Agenda packet, regular meeting — South Gate City Council, May 14, 2024 (part 1 of 2)

SOUTH GATE CITY COUNCIL

REGULAR MEETING AGENDA
Tuesday, May 14, 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
The regular meetings of the City Council are held on the second and fourth Tuesday of each month, 1 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:

Steve Costley, Director of Parks & Recreation
PLEDGE OF ALLEGIANCE:

Arturo Cervantes, Assistant City Manager/Director of Public Works

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. Ordinance Granting a 10-Year Franchise to Tesoro SoCal Pipeline Company, LLC

Following the conclusion of the public hearing, the City Council will consider waiving the reading in full and introducing an
Ordinance
granting the renewal of a ten-year Franchise
Agreement 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 2 Gate. (PW)
Documents:

Item 1 Report 05142024.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, 10,
and
11 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.

2. 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
3 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 2 Report 05142024.pdf

3. Resolution revising and replacing Resolution No 2023-17-CC for CalHome funding

The City Council will consider adopting a
Resolution
to revise and replace Resolution
No. 2023-07-CC, to approve an application for funding and delegating authority to the City Manager and the Housing Manager to execute the Standard Agreement and any amendments thereto from the 2023 Homeownership Super Notice of Funding Availability dated January 6, 2023, and sign and submit fund requests, respectively. (CD) Documents:

Item 3 Report 05142024.pdf

4. Resolution approving a Comprehensive Successor Memorandum of Understanding covering July 1, 2021 through June 30, 2025, with the South Gate Division Management Association

The City Council will consider: (HR)
a. Adopting a
Resolution
approving the comprehensive successor Memorandum of
Understanding between the City and the South Gate Division Management Association for the term of July 1, 2021, through June 30, 2025; and b. Authorizing the Mayor to execute the comprehensive successor Memorandum of Understanding in a form acceptable to the City Attorney.

Documents:

Item 4 Report 05142024.pdf

5. Agreement with Willdan Engineering for the Construction Management and Inspection Services for the Automatic Meter Reading Upgrade Project, Phase 3, City Project No. 649-WTR

The City Council will consider: (PW)
a. Approving an
Agreement
with Willdan Engineering to perform construction
management and inspection services on the Automatic Meter Reading Upgrade, Phase 3, City Project No. 649-WTR, in an amount not-to-exceed $131,716;

4 b. Authorizing the City Manager to approve and execute amendments to the Agreement up to a cumulative amount of $50,000; and
c. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney.

Documents:

Item 5 Report 05142024.pdf

6. Agreement with All City Management Services, Inc. (“ACMS”), for crossing guard services for a
one (1) year term effective July 1, 2024 - June 30, 2025

The City Council will consider: (PD)
a. Approving an
Agreement
with All City Management Services, Inc., for crossing guard services for a one (1) year term effective July 1, 2024 - June 30, 2025; and b. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney.

Documents:

Item 6 Report 05142024.pdf

7. Lease Agreement with Lease Servicing Center, Inc. for two (2) vehicles replacing Detective Bureau vehicles in the Police Department

The City Council will consider: (PD)
a. Approving a 5-year Lease
Agreement
with Lease Servicing Center, Inc., dba NCL
Government Capital ("NCL") for the lease of two (2) 2024 Chevrolet Blazer vehicles to be used as detective vehicles for the Police Department in the amount of $24,735 per year for a total amount of $124,175, including a $500 closing fee; b. Approving lease payments in the amount of $24,735 to be budgeted annually for five (5) years in the Asset Seizure Fund starting in Fiscal Year 2023/2024 and including a $500 closing fee in Fiscal Year 2023/2024; and
c. Authorizing the Mayor to execute the Agreement, and any other documents that may be necessary to acquire the vehicles in a form acceptable to the City Attorney.

Documents:

Item 7 Report 05142024.pdf

8. Lease Agreement with Lease Servicing Center, Inc. for three (3) vehicles replacing Parking Enforcement vehicles in the Police Department

The City Council will consider: (PD)
5 a. Approving a 5-year Lease
Agreement
with Lease Servicing Center, Inc. dba NCL
Government Capital ("NCL") for the lease of three (3) 2024 Ford Maverick vehicles to be used as Parking Enforcement vehicles for the Police Department in the amount of $20,087 per year for a total amount of $100,935, including a $500 closing fee;

b. Approving lease payments in the amount of $20,087 to be budgeted annually for five (5) years in the Asset Seizure Fund starting in Fiscal Year 2023/2024 and including a $500 closing fee in Fiscal Year 2023/2024;
c. Approving a Purchase Order Agreement with Preferred Impressions for the purchase and installation of decals/graphics on the three vehicles in the amount of $1,241; d. Approving a Purchase Order with CDCE, Inc., for the purchase and installation of Mobile Data Computers to outfit the three Parking Enforcement vehicles in the amount of $27,367;
e. Approving a Purchase Order Agreement with Commline Inc., for the purchase and installation of necessary emergency equipment to outfit the three Parking Enforcement vehicles in the amount of $13,793; and
f. Authorizing the Mayor to execute the lease Agreement, and any other documents that may be necessary to acquire the vehicles, in a form acceptable to the City Attorney.

Documents:

Item 8 Report 05142024.pdf

9. Purchase Order Agreement with CARAHSOFT for firewall support and an 18- month subscription renewal

The City Council will consider: (ADMIN SVCS)
a. Approving a firewall support and subscription renewal with CARAHSOFT for an 18- month term in the amount of $94,577.09; and
b. Authorizing the issuance of a Purchase Order to CARAHSOFT for this support and license renewal.

Documents:

Item 9 Report 05142024.pdf

10. Notice of Completion for Residential Resurfacing Project, Phases I - III, City Project No. 662-ST, Citywide
Sidewalk Improvement Project, Phase VIII, City Project
No. 659-ST, and Water Main Replacement, City Project No. 689-WTR

The City Council will consider: (PW)
a. Accepting completion of construction of the, (i) Citywide Residential Resurfacing Project, Phase I, II and III, City Project No. 662-ST, (ii) Citywide Sidewalk Improvement, 6 Phase VIII, City Project No. 659-ST, and (iii) Water Main Replacement, City Project No. 689-WTR, effective May 10, 2024, constructed by Sequel Contractors, Inc.; b. Directing the City Clerk to file a Notice of Completion with the Los Angeles County Registrar Recorder's Office;

c. Approving Contract Change Order No. 4 to Contract No. 2022-121-CC with Sequel Contractors, Inc., which is necessary to adjust the payment on work completed under Contract Change Order Nos. 1, 2 and 3, due to an increase or decrease in constructed quantities, for a net contract reduction of $54,926;
d. Approving Contract Change Order No. 5 to Contract No. 2022-121-CC with Sequel Contractors, Inc., which is necessary to adjust the payment on the original contract amount, due to an increase or decrease in constructed quantities, for a net contract reduction of $169,262; and
e. Authorizing the Assistant City Manager/Director of Public Works to execute Contract Change Order Nos. 4 and 5 to Contract No. 2022-121-CC.

Documents:

Item 10 Report 05142024.pdf

11. Capital Improvement Program (CIP) carryover appropriations from FY 2022-23 to FY 2023-24

The City Council will consider: (ADMIN SVCS)
a. Approving Capital Improvement Program carryover appropriations of $83,548,471 to provide continuing funding for the items described in Attachment A; and b. Authorizing the City Manager to make the necessary budget adjustments to add the carry over appropriations to the FY 2023-24 Adopted Budget.

Documents:

Item 11 Report 05142024.pdf
Reports, Recommendations And Requests

12. Appointment of Cynthia Esquivel to the Parks & Recreation Commission

The City Council will consider accepting the resignation of Jennifer Cypert from the Parks & Recreation Commission and ratifying the nomination by Vice Mayor Maria Davila of Cynthia Esquivel to the Parks & Recreation Commission. (CM) Documents:

Item 12 Report 05142024.pdf

13. Warrant register for May 14, 2024
7 The City Council will consider approving the Warrant Register for May 14, 2024. (ADMIN SVCS)

Total of Checks: $3,250,567.41 Less: Voids $

0.00 Less: Employee Payroll Deductions $

(384,324.67)
Grand Total: $2,866,242.74

Cancellations: 105614
Documents:

Item 13 Report 05142024.pdf
Adjournment
Adjournment in memory of Gary Baker, long-time business owner.

I, Yodit Glaze, City Clerk, certify that a true and correct copy of the foregoing Meeting Agenda was posted on May 9, 2024, at 10:30 a.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
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 8 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]
.
9 Item No. 1CITYMANAGER'S OFFICE
MAY 0 8 202't
g:37.(Un Ciffl of South Gate

CITY COUNCIL
AGENDA E3TLL
Department Head:
"'Fo'5 iumoo
SUBJECT: ORDINANCE GRANTING A FRANCHISE AGREEMENT TO TESORO

SOCAL PIPELINE COMPANY, LLC
PURPOSE: To introduce an Ordinance to grant a franchise renewal to Tesoro SoCal Pipeline Company, LLC., ("Tesoro SoCal") for a ten-year term for two existing oil pipelines known as Pipeline Nos. 034 and 080 ("Pipelines"), which were recently covered under Ordinance No. 2020-01 -CC.

RECOMMENDED ACTIONS: Following the conclusion of the public hearing, the City Council will consider waiving the reading in full and introducing an Ordinance granting the renewal of a ten-year Franchise Agreement 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.

FISCAL IMPACT: If the City Council adopts the Ordinance granting the renewal of the franchise agreement, Tesoro SoCal will pay the City a one-time granting fee and annual fees, as summarized below.

Fees Granting Fee Total
Year l $10,265 $12,943 $23,208
Year 2 to 10 $10,470 *$102,134
Total $112,399 $12,943 $125,342
* Assumes an annual CPI increase of 2%.

There will be an increase in revenue. The annual amount received on average under the previous franchise agreement was $4,000 per year for a grand total of $31,659 including the granting fee.

Negotiations have increased that amount to $10,265 per year plus an annual CPI increase for a total estimated revenue of $125,342 inclusive of a CPI increase and granting fee.

The granting fee is consistent with Title 13 (Franchises) of Division 1 (Oil, Gas, and Water Pipelines), of Chapter 13.10 (Compensation) of Section 13.10.010 (Rates - General), of the 1 10
South Gate Municipal Code. The annual rate is set in compliance with California Public Utilities Code 6231.5 subsection (e)(2), which applies to utility pipelines that are not publicly owned. It authorizes an annual franchise fee in an amount agreed to by the applicant and the municipality, or an annual franchise fee computed by multiplying the sum of one-half of the nominal internal diameter of the pipe, expressed in inches, by the number of lineal feet of the pipe within the public streets, ways, alleys, or other public places within the municipality.

NOTICING PROCEDURES: Before the City Council can grant a franchise agreement, California Public Utility Code Sections 6232 et seq. requires a public hearing. A public hearing notice was duly published in The South Gate Press, a newspaper of general circulation, on April 25, 2024.

ANALYSIS: The City regulates utility companies that have facilities that occupy the public right-of-way through franchise agreements. The City's five-year franchise with Tesoro SoCal for the Pipelines expired on February 26, 2024. Tesoro SoCal is requesting renewal of the franchise for the Pipelines 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 hold a public hearing to introduce an ordinance granting the franchise agreement.

The proposed Franchise Agreement is identical to the current Franchise Agreement with the exception of its effective period, term, and fees. Highlights of the proposed Franchise Agreement include:
* Covers Pipeline Nos. 034 and 080.
* A 10-year term from February 27, 2024 to February 26, 2034. * Terms and conditions which are in accordance with California Public Utilities Code Section 6201 and Ordinance.
* Pipeline maintenance in accordance with all city, county, state, and federal ordinances, statutes, rules, regulations, and other laws.
* Establishing liability insurance, bond, and indemnity requirements * Setting the franchise payment, and the rules and requirements under which the TPC franchise will be required to operate.
* Providing an emergency response plan meeting the requirements of federal and state law.

The plan must be comprehensive and provide a 24-hour notification program and emergency response services including traffic control, street excavation, pipeline repair, and supplies and services as necessary within two (2) hours of notification of any problem. It also requires repairs of public streets, alleys, or parkways within seventy-two (72) hours.

The Pipelines carry gasoline and diesel products, and are the only pipelines owned by Tesoro SoCal within the City. The Pipelines are located within 500 feet of the residential and school zones. The safety standard referenced in the Franchise Agreement requires the operation of the Pipelines in accordance with Government Code Section 51010. Under this code, the State Fire Marshall exercises exclusive safety regulatory and enforcement authority over hazardous liquid 2 11
pipelines and may implement the federal Hazardous Liquid Pipeline Safety Act (49 U.S.C. Sec. 2001 et seq.) and federal pipeline safety regulations, as necessary to obtain annual federal certification. Thus, the Pipelines must be used, operated, repaired, or modified in accordance with the safety regulations set by the California State Fire Marshal, further, and/or Chief of Los Angeles Fire Department in accordance with Title 13 (Franchises), of Division 1 (Oil, Gas and Water Pipelines), of Chapter 13.14 (Special Provisions for Oil Pipelines), of the South Gate Municipal Code. The State Fire Marshal is further required to annually inspect the Pipelines to ensure compliance with laws and regulations. Tesoro SoCal is required to submit certified test results for the pipelines subject to the provision of the Pipeline Safety Act of 1981.

BACKGROUND: Tesoro SoCal currently operates two underground pipelines to transport petroleum products beneath Southern Avenue and Garfield Avenue which have been in place since 1999 under ownership by several different oil and pipeline companies: 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 12,952 foot long, 12-inch diameter pipeline located beneath Garfield Avenue and Miller Way ending at the Arco Vinvale Terminal located at 8601 Garfield Avenue ("Pipeline No. 080"). The Pipelines carry gasoline and diesel products.

The most recent franchise, Ordinance No. 2020-01-CC, was adopted by the City Council on August 26, 2019, and expired on February 26, 2024. Tesoro SoCal has requested that the franchise for the Pipelines be renewed; however, for a ten-year term. South Gate Municipal Code, Section 13.08.010, allows the term of the franchise to extend up to twenty-five years. To better manage pipelines within the City, it is the practice of the City to issue franchises on a ten- year term basis in order to ensure the pipelines are well maintained. The proposed Ordinance will extend the term of the franchise for ten years, cornrnencing retroactively on February 27, 2024, and expiring on February 26, 2034. The introduction of the proposed Ordinance is the second of three actions required by the City Council to renew the franchise. The schedule for issuing the Franchise Agreement is as follows:

Action Description Date
l 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 overrule, deny, or deem insufficient any oral or written protests, and may then grant the franchise. 5/1 4/2024
3 Adopt the Ordinance (franchise) 5/28/2024
Renewal of the Franchise Agreement is recornrnended for the reasons following:
* Granting the Franchise Agreement to Tesoro SoCal will automatically bestow rights upon the City and create obligations that must be performed by Tesoro SoCal for the benefit of the City, pursuant to Article 4 (Public Utilities Code §§ 6291 through 6302) of California's Franchise Act of 1937, including the following:
o The City shall have the right to terminate the franchise and/or sue TPC for any failure to properly perform Tesoro SoCal's obligations under the franchise. 3 12
o Requires Tesoro SoCal to comply with ordinances and policies adopted by the City Council relative to the location and maintenance of the Pipeline and any appurtenances.
o Provides compensation to the City for the cost of any repairs to public property made necessary by Tesoro SoCal's operations under the franchise. o Requires Tesoro SoCal to indemnify and defend the City from and against damages resulting from its operations under the franchise. o Obligates Tesoro SoCal, at its expense, to remove and relocate the Pipeline where necessary due to changes of grade, alignment, or width of public streets. o Obligates Tesoro SoCal to notify the City upon any sale, transfer, assignment or lease of the franchise or any rights granted thereunder o Requires Tesoro SoCal to provide a corporate surety bond, savings and loan certificates or shares which the City can use as liquidated damages should it fail to fulfill the Franchise Agreement requirements.
* As noted above, the Franchise Agreement requires 2020-01-CC to file annual reports with the City confirming the maintenance and operation of the Pipeline is in compliance with federal and state law. Tesoro SoCal has been conducting inspections and testing of the Pipelines using advanced inspection technologies and other best management practices. Evidence available to the City indicates that the Pipelines have been properly maintained by Tesoto SoCal.
o The California Government Code (Section 51010) authorizes the State Fire Marshall 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 performing 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 Tesoro SoCal received a warning letter from Cal Fire on February 9, 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 SoCal is aware and has already begun taking the necessary action to resolve the issue.
o Most recently on March 11, 2024, Tesoro SoCal received a Notice of Violation from 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 with Tesoro SoCal and has received assurances that Tesoro SoCal began taking the necessary action to resolve this violation. 4 13
In compliance with the California Environmental Quality Act ("CEQA"), the Pipelines are determined to be categorically exempt from CEQA pursuant to Section 15301 of the CEQA Guidelines. Section 15301 provides for exemption of the proposed pipeline franchise, because the project consists of the operation of existing facilities, involving negligible or no expansion of an existing use.

ATT ACHMENTS:

KT:lc
Proposed Ordinance
Notice of Public Hearing
Ordinance No. 2020-01-CC
Letter from the Office of State Fire Marshall
Location Map
5 14
Attachment 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 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 HERF,AFTER EXIST, WITHIN THE CITY OF

SOUTH GATE
WHEREAS, Tesoro SoCal Pipeline Company LLC, a Delaware limited liability company ("Tesoro SoCal") 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 (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 Vinvale Terminal located at 8601 Garfield Avenue ("Pipelirxe No. 080"); WHEREAS, the Pipelines have been in place since at least 1999 and have been operated over the years by several different oil and pipeline companies under several franchises granted by the City;
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;
WHEREAS, on May 14, 2013, the City executed a Letter of Consent authorizing the transfer by BP to Tesoro Refining & Marketing Company LLC, a Delaware 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, an affiliate of Tesoro Refining, and Tesoro SoCal has owned and operated (through its affiliate, Marathon Pipe Line LLC, a Delaware limited liability company) 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 AS13772.0860872 4887-9478-1366v2
15 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 OrdinanceNo. 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 franchises within the City of South Gate; WHEREAS, on April 23, 2024, the City Council adopted a Resolution declaring the intention to grant a ten-year term franchise to Tesoro SoCal; WHEREAS, on April 25, 2024, a Notice of Public Hearing was published in the South Gate Press, a newspaper meeting the statutory qualifications for publishing such notices; and WHEREAS, on May 14, 2024, the City Council held a duly noticed Public Hearing to introduce an Ordinance granting a ten-year term francise to Tesoro SoCal.

NOW, THEREFOR, THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA, DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: Definitions. Whenever in this Ordinance the words or phrases hereina:tter in this section defined are used, it is intended that they shall have the respective meanings assigned to them in the following definitions (unless, in the given instance, the context wherein they are used shall 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 uponthe public street, ways, alleys, and places in the City by means of pipes and appurtenances for conducting, transporting, conveying, and carging oil, gas, gasoline, petroleum, 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 13.02 through

13.18, inclusive, of the South Gate Municipal Code. 2 AS13772.0860872 4887-9478-1366v2
16 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 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 Act of 1937, is hereby granted to Grantee, to use a system of Pipelines and Appurtenances 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 Ordinance, and (b) construction of Pipelines and Appurtenances by the Grantee, at the Grantee's expense and at such time or times as directed by the City.

