and losses occurring or resulting to any person, firm, corporation or other entity, or property for damage, injury, death arising out of or connected with the Contractor's obligationto indemnify, defend and save harmless the City of South Gate, the City of South Gate Housing Authority, their consultants, sub-consultants, and other parties listed above, as stated hereinabove shall include, but not be limited to, paying all legal fees and costs incurred by legal counsel of the City of South Gate's choice in representing the City of South Gate, the City of South Gate Housing Authority, consultants and sub-consultm'its in connection with any such claims, losses, lawsuits or actions. THIS PROVISION SHALL
SURVIVE THE COMPLETION OF WORK AND SERVICES TO BE PROVIDED
UNDER THIS AGREEMENT
126
Executed in 2 original
counterparts
BOND NUMBER: 4532016 -
final bond premium may change
based upon the final contract value
HOLLYDALE COMMUNITY PARK IMPROVEMENT PROJECT,
CITY PROJECT NO. 607 -PRK
FAITHFUL PERFORMANCE BOND
100% OF CONTRACT AMO{JNT
KNOW ALL MEN BY THESE PRESENTS:
WHEREAS, the City of South Gate ("City" herein) has awarded to NR Development, Inc., ("Contractor" herein) a Contract for:
THE CONSTRUCTION OF HOLLYDALE COMMUNITY PARK IMPROVEMENT PROJECT, CITY PROJECT NO. 607-PRK; and
WHEREAS, said Contract is incorporated herein by tliis referei'ice; and WHEREAS, said Contractor is required under the terms of said Contract to furnish a bond for the faithful perfortnance of said Contract;
GREAT AMERICAN
NOW, THEREFORE, we, Contractor and INsURANCE CoMPANY as Surety, are held and firmly bound unto the City in the penal sum of Four Million" ($ " ) lawful money of the United States, for the payment of which we bind ourselves, our heirs, successors, executors and administrators, jointly and severally, firmly by tliese presents.
The condition of this obligation is such that the obligation shall become null and void if the above-bounded Contractor, his or its heirs, executors, administrators, successors, or assigns, shall in all tliings stand to, abide by, well and truly keep and perform the covenants, conditions and provisions in said Contract and any alteration thereof made as therein provided, on his or their part, to be kept and performed at tlie time and in tlie inanner therein specified, and in all respects according to their true intent and meaning, and shall ii'idemnify and save harmless the City, its officers, agents and einployees, as therein stipulated; otherwise, tliis obligation shall be and remain in full force and effect.
As a part of tlie obligation secured hereby, and in addition to the face amount specified, costs and reasonable expenses and fees shall be included, including reasonable attorneys' fees, i ncurred by the City in successfully enforcing the obligation, all to be taxed as costs and included ii 'i any judgment rendered.
Tlie Surety hereby stipulates and agrees tliat no change, extension of tiine, alteration or addition to the terms of the Contract, the work to be performed thereunder, or the speci('ications that accompany tlie Contract shall in any manner affect its obligations oii this bond. The Surety liereby waives notice of any such change, extension of time, alteration or addition to the terms of the Contract, the work, or the specifications.
"Eight Hundred Ninety-Nine Thousand Eight Hundred Sixteen and 24/1 00 " $4,899,816.24
127
Note: A(l signatures must be acknowledged before a notary pubIic. Attacli appropriate acknowledgment.
CONTRACTOR NAME:
B:Y:
.D4Y [)ah:ic 6o3Ac-hd's("
Title: N'lCA- President
NR DEVELOPMENT, INC.
12731 LOS NIETOS RD.
SANTA FE SPRINGS, CA 90670
(Type address of Contractor)
GREAT AMERICAN
INSURANCE COMPANY
(Type name of Surety)
750 THE CITY DRIVE, SUITE 470,
ORANGE, CA 92868
(Type address of Surety)
(Signature of azed officer)
PHILIP E. VEGA
ATTORNEY ACT
(Title of officer)
APPROVED AS TO FORM:
B7:
Raul F. Salinas, City Attorney
128
J
GREAT AMERICAN INSURANCE COMPANY@
Admlnlstrative Office: all E 4TH STREET ' CINCINNATI, OHIO 45202 ' 513-389-5000 ' FAX 519-723-2740 Tlie nuniher or persoiis atitliorizcd liy
tliispoverofiittorneyisnoiinoreilmn FOUR
No.0 20974
POWER OFA"ITORNE 1"
KNO11'ilLLMEN[n'THESEPRESENTS: allmtllieOREATAMERICAN!NSURANCECOMPANYlaCOrpOraliOI10rgariizedalldexiStinglinder and by Virille Orllle laws orlhe Slale orOhioi does licrcby norriinnte, coiis(itule alld appoint the person Or pcrsOiiS nained below, eacli individually irinore than Oiie ii named, its inic nild iaiiirui altoniey-in-nick, for it alld ill itS Ilaille, place aiid stead to execute Oil bellalrOrlhti Satd Company, as surety, any and all bonds, uimcrtakings and contracts orsure(ysliip, or other ii'rillen obligalions in llic nmure thereof, provided tlmt the liabilily oflhe said Compaity on aiiy sucli bond, undertaking ot contrac( or sutctysliip executed under iliis autbority slmll not exceed tlie limil s(a(cd below.
PHILIP E. VEGA
KEVIN VEGA
BRITTON CHRISTIANSEN
MYRNA F. SMITH
Naine Address LiintlorPower
ALLOF AIL
COVINA,CALIFORNIA SiO0,000,CIOO
Tliis Power orAllorney revokes all )irevious poivers issued on belialrortlie attomey(s)-iii-fact nnnied aLiova.
INSVITNEiSSWHEREOFllie(iREAT AMER}CANINSURANCECOMPANYIiascaiisedtliesepresents(obasiguednndnllestedbyitsappropriiilc on!ceriiiiidilscorpomlescalhereuntonf?ixedthis 29TH dnyor NOVEMBER , 2017 Allesl CiREATAMERICAN}NSllRANCECOMPANY
,4sslllqlll 8(14@ry f)lVhklllnl Satll{Or t+Ci /' rlllddll STATE OF OHIO, COUNTY OF HAMILTON - AS: DAVIOO. mcsui(a'trmy.H On lliis 29TH day or NOVEMBER , 2017 , baftire ine persoimlly appeared DAVID C. KrrCHlN, to uie kllOu'il, bein8 dul} SlVOnl, deposes and Sa}S 11tat lie resides ill CillCilumti, O)liO, tllal lie iS a DiViS!OIIRI Senior ViCa Presidenl orttle BOlld DtVt$tOn orGreat hllleriCtilllllSllranCecOnlpiill},tl1eColllpnllydesCribeaillailtlwhiChOXCClliediileaboVeiusirunleni;ihniilekri0wSilleSealOrtllaSiitacOnll)any:tllat kscnl afflXed €O life tai(l inStnll!Xllt IS 811011 corporate seal:that it was !iO affixed by aulliotity or liis Offl(:t} tlllder Ille B)'-(Al%1 04'!Jlld COlnpall)1, Mid tliat be Sqllled Ill!i naine llierelo b)i like ati!litirily.
manA.Kohom
NomPubk8msoff)hb ,A,..,-a=i!i
niis Ponaer orAllomey is granted by atil)iorily orlliti rollowiiig rcsolulioiis adopted by Ilie Board or Direclors orCireatAmericau Insurattca Company by unnninious written coiiscnl da(ed June 9, 2008.