SECTION4: Term. The Franchise shall be for a term of ten (10) years cornrnencing retroactively on February 27, 2024 and expiring on 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 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 I(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 AS13772.0860872 4887-9478-1366v2
17 SECTION 5: Insurance.

A) On or before cornrnencement 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 of Title 13.

C) On or before the effective date of this Ordinance, Grantee shall file and thereafter 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 filed 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 money paid in consideration for the award of Franchise shall be deemed forfeited. In the event that the bond, after 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 after written notice to do so from the City Attorney.

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 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;

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:
4 AS13772.0860872 4887-9478-1366v2
18 Pipe size (internal Base rate per
diameter in inches) lineal foot
0-4 ......................... $0.088
6 ... . . .. 0.132
8 .. .. .. . .. 0.176
10 . .. .. 0.220
12 .. .. . . . 0.264
14 . . . . 0.308
16 .. . .. ... .. . .. 0.352
18 . .. ... . 0.396
20 .. . 0.440
22 .. . . . . . . 0.484
24 . . . .. . . 0.528
26 .. . . . .. 0.572
28 .. . . . 0.616
30 . . . . . . 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:
(a) The applicable base rate shall be multiplied by the Consumer Price Index for the Los Angeles County, as published by the United States Department of Labor, Office of Information for the month of September irnrnediately 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 factor be less than one. (b) 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.

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 annually during the term of the Franchise and subject to adjustment in accordance with paragraph B and D of Section 6, 5 AS13772.0860872 4887-9478-1366v2
19 within three (3) months after the expiration ofthe calendar year. A rate of ten percent (10%) per annum, or fractionthereof beyondthirty (30) days after payment due date and following ten (10) days after receipt by Grantee ofwritten 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 maru'ier 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 a'fter 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 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 declaration of a forfeiture of this 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.

SECTION 8: Additional Conditions. 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 ofthe 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 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 harmless 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 perform each and every provision of this Franchise;
6 AS13772.0860872 4887-9478-1366v2
20 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, 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) Submit a written petition of franchise renewal to the City at least ninety (90) days prior to the expiration date.

SECTION 9: Permits. The Grantee shall obtain an excavation permit, and pay the applicable fee therefore, prior to cornrnencing 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, of Title 13 of the 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 turn"iel or bore so as not to disturb the foundation of such paved or macadamized street. If the same cannot be done, or 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.

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.

SECTION 10: Emergency Equipment.

AS13772.0860872 4887-9478-1366v2
21 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 completed within seventy-two (72) hours unless otherwise authorized by the City 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.

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 after 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, after 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 of the City's approval of excavation permits and/or 8 /J
AS13772.0860872 4887-9478-1366v2
22 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, all 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) IftheGranteeshallfail,neglectorrefusetocomplywithanyoftheprovisionsorconditions of this Franchise, and shall not, withinthirty (30) days after written demand for compliance, begin the work of compliance, or after commencing such 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.

B) 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 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 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 a'Jter obtaining such permit, cornrnence and diligently prosecute to completion the work authorized by the permit.

SECTION 14: 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 coru'iection 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. 9 AS13772.0860872 4887-9478-1366v2
23 SECTION15: EffectiveDate. ThisOrdinanceshalltakeeffectonthethirtyfirst(31sI)dayafter its adoption.
[Remainder of page left blank intentionally.]
10 AS13772.0860872 4887-9478-1366v2
t5' 24
SECTION 16: Posting of Ordinance. The City Clerk shall certi:ty to the adoption of this Ordinance and shall cause the same to be published as required by law.

PASSED, APPROVED and ADOPTED this fh day of 2024.

CITY OF SOUTH GATE:

By:

Gil Hurtado, Mayor
ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

B7:
!"i'aii:city\4rney@
11 AS13772.0860872 4887-9478-1366v2
25 Attachment B
CITY OF SO[TI'H GATE

NOTICE OF PUBLIC HEARING
Sou!gZ %4'ylaC:lerk
APRl8ps
'ILED
NOTICE IS HEREBY GIVEN that the City Council of South Gate, California will conduct a public hearing to introduce an Ordinance granting a ten (10) year franchise to Tesoro SoCal Pipeline Company, LLC, to use, maintain, repair and replace a single pipeline beneath specified public streets, together with related appurtenances, for transmitting and distributing petrolerun products.

Tesoro SoCal Pipeline Company, LLC, and its successors and assigns will, during the life of the franchise, pay to the City the percentage specified in the proposed Ordinance, that the percentage will be paid annualIy from the date of the granting of the franchise, and in the event aich payment is not made the franchise will be forfeited. A copy of the proposed Ordinance can be reviewed in the City Clerk's office during nornnal business hours.

DATE:

TIME:

LOCATION:

Tuesday, May 14, 2024
6:30 p.m,
Council Chambers
South Gate City Hall
8650 California Avenue
South Gate, CA 90280
NOTICE IS HEREBY GIVEN that any and all persons interested in the matter herein above set forth are privileged to attend said hearing and then there testify or present evidence upon any matter relating thereto.

NOTICE IS HEREBY GIVEN by order of the City Clerk of said City and is dated April 18, 2024.

Y laze, City Clerk
Publicatiori date: Thursday, April 25, 2024
Account Number: 100-701-31-6302
26 Attachment C
D
ORDINANCE N0. 2020-01 -CC

CITY OF SOUTH GATE
LO8 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 STREET8, WAYS,

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 accordance with California Public Utility Code Section 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 operated between over the years by several different oil and pipefine companies under several franchises granted by the City of South Gate ('City"); and WHEREAS, on August "l 1, 2009, the City Council adopted Ordinanoe No. 2264 granting an additional five year franchise renewal to BP West Coast Produds, 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 Cl 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
l
/f
27 WHEREAS, the franchise granted by Ordinance No. 2315 expired on February 28, 2019, and Tesoro SoCal wishes to enter into a new franchise with the City of South Gate relative to the Pipelines; and
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- 01-CC, granting a five-year term franchise to Tesoro SoCal, commencing retroadively on February 27, 2019;

NOW, THEREFORE, THE CI'FY COUNCIL OF THE CITY OF SOUTH GATE DOES HEREBY ORDAIN AS FOLLOWS:

SECTION 1: Defimtions. Whenever in this Ordinance the words or phrases hereinafier in this sedion defined are used, it is intended that they shall have the respedive meanings assigned to them in the following definitions (unless, in the given instanoe, the context wherein they are used shall clearly import a different meaning):

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, petroleum, wet gas, hydrocarbon substances, water, waste water, mud and other liquid substances for any and all purposes.

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 13.02 through 13.18, inclusive, of the South Gate Municipal Code. 2 28
F) The phrase "Pipelines and Appurtenances" shall mean one or more pipes and/or pipelines used for conducting, transporting, conveying and carding 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.

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 Act of 1937, is hereby granted to Grantee, to use a system of Pipelines and Appurtenances 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 Ordinance, and (b) construdion of Pipelines and Appurtenances by the Grantee, at the Grantee's expense and at such time or times as directed by the City.

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 Sedion 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 dLle tO the Grant'& iiuiibunipliaiiy vvah tte terms and COndt!TANS Of !he 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 Unied STAES ofAmerica, use will constitutt, eibbCpliiiy. 3 29
SECTION 5: Insurance.

A) On or before buiiiiiiviiyiiit=iil ur 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 certffied 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 thereafter 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 filed 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 money paid 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.

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 I of Title 13 of the South Gate Municipal Code, prior to the adoption of this Ordinance.

B) A base annual fee for times hereaffer specified, in lamul money of the United States, as provided for in the Section 623'l.5 of the California Public Utility Code, which annual fee shall be computed as follows;
4 30
aa

1. The length of pipe expressed in feet located within the franchised area shalf 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
e
8 10
12 14
'is
18 20
22 24
26 28
30 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

0.618
o.eeo
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. 2.

The applicable base rate shall be multiplied by the Consumer Price Index for the Los Angeles County, as published by the United States Department of Labor, Offioe 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 factor be less than one.

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 sedion iii s44iiuainiale proportion as commodity consumer prices then current vary from commodity consumer prices current in Deoember 1988. On this point, the determination by the municipality shall be final and conclusive. 5 31
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 fradion 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 Sedion 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 afier 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 negled, 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 afier 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 folfowing 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 declaration of a fofeiture of this Franchise and of all rights of the Grantee hereunder.

SECTION 7: Plans. \/Vithin 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 Ctty'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 addnional, changed or removed Pipelines and Appurtenanoes as of that day.
6 28 32
SECTION 8: Additional Conditions. The Grantee of this Franchise shall:
0 A) Construct, install, test, and maintain all Pipelines and Appurtenanoes in accordance with and in conformity with all City, County, State and Federal Ordinances, statutes, rules, regulations and other laws (whether now existing or hereafier adopted) applicable to the installation, location, use, maintenance and/or removal of the Pipelines and Appurtenanoes;
B) Pay to the City, on demand, the cost of all repairs to public property made neoessary 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 harmless 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 damageb pivaiiur>tvly 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 ff and when made neoessary by any lamul change of grade, alignment or width of the affeded 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) Submit a written petition of franchise renewal to the City at least ninety (90) days 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 subjed 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 iiilvift,iviit,ts with any street traffic. The issuanoe of any excavation permR 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 acmrdance with Chapter 13.14, Division 5, of Title 13 of the 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 founda!ion Of SuCh paved €1€ inawdaini!.6d street. If the same Cannot be dine, Or 7 33
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.

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 r.ir eiiieiiiyeiiieiiilb wpa51e 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 completed within seventy-two (72) hours unless otherwise authorized by the City 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 afier the effective date of the Franchise.

B) Whenever any Pipeline or Appurtenance breaks or leaks so as to cause the release of oil or produds thereof into the public right-of-way, Grantee, and any other person using or controlling the Pipeline or Appurtenance, shall iiiiiii4,JieiLt=ly 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 wiiiiiiviiwiiioiil ur the work, the Grantee may commence such work; provided, however, that within seventy-two (72) hours thereaffer the Grantee shall make application to the City Engineer for an excavation permit in accordanm wRh 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 t5 34
C) If any portion of any Street is damaged by reason of defects in any of the Pipes and Appurtenances maintained or construded by Grantee, or by reason of any other cause attributable to or arising from the operation of any Pipes and Appurtenances construded 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 after written demand therefore by the City Engineer, or such other period as the City Engineer may authorize when required for theprotection of the public health and safety.

D) If the Grantee, after 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 Remized 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) Grantev zbkiiuwlaJyba Lliat 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 existenoe 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 of the City's approval of excavation permits 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, inor 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 us behalf, all therecords necessary to determine the amount of such franchise fee.

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 afier written demand for oomplianoe, begin the work of compliance, or after commencing such 9 2$ 35
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 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 proposed abandonment or removal may be effedted. 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, commence and diligently prosecute to completion the work authorized by the permit.

SECTION 14: Effective Date. This Ordinance shall take effect on the thirty first (31st) day after its adoption.
[Remainder of page lefi blank intentionally,]
10 27-
36 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.

PASSED, APPROVED and ADOPTED this I0th day of March, 2020.

CITY OF SOUTH GATE:

BY: 'k
M. Bel6n Bernal, Mayor
0 ATTEST:

Carmen Avalos, City
(SEAL)
FORM:

F. Salinas, City Attorney
at
11 2g 37
ORDINANCE CER'nFICATION PAGE
aa

ST ATE OF CALIFORNIA

COUNTY OF LOS ANGELES ) SS

CITY OF SOUTH GATE
I, Camnen Avalos, City Clerk of the City of South Gate, California, 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
ag
Noes: Council Members: None

Absent: Council Members: Davila
Abstain: Council Members: Bernal
Witness my hand and die seal of said City on Mawh 11, 2020.

Carmen Avalos, City Clerk
City of South Gate, California
aa
,;i4 38
Attachment D
DocuSign Envelope ID: 1 i DE816
ST ATE OF CALIFORNIA-NATURAL RESOURCES AGENCY Gavin Newsom. Governor

DEPARTMENT OF FORESTRY AND FIRE PROTECTION

OFFICE OF THE ST ATE 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 or the State Fire Marshal (OSFM) along with Pipeline and Hazardous Materials Safety Administration (PHMSA) completed a Headquarter Control Room 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 of49 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:
(6) Address deficiencies identified through the implementation of paragraphs (e)(l)through (e)(5) ofthis section.
"Tire Department of Forestry and Fire Prolectiori serqies and safegxrmads tlie people and protects tlie proped)r and resources of California. = ,!5039
DocuSign Envelope ID: 1A84F 1DE816
Rich St. Amour
February 9, 2024

Page 2 ends

Where § 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:
(1) ...
(4) Review the alarm management plan required by this paragraph at least once each calendar year, but at inteivals 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 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 carry out the roles and responsibilities defined by the operator. In addition, the training program must include the following elements:
(1) ...
(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, 2€)18.

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. § 195.446(h)(6).
40 DocuSign Envelope ID: 1A84F 1 DE816
Rich St. Amour
February 9, 2024

Page 3 ends

EN 24-007
49 C.F.R. § 195.446 Control Room Management.
(a) ...
(j) Compliance and deviations. An operator must maintain for review during inspection:
(1 ) Records that demonstrate compliance with the requirements of this section. 'I. 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:
(1) ...
(4) A method of recording controller shiff-changes and any hand- over of responsibility between controllers.

MPL failed to provide documents or records or its controller shiff-changes and hand-over of responsibility between controllers from February 6, 2020, to February 12021, for Los Angeles Basin (LAB) assets in accordance with 49 C.F.R. F3 195.446(b)(4), as required by 49 C.F.R. § 195.446(j)(1). MPL, also, provided only partial shift change records from October 2021 to June 2023. MPL claims that their control room 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. § 195.446(j)(1).

2. Where § 195.446(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:
(1) ...
(3) 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.

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. § 195.446(e)(3), as required by 49 C.F.R. § 1 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 23A 41
DocuSign Envelope ID" i 1DE818
Rich St. Amour
February 9, 2024

Page 4 ends

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. § 195.446(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 carry 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 Januaiy 23, 2018.
(A) MPL failed to provide documentation of its 2022 controllers training for LAB in accordance with 49 C.F.R. § 1 95.446(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. § 195.446(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. § 195.446(j)(1 ).

J3 42
DocuSign Envelope ID: 1A84F 1DE816
Rich St. Amour
February 9, 2024

Page 5 ends

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:
(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, 3/12/2020 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. § 195.446(j)(2).

Pursuant to CGC § 51018.6, 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. Affer 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,
W98oF8D3AE98Doo'8'g"byi42E

JAMES HOSLER
Assistant Deputy Director
Chief of Pipeline Safety and CUPA Programs
cc: Huy Nguyen, OSFM, Supervising Pipeline Safety Engineer Doug Allen, OSFM, Supervising Pipeline Safety Engineer Joshua Cleaver, CAL FIRE, Staff Counsel
43 Water Boards
&(bvis Niwam
ffi (it)nllNOll
g;i"":,:'i...T..,..

Los Angeles Regional Water Quality Control Board
March 11, 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 '1 463 4165 72
Certified Mail
Return Receipt Requested
Claim No. 9589 0710 52701463 4170 67
NOTICE OF VIOLATION: FAILURE TO DEVELOP A COMPLETE STORMWATER POLLUTION PREVENTION PLAN - VINV ALE 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 Industrial Activities Order No. 2014-0057-DWQ as amended in 2015 and 2018 (Amended General Permit). Vinvale Marketing Terminal is classified under Standard Industrial Classification (SIC) code 5171- Petroleum Bulk Stations and Terminals. Section X ofthe 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.1.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, IXECUTIVE OFFICER 320 West 4th Street, suite sioo, LO6 Angeles, CA goota l www.waterbosrds.ca.gov/loaangsles 44 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.1. * 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 of the 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 following 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.IO.
* Ensure the Pollutant Source Assessment in the SWPPP includes an assessment identifying pollutants related to Total Maximum Daily Loads (TMDLs) in accordance 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 45
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) perday 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.kimpwaterboards.ca.qov or Pavlova Vitale at (2'l3) 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 46
Attachment E

CITY OF SOUTH GATE
TESORO SOCAL PIPELINE COMPANY, LLC. LINES
TESORO SOCAL PIPELINE #34;
8" Pipeline Located Beneath
Southern Ave. & Garfield Ave. From
East Hynes Terminal in Long Beach, CA.
to Arco V'invale Terminal South Gate, CA.

TESORO SOCAL PIPELINE #80;
12" Pipeline Located Beneath
Garfield Ave. & Miller Way From
East Hynes Terminal in Long Beach, CA.
to Arco Vinvale Terminal South Gate, CA.
37 47
Item No. 2

CITYMANAGER'S OFFICE
MAY 0 8 202't
'j:2,,'7k
Ciffl of South Gate

CITY COUNCIL
AG-ENIDA aI[LL
Departmetit Director:

For the Regular Meeting off May 14, 2024
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 necessary 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 summarized 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 the City to the general contractor during a prolonged suspension of the project pending approval of the PCLUP, the City Council terminated the general contractor's agreement at a Special City Council meeting on February 6, 2023. Such termination provided both immediate and long-term cost savings to the 1 48
City but also created an immediate need for the City to retain an interim contractor to perform certain ongoing maintenance and safety activities; a need which must be met sooner than the time necessary to engage in normal public bidding procedures.

The proposed Resolution declares a continued emergency exists pursuant to the authority granted by South Gate Municipal Code § l.54.470 and California Public Contract Code Fg 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 are 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 terminated.

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 terminated by the City Council effective February 13, 2023, except for maintenance activities. As of February 16, 2023, NR Development Inc., is no longer providing any project services or maintenance activities, with the exception of those required in the settlement agreement.

2. City forces provided maintenance services on the site. The site was secured with perimeter fencing and security contract services.

3. 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 Aanendment No. 6, which provides :[unding for the technical services required to comply with requirements from the LEA.

4. Submitted to the LEA the Summary of Investigations Report, Workplan of Interim Control Measures ("WICM"), Supplemental WICM and Phase II Workplan. Received approval of the WICM and conditional approval of the Phase II Workplan. Submitted a revised WICM as requested by the LEA. Submitted the revised Phase II Workplan on 2 49
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. Coordination with the Trust for Public Land ("TPL") to complete the process to prepare the technical documents necessary to secure a replacement contractor was completed. Selected a recommended 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").

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 complete 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 Charu'iel, construction of the easement road, and boarding up the education and maintenance buildings. The electrical scope of work is anticipated to be complete by end of April 2024

8. Methane gas monitoring began as of June 2023 and was completed in December 2023.

There were 16 probes installed tmoughout the site. One probe detected low traces of methane; however, the amount is below regulatory requirements. The City's consultant submitted a final report on January 16, 2024. On March 26, 2024, the LEA provided comments on the Report of Findings of Phase II Work Plan. The City is able to address the comments and proceed with the development of the Post Closure Land Use Plan (PCLUP). The City is coordinating with TPL and the design consultant to submit the PCLUP in an expeditious manner.

9. The City is coordinating with TPL and the design consultant to revise the plans and specification to procure a construction contract for the remaining scope of work. An amendment to contract services will be needed in an amount to be determined. The City Manager will approve the amendment administratively.

10. A contract was awarded to Executive Management Security Inc., in the amount of $214,995 to continue the security services on the Urban Orchard Project until June 30, 2024.

11. Per the settlement agreement, NR Development, Inc., is in the process of importing 9,300 cubic yards of clean soil and storing it on the UWS property. A contract with W.A. Rasic in the amount of $141,985 for soil maintenance and management is in the process of being administratively approved.

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 storm water run-off from the Los Angeles River and to install a new park to provide riverfront recreational opportunities.
3 50
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 Services, Toxic Substances Control Division concluded that the 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 l) $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 TPL Private Donations $90,000
Total $30,506,161
ATTACHMENT: Proposed Resolution
GD:lc
4 51
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 CAI,IFORNIA, 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 the 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 change 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 contractot; 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 perform the Maintenance Activities with its own forces, and that the immediate need for the performance of the Maintenance Activities does not permit a delay that would result from a competitive solicitation for bids; and
Page I of 3
52 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 Summary of Site Investigation has been completed; the final report has been submitted to the County and comments have been received; and construction plans to procure a new construction contract 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 perform the 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 perform 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 Summary 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 § l.54.470 and California Public Contract Code § 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 the 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 the emergency action to determine, by a four-fi:tth's vote, that there is a

Page 2 of 3 ends

53 need to continue the emergency action.

SECTION 5. The Council shall terminate the emergency action at the earliest possible date that conditions warrant, so that the remainder of the 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 shall 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 14th day of May 2024.

CITY OF SOUTH GATE:

By:

Gil Hurtado, Mayor
ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

By: "'E"'-l!S-qo-,i,:it"--:""a

Page 3 of 3 ends

/7 54
CITYMANAaER'SOFFlCE Item No. 3
MAY D 9 202't
City of South Gate

CITY COUNCIL
AGENIDA IB'J[LL
Departmerit Dire
For the Regular Meeting of: May 14, 2024
0 j i latixrg Department: Community Development
t : ra RobHo ton
SUBJECT: REVISE AND REPLACE RESOLUTION N0. 2023-07-CC WITH A

RESOLUTION APPROVING AN APPLICATION FOR FUNDING AND THE EXECUTION OF A STANDARD AGREEMENT FOR THE 2023 HOMEOWNERSHIP SUPER NOFA AND APPROV AL OF AN AGREEMENT WITH AVANT-GARDE, INC. TO ADMINISTER THE

CALHOME PROGRAM
PURPOSE: PreviouslyadoptedResolutionNo.2023-07-CCneedstoberevisedandreplacedtomeet tlie terins and conditions of a conditional award of CalHome grant funds prior to executing a Standard Agreement and receiving the funding.

RECOMMENDED ACTIONS: The City Council will consider adopting a Resolution to revise and replace Resolution No. 2023-07-CC, to approve an application for funding and delegating authority to the City Manager and the Housing Manager to execute the Standard Agreement and any amendments thereto from the 2023 Homeownership Super Notice of Funding Availability dated Januaiy 6, 2023, and sign and submit fund requests, respectively.

FISCAL IMPACT: There will be no fiscal impact. The City of South Gate is set to receive $5,000,000 from the California Department of Housing and Coininunity Development ("HCD"). The funds will be used to provide loans to low- and very low-income residents for down payment mortgage assistance as well as cover the administrative and activity delivery fees associated with Avant-Garde, Inc., administering tlie CalHome Program. The CalHome Program does not require any matching funds.

ANALYSIS: The conditional award may only be accepted by satisfyiiig HCD's Ten'ns and Conditions of Conditional Award which includes timely delivery of Authorization and Organization Documents including a duly adopted autlioiizing resolution.

To satisfy HCD's Terms and Conditions of Conditional Award, City staff is recoini'nending the City of South Gate adopt the proposed Resolution to revise and replace Resolution No. 2023-07-CC, to meet CalHome's technical requirements. The requested revisions include adding a recital which details the specific statutes related to the CalHome Program and updating language peitaining to the execution autliority relating to the Standard Agreement and its subsequent amendments or modifications. These revisions have no sigi'iificant impact on the content and purpose of ResolutionNo. 2023-07-CC. Adopting the proposed Resolution will satisfy HCD's Teims and Conditions of Conditional Award, allowing for l
55 the City Manager to execute the Standard Agreement and subsequently the coini'nencement of the City's first-time homebuyer moitgage assistance, and authorize the Housing Manager to make Fund requests.

BACKGROUND: On January 6, 2023, HCD announced the release of approximately $135 million in funding for the CalHome Program through the 2023 Homeownership Super Notice of Funding Availability ("NOFA"). This 2023 Homeownership Super NOFA was issued to distribute funds for the CalHome Program wich supports homeownership programs aimed at lower and very low-income households to increase homeownership, encourage neighborhood revitalization and sustainable development, and maximize use of existing homes.

The City of South Gate is working with Azure Community Development ("Azure") and Habitat for Humanity of Gre:ater Los Angeles ("Habitat LA") to build and sell affordable homes to households at or below 80 percent of the Area Median Income ("AMI").

On February 28, 2023, the City subinitted an application in response to the 2023 Homeownership Super NOFA. The applicationrequested $5,000,000 of CalHome funds to providehomeownership opportunities by offering down payment mortgage assistance to first-time homebuyers for the Azure and Habitat LA affordable housing developments. In accordance with the 2023 Homeownership Super NOFA and CalHome Guidelines, financial assistance provided to households at or below 80 percent of the AMI shall be in the form of deferredpayment loans of up to $200,000. These loans are to be repayable upon the sale or transfer of tlie homes, when the home ceases to be owner-occupied, or upon the loan maturity date, whichever comes first.

As part of the application requirements, a resolution needed to be approved by the local jurisdiction's governing body authorizing submission of the application and execution of a Standard Agreement if awarded funds; and a contract needed to be executed with the proposed Administrative Subcontractor.

To satisfy these requirements, on February 14, 2023, the City Council adopted Resolution No. 2023-07- CC.

On November 2, 2023, HCD informed the City of its conditional CalHome Program award in the amorint of $5,000,000 to be rised for First-time Homebuyer Moitgage Assistai'ice.

On February 22, 2024, HCD informed City staff that HCD's attorney identified portions of Resolution No. 2023-07-CC that required revision prior to HCD finalizing and executing a Standard Agreement with the City.

ATT ACHMENTS: A. Proposed Resolution
B. Resolution No. 2023-07-CC
2 56
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH

GATE, CALIFORNIA, APPROVING AN APPLICATION FOR FUNDING

AND THE EXECUTION OF A ST ANDARD AGREEMENT AND ANY AMENDMENTS THERETO FROM THE 2023 HOMEOWNERSHIP
SUPER NOFA DATED JANUARY 6, 2023
WHEREAS, the California Department of Housing and Coinmunity Development (herein after referred to as ("HCD") has issued a Notice of Funding Availability ("NOFA") dated January 6, 2023, for the CalHome Program established by Chapter 84, Statutes of 2000 (SB 1656 Alarcon), and codified in Chapter 6 (coininencing with Section 50650) of Part 2 of Division 31 of the Health and Safety Code (the "statute"). Pursuant to the statute, HCD is authorized to approve 'funding allocations utilizing monies made available by the State Legislature to the CalHome Program, subject to the tenns and conditions of the statute and the CalHome Program Guidelines adopted by HCD in December 2022;
WHEREAS, the HCD announced the release of approximately $135 million in funding for the CalHome Program througli the 2023 Super NOFA;
WHEREAS, the purpose of the 2023 Super NOFA is to distribute funds for the CalHome Program which supports homeownership programs aimed at low and very low-income households to increase homeownership, encourage neighborhood revitalization and sustainable development, and maxiinize use of existing homes;
WHEREAS, in accordance with the 2023 Super NOFA and CalHome Program Final Guidelines (2022) (the "CalHome Guidelines"), the City of South Gate is interested in applying for up to $5,000,000 of CalHome funds to provide down payment assistance in the forin of defei'red payment loans of up to $200,000 to first-time homebuyers; WHEREAS, the City of South Gate is working with Azure Coinmunity Development and Habitat for Humanity of Greater Los Angeles to build and sell affordable homes to households at or below 80 percent of the Area Median Income (AMI); WHEREAS, the City Council hereby authorizes and directs the Housing Manager, or designee, to execute and deliver all applications and act on the City of South Gate's behalf in all matters pertaining to all such applications;
WHEREAS, the City Council does hereby authorize the City Manager, or designee, to enter in to, execute, and deliver on behalf of the City of Soutli Gate, the Standard Agreement, and any and all subsequent amendments or modifications thereto, as well as any other documents required by HCD for participation in the CalHome Program, and any amendments or modifications thereto; and

Page 1 of 3 ends

57 WHEREAS, tlie City Council does hereby authorize the Housing Manager, or designee, to sign and submit Funds Reqriests and all required reporting forins and otlier documentation as may be required by HCD from time to time in connection with tlie grant.

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 true and correct and are incorporated herein by reference.

SECTION 2. The City Council, on behalf of Sorith Gate, has reviewed and hereby approves the submission to the Califorriia Department of Housing and Community Development of one or more application(s) in the aggregate amount, not to exceed, $5,000,000 for the following Homeownership Super NOFA (HOSN) activities pursuant to the 2023 HOSN Notice of Funding Availability (NOFA):

List activities and amounts:

CalHome First-Time Homebttyer Mortgage Assistance $5.000,000 SECTION 3. The City Corincil hereby authorizes and directs the Housing Manager, or designee, to execute and deliver all applications and act on the City of South Gate's behalf in all matters pertaining to all such applications.

SECTION 4. The City Council does hereby authorize the City Manager, or designee, to enter in to, execute, and deliver on behalf of the City of South Gate, the Standard Agreement, and any and all subsequent amendments or modifications thereto, as welI as any other documents required by HCD for participation in the CalHome Program, and any amendments or modifications thereto.

SECTION 5. The City Council does hereby authorize the Horising Manager, or designee, to sign and submit Funds Requests and all required reporting fon'ns and other documentation as may be reqriired by HCD from time to time in coru'iection with the grant.

SECTION 6. Tlie application in fiill is incorporated as part of the Standard Agreement. Any and all activities funded, infon'nation provided, and timelines represented in the application are enforceable throrigh the Standard Agreement. The City of South Gate aclaiowledges and agrees that it may be required to execute any and all instruments necessaiy or required by HCD for participation in the CalHome Program.

SECTION 7. The City Council does hereby approve the Professional Services Agreement with Avant-Garde, Inc. for the administration of the CalHome Program and Avant-Garde will act as the City's Administrative Subcontractor.
[Remainder of page left blank intentionally.]
Page2of3
58 SECTION 8. The City Clerk shall ceitify to the adoption of tl'iis Resolution which sliall be effective upon its adoption.

PASSED, APPROVED, and ADOPTED on this 14"' day of May 2024.

CITY OF SOUTH GATE:

By:

Gil Hurtado, Mayor
ATTEST:

B7:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

Raul F. Salinas, City Attorney
Page3of3
5 59
RESOLUTION N0. 2023-07-CC

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH GATE, CALIFORNIA APPROVmG AN APPLICATION FOR FUNDING

AND THE EXECUTION OF A STANDARD AGREEMENT AND ANY AMENDMENTS THERETO FROM THE 2023 HOMEOWNERSHIP
SUPER NOFA (HOSN) DATF,D JANUARY 6, 2023
WHEREAS, the California Department of Housing and Community Development ("HCD") announced the release of approximately $135 million in funding for the CalHome Program through the 2023 Homeownership Super Notice of Funding Availability ("NOFA"); WHERF'AS, the purpose of the Homeownership Super NOFA is to distribute funds for the CalHome Progrmn which supports homeownership prog aimed at low mid very low-income households to increase homeownership, encourage neighborhood revitalization and sustainable development, and maximize use of existing homes;
WHEREAS, in accordance with the 2023 Homeownership Super NOFA and CalHome Guidelines, the City of South Gate is interested in applying for up to $5,000,000 of CalHome funds to provide down payment assistance inthe form of deferred payment loans of up to $200,000 to first- time homebuyers;
WHEREAS, the City of South Gate is worUng with Azure Community Development and Habitat for Humanity of Greater Los Angeles to build and sell affordable homes to households at or below 80 percent ofthe Area Median Income ("AMI"); WHEREAS, the City of South Gate wishes to enter into a Professional Services Agreement with Avant-Garde, Inc., for the administration of the CalHome Program. Avant-Garde will act as the City's Administrative Subcontractor;
WHEREAS, Avant-Garde, Inc., has extensive experience administering various federally and state fundedprograms including the CalHome Program and will be compensated directly from the administrative and activity delivery fees allocated by the program.

NOW, THEREFORE, 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 tnue and correct and are incorporatedherein by reference.
gi
SECTION 2. The City Council, on behalf of South Gate, has reviewed and hereby approves the submission to the State of California of one or more application(s) in the aggregate amount, not to exceed, $5,000,000 for the following HOSN activities pursuant to the 2023 HOSN Notice of Funding Availability (NOFA):

Page lOf2
60 List aetivities and amounts:

Ca(Home First-Time Homebuyer Mortgage Assistance $5,000,000 SECTION 3, The City Council hereby authorizes and directs the Housing Manager, or designee, to execute and deliver all applications and act on the City of South Gate's behalf in all matters pertaining to all such applications.
e
SECTION 4. The City Council does hereby authorize, the City Manager, or designee, to enter into, execute, and deliver the Standard Agreement and any and all subsequent amendments thereto with the State of California for the purposes of the grant.

SECTION 5. The City Council does hereby authorize, the Housing Manager, or designee, to sign and submit Funds Requests and all required reporting forms and other documentation as may be required by the State of California from time to time in connection with the grant.

SECTION 6. The application in full is incorporated as part of the Standard Agreement. Any and all activities funded, information provided, and timelines represented in the application are enforceable through the Standard Agreement. The City of South Gate acknowledges and agrees that it may be required to execute any and all instents necessary or required by HCD for participation in the HOSN Program.

SECTION 7. The City Council does hereby approve the Professional Services Agreement with Avant-Garde, Inc., for the administration of the CalHome Program and Avant-Garde will act as the City's Administrative Subcontractor
I
SECTION 8. The City Clerk shall certify to the adoption ofthis Resolutionwhich shall be effective upon its adoption.

PASSED, APPROVED, and ADOPTED onthis 14th day ofFebruary 2023.

ATTEST:

B)7:

Yodit
APPROVED AS TO FORM:

I ,
BY:

Raul F. Salinas, City Attorney
e
Page2of2
61 STATE OF cALIF'oRNIA )

COUNTY OF LOS ANGELES )

CITY OF SOUTH GATE )
SS
I, Yodit Glaze, 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 Resolution No. 2023-07-CC was adopted by the City Council at their Regular Meeting held on Februaty 14, 2023, by the following vote:
gi
Ayes: Council Members: Avalos, Barron, Hurtado, and Rios Noes: Council Members: None

Absent: Council Members: Davila
Abstain: Council Members: None
Recused: Council Member: None
Witness my hand and the seal of said City on February 27, 2023.

Yodit
City of
City Clerk
Gate, Califomia
I
62 CITYMANAGER'S OFFICE
MAY 0 8 2024
<l: =(( Cig of South Gate

CITY COUNCIL
Item No. 4

AGENDA BULL
For tlie Regular Meeting of: May 14, 2024
Originating D : Human Resources
fflu/Plan Resources Director:

SUBJECT: RESOLUTION APPROVING A COMPREHENSIVE SUCCESSOR MEMORANDUM OF UNDERSTANDING COVERING JULY 1, 2021, THROUGH JUNE 30, 2025, WITH TmE SOUTH GATE DIVISION MANAGEMENT ASSOCIATION PURPOSE: To approve tl'ie compreliensive successor Memorandum of Understanding ("MOU") between the City of Sorith Gate ("City") and the South Gate Division Management Association ("SGDMA") coveting the tii'ne period of July 1, 2021 tlirougli June 30, 2025, which shall supersede the last MOUs, Amendments, Side Letters and Tentative Agreements between the City and the SGDMA.

RECOMMENDED ACTIONS: The City Council will consider:
a. Adopting a Resolution approving the compreliensive successor Memorandum of Understanding between the City and the South Gate Division Management Association for the teri'n of July 1, 2021, through June 30, 2025; and b. Authoriziiig the Mayor to execute the comprehensive successor Memorandum of Understanding in a fori'n acceptable to tlie City Attoiney.

FISCAL IMPACT: There is no fiscal impact from adopting the Resolution approving the comprehensive successor MOU as tl'ie terms were previously negotiated and were budgeted in eacli fiscal year covered by tliis compreliensive successor MOU.

BACKGROUND: The most recent Comprel'iensive Memorandum of Understanding MOU between the City and SGDMA covered the period of July 1, 2014, through June 30, 2015 (SGDMA MOU Contract No. 3094). Amendment No. 1 to Contracts No. 3094 extended tl'ie terii'i of the MOU between the City and the SGDMA through June 30, 2017. The SGDMA Tentative Agreement Contract No. 3406 extended the term of tlie MOU between tlie City and tlie SGDMA througl'i June 30, 2020. On August 31, 2021, the City Council approved tl'ie Side Letter of Agreement with the SGDMA (Contract No. 2021-118-CC). The City and SGDMA reached a Tentative Agreement for a successor comprehensive MOU (Contract No. 2022-58-CC) covering the period of July 1, 2021, through June 30, 2025. This MOU incorporates those changes into tliis compreliensive MOU.

The SGDMA has reviewed and approved the recently completed comprehensive successor MOU ("SGDMA MOU 2021 -2025").
1 63
ATTACHMENT: Proposed Resolution (ii'icluding Exhibit A - Compreliensive Successor SG DMA 2021-2025)
2 64
RESOLUTION NO.

CITY OF SOUTH GATE

LOS ANGELES COUNTY, CALIFORNIA

RESOLUTION OF THE CITY COUNCIL OF THE CITY OF SOUTH

GATE, CALIFORNIA, APPROVING A COMPREHENSIVE SUCCESSOR MEMORANDUM OF UNDERSTANDING COVERING JULY 1, 2021,
THROUGH JUNE 30, 2025, WITH THE SOUTH GATE DIVISION

MANAGEMENT ASSOCIATION
WHEREAS, the last Memorandum of Understandii'ig ("MOU") between the City of Soutli Gate ("City") ai'id South Gate Division Management Association ("SGDMA") covered tl'ie term of July 1, 2014 tmough June 30, 2015 (SGDMA MOU Contract No. 3094); WHEREAS, Amendment No. l to Contracts No. 3094 extended the temi of the MOU between tlie City and tlie SGDMA tlirougli June 30, 201 7; WHEREAS, the SGDMA Tentative Agreement Contract No. 3406 extended the term of the MOU between tl'ie City and the SGDMA through June 30, 2020; WHEREAS, On August 31, 2021, the City Council approved the Side Letter of Agreement witli the SGDMA (Contract No. 2021-118-CC); WHEREAS, on September 13, 2022, the City Council approved the Tentative Agreement for a Successor Comprehensive MOU (Coatract No. 2022-58-CC) with the SGDMA which covered the tenn'i of July 1, 2021 through June 30, 2025; WHEREAS, the City met and conferred with SGDMA to consolidate tlie changes within the Tentative Agreement and previoris side letters into one comprehensive, complete, and consolidated MOU; and
WHEREAS, the SGDMA reviewed and approved the con'ipleted con'ipreliensive successor SGDMA MOU 2021-2025, which shall become effective on the date of adoption by the South Gate City Council.

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 tlie above recitals are true and coirect and incorporated herein by reference.