RESOU'ED: T/I(I/ l/18 Di!llStOml PreSldelll, tlle 8eS'elMl DtvtStwd Selllar ViCe j'reSidenlS, Dh!lSIOnal HCe PreSldenl3 0lld DiVtsOllal !SS{S/allt F/C(! PreSlttellts, Orm0l Olle dlhenl, be alldtlerOby /s alllllOrited jiolll lime 40 441110, €O appalnl One OrlllOre ]lllOrlleys-In-FaCl 10 emCllte OI} beharfOjtlle COltpan)l asstwe5i tmywaaiihiis, rrnaertatthsgsanacontracis<srwetyship, orooitrwut*nobitgat=nsinihenmureoiere< tapieseibetheirrespecttvathtnesand like re3peCth'e Illlllls oftheir alltilOrlly; mld €0 rgiio&g an>lSltCh appOlnllllellt at any l/till.
RESOl.llEDFUllTHER: ThntlheCoinpai5isectltmdlhesfgtrnlureojai5'o/llietipresaid4cersoirrtm5iSgcrelaryorAssistmilSeealaryoJllw Comparpa rm,si be afied byfncsiinile to any power ofairorne)i or cvtificat* ofgitiwr given pr //l@ wcuoon o/mpa bona ir*idarmking, coritraci oJsureiysjiipi Ola Olller Sl'rllten ObligattOll /II //18 Ilatllre IllereOf, SllCh SlgrTalllrv wd Seat 111hen SO 11.!19(/ being hmbya(10pled by Ille COllqxiny aS the OrlgllLatStgnnlllre o/ ELICIT qflfcer and tlw ori54incil seal o/ilig Coinpari)i /6 be valid and bindirig upon //If Comprm)i iiojl/i ilia srvm prce and$ct as ihougli rnanuall)i afflted.
CERTIFlCA'liON
I, STEPI IEN C. BF.RA14A, ASsistan( Secrelnry orOreat Aiiiertcriii Insurance Coinpany, do liereby certiry lhnl 11te roraBoing Powett3rAlromey tutd ilie Resolutions orllte Board orDirectors or Jllll(! 9, 2008 linvc not been revoked aiid are now iii full rorce and etTecl.
Signed and sealed Iliis 29th day or SEPTEMBER
A.nl.onm.'ectvmry
stoagtv(otvis)
129
rAI IfOmllA 41 1, r!Jnf'Ogi ACKNOWLIDaMENT CIVIL CODE § 1189 A nqtary public or other officer completing this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthTulnems, accuracy, 6rvalidity ofthat document.
County of Los '$geles
before
personally appeared
before me, Monica Blaisdell, Notary Public
Here Insert Name and Title of the Officer
Philip E. Vega
Nam5Js) of Signs@)
who proved to me on the basis of satisfactory evidence to be the persor@l whose named) mi/are subscribed to the within instrument and acknowledged tO me that heha4H/' executed the same in hisaeX/tkm authorized capacity and that by his/Ja signature@) on the ins%r.ument the perso$), or the entity upon behalf of wt7ich the person.(J acted, executed the instrument. , ' - I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing aparagraph is true and correct.
WITNESS my hand and 6fflcial seal.
Signature
Signature of Notary Public
n
130
CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT
A Notary Public or other officer completing t's certificate veffies only the identity ofdie individual who signed the document to which this certificate is attached, and not the tnithfiilness, accumcy, or validity of diat document.
State of California
County of Los Angeles
who proved to me on the basis of satisfactory evid 5 the pemon(s) whose names) is/are subscribed to die within inshwient and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instent the pemon(s), or the entity upon behalf of which the pemon(s) acted, executed the instnunent.
I certify under PENALTY OF PERJURY under the laws of State of Califomia that the foregoing paragraph is tnue and correct.
vvrv ivi. # '. !84926 2or
Q'R) o2 ¥p/ LOS Angeles COunl7 J
j W My Comm. Expires May 9, 2023 f
Notary Public California " WITNESS my
SIGNA
PLACE NOTARY SEAL ABOVE
Though the information below is not required by law, it may prove and could prevent fraudulent removal and reattachment of this and official
persons relying the
to anodier
DTietslec'orptyp'Oneooffdao'caumcheedntd:Ocum'eCr8
Document Date: Number of Pages:
Signer(s) Other than Named Above:
t9,,
131
executed in 2 original
counterparts
BOND NUMBER: 4532016
HOLLYDALE COMMUNITY PARK IMPROVEMENT PROJECT,
CITY PROJECT N0. 607-PRK
100% PAYMENT BOND
WHEREAS, the City of South Gate, South Gate, California ("City" herein), has awarded to NR Development, Inc., ("Contractor" lierein) a Contract for the work described as follows:
THE CONSTRUCTION OF HOLLYDALE COMMUNITY PARK IMPROVEMENT PROJECT, CITY PROJECT NO. 607-PRK
WHEREAS, said Coiitractor is required to furnish a bond in connection witl'i said Contract, to secure the payment or claims of laborers, mechanics, material suppliers and otlier persons, as provided by law;
NOW, THEREFORE, we, the undersigned Contractor and Surety, are held firmly bound unto the City in the sutn of Four Million"($ " ) for which payment well and truly to be made we bind ourselves, our heirs, executors and administrators, successors and assigns, jointly and severally, firmly by these presents.
THE CONDITION OF THIS OBLIGATION IS SUCH THAT, if said Contractor, its heirs, executors, administrators, successors, assigns, or subcontractors shall fail to pay any of the persons named in Civil Code Section 9100(a), or amounts due under the Unemployment Insurance Code with respect to work or labor performed under the Contract, or any ai'nounts required to be deducted, withlield, and paid over to the Employment Development Departt'nent from the wages of employees of the Contractor and its subcontractors pursuant to Section 13020 of the Unemployment Insurance Code, with respect to such work and labor, tben the Surety herein will pay for tlie same in an amount not exceeding the sum specified in this bond, otherwise the above obligation shall be void. !f suit is brought upon this bond, the said Surety will pay a reasonable attorney's fee to the plaintiff(s) and the City in an ainount to be fixed by the court.
Tliis bond shall inure to the benefit of any of the persons named in Civil Code Section 9100(a) as to give a right of action to such persons or their assigns in any suit brouglit upon this bond.
Said Surety, for value received, hereby stipulates and agrees that no change, extension of time, alteration or modificatioii of the Contract Docui'nents or the work to be performed thereunder shall in any way affect its obligations on this bond, and it does hereby waive notice of sucli change, extension of time, alteration or modification of tlie Contract Documents or of work to be performed thereunder.
IN WITNESS WHEREOF, this instrciment has been duly executed by the above-named Contractor and Surety on SEPTEMBER 29, 2022.
* Eight Hundred Nine-Nine Thousand Eight Hundred Sixteen and 24/100 " $4,899,816.24
132
Note: A(( signatures tnust be acknowledged before a notary pciblic. Attach appropriate acknowledgment.
CONTRACTOR:
NR DEVELOPMENT , INC.
Title: \gicc Pit,i'iJlu&
NR DEVELOPMENT, INC.