SECTION 2. The City Council does hereby accept, approve and adopt the comprehensive successor MOU between tlie City of South Gate and tlie SGDMA for tlie ternn of July 1, 2021 through June 30, 2025, attached hereto as Exhibit "A."

Page 1 of 2 ends

65 SECTION 3. The City Clerk shall certify to the adoption of this Resolution which shall be effective upon its adoption.

PASSED, APPROVED and ADOPTED this 14th day of May 2024.

CITY OF SOUTH GATE:

By:

Gil Hurtado, Mayor
ATTEST:

By:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

By:
?ffl !ala,- CiE'tE'nieSy")

Page 2 of 2 ends

4 66
EXHIBIT "A"
Contract No.

MEMORANDUM OF UNDERSTANDING

BETWEEN THE

CITY OF SOUTH GATE

AND THE

SOUTH GATE DIVISION MANAGEMENT ASSOCIATION
JULY 1, 2021, TO JUNE 30, 2025
5 67

TABLE OF CONTENTS

ARTICLE I
SECTION l
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7
SECTION 8
SECTION 9
SECTION 0
SECTION l
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7
SECTION 18
SECTION 19
4 4
4 4
4-6
6 6
6 6
7 8
8 8
8 8
GENERALPROVISIONS 3
RECOGNITION . . . . . . 3

CURRENT AND SUPPLEMENTAL AGREEMENTS

NONDISCRIMINATION

DURATION

DUES DEDUCTION

SEVERANCE PLAN

DRESS CODES

ASSOCIATION BUSINESS

USE OF CITY FACILITIES/VEHICLES

EMPLOYEE HANDBOOK

PROBATION PERIOD

WORK SCHEDULES

ELECTRONIC CHECK DEPOSIT

SUBST ANCE ABUSE POLICY

SMOKE FREE POLICY
TRAINING STANDARDS FOR EMPLOYEES WHO SUPERVISE .

ASSOCATION ACCESS TO NEW EMPLOYEE ORIENTATIONS

AND INFORMATION

EMPLOYEE ACKNOWLEDGEMENT OF RECEIPT OF OFFICIAL
DOCUMENTS ... . . . . . . 9
EXCLUSION FROM CIVIL SERVICE RULES AND REGULATIONS.. 9 8-9

ARTICLE II
SECTION l
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7
SECTION 8
SECTION 9
SECTION 10
SALARnESANDALLOWANCES 10
PAY INCREASES IMPLEMENT ATION . 10
WAGES . . . . . . . 10
MERIT BASED STEP INCREASE. . ... 10
WORKING TEMPORARILY IN A HIGHER CLASSIFICATION.........lO-11 EDUCATIONAI,REIMBURSEMENT . . 11-12
Mu,EAGEALLOWANCE . . .. . . .. .. . 12
COMMUNICATIONDEVICE , . 12
BILTNGUALPAY . .. .... ... . . .. .12
EDUCATIONALINCBNTIVEPAY 12-13
LONGEVITYPAY . . .. . 13
ARTICLE m

SECTION I
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7
SECTION 8
SECTION 9

FRINGE BENEFITS

MEDICAL, DENTAL & VISION INSURANCE

LIFE INSURANCE

VOLUNTARY LIFE INSURANCE
sECTION 89 CONSIDERATIONS

RETIREMENT

DEFERRED COMPENSATION

RISK MANAGEMENT PROGRAM

PHYSICAL FITNESS

LONG TERM DISABILITY
14 14 -15
15 15 -16
16 .16-17
17 17
17-18
18 1
68 ARTICLE IV
SECTION l
SECTION 2
SECTION 3
SECTION 4
SECTION 5
SECTION 6
SECTION 7
SECTION 8
SECTION 9
SECTION 10
SECTION 11

LEAVE POLICIES

HOLIDAY LEAVE

VACATION

SICK LEAVE

PAY FOR JURY DUTY

LEAVE WITHOUT PAY

MATERNITY LEAVE

FAMILY MEDICAL LEAVE ACT

BEREAVEMENT

JOB RELATED INJURY OR ILLNESS

MILIT ARY LEAVE

ADMINISTRATIVE LEAVE

ARTICLE V
SECTION 1
SECTION 2
SECTION 3

DISCIPLINE & PROBLEM RESOLUTION

DISCIPLINE PROCEDURE

PROBLEM RESOLUTION

GRIEVANCE PROCEDURE

ARTICLE VI

SECTION I
SECTION 2

IMPLEMF,NTATION OF MEMORANDUM OF

UNDERSTANDING

WAGE RIGHTS
REOPENERS.

SIGNATURE PAGE
.19
. 19-20
20 21-23
23 23 -24
24 24 -25
25 25
.26
26 ....27
.27-28
28 -29
29 -31
33 2
69 ARTICLE I

GENERAL PROVISIONS
SECTION 1 RECOGNITION
The South Gate Division Management Association (hereinafter "Association") is the duly recognized employee organization for the Division Management Employees Unit of the City of South Gate (hereinafter the "City") employee in the following classifications only:

Building Official
Economic Development Manager
Depufy City Engineer
Deputy Director of Finance
Deputy Director of Human Resources
Deputy Director of Parks & Recreation
Deputy Director of Public Works - Field Operations Housing Manager
Parks Superintendent
Planning Manager
Risk Manager
The parties have met and conferred regarding an extension to the existing Memorandum of Understanding (hereinafier referred to as "Agreement" or "MOU") and this amendment reflects the agreed-upon modified terms of, and additional new terms to, the existing MOU. All terms and conditions of the existing MOU shall continue unless expressly modified herein. This Amendment No. l to the 2014-15 MOU, made this 8' day of March 2016, is entered into with reference to the following facts:

WITNESSETH:

WHEREAS, the South Gate Division Management Association, (hereinafter called the "Association" or the "DMA"), is the duly recognized employee orgaization for its members employed by the City of South Gate (hereinafter called the "City") in an employee group defined by Resolution No. 4508 (Employer-Employee Relations Resolution) (8.2.7) of the City Council of South Gate, and subsequent mnendments to the same, as "All employees in the Pay Pan F (Unclassified Division Management Employees);" and,
WHEREAS, the Association and the City's Representatives have met and conferred in good faith over the wages, hours, and other conditions of employment for the employees represented by the Association and have reached an understanding as to certain recommendations to be made to the City Council of South Gate.

NOW, THEREFORE, the City's Representatives and the Association hereby agree as follows:
3 70
SECTION 2 CNT AND SUPPLEMENTAL AGREEMENTS
It is the intent of the City and the Association that this Agreement supersedes all previous agreements or understandings either written or oral and contains the entire understanding between the parties on all matters subject to the Meet and Confer process. No amendment, change, or variation hereof shall be valid orbinding unless reduced to writing and signed by the duly authorized representatives of the City and the Association.

SECTION 3 NONDISCRIMmATION
The City and Association agree that, in applying the terms of this MOU, neitherparty will discriminate against any employee because of race, religious creed, color, national origin, ancestry, physical disability, mental disability, medical condition, genetic information, marital status, sex, gender, gender identity, gender expressiori, age, sexual orientation, veteran or military status, political beliefs and affiliations, or union affiliation of any person or from any other reason prohibited by law.

SECTION 4 DURATION
This MOU shall be effective from July 1, 2021 throughJune 30, 2025 and shall supersede the SGDMA MOU 2014-2015 (Contract No. 3094), any atnendments, resolutions or side letters thereto, the Tentative Agreement Contract 3406 and any amendments or side letters thereto, and any other labor agreements entered prior to this successor MOU, which are all intended to be incorporated in t's MOU if to be continued. The MOU shall become effective only affer adoption by the City Council of the City of South Gate following ratification by the members of the Association.

SECTION 5 DUES DEDU'nON
The City will provide automatic payroll deduction for the collection of association dues, if so requested by the Association.

SF,CTION 6 SEVERANCE PLAN
Employees may be terminated without cause or laid-off in the sole discretion of the City provided that the City shall give the Employee one (l) month written notice of its intent to do so, and upon the effective date of such termination, shall pay the employee a severance payn'ient as follows:

1. For any employee employed by the City as of September 1, 2003, or thereafter, and not identified in Section 2 below, the severance payment shall be equal to three (3) monUhs of his or her base salary upon temnination, less ordinary deductions for taxes and other customary withholdings.

2. FortheRiskManagerand/ortheHousingManagerhiredonorafterOctoberl,2022, to on or before March 30, 2023, the severance paytnent shall be equal to six (6) months of his or her base salary upon termination, less ordinary deductions for taxes and other customary withholdings.
4 71
Acceptance of the severance payment will be consideration by the City in exchange for a full and complete settlement of all employment disputes between the employee and the City, and the employee will execute a severance agreement to this effect prior to and as a condition of receiving the severance. The employee will not be eligible for the notice period orseverancepay described above ifhe/sheisterminated for cause as defined below or if employee fails to execute severance agreement.

If the City determines that it has cause to terminate an employee, it shall provide die employeewithwrittennotificationdetailingthecausefortennination. Theemployeeshall have ten (10) working days to challenge the cause for termination. If the City, in its sole determination, is not persuaded by the challenge to rescind the termination, the empioyee shall be terminated. The employee may then appeal the termination in accordance with miCle V, SeCtiOn 3, Step 4. b7 neWl7 hired employee iS net eligible far SeVeranCe, or the giievance procedure outlined herein until he/she passes the probationary period or extended probationary period as defined in Article I, Section 13. However, when an employee who has passed his/her initial probationary period accepts a probationary appointment in a new classification, the employee retains the right to the severance pay and grievance procedure benefits under the tenns outlined herein. 1, Termination for Cause. An employee may be terminated for cause in the event that the employee is:
a. Convicted of any illegal act involving personal gain to the employee; b. Convicted of any felony, irrespective of the charge; c. Convicted of any tnisdemeanor involving charges of moral turpitude, fraud or any act of misappropriation of public funds while working for the City, or; d. Found by the City Council, upon the recommendation of the City Manager, to have:
(l) Been in gross neglect or dereliction of his/her duties, including willfiil or repeated violation of Article V, Section l.A. of this MOU; (2) Misappropriated any assets of the City; or
(3) Failed to accurately state his/her representations or warranties.

2. Written Notice.

A written document delivered to the employee by the Department Head or City Manager or his/her designee describing the reason(s) for the employee's termination and the date that the employee will be teiminated.

3. Notice period.

In the case of termination without cause, the notice period is intended as a time during which the employee can look for other employment while remaining on the City payroll. The employee will be available and will cooperate in helping to transition his/her work assignments during this period, however, the majority of the notice period will be utilized for job search. With mutual agreement between the employee and the City, some or all of the notice period may be converted into severance pay 5 72
based on the employee's salary. For instance, if the employee eanis a salaiy of $1,000 per week and it is mutually agreed to convert two (2) weeks of notice into a cash payment, a total of $2,000 would be added to the employee's severance benefit and he/she would leave the City payroll two weeks earlier than required by this MOU. If the employee accepts another job during the notice period and presents the City with a valid offer of employment, the time remaining in the notice period from the employee's hire date with the new organization will be converted to a severance payment as described in this paragraph.

SECTION 7 DRESS CODE
The parties agree that City dress codes shall be determined by management in accordance with business necessity and shall not be subject to meet and confer.

SECTION 8 ASSOCIATION BUSINESS
Elected Association stewards and officials will be provided a reasonable amount of time during normal working hours to conduct official Association business. This time will be recorded in accordance withCity policy. Time spent on official Association business shall not disrupt critical work schedules. Disputes about this policy will be resolved through good faith discussions between the City and the Association and will not be subject to the grievance procedure.

SECTION 9 USE OF CITY FACILITIE,S/VEHICIJS
The City agrees that the Association may use City facilities to conduct meetings, provided that advance notice is given to the City, proper reservations are made for the use of the facilities to ensure availability and prevent scheduling corfflicts, and that such use does not interfere with the normal business operations of the City. Employees who are required to participate in City sponsored or sanctioned activities outside oftheir normal workhours or normal work days may be allowed to take an available City veicle home the day(s) of the activity with the approval of their Department Director or the City Manager.

Additionally, employees may use available City vehicles during normal work hours, with the approval of their Department Director or the City Manager, to accomplish special assignments if their personal vehicle is not appropriate for the assignment or the assignment may damage their personal vehicle.

SECTION 10 EMPLOYE HANDBOOK
The Handbook will be updated at least annually and will be available in electtaonic form.

SECTIONII PROBATIONPERIOD
A. Allemployeesnewtoapositionarerequiredtocompleteapmbationaryperiodofone (l) year (2080 hours) which is considered to be an extension of the examination process and an opportunity for the newly placed employee to demonstrate abilities and skills necessary for successful work performance in the particular classification and position.
6 73
B. Any appointment to a position from an eligibility list is subject to a probationary period of one (1) year, equivalent to a total of 2,080 actua} work time hours including eamed holiday leave, before an appointee acquires a permanent status in the position.

Two weeks prior to the end of the probationary period, the Department Head shall forward the probationary employee's Performance Appraisal to the Personnel Officer recommending that the employee be given permanent status ifhis/her service has been satisfactory, recornrnending an extension of the probationary period, or recomtnending that the employee be terminated or returned to the position vacated.

The initial probationary period may be extended an additional six (6) months at the discretion of the Department Head in the documented cases where work performance cannot be fully evaluated within the initial six (6) month period.

C. An employee may be removed by the appointing authority at any time during the probationary period by submission of a termination notice to the Personnel Officer, and the same shall not be subject to the Grievance Procedure. The Personnel Officer may restore any employee so terminated to the eligibility list from which he/she was removed if there appears to be an adequate basis for anticipating the employee might render satisfactory service in another deparhnent. When a present employee with permanent status accepts probationary appointment in a new classification, whether or not promotional, that employee retains the right to return to the position vacated.

1. Employee Performance Review
a. All probationary employees shall be reviewed by their supervisors after six (6) months of service and after twelve (12) months of service. (This includes new employees and employees serving a probationary period after a promotion or transfer.)
b. Each employee shall receive an annual performance review that shall be due on the anniversary of the date that he/she passed probation in his/her current position.
c. If an employee is not timely evaluated on or before twelve (12) months after hire, then his/her probation is deemed automatically extended until completed and a formal decision is made to fail, pass or extend by a set period of time.

No employee shall be deemed to have passed probation by failure of the City to timely act on the probation as only formal written approval by the Personnel Officer can result in permanent status in the position.

SECTION 12 WORK SCHEDULES
The 4/10 work schedule shall continue and may be re-evaluated each year of this Agreement. The City agrees to Meet and Confer with the Association on any proposed changes to the 4/10 schedule.

SECTION 13 ELECTRONIC CHECK DEPOSIT
The City will continue to provide an electronic check deposit program. 7 74
SECTION 14 SUBSTANCE ABUSE
The City and the Association agree that it is appropriate to provide a drug-free workplace through the establishment of policies and procedures that clearly prohibit the use of alcohol and other drugs and their influence on the job. The Association will cooperate with the City in implementing its Drug and Alcohol Abuse Policy. The City agrees to Meet and Confer with the Association prior to making any significant modifications to its Drug and Alcohol Abuse Policy.

SECTION 15 SMOKE FREE POLICY
All City buildings and vehicles shall be considered "smoke free" areas.

SECTION 16 TRAINING STANDARDS FOR EMPLOYEES WHO SUPERVISE Performance standards for employees who supervise shall be amended to include forty (40) hours of approved supervisor training per year on City time. This standard shall be imposed through the normal annual performance evaluation process. The Personnel Department will regularly publish training opportunities.

ARTICLE 17 ASSOCIATION ACCESS TO NEW EMPLOYEE ORIENTATIONS AND

INFORMATION
The City agrees to provide no less than 10 calendar days' notice to the Association in advance of any new employee orientation(s) and provide the Association access to the orientation(s). Orientation refers to any onboarding process, whether in person, online or through other means. In accordance with California Government Code F> 3557, access shall be determined by mutual agreement between the City and the Association. Access could be effectuated by representational attendance or correspondence, although the parties' preference is generally correspondence over representational attendance. The Association shall advise the City reasonably in advance of any orientation as to the type of access requested.

The City agrees to provide the Association with the name, job title, department, work location, work, home, and personal cellular telephone numbers, personal email addresses on file with the City, and home address of any newly hired employee within thirty (30) days of the date of hire. The City also agrees to provide the association with a list of the foregoing information for all bargaining until employees at least one every 120 days at the Association's written request.

Notwithstanding the foregoing, the City shall not provide the Association with the home address or any phone number on file with the City of any employee performing law enforcement-related functions. For purposes of this MOU, "Jaw enforcement-related functions" includes any City police department employees and any City code enforcement officer. The City will not provide the Association with anyhome address, hometelephone number, personal cellular telephone number, or personal email address of any employee who has made a written request to the City regarding non-disclosure of said infomiation (except, with respect to personal email addresses, as may be necessary to comply with the g
13 75
Public Records Act).

ARTICLE 18 EMPLOYEE ACKNOWLEDGEMENT OF RECEIPT OF OFFICIAL

DOCUMENTS
Employees being served with City documents that contain a formal Notice of Acknowledgement of Receipt with a signature line and date for the employee to sign and who are directed to sign such document at Uhe time presented, shall promptly sign and date the Notice of Acknowledgement of Receipt or may be subject to discipline for insubordination for failure to comply with an official directive and for violation of this MOU. Any disciplinary document shall have the following sentence before the signature line: "My signature does not mean that I agree with die contents of this document and does not waive any of my rights."
AR'nCLE 19 EXCLUSION FROM aVIL SERVICE RULES AND REGULATIONS DMA employees are "at will" and excluded from the City's civil service rules and regulations pursuant to Section 1.24. 105 of the South Gate Municipal Code 9 76

ARTICLE II

SALARIES AND ALLOWANCES
SECTION 1 PAY INCREASE IMPLEMENT ATION
The City shall make payroll changes for step increases, pay increases, and other compensation changes at the start of the nearest pay period, subject to the Personnel Officer's approval and/or adjustment (due to special circumstances), SECTION 2 WAGES:

A. Effective the first full payroll period of July 2024 the base salad for the classifications for the represented Unit classifications shall be increased by three percent (3.0%)
B. Effective the second full payroll period of July 2024, employees still on payroll and who worked during any part of the period March 18, 2020, to January 1, 2022, shall receive ari Essential Worker Stipend of $1,000.

SECTION 3 MERIT BASF,D INCRE,ASES
All employees will be placed on the same evaluation schedule with either annual or serni- annual evaluations. Advancement to a higher Step in each Grade will be contingent upon an overall satisfactory or exemplary performance evaluation. Merit increases must be recommended by the employee's Department Head and approved by the City Manager.

Should a Departtnent Head fail to complete an evaluation through no fault of the employee, the employee will automatically receive any regularly scheduled increase.

Department Heads are required to take affirmative action to withhold a salary step increase, withthis action to be approved by the City Manager. The withholding of a salary step increase may be reviewed by the Personnel Officer ifthe employee requests. Further, if a supervisor rates an employee unsatisfactory and fails to withhold a step increase, the supervisor shall be required to justify the lack of action. Withholding a salary increase is an administrative action, and not disciplinary, and therefore is not a subject to appeal.

When an employee is given an unsatisfactory performance evaluation and a salary step withheld, the employee and the supervisor shall meet and establish goals and a plan to improve the performance. When an employee meets the goals of the performance improvement plan the employee will then eam a step increase.