12731 LOS NIETOS RD.
SANTA FE SPRINGS, CA 90670
(Type address of Contractor)
GREAT AMERICAN
INSURANCE COMPANY
(Type name of Surety)
750 THE CITY DRIVE, SUITE 470,
ORANGE, CA 92868
(Type ad f Surety)
B)/:
(Signature
ATTORN -l
PHILIP E. VEGA
officer)
(Title of officer)
APPROVED AS TO FORM:
B7:
Raul F. Salinas, City Attorney
20 133
134
GREAT AMERICAN INSURANCE COMPANY@
Admlnlstrative Officei 301 E 4TH STREET ' CINC:INNATI, OHIO 45202 ' 513-38')-5000 ' FAX 5t3-723-2740 Tlie itumkr or persoiis autliorizcd Liy
tliispoiverofnttorneyisnolniorelliiin FOUR
NO,0 20974
POIVER OFATTORNEI"
KNO11"ALLMENBYTHESEPRESENTS: llmtllieOREATAMERICANTNSURANCECOMPANY,acorpomlionorgaiiizedandexistingunder and b)i virlua or llie laws orlhe State orOliio, does lieraby nominate, coiis(iiute and appoint the person ot persons naincd beloig each individually Irinorc tlian one is nnmed, its true aiid lawrul nttoniey-in-(hct, for it and tn i(s iiaiiie, place aiid stead to execule on be)ialrorllia snid Company, as surely; aiiy and fill bonds, undcrtakiiigs aim conlmcts of surelysliip, or oflier ii'rillen obligatioiis in llic tinbire lliereof, provided that lhe liabilily of the said Conipaity on aiiy sucli bond, tiriderlakiitg or conlrad or surelysliipexecu(ed under this autbority slmll not exceed tlte limit stated below.
PHILIP E. VEGA
KEVIN VEGA
BRITTON CHRISTIANSEN
MYRNA F. SMITH
Niiine Address LiinilofPower
ALLOF AIL
COVINA,CALIFORNIA 3100,000,000
niis Poivcr orAlloniey revokes all 1irevious powers issued on belialrortlie attomay(s)-in-ract named above.
INWITNESSWH[iREOFllieGREAT AMERlCANINSURANCECOMPANYliascausedtliasepresentstobasiguednndn(tmledbyilsappropriiitc onlccrsniidilscoipornlesanlheretinlonftlxedthis 29TH dnyor NOVEMBER , 2017 Altesl (iREATAMI:RICANiNSllRANCECOMPANY
//-
V-.-,SV.4V
STATE OF OHIO, COtTNTY OF HAMILTON - SS: OAVIDO. mchts(azz-an-z<os) Oii iliis 29TH diiy or NOVEMBER 2017 , barore ine persorially appeared DAVtD C. KlarCHlN, to ine kllO%'il, being dtily SwOril, depoSes ud StiyS llial 11(! rOSides ill Ciltcilutnli, Oliioi llia;lie is a DilliSiOl1til SelliOr Vice President Of'llte BOlld DiViSiOl1 0rOreflt AmcriciinliistiranceCompany,tlieCoinpnnydescribadinaiidivliicliexcciiledilieaboveiiistniment;lhat)ieknowslliesealorllicsaidConi1ian)i;tliat uicscnl affixed €O tlle Stiid instruiuent iS all(:II COrporate Seal: litai It was !iO nfllXed b} RlllhOrily orliis office tuider tile B7-lal%'l afraid Compaity, and tltat be sinned liis naine Ilierelo b)i like autliorily.
8usanA.Kohmt
NoJPm8mdOtb
niis Power orAlloniey is granted by nulliorily olllic rollou'litg rasolu(ions adopted by Ilie Board orD'ireclors orOreatAmericiiu Insuraiico Company by unaiiiinous written coiisenl dated June 9, 200fl.
RES(XVED: ThntlhtDh4stomlPrestdent,IIiesesieralDisiisionnlSenlor?AcePresidems,Dh4slontilVlcePresldenUondDivisoiralAssistarilVict Presldellls, Or tilly Olle dlheTl1, be mld Ilereby 18 al4th01'it0dJUm tfllle In 141118, m appoint 0118 0la 1110te IlllOrneys-In-FaCl /O execllfe Oil behagO/ €110 Cmlpan)', OS Slllvit)! w)lnlld (l// bolide, InldermkillgS and CO?TtmCls (! Slwetyslllp, Or Otllgr ll'rltlen ObllgaltOilS itllhe mtlwe thereof; €0 pmSCWbe ihetrreSpeCtivethllles mad Ihe respecljve Imrlts ofthelr mrhoHty; and go revoke any srtcii appotnrnrenl (l/ m)i thne.
RESOl.r/EDFURTHER: TlialllieCornpnipistttlmidlliesfgnnlureoJanyo/llieapresaidofficersmrdai5iSgcremryorAssistcmlSeeetar)41he COlllpan)' Illay be affixed b)'ficsilllile /O alp'pOll'dr r:J allOrlwy Or CurtifiCal* Of ellll0r gillOnpr 1210 e.l*CllllOn O/ mt)' bOlld, ll?1derlnkillg. COfllraCl 07 Sllre0islltp, Or allleF ll'rll(ell OblrgallOn /n //Ig llatllre 1lidreOj SllChslytattlrt tilld Seat Illhat SO lmd Wng hmbyadOpled by tile COl?tpany as the OrlglLTalSlgllalllre of 314011 4cat and //l! vtzirmlsetil ofilie COI/U)(711)! to be mlidand bhrdhig rrpon tlw CO/II/I(11!)I si'itlr Ilie saw Jorce andejfecl as lhougJr maiurallyr,ffized.
CERTIF lCA'rlON
1, STEPI IEN C. BERAHA, Assis(an( Secrelnry orGreatAmericnn liisurance Coiupany, do liereby certify tlinl the roragoing PorverorAtiomey and ilie Resolutions orilte Board orDirectors orJunc 9, 2008 lum' not been revoked aiid are now in full rorce and effect.
Signed rind sealed lliis 29th day or SEPTEMBER
A itj.umif svcrvrary
8t02W (Da/l!i)
22-
135
Pal IPQml!A 4€ 1, runrosc ACKNOwu:DOMINT
A notary public or other officer 6ompleting this certificate verifies only the identity of the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
County of Los Angeles
n 1 , beforeme". Monica,Biaisdell,,NotaryPublic
Here insert Name and Title oi
personally appeared P'i"P B- Ve
- Narn%s) of Sigr3e5j[al a
Here insert Name an;d Title of the Officer
who proved to me on the basis of satisfactory evidence to be the persor@ whose nameJ) Ware subscribed to the within instrument and acknowledged to me that heMXkU executed the same in hiatkm authorized capapityQR and that by his/ka signatur4) on the instrumentthe person%),or the entity upon behalf of which the person(s5 acted, executed the instrument. -a - I certify under PENALTY OF PERJURY under the laws
of the State of California that the foregoing paragraph is true and correct.
fflff94!m NOTARYPUBLIC-CALIFORNIA H
i 2014f
WITNESS my hand and official seal.
Signature
Signature of Notary Public
136
CALIFORNIA ALL-PURPOSE ACKNOWLEDGEMENT
A Notary Public or other officer completing this certificate vees only tile identity of die individual who signed the document to which diis certificate is attached, mid not the truthfiilness, accuracy, or validity of that document.