SECTION 4 WORKING TEMPORARILY IN A HIGHER CLASSIFICATION

RIGHT TO ADDITIONAL COMPENSATION
Employees who are formally appointed to act and work in a higher temporarily vacant and budgeted position shall be entitled to additional compensation in the amount set forth below. 10 77

CONDITIONS PRECEDF,NT FOR ACTING PAY COMPENSATION
1, Minimum Time in Classificahon Requirement
The employee must be appointed to work in a temporarily vacant and budgeted higher classification for the requisite time periods specified below:

B. If the temporarily vacant and budgeted higher classification to which the employee is appointed is vacant due to lack of a permanent employee occupying said position, the requisite time period is three (3) consecutive work weeks in order to receive acting pay, at which time the acting pay shall be retroactive to the commencement of the appointment start date.
b. If the temporarily vacant and budgeted higher classification to which the employee is assigned is vacant due to a temporary absence of a pemianent employee, such as illness, vacation, leave of absence, absence without leave, or acting in a higher position, the requisite time period is a cumulative period of four (4) work weeks in a twelve (12) month period preceding the day upon which the employee is appointed to commence acting in the higher classification, at which time the acting pay shall be retroactive to the commencement of the appointment start date.

2. Authomation
Appointment to act and work in a temporarily vacant and budgeted higher classification must be approved in writing signed by the Deparhnent Director.

Additionally, prior to the first day of eIigibility for compensation, as stated in subparagraph I, the Personnel Officer has authorized the appointment in writing to confirnn that there is a temporarily vacant and budgeted higher classification. If the Personnel Officer is not available to approve the appointment, then the Department Director shall not continue the acting appointment beyond five (5) working days unless or until they have obtained approval of the Personnel Officer.

3. Compensation
Acting Pay shall be in the amount equal to the number of hours worked in the higher classification after meeting the minimum time in classification requirement multiplied by the rate of compensation established for that position classification at the step in the Salary and Compensation Resolution necessary to provide the employee with a minimum of five percent (5%) increase but shall in no event exceed the highest step of the range assigned to the higher classification.

SECTION 5 F,DUCATIONAL REIMBtJRSEMENT
The individual educational reimbursement cap is $2,500 annually ($3,000 for private universities). The City shall reasonably budget for this expense based upon past use experience. Full-timeCityemployeeswhohavesuccessfullypassedtheirinitialprobation period are eligible to participate in the educational reimbursement plan. To be eligible for 11 78
reimbursement, the employee must obtain a grade of "C" or better and submit a grade slip or other evidence of successful course completion and appropriate invoices and/or receipts. If the employee leaves voluntarily or separates from the City within two years from the date of completion of a course for which reimbursement is received, the City may withhold the amount of such reimbursement from the employee's final check.

For the Risk Manager and/or the Housing Manager hired on or after October 1, 2022, to on or before March 30, 2023, the annual individual educational reimbursement cap is up to $3,500 for public, private, or recogrfflzed professional organizations.

SECTION 6 AUTO ALLOWANCE
Employees shall be required to furnish their own automobiles for City business.

Employees will be compensated for the use of their automobile at a rate of four hundred dollars ($400) per month, which shall be taxable as compensation.

For the Risk Manager and/or the Housing Manager hired on or after October 1, 2022, to on or before March 30, 2023, in lieu of the City providing a vehicle or paying mileage reimbursement for City business use, the employee may receive up to $500 per month as a vehicle allowance. The employee shall muiually present proof of vehicle insurance and that such coverage shall cover the vehicle operation for city business purposes by said employee. The employee shall also participate in the City's annual DMV verification program.

SECTION 7 COMMUNICATION DEVICES
Unless other arrangements are approved by the City Manager, atl DMA members shall elect to either receive a City - issued cellular telephone device or a $100 per month allowance for is/her personal technology device use. Such allowance shall be taxable as compensation.

For the Risk Manager and/or the Housing Manager hired on or after October 1, 2022 to on or before March 30, 2023, in lieu of the City providing a cell phone, the employee shall receive $120 per month for communication expenses. The employee understands the monthly records of calls may be subject to the California Public Records Act relating to City business items. The City Attorney's Office will make any determination of applicability
SECTION 8 BILINGUAL PAY
Effective January 7, 2018, DMA members will be eligible for bilingual pay of $125.00 per month. To receive the bilingual pay, a DMA member will need to get approval of his/her Department Director, based upon the extent of is/her usage of the bilingual skills, and pass the appropriate bilingual skills test.

SECTION 9 EDUCATION INCENTIVE PAY
As long as the degrees at issue are not part of the requirements of the classification, 12 79
employees who have or obtain a B.A. or B.S. will be paid an additional $50 per month.

Employees who have or obtain a post-graduate degree will be paid an additional $125 per month.

For the Risk Manager and/or the Housing Manager hired on or after October 1, 2022, to on or before March 30, 2023, the City shall pay $225 per month for any employee that has obtained a master's degree or higher from a fully accredited university.

SECTIONIO LONGEVITYPAY
The City recognizes that as an employee's service with the City increases, the employee's knowledge of operating procedures, productivity and ability to provide outstanding service to the citizens of South Gate increases. For these reasons, the City shall provide a flat monthly rate longevity pay which is added to the eligible employee's base pay. Longevity pay is determined once per year on the employee's anniversary dates pursuant to the following table:

Years of Seriice
Pay
Grade Classification 10-14 15-19 20+
650 Building Officia! S5245.93 $307.42 $368.90
650 Econom-ic Deveiopment Manager E5245.93 $307.42 $368.90 659 Deputy City Engineer $288.58 !l5360.73 $432.87
650 Deput; Director of Finance (5245.93 !l5307.42 $368.90 650 Deputj Director of Human Resources
<
5245.93 !I;307.42
I
3368.90
655 Deput; Director of P:arks & Recreation
<
B218.28 $272.84
I
3327.41
714 Deput; Director of Public Works - Field Operations <
5288.58 $360.73
I
5432.87
713 Housing Manager (5229.49 $286.86
I
3344.24
656 Parks Superintendent
<
5208.94 $261.18
I
3313.42
713 Planning Manager $229.49 $286.86 $344.24
712 Risk Ma-nager - $255.46 $319.32 $383.19
13 80

ARTICLE III

FRINGE BENEFITS
SECTION l MEDICAL & DENT AL INSURANCE
A, Medical Insurance
The City will pay an insurance premium that is equivalent to the Kaiser HMO rate for the Southem California-Los Angeles area. Employees who select a more expensive plan will be responsible for any difference in premiums. The City will provide m amount equal to the one party Kaiser HMO rate for the Southern California - Los Angeles area, per month, in defened compensation to those employees who do not purchase health insurance, but can show proof of medical insurance coverage on an annual basis. The current Kaiser - Southern California rate can be requested firom the Human Resources Office.

For the Risk Manager and/orthe Housing Managerhired on or after October 1, 2022, to on or before March 30, 2023, they will receive up to $1,000 + 1.OO% of is/her annual salary, monthly towards mandatory health and dental coverage, which includes the required CalPERS monthly contribution. In lieu of this benefit, Employees may receive an amount in cash up submittal of waiver and proof of enrollment in an alternative group health plan and annually each year after; however, in lieu cash out is limited to $900 per month.

B. Dental Insurance
Dental Health Services (DHS) plans will no longer be available for bargaining unit employees.

The current dental plan year is March 1, 2014 to February 28, 2015. The City currently pays the maximum amount of $48.70 towards an employee's dental plan coverage. This rate of $48.70 is equivalent to Dental Health Services (DHS) HMO plan family coverage rate.

Effective March 1, 2015, the City will pay the maximum amount equivalent to the current DHS HMO plan family coverage rate of $48.70 or Delta Dental HMO plan family coverage rate, whichever is higher. Employees who select more expensive plans will be responsible for any difference in premiums. The City will provide an amount equal to the Delta Dental HMO plan family coverage rate per month in deferred compensation to those employees who opt out of the City's dental insurance. Employees must show proof of altemate dental insurance coverage on a yearly basis in order to receive payment provided herein.

For the remainder ofthe 2014/15 contract anduntil the 2015/16 contract is approved, the City will cover the increase in cost of switching from Dental Health Services PPO and EPO plans to the equivalent Delta Dental PPO plans. 14 81
Example l : Employee A, currently enrolled in Dental Health Services PPO family coverage has a premium rate of $186. 15; the City pays $48.70; and the employee is responsibleforpaying$l37.45. EmployeeAcanswitchtoDeltaDental PPOfamily coverage with a premium rate of $21 1.30; the City will pay $48.70, plus $25.15 (the difference between the employee's new premium level of responsibility of $162.60 and the old level ofresponsibility of $137.45) for a total of $73.85; arid the employee is responsible for paying $137.45.

Example 2: EmployeeB, currently enrolled in Dental Health Services EPO employee only coverage has apremium rate of $40.05; the City pays $19.95; and the employee is responsible for paying $20.10. Employee B may elect to switch to Delta Dental PPO employee only coverage with a premium rate of $68.88; the City will pay $19.95, plus $28.83 (the difference between the employee's new premium level of responsibility $48.93 and the old level of responsibility of $20.10) for a total of $48.78.

C. Vision Plan
Effective on the first of the month as soon as feasibly possible following the date the City Council approves this MOU, the City agrees to contribute up to the monthly dollar amount equal to the VSP Choice Plan B Copay: $10/10 employee plus family coverage rate toward vision plan coverage.

For the Risk Manager and/or the Housing Manager hired on or after October 1, 2022 to on or before March 30, 2023, the City will pay the employee and up to two (2) dependents party HMO plan premium.

D. Opt Out
Employees who have not opted out of City-provided Medical and Dental insurance prior to July 1, 2023, and who later opt out of City-provided Medical and Dental insurance shall receive one-half of the premium amount for which they would othetwise qualify. For those ciurent employees who opted out prior to July 1, 2023, shall continue to receive 100% of the premium amount for wich they would otherwise qualify.

SECTION 2 LIFE INSURANCE
The City shall provide $100,000 Life and Accidental Death and Dismembennent Insurance for all employees represented by the Association. However, at age 65, coverage is at 65%; at age 70, coverage is at 40%; at age 75, coverage is at 25%; and at age 80, coverage is at 15%.

SECTION 3 VOLUNTARY LIFE INSURANCE
Eligible employees will be offered the opportunity to purchase life insurance in addition to the life insurance paid forby the City. Currently the voluntarylife coverage is provided by The Guardian and estab}ishes the terms and conditions regarding coverage.

If, due to a change in insurance carrier or other reasons, any significant features of the 15 20 82
Plan need to be changed, the City will Meet and Confer with the Association before the changes are implemented.

SECTION 4 SECTION 89 CONSIDERATIONS
The City shall comply with IRS Section 89 requirements as mandated by Congress and, should there be any changes regarding said implementation which would require Meet and Confer, then the City shall notify the Association immediately SEC"nON 5 RETIREMENT
A. Employee Contributions
All employees will pay the employee's 8 % contribution to the retirement plan.

Starting on July 1, 2023, all represented Unit members, "Classic" and "PEPRA" as defined by CalPERS, shall pay an additional 1% towards the employer CalPERS contribution as cost sharing to be implemented by a CalPERS contract amendment and an additional 1% (for a total of 2%) starting July 1, 2024.

B. Additional Retirement Benefits
The following are benefits provided to employees and their eligible dependents/beneficiaries under the terms of the retirement plan:
1, One-Year Final Compensation - Final compensation is calculated using the last (or highest) twelve consecutive monthly pay rates;

2. Post-Retirement Surnvor Benefit - Provides that upon death of a member after retirement, an allowance shall be continued to the surviving spouse;

3. Post-Retirement Survivor Benefit to Continue After Remarriage - Allows the survivor allowance to continue even though survivor of a retiree re- marries;

4. Continuation of Death Benefits After Remarriage - Provides that the Death Benefits being paid to a spouse of a member who died prior to retirement will be continued in fiall should the spouse remairy.

5. The "2.7% at Age 55" Retirement Formula - Calculation of retirement 5enefit;

6. The 1959 Survivor Benefit at Level 4 - Higher level of benefits than the Basic or other levels of the benefit;
7, Military Senrice Credit - Credit of maximum of four years of service;

8. Unused Sick Leave Credit - Receive additional service credit at the rate of

0.004 years of each day of sick leave.
16 83
C. Retiree Medical Insurance
The City's DMA retirees continue to be covered by the City's Public Employees' Medical & Hospital Care Act (PEMHCA) resolution. For those who retired prior to July 1, 2023, and who retired with twenty (20) or more years of City service and remain in a CalPERS medical plan or enroll in a CalPERS medical plan, and remain so retired, they shall continue to receive a medical insurance benefit not to exceed one hundred and fifty dollars ($150) per month. For those employees who retire on or after July 1, 2023, and retire with twenty (20) or more years of City service and remain in a CalPERS medical plan or enroll in a CalPERS medical plan, and remain so retired, they shall receive a medical insurance benefit not to exceed three hundred dollars ($300) per month. This section specifically makes no provision for any dependents of the retiree. The retired employee will continue to have the option to purchase medical insurance for him-/herself and his/her dependents, as currently provided at hisAier own expense.

The City agrees to notify employees of the need to enroll or remain in a CalPERS medical benefit plan to receive this benefit at the time the employee submits the "Intent to Retire" packet.

SECTION 6 DEFERRED COMPENSATION
The City currently offers several deferred compensation plans to employees and said plans offer a savings plan only. Enrollment in such plans is on an ongoing basis.

Effective the first full pay period after the City Council approves this MOU, the City shall match one hundred percent (100%) of employee contributions toward deferred compensation plans up to a maximum of twelve hundred dollars ($1,200) per calendar 7eaIa.

For the Risk Manager and/or the Housing Manager hired on or after October 1, 2022, to on or before March 30, 2023, the City shall match employee conhibution up to $550 per month.

SECTION 7 RISK MANAGEMENT PROGRAM
The City is concerned with safety, loss reduction, and increased productivity. To address these issues, the City will meet periodically with the Association to discuss plans that will focus on issues such as, the non-use of sick leave, safe driving record, and safety/loss recovery suggestion award progratn.
17 22 84
SF,CTION 8 PHYSICAL FITNESS
Each employee shall receive a membership at the South Gate Sports Center in the South Gate Park. The membership will be determined in the following manner:

A. Employees shall receive a family membership (spouse and dependent children) that will be provided at no cost and includes access to the golf course and swimming pool.

This membership includes free access to all Park facilities that are open to the public, but excludes City sponsored classes that require a fee.

SECTION 9 LONG-TERM DISABILITY
As of June 1, 2018, the City pays for the Long-Term Disability coverage through Reliance Standard, or wMchever company the City may contract for similar services in the future.
18 23 85
SECTION 1 HOLIDAY LEAVE
A. Entiflement

ARTICLE IV

LEAVE POLICIES
Employees who are on the payroll as of July 1st of each FiscalYear, shall be credited with appropriate Holiday Leave per Section B. Employees in those Pay Plan Categories referred to above hired after the 1st of each Fiscal Year will be credited as the date of bire with ten (10) hours of holiday leave for each designated holiday remaining in the Fiscal Year. Entitled employees may be absent fimm work but nevertheless receive compensation at the employee's then current rate of pay on either (a) the holidays designated below; or (b) days otherwise scheduled in advance and agreed upon between the employee's supervisor and the employee. Entitled employees shall earn Holiday Leave in increments of ten (10) hours if the employee is working or on paid leave both as the holiday occurs during the calendar year, and at the commencement of the day following the designated holiday. Holiday Leave time used shall be deducted from the hours credited in increments according to the employee work schedule. Holiday hours may not be carried over to a succeeding year.

B. Each fiscal year, the City shall observe the following named holidays:

New Year's Day
Martin Luther King's Birthday
President's Day
Cesar Chavez Day
Memorial Day
Independence Day
Labor Day
Thanksgiving Day
Christmas Eve
Christmas Day
New Year's Day January Ist
Third Monday of Januaty
Third Monday of February
Last Monday in March
Last Monday of May
July 4'
First Monday of September
Fourth Thursday of November
December 24'
December 25"
Each fiscal year, all employees will get 130 hours of paid Holiday Leave. The City will observe the ten (10) days set forth above, plus thirty (30) additional hours each year. The thirty (30) additional hours will be applied to effectuate a full week of closure between Christmas and New Year's Day. m the event that less than thirty (30) hours is necessary to effectuate the fiill week of closure, the balance of the 30 hours will be observed as floating day(s). Any employee that works without regard to holidays (i.e., police communications, records, jailers, only) - holidays are observed on the actual day of the holiday, including the Closure days between Christmas and New Year's Day, Any employee that works with regard to holidays - holidays that fall onFridayor Saturday become floaters. Holidaysthat fall on Sunday are observed on Monday. Iftwo-day holidays fall on Sunday/Monday, then holidays are observedMonday/Tuesday. At the beginning of each Fiscal Year, employees will be credited with the total hours of Holiday Leave forthat fiscal year, and all Holiday 19 24 86
Leave must be utilized during the Fiscal Year. Holiday Leave used shall be deducted from the hours credited in incrennents of eight (8) or ten (10) hours for each day taken, according to the employee's work schedule. Employees who are scheduled to work on holidays will be paid their normal daily rate of pay for hours worked. The employee will have the option to: (l) take the holiday off at another date to be scheduled by the department head as work schedules permit, or (2) be paid for that holiday at hisAier straight time rate of pay, in addition to the pay he/she received for working the Holiday.

All accrued unused holiday leave that was not used by the end of each fiscal year shall be cashed out at the employee's rate of pay and returned to zero so that, on July ls' of the new bank of one hundred tl'(130) hours is all that is carried forward.

Any possible raise that was or is negotiated or implemented as part of any successor MOU shall not apply to the cash-our amount or pay rate used for the cash-out amount. City Holiday Leave is not intended to be carried over from one fiscal year to a succeeding fiscal year. Any unused Holiday Leave hours will automatically be cashed out at the end of the fiscal year at the employee's base pay rate.

SECTION 2 VACATION
A. Each employee shall earn vacation in the following manner:

One (1) to four (4) years of service: 80 hours annually Five (5) to nine (9) years of service: 120 hours annually Ten (10) or more years of service: 160 hours annually For the Risk Manager and/or the Housing Manager hired on or afl:er October 1, 2022 to on or before March 30, 2023, he/she shall receive 120 hours per year at 4.62 hours per pay period until reading ten (10) or more years of service with the City at which time he/she will be entitled to receive 160 hours per year.

Accnied but unused vacation may be carried over from year to year; however, the maximum allowable vacation accrual is three hundred and fifty (350) hours. If an employee's vacation accruaJ is at Uhe maximum level, the employee will not accrue additional vacation until the employee's vacation accrual is below the maximum level.

B. By no later than December 15 of any calendar year, an employee wishing to convert a portion of their future accumulated vacation leave to cash at the hourly rate ofbase pay then existing, shall notify the Personnel Officer in writing on a form to be supplied by the City of his/her cash out request, including the amount to be cashed out and acknowledging that the request is irrevocable. In order to be eligible to convert a portion of accumulated vacation leave to cash, an employee must maintain one hundred (100) hours of vacation leave within the employee's account balance after any distribution has been made. Said employee shall be entitled to request a cash distribution up to forth (40) hours and shall be paid the first payroll period in the following May.
20 25 87
SECTION 3 SICK LEAVE
A, Entitlement
Employees shall earn one hundred twenty (120) hours of sick leave per year prorated by pay period.