State of Califomia
County of Los Angeles
who proved to me on the basis of satisfactory eviden'z to be the person(s) whose name(s) is/are subscribed to the within instent and acknowledged to me that he/she/they executed the same in his/her/their authorized capacity(ies), and that by his/her/their signature(s) on the instniment the person(s), or the entity upon behalf of which the person(s) acted, executed the instnunent.
I certify under PENALTY OF PERJURY under the laws of State of Califomia that the foregoing paragraph is tnie and comd.
, aa4i48;ffna"rijryAh6ti l
:, '"'!-t %'tL;OrsyAPnfgabel'ilcesC'6ooa'ullfn'oly'rnOIa o=z WITNESS my
PLACE NOTARY SEAL ABOVE
SIGNATURE
Though the information below is not required by law, it may prove and could prevent fimudulent removal and reattachment of this and official
persons
document.
T"ietslec"orptyphone ooff daffocaumcheedntd: omen' ,A
Document Date:
Signers) Other than Named Above:
Number of Pages:
137
NON-COLLUSION AFFIDAVIT TO BE EXECUTED BY
EACH AWARDEE OF A PRINCIPAL CONTRACT
ST ATE OF CALIFORNIA
COUNTY OF Los Angeles
DanielleBogdanovich being first duly sworn, deposes and says that he is partner, president, etc.) Vice President the party making the foregoing bid, that such bid is not made in the interest of or behalf of any undisclosed person, partnership, company, association, organization or corporation, that such bid is genuine and not collusive or sham, that said bidder has not directly or indirectly induced or solicited any other bidder to put in a false or sham bid, and has not directly or indirectly colluded, conspired, connived or agreed with any bidder or anyone else to put in a sham bid, or that anyone shall refrain from bidding, that said bidder has not in any manner, directly or indirectly, sought by agreements, communication or conference with anyone to fix the bid price of said bidder or of any other bidder, or to fix the overhead, profit or cost element of such bid price, or of that of any other bidder, or to secure any advantage against the public body awarding the Contract or anyone interested in the proposed Contract; that all statements contained in such bid are true and, further, that said bidder has not, directly or indirectly, submitted his bid price, or any breakdown thereof, or the contents thereof, or divulged information or data relative thereto, or paid and will not pay any fee in connection therewith to any corporation, partnership, company, association, organization, bid depository or to any member or agent thereof, or to any other individual, except to such person or persons as have a partnership or other financial interest with said bidder in their general business.
S"ed ':Enoi'sc'y
Vice President
Title
Subscribed and swom to before me this day of , 2022.
Notary Public
(Attach Notary Certificate)
2G
138
' JURAT
A notary public or other officer completing this certificate verifies only the identity of ' the individual who signed the document to which this certificate is attached, and not the truthfulness, accuracy, or validity of that document.
State of California
Countyof ((,,% hrwirsss
J-
Subscribedandswornto(oraffirmed)b_eforemeonthis' dayof % , 2by3(An-seklJ %gxezrrsi;r(- a ,
" - ' 0
proved to me on the basis of satisfactory evidence to be the person(s) who appeared me.
Jm "AL"EJA"N[)'RA'FERNAN6Ei [
- COMM. #2284926 2
J Notary Public - Californla o"
tK z!iyqlmosmA.nE'xeppleess'Moauyn91y,20g'Jr.%, // (Seal) * *
INSTRUCTIONS
The warding of all Jumts completed in Calflomia afterJanuary 1, 2015 must be in the form as set forfh within this Jurat. There are no exceptions. If a Jural to be compleW does nor followthis fom, the notarymust corred the verbiage by us/ng a juratstamp containing fhe carred warding or affaching a separate jural frim such as this one dh does contain The pmper wordrng. In addffion, lhe notary must require an oatfi or affimation fmm the DESCRIPTION OF THE ATTACHED DOCUMENT document signer regarding the truUifulness of the wntents of the dxument. The document must be signed AFTER the oah or afflmalron. If the document was pteviously \Hs,z C'r'=((( ,,_ '4!;'! signea,amusibere-signeriin*ontorhenotarypubiicriuhngthe3uratpmcess. (T ie or desmption ofattached document)
* State and county information must be the state and county where the rltihiimam einnar/cl narenriallv anriaarod hafiira +ha nn+ax ni ihlir yyyy1 I 19 Ill g Id I 19 I Ig/ IJ9 I gill I a Ill a p (g a I g lj &19 li-il & All g 11111 IG} I J p u ull5- "ordesc'p"onofabch"d"umenf"nb"ued' * Date of notarization must be the date the signer(s) personally appeared which must also be the same date the jurat process is completed.
Num5er Of P ages - DOcumen' Da'e - ii Print the name(s) of the document signer(s) who personally appear at the time of notarization.
* Sianature of the notarv oublic must match the sianature on file mth the Addffional information office of the county clerk.
* The notary seal impression must be clear and photographically reproducible. Impression must not cover text or lines. If seal impression smudges, re-seal if a sufficient area permits, otherwise complete a different jurat form.
A. AddRional information Is not required but could help to ensure this jurat is not misused or attached to a dffferent document.
-%. Indicate tRle or type of attached document, number of pages and date.
* Securely attach this document to the signed document with a staple. 2015 Version www.NotaryClasses.com 800-873-9865
2(J
139
Addendum No. 1 to Contract No:
ADDENDUM N0. 1
TO AGREEMENT FOR CONSTRUCTION AT
HOLLYDALE COMMUNTIY PARK
CITY PROJECT NO. 607-PRK
THIS ADDENDUM N0. 1 (".4 rlrlnnrlnvx"l is hereby made a part of the above-referenced agreement ("Contract") between the City of South Gate ("City") and NR Development, Inc. ("Contractor"). This Addendum constitutes one of the Contract Documents identified in Article III of the Contract. All capitalized tenns used in this Addendum shall have the same meanings ascribed to them in the Contract, unless othetwise defined herein. The agreements set forth in this Addendum are intended to and shall have the same force and effect as if set forth at length in the Contract.
The City and Contractor hereby agree that the prices specified in the Contract Documents for the following Bid Items will fully compensate Contractor for performance of the work specified in those bid items, as clarified in paragraph nos. 1 through 6 below:
1. Bid Item No. 3: "Demolition and Site Clearing" includes all necessary demolition in conflict with site improvennents and per the Project plans and specifications. No additional compensation will be given for demolition items within the captured dashed line on the dennolition plan. No additional compensation will be made for any work related to this bid item.
2. Bid Item No. 4: "Excavation including Export" includes the excavation, export, and disposal of the asphalt concrete pavement in the stnuctural section on the street and all asphalt concrete that is to be removed. This also includes the asphalt concrete pavement that is inside the park area that was previously used as patch work. No additional compensation will be made for any work related to this bid item.
3. Bid Itenn No. 28: "Electricar' means all electrical and lighting work for the Project.
Including but not limited to the following: (a) all electrical work shown on the Civil, Architectural, Stnuctural, and Mechanical plans, for the entire Project; (b) site lighting, building lighting, and all other lighting work on the Project; and (c) any and all other electrical work as described in the Project specifications. Work under this bid item shall include performing all work related to the electrical work including but limited to furnishing all labor, equipment, tools, materials, and services to complete the electrical work per the Contract Documents. This also includes all work to comply with all provisions of Title 24 requirements as described in the Contract Documents.
No additional compensation will be made for any work related to this bid item.
4. Bid item No. 48: This bid had a discrepancy. "Double Swing Entry Gates-Includes Decorative Aluminum Cut Panels", will be paid for as a unit cost of $20,046 per set. A total of 3 sets are required and therefore, the total amount to be paid is $60,138, as indicated on the bid schedule. Each setwill not be paid at the unit cost of $60,138 as indicated in the bid. No additional compensation will be made for any work related to this bid item. 1 5266849.1- L235.53
'7?
140
Addendum No. I to Contract No:
6. Bid Items 28 - 77 and Bid Item Al shall include furnishing all labor, equipment, tools, materials and seyices necessary to install and complete each bid item per the Contract Documents.
PaymentforeachitemshallbepertheStandardSpecificationsforPublicWorksConstnuction. No additional compensation will be made for any work related to these bid items.
6. All Lump Sum items in any bid item (whether listed above or not) shall be paid either per an approved Schedule of Values orperthe Standard Specifications forPublic Works Construction.
No additional compensation will be made for any work related to these bid items.
To the extent that any terms or provisions ofthis Addendum are inconsistent with any of the tems or provisions of those in any of the other Contract Documents, the terms and provisions of this Addendum shall prevail and control for all purposes.
Except as specifically modified or supplemented by this Addendum, all provisions of the Contract Documents shall remain in full force and effect.
G4[ial,!5
City of South Gate
"Contractor"
NR Development, Inc.,
a Califomia corporation
BY:
Al Rios, Mayor
By: DW ?-
ATTEST: Name: [)ahi(ila. (3oq,/!ahovic.l
B7:
Title: S)icc ';7ve,;ii*
[first signature must be that of the Chairman
of the Board, President, or Vice President]
Yodit Glaze, City Clerk
(SEAL)
B7:
APPROVED AS TO FORM:
Nmne:
Title:
BY:
Raul F. Salinas, City Attorney
[second signature must be that of the
Secretary, Assistant Secretary, Chief
Financial Officer or Assistant Treasurer]
2 5266849.1-L235.53
2'6
141
12307 Woodruff Avenue, Downey, CA. 90241
PHONE: (562) 607-1208: Fax: (562) 746-0346
RESOLUTION OF BOARD OF DIRECTORS
DATED October 13, 2022
Whereas, at a duly executed meeting of the Board of Directors of NR Development, Inc. existing under the laws of the State of California, did adopt the following as amendments to the previous discussions held on August 3, 2022:
IT WAS RESOLVED THAT: Danielle Bogdanovich shall be duly authorized to endorse checks, drafts, or other evidences of indebtedness made payable to the corporation, but only for the purpose of deposit, and all checks, drafts, and other instents obligating the corporation to pay money, including instnuments payable to officers or other persons authorized to sign them, shall be signed on the corporation's behalf by the president or the chief financial officer.
Executing Corporate Contracts, consttuction bids, request for proposals, and all other pertinent documents as it pertains to the corporation. Except as otherwise provided in the mticles or in these bylaws, the board of directors by this resolution authorizes Danielle Bogdanovich to enter into any contract or to execute any instent in the name of and on behalf of the corporation.
This authority may be general or it may be confined to one or more specific matters. No officer, agent, employee, or other person putporting to act on behalf of the corporation shall have any power or authority to bind the corporation in any way, to pledge the corporation's credit, or to render the corporation liable for any purpose or in any amount, unless that person was acting with authority duly granted by the board of directors as provided in the bylaw s, or unless an unauthorized act was later ratified by the corporation.
Construction of Hollydale Community Park City Project No. 607-PRK. The board of directors by this resolution authorizes Danielle Bogdanovich to enter into any contract or to execute any instrument in the name of and on behalf of the corporation for the above-mentioned entity.
The directors have authorized thg ve lution dated this 13 day of October, 2022 in the Page I of 1
142
City of South Gate, Public Works Department
Contract Change Order
atyof
South
(,ate
httachment C
RECEIVED
Ju:4 21 2023
aTY(VfflHaATE
85CES
DWA!5217
Date: 6/12/2023 Change Order No. 02 Account No. 311-790-61-9220 Contractor: NR Development Inc. Contract No. 2022-84-CC Confracf Da!e: 1 1/27/2022 Account Code
Plan Reference : Hollydale Coomunity Park, City Project No. 607-PRK Change Order Amount : $80,426.74 Extension of Contract: Time Differred Reason for Change: Changes to plans to properly complete the building and site design.
Description of Change: Install the followings: Privacy Screen; COR 024, Structural Framing; COR 022, Chain Link Fence Re-Installation; COR 20,Community Building Fire Sprinkler (Credit); COR 018, Building Amenities; COR 017R1, PVC vs. EMT pipes (Credit); COR 015, Cladded Columns; COR 011, Palm Tree Removals; COR 009, Colored Concrete; COR 008, Light Standard Adjustment; COR 007, Construction North Property Wall; COR 006R1 Note: See attached for Change Order Details.
Original Contract Amount
Total of previous authorized Change Orders
New Change Order Amount
New Contract Amount
$ 4,899,816.00
55,365.12
80,426.74
5,035,607.86
Assistant'City of Public Works Construction Manager Date:
Arturo Cervantes, P.E.
City Manage; Chrls Jeffers
Original - Project File
(,(,: - Contractor
- Department
Date
143
CITY OF SOUTH G ATE
PUBLjC WON)CS DEPARTMENT
CONTRACT/Pa CHANGE ORDER
Pg ' l of
CHANGE ORDER #:
PROJECT TITLE:
CONTRACT )ti
CONTRACTOR:
Hollydale Coinmunity Park
2022-84-CC
NR Developinenl Inc.
CITY PROJECT #: 607-PRK
PtJRCHASE ORDER #: 0007262
CHANC,E RF.QUESTED BYi Elias Saikaly
DATE OF REPORT: June 12-2023
Cost
Calendar
Days
Original Contract/Pa Amount: $ 4,899,816.00
Prev'ious Change Orders Amoum: $ 55,365.12
This Cliange Order Ainount: $ 80,426.74
Total Increase to Conimcl (all change orders) to Date: $ 135.791.86 Rei ised Total Conlract Amount: S 5,035,607.)16
t'eicen(age of Total {ncrease (or decrease) to Contract Arnounk to Dale: 2.77% DESCRIPTION OF CHANGE ORDER WORK TO BE PERFORMED, ESTIMATE OF QUANTITIES, AND PRICES TO BE PAm:
Cbangeiff'BidiffimQffiafftittes _ii ' "-
Item # Detiiiled description Conlract
Quantity
Previous
Change
Order
Quantity
This Change
Order
Quantity
Total
Adjusted
Contract
Quantity
Unit Unit Cost Change Order
Cost
Time
Extension
ll'orking
Days
I
lnxtall tbe fouowings: Pr=ey Screen: COR 024, Sti'uCtural Friiming; COR 024 Chain Link Fence Re-Installiition; COR 20, Community Building Fire Sprinkler (Credit); COR Ol!1, Building Amenities; COR 017Rl, PVC vs. E&iT pipes (Credit); COR 015, Cladded Colunuis; COR all, Palm Tree Removals; COR 009, Colored Concrete; COR 008, Light Standard Adjushnenti COR 007i Construction Nortli Property Wiill; COR 006Rl
o o 1.00 1.00 l LS $80,426.74 TBD
o o _IOO _IOO I
3 o o _I.OO _lOO I
Totiil Cost: $80,426.74
THE TOTAL AMOUNT OF THIS CHANGE ORDER IS: $80,426.7 4 Approval Recoirunended by:
Elias Saikaly, P.E. Project Manager
,Approved by:
Arhiro Cervantes, Assistiuit City
,Approved by:
Kristophei Ryan; Director of Administrattve
o---Sz}!vz3
Date Gp(zy[z>
D...(,t- tr- ti
!RECEIVPI-
JU 2 i 7n"il
144
Hollydale Community Park
Approved CORs
City of South Gate
Approved CORs
COR 024
COR 022
COR 020
COR 018
COR 017R1'
COR 015
COR 011
COR 009
COR 008
COR 007
COR 006R1
9,532.81
5,265.21
3,915,11
(12,789.00)
34,448,08
(327.15)
4,704.23
3,895.03
2,984.60
6,020.00
22,777.82
80,426,74Total
145
City of South Gate, Public Works Department
Contract Change Order
S;u'th
(,ate
Date: 2103/2023 Change Omer No 01
Contractor NR Development Inc.