B. Sick Leave Program

1. Sick leave accrual shall remain unlimited.

2. Illness or Injury Leave Notification and Verification Procedure: In the event of an absence due to illness or injury, employeesmustnotify their Department Head (or the Deparhnent Head's designee), prior to or at the beginning of their shift starting time. Employees who are incapacitated and cannot notify their Deparhnent Head, must notifytheir Department Head at the earliest possible time and may have a spouse or otherperson contact their Department Head within the time limit specified above.

3. Employees who become ill or injured while working on the job must request approval of their Department Head to leave work. Those employees injured on the job must file a "First Report of Injury" form and receive authorization for medical treatment from their Department Head.

The notification to the Department Head must include a reason for the absence that is in accordance with current law and an estimated return date. This information will be Jogged by the department for future reference.

4. Failure to notify the Department Head, as stated in Section (3)(B)(1), will result in the forfeiture of the sick leave for the period of absence and may result in disciplinary action.

5. All absences not due to illness or injury must be requested as noted in the appropriate leave sections.

6. Verification - In the event that employees have, in his/her Department Head's sole opinion, an absenteeism problem, an excessive use of sick leave, or have a suspicious absence or group of absences, the Departtnent Head may attempt to verify the absence or proper use of sick leave by any of the following:
e.

Telephoning the employee at home (or appropriate location).

Visiting employee at home.

A sub-rosa investigation.

A medical evaluation at the City's expense, or
A medical evaluation at the employee's expense (A licensed physician must complete the medical evaluation that must include the reason for the absence and permission to return to work. 21 26 88

7. Where an excessive absenteeism pattem has been established without clear justification for said leave, a Department Head may schedule a counseling session to determine the reasons or justification for the excessive use. The Personnel Officer shall conduct the counseling session and other attendees of the session shall include the employee, a representative chosen by the employee, if any, and the department representatives. This session shall be documented by a written summary of the abuse problems and discussion. The Personnel Officer shall issue the summary and a copy dishibuted to attendees of the session and to the affected employee's Personnel file. The putpose of the counseling session is to improve the employee's attendance and/or warn the employee about the consequences of continued abuse. If there is a specific abuse that warrants discipline, or if the above counseling session does not correct abuses, then action will be taken to correct the abuse problem bough the discipline process.

8. For the Risk Manager and/or the Housing Manager hired on or after October 1, 2022, to on or before March 30, 2023, up to 24 hours of Personal Emergency Leave may be taken in any fiscal year. Such hours shall be taken out of the employee's sick leave bank.

C. Sick Leave Advances
The City will not provide advances in sick leave when an employee has depleted is/her sick leave balances.

D. Sick Leave Payoff
Sick leave accrual shall remainuiimited. An Employee hired on or before December 31, 1992, shall be eligible to cash out all accrued sick leave at the hourly rate, as defined below, of FLSA hourly pay of the Employee then existing on the date of his/her retirement from employment. For employees hired on or after January 1, 1993, and on or before June 30, 2022, the sick leave "payoff' shall be limited to 600 hours at the hourly rate, as defined below, of FLSA hourly pay of the Employee then existing on the date of his/her retirement from employment. Employees hired on or after July 1, 2022, shall not be entitled to sick leave cash-out option upon separation.

Sick leave will remain available for conversion upon retirement to CalPERS service credit as then allowed by the City's CalPERS contract. Employees whose separation is for any reason other than retirement, termination without cause, or }ay off, shall not be entitled to any sick leave cash out.

In order for an employee to qualify for this Sick Leave Payoff provision, the employee must have at least 15 years of continuous service to the City of South Gate and retire from both the City and from CalPERS.
22 27 89
The calculation of the hourly rate a retired employee shall receive under this payoff provision shall be as follows:
15-19 years of service - 50% of hourly rate base rate. 20 - 24 years of service - 75% of hourly rate base rate. 25 years or more of service - 100% of hourly rate base rate.

SECTION 4 PAY FOR JURY DUTY
A, AllemployeeswhoarecalledforJuryDutyshallbeentitledtoamaximumoften(10) days at full salary. Employees are obligated to infoim the Judge that City policy is to only pay ten (10) days of service. Should an employee, through no fault of his/her own, be required to serve beyond ten (10) days, the employee will receive full salary for Jury Duty service up to an additional twenty (20) days. Exceptions may be made to this policy by the City Manager in very unusual circumstances.

B. Attendance
A record of attendance from the Court is required and shall be tiuned in weekly for payroll putposes. Such record is available from the Court Administrator's office.

Employee on shifts other dian the normal shiff shall have off the equivalent time to actual jury service plus reasonable travel time to and from their places of residence; likewise, employees on the regular work shift, who serve on night court juries will have off the actual time of service plus reasonable travel time to and from their places of residence. Employees who serve on jury duty for partial days are expected to report to work if they are released from jury duty within a reasonable amount of time to report back to work (e.g. an empfoyee on day shift serving on South Gate Court dutywouldbeexpectedtoreturntoworkifexcusedpriortoorat4:00p.m. However, an employee serving onjuiy duty for example, in downtown Los Angeles excused at 4:00 p.m, woufd not be expected to return to work that day). If the option for call-in service is available and workable (the court is within thirty (30) minutes travel time of South Gate), an employee should request call-in status.

SECTION 5 LF,AVE WITHOUT PAY
A leave of absence withoutpay, up to ninety (90) calendar days in any calendar year, may be granted upon the approval of the Departtnent Head and the Personnel Officer. Leaves of absence in excess of ninety (90) calendar days must be approved by the Personnel Officer, provided, however, that for leaves of absence other than for illness or injury during any three (3) calendar year period shall not exceed one hundred eighty (180) calendar days. In the case of a bona fide illness or injury, a medical leave may be granted up to a maximum of one (l) year upon the approval of the Department Head and the Personnel Officer. In the event that an employee has no eligible leave to cover an absence from work, authorized or unauthoied, the Department Head and the Personnel Officer 23 28 90
may approve the short term leave with due consideration of the employee's work record (with possible counseling or discipline considerations). All applications for leaves of absence without pay shall be submitted to the Personnel Officer on a Personnel Transaction Form. The City shall have sole discretion whether or not to grant a leave of absence without pay and the City's decision is not subject to grievance and/or appeal.

A. Catastrophic Illness/Injury
If an employee is diagnosed by a qualified Doctor of Medicine to have a catastropic illness (in a state of total disability from cancer, heart attack, AIDS, etc.) or has a catastrophic injury (aninjurythat totallydisables anemployee for anextendedperiod of time), the employee may be entitled to extended health benefit coverage (Medicai, Dental, & Life ins.) provided by the City (in the same fashion normally provided to the employee). This benefit requires the approval of the Department Head and Personnel Officer, and is applicable when the employee's leave benefits are exhausted, under the following formula:

SECTION 6
Years of Full-Time City Employment
After (2) years
After 4) years
After (7) years
After (10) years

MATERNITY LEAVE
Months of Continued Coverage
3 months
6 months
9 months
12 months
The application of the maternity leave policy is subject to applicable State and Federal laws. The employee may use accrued paid or unpaid leave as appropriate SECTION 7 FAMILY MEDICAL LEAVE ACT
Pursuant to State & Federal law, the City will provide family and medical care leave to eligible employees, The following provisions set forth employees' rights and obligations withrespecttosickleave. Rightsandobligationsthatarenotspecificallysetforthbelow are set in the Department of Labor regulations implementing the Federal Family and Medical Leave Act of 1993 (FMLA), and the regulations of the California Fair Employment and Housing Commission implementing the California Family Rights Act (CFRA). Undess otherwise provided by this section, "Leave" under this provision shall mean leave pursuant to the FMLA and CFRA.

A. Amount of Leave - Eligible employees are etititled to a total of 480 hours of leave during any 12-month period. An employee's entitlement to leave for the birth or placement of a child for adoption or foster care expires 12 months after the birth or placement. The 12-month period for calculating leave entitlement will be a "rolling period" measured backward from the date leave is taken and continues with each additional leave day taken. Thus, whenever an employee requests leave, the City will look back over the previous 12-month period to determine how much leave has been used in determining how much leave a member is entitled to. 24 29 91
B. Use of Accnued Leaves While on Leave - If a member requests leave for any reasons permitted under the law, that person must exhaust all accrued leaves in connection with the leave. The exhaustion of accrued leave will run concurrently with the leave.

SECTION 8 BEREAVEMENT
The term "immediate family" is defined as the spouse, children, brother, sister, parent, parent-in-law, grandparent, or grandchild of the employee. For all DMA members except for the Risk Manager and/or the Housing Manager hired on or after October 1, 2022 to on or before March 30, 2023:

A. Within the State
The employee shall receive thirty (30) hours leave, not chargeable to any other leave, when employee travels within the state due to the death of an immediate family member. Employees who tavel wit the state may take an additional forty (40) hours of leave chargeable to sick leave.

B. Out of State
The employee shall receive forty (40) hours leave, not chargeable to any other leave, when employee travels out of state due to the death of an immediate family member.

Employees whose bereavement requires travel out of state may take an additional thirty (30) hours leave chargeable to sick leave.

For the Risk Manager and/or the Housing Manager hired on or after October 1, 2022 to on or before March 30, 2023, he/she is entitled to 40 hours of bereavement leave and up to 48 hours if the interment service is over 300 miles away.

SECTION 9 JOB RELATED INJURY OR ILLNESS
In the event of an absence due to a job related injury or illness, any employee who is entitled to disability payments under Workers' Compensatiori laws shall receive from the City the difference between such disability paytnents and his/her full salary for the period of absence up to a maximum of four hundred eighty (480) hours for any one injury or illness. This period of four hundred eighty (480) hours shall not be deducted from accumulated sick leave. However, any relapse at a later date shall not be compensable under this provision, although the same may be chargeable against accumulated, unused sick leave, if any.
25 30 92
SECTION 10 MILITARY LEAVE
Military leave is restricted to normally required active duty and does not apply to such matters as weekend drills, etc. Leaves of absence for active military training, service, or other active duty obligations shall be granted in accordance with Califomia and Federal law. Applicable laws shall govern compensation, reemployment, seniority and other rights and privileges. In order to verify the right to such leave, the employee shall cause a copy of his/her orders to and from military duty to be filed with the City's Personnel Officer. Military Leave is recorded on the employee's time sheet and approved by the Department Head. Employees are entitled to receive a maximum of eighty (80) hours of paid leave per fiscal year for annual military training. Employees are entitled to receive up to an additional thirty (30) days (300 hours) of paid military leave if they are called to active duty (other than annual training) in the National Guard or one of the branches of the U.S. Militaiy.

SECTION 11 ADMINISTRATIVE LF,AYE
A. Employees will be provided Administrative Leave of eighty (80) hours per year.

Employees may carry over unused Admiistrative Leave to the following fiscal year, but at no time shall an employee maintain a balance of Administrative Leave greater than eighty (80) hours. No administrative leave shall accrue beyond the established eighty (80) limited until the leave balance falls below that limit.

B. By no later than December 15 of any calendar year, an employee wishing to convert a portion of his/her fiiture accumulated leave to cash out at the hourly rate of base pay then existing, shall notify the Personnel Office inwriting on a form to be supplied by the City of his/her cash out request, including the amount to be cashed out and acknowledging that the request is irrevocable. Said employee shall be entitled to request a cash distribution of up to eighty (80) hours and shall bepaid the first payroll period the following May.

C. FortheRiskManagerand/ortheHousingManagerhiredonorafterOctoberl,2022, to on or before March 30, 2023, the amount of leave that may be accumulated at any one time is increased to one hundred (100) hours. However, upon reaching such maximum accumulation, the employee shall cease earning additional administrative leave hours or may choose to cash out up to 80 hours upon his/her anniversary date. 26 93

AJRTICLE V

DISCIPLINE & PROBLEM RESOLUTION
SECTION 1 DISCIPLINE PROCEDURE,
A. Causes for Discipline
The following are examples of conduct, wich shall constitute cause for disciplinary action up to, and including discharge of an employee or any candidate whose nan'ie appears on any eligibility list:

1. Willfully or cormptly making any false statements, certificates, marks, ratings, reports, failing to disclose material facts or in any manner committing or attempting any fraud.

2. Incompetence.

3. Inefficiency.

4. Neglect of duty.

5. Insubordination.

6. Dishonesty.

7. Violation of City's Drug Free Work Place Policy.

8. Intemperance.

9. Absence without authorized leave.

10. Convictionofafe[onyorconvictionofamisdemeanorinvolvingmoralturpitude.

A plea or verdict of guilty, or a conviction following a plea of nolo contendere, to a charge of a felony or any offense involving moral turpitude is deemed to be a conviction within the meaning of this Section.

11. Immorality

12. Discourteous treatment of the public or other employees, including sexual harassment.

13. Improper political activity.

14. Willful disobedience.

15. Misuse of property owned by, leased to, or under the charge of the City.

16. Violation of any of the prohibitions set forth in Government Code Sections 1090 . and Section 1126. (Related to conflict of interest activities).

17. Refusal to take and subscribe any oath or affirtnation that is required by law in connection with employment.

18. Any other failure of good behavior either during or outside of duty hours which is of such a nature that it causes discredit to the City, its officers or employees.

19. Injury to persons.

20. Waste of material.

21. Advocatingviolentoverthrowofgovernment. (GovernrnentCodeSectionl028) "It shall be sufficient cause for the dismissal of any public employee when such public employee advocates or is knowingly a member of the Comnnunist Party or of an organization which dumg the time of his/her membership he/she advocates overthrow of the Government of the United States or of any state by force or violence."

22. Any unauthorized use of City uniforms.

23. Any violation of City or departmental policies and rules.

24. Violation of City's Discrimination/Harassment Policy. 27 32 94
B. Disciplinary Action
The Personnel Officer or appropriate appointing authority may take disciplinaiy action against an employee for one or more of the causes for discipline specified herein above in 1.A. The term "disciplinary action," shall be limited iri meaning to any of the following:

1. Demotion, Discharge, or Reduction in Salary
Such disciplinary action may take the form of discharge, reduction in salary, or demotion where there is a vacancy in d'ie same classification series at a lower level within the department.
2, Suspension
An appointing authority may suspend an employee for one or more of the causes for discipline specified in these rules for a period of up to tbirty (30) days.

3. Reprimand and Warnings
A written repand or written waming is part of the disciplinary process when an action or series of actions by an employee does not warrant discipline as noted in sections B. l and B.2, however does warrmit written notification for corrective purposes. A Supervisor (or appropriate management personnel) may issue a written reprimand or written warning to an employee for one or more of the causes for discipline specified in these rules. Written reprimands and/or written watnings are not subject to any appeal or grievance.

SF,CTION 2 PROBLEM RESOLUTION
A. General Policy
It is the policy of the City to encourage employees to resolve work-related problems at the earliest possible opportunity; and for management employees to assist employees in the timely solution of problems whenever possible. For almost any work-related problem, employees are urged to talk with their immediate supervisor first to try to resolve the problem before taking further action. This section is for the purpose of specifying procedures for solving problems, providing guidelines for disciplinary and diSrniSSal actions and detailing methods by which employees may appeal actions that they believe are unjust or unwarranted.

B. Non-Disciplinary Problems

1. Compensation Problems - Employees who have any problems with their pay or benefits, should report it to their departmental office immediately upon discovery. A problem regarding a paycheck should be reported no later than ten (10) calendar days after receipt of the paycheck. If the action requires Personnel Office adjustments, the department representative will contact the Personnel Office to resolve the problem.

2. Workers' Compensation Problems - Employees who feel they are not receiving the workers' compensation benefits for which they qualify, should contact the Personnel Department, which will contact the City's workers' compensation administrator. Many questions can be cleared up with a telephone call. 28 33 95

3. Insurance, Benefits or Retirement Problems - Employees who have a problem regarding any of the City's insurance or benefits or want information regarding retirement, should contact the Personnel Office.

4. Other Non-Disciplinary Work Related Problems - Any problem not otherwise covered in this section that an employee is unable to resolve through informal means may be submitted for resolution through the grievance procedure.

5. Interpretation of Memorandum of Understanding Provisions Employees who have a problem that relates to a provision in or an interpretation of this Memorandum of Understanding, should contact the Association. If the problem is not resolved through informal discussions, the Association may file a grievance.

C. General Definitions

1. Working Days - The "working day" shall be considered for administrative convenience to be Monday through Thursday, from 7:00 a.m. to 6:00 p.m., excluding Holidays.

2. Time Limits - The failure to submit an appeal within the time limits specified in the various steps provided above shall result in the settlement of the discipline appeal in accordance with the last answer or response given that shall be final and binding.

3. Procedural Extensions - The procedural times set forth herein are absolutely binding upon both parties and will not be considered waived, unless said waiver is in writing and agreed to by both parties.

SEC'nON 3 GRIEVANCE PROCEDURE
A. Scope
This Grievance Procedure shall be the exclusive means for resolving all grievances as that term is defined hereinabove except that the following disputes shall not be subject to the provisions thereof:

1. Any dispute arising out of or in connection with meeting and conferring pursuant to Resolution No. 3674.

2. Any dispute arising in or from, or involving a strike, work stoppage or cessation of work in any form by employees of the City.

B. Procedure

STEP I
A grievance may be initiated in this Step by an employee or group of employees by presenting the grievance orally to the immediate supervisor of the employee or employees involved. The grievance must be submitted to said supervisor within fifteen (15) working days following the occurrence of the event upon wich the grievance is based. The supervisor will give an oral answer to the employee or employees involved within no more than fifteen (15) working days after the grievance was orally presented.
29 34 96
STEP 2
If the grievance remains unresolved after Step 1, the grievance may be moved to Step 2 by submitting the same to the Department Head. The grievance shall be submitted in writing on a form supplied by the City. The grievance must be submitted in Step 2 no later than five (5) working days after the answer in Step 1 has been received or the time for such answer has expired. Wit no more than five (5) working days after receipt of grievance, a meeting will be held with the Department Head and the employee or employees involved. A representative of the employee or employees may be present if requested. Grievances subtnitted in Step 2 shall be answered in writing within five (5) working days of said meeting.

STEP 3

1. If the grievance remains unresolved after Step 2, the grievance shall be moved immediately by the Department Head or the employee or employees involved to Step 3 by submitting a copy of the written form provided in Step 2 to the Personnel Officer.

2. Within no more than five (5) working days after receipt of the written grievance, a meeting shall be scheduled between the Personnel Officer and the employee or employees involved. A representative of the employee or employees may be present if requested.

3. Grievances involving a dispute between the City and the Association may be initiated in this Step by either party in said written form within five (5) working days of the occurrence of the event giving rise to the giievance. In that event, a meeting shall be scheduled within five (5) working days of receipt of said written grievance between no more than two (2) designated representatives of the City and two (2) ofthe Association. In addition, the employee or employees involved, if any, the Department Head shall be entitled to be present at the meeting.

4. Grievances submitted in Step 3 shall be answered by the Personnel Officer in writing witMn five (5) working days of said meeting(s).

STEP 4
If the dispute remains unresolved after Step 3, the aggrieved paity can request final binding Arbitration under the rules of the American Arbitration Association. Each party will pay their own legal costs. The City and the employee will share the costs of the American Arbitration Association equally.

General Definitions

1. Employee Representative - The employee "representative" referred to in Steps 2 and 3 above may be an employee of the City.

2. Grievance Defined - Grievance means any dispute or difference between the City and any employee or group of employees, concerning the interpretation or application of any written City ordinance, resolution, rule, policy, practice or procedure governing the wages, hours and working conditions of City employees. The term "grievance" also includes any dispute or difference between the City and the Association concerning the interpretation or application of any existing memorandum of understanding between the City and the Association.
30 35 97

3. Procedural Extensions - The procedural times set forth herein are absolutely binding upon both parties and will not be considered vtaxvcd, unless said waiver is in writing and agreed to by both parties.

4. Time Limits - The failure to submit a grievance within the time limits specified in the various steps provided above shall result in the settlement ofthe grievance in accordance with the last answer or response given which shall be final and binding,

5. Working Days - The "working day" shall be considered for administrative convenience to be Monday though Thursday, from 7:00 a.m. to 6:00 p.m., excluding Holidays.
31 36 98
ARTICLE Vl

IMPLEMENTATION OF MEMORANDUM OF UNDERSTANDING
SECTION l WAGE RIGHTS
A. The Association promises and warrants, that upon acceptance of the aforementioned recornrnendations of the City's Representative's Designee by the City Council, its members will provide service to the City upon the teims and conditions herein stated.

B. Subject to the provisions of this Agreement, the parties hereto do hereby agree and acknowledge that the City shall retain all its usual rights and responsibilities including, but not Iimited to, those set forth in Section 5 of said Resolution No. 4508.

C. It is understood and agreed that tis Memorandum of Understanding is subject to all present and future applicable Federal or State wage and salary control laws and regulations as well as all other applicable Federal and State laws and regulations. If any part of this Memorandiun is in conflict or inconsistent with such applicable provisions of Federal or State laws or regulations, or is otherwise held to be invalid or unenforceable by any tribunal of competent jurisdiction, such pait or provision shall be suspended and superseded by such applicable laws or regulations, and the remainder of this Memorandum of Understanding shall remain in full force and effect.

SECTION 2 REPOENERS
The partes do specifically agree to reopen the meet and confer process during the term of this MOU, but no sooner than June 1, 2024, only with regards to the following issues.

These reopeners are not contingent upon the execution of any successor MOU and no successor MOU is contingent upon agreement on these reopeners. The City reserves the right to introduce changes to any other part of the MOU in an effort to come to an agreement on the below stated topic(s) to reopen the meet and confer process.

1. Annual Sick Leave Redemption Program
32 37 99
Memorandum of Understanding between the City of South Gate and the South Gate Division Management Association
-Signature page-
The City and the Association acknowledge that this Agreement is entered into the 2024, and is subject to it being executed by authorized representatives. day of
CITY OF SOUTH GATE:

Gil Hurtado, Mayor
Date:

ATTEST:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

Raul F. Salinas, City Attomey
Date:
s"'-(,= -Z 4
33 38100
Item No, 5

CITYMANAGER'S OFFICE
MAY 0 8 202%
'g: a-7rv-a
City of South Gate

CITY COUNCIL

ACENJDA JBTLL
Department Director:

For the Regular Meeting of: May 14, 2024
ent: Public Works
City Manager:
o Cervante R Houston
't'oQSd
SUBJECT: AGREEMENT WITH WILLDAN ENGINEERING FOR CONSTRUCTION

MANAGEMENT AND INSPECTION SERVICES FOR THE AUTOMATIC METER READING UPGRADE, PHASE 3, CITY PROJECT N0. 649-WTR PURPOSE: To approve a professional services agreement with Willdan Engineering ("Willdan") to perform construction management and inspection services for the Automatic Meter Reading Upgrade, Phase 3, City Project No. 649-WTR ("AMR Project") which is now in the construction phase.

RECOMMENDED ACTIONS: The City Council will consider:
a. Approving an Agreement with Willdan Engineering to perform construction management and inspection services on the Automatic Meter Reading Upgrade, Phase 3, City Project No. 649-WTR, in an amount not-to-exceed $131,716;
b. Authorizing the City Manager to approve and execute amendments to the Agreement up to a cumulative amount of $50,000; and
c. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney.

FISCAL IMPACT: There is no impact to the General Fund. The proposed Agreement is in the amount of $131,716, which will be funded with Water Funds budgeted in the Fiscal Year 2023/24 Capital Improvement Program.

ANALYSIS: On January 23, 2024, the City Council awarded a construction contract for the construction of the AMR Project. Construction is scheduled to start in June 2024 and be completed in five (5) months. Construction requires over 1,000 hours of effort to manage and inspect. The Department of Public Works, Engineering Division does not have the staffing resources to undertake such an effort. Therefore, a construction management and inspection services consultant is recommended to manage construction. Staff issued a Request for Proposal ("RFP") to procure a contract competitively. The selection cornrnittee selected Willdan as the highest ranked consultant and is being recommended for the contract.

BACKGROUND: The City's water system provides drinking water service to approximately 90 percent of the properties in the City. The water system is equipped with over 14,200 water meters which serve to record water consumption to prepare water bills for customers. The City is in the process of upgrading the water meters in phases to automate meter reading instead of 1 101
having them read manually. The AMR Project is the 3rd phase of this effort. To date, a total of 2,020 automatic meters have been installed for residential properties, and an additional 410 for commercial and multi-family properties. Phase 3 will replace an additional 1,725 meters serving residential customers in the northwest area of the City.

On December 21, 2023, an RFP was issued to four (4) qualified consultants and three (3) proposals were received as surnrnarized below.

Consultant Fee Proposal
Willdan $131,716
KOA $142,485
TYLin $164,640
A selection cornrnittee consisting of the City's Assistant Civil Engineer and Principal Civil Engineer - Water Resources Section Manager, evaluated the proposals. All three (3) consultants met the qualifications criteria which included construction manager, inspector experience, and labor compliance. The committee interviewed all consultants. Willdan received the highest ranking and is recommended for the contract. Willdan provides the following benefits to the project:
* CompetitiveFees-Thefeeproposalis$l31,716andisacompetitiveamountgiventhe first RFP received the lowest fee proposal of $250,292. The RFP was reissued due to the high quotes.
@ Experienced Construction Manager - The Construction Manager has over 20 years of experience.
* Qualified Staff - Willdan offers a qualified team with experience, knowledge, and professionalism for the AMR Project. Willdan has licensed engineers, construction and program managers, inspectors, office engineers, technicians, and administrative support to manage the AMR Project.
* Qualified Team - Willdan's in-house team will provide special inspections, if necessary, testing and labor compliance. The inspector and the alternate inspector have over 30 years of experience in the water industry, which provides a unique ability to ensure the AMR Project is constructed in accordance with the plans and specifications. * Similar Projects - Willdan's core specialties are construction management and inspection of Public Works projects. Willdan has completed numerous projects of similar scope. Similar projects have been successfully completed in the cities of Downey and Long Beach.

The scope of services in the proposed Agreement consists of construction management, construction inspection, labor compliance, and compliance with local and state requirements.

ATTACHMENTS: A. Proposed Agreement (including Exhibit A) B. Location Map
DD:lc
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Attachment A

AGREEMENT FOR PROFESSIONAL SERVICES FOR CONSTRUCTION

MANAGEMENT AND INSPECTION SERVICES FOR THE
AUTOMATIC WATER METER (AMR) UPGRADE - PHASE 3, CITY PROJECT NO. 649-WTR BETWEEN THE CITY OF SOUTH GATE AND

WILLDAN ENGINEERING
This Agreement for Professional Services for Construction Management and Inspection Services ("Agreement") is made and entered into on May 14, 2024, by and between the City of South Gate, a municipal corporation ("City"), and Willdan Engineering (Willdan), a California corporation ("Consultant"). City and Consultant are sometimes hereinafter individually referred to as a "Party" and collectively as "Parties."

RF,CIT ALS
WHEREAS, City desires to retain a qualified provider for certain services relating to Construction Management and Inspection Services for the Automatic Water Meter ("AMR") Upgrade Phase 3, City Project No. 649-WTR;
WHEREAS, Consultant warrants to City that it has the requisite skills, knowledge, qualifications, manpower and expertise to perform properly and timely the Professional Services under this Agreement; and
WHEREAS, based on such representation, City desires to contract with Consultant to perform the services as described in the Scope of Services attached hereto as Exhibit "A" of this Agreement.

NOW, THEREFOR, the Parties hereby agree as follows:

1. SCOPE OF SERVICES. 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.

2. COMPENSATION FOR SERVICES. The total amount of compensation for this Agreement shall not exceed the sum of One Hundred Thirty-One Thousand Seven Hundred Sixteen Dollars ($131,716) as described in Consultant's proposal attached hereto as Exhibit "A." City shall pay Consultant for its professional services rendered and costs incurred pursuant to this Agreement. No additional compensation shall be paid for any other expenses incurred, unless first approved in writing by the Assistant City Manager/Director of Public Works or his/her designee.

2.1 Consultant shall be required to attend meetings at City Hall as necessary in the delivery of the projects. Travel time between Consultant's office and City Hall shall not be billable. Consultant may request an exemption on a case-by-case basis, which shall be subject to City approval.
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2.2 Consultant shall be paid in accordance with the schedule included in Consultant's proposal attached hereto as Exhibit "A." City shall pay Consultant within thirty (30) days of receipt of the invoice.

2.3 No payment made hereunder by City to Consultant, other than the final payment, shall be construed as an acceptance by City of any work or materials, nor as evidence of satisfactory performance by Consultant of its obligations under this Agreement.

3. TERM OF AGREEMENT. This Agreement is effective as of March 26, 2024 and will remain in effect for a period of one (1) year from said date or until project completion, unless otherwise expressly extended and agreed to by both Parties in writing, or terminated by either Party as provided herein.

4. CITY AGENT. The ASsistant City Manager/Director of Public Works ("Director"), or his/her designee, for the purposes of this Agreement, is the agent for the City. Whenever approval or authorization is required, Consultant understands that the Director, or his/her designee, has the authority to provide that approval or authorization.

5. CONFLICT OF INTEREST. Consultant represents that it presently has no interest and shall not acquire any interest, direct or indirect, in any real property located in the City which may be affected by the services to be performed by Consultant under this Agreement.

Consultant further represents that in performance of this Agreement, no person having any such interest shall be employed by it. Within ten (10) days, Consultant agrees that it will immediately noti:ty City of any other conflict of interest that may exist or develop during the term of this Agreement.

5.I Consultant represents that no City employee or official has a material financial interest in Consultant's business. During the term of this Agreement and/or as a result of being awarded this contract, Consultant shall not offer, encourage or accept any financial interest in Consultant's business or in this Agreement by any City employee or official.

6. GENERAL TERMS AND CONDITIONS.

6.1 Termination for Convenience. City may terminate this Agreement at any time without cause by giving fifteen (15) days written notice to Consultant of such termination and specifying the effective date thereof. In that event, all finished or unfinished documents and other materials shall, at the option of City, become its property. If this Agreement is terminated by City as provided herein, Consultant will be paid the total amount of its costs as of the termination date. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in this Agreement.
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6.2 Termination for Cause.
6,2,1 City may, by written notice to Consultant, terminate the whole or any part of this Agreement in any of the following circumstances:
a. If Consultant fails to perform the services required by this Agreement within the time specified herein or any authorized extension thereof, or b. If Consultant fails to perform the services called for by this Agreement or so fails to make progress as to endanger performance of this Agreement in accordance with its terms, and in either of these circumstances does not correct such failure withing a period of ten (10) days (or such longer period as City may authorize in writing) after receipt of notice from City specifying such failure.

6.2.2 In the event City terminates this Agreement in whole or in part as provided above in Subsection 6.2.1, City may procure, upon such terms and in such manner as it may deem appropriate, services similar to those terminated.

6.2.3 If this Agreement is terminated as provided above in Subsection 6.2.1, City may require Consultant to provide all finished or unfinished documents, data, studies, drawings, maps, photographs, reports, films, charts, sketches, computations, surveys, models, or other similar documentation prepared by Consultant. Upon such termination, Consultant shall be paid an amount equal to the value of the work performed. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents whether delivered to City or in possession of Consultant, and to authorized reimbursement expenses.

6.2.4 If, after notice of termination of the Agreement under the provisions of Subsection 6.2.1 above, it is determined, for any reason, that Consultant was not in default, or that the default was excusable, then the rights and obligations of the Parties shall be the same as if the notice of termination had been issued pursuant to Subsection 6. 1. above.

6.3 Non-Assignability. Consultant shall not assign or transfer any interest in this Agreement without the express prior written consent of City.

6.4 Non-Discrimination.

6.4.1 Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of race, creed, gender, gender identity (including gender expression), color, religion, ancestry, sexual orientation, 5116863.1-L235.0
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national origin, disability, age, marital status, family/parental status, or veteran/military status, in the performance of its services and duties pursuant to this Agreement and will comply with all applicable laws, ordinances and codes of the Federal, State, and County and the City governments. Consultant will take affirmative action to ensure that subcontractors and applicants are employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin, disability, or age.

Consultant will take affirmative action to ensure that all employment practices, including those of any subcontractors retained by Consultant to perform services under this Agreement, are free from such discrimination. Such employment practices include, but are limited to: hiring, upgrading, demotion, transfer, recruitment, recruitment advertising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship.
6,4.2 The provisions of Subsection 6.4.1 above shall be included in all solicitations or advertisements placed by or on behalf of Consultant for personnel to perform any services under this Agreement. City shall have access to all documents, data, and records of Consultant and its subcontractors for purposes of determining compliance with the equal employment opportunity and non- discrimination provisions of this Section, and all applicable provisions of Executive Order No. 11246 (relating to federal restrictions against discriminatory practices) is available for review and on file with the City Clerk's Office.

6.5 Insurance. Consultant shall submit to City, certificates indicating compliance with the following minimum insurance requirements no less than one (1) day prior to beginning of performance under this Agreement:

6.5.1 Workers Compensation Insurance as required by law. Consultant shall require all subcontractors similarly to provide such workers' compensation insurance for their respective employees.
6,5.2 Comprehensive general and automobile liability insurance protecting Consultant in amounts not less than $1,000,000 for personal injury to any one person, $1,000,000 for injuries arising out of one occurrence, and $500,000 for property damages or a combined single limit of $1,000,000, with an aggregate of $2,000,000. Each such policy of insurance shall:
a. Be issued by a financially responsible insurance company or companies admitted and authorized to do business in the State of California or which is approved in writing by City.
b. Name and list as additional insured the City, its officers and employees. 5116863.1-L235.0
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c. Specify its acts as primary insurance.
d. Contain a clause substantially in the following words: "It is hereby understood and agreed that this policy shall not be canceled except upon thirty (30) days prior written notice to City of such cancellation or material change."
e. Cover the operations of Consultant pursuant to the terms of this Agreement.

6.6 Indemnification. Consultant agrees to indemnify, defend and hold harmless City and/or any other City agency, including other employees, officers and representatives, for/from any and all claims or actions of any kind asserted against City and/or any other City agency arising out of Consultant's (including Consultant's employees, representatives, products and subcontractors) negligent performance under this Agreement, excepting only such claims or actions which may arise out of sole or active negligence of City and/or any other City agency, or any third parties not acting on behalf of, at the direction of, or under the control of Consultant.

6.7 Compliance with Applicable Law. Consultant and City shall comply with all applicable laws, ordinances, and codes of the Federal, State, County and City governments, without regard to conflict of law principles.

6.8 Independent Contractor. This Agreement is by and between City and Consultant and is not intended, nor shall it be construed, to create the relationship of agency, servant, employee, partnership, joint venture, or association, as between City and Consultant.

6.8.I Consultant shall be an independent contractor and shall have no power to incur any debt or obligation for or on behalf of City. Neither City nor any of its officers or employees shall have any control over the conduct of Consultant, or any of Consultant's employees, except as herein set forth, and Consultant expressly warrants not to, at any time or in any manner, represent that it, or any of its agents, servants or employees are in any manner employees of City, it being distinctly understood that Consultant is and shall at all times remain to City a wholly independent contractor and Consultant's obligations to City are solely such as are prescribed by this Agreement.

6.8.2 Indemnification of CalPERS Determination - In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under this Agreement claims or is determined by a court of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as, for the 5116863.1-L235.0
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payment of any penalties and interest on such contributions which would otherwise be the responsibility of City.

6.8.3 Business License Required. According to Title 2.08.40 of the South Gate Municipal Code, a business license will be required prior to doing business within the City, even if the business is located outside of the City. Verification of a valid South Gate business license will be required prior to start of work and any fees associated with the acquisition or maintenance of such business license shall be the sole responsibility of Consultant.

6.9 Consultant's Personnel.

6.9.1 All services required under the Agreement will be performed by Consultant, or under Consultant's direct supervision, and all personnel shall possess the qualifications, permits and licenses required by State and local law to perform such services, including, without limitation, a City of South Gate business license as required by the South Gate Municipal Code.

6.9.2 Consultant shall be solely responsible for the satisfactory work performance of all personnel engaged in performing services required by this Agreement, and compliance with all reasonable performance standards established by City.

6.9.3 Consultant shall be responsible for payment of all employees' and subcontractors' wages and benefits and shall comply with all requirements pertaining to employer's liability, workers' compensation, unemployment insurance and Social Security.

6.9.4 Consultant shall indemnify and hold harmless City and all other related entities, officers, employees and representatives from any liability, damages, claims, costs, and expenses of any nature arising from alleged violations of personnel practices or of any acts of omissions by Consultant in connection with the work performed arising from this Agreement.

6.10 Copyright. No reports, maps or other documents produced in whole or in part under this Agreement shall be the subject of an application for copyright by or on behalf of Consultant.

6.11 Legal Construction.

6.11.1 This Agreement is made and entered into in the State of California and shall in all respects be interpreted, enforced, and governed under the laws of the State of California without regard to conflict of law principles.

6.11.2 This Agreement shall be construed without regard to the identity of the persons 5116863.1-L235.0
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who dra:tted its various provisions. Each and every provision of this Agreement shall be construed as though each of the parties participated equally in the dra'Jting of same, and any rule of construction that a document is to be construed against the drafting party shall not be applicable to this Agreement.

6.11.3. The article and section, captions and headings herein have been inserted for convenience only and shall not be considered or referred to in resolving questions of interpretation or construction.

6.11.4. Whenever in this Agreement the context may so require, the masculine gender shall be deemed to refer to and include the feminine and neuter, and the singular shall refer to and include the plural.

6.12 Counterparts. This Agreement may be executed in counterparts and, as so executed, shall constitute an agreement which shall be binding upon all Parties hereto.

6.13 Final Payment Acceptance Constitutes Release. The acceptance by Consultant of the final payment made under this Agreement shall operate as and be a release of City from all claims and liabilities for compensation to Consultant for anything done, furnished, or relating to Consultant's work or services. Acceptance of payment shall be any negotiation of City's check or the failure to make a written extra compensation claim within ten (10) calendar days of the receipt of that check. However, approval or payment by City shall not constitute, nor be deemed, a release of the responsibility and liability of Consultant, its employees, sub-consultants and agents for the accuracy and competency of the information provided and/or work performed; nor shall such approval or payment be deemed to be an assumption of such responsibility or liability by City for any defect or error in the work prepared by Consultant, its employees, sub- consultants and agents.

6.14 Corrections. In addition to the above indemnification obligations, Consultant shall correct, at its expense, all errors in the work which may be disclosed during City's review of Consultant's report or plans. Should Consultant fail to make such correction in a reasonably, timely manner, such correction shall be made by City, and the cost thereof shall be charged to Consultant.

6.15 Files. All files of Consultant pertaining to City shall be and remain the property of City. Consultant will control the physical location of such files during the term of this Agreement and shall be entitled to retain copies of such files upon termination of this Agreement.