AccounlNo 311-790-fil-922(1
Comracr No 2022-!14-CC
Contract Date 1 U2712022
Accounl Code
Plan Refarence : Hollydale Coiimunlty Park, City Project No. 607-PRK Change Oktler Amount. S55,365 Extension ol Contract: No Additlonal Days Reasor. tor Change Replace about s,+oa SF d Decomposed Granlie wtth Rubber SurfaclnH por AddRlvo Alternata BidAt ln Bid S+tihedule. Fiaymem for tha Rubber Sufaclng shal} be per actual square Footage neasuted In lhe field at theunit cost as shown on tha Bid Schedula.
Calez.: 6,4(18 SF of Rubber Surfaaing @jl8.00 par SF = S115A49Lass 6,408 SF or DG @ S9.36 per SF e 559,97a.[l8 Net Pay for thls Chance Onlar: 34 1 !i,34B - !+59,978.8a = *55,3(i5.12 Detl;nplton Of Change COnStrll(:t pOurad in placa EPDM Rubber Sur{acing 0n !l 4a' Cancrete babe uS ShOWnon the plans Final Quanllties shalf be per finai field moasureman(.
Original Ccnlracl Amaunl $ 4,fl9El,B16.0€1
TOtai (% praVlOlJ5 aulhoi'aed Change Oraers s
NeW Changa Oide( Amount
!iS,38Ei.l2
New Contract Amount s 4,955,tBl.12
The Chnngqs dastrlhad nhove ara haraby authorized.
2p'l2, 'Co.",'J"l::;Date:
Date
Onginal - Pmlact Ftla
CC' - Conlraclar
- Daparlmenl
146
CITY OF SOUTH GATE
PUBLIC WORKS DEPARTMENT
CONTRACT/PO CHANGE ORDER
Pglof
CHAiNGE ORDER #:
PROJECT TITLE:
CONTRACT #:
CONTRACTOR:
Hollydale Coinmunity %Park
2022-84-CC
NR Developineiil Inc.
RECBNVBD
CIT\ PROJECT #;
PURCHASE ORt)ER #:
607-PRK
0007262
Isl,llAal, 0 ThJ 2023 CHANGE REQUESTED BY: EliaS Saikah% DATE OF REPORT: Apnl 27-2023
C.1TY OF SOUTH GATE ....iary bm'i iv 54 ))"T" €1".[i!"' p_y+ p,'l L; ill3 I l(i j L I > n _- - . i .
OF p,!i I!T N4i:)A'4'
Cost
Calendar
Days
Original contract/PO amount: S 4,899,816.00
Previous Change Orders amount: 0.00
This Change Order amount: $ 55,365.12
Total increase to contract (all change orders) to date: $ 55.365.12 Revised total conti'act ainount: $ 4,955,181.12
Percentage of total increase (or decrease) to conti'act axnount to date:
DESCRIPTION OF CHANGE ORDER WORK TO BE PERFORMED, ESTIMATE OF 0UANTITTES, AND PRICES TO BE PAID:
Change in Bid item Qiiantities '
Item # Detailed description Contract
Quantity
Previous
C}iange
Orders
Quantity
THIS
Cliange
Orders
Quantity
Total
Adjusted
Contract
Quantity
Unit Unit Cost Cliange Order
Cost
Time
Extension
Working
Days
Replace about 6,408 SF of Decomposed Granite witli Rubber Surfacing per Additive Alternate Bid Al in Bid Scliedule. Payment for tlie Rubber Surfacing sball be per actual square footage neasured in the field at the unit cost as sliown on the Bid SchReplace about 6,408 SF of Decomposed Granite with Rubber Surfacing per Additive Alternate Bid Al in Bid Schedule. Payment for tlie Rubber Surfacing shall be per actual square footage neasured in the field at the unit cost as sliown on the Bid Scliedule.
o o 1.00 1.00 1 LS $55,365.12 o
2 o o _1.00 _1.00 l
3 o o _l.OO _l.OO l
Total CoSt: $55,365.12
THE TOTAL AMOUNT OF THIS CHANGE ORDER IS: $55.365.12 Elias Saikaly, P.E. Project Manager
Aituro Cervantes, Assistant City f Pub]ic Works
Kiistplier Ryan; Director of Adnunisti'attve Services 147
CtTfi!!ANASER'S OFF!CE Item No. 13
JAM 18 2023
7zitlHy
Cip of South Gate
CITY COUNCIL
AeENDA IBTL'L
For the Regular Meeting of. january 24, 2023
Ori ' a ent: Public Works
DepartmerxtDirector: CityManager: C/
Cery J ersa
SUBJECT: CONTRACT CHANGE ORDER N0. 1 TO CONTRACT N0. 022-84-CC WITH NR DE\ELOPMENT, INC., FOR THE CONSTRUCTION OF HOLLYDALE COMMUNITY PARK, CITY PROJECT NO. 607-PRK
PTJRPOSE: To approve Contract Change Order ("CCO") No. I to Contract No, 022-84-CC for the Hollydale Community Park which is cutrently under constuction. The change order is necessary to supplant construction of decomposed granite with rubber surfacing which was an option provided in the bid documents under Additive Alternate Al.
RECOMMENDED ACTIONS: The City Council will consider:
a. Approving Contract Change Order No. 1 to Contract No. 022-84-CO with NR Development, Inc., to supplant the construction of decomposed granite with rubber surfacing for the perimeter pathway on the Hollydale Counity Park, City Project No, 607-PRK, in a netarnount of $55,365,12;
b. Authorizing the Assistant City Manager/Public Works Director to execute Change Order No, 1;
c, Authorizing the City Manager to approve contract change orders up to a cumulative amourit of $400,00 to avoid delaying construction and payment of invoices iiivolving change otder work; and
d. Authorizing the City Manager to approve pre-payments of constmction progress payments for the constuction contract to meet compliance with astate legislation that reqxiires payments within 30 days,
FISCAJi IMPACT: There is no impact to the General Fund. Contract Change Order No. 1 is in the amount of $55,365 and it will be funded with Rendon Regional Grant Funds. The project budget of $6,043,942 is summarized below.
project Services Prop 68 ' Rendon '
Regional ' Total Budget
Design Phase* :$5,336 a$5,336
Construction Contract $4,153,606 $746,210 $4,899,816
Contract Change Order No, I $55,365 $55,365
Construction Contingencies $400,000 $400,000
I
148
Construction Management and Contingency $508,839 $508,839 Construction Suppoit (Architect) $86,298 $86,298
Other Costs $88,288 $88,288
Total Project Costs $4,158,942 $1,885,000 $6,043,942
* In Fiscal Year 2017/18, a total of $250,000 in General Funds were ttilized to fiind design services, which were notapartofthecurrentbudget. Thefundsspentwereutilizedtofinalizetheplansforconstiuctionbidding.
ANALYSIS: The Hollydale Community Park Project is under construction. Under the current construction contract, the perimeter pathway surface is required to be overlayed with decomposed granite, A review of the project budget has identified that there is sufficient funding to replace the decomposed granite with rubber surfacing, The project's bid documents included rubber stirfacing as an altetnative to decomposed granite, under the Additiye Alternate I in the event funds were available, Given the current funding status, staff is recommending approving CCO No, I in the amount of $55,365, This includes an added amount of $tl5,344 to construct the rubber surfacing improvements and a deductive amount of $59,579 to teduce the decomposed granite bid quantity item from its original bid schedule. It is noted that these amounts were included in the contractor's bid.
BACKGROUNDi The Hollydale Community Parlc Project is budgeted in the Fiscal Year 2022/23 Capital Improyement Program, The improvements include a 1,700 square-foot building, storm water chambers, playground, synthetic turf, sand and water play area, basketball court shade structures, a new irrigation system, decomposed granite, park bench and picic tables, permeable pavers, concrete flat worlc, and othez miscellaneous park amenities. The total project budget is $6,043,942.
On September 27, 2022, the City Council awarded a contract to NR Development, Inc., for the construction of the Hollydale Comtnunity Park in the amount of $4,899,816. The construction is underway and is proceeding per schedule,
Construction on the project is scheduled for completion iri August of 2023.
ATTACHMENTS: A. Contract Change Order No, 1
B, ContractNo. 2022-84-CC
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2 149
Attachment D
Greenbook 2021 33
6-7 TERMINATION OF THE CONTRACT FOR DEFAULT.
6-7.1 General. If, prior to the acceptance of the Work, the Contractor:
a) becomes insolvent, assigns its assets for the benefit of its creditors, is unable to pay its debts as they become due, or is otherwise financially unable to complete the Work, b) abandons the Work by failing to report to the Work site and diligently prosecute the Work to completion,
c) disregards written instructions from the Engineer or materially violates provisions of the Contract Documents,
d) fails to prosecute the Work according to the schedule approved by the Engineer, e) disregards laws or regulations of any public body having jurisdiction, or f) commits contiriuous or repeated violations of regulatory or statutory safety requirements, then the Agency will consider the Contractor in default of the Contract.
Notices, and other written communications regarding default between the Contractor, the Agency, and the Surety shall be transmitted in accordance with 5-2. 6-7.2 Notice to Cure. The Agency will issue a written notice to cure the default to the Contractor and its Surety. The Contractor shall commence satisfactory corrective actions within 5 Working Days after receipt.
6-7.3 Notice of Termination for Default. ff the Contractor fails to commence satisfactory corrective action within 5 Working Days after receipt of the notice to cure, or to diligently continue satisfactory and timely correction of the default thereafter, then the Agency will recommend to the Board that the Contractor be found in default of the Contract and upon such finding by the Board:
a) will terminate the Contractor's right to perform under the Contract by issuing a written notice of termination for default to the Contractor and its Surety, b) may use any materials, equipment, tools or other facilities furnished by the Contractor to secure and maintain the Work site, and
c) may furnish labor, equipment, and materials the Agency deems necessary to secure and maintain the Work site.
The provisions of this subsection shall be in addition to all other legal rights and remedies available to the Agency.
6-7-4 Responsibilities of the Surety. Upon receipt of the written notice of termination for default, the Surety shall immediately assume all rights, obligations and liabilities of the Contractor under the Contract. If the Surety fails to protect and maintain the Work site, the Agency may do so, and may reCOVer all costs incurred. The Surety shall notify the Agency that it is assuming all rights, obligations and liabilities of the Contractor under the Contract and all money that is due, or would become due, to 'he COntractor shall be payable to the Surety as the Work progresses, subject to the terms of the Contract.
Within 15 Working Days of receipt of the written notice of termination for default, the Surety shall ine Submit to the Agency a written plan detailing the course of action it intends to take to remedy the default.
A. gency will review the plan and notify the Surety if the plan is satisfactory. If the Surety fails to a satisfactory plan, or if the Surety fails to maintain progress according to the plan accepted by Ag.ency, the Agency may, upon 48 hours written notice, exclude the Surety from the premises, take of all material and equipment, and complete the Work in any way the Agency deems to be The cost of completing the Work by the Agency shall be charged against the Surety and may r
y
n
150
34 Greenbook 202'l
be deducted from any monies due, or which would become due, the Surety. If the amounts due under the Contract are insufficient for completion, the Surety shall pay to the Agency, within 30 Days after th@ Agency submits an invoice, all costs in excess of the remaining Contract Price. 6-7.5 Payment. The Surety will be paid for completion of the Work in accordance with 7-3 less the value of damages caused to the Agency by acts of the Contractor 6-8 TERMINATION OF THE CONTRACT FOR CONVENIENCE. The Board may terminate the Contract if it becomes impossible or impracticable to proceed, or because of conditions or events beyond the control of the Agency.
The Agency will issue a written notice of termination for convenience in accordance with 5-2. Upon receipt, the Contractor shall immediately cease work, except work the Contractor is directed to complete by the Engineer or required to complete for public safety and convenience. The Contractor shall immediately notify Subcontractors and suppliers to immediately cease their work.
The Contractor will be paid without duplication for:
a) work completed in accordance with the Contract Documents prior to the effective date of termination for convenience;
b) reasonable costs incurred in settlement of temninated contracts with Subcontractors, suppliers and others; and
c) reasonable expenses directly attributable to termination.
The Contractor shall submit a final termination settlement proposal to the Agency no later than 90 days from the effective date of termination, unless extended, in writing, by the Agency upon written request by the Contractor.
If the Contractor fails to submit a proposal, the Agency may determine the amount, if any, due the Contractor as a result of the termination. The Agency will pay the Contractor the amount it determines to be reasonable. If the Contractor disagrees with the amount determined by the Agency as being reasonable, the Contractor shall provide notice to the Agency within 30 Days of receipt of payment. Any amount due shall be as later determined by arbitration, if the Agency and the Contractor agree thereto, or as fixed in a court of law.
6-9 LIQUIDATED DAMAGES. Failure of the Contractor to complete the Work within the time allowed will result in damages being sustained by the Agency. Such damages are, and will continue to be, impracticable and extremely difficult to determine. For each consecutive calendar day in excess of the time specified for completion of the Work, as adjusted in accordance with 6-4, the Contractor shall pay to the Agency, or have withheld from monies due it, the sum of $250, unless otherwise specified in the Special Provisions.