6.16 Waiver; Remedies Cumulative. Failure by a Party to insist upon the performance of any of the provisions of this Agreement by the other party, irrespective of the length of time for which such failure continues, shall not constitute a waiver of such Party's right to demand compliance by such other Party in the future. No waiver by a Party of a 5116863.1-L235.0
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default or breach of the other party shall be effective or binding upon such a Party unless made in writing by such Party, and no such waiver shall be implied from any omissions by a Party to take any action with respect to such default or breach. No express written waiver of a specified default or breach shall affect any other default or breach, or cover any other period of time, other than any default or breach and/or period of time specified. All of the remedies permitted or available to a Party under this Agreement, or at law or in equity, shall be cumulative and alternative, and invocation of any such right or remedy shall not constitute a waiver or election of remedies with respect to any other permitted or available right of remedy.

6.17 Mitigation of Damages. In all such situations arising out of this Agreement, the Parties shall attempt to avoid and minimize the damages resulting from the conduct of the other Party.

6.18 Severability. If any provision in this Agreement is held by a court of competent jurisdiction to be invalid, void, or unenforceable, the remaining provisions will nevertheless continue in full force without being impaired or invalidated in any way.

6.19 Attorneys' Fees. The Parties hereto acknowledge and agree that each will bear his or its own costs, expenses and attorneys' fees arising out of and/or connected with the negotiation, drafting and execution of the Agreement, and all matters arising out of or connected therewith except that, in the event any action is brought by any Party hereto to enforce this Agreement, the prevailing Party in such action shall be entitled to reasonable attorneys' fees and costs in addition to all other relief to which that Party or those Parties may be entitled.

6.20 Entire Agreement and Amendments. This Agreement constitutes the whole agreement between City and Consultant, and neither party has made any representations to the other except as expressly contained herein. Neither party, in executing or performing this Agreement, is relying upon any statement or information not contained in this Agreement. Any amendments, changes or modifications to this Agreement must be made in writing and appropriately executed by both City and Consultant.

6.21 Notices. Any notice required to be given hereunder shall be deemed to have been given by email transmission with confirmation of delivery and depositing said notice in the United States mail, postage prepaid, and addressed as follows:
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TO CITY:

City of South Gate
Arturo Cervantes, P.E.

Assistant City Manager/Director of PW
Public Works Department
8650 California Avenue
South Gate, CA 90280
E-mail: acervatnes@,sogate.org
Telephone No.: (323) 563-9567
Agreement for Professional Services
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WITH COURTESY COPY TO:

City of South Gate
Yodit Glaze
City Clerk
City Clerk's Office
8650 California Avenue
South Gate, CA 90280
E-mail: yglaze(,sogate.org
Telephone No. (323) 563-9511
TO CONSULTANT:

Willdan Engineering
Chris Baca
Director of Construction Management and Inspection Services 13191 Crossroads Parkway North, Suite 405
Industry, CA 91746
E-mail: cbaca@,willdan.com

6.22 Warranty of Authorized Signatories. Each of the signatories hereto warrants and represents that he or she is competent and authorized to enter into this Agreement on behalf of the Party for whom he or she purports to sign.

6.23 Consultation with Attorney. Consultant warrants and represents that it has consulted with an attorney or la'iowingly and voluntarily decided to forgo such a consultation.

6.24 Interpretation Against Drafting Party. City and Consultant agree that they have cooperated in the review and drafting of this agreement. Accordingly, in the event of any ambiguity, neither Party may claim that the interpretation of this Agreement shall be construed against either Party solely because that Party drafted all or a portion of this Agreement, or the clause at issue.

7. CALIFORNIA LEVINE ACT DISCLOSURE STATEMENT. In accordance with California SB1439 extended requirements under Governrnent Code Section 84308, also known as the "Levine Act," a disclosure must be filed of political contributions totaling more than two hundred fi:tty dollars ($250) within the previous twelve (12) months, and for three (3) months following the date a final decision is made to award an agreement. Therefore, the City requires that Consultant fill out the California Levine Act Disclosure Statement form available on the City website and submit it to the City Clerk's Office prior to the approval of this Agreement.

8. EFFECTIVE DATE. The effective date of this Agreement is March 26, 2024, and will remain in effect through and until project completion, unless otherwise terminated in accordance with the terms of this Agreement.
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IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed and attested by their respective officers thereiu'ito duly authorized.

CITY OF SOUTH GATE:

B7:

Gil Hurtado, Mayor
Dated:

ATTEST:

B7:

Yodit Glaze, City Clerk
(SEAL)
APPROVED AS TO FORM:

By: '".unaETttS!-
WILLDAN ENGINEERING:

BY:

Chris Baca, Director of Construction
Management and Inspection Services
Dated:
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EXHIBITA

W'WILLDAN
March 29, 2024
Derwin Dy, Principal Civil Engineer
City of South Gate
8650 California Avenue
South Gate, CA 90280
Subject: Construction Marmgement ond Inspection Services for The Automatic Meter Reading (AMR) Upgrade Phase 3, City Project No. 649-WTR
Willdan Engineering is pleased to submit our fee proposal as outlined and presented in our technical proposal. If you have any questions, please contact me by phone (562) 364-8198, cell (310) 502-6335 or by e-mail at [email protected].

Respectfully submitted,

WILLDAN ENGINEERING
Chris Baca, RCI, CESSWI
Drii t itii ti/ t .iii.u tiz tu>+i flihi.iutB l'li'i)r +mG /il:.1)t't ricn Siai lil( t 910005/WW.00.40/P24-09626202
/3
se;,gos.620o i 800.499.4484 i fax: 5e2.695.2120 I 131G11 Crossroads Parkway North, Suite 405, Industry, Ca!lfornla G11746-3443 i www.wllldan.com 113
City of South Gate

FEE PROPOSAL
FOR
THE AUTOMATIC METER READING (AMR) UPGRADE-PHASE 3, CITY PROJECT N0. 649-WTR 3/29/2024
TASK / CLASSIFICATION Construction
Manager
Public Works
Inspector
Labor
Compliance
00(itional)
Total Hours TOT AL COST =Qpllonal rag
t 'i *iaa'a'a'-"i i_.i'*++aaa '-'-' - 'es-r'ua';.Q!lffi..Qlla+..:. .+:' .-=P"Y-U#.a;'- I" -Th=.-"flKMWA = - % Th!*tie 'ffi, . flfl.5-=.- PRECON8TRUCT10N SERVICE8 24 8 4 36 $5,792 '$1),348
CONSTRUCTION MANAGEMENT 160 56 216 ti30,560.00 !38,3- 14.Q€+ CONSTRUCTION OBSERV ATION 580 580 5i87,580.00 l fl17,5€10.00 PROJECT ClOSE-OUT 24 8 32 $6.792.00 l
i5,792j)(+
TOTALS 208 sge . 60 864 Si:is,gsam 4134,7_1(1,00
' Willdan's Tee Is based on the anlicipaled 70 working day consiruction conlracl and 10 assumed non-working days due to weather. Additional services needed beyond this duration will be provided on a )ime-and-material basis at Wllldanas standard rates. a Inspector hours are estimated and will be upon liie Contractor's final phasing and implementation. a Overlime inspeciion services are nol Included. but will be billed at 1.5 11mes normal hourly rate if required and may requite adjustment to the approved budget. Work peformed by support staffwith iilles not explicilly listed herein will be charged in accordance with Willdan's current 2023-2024 standard hourly rates.

Compre.henslve. Innovative, Trusted. €
/4 114
Attachment B
LiJ
J
0 0
LiJ
J
J gb 'h !'a'i '.N4' e'J'a
115
CITYMANA€IER'S OFFICE Item No. 6
MAY 0 8 2024
gl:pa A.tVi
City of South Gate

CITY COUNCIL
AeENIDA BULL
For the Regular Meeting of May 14, 2024
Department Director:

Originating Department:

Darren Arakawa Rob Ho
F< F-an %g
SUBJECT: AGREEMENT WITH ALL CITY MANAGEMENT SERVICES, INC., FOR

CROSSING GUARD SERVICES
PURPOSE: To enter into an agreement with All City Management Services, Inc. ("ACMS"), for Crossing Guard Services to continue to provide for the safety of students, parents, and staff as they walk to and from school, and to ensure that designated intersections are controlled and monitored during peak periods of pedestrian presence.

RECOMMENDED ACTION: The City Council will consider:
a. Approving an Agreement with All City Management Services, Inc., for crossing guard services for a one (1) year term effective July 1, 2024 - June 30, 2025; and b. Authorizing the Mayor to execute the Agreement in a form acceptable to the City Attorney.

FISCAL IMPACT: ACMS has increased rates commensurate with the cost of living and rising operational costs. These price increases are reflected in an increase of $29.21 per hour in FY 2023- 2024 to $33.94 per hour in FY 2024-2025. Funds in the amount of $616,214.16 were initially budgeted from the Crossing Guard Program for crossing guard services during the FY 2023-2024 budget process; however, the total annual projected cost for services for the proposed Agreement is $712,333.00, an increase of $96,118. Reflected in the increased cost is the addition of two crossing guard locations for Willow Elementary and the hourly rate increase.

BACKGROUND: Since August of 1994, the City has contracted with All City Management Services, Inc., to provide crossing guard services throughout the City. The decision to contract this operation was based on cost savings and increased operational services. The responsibility of adequately staffing school crossing locations, if a crossing guard was unable to fill his/her shift, was that of the Police Department and a sworn police officer would often be pulled off the streets to provide coverage. The use of this third-party service transfers the staffing responsibility and the department has been very satisfied with the services provided by ACMS.

Although the South Gate Police Department has been satisfied with the service provided by ACMS, the opportunity to evaluate similar services and pricing from another contractor was recently explored. Staff conducted research and found that ACMS is essentially the only vendor 1 116
in the area that can provide services on the scale required by the City of South Gate. ACMS has provided the City with outstanding service for over 20 years, as well as being immensely responsive to the City's needs and requests.

ATTACHMENTS: A. ProposedAgreement
B. Client Worksheet FY 2024/25
2 117

ATTACHMENT A

AGREEMENT FOR PROFESSIONAL SERVICES FOR CROSSING

GUARD SERVICES BETWEEN THE CITY OF SOUTH GATE AND ALL CITY MANAGEMENT SERVICES, INC.

This Agreement for Professional Services for Crossing Guard Services ("Agreement") is made and entered into on March 28, 2024, by and between the City of South Gate, a municipal cotaporation ("City"), and All City Management Services, Inc., a California corporation ("Consultant"). City and Consultant are sometimes hereinatter individually referred to as a "Party" and collectively as "Paities."

RECIT ALS
WHEREAS, City desires to retain a qualified provider for ceitain services relating to crossing guard services; and
WHEREAS, Consultant warrants to City that it has the requisite skills, knowledge, qualifications, manpower and expertise to perform properly and timely the Professional Services under this Agreement; and
WHEREAS, based on such representation, City desires to contract with Consultant to perform the services as described in the Scope of Services attached hereto as Exhibit "A" of this Agreement.

NOW, THEREFORE, the Parties hereby agree as follows:

1. SCOPE OF SERVICES. City hereby engages Consultant, and Consultant accepts such engagement, to perfoim 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. In the event of a conflict between Exhibit "A" and this Agreement, the terms of this Agreement shall prevail.

2. COMPENSATION FOR SERVICES. The total amount of compensation for t's Agreement shall not exceed the sum of Seven Hundred Twelve Thousand, Three Hundred and Thirty-three Dollars ($712,333.00) as described in Consultant's proposal attached hereto as Exhibit "A." City shall pay Consultant for its professional services rendered and costs incurred pursuant to this Agreement. No additional compensation shall be paid for any other expenses incurred, unless first approved in writing by the Chief of Police or his/her designee.

2.2 Consultant shall be paid in accordance with the schedule included in Consultant's proposal attached hereto as Exhibit "A." City shall pay Consultant within thirty (30) 5116863]-L235.0 (Fonn Rev. 9/8/2 l)
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days of receipt of the invoice.

2.3 No payment made hereunder by City to Consultant, other than the final payment, shall be construed as an acceptance by City of any work or materials, nor as evidence of satisfactory perfoimance by Consultant of its obligations under this Agreement.

3. TERM OF AGREEMENT. This Agreement is effective as of July 1, 2024, and will remain in effect for a period of one-year, through and including June 30, 2025, unless otherwise expressly extended and agreed to by both Parties in writing, or terminated by either Party as provided herein.

4. CITY AGENT. The Chief of Police ("Director"), or his/her designee, for the purposes of this Agreement, is the agent for City. Whenever approval or authorization is required, Consultant understands that the Director, or his/her designee, has the authority to provide that approval or authorization.

5. CONFLICT OF INTEREST. Consultant represents that it presently has no interest and shall not acquire any interest, direct or indirect, in any real propeity located in the City which may be affected by the services to be performed by Consultant under this Agreement.

Consultant fuither represents that in performance of this Agreement, no person having any such interest shall be employed by it. Within ten (10) days, Consultant agrees that it will immediately notify City of any other conflict of interest that may exist or develop during the tetm of this Agreement.

5.1 Consultant represents that no City employee or official has a material financial interest in Consultant's business. During the term of this Agreement and/or as a result of being awarded this contract, Consultant shall not offer, encourage, or accept any financial interest in Consultant's business or in this Agreement by any City employee or official.

6. GENERAL TERMS AND CONDITIONS.

6.1 Termination for Convenience. City may terminate this Agreement at any time without cause by giving thirty (30) days written notice to Consultant of such termination and specifying the effective date thereof. In that event, all finished or unfinished documents and other materials shall, at the option of City, become its property. If this Agreement is terminated by City as provided herein, Consultant will be paid the total amount of its costs as of the tertnination date. In no event shall the amount payable upon termination exceed the total maximum compensation provided for in tis Agreement.

6.2 Termination for Cause.

6.2.1 City may, by written notice to Consultant, terminate the whole or any part of this Agreement in any of the following circumstances:
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a. If Consultant fails to perform the services required by this Agreement within the time specified herein or any authorized extension thereof, or b. If Consultant fails to perform the services called for by this Agreement or so fails to make progress as to endanger performance of this Agreement in accordance with its terms, and in either of these circumstances does not correct such failure withing a period of ten (10) days (or such longer period as City may authorize in writing) after receipt of notice from City specifying such failure.

6.2.2 In the event City temiinates this Agreement in whole or in part as provided above in Subsection 6.2.1, City may procure, upon such teims and in such manner as it may deem appropriate, services similar to those terminated.

6.2.3 If this Agreement is teiminated as provided above in Subsection 6.2.1, City may require Consultant to provide all finished or unfinished documents, data, studies, drawings, maps, photographs, reports, films, charts, sketches, computations, surveys, models, or other similar documentation prepared by Consultant. Upon such termination, Consultant shall be paid an amount equal to the value of the work performed. In ascertaining the value of the work performed up to the date of termination, consideration shall be given to both completed work and work in progress, to complete and incomplete drawings, and to other documents whether delivered to City or in possession of Consultant, and to authorized reimbursement expenses.

6.2.4 If, after notice of teimination of the Agreement under the provisions of Subsection 6.2.1 above, it is determined, for any reason, that Consultant was not in default, or that the default was excusable, then the rights and obligations of the Parties shall be the same as if the notice of termination had been issued pursuant to Subsection 6.1. above.

6.3 Non-Assignability. Consultant shall not assign or transfer any interest in this Agreement without the express prior written consent of City.

6.4 Non-Discrimination.

6.4.1 Consultant shall not discriminate against any employee, subcontractor, or applicant for employment because of to race, creed, gender, gender identity (including gender expression), color, religion, ancestry, sexual orientation, national origin, disability, age, marital status, family/parental status, or veteran/military status, in the performance of its services and duties pursuant to tis Agreement and will comply with all applicable laws, ordinances and codes of the Federal, State, and County and the City govemments. Consultant will take affirmative action to ensure that subcontractors and applicants are 5H6863.1-L235.0
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employed, and that employees are treated during employment without regard to their race, color, religion, ancestry, sex, national origin, disability, or age.

Consultant will take affirmative action to ensure that all employment practices, including those of any subcontractors retained by Consultant to perfoim services under tis Agreement, are free from such discrimination. Such employment practices include, but are limited to: hiring, upgrading, demotion, transfer, recruitment, recruitment adveitising, layoff, termination, rates of pay or other forms of compensation, and selection for training, including apprenticeship.

6.4.2 The provisions of Subsection 6.4.2 above shall be included in all solicitations or advertisements placed by or on behalf of Consultant for persoru'iel to perform any services under this Agreement. City shall have access to all documents, data, and records of Consultant and its subcontractors for purposes of detemiining compliance with the equal employment oppoitunity and non- discrimination provisions of tis Section, and all applicable provisions of Executive Order No. 11246 (relating to federal restiictions against discriminatoiy practices) is available for review and on file with the City Clerk's Office.

6.5 Insurance. Consultant shall submit to City, certificates indicating compliance with the following minimum insurance requirements no less than one (l) day prior to beginning of perfornnance under this Agreement:

6.5.1 Workers Compensation Insurance as required by law. Consultant shall require all subcontractors similarly to provide such workers' compensation insurance for their respective employees.

6.5.2 Comprehensive general and automobile liability insurance protecting Consultant in amounts not less than $1,000,000 for personal injury to any one person, $1,000,000 for injuries arising out of one occurrence, and $500,000 for property damages or a combined single limit of $1,000,000, with an aggregate of $2,000,000. Each such policy of insurance shall:
a. Be issued by a financially responsible insurance company or companies admitted and authorized to do business in the State of California or wich is approved in writing by City.
b. Name and list as additional insured the City, its officers and employees. c. Specify its acts as primary insurance.
d. Contain a clause substantially in the following words: "It is hereby understood and agreed that this policy shall not be canceled except upon 5116863.1-L235.0
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thirty (30) days prior written notice to City of such cancellation or material change."
e. Cover the operations of Consultant pursuant to the terms of this Agreement.

6.8 Independent Contractor. This Agreement is by and between City and Consultant and is not intended, nor shall it be construed, to create the relationsip of agency, servant, employee, partnership, joint venture, or association, as between City and Consultant.

6.8.1 Consultant shall be an independent contractor and shall have no power to incur any debt or obligation for or on behalf of City. Neither City nor any of its officers or employees shall have any control over the conduct of Consultant, or any of Consultant's employees, except as herein set forth, and Consultant expressly warrants not to, at any time or in any manner, represent that it, or any of its agents, servants or employees are in any manner employees of City, it being distinctly understood that Consultant is and shall at all times remain to City a wholly independent contractor and Consultant's obligations to City are solely such as are prescribed by this Agreement.

6.8.2 Indemnification of CalPERS Determination - In the event that Consultant or any employee, agent, or subcontractor of Consultant providing services under tis Agreement claims or is determined by a couit of competent jurisdiction or CalPERS to be eligible for enrollment in CalPERS as an employee of City, Consultant shall indemnify, defend, and hold harmless City for the payment of any employee and/or employer contributions for CalPERS benefits on behalf of Consultant or its employees, agents, or subcontractors, as well as, for the payment of any penalties and interest on such contributions wich would otherwise be the responsibility of City.

6.8.3 Business License Required. According to Title 2.08.40 of the South Gate 5116863.1-L235.0
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South Gate City CouncilMay 14, 2024

South Gate City Council
May 14, 2024