Execution of the Contract shall constitute agreement by the Agency and Contractor that $250 per Day is the minimum value of the costs and actual damage caused by the failure of the Contractor to complete the Work within the allotted time. Such sum is liquidated damages and shall not be constnued as a penalty, and may be deducted from payments due the Contractor if such delay occurs. 151
CITYMANAaER!OFFICE
APR O jt 2024
{l:oshth
Ciffl of South Gate
CITY COUNCIL
Item No. 6
AGENDA BULL
DepartmentDirector:
SUBJECT: AMENDMENT NO. l TO CONTRACT N0. 2023-24-CC WITH GANNETT FLEMING, INC., FOR CONSTRUCTION MANAGEMENT AND INSPECTION
SERVICES FOR THE CONSTRUCTION OF GARFIELD AVENUE COMPLETE STREET IMPROVEMENT PROJECT, CITY PROJECT N0. 564-ST PURPOSE: To approve Amendment No. 1 to Contract No. 2023-24-CC with Gannett Fleming, Inc., ("Garu'iett Flemming") for additional Construction Management and Inspection Services for the Garfield Avenue Complete Street Improvement Project, City Project No. 564-ST ("Project") through construction completion scheduled for April 2024.
RECOMMENDED ACTIONS: The City Council will consider:
a. Approving Amendment No. 1 to Contract No. 2023-24-CC with Gannett Fleming, Inc., to provide additional construction management and inspection services for the construction of the Garfield Avenue Complete Street Improvement Project, City Project No. 564-ST, at a cost not to exceed $144,067; and
1 in a fori'n acceptable to the Cityb. Authorizing the Mayor to execute Amendment No.
Attorney.
FISCAL IMPACT: There is no fiscal impact to the General Fund. The proposed Agreement is in the amount of $144,067 and it will be funded with Road Mitigation Fee Funds budgeted in the Fiscal Year 2023/24 Capital Improvement Program. The revised contract amount is $505,925, inclusive of Contract No. 2023-24-CC and Amendment No. 1. The total project budget is $6,551,700 which is funded withRoadMitigationFee Funds ($1M), MeasureW, ($600,000), TDA Fund ($195,000) Prop C Funds ($1,520,000), Measure M Funds ($700,000) and Measure M Local Match Funds ($337,070), Federal Funds ($1,539,630) and State Funds ($660,000).
ANALYSIS: The construction of the Project is in progress. Under Contract No. 2023-24-CC, Gannett Fleming is providing construction management and inspection services for a 140-day construction schedule. A contract amendment is needed to fund 55 working days of additional costs and services, for a total construction schedule of 195 working days. The schedule extension was warranted due to unforeseen issues that were encountered during construction. This included (a) design changes to grade elevations and curb extension construction, (b) construction delays related to the SCE service request schedule, and (c) obtaining Right of Entry and coordinating the 1 152
work with Union Pacific Railroad at Garfield Avenue and Imperial Highway.
Amendment No. l to Contract No. 2023-24-CC provides $144,067 to cover the additional 55 working days of services. Services needed include administration, construction management, inspection, labor compliance, materials testing and utility coordination through construction completion in April 2024.
BACKGROUND: The Project is budgeted in the FY 2023/24 CIP. Improvements are plaru'ied from Firestone Boulevard to Jefferson Avenue. The improvements include bike lanes on Garfield Avenue from Firestone Boulevard to Harding Avenue, on Gardendale Street from Garfield Avenue to the Los Angeles River, and on Frontage Road Miller Way and Southern Avenue west of Garfield to their respective teiminations. The improvements on Garfield Avenue also include raised landscape medians with a new irrigation system, drought tolerant landscaping, traffic calming measures, sidewalk and ADA improvements, traffic signing and striping, and storm water mitigations. Enhanced pedestrian crosswalks with rapid flashing beacons will be installed at Garfield Avenue just north of Southern Avenue, Garfield Avenue at Roosevelt Avenue and Garfield Avenue at Harding Avenue.
On March 14, 2023, the City Council approved Contract No. 2023-24-CC with Gannett Fleming for construction management and inspection services in the amount of $361,858, which reflected a construction schedule of 140 working days. After construction management services began, additional costs were incurred for related, but out of scope work, that were paid from the original contract amount as summarized below.
* A total of $21,857 for additional work was authorized which included time and material supervision of bulb-out corner construction, relocation of traffic signal conduits, project construction signs and other contractor supervision services. * Construction of the Project was stopped from December 6, 2023, to February 12, 2024.
The construction stoppage was necessary due to delays related to obtaining service from Southern California Edison (SCE) for the new irrigation system controllers, coordination with UPRR for the crossing at Imperial Highway, and issues with the constructability of street bulb-outs. During this time, Gannett Fleming incurred $3,597 in delay costs.
Construction began on May 2023 and is scheduled for completion in April 2024.
ATTACHMENTS: A. Proposed Amendment No. 1 (including Scope of Work) B. Contract No. 2023-24-CC
ES:lc
2 153
Attachment A
Amendment No. l
Contract No. 2023-24-CC
AMENDMENT NO. l TO CONTRACT N0. 2023-24-CC FOR
CONSTRUCTION MANAGEMENT AND INSPECTION SERVICES FOR
THE GARFIELD AVENUE COMPLETE STREET IMPROVEMENT
PROJECT, CITY PROJECT N0. 564-ST BETWEEN THE CITY OF
SOUTH GATE AND GANNETT FLEMING, INC
This Ainendment No. 1 to Contract No. 2023-24-CC for the Construction Management and Inspection Services for the Garfield Avenue Complete Street Improvement Project, City Project No. 564-ST ("Amendment No. 1") is made and entered into on April 9, 2024, by and between the City of South Gate, a municipal corporation ("City"), and Gannett Fleming, Inc. a California corporation ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."
RECIT ALS
WHEREAS, on March 14, 2023, the City Council approved Contract No. 2023-24-CC with Consultant ("Agreement") for the Garfield Avenue Complete Street Improvement Project, City Project No. 564-ST to remain in effect through and including completion of the Scope of Services, in the amount of Three Hundred Sixty-One Thousand Eight Hundred Fifty-Eight Dollars and Thirty-Six Cents ($361,858.36).
WHEREAS, the City and Contractor/Consultant desire to execute Ai'nendment No. 1 extending the term of the Agreement to remain in effect through and including completion of the Scope of Services, in an amount not to exceed One Hundred Forty-Four Thousand Sixty-Six Dollars and Sixty-Four Cents ($144,066.64), for services identified in Exhibit "A" attached hereto, under the terms and conditions of the Agreement, bringing the aggregate total of the Agreement and Amendment No. I to a total sum of Five Hundred Five Thousand Nine Hundred Twenty-Five Dollars ($505,925).
NOW, THEREFOR, the Parties hereby agree as follows:
1. MODIFICATION TO AGREEMENT
1.1 SCOPE OF WORK
City hereby engages Consultant, and Consultant accepts such engagement, to perform the services set forth in the Scope of Services as described in Exhibit "A" attached hereto and made part of this Agreement. The Scope of Services may be mutually amended from time to time by both Parties in writing.
1.2 COMPENSATION. The amount of compensation paid by City to Consultant for the work identified in Exhibit "A" shall not exceed One Hundred and Forty-Four Thousand Sixty-Six Dollars and Sixty-Four Cents ($144,066.64).